The French market for organic dairy products is to show accelerated growth in the coming years as dairies raise production levels, according to a new report from market research group Organic Monitor.
The report, The French Market for Organic Dairy Productsfinds that French organic dairy revenues expanded by 35.7 per cent in 2001 and that high growth was reported last year due to consumer demand for organic foods being elevated by the BSE crisis.
Strong growth looks set to continue as more organic milk becomes available to French dairies that are increasing production volumes for the major retailers. Revenues are forecast to approach €400 million in 2004 making it the third largest market in the EU.
maintains that for a number of years market growth has been constrained due to organic milk shortages. Over a third of the organic milk used by French dairies was imported in 2000 and although the portion of imports is declining, domestic volumes are not projected to meet market requirements until 2003.
The report highlights the organic cheese market which is expected to show the highest growth. Accounting for over 20 per cent of revenues in 2001, the segment is the second largest in the French organic dairy sector. Up until now the market has been limited due to insufficient volumes. The expected growth in organic milk production levels will considerably boost cheese production and it is projected to expand almost four-fold over the forecast period.
Organic milk sales accounted for 3 per cent of French milk sales in 2001 with Lactalis dominating the branded segment.