Success of Organic Dairy Brings Price and Availability Crunch

Organic milk sales are robust, but the cost of organic feed and tight supply of raw milk pose constraints.

Barely 15 years old, the U.S. organic dairy industry is growing like a strapping adolescent. Industry leaders estimated growth over the last year at 25%-30% to total retail sales of $500 to $600 million. But like a teenager outgrowing new clothes, the category is straining to acquire sufficient supplies to keep up with its growth. Dean Foods, owner of the Horizon Organic brand, blamed an “an industry-wide shortage of raw milk” earlier this year for higher costs of

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