TRENDS in CALIFORNIA ORGANIC AGRICULTURE Karen Klonsky Dept. of Ag. & Resource Economics University of California, Davis

$555 BILLION US FOOD MARKET in 2003 1.9% organic food 98.2% non organic Source: Nutrition Business Journal

US RETAIL SALES OF ORGANIC FOOD $10.4 Billion in 2003 Source: Organic Trade Association’s 2004 Manufacturer Survey

US RETAIL SALES OF ORGANIC FOOD Per Cent Growth in 2003 Source: Organic Trade Association’s 2004 Manufacturer Survey

US ORGANIC FRUIT and VEGETABLES $4.3 billion in retail sales - 2003 Source: Organic Trade Association’s 2004 Manufacturer Survey

US ORGANIC FRUIT and VEGETABLES PENETRATION 1997 - 2003 Source: Organic Trade Association’s 2004 Manufacturer Survey

US CERTIFIED ORGANIC ACREAGE by CATEGORY, 2003 Source: Economic Research Service, USDA

CA PERCENTAGE of US CERTIFIED ORGANIC ACREAGE, 2001 CA 163,158 acres, US 2,343,924 acres Source: Economic Research Service, USDA

US CERTIFIED ORGANIC VEGETABLE ACREAGE by STATE, 2003 78,905 Source: Economic Research Service, USDA

ACRES OF CA ORGANIC COMMODITIES 2003 – 172,233 ACRES Source: CDFA Organic Program

SALES OF ORGANIC COMMODITIES 2003 SALES - $330 MILLION Source: CDFA Organic Program

PER CENT CASH INCOME by COMMODITY GROUP, CA 2003 % of all CA sales % of CA organic sales Organic as % of CA Field crops 9% 5% .6% Fruit and nut crops 27 35 1.5 Nursery, greenhouse & floriculture 11 2 .3 Vegetable crops 24 46 2.2 Livestock, poultry, and products 12 .6

NUMBER OF CA ORGANIC GROWERS 2003 – 1,765 GROWERS* * Excludes registered growers reporting no sales Source: CDFA Organic Program

INDEX NUMBERS of GROWTH in CA ORGANIC AG, 1992 - 2003

SALES of TOP 10 ORGANIC COMMODITIES, CA 2003 Rank Commodity Sales $ million % of organic % of CA total 1 Lettuces $41 11.7% 2% 2 Grapes 26 7.4 3 Dairy 23 6.8 .5 4 Carrots 19 5.4 5 Strawberry 18 5.1 6 Tomato - all 11 3.3 7 Chicken (meat) 8 Spinach 3.1 9 Rice 2.6 10 Almond 1.9 .4

ACRES OF CA ORGANIC COMMODITIES 2003 – 172,233 ACRES Source: CDFA Organic Program

CA ORGANIC GROWERS 2003 – 1,765 Source: CDFA Organic Program

CA ORGANIC SALES 2003 – $330 MILLION Source: CDFA Organic Program

ORGANIC VEGETABLE CROPS CA 2003 Number % of CA Veggies % of Organic Acres 44,500 2.3 26% Growers 521 2.2* 23% Sales $155 million 2.2 47% * Organic as percentage of all CA farms, not just vegetables

INCOME CONCENTRATION in CA ORGANIC AG, 2003

OVERALL TRENDS Organic sales in CA are growing at double digit rates without an increase in the number of growers. Vegetable crops and fruits dominate. Livestock and poultry sales are now growing at a faster rate than produce. The National Organic Rule does not seem to have had a negative impact on CA.