DECORAH (AP) -- Organic milk producers aren't seeing record prices like their conventional counterparts, but they say their industry isn't losing farmers.
Dan and Bonnie Beard, organic milk producers from Decorah, said it's only the second time that conventional milk prices have surpassed organic prices. They're getting about 6 percent less for their organically certified milk than other farmers are getting for conventional milk.
But the Decorah couple do not begrudge competitors a chance to make money.
"Those folks need a higher price," said Dan Beard. "Conventional milk prices have been down for a long time."
According to the U.S. Department of Agriculture, the price for Class III milk, which most Iowa dairy farms produce, hit an average of $19.66 for 100 pounds in April. One hundred pounds of milk is equivalent to 12 gallons.
The new record is $5.17 higher than the price farmers received in March. Compared with a year ago, the new record is $10.75 higher.
Dairy producers such as the Beards, who are members of the Organic Valley Family of Farms cooperative, were paid 60 percent more than conventional farmers last year, the co-op said.
Even though some nonorganic dairy processors are offering $2 a hundredweight more than Organic Valley, organic dairy farmers, like the Beards, have remained loyal, said Greg Welsh, Organic Valley Farms' marketing coordinator.
"It hasn't hurt our milk procurement at all," Welsh said. "We have expectations of growing memberships by 25 to 30 percent a year, and it doesn't look like we are going to fall anywhere short of that this year … Record numbers of farmers are making the transition to organic."
Milk prices have soared because of a drop in the number of milk cows -- from 9.1 million in January 2003 to about 8.9 million a year later -- and because dairy farmers are paying more for feed because of higher corn and soybean prices, experts say.
Posted in Regional on Monday, May 17, 2004 12:00 am
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