Monterey this month. Category Partners provides analyses of organic market trends for the Organic Produce Network, which includes retailers and organic growers. In its state of organic produce report released March 28, the Organic Produce Network reported that organic fresh pro- duce sales in 2023 topped $9.6 billion, By Bob Johnson Organic produce sales continue to rise, as a narrowing price gap between organ- ic and conventional produce has helped drive organic sales this year, according to an industry analyst and market reports. During the first three months of 2024, organic fresh produce sales grew by 4.1% Organic produce sales are up as price gap narrows in dollars and 3.4% in volume, according to new Nielsen statistics on consumer purchases. Conventional produce sales increased by 3.3% for the quarter. “Organic is up again, gaining on con- ventional in both volume and dollar,” Tom Barnes, CEO of Category Partners, told at- tendees of the Organic Produce Summit in
an increase of 1.6% over 2022, with or- ganic produce accounting for 12% of all retail produce sales and 7% of volume. Conventional produce sales went up by 1.9% in 2023. But Barnes said organic sales have ticked up at a higher rate so far in 2024 due to consumers taking advantage of more competitive prices. “The price gap between organic and conventional just got a little bit smaller,” Barnes said, as he discussed first-quarter market reports and preliminary figures for the second quarter of 2024. Category Partners reported that the average per-pound price for conven- tional produce rose by 1.5% in the first quarter of 2024 compared to the same period in 2023. Meanwhile, organic pro- duce saw an increase of 0.6% in average price per pound.Still, the aggregate cost of organic products was $1.48 per pound more than conventional. According to the first-quarter analysis, 11 of the top 20 organic commodities ex- perienced growth in dollars and volume, including berries, carrots, onions, broccoli and tomatoes. In 2023, organic berries, including strawberries, blueberries, raspberries and blackberries, ranked as the top selling or- ganics category for the second year in a row, registering $1.7 billion in sales, up 6% from 2022. That trend continues in 2024. “Berries lead in dollars, seeing an in- crease of 13% over last year,” Category Partners reported in its first-quarter anal- ysis. “Bananas saw the greatest increases in dollars at almost 15% more dollars than last year. Organic lettuce saw the greatest decline in dollars at -8.3% followed by pre- packaged salads at -6.4%. “ Organic berry sales totaled $423 million for the quarter. Despite a drop in sales, prepackaged salads ranked as the sec- ond-highest organics category, with $373 million in first-quarter sales. In volume of produce sold, organic ap- ples saw a 16.6% increase during the first quarter, followed by bananas with a 13% volume increase, and herbs and spices with a 10% increase. Organic bell peppers experienced the largest drop in volume at 15%, followed by 10% for cucumbers and 7% for avocados, squash and celery. (Bob Johnson is a reporter in Monterey County. He may be contacted at bjohn11135@gmail.com.)
MAKE THE RIGHT MOVE FOR TOMORROW, TODAY. MAKE THE RIGHT MOVE
Plan ahead for your equipment and production needs. Act now to lock in the best pricing and secure the equipment you need for the season ahead. Make smart decisions for a successful year. That’s the right move. And it starts at your New Holland dealer. Stop in today! Plan ahead for your equipment and production needs. Act now to lock in the best pricing and secure the equipment you need for the season ahead. Make smart decisions for a successful year. That’s the right move. And it starts at your New Holland dealer. Stop in today!
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4 Ag Alert July 31, 2024
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