At the same time, organic prices have stabilized and in some cases dropped due to what experts call a one-year glut in production caused by farmers taking advantage of a regulatory grace period regarding feed requirements. Hundreds of new farms are going organic, creating an abundance of milk that has even led to a price war of sorts in some parts.
The $14 billion organic foods industry has been growing rapidly over the past five years, with dairy accounting for some $2.14 billion in sales. It's milk, though, that is expected to see the biggest surge in 2007, due primarily to the Department of Agriculture giving farmers one last year to feed cows 80 percent organic feed and 20 percent conventional to be certified as organic.
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