Milk with added omega-3 and milk from grass-fed cows are just two of the niche products Organic Valley has created as it searches for new opportunities within the organic milk market. As more companies have moved into organics, it's become key for dairy firms to carve out new niches, says Larry Lev, an agricultural economist at Oregon State University. "How are you going to stand out? How are you going to keep your customers happy?" Lev says. "It's a lot of new product innovation in a short amount of time."

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