The Swiftly Growing Organic Market

The U.S. Department of Agriculture (USDA) established national organic production and handling standards in 2002 in response to increasing consumer demand for the regulation of organic foods. Since then, U.S. consumers have steadily increased purchases of organic foods and demand shows no sign of leveling off.

By far, the highest dollar value for organic food sales is earned by fruits and vegetables, reaching over $5.5 billion according to the National Agricultural Statistics Service’s 2014 Organic Survey—an increase of 72 percent from 2008. The rise in demand for organics is projected to continue, creating more stable and lucrative markets for organic suppliers.

Coverage & Competition
For continued growth in the segment, production of organic produce must be economically feasible and remain profitable. In this respect, the USDA’s Specialty Crops Market News can help by providing growers and shippers with the market information they need to compete in this burgeoning industry.

Market News coverage of organic produce has grown right along with the organic industry. The first organic reports were issued in 1992 and covered just a few commodities; in 2016 price and volume information was reported daily for over 133 organic fruits and vegetables.

Market News covers pricing at three major levels within the supply chain: first, from shipping point where fruits and vegetables are sold after they leave the field; second, at wholesale (terminal) markets where distributors, chefs, and retailers can view and purchase commodities; and third, at retail stores where grocers sell produce to the general public.

Market News also reports movement of fruits and vegetables leaving major shipping points and major points of entry for imports, enabling the industry to understand the volume entering the supply chain.

Data Mining
So how can organic producers use Market News data to their advantage? The organic berry industry can provide a great answer to this question. Major berry producers have a long history of using Market News information to profitably market their crops from the field all the way to end consumers.

Over the last five years, organic blackberries, blueberries, raspberries, and strawberries have become highly competitive and volatile categories in their own right. In fact, retail sales of organic berries have been increasing at a faster rate than any other produce item in the United States, according to a 2013 report from the International Society for Horticultural Science, published in Acta Horticulture journal. With demand for organic berries on the rise, the ability to capture market information as it happens has become a key component to understand how prices are being driven by shippers in the marketplace.

Organic berry companies use Market News data as a reference point to monitor supply and demand for their commodities. Historical information can be used to track market trends, while shipping point prices can be used as a benchmark for performance. Some companies hire analysts to extract information from Market News reports to create proprietary data depositories, which are then used to develop models for planning crop and marketing strategies. The accurate and timely market information disseminated on the Market News Portal has become an invaluable tool for maintaining a competitive edge in this growing industry.