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Organic Production andHorticulture AEC 317 Fall 2014
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Organic Produce Markets Initially grass roots program Movement toward commercialization led to
state-by-state certification Flexible to growing region But variable standards across states Cap on market scale Push by national and regional retailers for
universal standards 2002 USDA National Organic Standards
adopted
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The USDA Program
http://www.ams.usda.gov/AMSv1.0/nop
Inputs and practices governed by National Organic Standards Board
Limits pesticides, fertilizers, no genetically engineered products
Third party certification and enforcement
Unlawful to wrongfully use term “organic” without certification
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Farm Bill Spending to Support Organic Agriculture
Source: USDA Organic Agriculture
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Organic Food Growth in U.S. Markets
Broader interest in organic food 20% annual growth for last 10 years
$6.1 B in 2000 $14 B 2005 $21 B 2008 $24.8 B in 2009 $26.7 B in 2010 $29.2 B in 2011 $32.3 B in 2013
Organic food sales channels (08/10): 47%/54% Conventional Supermarkets 44%/40% Natural Food Stores 9%/6% Direct MarketedSources: Dimitri & Greene, 2002; USDA ERS-Oberholtzer, Dimitri & Greene, 2005; Organic Trade Assoc., 2004; Tondel & Woods, 2006; Greene et al 2009; Greene at al, 2010, Food Facts – Organic Trade Assoc. June, 2010.
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Sales of Organic Products in U.S. 2013
Organic Trade Association Press Release, May, 2014
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Other quick facts In 2010, U.S. surpassed the European Union as the largest
market for organic products in the world. Organic food and beverages represents 4% of all U.S. food
and beverage sales (2013) Gross retail food sales in U.S., all foods, $760 B
Organic food/beverage comprises 92% of sale of all organic products (cotton, pet food, hay, etc.)
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Organic trends Fresh produce accounts for 42%/38% of all organic food
sales - - about 10% of all produce sales in U.S. are organic.
1/3 of organic produce sold under contract
Trend towards larger growers & direct to retailer sales
Still tiny in KY: 111 farms (all products)
State trade association: Organic Association of Kentucky
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Organic Trade Association http://www.ota.com/
USDA Programs in Organic/Sustainable Ag Sustainable Ag Research and Education Profit, stewardship, quality of life
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Some of the Issues1. International growth and marketing of organic – what are
the standards?: Equivalency agreements2. Expansion of GMO production: Industry pushes for
mandatory GMO labeling3. Scale production economies lower costs, but also premiums4. Growth in other eco-labels