Posts Tagged “organic products”
In 2014, certified and exempt organic farms in the US sold a total of $5.5 billion in organic products, according to a report published by the USDA’s National Agricultural Statistics Service (NASS). The top 10 states in terms of sales accounted for 78 percent of total US organic sales, with California being the leading state with sales of $2.2 billion.
The selection of organic products sold by US farms in 2014 was diverse and ranged from dairy to proteins, fruits & vegetables and grains. Lettuce and apples rank 4th and 5th in the top five commodities in organic sales with a value of $264 million and $250 million respectively. They follow after milk, eggs and broiler chickens.
Organic producers are able to get their products from farm to table more efficiently as their products don’t travel far to the consumer. Almost half was sold within 100 miles of the farm and two percent was sold internationally.
Almost 40 percent of survey respondents indicated they intend to increase their organic production within the next five years.
The popularity of organic products with consumers has reached an all-time high, according to the Organic Trade Association, in Washington, D.C. The group issues an annual survey on organic sales trends.
The industry is expecting growth to continue, as organic becomes “more mainstream and conventional grocers continue to increase their interest in the industry.
In 2014, traditionally conventional grocers not only increased their interest in organic but they also indicated they would continue to carry organic products. For example, Safeway was mentioned as having established itself a veteran with its O organic line. Major retailers, such as Kroger, Target, Wal-Mart, and Costco have declared their interest in organic as a part of their future growth strategies.
“Obviously, the numbers show tremendous growth, with consumers driving organics as a whole, and that’s not going to change,” said Laura Batcha, CEO and executive director of the OTA.
Batcha emphasized the only restraint on the category is supply.
“We hear from folks across the supply chain that the limiting factor is the availability of product, and we’re seeing so many retailers not only getting into organics but making it a strategic priority,” she said.
That includes regions in which organics had not been big sellers in the past, including the Midwest and Southeast, Batcha said.
“Our expanding customer and grower base goes to prove that organics is not going away,” said Cherie France, marketing manager with Porterville, Calif.-based Homegrown Organic Farms.
Batcha pointed to markets in the Southeast, in which 68% of households are purchasing organics, as showing unprecedented sales of organics.