Dive Brief:
- Organic Valley, the world's largest organic farmer cooperative, reported 2013 sales of $929.5 million, compared with $856.9 million the previous year.
- The cooperative accounts for about 50% of the organic milk sales in the United States and is the top-selling organic milk in China.
- Organic Valley saw a 30% increase in butter, cheese, and produce sales.
Dive Insight:
“Organic dairy has been the growth engine, and milk has been the lead horse,” said sales vice president Eric Newman. Organic milk consumption has been growing and now accounts for 7.5% of all milk sales, even while overall milk sales are declining as dairy-free alternatives, like almond, coconut, and soy milk grow increasingly popular. But while people may be eschewing dairy milk, they are coming back to dairy butter, which has been put back on the "good foods" list as a result of recognition that high-quality fats enhance health.
The cooperative is planning to build up beyond the success of its dairy products. It built a refrigerated warehouse near Hillsboro to serve 150 farmers, and the company's CEO George Siemon said it is also planning to offer more organic grass-fed beef. The success of organic products here indicates that even though non-GMO has taken some of the spotlight off organic in terms of attracting consumer attention, the category can still do very well.