As organic sales soar, producers plan expansion

September 18th, 2015

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Category: Grains

Food Safety(Farm Futures) – Organic producers are selling more products, according to the results of a USDA National Ag Statistics Service Organic Survey, which shows that certified and exempt organic farms in the United States sold a total of $5.5 billion in organic products in 2014, up 72% since 2008.

Organic producers also are interested in boosting output. The survey found approximately 5,300 organic producers (39%) planning to increase production over the next five years.

Another 688 farms with no current organic production are in the process of transitioning into organic agriculture production.

“Producers reported in the 2014 Organic Survey that they expect to expand U.S. organic production in the coming years, making the data even more important for policy and programs. These results will assist with the development of appropriate risk management programs designed to help organic producers,” said NASS Administrator Joseph T. Reilly. “The report also shows that organic producers are providing a wide variety of products to customers and are getting those items from farm to table more efficiently.”

The survey also reviewed top states for organic sales value, finding California leading the way with $2.2 billion.

The top 10 states in sales accounted for 78% of U.S. organic sales in 2014.

On selection, organic products ranged from dairy and proteins to fruits, vegetables and grains.

The top five commodities in organic sales were: Milk, $1.08 billion; eggs, $420 million; broiler chickens, $372 million; lettuce, $264 million; and apples, $250 million.

The vast majority of organic agricultural products sold in 2014 were sold close to the farm. According to the report, the first point of sale for 80% of all U.S. organic products was less than 500 miles from the farm, compared to 74% in 2008.

Of the sales of organic products in 2014: 46% were sold within 100 miles; 34% were sold 101-499 miles; 18% were sold 500 or more miles; and 2% were sold internationally.

Additionally, 63% of U.S. organic farms reported selling products to wholesale markets. These sales accounted for 78% of U.S. organic farm sales.

Wholesale markets, such as buyers for supermarkets, processors, distributors, packers and cooperatives, were serving as the marketing channel of choice for U.S. organic farmers to get organic agriculture products to customers.

“This report helps show a more complete picture of the U.S. organic industry at the national and state levels,” added Reilly. “The 2014 Organic Survey data will serve as a valuable resource as the agriculture industry continues to look for ways to meet agricultural challenges and consumer needs in the 21st century.”

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