Organic Markets 2007 Southern Outlook Conference Atlanta, Georgia

2006 sales are estimated at $16.7 million. Annual growth rate – 20.7% Market penetration – 2.79% * Forecasted. SOURCE: Organic Trade Association.

Organic Products  Organic Food Channel Distribution:  47% natural food chains (health foods, natural grocery),  46% mass-market channels (super-markets, grocery stores, mass merchants, etc.),  7% other (includes farmers markets, food service and other non retail-store sales).  Fruit and vegetables account for the largest portion of total organic food sales, but dairy and meat products are the fastest growing product categories.

 “Organic” means many things to consumers representing everything from quality, health, locally grown,  73% of Americans use organics at least occasionally, up from 55% in  43% of surveyed respondents have no idea what the USDA Organic Seal indicates when placed on a product.  Price is the biggest barrier to market growth. Source: Organic 2006: Consumer Attitudes & Behavior, Five Years Later & Into the Future. The Hartman Group, Inc.

Useful Web Sites  USDA National Organic Program  Organic Materials Review Institute  Organic Trade Association   USDA Economic Research Service

What is “Organic”?

Four Categories of Organic Labels % Organic 2. Organic (95%-100% organic) “Other products cannot carry the USDA seal” 3. Made with organic (70%-95% organic ingredients) 4. Less than 70% organic ingredients

Organic Products  Only “100 percent organic” and “Organic” can use the USDA organic Seal,  A civil penalty of up to $10,000 per violation can be levied on any person who knowingly sells or labels as organic a product that is not produced and handled in accordance with the regulation.

Organic Production  From 1992 to 2001, the number of organic farming operations has almost doubled, reaching almost 7000 operations,  From 1997 through 2001, the number of certified organic acres in the U.S. has increased by almost 1 million acres growing from to 2.343,