Organic Dairy News: September, 2026

By Ed Maltby, NODPA Executive Director

It’s official! The Northeast has had ‘limited rainfall in the past week, leading to degradations in drought’ (US Drought Monitor). This is a big difference from last year, with significant rain in many areas for improved grazing and forage production to take us into Fall. Not so good news is the price of diesel and the increasing costs of parts and equipment. Pay Price is holding steady, though some buyers are shifting to paying more for protein.

Retail fluid sales are level, and the average retail price has dropped a few cents. Demand for organic cows is high with prices averaging $3,000 and above. The hope is that government actions will not affect the strong calf market or, what is more likely the cull market, which continues to be strong sources of income for all dairy farmers. And the best news of all is that the NODPA Field Days are less than a month away!

Good news for producers: at last, certification cost share is available. Now is the time to apply for the Organic Certification Cost Share Program (OCCSP). FSA county offices are currently accepting and processing applications. The updated OCCSP application form was published on Monday, July 6, 2026.

Here are the answers to some cost share questions that producers have asked:

• FSA will pay on a first come basis until all the money is expended. Each year has a separate amount of money available.
• An operation can apply for both 2025 and 2026.r Applicants will need to fill out an individual application for each program year.
• For program year 2025, certified operations will be eligible if they were certified at any time during the 2025 program year.
• The application deadline for both 2025 and 2026 is December 31, 2026.

Good news for producers who signed up for Dairy Margin Coverage in 2026: although the All-Milk conventional price is expected to average a solid $19.80/cwt in the second half of the year, prices are projected to ease from spring highs, while feed costs rise from $10.22 to about $10.43/cwt by year-end, narrowing margins. The July DMC margin is currently projected at $9.40/cwt, which would trigger a 10-cent payment at the $9.50 coverage level for the first time since March. Projected margins are $8.96 in August, $9.21 in September, and $9.45 in October before rising above $9.50 later in the year. The second half-year average DMC margin is now projected at about $9.48, bringing the full-year forecast down to $9.57/cwt.

The Northeast cull market will be severely affected by JBS’s announcement on August 10 that beef harvesting and processing operations at the former MOPAC plant in Souderton, PA will end that week. The facility, built in 1974 and expanded in 1993 by the former Moyer Packing Company, will be converted into a dedicated value-added operation through more than $30 million in investment over the next decade. Let’s hope that it is American beef that they are packaging, not imported beef, since PA is an import hub for many South American countries. Many cull cows from the Northeast ended up in this facility, either by direct purchase or through auctions. JBS said that livestock affected by the closure will be absorbed elsewhere in its U.S. network. The nearest facility for northeast producers with available capacity is in Plainwell, Michigan—about 700 miles from Albany, New York, compared with the roughly 200 miles to Souderton—raising concerns about transportation costs, whether JBS will continue buying the same volume from the region, how much producers will be paid, and what loss in weight animals will suffer with the extra transport time.

The Dairy Processing magazine reported in its July-August 2026 issue that fluid milk sales stayed steady in 2025. Private Label is still the number one seller of products, but with a 0.5% decrease in unit sales year over year. There is no breakdown between organic and conventional sales of Private Label product. In fourth place for dairy milk brands in the US was Horizon with 109,538,780 in unit sales, an increase of 7.3% on the previous year. In fifth place was Organic Valley brand with 56,289,388 in unit sales, an increase of 17.2% over previous year. In twentieth place was Maple Hill with 6,594,253 in unit sales, which is a massive 36.7% increase over the previous year. The data was provided by Chicago based, Circana. The article reports that John Coletta, chief executive officer, Clover Sonoma, Petaluma, California saying “After years of headlines about fluid milk’s decline, consumers are coming back to the cow with dairy consumption continuing to increase.” He said his consumers wanted value-added fluid milk, namely higher-protein, lactose-free and flavored options. He was surprised by the response to the launch of their Pasture Raised Organic A2/A2 4% Whole Milk which “exceeded our expectations.” The article also quotes Nicole Pavlica, senior brand marketing director, Horizon Family Brands, Broomfield, Colorado, who agreed that premiumization and segmentation are fueling product innovation. “Increased adoption of GLP-1s is continuing to impact consumer demand for nutrient-dense foods, including milk,” she said. “Few consumers know that a serving of milk provides 8 grams of protein. For this reason, we have amplified communication of protein on our refrigerated and shelf-stable milk products.”

Milk Buyers

Maple Hill shippers who are DFA members will have to find a new handler. DFA has announced that it would no longer support members that ship to Maple Hill after their anniversary date, or close to it. Producers are looking to join NFO. The action by DFA is not surprising and very predictable but there will, of course, be questions as to how much business NFO can handle. When asked for a reaction to DFA’s actions, Horizon Family Brands/Maple Hill replied, ‘Similar to Horizon Organic producers, Maple Hill Creamery producers have the flexibility and choice to work with a variety of milk handlers. We are committed to ensuring producers experience no interruption in their ability to market and sell their milk to Maple Hill Creamery.” When asked about producers’ options regarding the confusion over the future of Origin Milk, the company responded that, “Both Horizon Organic and Maple Hill Creamery are actively welcoming new producers. In addition, Maple Hill Creamery is currently offering incentives to farms who are considering transitioning to grass-fed. Interested farms are encouraged to reference the contact list provided to learn more about the latest programs offered by both brands.” The information they reference is in the Milk Buyers List on page XXXX, and on the home page of the NODPA website at www.nodpa.com.

Lactalis/Stonyfield comment that they are still seeing increased interest from conventional farms looking to transition to the Organic market and experiencing continued growth in New York’s North Country and Mohawk Valley, plus expansion into other parts of New England. The strong rumors persist that a large dairy in Maine is transitioning to organic. Jason Johnson from the farm services and procurement team has left the company but they have hired two Organic Valley alums: Michael Brown as manager, Farm Relationship for Maine, and Pam Riesgraf as manager, Farm Relationship and Procurement for the Midwest.

Byrne Dairy

Byrne dairy reports that they “continue to demonstrate strong performance in the organic market, supported by sustained customer demand and our ongoing focus on quality, reliability, and service.” They remain committed to strengthening their position in this market in order to support the needs of their customers and partners. The construction expansion project at their Cortlandville facility remains on schedule, and the project is currently slated for completion by the end of 2026. Once complete, they report that “the expansion will further enhance our operational capabilities and position us to better support future growth.”

Good Luck and congratulations to Leslie Ball who is entering into semi-retirement and welcome to her replacement as Director of Dairy Programs, Mike Winkler.

Origin Milk

Pete Hardin, with Milkweed, and producers shipping to Origin, report that from August 1st National Farmers Organization (NFO) terminated its marketing arrangement with Origin Milk for non-payment. Producers are looking to other handlers, including Lancaster Organic Farmers Coop based in Maryland. The reports are confirmed that some processors are not being paid by Origin. Individual producers’ reports vary with some larger operations being paid on time while others report that they are not being paid or payments are delayed. Some of those transitioning under contract with Origin are not receiving promised transitional bonuses. This uncertainty is very harmful especially for the smaller dairies that have increased their herds, paying top dollar for animals, in response to Origin’s higher Pay Price. It also underlines the difficulties of handling and balancing organic milk at any scale. Maple Hill managed to survive for many years with outside capital until its sale to Horizon Family Brands, but they went through periods where they cut back on producers and suspended contracts to handle the balancing of product.

Origin owner, Adrian Boto, did return my request to talk about the situation with Origin and he responded to questions and concerns raised by producers and the organic dairy community with a simple comment “I do not comment on rumors.” I offered the opportunity for him to comment on the current situation with Origin to give some context to the position Origin is in and its plans for the future, but he stuck with his original short comment. I left it open that we would welcome any comments in the future from the company. It’s important to note that any actions by one buyer has an immediate effect on their shippers but also a trickle-down, or in some cases an avalanche effect on the whole market, especially in the Northeast where size-appropriate processing is scarce, trucking small amounts of milk expensive, and operational costs higher than other parts of the country.

USDA

As USDA reorganization continues, the loss of staff who serve as the primary points of contact for farmers, especially those with long institutional knowledge, is affecting the implementation of all programs, including the design of conservation plans, and assistance with complex applications, making it even more difficult for new entry farmers.

We can confirm that the NOP staff currently in Washington DC will remain there, but future hires will probably work from one of the new hubs around the country. The budget for the NOP will probably be level funded for the next fiscal year despite the Senate Farm Bill draft proposing an increase, plus a step increase every year for the Farm Bill term.

Posted: to Industry News on Sun, Sep 6, 2026
Updated: Mon, Sep 7, 2026