* Define Organic Farming * Explaining the significance of organic product certification * Describe the size of the US organic market * Recognize the organic market segmentation in the US * Explain the key emerging trends

1. Growth and Opportunity in
the Organic Product Sectors
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eLearning Module
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2. Learning Objectives
After completing this course, you will:
 Define Organic Farming
 Explain the significance of organic product
certification
 Describe the size of the US organic market
 Recognize the organic market segmentation in the US
 Explain the key emerging trends
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3. Topics
1 Defining Organics
2 Organic Product Certification
3 Sizing the Organic Market
4 Market Segmentation in the U.S.
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5 Key Emerging Trends
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4. What Is Organic Farming
Organic farming is a system of agriculture
that uses natural and biodegradable inputs
while specifically avoiding the use of
synthetic fertilizers or genetically modified
organisms (GMOs) as seed stock or
pesticides.
Did you know?
For a quarter century now,
GMOs are present in almost
all processed foods in the U.S.
but the Food and Drug
Administration (FDA) does
not require labeling
(“voluntary”) even though
GMOs are banned in many
countries.
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5. Conventional Farming and Organic Farming
The Organic Farming Research Foundation draws a distinction between conventional
farming and organic farming as such: “Organic farming refers to agricultural production
systems that do not use genetically modified (GM) seed, synthetic pesticides or
fertilizers. Fundamental characteristics of organic systems include design and
implementation of an organic system plan describing the practices used in producing
crops and livestock products; detailed recordkeeping systems tracking all products
from the field to point of sale; and maintenance of buffer zones to prevent inadvertent
contamination by synthetic farm chemicals from adjacent conventional fields.”
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6. Organic Farming Method
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Organic farmers use biological methods and
management practices such as diversified crop
rotations that improve soil quality. Organic farming
increases soil organic matter, which enhances the
soil's ability to absorb and store carbon, cycle
nutrients, and absorb water. Increased soil organic
matter contributes to greater resilience under
stresses such as drought and flooding. A key
element in understanding the cycle of healthy crop
production is to focus on the soil health. Farmers
who embrace the cycle of healthy production
understand that the process of protecting your
watershed is critical to maintaining the ability of the
land to produce. Crop rotation, composting and soil
enrichment are all achievable though proven
methods explained here.
Amish farmers in the U.S. have embraced approaches that support and enhance the immune
systems of plants, based on insights highlighted in The Atlantic here from self-taught farmer named
John Kempf.
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7. Topics
1 Defining Organics
2 Organic Product Certification
3 Sizing the Organic Market
4 Market Segmentation in the U.S.
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5 Key Emerging Trends
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8. Organic Product Certification
Certified organic products refers to
agricultural products that have been grown
and processed according to uniform
standards that have been verified by the
United States Department of Agriculture
(USDA) in its rulemaking. The National
Organic Program (NOP) develops the rules
and regulations for the production,
handling, labeling, and enforcement of all
USDA organic products. NOP is the key to
getting your organic products to the market
with the correct, accepted certifications.
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What does NOP do?
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9. • Maintain the list of certified organic operations and help new farmers learn how
to get certified
• Develop regulations and guidance on organic standards
• Manage the National List of Allowed and Prohibited Substances
• Accredit certifying agents to certify organic producers & handlers
• Establish international organic import and export policies
• Investigate and take action on regulatory violation complaints
• Facilitate the work of the National Organic Standards Board, a Federal Advisory
Committee
• Oversee the Organic Certification Cost Share programs to support certified
organic operators
• Provide training to certifying agents, USDA staff, & other stakeholders
What Does NOP Do?
X
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10. Topics
1 Defining Organics
2 Organic Product Certification
3 Sizing the Organic Market
4 Market Segmentation in the U.S.
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5 Key Emerging Trends
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11. The U.S. Organics Market
The USDA sizes the U.S. organics market at
over $6B in 2015 but the market growth has
accelerated this year due to a shift in food
consumption patterns away from GMOs, high
sugar content and highly processed foods.
The economic multiplier effect has been
cited at 20 to 1x for each dollar of research
expended.
The USDA details that organics in the US are
highly skewed to the west and southwest
where a highly seasonal population of “guest
workers” enters to complete harvests. This
may well change with the incoming Trump
Administration as the H1-B visa program
undergoes a thorough review.
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12. The U.S. Organics Market
The Organic Trade Organization sizes the
market at $43.3B and this estimate actually
captures a number of segments the USDA
ignores. Scientific American offers an
interesting insight, environmental scientists
at McGill University in Montreal and the
University of Minnesota performed an
analysis of 66 studies comparing
conventional and organic methods across 34
different crop species. "We found that,
overall, organic yields are considerably lower
than conventional yields," explains McGill's
Verena Seufert, lead author of the study
published in Nature on April 26. "But, this
yield difference varies across different
conditions. When farmers apply best
management practices, organic systems, for
example, perform relatively better."
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13. Topics
1 Defining Organics
2 Organic Product Certification
3 Sizing the Organic Market
4 Market Segmentation in the U.S.
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5 Key Emerging Trends
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14. Global Market Segmentation
Globally, the market segmentation suggests
that organics are well established. Grains,
nuts, cattle and poultry are all core elements
of the global consumables but new niches
are emerging. Specialty organics are surging.
Not surprisingly, organic products first
established a market position among
products directly applied to consumers in the
cosmetics industry. The global organic
personal care market is expected to reach
$25billion by 2025, according to Grand View
Research. The growing demand for organic
and natural hair care, skin care, and cosmetic
products results from a demand for higher
quality products with no additives and better
ingredients – these products demonstrate
that the non-GMO offerings yield higher
pricing.
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15. Global Market Segmentation
Similarly, "Global Organic Food Market
Forecast & Opportunities, 2020" from
Tech Sci Research forecasts that the
global organic food market is projected
to register a CAGR of over 16% during
2015 - 2020. “Growth in the market can
be attributed to growing health
concerns among consumers and
increasing awareness with regard to
health benefits of organic food,” they
conclude. Emerging players in the
market are numerous and most are
new participants.
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Who are the early key players
in the global market ?
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16. Transparency Market Research highlights early key players in the global market for
organic food as: Spartan Stores Inc., Hain Celestial Group Inc., United Natural Foods
Inc., AMCON Distributing Co., Amy’s Kitchen, Whole Foods Market Inc., Clif Bar &
Company, The Kroger Co., Dole Food, Frito-Lay, Newman’s Own, Inc., Dean Foods, and
Organic Valley.
Who are the Early Key Players?
X
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17. Market Demand Not Yet Met
The Agricultural Marketing Resource Center
has highlighted a problem with organics in
terms of shortages and consumer confusion
due to labeling which does not reflect that a
product is certified organic. AgMRC
confirms that, “rapid growth in the organic
sector has highlighted issues that need to
be addressed: shortages of organic raw
materials such as organic grain and organic
sugar and competition from food marketed
as "locally grown" or "natural." A shortage
of affordable organic ingredients or
products, such as corn and soybeans for
livestock feed, left organic producers unable
to meet market demand.”
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18. Topics
1 Defining Organics
2 Organic Product Certification
3 Sizing the Organic Market
4 Market Segmentation in the U.S.
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5 Key Emerging Trends
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19. Trend in Organics
An interesting trend in organics is also that even Wikipedia describes organic
farming as “an alternative agricultural system” as if thousands of years of
cultivation should be dismissed as unconventional. So the narrative presented
shows that there is a serious backlash to poisoning our ecosystem:
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Agriculture was practiced for thousands of years without the use of artificial
chemicals. Artificial fertilizers were first created during the mid-19th century. These
early fertilizers were cheap, powerful, and easy to transport in bulk. Similar
advances occurred in chemical pesticides in the 1940s, leading to the decade being
referred to as the 'pesticide era'.[14] These new agricultural techniques, while
beneficial in the short term, had serious longer term side effects such as soil
compaction, erosion, and declines in overall soil fertility, along with health
concerns about toxic chemicals entering the food supply in the late 1800s and early
1900s, soil biology scientists began to seek ways to remedy these side effects while
still maintaining higher production.
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20. US Leading the Trend
Without a doubt, a certain percentage of the population is willing to pay a premium for certified
organic products. Some credible researchers believe the organic market is bigger than reported.
Research and Markets sized the organic food & beverage market to be worth $84 billion two
years ago with a projection of $212 billion by 2020 based on an estimated CAGR of 16.7% in the
next 5 years. The U.S., Germany, the U.K. and Italy are leading the trend towards organics globally
but the drive is widening.
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Regulation is going to be an
increasingly important element
in the organics field as some of
the established process food
companies view organics as a
threat to their business growth.
Data from the U.S. National
Agricultural Statistics Service
shows an huge 31% surge in
organic crop and livestock
production in recent data.
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21. Compelling Trends Emerging
Organic agricultural methods are
internationally regulated and legally enforced
by many nations, based in large part on the
standards set by the International Federation
of Organic Agriculture Movements (IFOAM),
an international umbrella organization for
organic farming organizations established in
1972. Not surprisingly, the Swiss offer a very
comprehensive report entitled “The World of
Organic Farming” which lays out beautifully
over 340 pages that organics are the wave of
the future. Indeed, there are compelling trends
emerging as laid out in Trendwatching here.
And part of the organics movement will shift to
specialty foods, as shown here, as new
categories emerge for consumers with new
products that they had not seen before are
now offered.
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22. Knowledge Checks
Organic farming is a system of agriculture that uses natural and
biodegradable inputs while specifically avoiding the use of __________.
Back Select the correct option.
⃝ synthetic fertilizers
⃝ genetically modified organisms (GMOs) as seed
stock
⃝ pesticides
⃝ all of the above
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23. Knowledge Checks
Organic farming is a system of agriculture that uses natural and
biodegradable inputs while specifically avoiding the use of __________.
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 synthetic fertilizers
 genetically modified organisms (GMOs) as seed
stock
 pesticides
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24. Knowledge Checks
The National Organic Program (NOP) develops the rules and regulations
for the production, handling, labeling, and enforcement of all USDA
organic products.
Back Select the correct option.
⃝ True
⃝ False
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25. Knowledge Checks
The National Organic Program (NOP) develops the rules and regulations
for the production, handling, labeling, and enforcement of all USDA
organic products.
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 True
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26. Knowledge Checks
The Organic Trade Organization sizes the US organic market at
______________.
Back Select the correct option.
⃝ $81B
⃝ $43.3B
⃝ $25B
⃝ $6B
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27. Knowledge Checks
The Organic Trade Organization sizes the US organic market at
______________.
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 $43.3B
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28. Congratulations
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