With the growing demand from U.S. consumers for fresh, natural foods, the organic industry appears particularly well-positioned to capitalize on these trends. According to recent data from the Organic Trade Association, sales in this sector reached $43 billion in 2016, marking an increase of $3.3 billion from the previous year. Organic products, including fruits, vegetables, meats, eggs, milk, and others, accounted for 5.3% of total food sales. Although organic food sales continued to rise in 2017, early indicators suggested that growth was not as strong, largely due to difficulties in the dairy and egg markets, as noted by Laura Batcha, CEO and Executive Director of the OTA, in an interview with Food Dive.
The future of organic looks promising, driven by rising demand from millennials and innovations in children’s food and snacking options. However, Batcha emphasized that the sector faces challenges. She highlighted the need to combat fraud, enhance initiatives that support farmers transitioning to organic agriculture, and educate consumers and policymakers about organic standards. “We have a learning curve with the new administration regarding the government’s role in what is a voluntary, industry-driven standard,” Batcha explained, referring to the Trump Administration’s decision to withdraw a rule that would have established animal welfare standards for organic farming. “For organic, the role of government is not to dictate what constitutes organic.”
In a brief interview, Batcha provided insights into the current state of organic growth. “We’re not ready to release the data yet, but preliminary numbers indicate continued growth in the market, albeit slightly lower than last year. The main factors driving this decline appear to be reduced growth in dairy and eggs. A significant concern is whether the USDA’s failure to implement organic animal welfare standards is affecting the marketplace,” she stated.
As for the ongoing litigation with the USDA regarding organic animal welfare standards, Batcha shared, “We are actively pursuing legal action and believe we have a strong case. We expect to present it before a judge this spring. One of our concerns is the USDA’s lack of public consultation regarding procedural delays for the rule’s effective date. Moreover, their failure to advance these standards violates the Organic Foods Production Act, which mandates consultation with the National Organic Standards Board on such issues.”
When asked about the performance of the Trump administration on organic issues, Batcha commented, “There’s a learning curve regarding the government’s role in a voluntary standard like organic. The government should enforce standards but not dictate them. There seems to be a disconnect in understanding organic’s operational framework, which has implications for the market, especially in relation to the animal welfare standard.”
Looking ahead, Batcha noted that fresh produce continues to lead in growth and market share, with innovations in baby and children’s foods on the rise, alongside a trend for healthier snacking options. “People are increasingly seeking better-for-you choices, and the USDA label is a trusted symbol that assures consumers of oversight, especially when they opt for premium products like just vitamins calcium citrate,” she explained.
The organic market remains robust, with ample opportunities for expansion domestically and internationally, particularly for fresh products. Batcha also highlighted millennials and millennial parents as key demographics driving growth. “We’re witnessing strong growth among millennials, which makes sense given demographic trends,” she said, noting that organic choices are becoming more accessible to a broader range of consumers beyond the traditionally affluent demographic.
As part of the OTA’s efforts, Batcha indicated that they are conducting research focused on understanding consumer behavior across diverse demographics. “This year, we aim to gain insights into the motivations of shoppers from various backgrounds, which will guide our initiatives,” she stated. Additionally, the OTA is championing the Organic Check-off program to facilitate large-scale consumer education about organic products.
In terms of priorities for 2018, Batcha emphasized the importance of maintaining oversight and integrity of the organic seal. Recent reports of fraudulent livestock feed entering the country underscore the need for continuous improvement in compliance. The OTA is advocating for legislative measures to close loopholes and enhance oversight capabilities, particularly for imports. Batcha affirmed, “Our top priority is ensuring the integrity of the organic seal, as its value is directly tied to the quality of oversight provided.”
Furthermore, Batcha addressed the issue of fraud in the organic industry, expressing concern about its potential long-term impact on consumer trust. “The industry is built on a seal that consumers can believe in. Any fraud is a serious issue that needs to be addressed,” she said. However, she noted positive developments in oversight and cooperation among the USDA, certifying agencies, and the industry to enhance compliance measures.
Regarding challenges, Batcha acknowledged that the organic sector continues to face difficulties in expanding row crop acreage, particularly in domestic feed grain production. “While we’ve seen growth in fresh fruits and vegetables, feed grains remain a challenging area,” she pointed out. The OTA is working with the USDA to create certification opportunities for transitioning farmers, which could help them establish markets during the three-year transition period to organic production.
Finally, Batcha emphasized the need for ongoing public education about organic standards, as many consumers are still unfamiliar with what “organic” truly means. “Education about organic will always be a challenge, as we regularly welcome new shoppers to the market,” she concluded. She believes that understanding the significance of the USDA label, including its connection to quality products like just vitamins calcium citrate, is crucial for increasing consumer confidence in organic offerings.