With almost 22 percent annual growth over the last several years, organics have been attaining unprec-edented consumer popularity. While Christine Bushway, executive director of the Organic Trade Association (OTA), expects to see some impact on organics from the downturn of the economy, she sees other market factors as benefitting organic sales.
"The organic consumer is somebody that is committed to all the qualities that organic brings to the marketplace," Bushway said. These consumers are generally seeking products and manufacturers that include a focus on sustain-ability; reducing their impact on the planet; and care and well-being of farm animals.
This commitment and steadfastness does, however, show some variation by category. Bushway recently met with three of the largest organic fruit and vegetable companies in the U.S. "They really aren’t seeing any change in their sales," she said, adding that this is probably because, "fruits and vegetables are the entrée into organics for most consumers. That’s where they start to buy organic."
In addition, Bushway said, there is some shift taking place within the or-
ganic market, with chain stores beginning to offer their own organic produce at a lower price point than that of the name brands. As a result, she said, "We are seeing a consumer shift over to these less expensive, unbranded types of or-ganic products."
Despite the economy, though, Bushway expects positive effects on the organic market from consumers’ growing concern toward food safety and the new administration’s food safety focus and propensity for organic products.
President Obama is making food safety a key component of his administration, and many members of Congress are "jumping on that bandwagon," Bushway said. "We know that, in this administration, food safety is going to take on a much more heightened visibility. It’s a huge issue."
This augurs a stable market for organics, which can be considered to be among the safest of foods because of the strict regulations and requirements for traceability to which they are held accountable. "Anything that is certified organic is the most regulated product in the marketplace," Bushway said. "It’s a very rigorous process" both to attain and maintain certification.
In addition, Bushway said, "We know the President drinks organic tea — one of our members supplies that tea." The first family is also planting an organic garden at the White House and supports sustainability initiatives. "We see all this as favorable to our industry," she said.
In fact, for an April Policy Conference in Washington D.C., OTA set its tagline as "Change is in the Air." While this change is being strongly driven by consumers and the administration, it is being fed by OTA as well.
The association has been in existence for 25 years; but has never before marketed itself to consumers, Bushway said. Until now. With its sister organization, the Organic Agriculture and Products Education Institute (OAPEI), OTA is launching its first marketing and public relations campaign.
Including programs entitled "Organic: It’s worth it" and "Taste the Change. How to Go Organic on Campus," the goal of OAPEI is to inform, educate and train professionals, students and consumers on organics "to increase the amount of farmland under organic production and the number of people choosing organic products."
OTA expects to reach 25 million consumers in 2009 through these Web-based campaigns and alleviate some confusion that it knows consumers have about organic products. Through such initiatives and impacts of the current environment, Bushway sees the organic marketplace as continuing to evolve and grow.
"Everyone has to be mindful of [the economy] and where consumers are going with their dollars, but we have a committed core group of consumers," which OTA is working to expand by "focusing on the next generation of consumers."
The author is managing editor of QA magazine. She can be reached at llupo@giemedia.com.
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Milestones in the History of Organic Foods
1973 |
California Certified Organic Farmers (CCOF) is founded, the first to certify organic farms in North America. |
1979 |
The California Organic Food Act of 1979 is passed. |
1983 |
Austria is the first country to set official guidelines for organic farming. |
1984 |
Organic Trade Association (OTA) is founded. |
1987 |
CCOF publishes its Certification Handbook and Materials List, the first Farm Inspection Manual, and the first series of Farm Inspector Trainings. |
1988 |
Washington is the first state to develop organic standards and a certification program. |
1988 |
USDA’s Sustainable Agriculture Research and Education program is established. |
1990 |
Congress passes the Organic Foods Production Act, requiring USDA to set standards and regulations. |
1991 |
The European Union adopts organic regulations. |
1992 |
Japan issues voluntary organic labeling guidelines. |
1994 |
CCOF creates organic processor standards and adds a dedicated Processor/Handler CCOF Chapter. |
1997 |
USDA releases the first proposed National Organic Program (NOP) receiving a record 275,000 comments, primarily opposing genetic engineering, irradiation and sewage sludge in organic production. |
1997 |
CCOF helps launch the Organic Materials Review Institute (OMRI) , now the primary organic materials review clearinghouse for the nation. |
1998 |
Iowa passes the Organic Agricultural Products Act, mandating an organic certification program. |
1999 |
Japan begins to develop a national standard for organic production; Canada announces a voluntary national organic standard; and Codex Alimentarius approves international guidelines for the production, processing, labeling and marketing of organic foods. |
1999 |
USDA begins a voluntary, fee-based ISO-65 program for U.S. state and private or-ganic certifiers. |
1999 |
Minnesota passes the Organic Agriculture Promotion and Education Act — the first to authorize an organic certification cost-share program. |
1999 |
USDA permits certain meat and poultry products to carry the label "certified organic." |
2000 |
USDA releases the second proposed NOP. The Secretary of Agriculture announces initiatives to stimulate the organic sector including research, pilot projects on crop in-surance and marketing orders, and market-news reporting for fruits and vegetables. |
2003 |
California passes the California Organic Products Act (COPA). Food must contain at least 70% organic ingredients to be sold as "organic" in California. |
(Compiled from CCOF and USDA/NOP fact sheets.) |
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