As demand for organic milk in Sweden has fallen by 60 per cent, Arla is now terminating contracts. This affects 29 organic farms and 27 dairy farms with higher animal welfare standards. The notice period is one year. After that, the organic dairy farms may, if they wish, supply their milk to the dairy co-operative as a conventional product.
Max Wallenberg, press spokesperson for Arla Sweden, explains that Arla has not used the milk from these farms for organic production for a long time. It has been processed together with conventional raw materials.
Wallenberg told the trade magazine that demand for organic products has been falling sharply for some time and that fewer and fewer consumers are willing to bear the additional costs associated with organic production.