20 Aug 2015

Organic milk values remain high

10:16 am on 20 August 2015

Organic dairy products have been unaffected by the global fall in dairy prices.

Organic Jersey cow on a Rongotea farm.

Jersey cows on a Rongotea farm. Photo: RNZ / Alexander Robertson

The retail price for organic whole milk powder is $NZ14,600 a metric tonne.

The improvement in this week's Global Dairy Trade auction lifted the average price for whole milk powder to $US1856 a tonne - or $NZ2,812.

In Parliament yesterday, Green Party MP Steffan Browning asked Primary Industries Minister Nathan Guy whether he would reinstate the organics advisory programme, "given the value of organic whole milk powder is more than five times that of conventionally produced whole milk powder, and his vision for premium value-added products?"

Mr Guy replied, "No, I am not intending to reinstate the organics advisory programme.

"My belief is that farmers are innovative, they read market signals well and if organic whole milk powder prices are five times the value of conventional milk powder prices, then many may choose to convert to organic production themselves.

"The role of government is not to advise farmers on what they should be growing," he said.

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