Ag Alert Aug 11, 2021

Sales of organic products spike during the pandemic

mental and consumer demands contin- ue to increase,” Jasiello said. The Organi c Farming Research Foundation in Santa Cruz, which regu- larly surveys organic farmers about their needs and challenges, will be doing a special report on California trends us- ing data from its 2020 national survey, said Executive Director Brise Tencer. That report will be available in the fall, she noted. In its 2016 survey, irrigation and drought management came up as top

needs for organic farmers, she said, with soil health, biology, quality, nutrient management and fertility management being close behind. The foundation has invested in re- search to help support development of quality strawberry transplants for or- ganic systems. It is also developing in- tegrated irrigation management strate- gies to improve water and nutrient use efficiency in organic processing tomato

ByChing Lee Home cooking during the pandemic has liftedoverall sales of organicproducts in California and across the U.S. As people worked from home and ventured out l ess f requent l y , the market for organic products jumped by more than 12% to nearly $62 bil- lion in 2020, according to an annu- al survey conducted by the Organic Trade Association. Highlights of that survey were shared during a meeting of the State Board of Food and Agriculture, which focused on California organic agricultural pro- duction. The monthly meeting, held last week via webinar, included speak- ers who discussed market trends, re- search and emerging issues related to organic production. “Shoppers real ly deeply stocked pantries and freezers, so lots of cat- e go r i e s had p r e t t y b i g up t i ck s ,” said Angela Jasiel lo of the Organic Trade Association. Sales of organic food grew nearly 13% to more than $56 billion, according to the survey. Organic fruits and vegetables, which now account for 15% of the total U.S. retail produce market, saw notable gains. Fresh organic produce sales rose by nearly 11% in 2020 to nearly $18.3 billion. Frozen fruits and vegetables jumped 28.4% to $925 million. Canned fruits and vegetables increased 24.7% to $759 million. Dried beans, fruits and vege t abl es went up 18 . 1% to $503 million. Growth across all organic categories was constrained primarily by supply, Jasiello said, as “supply chains were caught off guard” from raw product to packaging to shipping capacity. Sales of organic nonfood products, which account for about 9% of total organic sales, reached $5.5 billion in 2020, “with some real winners in this category—and some struggles as well,” she said. For example, fiber—the larg- est segment in the nonfood catego- ry—experienced a “slow-growth year” of about 5%, as there wasn’t “much browsing in retail stores, not as many places to be and excuses to shop for new fiber items.” California continues to be “an or- ganic powerhouse,” she said, ranking No. 1 in the nation with 5,077 organic businesses. Some 90% of California shoppers buy organic, with commodity sales increasing 27% to nearly $3.6 bil- lion—36% of the U.S. total—from 2017 to 2019. The state boasts almost 20% of all organic acreage in the U.S., with 74% of its counties considered organic hotspots. Berries, chicken, milk, lettuce and grapes are the top organic crops in California, she noted. On the national level, Jasiello said the biggest policy challenge relates to the lack of movement to advance and

update organic standards at the U.S. Department of Agriculture. She cited a backlog of 20 different recommen- dations that have gone through the National Organic Standards Board that have yet to be implemented. “This will continue to harm the or- ganic sector as innovation and environ-

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August 11, 2021 Ag Alert 3

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