Farmers are struggling to continue producing a quality, safe and nutritious product with the current costs of doing business. Input costs have been at an unprecedented high with no foreseeable changes and farmers are struggling to keep up with these high costs at their current pay price for the specialty products they produce. Lia Sieler, Executive Director of Western Organic Dairy Producers Alliance, said: “We welcome the monetary resources allocated to dairy farmers through ODMAP with much anticipation. We look forward to working with USDA to cover more of the actual costs organic dairies are facing.” The alternative is we lose family farmers. USDA is right to step in and offer support, and this is a good first step. ODMAP provides a one-time cost-share payment based on marketing costs on pounds of organic milk marketed in the 2022 calendar year.īritt Lundgren, Senior Director of Sustainability and Government Affairs at Stonyfield, said: “The costs facing organic dairy today are uncommon and putting serious strain on operations. The Farm Service Agency (FSA) is providing financial assistance for a producer’s projected marketing costs in 2023 based on their 2022 costs. This program will keep our small organic dairies in operation as they continue to weather a combination of challenges outside of their control.” “Without assistance, many organic dairies, particularly small organic dairies, will cease production, which not only impacts the domestic supply and consumption of organic milk but also the well-being of many rural communities across the country. “Organic dairy producers have faced significant and unique increases in their marketing costs, compounded by increases in feed and transportation costs and the limited availability of organic grain and forage commodities,” said FSA Administrator Zach Ducheneaux. Specifically, under the ODMAP, USDA’s Farm Service Agency (FSA) is making $104 million available to organic dairy operations to assist with projected marketing costs in 2023, calculated using their marketing costs in 2022. According to the agency, the program was established to help mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry. and worse, you lose trust.The USDA recently announced that it will now offer assistance to dairy producers within the organic sector with the implementation of the Organic Dairy Marketing Assistance Program (ODMAP). You force attention to the fact that your cows are only in pastures as long as regulatory mandates require. In this case, Horizon, you just caused consumers to think the trusty organic milk they have been buying for years, is not as good as they thought it was. What happens in consumer psychology, when the very brand you trust introduces another product, at a higher price point that usurps the positioning you had in your mind?.
But not even remotely as fast as Horizon seems to have done so to themselves. Solid positioning.Ī competitor could erode that position, perhaps, maybe a little. Horizon Organic Milk is known and trusted for high quality organic milk from pasture raised cows (pasture raised = grass fed).
with the launch of a new SKU that competes alongside your organic milk?Īs a long-time Horizon Organic’s Milk customer and someone that really understands consumer perceptions, I was taken aback on what I saw as a huge mistake by Horizon.
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