Retailers and processors should pay 3p/litre more for organic milk now and not wait until shortages force prices up, OMSCo has warned.
The organic co-op said prices would rise of their own accord in the next six months, but by the time they did there would be severe supply problems.
Head of sales Richard Hampton said 75 million extra litres would be needed next year to meet 40% growth in demand. However, farmers would not increase output until market signals made it worth their while, he said.
“A large number of suppliers who are farming conventionally on organic land could be back in organic production within six months. They could produce an extra 50m litres a year.”