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Horizon Organic Will Pay Organic Farmers a Premium
Company Leads Industry in Supporting Its Producers
BOULDER, Colorado (April 19, 2004)—Horizon Organic, the leading US manufacturer of certified organic foods, announced today that it will voluntarily increase the price it pays for organic milk to certain regional dairy farmers. This increase will help offset extreme spikes in regional costs that they are currently experiencing. Premiums are generally expected to range from four to seven percent depending upon local market conditions.
The company is taking this action to protect its dairy farmer network, milk supply and the high-quality standards of Horizon Organic dairy products in the face of unprecedented dairy production cost increases in select regions of the country.
Horizon Organic emphasized that it is not passing this cost increase to retailers at this time. For this reason, Horizon Organic retail prices should not increase even though conventional milk prices are expected to rise.
“Horizon Organic is taking a positive, proactive step to ensure our organic dairy producers earn a fair return for their organic milk production. We simply cannot be a successful brand without our organic dairy farmers being successful,” said Chuck Marcy, president, Horizon Organic. “It is both our obligation and our opportunity to do everything we can to help our dairy farmers through this difficult economic period. And, at the same time, our loyal consumers can count on having an abundant supply of their favorite Horizon Organic dairy products at an affordable price.”
“We’ve always offered very attractive contracts to our dairy farmers to help them maintain organic integrity and sustainability. However, in some parts of the country these contracts simply cannot compensate for the excessive and unpredictable cost spikes many of our organic dairy farmers are currently experiencing,” said Jule Taylor, director of Milk Procurement for Horizon Organic. “This incremental payment is designed to fluctuate with rising and falling regional economic conditions that dairy farmers face across the U.S. The Horizon Organic Milk Procurement team will continue to monitor, analyze and evaluate data to determine changes to this payment as conditions warrant.”
The incremental payment will be applied to Horizon Organic’s contracts with its dairy farmers beginning May 1, starting in the hardest hit area, the Northeast. By June, the payment will be in place in other affected regions based on local market conditions.
“We are extremely pleased to be able to do this for our farmers who have always met and exceeded our expectations to deliver high quality organic milk,” said Marcy. “Now it’s our turn to exceed their expectations. We are taking this proactive measure with full support and encouragement of Dean Foods, which is evidence of their continued commitment to grow the market for organic foods and organic producers.”
About Horizon Organic
Horizon Organic produces and markets the leading brand of certified organic milk and a full line of refrigerated, certified organic dairy products. The company also markets certified organic eggs and juices. Horizon Organic products can be found in conventional supermarkets and natural food stores across the U.S. and in the U.K. Horizon Organic is a wholly owned subsidiary of Dean Foods Company.
Source:
Horizon Organic
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