Tridge summary
France's ambitions to convert 15% of its useful agricultural area into organic farmland by 2022 have fallen short, leading to an oversupply in the organic sector and a significant challenge for various sectors, including fruit and vegetable consumption and especially the dairy industry. The surge in organic milk production has outpaced demand, resulting in a drop in prices and an oversupply. Dairy companies like Lactalis and Sodiaal have had to lower prices and downgrade milk to conventional standards to offset the financial strain. The situation has led to calls to halt further conversions to organic farming and to limit production. Despite the difficulties, there are hopes for a recovery, with efforts being made to boost demand and stimulate growth in the organic sector. However, the ongoing crisis mirrors that of the US organic milk sector, which has also struggled with oversupply and falling prices since 2017.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
When it has become clear that the objective of converting 15% of the UAA (useful agricultural area) into AB for 2022 will not be met, the organic El Dorado is experiencing serious difficulties in several sectors In a press release from 'Interfel (Interprofession of the fresh fruit and vegetable sector) from January 2021, its president Laurent Grandin warned against the risk "of having an overabundant supply due to conversions which are coming to an end in relation to demand". He then observed a drop of 1% in the third quarter of 2020 for the consumption of organic fruits and vegetables. Last fall, producers had already suffered from a real drop in prices, mainly for organic tomatoes and apples, with demand that was already no longer there. But it is above all the dairy sector that is beginning to suffer seriously from the consequences of the onset of overproduction. "The French no longer drink enough organic milk to absorb national production," AFP noted in a dispatch dated ...
Source: Agriculture-environment
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