Organic Dairy

Revised March 2026.

Overview

In 2025, 2.72 billion pounds of organic milk products were sold. That amount represented 7 percent of all milk products sold that year. In the past, organic milk cost has been considerably more than conventional milk. In 2023, the average retail price of organic whole milk was $4.44 per half gallon compared to $2.07 per half gallon of conventional milk (USDA, AMS).

Production

More than 2,500 farms in the United States produced organic milk in 2021. The largest number of farms were located in New York (516), Wisconsin (415), followed by Pennsylvania (357). (USDA, AMS)

During 2021, 334,315 dairy cows were certified organic. The states with the highest number of certified organic dairy cows were (in order): California (50,435), Texas (48,340) and New York (32,203). (USDA, NASS)

Organic milk production in 2021 was 5.19 billion pounds. Texas produced 1.02 billion pounds, or nearly 20 percent, of the organic milk. Other states producing large quantities of organic milk were (in order): California, New York, Idaho, Wisconsin, and Oregon. (USDA, NASS)

Marketing Channels

Some dairy operations bottle and sell the milk and/or other dairy products locally. For national distribution, products tend to move from the farm to a cooperative processor/bottler and then to a private distributor before reaching retail outlets.

Management

The cost of production for organic dairies is greater than the cost for standard dairies. Organic feed costs more than standard feed, and organic production uses more labor and capital. When organic milk brings premium prices, profits are higher for organic dairies. Herd size matters to organic costs. Estimated total costs drop sharply as herd sizes increase.

USDA standards for organic food were implemented in 2002. Organic dairy is raised in a production system that promotes and enhances biodiversity and biological cycles and uses only organic feedstuffs and health protocol. It is based on minimal use of off-farm inputs. Dairy cattle producing organic milk are not given antibiotics and growth hormone stimulants. In general, organic foods are minimally processed with artificial ingredients or preservatives.

Marketing

Dairy Market Statistics 2023 Annual Summary, Ag Marketing Service (AMS), USDA.
Northeast Organic Dairy Producers Alliance - A resource for organic dairy farmers, organic milk producers and consumers interested in organic dairy farming and products. Includes free classifieds for farmers.
Organic Milk Sales Volume, ERS, USDA.
Organic Retail Milk Prices, AMS, USDA.