ORGANIC milk sales have risen by more than a fifth in the past year, according to figures.
Organic cheese is also proving popular with sales also up by almost 20%, according to retail analysts TNS.
Health-conscious consumers are willing to pay around a third more for organic milk than the standard variety. At Tesco, a four-pint bottle of organic milk costs £1.46, compared with £1.11 for a standard four-pint bottle.
A study for the Scottish Executive suggests the sector could be worth about £108m to the country in 2007.
But despite the growing consumer demand for more ethical, healthier food, there is a shortage of organic farmers in Scotland, due to the low profit margins and high cost of converting farms to meet strict organic standards.
In a survey of 1000 adults, more than a quarter (27%) said giving their children organic food was very important and many were prepared to forego personal luxuries.
Research by the Soil Association shows parents of young children are among the biggest supporters of organic food with organic baby meals now accounting for more than £50m of the market.
Organic cows graze on pastures which have not been treated with artificial pesticides and fertilisers. They also eat a more "natural" diet of fresh grass and clover.
In comparison, non-organic dairy farmers are allowed to use more grain-based feed containing cereals, maize and protein supplements, which increase milk yields, but may adversely affect the nutritional composition of the milk.
A Food Standards Agency study found that organic milk has a higher content of vitamins and essential fatty acids, such as Omega 3, which some studies have linked to a reduced risk of heart disease.
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