Undersupply Stunting Growth in Organic Dairy Sector.
Low interest from dairy farmers to convert to organic production methods is stunting growth in the Southern Europe organic dairy products market. Although these three countries have 1.4 million hectares of organic farmland, representing 39 percent of total EU organic farmland, there is a dearth of organic milk production in the region.
Market revenues expanded by 37 percent, however higher growth would have occurred if there were greater volumes of organic milk available to dairies for processing. The lack of domestic milk production leads to all three country markets to be highly import dependent with significant quantities of all products, including raw organic milk, being imported.
Italy has the largest market for organic dairy products in the region and it is one of the largest in Europe. The market has been reporting high growth since 2000 due to Italian dairies raising production levels to meet growing interest from the major retailers.
The highest growth is envisaged in Greece and Spain. The Greek market is projected to show compound annual growth of 52 percent over the forecast period. The exceptionally high growth is due to it starting from a small base. The Greek market accounted for a mere 1.4 percent of Southern European organic dairy revenues in 2001.
This report gives competitive and market information for the organic milk, cheese, yoghurt and fresh cream market in these countries: Italy, Spain and Greece.
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