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Organic sector increasingly dependent on imports: USDA
By Caroline Scott-Thomas
04-Jun-2009
The US organic sector has become increasingly dependent on imported ingredients as a supply squeeze continues to limit the sector’s growth, according to a new report from the US Department of Agriculture.
Despite dire predictions for organic sales in the current economic climate, the sector has continued to grow, with US sales up 15.8 percent in 2008, according to a recent study from Lieberman Research Group on behalf of the Organic Trade Association.
But the USDA report, entitled Emerging Issues in the US Organic Industry, said that nearly half of US organic handlers find ingredients in short supply and, in 2004, 13 percent failed to meet market demand for at least one of their products.
“While new producers have emerged to help meet demand, market participants report that a supply squeeze is constraining firm growth and limiting growth in the overall sector,” it said.
Looking elsewhere
Although certified organic acreage has doubled in the US since 1997, organic food sales have quintupled over the same period, from $3.6bn to $21.1bn last year. This has led handlers to look to international markets for supplies – which can often be cheaper due to lower labor and input costs.
In 2007, the USDA certified 27,000 producers or handlers worldwide to the US organic standard; approximately 16,000 in the US and 11,000 in more than 100 foreign countries.
To read the full article: http://www.foodnavigator-usa.com/Financial-Industry/Organic-sector-increasingly-dependent-on-imports-USDA/?c=NAUpDVS3q2rph1MiEk5Dug%3D%3D&utm_source=newsletter_weekly&utm_medium=email&utm_campaign=Newsletter%2BWeekly
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