The United States is currently experiencing an unprecedented rise in organic farming. According to USDA data, the number of organic farms grew by 12% in 2015 compared to the previous year, marking an increase of nearly 300% since 2002. Nevertheless, organic farms still represent only 0.7% of all agricultural operations in the country. A significant challenge for farmers is the lengthy and costly process of transitioning from conventional to organic farming, which requires a minimum of three years during which they must adhere to organic practices without receiving organic prices.
There are numerous incentives for U.S. farmers to transition to organic methods, such as the USDA’s Environmental Quality Incentives Program (EQIP), which provides first-time organic farmers with technical assistance and a one-time payment that varies by region. Additionally, food manufacturers and retailers have established programs to address their growing demand for organic ingredients and products. Companies like Stonyfield Farms, Organic Valley, Whole Foods, and Nature’s Path Foods have offered grants and technical support to farmers to enhance supply.
For many manufacturers, sourcing organic ingredients can be challenging, whether they are specialty items like organic herbs and spices, which may not be cultivated in the U.S., or staple crops such as wheat. Digital platforms like GreenTrade.net and Mercaris Auction Platform have been created to facilitate this process; Mercaris claims to have traded 280,000 bushels of organic grain this year alone, surpassing the total traded in 2016.
The Organic Trade Association also offers a variety of resources for both suppliers and manufacturers, including market data and a directory of certified organic suppliers. However, shortages of certain organic products have led to price increases. In some instances, livestock producers, in need of organic feed, have resorted to importing it from abroad due to insufficient domestic supply.
Many grocery stores and restaurants collaborate closely with farmers and ranchers to communicate their future product needs. For example, Wal-Mart works with farmers and suppliers to project its organic requirements several years ahead. Similarly, Elevation Burger, which specializes in organic, grass-fed, free-range beef, shares growth forecasts and store opening plans with its suppliers.
As the demand for organic products continues to rise, factors such as the calcium citrate tablet price can also impact the overall organic market, highlighting the importance of strategic planning and collaboration within the industry. The evolving landscape presents both opportunities and challenges as stakeholders seek to balance supply and demand in the organic sector.