Welcome to YEO ORGANICS – Organic Dairy Foods.
Organic dairy foods are changing the food retail landscape. There are more new organic dairy products and other store foods being marketed than ever, especially in the United States. A new generation of health and wellness consciousness is changing the marketplace.
Rarely has the market spoken so clearly, but people want organic foods and demand organic products. The acquisition and sales of organics is becoming a war of suppliers trying to fulfill public demands, without assurance that there is enough products available. Organic foods are also noted to be high in antioxidants.
Such problems are facing an industry that is just beginning to grow large enough to compete with the big food corporations. Eventually organic product companies will have to address their overall growth, but today it is mainly the organic dairy industry that is facing marketing and supply problems head on.
In contrast to these problems, the organic milk and dairy industries are experiencing an amazing period of growth, due to the high antioxidants in them. Organic milks and dairy products are on the rise, with nothing to stop them. The dairy industries are in stiff competition for their piece of the organic product demographic, because these are loyal and health conscious customers that are growing in number internationally.
Once a niche industry, organic milk and dairy products have risen on the food chain greatly from a decade ago. The consumer purchases of organic foods exceeded the $30 billion mark during 2012. Today they account for more than 4 percent of $760 billion yearly sales in America.
The average growth rate of organic food sales is 10 percent per year since 2010. This is major numbers, when compared to the average growth rate of 3 percent for all food profits internationally, from all traditional food companies.
"Organic sales in the United States reached more than $39 billion, an increase of 11% over the previous year, but tight supplies present challenges. The industry is facing some major challenges, including struggles to source enough organic ingredients. Much of the shortage is in organic milk and eggs, due to low inventories of organic corn and soybeans that feed cattle and poultry,” this according to ABC News.
Organic Dairy Foods
Organic milk is sales trends are at the top levels of all the organically grown products available today. This is because milk makes up over half of the world sales by food companies. To overtake even a small percentage of this market is a large amount of expansion for any company. Organic dairy farmers have usually tried to stay small, providing locally their organic foods and products, thus their marketplace hadn't really changed in the last decade. Now everything is based on a global marketplace perspective and the organic companies are having to embrace their youth culture, and consumers in the information age.
In the next decade, organic milk production is expected to double in the United States, with states like Kentucky, Tennessee and Wisconsin already making shifts to meet their supplier demands. It seems to be a welcome change for the new organic farms, but something less fortunate for the traditional farming world. The traditional milk companies claim significant financial losses due to the advent of organic milk competition. Even the companies that buy from organic dairy farms to market their own generic milk products are saying the organic suppliers are not able to meet their needs. Public demand for organic products is simply too high and it shows no sign of decreasing again.
Having been able to meet a growing interest in organic and local foods is one thing, but Americans expect things to be automated and sophisticated. Consumers will not give their loyalties to a product line without knowing they can get the products, when they want them. Timely distribution is a huge factor, if an organic product line expects to stay in competition.
Milk companies have tried to keep the competition at a distance, but now it is time to consider the best options for the whole herd. Just as milk did by using generic milk advertising in the last century, the same maybe an option to consider at some point with organic milk and dairy products. It would seem that all in the organic growth industries could benefit from new alliances, yet that remains to be seem. At this time, the willingness to collaborate seems less likely to be put on the table. Right now, it is all about seizing the organic milk sales and closing in the gaps for the sake of the niche market.
Organic dairy foods are not going to be replaced by anything else, but they maybe forced to upgrade their business strategies. Without the high quality service of traditional industries, the new age of organic foods will have to take things one step at a time. Either that or put their money where their mouths are, but one can only speculate on such matters of food business and retailing on local, national or international levels. The climate is still new, so changes are going to happen, no matter what the markets will or won't do in the immediate sense.
As timeless as milk within modern society, it is sure that someone will profit off these changing landscapes for food supply and demand. If consumers dictate these changing times, it is sure to influence who those in the marketplace end up being by their sales choices. Soon creating a generational demographic that meets the needs of modern suppliers will be necessary, because generation next is more health conscious and diet savvy than any generation prior. The grandchildren of the hippie generation know what is up in the corporate world, especially when it comes to nutrition and food production. The wise companies will not try to play games with them and how organic products are marketed today.
Organic dairy foods are changing the retail landscape, but also helping to address some greater business concerns for the organic industries, as a whole. As the global marketplace dictates such wide sweeping changes, it is possible that the structure of the organic industry will have to modernize. This is actually a good thing for the consumers of organic products, but maybe a burden that is costly for the companies themselves.