Transcript Document 9657562

Organic Markets
2007 Southern Outlook Conference
Atlanta, Georgia
2006 sales are estimated at $16.7 million.
• Annual growth rate – 20.7%
• Market penetration – 2.79%
U.S. Organic Food Sales, 2005 ($ mil.)
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
1997
1998
1999
2000
2001
2002
* Forecasted. SOURCE: Organic Trade Association.
2003
2004
2005
2006*
Organic Products
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Organic Food Channel Distribution:
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47% natural food chains (health foods, natural
grocery),
46% mass-market channels (super-markets,
grocery stores, mass merchants, etc.),
7% other (includes farmers markets, food service
and other non retail-store sales).
Fruit and vegetables account for the largest
portion of total organic food sales, but dairy
and meat products are the fastest growing
product categories.
“Organic”
means many things to
consumers representing everything
from quality, health, locally grown,
73% of Americans use organics at least
occasionally, up from 55% in 2000.
43% of surveyed respondents have no
idea what the USDA Organic Seal
indicates when placed on a product.
Price is the biggest barrier to market
growth.
Source: Organic 2006: Consumer Attitudes & Behavior, Five
Years Later & Into the Future. The Hartman Group, Inc.
http://www.ams.usda.gov/nop
Useful Web Sites
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USDA National Organic Program
http://www.ams.usda.gov/nop/index.htm
Organic Materials Review Institute
www.omri.org
Organic Trade Association
www.ota.com
USDA Economic Research Service
http://www.ers.usda.gov/data/organic/
What is “Organic”?
Four Categories of Organic Labels
1. 100% Organic
2. Organic (95%-100% organic)
“Other products cannot carry the
USDA seal”
3. Made with organic (70%-95% organic
ingredients)
4. Less than 70% organic ingredients
Organic Products
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Only “100 percent organic” and
“Organic” can use the USDA
organic Seal,
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A civil penalty of up to $10,000
per violation can be levied on any
person who knowingly sells or
labels as organic a product that is
not produced and handled in
accordance with the regulation.
Organic Production
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From 1992 to 2001, the number of organic
farming operations has almost doubled,
reaching almost 7000 operations,
 From 1997 through 2001, the number of
certified organic acres in the U.S. has
increased by almost 1 million acres
growing from 1.346 to 2.343,