By TIM ALEXANDER Illinois Correspondent
SPRINGFIELD, Ill. — Sales of organic food and non-food products in the United States set all-time sales records in 2014, accounting for $39.1 billion, or a near “milestone” 5 percent share of the total food market, according to the Organic Trade Assoc. (OTA) 2015 U.S. Organic Industry Survey. These sales reflected an 11.3 percent increase in consumer demand for organic products over 2013 sales, with the organic dairy sector leading the way with a nearly 11 percent jump in sales, to $5.46 billion. Further proof of the skyrocketing demand for organics came April 15, when the USDA Agricultural Market Service (AMS) and National Organic Program (NOP) announced the organic industry has grown to a record 19,474 certified organic operations in the United States and 27,814 around the globe. The number of certified domestic organic operations increased by more than 5 percent from 2013 and has grown by 250 percent since the count began in 2002, the agencies added. “As demand for organic products continues to soar, more and more producers are entering the organic market,” noted Agriculture Secretary Tom Vilsack. “USDA tools and resources have created opportunities for organic farmers and more options for organic consumers. Growing demand for organic foods can be especially helpful to smaller family operations. “The more diverse type of operations and the more growing market sectors we have in American agriculture, the better off our country’s rural economy will be.” Fresh fruits and vegetables traditionally capture the largest share of the overall organics market, accounting for 43.3 percent of organic food sales in 2012, according to the Nutrition Business Journal. Fruits and vegetables were followed by organic dairy products (15 percent), packaged or prepared foods (11), beverages (11), bread and grains (9), snack foods (5), meat, fish and poultry (3) and condiments (3). Sales of organic non-food products posted their biggest gain in six years during 2014, accounting for 8 percent of the total organic market. Increased sales of organic fiber and personal care products spurred last year’s growth in non-food organic products, according to OTA’s survey. “Across the country, more and more people are looking for organic options at their local markets,” blogged Anne L. Alonzo, USDA Agricultural Research Service administrator. “Thanks to the remarkable growth in the number of domestic and internationally certified organic operations, Americans now have more choices than ever.” The NOP website breaks down the number of certified organic operations by state, with California leading the way by far. In Illinois, there were 418 organic farms and handling facilities certified during 2014, accounting for 2 percent of the nation’s 19,474 certified domestic organic operations. While the USDA trumpeted growth in organic operations, many recent certifications represent grain farmers spurred by the premium prices that certified-organic grains bring from buyers, noted Deborah Cavanaugh-Grant, Illinois extension educator in local food systems and small farms. In addition, many “pure” organic growers and producers are beginning to worry the market is becoming crowded with those who aren’t truly practicing organic principles when producing their products, she said. “Many consumers don’t feel that farmers need to have organic certification, that if the farmer says, ‘I’m using organic practices,’ that’s (good enough). We’re at a weird place in the marketplace where people have conversations and use other words to describe what they’re doing, but consumers are satisfied,” said Cavanaugh-Grant. “From the USDA perspective, it is true that there are more certified organic operations; they have the data to support that. But I’m very involved in farmers’ markets, and you can see that not very many of those selling organic at farmers’ markets are certified organic.” The OTA estimates only about 7 percent of U.S. organic food sales occur through farmers’ markets and other venues outside conventional and organic retail food outlets. Still, the growth in organics has been “huge” since she began charting the growth of organic sales and farmers’ markets in Illinois two decades ago. “With the local food movement, there is an increased awareness people have about their food. They have become more educated about food production practices and are choosing organically-produced foods,” she said. There are, conversely, a significant number of farmers who regularly adhere to organic growing principles that do not currently possess USDA organic certification because the designation might place restrictions on their operations, according to Cavanaugh-Grant. But as the market grows, taking the leap to organic certification, which is required to sell organic grains here and abroad, could prove profitable for more farmers. “The demand for organics exceeds the supply. From the grain perspective, there is a lot of opportunity for farmers to raise these crops organically,” she said. |