Horizon Feeling the Heat

"The parent company of the nation's largest brand of organic milk Tuesday lowered 2007 earnings expectations for a second time this year blaming, in part, a current "considerable disruption in the organic milk market" due to oversupply.

Listing the challenges facing Dallas-based Dean Foods Co., Gregg Engles, chairman and chief executive officer, also warned that sharply rising conventional milk prices could hit all-time highs by the third quarter.

He warned the higher costs would put pressure on profits for its Dairy Group. Meanwhile, the opposite supply dynamic in the organic milk market could have the same bottom line impact.

"Our Horizon Organic brand is facing significant near-term industry-wide oversupply of raw organic milk," Engles said."

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