While milk prices in general are being driven down organic milk seems to be bucking this trend. Kantar consumer research data shows that back in June 2010, organic milk was selling at an average price of 81p per litre, 20% higher than the average price for pasteurised milk as a whole which stood at 67p per litre. In the four week period ending 3 October 2010, organic milk had increased to an average price of 81.6p per litre, 33.7% higher than the average price for pasteurised milk as a whole which had fallen in this period to an average of 61p per litre.
When supermarket promotional activity is taken into account, standard milk is now selling as low as 44ppl (multi-buy two for £1.00) for an own-label 4 pint poly-bottle. Organic milk is currently priced at £1.73 (76ppl) for the same.
Kantar data shows for the 52 weeks ending 3 Oct 2010 that volume sales of organic milk fell by 4.1m litres (2.5%) compared to the 52 weeks ending 4 October 2009.
For more information on consumer trends in the liquid milk market
For more stories about dairy markets view our Dairy Market Update