Organic Production and Horticulture AEC 317 Fall 2014.
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Slide 1 Organic Production and Horticulture AEC 317 Fall 2014 Slide 2 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 Slide 3 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 Slide 4 Farm Bill Spending to Support Organic Agriculture Source: USDA Organic Agriculture Slide 5 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 Marketed Sources: 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. Slide 6 Sales of Organic Products in U.S. 2013 Organic Trade Association Press Release, May, 2014 Slide 7 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.) Slide 8 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 Slide 9 Organic Trade Association Organic Trade Association http://www.ota.com/ USDA Programs in Organic/Sustainable Ag Sustainable Ag Research and Education Sustainable Ag Research and Education Profit, stewardship, quality of life Slide 10 Some of the Issues 1. International growth and marketing of organic what are the standards?:Equivalency agreements 2. Expansion of GMO production:Industry pushes for mandatory GMO labeling 3. Scale production economies lower costs, but also premiums 4. Growth in other eco-labelsother eco-labels
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