USA: Excellent growth for organics and new Farm Bill

Consumer purchases of organics now account for more than 4% of the US$760bn annual food sales in the USA. The growth rate of organic food sales, which has averaged almost 10% every year since 2010, has dwarfed the average annual growth of just over 3% in total food sales during that same period. Organic food sales in 2013, at US$32.3bn, accounted for roughly 92% of the total organic sales. A product breakdown of the organic food sector shows that the fruit and vegetables category continues to lead the sector with US$11.6bn in sales, up 15%. With more than 10% of the fruit and vegetables sold in the USA now organic, the US$1.5bn in new sales of organic fruit and vegetables represented 46% of the organic food sector’s increase of US$3.3bn. (Picture: organic citrus fruits) 

The relatively small organic condiments category posted the strongest growth, at 17%, to reach sales of US$830m. Also showing double-digit growth were the organic snack food sector, up 15% to US$1.7bn; organic bread and grain sales up 12% to US$3.8bn; organic meat, poultry and fish sales up 11% to US$675m, and the rapidly expanding organic packaged and prepared food sector up 10% to US$4.8bn. Just two categories of the organic food sector showed single-digit growth rates. The US$4.9bn dairy sector grew by 8%, and sales of organic beverages slowed to a 5% growth rate to around US$4bn. (Picture: organic grains in bulk)

Non-food organic products - including flowers, fiber, household products and pet food - are currently a very small part of the total organic market but are making quick in-roads. Sales of non-food organic products, at almost US$2.8bn, have jumped nearly eight-fold since 2002, and have almost doubled in market share. 
 

But as demand for organic continues to boom and accessibility to organic products increases, the industry is facing some critical challenges. Farmland in the USA is not being converted to organic at the pace needed to meet the growing demand for organics. Supplies of organic feed and organic grain have been tight and costly, which could limit growth especially in the organic dairy and meat sectors. There is also lingering confusion among consumers about just what organic means. The message of organic can be lost next to the presence of “natural” products and the long debate around GMOs. (Picture: Health Valley organic soups)

OTA’s Organic Industry Survey was conducted and produced by Nutrition Business Journal. Over 200 companies responded to the survey. The full report is available for purchase here. (Picture: harvest at the Gathering Together Farm)
 
Through the Agricultural Marketing Service's National Organic Program, the US Department of Agriculture (USDA) has helped an additional 763 producers become certified organic in just 2013, an increase of 4.2% from the previous year. The industry today encompasses 18,513 certified organic farms and businesses in the USA, representing a 245% increase since 2002. (Source: USDA).

The 2013 list of certified USDA organic operations shows the increased rate of domestic growth within the industry. "Consumer demand for organic products has grown exponentially over the past decade. With retail sales valued at US$35bn last year, the organic industry represents a tremendous economic opportunity for farmers, ranchers and rural communities," said Agriculture Secretary Tom Vilsack. (Picture USDA / M. Chavez: Tom Vilsack at Lowe's Corner Market, highlighting USDA's efforts to expand access to healthy food and how the 2014 Agricultural Act will expand access to healthy foods, particularly in under-served communities.) 

The Agricultural Act of 2014 is the product of the House-Senate Farm Bill Conference. It is a five-year farm bill that reforms agricultural policy, reduces the deficit, and grows the economy, according to the definition of the House Committee on Agriculture. Organic agriculture has historically been under-represented in Farm Bill programs compared to conventional agriculture. With farm gate revenues of US$3.5bn (about €2.5bn), organic products rank among the top four food and feed categories by dollar value. The main challenge has been to educate members of Congress about organic agriculture and its role in agricultural health in the USA. The Agricultural Act of 2014 includes all of the policy "asks" the OTA and its members made on behalf of the organic sector (see below). Additional information about USDA resources and support for the organic sector is available on the USDA Organics Resource page.