After many years of shortages of Swedish organic raw materials, the situation has reversed. In general, there is a surplus in the market, concludes a report made by Agrovektor on behalf of the Swedish Board of Agriculture.
The status report draws a picture of the situation concerning Swedish Organic Raw Material before, now and in the future. A summary picture of the next half year is continuous surplus of raw materials – especially when it comes to cereals, meat and milk.
The report takes a view over the different branches during the last few years. In the case of milk, 3,000 new organic dairy cows were included in the system in the most recent recruitment period in 2017/2018. But the market has been declining in organic dairy since 2018. In 2019, the index was negative, a development that continued during the first half of 2020. As a result, the KRAV supplement to dairy farmers has fallen by about 40 percent during the year. The private dairies have stated that they like to see producers switch to conventional production.
The reports general advice to farmers who consider changing to organic production over the next 12 months, that there are currently no market arguments in favour of a change.
Find the report HERE