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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