"Unfortunately, many consumers are not prepared to pay the cost of organic dairy products. We are doing this to balance supply and demand," says Max Wallenberg, press manager for Arla Sweden, to the dairy company's magazine Husdjur.
Arla has around 240 organic farms. For one year, the 29 farms will continue to receive payment for organic milk, after which they can deliver milk as conventional producers.
Twenty-three Arla cow farms - which receive higher payments for meeting stricter animal welfare and sustainability requirements - are also being closed.
When asked what Arla says to farmers who have invested money in organic farming, Wallenberg replies:
We fully understand that this affects farmers who have invested in organic farming for a long time, but we at Arla need to look at the whole picture for the entire cooperative.
Correction: In a previous version, an incorrect figure was given for the number of Arla cow farms.
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