The shortage of organic milk in Europe is stymieing product innovation, according to Organic Monitor, while the opposite is true in the US thanks to farmers' earlier compliance with new regulations.

The analyst has raised concerns about production of organic foods in Europe being able to keep up with demand in the past, and dairy products are a pertinent example of this. It says that the UK and Germany are the worst affected countries, where retailers are driven to sourcing organic milk from neighbouring countries.

France's EPI Ingredients is expanding its supply milk powders with a new deal with Belgian dairy firm Solarec, which will give it the rights to commercialise all the powders produced at the latter's Recongne-Libramont facility.

EPI Ingredients, a subsidiary of co-operatives Coopagri Bretagne and Terrena, presently commercialises some 65,000 tonnes of dairy ingredients and has a turnover of €140m.

The new arrangement, which will come into effect as of September 1, is expected to step up supply of milk powders