Organic Demand Draws Producers Deeper into Supply Chain

The growing demand for organic foods is stretching the limits of the supply chain. The cost of changing from conventional to organic farming has made the transition difficult for many farmers, preventing organic output from keeping up with demand.

To help ease the process, some producers are getting involved in the supply chain themselves to ensure they have consistent access to the ingredients they need. org wheatFoods purchased 2,800 acres of Montana cropland for $2 million as part of a larger plan to control its own supply of wheat, oats, and other ingredients.

Other companies are financing farmers, offering technical training and hiring people to recruit organic growers for their efforts. Some companies hope the move will also make organic prices cheaper in the long term, reported The Wall Street Journal. Full Story