The decision reflects the increasing pressure on dairy processors to look to new markets and higher value production to offset increasing commodity costs.

Group president Jeff Williams told DairyReporter.com that the company was increasing its focus in organic production after witnessing annual growth of about 20 per cent for such products in the US market alone, especially for milk and yoghurt.

He added that the category grew while non-organic cheese production continues to be hurt by increased prices for milk.

"As a commodity cheese manufacturer in the US, we continue to see margin erosion in our core product offering as customers are reluctant to accept price increases," Williams stated. "However, the inflation engine in the business continues to negatively impact costs."

Source: foodproductiondaily.com