Discussion:
US Consumer Demand For Organic Foods Soaring
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PeterB
2005-05-13 02:03:08 UTC
Permalink
US Consumer Demand For Organic Foods Soaring
By Rick Callahan
Associated Press Writer
5-10-5

ZIONSVILLE, Ind. - Dairy cows munch lazily on a grassy hilltop
overlooking Traders Point Creamery as 23-year-old Marc Murnane strides
into the organic creamery's store in search of chocolate milk - lots of
it.

In short order, he loads 12 one-quart bottles, at $3.50 each, into a
box bound for Chicago, where his girlfriend's father is among the
growing number of Americans who've developed a taste for organic foods.


"He just loves the chocolate milk - and it really is the best stuff
I've ever had," Murnane says, describing the rich blend of sweet milk
from grass-fed cows, organic sugar and cocoa.

The farm northwest of Indianapolis is part of a nationwide move to put
organic foods in consumers' reach.

Nationwide, the market for organic foods has soared from $3.57 billion
in 1997 to $10.38 billion in 2003, according to Organic Trade
Association. The group predicts sales will reach $14.5 billion by the
end of 2005 as Americans buy everything from radishes to beef grown
without conventional pesticides and fertilizers, biotechnology,
antibiotics or growth hormones.

Indiana was late to join the organic food movement, which arose in the
1960s in response to modern chemical farming, but the state is starting
to make up lost ground, said Cissy Bowman, executive director of
Indiana Certified Organic, LLC.

As the state's only government-approved organic certifier, she has
given the stamp of approval to more than 50 Hoosier organic farms and
expects that to double this year.

Herself an organic farmer, Bowman said the organic market has undergone
incredible growth since she began raising organic vegetables 20 years
ago on six acres near the Hendricks County town of Clayton.

"Any food you can think of, you can buy an organic version now. It's
not just that bag of whole wheat flour on the store shelf anymore," she
said.

Traders Point Creamery delivers to about 70 area stores, with weekly
shipments to Chicago-area stores, but demand often outpaces supply,
particularly during the winter and summer.

"The cows can't keep up. We sell pretty much everything we produce,"
said David Robb, the creamery's manager of business development.

Cathy Greene, an agricultural economist with the U.S. Department of
Agriculture's Economic Research Service, said the retail market for
organic foods continues to grow about 20 percent each year.

Most people buy organic out of health concerns, she said. Some want to
support environmentally friendly farms, but for others, it's a quest
for food with superior taste and nutrition.

"Whether the food tastes better or not is kind of subjective, but
whether it's more nutritious(1) is something researchers are just
starting to study," Greene said.

According to the USDA, certified organic cropland in the United States
grew nearly 75 percent between 1997 and 2001, the last year for which
figures are available, and accounted for more than 2.3 million acres in
2001.

The USDA found an estimated 4,175 acres of certified organic cropland
in Indiana in 2001, but Bowman said the 54 organic farms she's
certified in the state account for only about 2,370 acres.

Barbara Haumann, a senior writer with the Organic Trade Association,
said there is no clear gauge of the nation's organic agriculture
industry. "The numbers are quite hazy," she said. "The government just
needs to do some better tracking."

Although organic foods can cost two to three times more than their
conventionally raised alternatives, Corinne Alexander, a Purdue
University assistant professor of agricultural economics, said people,
herself included, are willing to pay.

"I like the idea that right now the organic farmers are being rewarded
with premium prices for their hard work. It's really backbreaking
work," she said.

Traders Point Creamery's 140 acres of pastures are planted with a mix
of grasses and meadow plants that make its milk superior to that
produced by grain-fed cows, said Robb.

The pastures are enriched with natural compost and by tilling under
cover crops. The nutrient-rich droppings from the 60 Brown Swiss dairy
cows also help green the fields, he said.

The fields thrive, Robb said, because they work in concert with nature.
"The soil is really a living entity, and chemicals kill all the good
things in the soil when what we really need to be doing is stimulating
those," he said.

-end-
----------
[1] See Nutritional Quality of Organic Versus Conventional Fruits,
Vegetables, and Grains, published in The Journal of Alternative and
Complimentary Medicine, Vol. 7, No. 2, 2001, 161-173. V. Worthington,
2001. Nutrient levels in both organic and conventionally-grown foods
were evaluated by reviewing data from 41 comparative studies on crops
produced with organic matter and inorganic fertilisers. The study
showed that organic crops yield higher average levels of some 21
nutrients analysed. The results were most statistically significant for
Vitamin C (27% more), magnesium (29%), iron (21%) and phosphorus (14%).
Joel M. Eichen
2005-05-13 12:21:16 UTC
Permalink
This is such a tough one ......

Yes, food is extremely cheap in the US mainly
due to mechanization and addition of chemicals.

Are people willing to pay the price for mass-organic food?

Who knows?


Joel
Post by PeterB
US Consumer Demand For Organic Foods Soaring
By Rick Callahan
Associated Press Writer
5-10-5
ZIONSVILLE, Ind. - Dairy cows munch lazily on a grassy hilltop
overlooking Traders Point Creamery as 23-year-old Marc Murnane strides
into the organic creamery's store in search of chocolate milk - lots of
it.
In short order, he loads 12 one-quart bottles, at $3.50 each, into a
box bound for Chicago, where his girlfriend's father is among the
growing number of Americans who've developed a taste for organic foods.
"He just loves the chocolate milk - and it really is the best stuff
I've ever had," Murnane says, describing the rich blend of sweet milk
from grass-fed cows, organic sugar and cocoa.
The farm northwest of Indianapolis is part of a nationwide move to put
organic foods in consumers' reach.
Nationwide, the market for organic foods has soared from $3.57 billion
in 1997 to $10.38 billion in 2003, according to Organic Trade
Association. The group predicts sales will reach $14.5 billion by the
end of 2005 as Americans buy everything from radishes to beef grown
without conventional pesticides and fertilizers, biotechnology,
antibiotics or growth hormones.
Indiana was late to join the organic food movement, which arose in the
1960s in response to modern chemical farming, but the state is starting
to make up lost ground, said Cissy Bowman, executive director of
Indiana Certified Organic, LLC.
As the state's only government-approved organic certifier, she has
given the stamp of approval to more than 50 Hoosier organic farms and
expects that to double this year.
Herself an organic farmer, Bowman said the organic market has undergone
incredible growth since she began raising organic vegetables 20 years
ago on six acres near the Hendricks County town of Clayton.
"Any food you can think of, you can buy an organic version now. It's
not just that bag of whole wheat flour on the store shelf anymore," she
said.
Traders Point Creamery delivers to about 70 area stores, with weekly
shipments to Chicago-area stores, but demand often outpaces supply,
particularly during the winter and summer.
"The cows can't keep up. We sell pretty much everything we produce,"
said David Robb, the creamery's manager of business development.
Cathy Greene, an agricultural economist with the U.S. Department of
Agriculture's Economic Research Service, said the retail market for
organic foods continues to grow about 20 percent each year.
Most people buy organic out of health concerns, she said. Some want to
support environmentally friendly farms, but for others, it's a quest
for food with superior taste and nutrition.
"Whether the food tastes better or not is kind of subjective, but
whether it's more nutritious(1) is something researchers are just
starting to study," Greene said.
According to the USDA, certified organic cropland in the United States
grew nearly 75 percent between 1997 and 2001, the last year for which
figures are available, and accounted for more than 2.3 million acres in
2001.
The USDA found an estimated 4,175 acres of certified organic cropland
in Indiana in 2001, but Bowman said the 54 organic farms she's
certified in the state account for only about 2,370 acres.
Barbara Haumann, a senior writer with the Organic Trade Association,
said there is no clear gauge of the nation's organic agriculture
industry. "The numbers are quite hazy," she said. "The government just
needs to do some better tracking."
Although organic foods can cost two to three times more than their
conventionally raised alternatives, Corinne Alexander, a Purdue
University assistant professor of agricultural economics, said people,
herself included, are willing to pay.
"I like the idea that right now the organic farmers are being rewarded
with premium prices for their hard work. It's really backbreaking
work," she said.
Traders Point Creamery's 140 acres of pastures are planted with a mix
of grasses and meadow plants that make its milk superior to that
produced by grain-fed cows, said Robb.
The pastures are enriched with natural compost and by tilling under
cover crops. The nutrient-rich droppings from the 60 Brown Swiss dairy
cows also help green the fields, he said.
The fields thrive, Robb said, because they work in concert with nature.
"The soil is really a living entity, and chemicals kill all the good
things in the soil when what we really need to be doing is stimulating
those," he said.
-end-
----------
[1] See Nutritional Quality of Organic Versus Conventional Fruits,
Vegetables, and Grains, published in The Journal of Alternative and
Complimentary Medicine, Vol. 7, No. 2, 2001, 161-173. V. Worthington,
2001. Nutrient levels in both organic and conventionally-grown foods
were evaluated by reviewing data from 41 comparative studies on crops
produced with organic matter and inorganic fertilisers. The study
showed that organic crops yield higher average levels of some 21
nutrients analysed. The results were most statistically significant for
Vitamin C (27% more), magnesium (29%), iron (21%) and phosphorus (14%).
PeterB
2005-05-13 14:56:55 UTC
Permalink
Post by Joel M. Eichen
This is such a tough one ......
Yes, food is extremely cheap in the US mainly
due to mechanization and addition of chemicals.
Are people willing to pay the price for mass-organic food?
Who knows?
Joel
The price difference is within 15% at the local farmer's market for
most produce when compared to a standard grocery. In fact, org.
tomatoes are even cheaper.
Joel M. Eichen
2005-05-13 21:11:12 UTC
Permalink
True about tomatoes, but how about
flour selling for 20 to 30 cents a pound?

You can't beat that, right?

Joel
Post by PeterB
Post by Joel M. Eichen
This is such a tough one ......
Yes, food is extremely cheap in the US mainly
due to mechanization and addition of chemicals.
Are people willing to pay the price for mass-organic food?
Who knows?
Joel
The price difference is within 15% at the local farmer's market for
most produce when compared to a standard grocery. In fact, org.
tomatoes are even cheaper.
Tim Campbell
2005-05-13 16:04:23 UTC
Permalink
Post by Joel M. Eichen
Are people willing to pay the price for mass-organic food?
Of course there will be downward pressure on prices as the markets and
production of organics expands.
Mark Probert
2005-05-13 16:35:46 UTC
Permalink
Post by Tim Campbell
Post by Joel M. Eichen
Are people willing to pay the price for mass-organic food?
Of course there will be downward pressure on prices as the markets and
production of organics expands.
Just like the downward pressure on the prices of vitamins and supplements
happened as their use expanded.
Tim Campbell
2005-05-14 03:00:43 UTC
Permalink
Post by Mark Probert
Post by Tim Campbell
Of course there will be downward pressure on prices as the markets and
production of organics expands.
Just like the downward pressure on the prices of vitamins and
supplements
Post by Mark Probert
happened as their use expanded.
Your facetious comment is well grounded Mark, production items
certainly do behave differently in an open market system than commodity
items do.

Witness prescription drugs.
PeterB
2005-05-14 15:20:34 UTC
Permalink
Post by Mark Probert
Post by Mark Probert
Post by Tim Campbell
Of course there will be downward pressure on prices as the
markets
Post by Mark Probert
and
Post by Mark Probert
Post by Tim Campbell
production of organics expands.
Just like the downward pressure on the prices of vitamins and
supplements
Post by Mark Probert
happened as their use expanded.
Your facetious comment is well grounded Mark, production items
certainly do behave differently in an open market system than
commodity
Post by Mark Probert
items do.
Witness prescription drugs.
Good points, Tim, plus the dynamics of pricing are very complex in a
free market system. Factors that impact consumer costs include
licensing (drugs), monopoly marketing (drug patents), competition
(generic drugs), weather cycles (agriculture), trade imbalances
(economics), currency relationships (global trade), and of course
supply and demand. Despite that complexity, pharmaceutical drugs are
far *more* costly than necessary, due to the monopology aspect of their
marketing. By contrast, natural supplements in aggregate are probably
not 1/5th the cost per recommended doseage, or by any other reasonable
measure.

Peter

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