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Pastimes : Let's Talk About Our Feelings!!! -- Ignore unavailable to you. Want to Upgrade?


To: JeffA who wrote (103292)5/6/2005 3:28:37 PM
From: Grainne  Respond to of 108807
 
The entire West Coast of America, and all the cities and college towns everywhere in the country, have a significant number of businesses that cater to the needs of vegetarians and vegans and people who demand organic and free range products. I have a girlfried who lives in St. Louis, and she shops at Wild Oats to buy organics just like I do where I live. I would agree that small towns in rural areas, and the South in general, are somewhat behind the rest of the country in terms of this trend. Where I disagree with you is when yo say the world is not moving your way in any significant manner. I will post an article from the BBC about the demand for organics in England. Western Europe is ahead of America on this one.

I did not understand what you are saying here, because it seems like you are contradicting yourself. Could you rephrase this statement possibly? "The world is not moving your way in any significant manner. You have huge food conglomerates noticing an 11 billion dollar organic market, I'd say the factory are coming for your organic lifestyle wholeheartedly."

news.bbc.co.uk

Last Updated: Monday, 15 November, 2004, 12:45 GMT


South West is 'organic central'

Three out of four shoppers in the South West are said to buy organic
The South West of England has the largest concentration of organic farmers in the UK, new figures claim.
The Soil Association says the region has 990 registered producers, which accounts for a quarter of the UK total.

The Bristol-based group said shoppers in the South West were more likely to buy organic food than those elsewhere.

Three out of four said they bought some organic food each year. There has been a growing interest among local farmers wanting to go organic.

Organic South West (OSW) in Callington, Cornwall, is said to be getting more enquiries from producers seeking to go convert.

OSW, which promotes organic food and farming has worked with six local schools to help them provide local and organic food for pupils.

'Sales up'

The Soil Association's Organic Food and Farming Report 2004 also revealed that, nationally, sales of organic food have increased by over 10% in the last year.

The proportion of organic food sold through the supermarkets is said to have fallen by 1% for the second year running, with consumers turning directly to farmers.

Sales through box schemes, farmers' markets or farm shops have soared by 16% and are now worth £108m a year.

About a million more organic chickens were sold last year, despite relatively little promotion by the supermarkets.

Patrick Holden, Director of the Soil Association said: "The organic market is thriving and is being driven by consumers who want to buy fresh, local, good-quality seasonal food directly from the farmer.

"The leading supermarkets must take note of the public's wishes and increase the amount of locally-sourced organic food in store, which should come from small and medium-sized farms."




To: JeffA who wrote (103292)5/6/2005 4:14:17 PM
From: Grainne  Respond to of 108807
 
I don't want to bore you, but I did gather together some articles on just how fast the organics market is growing in the U.S. and worldwide, so I thought I would post them so that you and anyone else who is interested can read them. Some of them are a few years old, and some of them are more recent, but they all document how quickly the U.S. and worldwide markets for organics is growing. I even found an interesting piece on how fast the market in Russia for organics is growing, but it was a PDF document, so I skipped it. I am really surprised that the farmers and other midwesterners who post at Feelies don't seem to be aware of these huge trends in agriculture:

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ORGANICS

Information provided by United States Department of Agriculture (USDA) and North Carolina Department of Agriculture.
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Overview
Organic Certification
Growth and Demand For Organics
Organic Farming and Marketing
North Carolina Department of Agriculture Information and Contact information
Defining Sustainable Agriculture
Center for Environmental Farming Systems-North Carolina State University
Funding for Organic Farming – OFRF
Resources
CEFS Organic Student Farm’s Virtual Classroom


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Overview
Organic farmers build healthy soils by nourishing the living component of the soil, the microbial inhabitants that release, transform, and transfer nutrients. Soil organic matter contributes to good soil structure and water-holding capacity. Organic farmers feed soil biota and build soil structure and water-holding capacity. Organic farmers feed soil biota and build soil organic matter with cover crops, compost, and biologically based soil amendments. These produce healthy plants that are better able to resist disease and insect predation. Organic farmers’ primary strategy in controlling pests and diseases is prevention through good plant nutrition and management. Organic farmers use cover crops and sophisticated crop rotations to change the field ecology, effectively disrupting habitat for weeds, insects, and disease organisms. Weeds are controlled through crop rotation, mechanical tillage, and hand-weeding, as well as through cover crops, mulches, flame weeding, and other management methods. Organic farmers rely on a diverse population of soil organisms, beneficial insects, and birds to keep pests in check. When pest populations get out of balance, growers implement a variety of strategies such as the use of insect predators, mating disruption, traps and barriers. Under the National Organic Rule, growers are required to use sanitation and cultural practices first before they can resort to applying a material to control a weed, pest or disease problem. Use of these materials in organic production is regulated, strictly monitored, and documented. As a last resort, certain botanical or other non-synthetic pesticides may be applied.

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Organic Certification (USDA)
Certification is the key to the National Organic Program. It assures that organic growers and handlers are, in fact, adhering to the law. Since October 21, 2002, it is a federal offense to label any food product as "organic" unless it has been certified. All uses of the labeling term "organic" for food are regulated.
The certification process focuses on the methods and materials used in production. There are three main requirements:

the methods and materials used in production must meet organic standards
there must be clear and ongoing documentation of these methods and materials
there must be a paper trail tracing a product back to its production site, in order to verify the methods and materials used in its production.
Who must be certified?
With two exceptions, everyone selling products labeled as "organic" must be certified. This includes producers of organic livestock, food, and fiber crops, and "handlers" of organic products. A "handler" is any operation that "receives, processes, packages, or stores agricultural products." Some examples: a processing company that buys organic tomatoes and makes canned spaghetti sauce; any distributor who "substantially transforms, repacks or relabels organic agricultural products." This last distinction is meant to exclude brokering, warehousing or trucking operations that merely store or move finished processed products from place to place without altering them in any way.

The exceptions:

Growers who gross less than $5,000 annually are exempt from certification. The National Organic Standards Board (NOSB) recommends that these growers sign a declaration (available from certifying agencies) stating that they understand and are in compliance with the Organic Foods Production Act (OFPA), and that they have written an organic farm plan which can be made available to the public upon request. NOSB further recommends that growers falling under this "Small Farm Exemption" may not use the term "certified organic" when marketing their crops, and may market through direct sales only (farm stands, farmers’ markets, or direct sales to a retailer).
At present, retailers aren’t required to be certified. NOSB, however, recommends certification for retailers that engage in activities that qualify them as handlers (i.e., repacking bulk products such as dry beans or grain).

How the certification process works
A grower or handler seeking organic certification submits an organic farm plan or organic handling plan to a USDA-accredited private or state certification program. The organic plan must detail all current growing or handling methods, and any materials that will be used. The plan also covers future intentions and improvements to all areas of production. Even growers or harvesters of organic wild crops, such as fiddlehead ferns, must develop a plan showing that harvesting practices will not be destructive to the environment or to the future productivity of the crop.
Records of all management practices and materials used in organic production must be kept for five years.

In addition to assessing the organic plan, the certification agency performs annual on-site inspections of each farm or handling operation participating in its program. Certification is then either awarded or denied. User fees are collected from each grower or handler to cover the cost of the certification program.

Accreditation of certifying agents
Now that the federal rule has been implemented, only USDA-accredited agencies may act as certifiers. Certifying agencies may be either state or private, but they must have expertise in organic farming and handling techniques. They must be able to fully implement all aspects of the certification program, including hiring an adequate number of inspectors to carry out on-site inspections. See a list of OTA member certifiers here.

Accreditation may be granted by USDA for a period not to exceed five years, and may be renewed. User fees are collected from each certifying agency to cover the cost of the accreditation program.
Certifying agents must keep records of all of their activities for ten years. USDA is required to conduct on-site audits of all records. USDA or a state organic program may suspend a certifier’s accreditation if the certifier is not in compliance with OFPA.

How can I reach an organic certification agency that serves my area?

Depending on where you live or farm in the U.S., there may be one or several organic certifications agencies that serve your region. There are more than fifty organic certification agencies operating in the U.S., and these include non-profit organizations, state- or county-affiliated agencies, and for-profit corporations. Some agencies work solely within a county or state, while others conduct organic certifications regionally or nationwide. Depending on the type of agency, an organic certifier may also provide additional services to farmers and the public, such as information about organic food and farming, sponsorship of workshops and conferences, or organic marketing materials. OFRF offers an annually updated National Organic Certifiers Directory or you can contact the USDA National Organic Program.

North Carolina
Accredited Certifying Agents

North Carolina Crop Improvement Association
3709 Hillsborough St.
Raleigh, NC 27607-5464
919-515-2851
Email: myron_fountain@ncsu.edu
Website: www.nccia.ncsu.edu
Scope: crop, livestock

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Growth and Demand for Organics (USDA)
The organic industry continues to expand. Here are some statistics regarding this burgeoning market.

"Organic foods have been a particularly bright spot on the agricultural horizon in recent years. According to industry estimates, retail sales in the United States grew from $1 billion in 1990, to $5.5 billion in 1998. Although part of a high-value niche market, organic products are no longer found exclusively at farmers’ markets or health food stores. Instead, mainstream shoppers are finding increasing numbers of organic products on supermarket shelves around the country. At the same time, demand for organic products overseas is at an all-time high, and growing."

—U. S. Department of Agriculture, Foreign Agricultural Service, AgExporter June 2000.

"Industry observers expect demand for organic products and commodities around the world to grow for several reasons. First, core support for organics is strongest among affluent, educated, health-conscious consumers. The motivations that first drew them to organics, such as concern for the environment and their personal health, are likely to endure. Second, today’s time-pressed organic product consumers want convenience and variety. Mainstream retailers who want to meet consumers’ preference for one-stop shopping will require a steady and reliable supply of organic products."

—U. S. Department of Agriculture, Foreign Agricultural Service, AgExporter June 2000.

"Almost one-third of the U.S. population currently buys organically grown food products. Another 60% does not, but would be willing to try them. Light organic buyers account for 29% of the U.S. population, while 3% are heavy organic buyers. Over half of all organic products are purchased at grocery stores and supermarkets. The most frequently purchased product groups are vegetables, fruits, and cereals/grains"

—Hartman Group, "The Organic Consumer Profile," January 2000.

"According to a January 25, 1999, United Nations Food and Agriculture announcement, "Consumer demand for organically produced food is on the rise and provides new market opportunities for farmers and businesses around the world."

—United Nations Food & Agriculture web site, 1999

"Organic shoppers are significantly more likely than other shoppers to say their diet is very important, and that their food choices are influenced by environmental issues. In addition, college educated shoppers are the key market for organic products."

—HealthFocus Inc., "What Do Consumers Want from Organics?" 1999.

The "Fresh Trends 2000" report published by The Packer found:

Nearly one-third of consumers bought natural or organic produce in the previous six-month period. Eighty-two percent of those purchasing organic fresh produce bought vegetables.
The leading purchasers are those ages 45–54 (36%) and 18–34 (35%).

Of 1,000 shoppers polled, 67% indicated their primary store provides natural or organic foods. Of the 669 persons who said their supermarket carries natural or organic foods; 54% buy organic or natural foods at least once a month; 23% buy them at least once a week; 31% buy them at least one to three times a month; and 26% never buy organic or natural products. Meanwhile, 37% said they have looked for and purchased products labeled as "organic," while 38% said they almost always or sometimes look at organic claims.

—Food Marketing Institute, Trends in the U.S.: Consumer Attitudes and the Supermarket, 2000.

Worldwide, more than 7 million hectares—an area about the size of South Carolina—are now producing organic food and fiber. Farmers in 130 countries now produce organically grown food. In the United States, 0.2% of cropland is now certified organic, compared with nearly 10% in several European nations. Globally, consumers now spend $22 billion a year on organic products. Organic farming is the fastest growing sector in the agricultural economy. Nearly half of the major U. S. supermarkets now carry organic products. In Japan, demand is growing by more than 20% a year. Companies from McDonald’s to Patagonia now buy at least some organic ingredients.

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Organic Farming and Marketing
Feature

U.S. Organic Farming in 2000-2001: Adoption of Certified Systems—U.S. farmland managed under organic farming systems expanded rapidly throughout the 1990s, and that pace has continued as farmers strive to meet consumer demand in both local and national markets. An increasing number of U.S. farmers are adopting these systems in order to lower input costs, conserve nonrenewable resources, capture high-value markets, and boost farm income. This report updates USDA estimates of land farmed with organic practices during 1997 with estimates for 2000 and 2001, and provides new estimates on the number of certified organic operations in each State. AIB-780 (4/03).

U.S. Organic Farming: A Decade of Expansion—American farmland under organic management has grown steadily for the last decade, with acreage for major crops more than doubling between 1992 and 1997, and again between 1997 and 2001. Certified organic pasture (including ranchland) also doubled between 1997 and 2001. USDA's national organic standards, which took effect in October 2002, incorporate an ecological approach to farming and are expected to generate further interest in organic products. Agricultural Outlook (11/02). Download PDF version.

Organic Agriculture Poster—Prepared to publicize the new organic rule's implementation, this poster gives the USDA definition of organic agriculture and presents summary data on growth in organic markets and the location and size of U.S. organic production. (10/02)

Recommended readings

Organic Agriculture:Gaining Ground— Organic agriculture is expanding rapidly in the United States, as consumer interest continues to gather momentum and new organic production and marketing systems evolve. In the wake of USDA's implementation of national organic standards in October 2002, continued growth in the industry is expected. Amber Waves (02/03).
Organic Food Markets in Transition—For the past several years, the organic foods industry has been growing at a remarkable rate of 20 to 24 percent annually . Such growth has led to a transformation in the organic foods industry. A major focus of this report is to determine how new and established firms are faring in this entrepreneurial climate, and whether they can expect to coexist and thrive in what is a unique market.
Organic Wheat Production in the United States: Expanding Markets and Supplies—describes the emerging markets and price premiums for organically grown wheat crops, as well as the production and distribution challenges posed by these crops. The article—which appears in the Wheat Situation and Outlook Yearbook (page 31)—also examines the competition for international organic wheat markets and other U.S. organic export and policy issues.

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North Carolina Department of Agriculture
Organic Growers Certification Cost Share North Carolina Department of Agriculture & Consumer Services has a cost share program to assist the organic grower with the cost of becoming certified under the National Organic Program. For a farm to become certified, a grower must be certified by a business or organization that is accredited by the USDA to certify organic operations. The financial assistance program is a 3-year program beginning January 1, 2002 and ending December 31, 2004. The NCDA & CS will reimburse current and transitional growers for 50% of the cost of certification up to a maximum of $500 per year. Return application by August 15th of the current year in which you are applying for funds. Download the Organic Growers Certification Cost Share Form. Requires free Adobe PDF reader.

Agronomic testing helps organic farmer

EAGLE SPRINGS—Billy Carter grows about 600 acres of vegetables, strawberries and tobacco in Montgomery and Moore counties. With 20 years of experience, he knows farming, but when he doesn't know something, he knows where to get help. When Carter learned that a new national standard for growing organic crops would go into effect this year, he contacted David Dycus, regional agronomist with the N.C. Department of Agriculture and Consumer Service's Agronomic Division.

"I've grown organic tobacco for seven years," Carter said, "and produced my own transplants in the greenhouse. Under the old rules, I could grow transplants with commercially manufactured fertilizer. This year, a new rule requires that transplants used in organic production be grown with natural fertilizers. This is something that no one around here has ever done. There is nothing published so I started doing some experimenting last year."

Tobacco transplants, and many vegetable transplants, are grown in floatbeds in greenhouses. The seedlings sit in styrofoam trays that float on top of a nutrient solution. Commercially produced fertilizers are ideal for floatbeds because they dissolve easily in water and do not clog pumps. Organic fertilizers do not possess these same properties and using them in a floatbed situation is pretty much uncharted territory.

Carter studied the organic fertilizers available and picked two he wanted try in the floatbeds: a seabird manure and a bat guano. "Then I called Dycus because I knew he had the resources at the NCDA&CS agronomic laboratories to help me evaluate these fertilizers. I was going to need both solution and waste analyses."

Solution analysis is a laboratory test that measures the nutrient content and other chemical properties of water sources and nutrient solutions. It tells growers whether water is suitable for a specific agricultural purpose, such as irrigation, fish farming, and greenhouse crop production. Waste analysis measures the nutrient content and other relevant properties of composted materials, manures or other waste products that are to be used as fertilizer. Both analyses cost $4 per sample.

Carter and Dycus took samples of each fertilizer to verify the nutrient content. They took a sample of the well water they planned to mix with the fertilizer. Then, after mixing the fertilizers with well water in five-gallon buckets, they collected samples of the nutrient solution.

Carter used the results to calculate how much fertilizer to add to each 4,000-gallon floatbed. It took three times as much bat guano as seabird manure to provide enough nitrogen for the seedlings, and the bat guano cost twice as much as the seabird product. With this information, it seemed obvious the seabird fertilizer would be the more economical choice, but as the "experiment" continued, other problems developed.

"After the organic fertilizers were added to the floatbeds, solution samples showed that nearly all the nitrogen in the seabird manure was in the ammonium form. The alkalinity of the water quickly rose to dangerously high levels. Plant roots could not even grow into the solution without being burned off. The floatbed fertilized with bat guano had half its nitrogen available as nitrate and half as ammonium, and the plants rooted just fine," said Carter.

Carter and Dycus brainstormed about the alkalinity problem. "In routine floatbed culture, alkalinity problems are solved by adding battery acid to the water," said Dycus. "Battery acid, however, is not a natural product. Citric acid or vinegar are the most acceptable choices for use in organic production."

Carter added citric acid to the nutrient solution in the floatbed and monitored it closely by taking solution samples. "I have a lot of confidence in solution analysis," said Carter. "It's a good way to find out exactly what's going on — alkalinity, pH, soluble salts, nutrient levels, everything you need to know."

Thanks to solution analysis, Carter was able to produce some field-ready organic transplants last year. This year, he's still experimenting and sampling — trying to resolve problems with the seabird product and adjust the floatbed alkalinity with vinegar since it is more economical and easier to obtain than citric acid.

Carter hopes, with the help of the Agronomic Division, to work out a standardized and effective fertilization method for organic transplant production. "Agronomic services are great and economical, and everybody bends over backwards to help," said Carter. "They're anxious to help because there is so much demand for this kind of information statewide."

In 2002, there were about 100 certified organic farmers in North Carolina. Organic production is one of the fastest growing segments of U.S. agriculture, and it could be a very profitable option for North Carolina farmers who are dealing with the decline of other markets. With growers like Carter who are dedicated to pioneering new ways to resolve production problems, other organic transplant producers throughout the state will benefit by not having to start from scratch.



To: JeffA who wrote (103292)5/6/2005 4:17:12 PM
From: Grainne  Respond to of 108807
 
From The April/May 2003 Issue of Natural Grocery Buyer

A Fruit For All Seasons
International sourcing meets off-season organic demand

Josh Dinar

Organic arugula the stuff of global trade? You bet. Organic food is big business. Although many growers and retailers cling to the ideal of locally grown, seasonal produce, there is staggering demand from consumers for organics—and plenty of companies moving to meet that demand. Mainstream consumers want coffee. They want kiwis. They want oranges and berries and melons and vegetables—never mind that the local growing fields are covered in snow. So organic produce is coming from around the globe to mainstream markets where shoppers are gobbling it up.

This new breed of organic consumer may be a little less savvy about all the reasons for buying organic, but they make up the majority of organic shoppers. They created a need for national organic certification standards and forced companies to increase growing and distribution efficiency and technology through the call for lower prices. They created a demand for organics that simply can't be met on a local level—or even a domestic one. And big business, before it does anything, looks to meet demand.

The global organics trade might still be considered in its infancy, especially when compared with the international distribution of conventional agriculture. But it is, by many accounts, hurtling toward adolescence.

"There is a huge trend toward organics in general," says Kathy Means, vice president of the Produce Marketing Association in Newark, Del. "What we've seen in the past five years is a very businesslike and strategic approach toward organics. Many conventional suppliers are spotting this trend and utilizing their resources to become a part of it."

In many cases, this means looking beyond U.S. borders to complete a year-round supply chain and to lower production and labor costs. From Mexico, Latin America and South America to Eastern Europe, Southeast Asia and Oceania, countries around the world are finding the organic trade a lucrative export industry, and are seeing huge percentage growth in export revenues almost across the board.

According to the U.S. Department of Agriculture's Foreign Agricultural Service, many countries that were completely without an organic sector in the 1980s are now deeply entrenched and committed to its growth. In Argentina, for example, sales of organics grew to $34 million from zero a decade ago. In Australia, revenues reached $149 million in 2000, up from $57 million in 1996, and officials estimate that within 25 years, 30 percent of all food grown on the continent will be organic. Organic sales in Brazil increased 86 percent between 1999 and 2001, with revenues of more than $100 million. Over a two-year period, the number of hectares dedicated to organic farming in Mexico grew more than 140 percent.

Currently, most of these countries are growing almost exclusively for export, primarily to the developed nations in North America and Europe where demand exceeds domestic supply. That these less-developed countries don't yet consume their domestic crop—many of them export 80 percent or more of their total yield—doesn't worry Joe Smillie, senior vice president of Quality Assurance International, a certification agency based in San Diego.

"By sourcing organic from foreign countries, we are in essence jump-starting a domestic market there," he says. "We help bring [organic agricultural] technology to these markets where the climates are conducive to a particular crop and, by allowing that country to fulfill our supply, we create not only a healthier environment, but help build a local economy. The domestic trade grows from there."

For Smillie, the schism between the organic "purists"—those who believe that the notion of an "organic Twinkie" is blasphemy and that the mass transport of organics undermines the whole point of the original movement—and the organic "capitalists" is a nonissue, or at least should be. "This country is capitalistic," he says. "Organics don't exist in a vacuum, and they won't work on a socialist level. Human beings have traded since time immemorial. The global trade of organics isn't an aberration—it's what we've done since day one. We want our coffee and our bananas, so we get them."

Of course, a good deal of the foreign organic supply comes from U.S. companies operating abroad. Cathy Greene, an agricultural economist at the USDA Economic Research Service, says the data is still too flimsy to provide a coherent trend analysis, but there is plenty of anecdotal evidence to suggest U.S. suppliers are finding adequate benefit in sourcing a portion of organic product from outside the country.

Los Angeles-based Melissa's/World Variety Produce Inc., for example, has logged 25 percent to 30 percent annual growth of its organic products (compared with the 2 percent to 3 percent growth of its conventional SKUs), and sources up to 40 percent of its products from Mexico. "We have to follow the season," explains President Robert Schuler. "Mexico is a great growing area with a lot of crop to offer, and we rely on that crop to help make up the rest of the season in California."

Likewise, the Sewickley, Pa.-based Certified Pure Ingredients sources largely from Chile, but also from Argentina, Russia, Turkey, Serbia and Poland to be contraseasonal and to help bring organic prices closer to those of conventional. "It's all about demand," says President Eric Johnson. "No one place produces anything year round, and this growing worldwide supply has added good support to the industry."

Another of the nation's top suppliers, Los Alamitos, Calif.-based Frieda's Inc., imports its organics from New Zealand, Mexico, Canada, Chile, Peru and Guatemala. "We import products from dozens of countries around the world," says President Karen Caplan. "We are thrilled when growers contact us and can certify that their product is grown organically because we know American retailers are always looking for organics on a year-round basis."

Although many industry insiders are confident organic globalization is on its way, there's also a fairly uniform consensus that it's not just around the corner. "There is a fairly substantial vegetable market in Latin America and Mexico, and some air-freight pallets of high-value items like asparagus, but overall there's still a real infrastructure immaturity that can't be overcome soon," explains Bob Scowcroft, executive director of the Organic Farming Research Foundation in Santa Cruz, Calif. "The global system is set up for massive shipping and air freight around the world, but that infrastructure is littered with pest embargoes and other obstacles that make organic use of the existing system impossible."

Still, the organic trade has surmounted plenty of difficult obstacles in the past decade or two, and the ever-strengthening support for regional organic agriculture, along with the U. S. National Organic Program implementation, has raised awareness of—and demand for—organic products in general. No one doubts there is profit to be made in organics, for domestic and foreign companies alike. In short, all signs show the market right now is easily absorbing the current supply and is poised to absorb much more. Many nations are steadily working toward harmonizing their individual organic standards to facilitate fair and unhindered trade. "The direction," says QAI's Smillie, "is obvious. The reality is just a matter of time."

newhope.com



To: JeffA who wrote (103292)5/6/2005 4:18:18 PM
From: Grainne  Respond to of 108807
 
Organic Markets Offer U.S. Agriculture Current and Future
Sales Opportunities

by Janise Zygmont

Demand for organic products around the world is at an all-time high. According to the International Trade Centre, a joint effort of the United Nations Conference on Trade and Development and the World Trade Organization, retail sales of organic food by major consumers (the United States, Europe and Japan) totaled $10.5 billion in 1997. Based on expected annual growth rates of 10-30 percent in these countries, retail sales this year are forecast to reach $21.5 billion.

With demand outpacing supply in many categories, the world organic market is in a unique stage of development. U.S. suppliers may find it advantageous to begin now making connections overseas and establishing a presence as part of their long-term marketing strategy.

Global Demand for Organics Grows

Major markets for U.S. organic food currently are the European Union (EU), Japan and Canada. The strongest export categories are grains, beans and ingredients, but demand is growing for fresh and dried fruits, frozen vegetables, nuts, wine, juice, snacks and prepared foods.

Elsewhere in this issue, the retail market potential for organic products in the United Kingdom, France, Germany, Hong Kong and Taiwan are featured. But the typical consumer of organic products is affluent, educated and health-conscious, traits shared by a segment of nearly every country’s population. In many cases, lack of awareness and low availability are limiting factors in the expansion of organic consumption. In time, demand for organic products in these markets will grow.

Looking Beyond the Retail Market

Retailing is not the only marketing channel for organic food. We can expect to see more organic products channeled through food service, airline, hotel and restaurant establishments, especially given the nearly worldwide trends of increased travel and eating out.

For example, in 1997, Swiss Air began serving organic food on all flights leaving Switzerland, and has since expanded the service to London. British Airways provides first-class passengers with organic snacks. A restaurant chain in Japan offers organic meals for children, and in Sweden, McDonalds serves organic milk.

Organic food ingredients are quite important to the manufacturing and processing sectors in many countries. This outlet is expected to continue to expand as consumers seek a range of processed products comparable to conventional lines.

Finally, demand for organic animal feed is growing. Organic animal production has not developed as quickly or extensively as organic crop production, but that is changing. The EU recently implemented organic animal production standards. Codex Alimentarius will continue discussions on international standards.

Competition Heats Up

Spin a globe and stop it with your finger. Chances are there is organic production happening wherever you land, reflecting the sharp upward trend in world production. What is fueling the boost in production? Foremost is the strong consumer demand already discussed. Concerns about the environment, personal health, animal welfare and use of genetic engineering, among others, have created a niche market for organic products that is growing faster than just about any other sector of agriculture and food retailing.

Producers are turning to organics because of concerns about the environment and their own long-term viability. Generous price premiums create an incentive for conventional producers to convert to organic production methods.

Another contributing factor is the movement of international certifiers and consultants from the United States and Europe into Latin America, Asia and Africa. This is stimulating production of many tropical commodities, such as coffee, cocoa, fruits and spices, that are in demand in Europe and North America but that cannot be grown there.

Finally, government policies, particularly in Europe, aim to stimulate the organic sector through subsidies, production goals, consumer education and support in the form of research, education and marketing.

Examples of Production Growth

Following are just a few examples of how some countries are actively pursuing organics in their export strategy.

Argentina: About 85 percent of the output from Argentina’s active organic production sector is exported, mainly to Europe, with smaller amounts going to the United States and Japan. Organic production has been expanding by 25 percent annually for the last few years and is currently at $20 million. Rich in natural resources, Argentina grows a wide range of organic commodities such as grains, oilseeds, vegetables, pulses, fruits, livestock and more on land that traditionally has been farmed with minimal use of agro-chemicals.

Israel: The majority of Israel’s organic horticultural production is exported to Europe. The focus is on fresh produce including cherry and other tomatoes, potatoes, peppers, carrots, cucumbers, avocados, and white and red grapefruit. To avoid competing with European production directly, Israel has created a niche in Europe’s specialty and off-season markets.

Mexico: Organic production in Mexico is on the upswing. From 1996 to 1998, area devoted to organics increased 140 percent from 23,000 hectares (56,800 acres) to 55,000 hectares (135,900 acres). Mexico produces a diversity of crops: coffee, tomatoes, hot peppers, cucumbers, onions, garlic, peas, melons, squash, eggplant, apples, sesame, beans, chickpeas, blue corn, peanuts, vanilla, pineapples, herbs, avocados and more. Most of Mexico’s organic output is destined for the export market, primarily the United States.

Future Outlook

Industry observers expect demand for organic products and commodities around the world to grow for several reasons. First, core support for organics is strongest among affluent, educated, health-conscious consumers. The motivations that first drew them to organics, such as concern for the environment and their personal health, are likely to endure.

Second, today’s time-pressed organic product consumers want convenience and variety. Mainstream retailers who want to meet consumers’ preference for one-stop shopping will require a steady and reliable supply of organic products.

Finally, no country can become entirely self-sufficient from an organic viewpoint. Organics encompasses the entire spectrum of agricultural products, so trade will continue to flourish.

U.S. Suppliers–Reasons for Optimism

A recent study by USDA’s Economic Research Service reveals a vibrant, diverse and growing organic production sector in the United States today. The study indicates that certified organic crop land more than doubled during the 1990s and that some organic livestock sectors–eggs and dairy–grew at an even faster rate. The United States has a reputation as a reliable supplier of quality conventional products, and there is no reason to expect that the organic sector cannot do the same.

The United States is a recognized leader in creating new, innovative organic processed products, many of which have found success with customers overseas.

Finally, with the release in March of the new proposed organic standards, the United States is poised to offer consumers organic food, fiber and feed that has been grown and handled under the most rigorous standards in the world. 



The author is an agricultural economist with FAS’ Horticultural and Tropical Products Division. Tel.: (202) 720-1176; Fax: (202) 720-3799. E-mail: zygmont@fas.usda.gov



fas.usda.gov



To: JeffA who wrote (103292)5/6/2005 4:32:27 PM
From: Grainne  Respond to of 108807
 
Look at this--organic farming in North Carolina!

Center for Environmental Farming Systems-North Carolina State University

Organic production represents the largest growth segment nationwide in agriculture today. The organic industry is worth $6 billion (2000), and has grown at a rate of 24% per year for the last eight years. Consumer demand for organic food has increased the need for more research and education in this area. In 1994 the Center for Environmental Farming Systems was established at the North Carolina Department of Agriculture Cherry Farm near Goldsboro. This unique Center is a partnership among North Carolina State University, North Carolina Agriculture and Technical State University, North Carolina Department of Agriculture and Consumer Services, non-governmental organizations, and other state and federal agencies, farmers and citizens.

In 1998, the Organic Unit (OU) at CEFS had nearly 100 certified organic acres dedicated to research and demonstration projects. Because of flooding due to Hurricanes Fran and Floyd, the Organic Unit was moved to higher ground in 1999, and the certification process initiated again. With approximately 80 acres to be certified organic land, the Center for Environmental Farming Systems is one of the largest research/demonstration sites affiliated with a land-grant University in the country. The site is used for research, demonstrations, and education, and serves as a focal point for student and extension agent training. The Organic Systems Unit hosts annual Field Days for farmers and other agricultural professionals.

Demand by organic retailers is outstripping North Carolina production of organic products. Organic produce sales are among the fastest growth sector in the NC retail food industry. Currently NC imports more than 90% of the organic products it sells; even though many of these products can be grown in North Carolina. Fortunately, according to a recent survey, buyers are committed to buying local produce when it is available. Recent release of the proposed federal organic standards and USDA’s approval for certification of livestock will increase the demand for organically grown products including organic feeds for livestock.

Organic farming has been shown to be profitable, and in some studies returns to the farm are higher than those to "conventional" even without the price premiums. Currently premiums are available for most commodities (organic corn sold for $5.20 per bushel in 1999; organic soybeans sold for $11-22 per bushel depending on variety).

High value organic crops can help keep some farming enterprises viable. As commodity programs are eliminated, more farmers will discover that organic production is a legitimate and economically viable alternative enterprise. Because of the high profitability, organic farming can be profitable on small acreages. With high returns and lower land and capital requirements, young people interested in farming as an occupation face far fewer barriers to entering the business. In fact, it is one of the few ways new growers without an inherited land or equipment base can enter agriculture.

virtualfarmersmarket.com



To: JeffA who wrote (103292)5/8/2005 3:29:34 PM
From: Grainne  Respond to of 108807
 
Look Jeff! Here is yet another way in which the world is moving in my organic, less animal cruelty way. Borrowed from another thread, this article shows how factory farming is not meeting the demands of people, and how at least one state is thinking of a way to meet their needs:

Message 21302273

To: kholt who wrote (112881) 5/7/2005 10:44:43 AM
From: kholt Read Replies (1) of 113026

S. Dakota Is Bullish on Idea Of Carving Luxury Beef Niche
Officials Hope to Improve Declining Rural Economy

By Blaine Harden
Washington Post Staff Writer
Saturday, May 7, 2005; A01

WINNER, S.D. -- Across the Great Plains, the story is as familiar and as mournful as the unremitting prairie wind. Rural schools are closing, small towns are dying and young people are in ruinously short supply, having run off to cities rather than stay home to take over daddy's cow farm.

South Dakota is trying to give this story a happier ending. This spring the legislature passed and the governor signed a first-in-the-nation law that catapults the state into the luxury beef business.

The goal is to reinvent South Dakota beef as a gourmet foodstuff for upscale, socially conscious meat lovers. In effect, the state intends to drive a steak -- a homegrown, environmentally correct, premium-priced steak -- through the heart of its demographic decline. If all goes according to plan, increased profits from the steaks will stay home on the farm -- and so will more of the kids.

In return, South Dakota is promising something that, so far, at least, no other cow-raising state is willing to match. Enlisting its police and administrative authority, the state guarantees consumers who buy South Dakota Certified Beef that they will be partaking of a computer-tracked cow that was born, fed and butchered inside state borders, using exacting standards of nutrition, with a humane upbringing and walled off from all possible contact with mad cow disease.

After a consumer takes home the beef, he or she can use the Internet to find a photograph of the South Dakota family ranch where it came from. And if a rancher or a butcher cheats in caring for cows under the new rules, the state is ready and willing to charge him with a felony and send him to prison for two years.

"If they lie to us, there is a hammer," said Gov. Mike Rounds (R), the idea man behind the beef law and its chief cheerleader. "We want to give consumers one of the finest dining experiences of their lives. After the eating is over, we want our beef to be a subject of discussion for the evening."

As a state, South Dakota is attempting to steer the main engine of its farm-dominated economy -- livestock -- into a small but rapidly growing specialty market for costly food that has a consumer-friendly story behind it.

Many thousands of private beef, pork and poultry producers across the United States have already made this niche market move. Iowa pork producers raise free-range hogs. Chickens in Virginia have been sprung from cramped quarters to peck around on pastures. They are part of a grass-roots revolt in farm country against the shackles of the commodity system, with its demand for cheap raw materials and its insistence on low-cost labor.

There is a growing consensus among agriculture experts that the commodity system is a principal culprit in the decades-long decline of the small family farms and the depopulation of rural areas. Those experts say that a partial cure for what ails the family farm is a shift from undifferentiated commodities to high-quality, high-value food products that give farmers and ranchers a profitable piece of processing and marketing.

"Places like South Dakota have been part of a classic colonial economy," said Fred Kirschenmann, director of the Leopold Center for Sustainable Agriculture at Iowa State University. "They export cheap raw materials and import expensive processed goods. The critical problem in these rural communities is not just adding value to farm goods, but retaining that value."

Kirschenmann said that South Dakota is the first state in the country to use its lawmaking powers to underwrite and enforce a marketing story designed to capture the value of high-end beef. That story, he says, may also capture the consumer's imagination.

"The felony thing puts teeth in it," he said. "I am not aware of any other state that has gone to that extent."

Passing a toothsome state law, though, is a far cry from creating a profitable national market, according to Allen Williams, a livestock marketing consultant with the Jacob Alliance, a Mississippi company that advises beef producers on niche marketing.

"Can South Dakota make a viable branded product? Probably. But they have got a mountain to climb," Williams said. "You are talking about a business proposition -- you can't legislate a viable business."

Here in Winner, a ranching community in the south-central part of the state, Mike Levi expects in June to sell the first batch of cows into the certified beef program.

He has waited 11 years -- since he started using a computer to track each of the 1,100 or so cows on the ranch he runs here with his father-in-law, Virgil Novotny -- to find a way of breaking free from commodity buyers who haul his cattle out of state for slaughter.

"I've been doing all the work that should differentiate me from everybody else, but I have had to sell to these buyers who are not willing to pay more," he said.

If his farm were to receive more money per cow -- and state Secretary of Agriculture Larry E. Gabriel said the premium for certified beef could be as much as an extra $20 per head -- it would enable Levi and his father-in-law to increase ranch hands' salaries by about $20,000 a year. Consumers can expect to pay about 75 cents more per pound for steaks, local meatpackers said.

As a rancher, Virgil Novotny has seen two of his grandsons grow up on the ranch, become expert in handling cattle and then leave for college. As a longtime county commissioner in Tripp County, he has seen the county empty out, with a 30 percent population loss since 1960.

"If we could pay these boys $50,000 or $60,000 a year to work on our ranches, some of them would come back," he said.

There is, though, a significant sticking point in the state's scheme to create a lucrative niche market for the 1.8 million cows that are sent to slaughter each year from South Dakota.

For the moment, at least, state meatpackers do not have to the capacity to slaughter much more than 15 percent of those cows, said Don Ward, owner of Bad River Pack in Pierre, S.D.

This, too, seems a colonial legacy of the commodity beef system. Like rural schools and small towns, packing plants across South Dakota have been going belly up for decades, as ranchers ship three-quarters of the state's cows to giant feedlots and processing plants in Kansas and Nebraska.

Reversing this trend will take time and will require state-sponsored small-business loans, which Rounds says will be made available.

In the meantime, South Dakota has no choice but to think small. No more than 50,000 cows will be slaughtered this year as certified beef, state officials say. They predict that for a least a year none of that beef is likely to be sold outside the state, except by mail order.

When the certified beef program does get up and running, a nagging question seems certain to remain: Is South Dakota Certified Beef tasty enough to deserve a premium price over steaks from any other state?

The answer, based on interviews with several out-of-state beef experts who have no financial interest in the success of South Dakota's program, is a definite maybe.

South Dakota already has a solid reputation among beef-industry insiders, according to Steve Suther, director of industry information for Certified Angus Beef, a Kansas-based nonprofit group that oversees the largest and most successful premium brand of beef in the country.

"It takes a lot of time and lot of legwork, but I think what they are doing has sound science behind it," Suther said. "All indications are that the beef from South Dakota is already above average."
© 2005 The Washington Post Company