Organic Markets

Organic MarketsOrganic Markets

2007 Southern Outlook Conference2007 Southern Outlook ConferenceAtlanta, GeorgiaAtlanta, Georgia

U.S. Organic Food Sales, 2005 ($ mil.)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006*

2006 sales are estimated at $16.7 million.• Annual growth rate – 20.7% • Market penetration – 2.79%

* Forecasted. SOURCE: Organic Trade Association.

Organic ProductsOrganic Products Organic Food Channel Distribution:Organic Food Channel Distribution:

47% natural food chains (health foods, natural 47% natural food chains (health foods, natural grocery),grocery),

46% mass-market channels (super-markets, 46% mass-market channels (super-markets, grocery stores, mass merchants, etc.),grocery stores, mass merchants, etc.),

7% other (includes farmers markets, food service 7% other (includes farmers markets, food service and other non retail-store sales).and other non retail-store sales).

Fruit and vegetables account for the largest Fruit and vegetables account for the largest portion of total organic food sales, but dairy portion of total organic food sales, but dairy and meat products are the fastest growing and meat products are the fastest growing product categories. product categories.

““Organic” means many things to Organic” means many things to consumers representing everything consumers representing everything from quality, health, locally grown,from quality, health, locally grown,73% of Americans use organics at least 73% of Americans use organics at least occasionally, up from 55% in 2000.occasionally, up from 55% in 2000.43% of surveyed respondents have no 43% of surveyed respondents have no idea what the USDA Organic Seal idea what the USDA Organic Seal indicates when placed on a product.indicates when placed on a product.Price is the biggest barrier to market Price is the biggest barrier to market growth.growth.

Source: Organic 2006: Consumer Attitudes & Behavior, Five Years Later & Into the Future. The Hartman Group, Inc.

http://www.ams.usda.gov/nophttp://www.ams.usda.gov/nop

Useful Web SitesUseful Web Sites

USDA National Organic Program USDA National Organic Program http://www.ams.usda.gov/nop/index.http://www.ams.usda.gov/nop/index.htmhtm

Organic Materials Review Institute Organic Materials Review Institute www.omri.orgwww.omri.org

Organic Trade AssociationOrganic Trade Association www.ota.comwww.ota.com USDA Economic Research Service USDA Economic Research Service

http://www.ers.usda.gov/data/organihttp://www.ers.usda.gov/data/organic/c/

What is “Organic”?

Four Categories of Organic LabelsFour Categories of Organic Labels

1.1. 100% Organic 100% Organic 2.2. Organic (95%-100% organic)Organic (95%-100% organic)

““Other products cannot carry the Other products cannot carry the USDA seal”USDA seal”

3.3. Made with organic (70%-95% organic Made with organic (70%-95% organic ingredients)ingredients)

4.4. Less than 70% organic ingredientsLess than 70% organic ingredients

Organic ProductsOrganic Products Only “100 percent organic” and Only “100 percent organic” and

“Organic” can use the USDA “Organic” can use the USDA organic Seal,organic Seal,

A civil penalty of up to $10,000 A civil penalty of up to $10,000 per violation can be levied on any per violation can be levied on any person who knowingly sells or person who knowingly sells or labels as organic a product that is labels as organic a product that is not produced and handled in not produced and handled in accordance with the regulation.accordance with the regulation.

Organic ProductionOrganic Production

From 1992 to 2001, the number of organic From 1992 to 2001, the number of organic farming operations has almost doubled, farming operations has almost doubled, reaching almost 7000 operations,reaching almost 7000 operations,

From 1997 through 2001, the number of From 1997 through 2001, the number of certified organic acres in the U.S. has certified organic acres in the U.S. has increased by almost 1 million acres increased by almost 1 million acres growing from 1.346 to 2.343,growing from 1.346 to 2.343,