An organic first

Caren Wilcox, executive director of the Organic Trade Association testified before the House Ag Committee's horticulture and organic agriculture subcommittee on Wednesday. Her presentation is published here.

Here are a few excerpts:

We believe that this is the first informational hearing on organic issues ever conducted by a Congressional committee. Thank you.

TK: First? It won't be the last....

The U.S. organic industry grew 17 percent overall to reach $14.6 billion in retail sales in 2005, according to The Organic Trade Association’s 2006 Manufacturer Survey. Organic foods grew 16.2 percent in 2005 and accounted for $13.8 billion in sales. Organic foods’ share of total retail food sales is up to 2.5 percent. The fastest growing food categories and their rates of growth over the previous year are organic meat (55.4 percent – from a very small sales base), organic sauces and condiments (24.2 percent) and dairy products (23.5 percent). The fastest-growing non-food categories are organic flowers (50 percent), pet food (46 percent), and fiber (44 percent).
Large natural food chains, along with small natural food chains or independent natural groceries and health food stores, represented about 47 percent of organic food sales.

TK Take a bow, Whole Foods and Wild Oats....


Organic is driving demand for raw materials. In the OTA survey, fifty-two percent of respondents reported that a lack of dependable supply of organic raw materials has restricted their company from generating more sales of organic products. This highlights the need for additional measures to increase the supply of organic ingredients, and the opportunities for U.S. farmers to supply those needs.

TK: Wow. 52% say their business has been limited by a shortage of product...


Almost three-quarters (73 percent) of the U.S. population buy organic products at least occasionally, up from 55 percent in 2000, according to The Hartman Group. Core buyers, who buy organic products at least weekly, represent 23 percent of U.S. consumers, according to the report, Organic2006: Consumer Attitudes & Behavior, Five Years Later & Into the Future.
Meanwhile, The Natural Marketing Institute’s (NMI’s) 2005 Health and Wellness Trends study estimated 56 percent of consumers use organic products in varying frequencies across six product categories. Household penetration by category is as follows: fresh fruits and vegetables = 44%; packaged foods = 29%; dairy and milk = 24%; personal care = 21%; beverages (excluding milk) = 20%; and clothing/linens = 7%.
Shoppers who chose organic products cross all demographic, geographic, and economic boundaries. There is no typical organic consumer anymore.

TK: That's quite a statement - "there is no typical organic consumer." She later notes, however that those most devoted to organic consumption have a high concern for personal and planetary health, and they like their food local or from sustainable farms.

Wilcox notes that consumers get introduced to organics through fruits and vegetables and then expand organic purchases from there. A "gateway" food, if you will. She also notes statistics highlighting that demand for organic food is growing faster than production, which is fueling big growth in imports.

There is a ton of valuable data in her testimony, and members of Congress are taking note. Like specialty crops, organic agriculture now has a "seat at the table" in farm policy talk.