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Organic Markets

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:

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Organic Markets

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  1. Organic Markets 2007 Southern Outlook Conference Atlanta, Georgia

  2. 2006 sales are estimated at $16.7 million. • Annual growth rate – 20.7% • Market penetration – 2.79% * Forecasted. SOURCE: Organic Trade Association.

  3. 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.

  4. “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 2000. • 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.

  5. http://www.ams.usda.gov/nop

  6. Useful Web Sites • USDA National Organic Program http://www.ams.usda.gov/nop/index.htm • Organic Materials Review Institute www.omri.org • Organic Trade Association • www.ota.com • USDA Economic Research Service http://www.ers.usda.gov/data/organic/

  7. What is “Organic”?

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

  9. 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.

  10. 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 1.346 to 2.343,

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