Consumer Demand For Organics Explodes Whilst Supply Dwindles

[Guest guest]

Interesting stuff .. and is exactly what I've been reading in all my

trade industry news/magazines ...

 

*Smile*

Chris

http://www.alittleolfactory.com

 

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Shortage of Organic Ingredients in the USA Spurring $1.5 Billion in

Imports

 

CONSUMER DEMAND FOR ORGANICS EXPLODE WHILST SUPPLY DWINDLES

 

 

Not enough U.S. farmers are finding it possible to make the transition

to organic production, according to a January 2006 marketing report from

the research firm Organic Monitor in London. Domestic consumers are

buying record amounts of organic foods, but farmers are unable to meet

that demand, resulting in $1.5 billion of organic crops imported into

the U.S. in 2005. This means that 10% of all organic sales in the U.S.

today are imports. In comparison, U.S. organic exports amount to a

meager $150 million. In the European Union, government programs help

conventional farmers make the transition to organic production with

subsidies and technical assistance. In contrast, the majority of U.S.

agricultural subsidies are earmarked for large chemical-intensive and

energy-intensive farms and genetically engineered crops, making it

difficult for family-scale farmers and ranchers to afford the expensive

and difficult three year transition from conventional to organic

production. " Unless more American farmers consider converting to organic

practices, exporters are likely to capitalize on this lucrative market, "

the report said.

<http://www.organicconsumers.org/organic/shortage060326.cfm>

http://www.organicconsumers.org/organic/shortage060326.cfm

 

 

Web Note: Sales of certified organic products in the USA reached $15

billion in 2005, of which $1.5 Billion or 10% were imported. USA organic

exports, on the other hand, totaled $150 million or 1% of sales.

 

Organic Business News Feb. 29, 2006

http://hotlineprinting.com/obn/archives/2006/2006-01/OrganicIngredientSh

ortage.html

 

Ingredient Shortage Hurts US

Shortages of many organic raw ingredients, including dairy, produce and

meat, is stunting growth of the U.S. organic industry, according to a

January 2006 report from research firm Organic Monitor in London.

" Nearly all market sectors would grow at much higher rates if sufficient

supply was available,² the report stated.

 

The shortages are forcing U.S. manufacturers to look overseas for raw

materials. More than $1.5 billion worth of organic products are imported

into the U.S. annually, compared to about $150 million in organics that

are

exported.

 

" Increasing volumes of organic fruit, vegetables, grain, seeds, beans,

and

herbs are being imported into the U.S., " the report stated. Shortage of

organic milk for example, is leading Stonyfield Farm, Londonderry, NH,

to

look at sourcing organic milk powder from New Zealand.

 

" With American demand for organic foods expected to strengthen in the

coming

years, supply shortages are likely to continue, " Organic Monitor said.

That

will ultimately benefit exporters to the U.S. " Unless more American

farmers

consider converting to organic practices, exporters are likely to

capitalize

on this lucrative market, " the report said.