(Updated May 2008)

Average farmgate price for organic livestock



News

Organic price information
The organic milk price in February was 35p/litre; Dairy Farmers of Britain and Milk Link 33-34p/litre. (as quoted by Farmers Weekly) For more price information from Dairy Farmers of Britain, click here.

Costs of production
A new factsheet on benchmarking for beef and sheep and dairy producers is now available from OCW. It shows organic dairy producers gaining higher net margins per litre than conventional farmers during 2005/6 and 2006/7 despite the organic price per litre only being 22.8p in 2006/7. Download factsheet

Organic production costs
Welsh organic farmers are getting similar returns per kg of meat and litre of milk to conventional farmers, despite lower yields, according to the latest benchmarking data. http://www.organic.aber.ac.uk/news/060508a.shtml

Producers push for egg price rise
Rising costs in egg and broiler production have prompted calls for further retail price increases and a warning from one feed firm of a possible collapse in the organic egg sector. British Free Range Egg Producers Association chairman Tom Vesey warned that if retailers do not pass increased production costs to their customers, the trickle of organic farmers who have already converted back to non-organic production will become a full flow. (Farmers Weekly 28 March p.14)

Organic milk increase from DFB
Dairy Farmers of Britain is putting another 0.5ppl on its organic milk contract price, back-dated to 1 Feb. "The increase, which is applied to the flat rate component of our contract, raises our benchmark organic milk price for over a one million litre/year herd averaging 4.0 per cent fat and 3.3 per cent protein to over 35.1ppl before seasonality," said membership director Matt Sheehan.

Tesco defends its £1.99 chickens
Lucy Neville-Rolfe, Tesco's executive director for corporate and legal affairs, defended its decision to sell whole chickens for under £2 at the NFU's annual conference in London. She said that the low price has not led to a relaxing of animal welfare standards and that Tesco, rather than the poultry industry, bore the cost of the price cut.
The Daily Telegraph Business (20 Feb, p.2)

Farmers' plea to save our bacon
Pig farmers across the country are in crisis because huge increases in the price of grain mean they are losing up to £20 for every animal they produce. Experts warn the industry faces catastrophe unless the price of pork and bacon rises, a move so far rejected by supermarkets.
On Thursday the 'Save Our Bacon' campaign will be launched at Borough Market in London, backed by celebrity chefs Gordon Ramsay, Rick Stein and Fergus Henderson.
The Observer (17 Feb, p.21)

MDC reports
There are fears that imports of organic dairy products will have to increase if organic milk supply is to continue to meet market demand. In order for domestic farmers to meet this demand, industry commentators suggest that organic producers need prices to rise by 2-3ppl. The MDC adds that new requirements for organic feed that now prohibit the use of any non-organic products are expected to further increase compound feed prices, which could potentially reach £400 per tonne during this year. Such a figure is double the price paid two years ago, which may require either increased cost for both manufacturers and consumers or higher export output, according to the report by the UK's Milk Development Council (MDC). In context, conversions in 2007 provided an extra 40 million litres of supply compared to a requirement of an extra 60-80 million litres. OMSCo also forecasts imports will be 20 million litres for the 07/08 milk year compared to 7 million for the 06/07 milk year. MDC website

Low prices threat to UK organic beef producers
Retailers must pay more for domestically produced organic beef because current prices are unfair and unsustainable, the Soil Association said in a report issued on Friday. Some key supermarkets are not paying enough to cover production costs and choosing to import organic beef even though there could easily be enough supply in Britain. The report called on retailers and processors to increase the prices they pay for UK-produced organic beef by at least 10 per cent next year and offer long-term supply contracts. Soil Association press release (4 Jan): 'Where's the beef? - report shows UK beef producers are getting short-changed'

Exeter Livestock market a success
Store cattle sales now seem to be becoming established in the organic farmer's diaries in the area and more dairy cattle are needed, as potential purchasers were not put off by the prices they achieved. Store lambs are also wanted at Exeter Market Auctioneers. Full report click here


» The Northern Organic Newsletter (December) contains information on markets and prices

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This programme is supported under the England Rural Development Programme by the Department for the Environment, Food and Rural Affairs and the European Agriculture Guidance and Guarantee Fund.