Organic Milk In Short Supply

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January 10, 2012

Retailers are having a harder time sourcing organic milk for their store brands as supply fails to keep up with demand.

In some parts of the United States, particularly the Southeast, organic milk suppliers are having a difficult time meeting demand and retailers are faced with rising prices, thanks to the product’s popularity. According to a recent report in the New York Times, the increased popularity or organic dairy products coupled with rising commodity prices including grain feed, are helping to push up prices and keep the product scarce.

In some parts of the Southeast, stores have empty shelves and retailers -- including Target and Wegmans -- are reporting difficulty keeping organic milk in stock. Publix told the New York Times that shortages began in November with both its store brand GreenWise Market organic milk, and national brands are now harder to get, as well.

“Supplies are sporadic,” Kimberly Jaeger, a Publix spokeswoman told the New York Times. “We are working with our suppliers to secure as much organic milk as we can.”

The problem is expected to continue and retailers may be forced to either raise prices or reduce profit margins.

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