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Organic Production and Horticulture AEC 317 Fall 2012
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Organic Produce Markets Initially grass roots program Movement toward commercialization led to state-by-state certification Flexible to growing region But variable standards across states Cap on market scale Push by national and regional retailers for universal standards 2002 USDA National Organic Standards adopted
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http://www.ams.usda.gov/AMSv1.0/nop Inputs and practices governed by National Organic Standards Board Limits pesticides, fertilizers, no genetically engineered products Third party certification and enforcement Unlawful to wrongfully use term “organic” without certification
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Organic Produce Broader interest in organic food 20% annual growth for last 10 years $6.1 B in 2000 $14 B 2005 $21 B 2008 $24.8 B in 2009 $26.7 B in 2010 $29.2 B in 2011 Organic food sales channels (08/10): 47%/54% Conventional Supermarkets 44%/40% Natural Food Stores 9%/6% Direct Marketed Sources: Dimitri & Greene, 2002; USDA ERS-Oberholtzer, Dimitri & Greene, 2005; Organic Trade Assoc., 2004; Tondel & Woods, 2006; Greene et al 2009; Greene at al, 2010, Food Facts – Organic Trade Assoc. June, 2010.
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In 2010, U.S. surpassed the European Union as the largest market for organic products in the world. Organic food and beverages represents 4.2% of all U.S. food and beverage sales (2011)
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Organic trends Fresh produce accounts for 42%/38% of all organic food sales - - about 12% of all produce sales in U.S. are organic. 1/3 of organic produce sold under contract Trend towards larger growers & direct to retailer sales Still tiny in KY: 111 farms (all products)
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Organic Trade Association Organic Trade Association http://www.ota.com/ USDA Programs in Organic/Sustainable Ag Sustainable Ag Research and Education
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Some of the Issues 1. International growth and marketing of organic – what are the standards?:Equivalency agreements 2. Expansion of GMO production:Industry pushes for mandatory GMO labeling 3. Scale production economies lower costs, but also premiums 4. Growth in other eco-labelsother eco-labels
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