Title

Organic Milk Supply declines in the United States. Can the problem be fixed?

Document Type

Oral Presentation

Location

Lynnwood

Start Date

17-5-2012

Abstract

Many farmers switched from conventional to organic dairy farming in recent ten years, but starting in 2011 some of them switched back to conventional production despite of increasing demand on organic milk. What issues do affect the supply and demand of this industry? Why do farmers turn back? Demand for organic milk products has outpaced supply. The base payments to farmers, which closely regulated by USDA, do not cover the total production cost of organic milk which recently increased due to many factors. In many cases organic production becomes less profitable than conventional milk production. Some changes are necessary to fix this situation. The purpose of this paper is to analyze the reasons of the previous years’ increase in shifting from conventional to organic farming systems in the U.S. , supply issues that currently affecting this industry, and look for possible solution of how to prevent declining of organic milk production. In order to gather the necessary information we would conduct our research through Internet, public libraries, and interviews. These may include recently published articles from newspapers and business magazines, professional journals, reports of government organizations and professional associations, reports of research companies, business websites, and questionnaires.

Poster Number

3

Faculty Mentor(s)

Kun Liao

Additional Mentoring Department

Finance and OSC

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May 17th, 12:00 PM

Organic Milk Supply declines in the United States. Can the problem be fixed?

Lynnwood

Many farmers switched from conventional to organic dairy farming in recent ten years, but starting in 2011 some of them switched back to conventional production despite of increasing demand on organic milk. What issues do affect the supply and demand of this industry? Why do farmers turn back? Demand for organic milk products has outpaced supply. The base payments to farmers, which closely regulated by USDA, do not cover the total production cost of organic milk which recently increased due to many factors. In many cases organic production becomes less profitable than conventional milk production. Some changes are necessary to fix this situation. The purpose of this paper is to analyze the reasons of the previous years’ increase in shifting from conventional to organic farming systems in the U.S. , supply issues that currently affecting this industry, and look for possible solution of how to prevent declining of organic milk production. In order to gather the necessary information we would conduct our research through Internet, public libraries, and interviews. These may include recently published articles from newspapers and business magazines, professional journals, reports of government organizations and professional associations, reports of research companies, business websites, and questionnaires.