Farm News:Farm Events:Date: 3/14/10-3/28/10 Date: 3/19/10-3/20/10 Date: 3/21/10 Date: 3/24/10-3/26/10    
|
Farm News: Organic Valley Reverses Growth TrendcommentsPosted: 01.18.2010 2009 will be remembered by Organic Valley’s farmer-owners for many different reasons. It was the deepest and longest recession in more than 50 years - but it also demonstrated the strength and resilience of the cooperative business. Sales for the nation’s largest organic farmer-owned cooperative were $520 million in 2009, down l.3 percent from 2008. Though Organic Valley remained profitable, it was the first time the cooperative, which formed in 1988, has experienced lower year-over-year sales.
George Siemon, chief executive officer and founding farmer at Organic Valley said despite consumer confidence staying strong for organics - they were still forced to curtail production because of the economic downturn. Beginning in July, for example, Organic Valley farmer-owners reduced their milk output by 7 percent. That allowed the cooperative to maintain a stable pay price.
Organic Valley’s parent, CROPP Cooperative, began managing about 270 organic milk contracts currently handled for Stonyfield by HP Hood, a dairy processor headquartered in Lynnfield, Mass. Hood, decided to exit the organic milk business and asked CROPP to take over their farmer contracts - providing their farmers the option of joining the cooperative.
According to the U.S. Census Bureau, retail sales fell 8 percent through the first 11 months of 2009 versus 2008. But a variety of recent reports suggest that consumers continue to regard organic goods as essential. Market research firm Mintel, for example, said recent survey data showed that nearly 40 percent of consumers claimed they hadn’t changed organic-product purchasing habits because of the recession and only 3 percent had stopped buying organic products altogether.
|
 |
Write a comment...
Your comment has been submitted for approval.
Please wait upto 24 hours for the comment to appear.