France produces 4.5% less organic milk

Its share of total production of cow’s milk remained more or less unchanged at 5.4%. “The main task of the whole organic dairy sector in 2024 will be to turn around the persistent decline of the consumption,” statistical service Insee comments.

The federation of dairy farmers, FNPL, shares the worries. It reports that, last year, 5% of dairy farmers stopped organic milk production and either returned to the production of conventional milk or left the dairy sector altogether. For the first time, the number of those that stopped exceeded new entrants to the organic dairy sector.

In some regions, the figures are even more catastrophic, the organisation adds. Insee warns that the number of leavers could be even higher in 2024 since a large number of farmers will reach the end of their 5-year conversion contract.

Apart from that exit of farmers, producers who remain in the organic dairy business are often confronted with a decrease of yields because of the unfavourable weather conditions or a simple lack of motivation to produce more, the institute says.

Consumers main cause

The main cause is that consumers buy a lot less organic food, including dairy, because of the higher prices compared to conventional food, the crisis around the cost of living or other reasons.

Although the price difference is a lot less than a few years ago, last year, the sales of bio dairy products in the main sales channels like supermarkets were down by 10-18%, depending on the specific product, compared to 2022. In specialist shops, like the many chains of organic or natural food shops in France, sales were down less while farmers who sell directly to the consumer saw their turnover increase, be it slightly higher.

Increased support

In response to the recent farmers protests, the French government increased the support to organic agriculture by another €50 million to a total of €90 million. However, the producer organisation fears that dairy farmers will hardly see a penny from those funds. To be able to apply, farmers need to have lost at least 20% of turnover in 2023 compared to the previous year.

“Not many dairy farmers meet that condition. We calculate that our sector will receive no more than €8 million. We therefore ask firmly to lower the threshold. It shouldn’t be the case that, because of regularly conditions, only minor improvements can be made. The minister of agriculture should do all that is possible to help those farmers who need his support most. The economic institute for the dairy institute CNIEL has calculated that at least €20 million is needed to support the production of organic milk in our country. Let’s see that amount coming our way, be it only as a first step,” it says.