Dairy Farmers Face Organic Milk Surplus as Sales of Milk Substitutes Rise

The rise in popularity of organic milk led producers to expand, but sales slowed as more and more consumers view cows’ milk as less healthy than options like almond and soy milk.

Fortune
Organic Milk Carton

After responding to increased demand from consumers, dairy farmers have now found themselves with a surplus of organic milk. Shoppers have been opting for plant-based alternatives like almond milk more often than organic cow’s milk, leaving the industry with more of the very perishable organic product than retailers can sell.

Though the total volume of milk sold in United States retail between 2010 and 2015 declined by 13 percent, organic milk sales increased by 22.5 percent, according to industry tracker Euromonitor.

The rise in popularity of organic milk—driven by health-conscious consumers and the popularity of trends like the paleo diet—led producers to expand. But sales slowed as more and more consumers view cows’ milk as less healthy than options like almond and coconut milk.

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