I have to wonder how much these sheep produce?
@Bossroo
I pull and bottle feed all kids, we may allow a doe to dam raise here or there but most are pulled at birth. This year we only freshened 10 does- so yes I'm on a very small scale. Next spring it looks like we'll be freshening ~20.
I pull them at birth and give them colostrum from their dam. After that the milk is pooled together and fed accordingly.
My kids are not starving or stunted.
I actually have a few kids that are bigger than they should be. But, at least I'll be able to breed them this year.
I'm actually very pleased right now, 2 of my doelings that were from a set of quints are lovely. I'm shocked with their size, they are much larger then what is expected due to the large litter and the tiny size they were at birth
I don't know how much sheep milk, but most of our goats give more milk then the kids can use. I believe that is because I condition them to produce more. I milk 3x daily for the first week and 2x daily for the next 7-10 months. If I can't milk 2x a day for the next 7-10 months they get milked 1x a day.
Again, not one of my kids are starving and they don't get all the milk. We share it

Many dairy goat farms do this.
A well known alpine breeder was just talking about a doe that is on DHIR milk test. This doe just produced 24lbs on her last test. That is 1 pound per hour. The kids cannot possibly eat that much, especially when the doe produces 1-2 kids, triplets and quad can happen but its not very common in that breed. Obviously not all alpines will milk that much, but the point is many will still give plenty of milk.
Yes, bottle feeding is time consuming. I have had luck with training them to drink from a trough. This spring I will use a lambar bucket. It is still time consuming, but it will help.
You mentioned that the farm was selling to "organic stores". That in itself could have been one of the issues. You and I both know that many of these organic farms aren't as informed as they think they are. I have seen it many times.
How old were these lambs? Did you ever do a parasite count on them? What about cocci? Lice/mites? Did these lambs have or had sore mouth? If they were just getting over sore mouth they may not have been eating.
You cannot say all sheep dairies are starving the lambs, just like you cannot say every dog (or horse) owner abuses their animal/s.