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Posts tagged: organic

Investigating Retail Price Premiums for Organic Foods

Retail price premiums for selected organic foods, 2010 chart

The Economic Research Service used grocery store purchase data to estimate retail price premiums for 17 commonly purchased organic foods relative to their nonorganic counterparts from 2004 to 2010.

This post is part of the Science Tuesday feature series on the USDA blog. Check back each week as we showcase stories and news from USDA’s rich science and research portfolio.

Consumer demand for organically produced goods has shown double-digit growth during most years since the 1990s, according to industry statistics, providing market incentives for U.S. farmers across a broad range of products. Consumers can now purchase organic food at nearly three out of four conventional grocery stores. These products generally carry a price that reflects the additional costs of producing organic foods and of keeping products segregated throughout the supply chain. The price premiums reflect these costs as well as consumers’ willingness to pay more for organic products.

A new Economic Research Service report provides estimated retail price premiums—and changes in premiums—for 17 commonly purchased organic foods relative to their nonorganic counterparts from 2004 to 2010. We used grocery store purchase data from a large set of nationally representative households. The data included detailed information on each product (degree of processing, flavor, package size, and whether organic), its price, and where it was purchased, allowing us to isolate the organic price premium. Read more »

US Ag Exports Create Big Opportunity Around the World

Agriculture Secretary Tom Vilsack and Deputy Under Secretary for Farm and Foreign Agricultural Services (FFAS) Alexis Taylor discuss the Trans-Pacific Partnership (TPP) implementation and export opportunities with Japanese Minister for Agriculture, Forestry and Fisheries, Hiroshi Moriyama in Tokyo, Japan on Nov. 20, 2015

Agriculture Secretary Tom Vilsack and Deputy Under Secretary for Farm and Foreign Agricultural Services (FFAS) Alexis Taylor discuss the Trans-Pacific Partnership (TPP) implementation and export opportunities with Japanese Minister for Agriculture, Forestry and Fisheries, Hiroshi Moriyama in Tokyo, Japan on Nov. 20, 2015

When I reflect on USDA’s international work over the past seven years, I don’t just see a great record of accomplishments, I see the building of a strong foundation that positions rural Americans to compete, grow and thrive in the years ahead.

Today, we’re launching the sixth chapter of USDA Results, which tells the story of our efforts, and our impact, alongside our partners over the last seven years to open new export markets, improve trade and capacity building, and empower future trading partners striving to build their own economies. Read more »

Local and Organic Food Shopping – Finding the Best Price

Local Certified Organic Produce Prices bar chart

A bar chart showing pricing comparisons for common organic and farmers market vegetables. Visit agriculture.vermont.gov/localfooddatatracking for the full report from agriculture.vermont.gov.

When comparing product prices between farmers markets and retail stores, local products are competitively priced – within a 10 percent price range – at farmers markets a majority of the time, even less expensive for some foods.  Local, certified organic products at farmers markets are almost always competitively priced when compared to prices at retail stores.

These are just some of the findings from a recent project conducted by the Local Foods Data Tracking Program, a joint effort between USDA’s Agricultural Marketing Service (AMS) Market News division and the Vermont Agency of Agriculture, Food, & Markets (VAAFM).  Prices were collected on a variety of fruits and vegetables, as well as a selection of meat and poultry products grown and sold in Vermont. Read more »

Sharing the Costs Helps Farmers and Businesses Explore Organic Options

A variety of dried ingredients

The organic community needs more farmers, ranchers and handlers to produce everything from organic vegetables to organic grains to organic meats. The organic cost share programs make organic certification more affordable for producers and handlers across the country. USDA photo

The organic community needs more farmers, ranchers and handlers to produce everything from organic vegetables to organic grains to organic meats. Consumer demand for organic products continues to grow, with retail sales hitting over $39 billion in the United States in 2014 and over $75 billion worldwide.

USDA’s National Organic Program, part of USDA’s Agricultural Marketing Service (AMS), has overseen the organic sector since 2002. Since that time, the number of certified organic operations in the U.S. has increased to more than 21,700 — nearly a 300 percent increase. Read more »

USDA Helps Small Business Grow Into Something Big

USDA Rural Development RBS Administrator Sam Rikkers and USDA RD State Director Basil Gooden, Ph.D at Shenandoah Organic Valley

USDA Rural Development RBS Administrator Sam Rikkers and USDA RD State Director Basil Gooden, Ph.D., visit the Shenandoah Organic Valley, a VAPG grant recipient, on April 18th, 2016.

Corwin Heatwole describes himself as quite the stubborn – though innovative – teenager. Leaving home at 17 years of age, this hardworking young man from Harrisonburg, Va. started several successful businesses in his early 20s before he discovered that there was a growing demand for organic chicken in the U.S. In 2013 he bought 300 chickens with not one buyer yet in sight. Now, with the help of USDA, he has more demand than he can handle.

Since that day, Corwin has grown the business from 35 employees to nearly 350 in just 25 months with the assistance of the U.S. Department of Agriculture. In October of 2014, Corwin received $200,000 in a working capital Value Added Producers Grant from USDA Rural Development and in January of this year, he also received a $600,000 Business and Industry Guaranteed Loan (B&I). He used the guaranteed loan to upgrade a very old plant with state-of-the-art packaging and processing machines. Without the packaging machines in particular, he noted, he would have never been able to fulfill his growing orders from Costco and Whole Foods. And through this growing business, he has been able to increase his farmers’ end-of-the-year net income by 75 percent. Read more »

Conversations with Organic PA Farmers on Crop Insurance

USDA Risk Management Agency Associate Administrator Tim Gannon (left) and Jason Forrester talking about planting plans

USDA Risk Management Agency Associate Administrator Tim Gannon (left) and Jason Forrester talk about planting plans on one of Forrester’s farms in Chambersburg, Pa.

I hit the road last week to get feedback from farmers in Pennsylvania on how recent Federal crop insurance enhancements are helping organic producers in the state.

Earlier this year, USDA expanded crop insurance options to allow organic producers to purchase coverage that better reflects their product’s actual value. The expanded coverage is part of our continued commitment to provide farmers with resources and tools to meet the growing demand for certified organic products. Read more »