Christine Bushway organic industry trends CCOF Annual Convention feb 19_2011

Growing the Organic Market
Christine BushwayExecutive Director / CEOOrganic Trade Association
CCOF Annual Convention - Education Conference & Annual MeetingFebruary 18-20, 2011 - Ventura Beach, CA

Organic Market 2010
Macro Trends in US 2010
US Organic Consumer in 2010
Challenges
Solutions

Three quarters of US families have purchased at least some organic products
3
As in 2009, we’ve constructed a profile of “organic buyer groups” among US families using self-reported organic buying data.
Newly Organicfamilies, those who only began purchasing organics in the past two years, comprise about 3 in ten US households (32% in 2009, 36% in 2010).
Experienced Organics, encompassing about 2 in 10 families (20% in 2009, 21% in 2010),first starting buying organics up to 5 years ago.
Seasoned Organics have been buying organics for more than 5 years and in some cases up to 15 years. They represent about 2 in 10 households (21% in 2009, 16% in 2010.)
Non-Buyers, about 3 in 10 households, neverbuy organic products.
The size of each buyer segmentremained consistentwith 2009 findings.
Newly Organic
ExperiencedOrganics
Seasoned Organics
Non-buyers
Q. When did you first buy organic products, if ever?
(n=1197)
(n=763)

US Families are buying more organicsthan ever before
4
Purchases of Organic Foods Compared to 12 Months Ago
Compared to 12 months ago…
Buying more
Buying same amount
Buying less
Do not buy organics in this category
2009
(n=1197)
2010
(n=763)
Base: Total parents
Q: Compared to 12 months ago, are you buying more, less or the same amount of organic foods in general?

One third say trust in organic products has increased over the past year
5
Changes in Trust of Organic Labeling
Increased
Decreased
Stayed the same
Total parents
87%
2009
92% *
2010
Organic Buyers
85%
2009
2010
91% *
Base: Total parents
Q: Compared to one year ago, has the extent to which you trust that products labeled as “organic” really are organic…

Organic Market Size and Growth
Food 93%
7%
Non-Food

Trends in U.S. Organic Agricultural Production
2008 Organic Production Survey*
14,540 organic farms & ranches in U.S.
4.1 million acres
Organic farms in all 50 states
78% of farms report planning to maintain or increase organic production levels over the next five years.
* The 2008 Organic Production Survey conducted as a follow-on to the 2007 Census of Agriculture by the U.S. Department of Agriculture’s (USDA’s) National Agricultural Statistics Service (NASS).

Trends in U.S. Organic Agricultural Production
U.S. organic farms on average have higher sales, higher production expenses, and higher operating profit than U.S. non-organic farms
* The 2008 Organic Production Survey conducted as a follow-on to the 2007 Census of Agriculture by the U.S. Department of Agriculture’s (USDA’s) National Agricultural Statistics Service (NASS).

Recent Trend Sales: Jul. – Sept. 2010
13 week dollar % change:
Organic Food Sales UP 10.7%ConventionalFoodSales UP .7%
13 week unit % change:
Organic units UP 11.1%ConventionalUnits UP .5%
FDM ending 10/02/2010

Trends- Local and Regional Food Systems

Market Update – Local, Regional, Direct to Consumer

Reports Cause Consumers to Question
President’s Cancer Panel
ADHD Research
Center for Science in the Public Interest’s warning re: food dyes
FDA guidance on antibiotics for food-producing animals

Challenges
Economic climate
Competitive pressure from conventional
Political climate & budget cuts

Connect the Dots
Connect the Dots
Natural and Organic – Consumer Confusion Persists
One third of all consumers don’t know the truth about organic standards, as it relates to organic foods they see in retail outlets.
%
Mintel survey September 2009
SOURCE: MINTEL “Organic Food and Drink Retailing U.S. Report 2009” produced in collaboration with SPINS

Connect the Dots
Online ad campaign positions organic as the solution
Ads appear on Google and Facebook, and newspapers such as The New York Times and Washington Post
Ads drive traffic to www.OrganicItsWorthIt.org
First 60-days:
22 million+ impressions
25,000+clicks/web visits
5,000+ social media fans/followers

GE Alfalfa Decision
Obama Administration approves the unrestricted cultivation of genetically engineered (GE) alfalfa, sugar beets and amylase corn in three weeks
GE alfalfa can now be planted without any federal requirements to prevent contamination of organic and non-GE crops
OTAcontinues work to protect organic
Consumer Action Alert distributed via email, social media, blogs, newsletters
25,000+ messages (and counting!) messages sent to the White House

Solutions- Policy and Political Pressure
1. Protect our base ($)
2. Push the envelope (policy)
3. Grassroots engagement
Build New Relationships | Nurture Old Friends

Solutions- Advance Organic Together

Solutions- New Data Continues to Point to the Value of an R&P Order

Thank You
Christine BushwayExecutive Director / CEOOrganic Trade Association
cbushway@ota.com
Additional Resources
Organic Trade Associationwww.OTA.com
Organic business directorywww.TheOrganicPages.com
Transitioning to organic productionwww.HowToGoOrganic.com
Directory of U.S. organic exporterswww.USOrganicProducts.com
Consumer educationwww.OrganicItsWorthIt.org

Christine Bushway organic industry trends CCOF Annual Convention feb 19_2011

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