Global demand for organic British dairy sees huge growth potential

OMSCo continues to see increased growth from existing and new customers around the world
OMSCo continues to see increased growth from existing and new customers around the world

The global demand for organic dairy has seen growth in the UK's largest organic dairy co-operative.

The demand will give OMSCo (Organic Milk Supplies Cooperative) market opportunities following the Brexit result.

OMSCo has followed a strategy to develop global organic markets and a specialist export product portfolio.

Exports currently represent 20% of sales, and this is forecast to increase to almost 30% in this financial year.

"There is increasing export demand for OMSCO’s organic specialist products, the growth of which is in contrast to sluggish performance in the UK organic dairy market in recent years," explains Richard Hampton, managing director of OMSCo.

"I am fully confident our business will continue to grow and succeed in the global arena.

Richard Hampton, managing director of OMSCo
Richard Hampton, managing director of OMSCo

"Obviously the Brexit vote has brought a certain level of uncertainty, however to date, feedback from OMSCO’s export partners has been incredibly positive," he says.

Interest in organic produce has gathered momentum and mainstream attention.

The Soil Association’s 2016 Organic Market Report reveals the market continued to experience steady growth of 4.9% in 2015.

Shoppers spent an extra £1.73 million a week on organic products in 2015, and the steady rise of the organic market experienced in the UK mirrors a global trend of growth and widening interest in the organic sector.

This is the third year of consecutive growth for the UK organic sector, now worth £1.95 billion.

'High quality British produce'

Mr Hampton said British organic dairy products are recognised abroad for their high quality.

OMSCo has focused on added value and specialist product areas, two areas where the co-operative have leadership.

"I am confident we will continue to see increased demand from EU and non-EU markets for our added value, specialist organic dairy products.

"We will continue to diversify our portfolio as this is not only important for price stability for our members, but allows us to balance our core customer demand efficiently and reliably, in a market that is known for its volatility," he adds.

"As a result of this growing demand, OMSCo continues to welcome new members to join the cooperative, who share its vision and values," Richard explains.

"We have a successful range of USDA-certified organic products and our Kingdom Cheddar Brand in the US, and last year secured Chinese organic certification for a range of product areas.

"We do not expect the UK market to require additional organic milk supplies in the next few years, but in the years ahead we have a requirement for a limited amount of additional organic milk supply to fulfil new export demand that we have already secured," he concludes.