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The good news for manufacturers of organic foods is that demand among consumers is growing impressively. According to the Organic Trade Association (OTA), sales increased by 21% in 2006, reaching a total of $16.7 billion. Problems are developing on the supply side, however, as raw materials become more difficult to secure.

OTA’s 2007 Manufacturing Survey found that 55%of respondents were restricted from generating more sales of organic products by lack of dependable supplies. This is up from 52%the previous year.

Difficulties were most pronounced in the two fastest growing segments of the organics market: meat and dairy products. The demand for organic meats, currently the smallest segment of the market, rose by 55%last year, with total sales at $300 million. Dairy, the largest segment, rose by 25%to total sales of $2.6 billion. (SOURCE: FoodNavigator.com)