Dean Foods saw third-quarter profit that fell short of analysts’ estimates because of higher costs at its Horizon unit, the biggest U.S. organic milk processor. Profits did rise to 54 cents from 40 cents, analysts had expected 56 cents.

Dean Foods saw third-quarter profit that fell short of analysts’ estimates because of higher costs at its Horizon unit, the biggest U.S. organic milk processor. Profits did rise to 54 cents from 40 cents, analysts had expected 56 cents.

Sales at WhiteWave grew 4.9%, but tighter supplies of raw organic milk and higher costs for plastic containers and energy cut into profits, CEO Gregg Engles said during a conference call when the earnings were reported.

Net sales for the third quarter totaled $2.5 billion, a decrease of 2% from the third quarter of 2005, due to the pass through of lower raw dairy input costs.

Last month the nation’s leading dairy company was sued by two shareholders who alleged stock option backdating. The U.S. Securities and Exchange Commission last month began an informal inquiry into the company’s stock-option practices, based on the complaint.