Kroger (KR) to sell only hormone-free milk

Kroger (NYSE: KR) has announced a policy change that will make one of the nation's largest grocer's a provider of exclusively hormone-free milk. rBST is a hormone that is sometimes given to cows to increase milk production, and the FDA says it is not harmful to drink. However, many groups believe otherwise, and increasingly farmers have been certifying that their milk does not contain this hormone. Kroger said in a press release that it has been telling its suppliers that it prefers hormone-free milk, but will now be making the policy official."

"Our customers' increasing interest in their health and wellness is the basis for our decision," said William Boehm, senior vice president and president of manufacturing for Kroger. "We appreciate the willingness of dairy cooperatives across the country to work with us to make this transition in the next six months."

According to the Wikipedia entry on rBST, "Milk production in North America, Europe, and Australia is already plentiful and milk is generally inexpensive. Those opposing the use of the drug have expressed concerns that using the drug to increase milk production (hence depressing prices) primarily benefits large scale producers and will narrow the margins that small dairy farms receive for their products."

Kroger did not say whether the change would increase costs to consumers but given that the company and many others already prefer hormone-free milk, any increase should be minimal.

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