Guidelines to Organic Farming: Part III
Organic Market: Organic market since 1940 is growing and it has achieved an annual pace of 20% since 1990’s.The base line projections of USDA have optimistic figures about the net farm income, which is, bound to rise to $54 billions with the supporting crops. The organic market trends are mainly due to the awareness among the consumers regarding the havocs of synthetic pesticides.
The total acreage in certified organic farming has gone to 4 million, which is up by 1 million in 2004 according to ERS (Economic Research Service). The ERS has released the report regarding the recent Organic Market in USA . The consumer spent nearly $7.8 billion for organic foods and half of it was through retail outlets in 2000 with a growth of 20% the estimated spending on Organic food is expected to reach $20 billions in 2007. The Organic Market in USA comprises of these sectors: retailsà natural food and conventional grocery stores, direct to consumer and exports. The fresh food market is attuned to the demands of processed and non-processed foods.
Keeping in the view the Organic Farming sector has been so expanded that the industry leaders whether in retails sales or in production have started showing their presence. The Wal Mart Group, General Mills, Kraft etc. have indulged in the organic food business. The market has also gone into discoveries of Cooperative Groups. The growth in organic market is also due to the fat profit margins from 25% to 200% in some cases. The Wal Mart group has already gained the largest organic milk seller in USA . The Kraft Inc has turned into a bulk organic producer. Either the other organizations are directly selling the organic foods or they are selling it through cooperatives. There are many cooperatives active in Organic farming and marketing the organic products.
Another lure in increase in market of organic food is people are turning more health conscious. The rises in level of synthetic pesticides in the soil , their accumulation in human body and their after effects have made people to choose organic. The market trends of organic food are directed in positive direction by the age group 35 to 45, as these consumers are prone to adopt healthier methods of living. In a study conducted by The Hartman Group on request of The Food Allaince “The 52% of population in USA is dedicated to buy organic food but are dejected when they are unable to find the required products.” Among these groups includes the New Green Mainstream (23%), The Young Recyclers (10%), The Affluent Healers (12%), and The True Naturals (7%). The Hartman Study confirms about the main issue “The Environment” in the purchasing trends of the American people.
Looking above to these facts, the marketing options are variedly developed. The main categories lie as below.
Community Supported Agriculture (CSA): A system where consumers buy a share of the harvest and they are supplied with the weekly produce. Consumer and the farmer in the respective ratio equally share the profit and risk. Another form in this is collective CSA, in which a group of farmers collectively farm and supply the produce to the consumer in the varieties with respective ratio of harvest.
U-Pick System: U-Pick system is designed to save the harvest labor and is meant for the crops where ripeness is easily determined. The fruits and Christmas trees are prior in this list. The consumers come and pick the crop pay the farmer on the ranch itself. Generally suitable for the farmers who have ample parking sopaces and have better organizing abilities
Local Farmers Market: It is a local market in every city or town where farmers sell the produces and trade with bulk buyers and regular consumers.
Mail Order Market: The consumers are sent the order processing forms and product catalogues. The consumers select the product and order the produces are delivered at doorstep.
Roadside stands: These casual vendors sit aside the road, sell their produce, and walk away with the profits on the individual deal.
Above all the better option in the case of large-scale farming is wholesale market. Various trade regulators like packers, distributors, brokers, cooperatives etc drive the wholesale market. The present expansion 3% of total food grain production. These whole sale agents either are the companies who buy the yearly consume of the farmer and set up the extra facilities of packaging and direct to target-transportaion. One of those among is Whole Foods market.
Whole sale market derive better options for the farmers , despite the profit margins are fixed and less per crop in comparison to the other sellers, but the regular hassles of marketing and logistics are not present, as these are handles by the buyer itself