In 2023, the production of organic milk in France took a hit, with a decline in production compared to the previous year. According to statistics, organic milk production reached 1.23 billion litres, which was 4.5% less than in 2022. This decline has raised concerns within the organic dairy sector, with the need to address the consumption patterns surrounding organic dairy products. The Federation of Dairy Farmers (FNPL) reported that 5% of dairy farmers stopped producing organic milk last year, with some reverting to conventional milk production or leaving the dairy sector entirely.
The challenges faced by organic dairy farmers in France are multi-faceted. Factors such as unfavourable weather conditions, declining yields, and a lack of motivation among farmers contribute to the overall decline in organic milk production. Additionally, the issue of consumer demand plays a significant role in shaping the market for organic dairy products. Consumers are opting for less organic food, including dairy products, due to higher prices, economic constraints, and various other reasons.
### Consumers main cause
The disparity in prices between organic and conventional food products remains a key deterrent for consumers when choosing organic options. While the price gap has narrowed in recent years, sales of organic dairy products in supermarkets saw a decline of 10-18% in 2023 compared to the previous year. In contrast, sales in specialty organic food stores experienced a lesser decline, and direct sales from farmers to consumers even saw a slight increase in turnover.
### Increased support
In response to mounting pressure from farmers’ protests, the French government has pledged an additional €50 million in support for organic agriculture, bringing the total allocation to €90 million. However, concerns linger within the producer organization regarding the actual benefit dairy farmers will receive from these funds. To be eligible for support, farmers must have experienced a minimum 20% reduction in turnover in 2023 compared to the previous year, a condition that may exclude many dairy farmers from accessing the funds.
The call for lower thresholds and increased support for organic dairy farmers in France is gaining momentum. Industry stakeholders, including the Federation of Dairy Farmers, are urging the government to reconsider the criteria for accessing financial assistance, highlighting the critical need for additional support to sustain organic milk production in the country. The economic institute for the dairy sector, CNIEL, estimates that a minimum of €20 million is required to adequately support organic milk production. With only a fraction of that amount currently allocated, the push for increased funding remains a priority for the sector.
In conclusion, the challenges facing organic milk production in France are multifaceted, requiring a collaborative effort from stakeholders to ensure the sustainability of the organic dairy sector. Addressing consumer demand, improving market access, and providing adequate support to farmers are essential steps in revitalizing the organic dairy industry. As the sector navigates these challenges, a concerted effort towards promoting organic dairy products and enhancing consumer awareness will be key to driving growth and securing the future of organic milk production in France.
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