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Organic Food Industry pt 6 of 6
1. Organic Food Industry:
An overview of the organic food industry in the United States. With a
look at the industry, marketing and investor outlooks.
2. Page Title: Page Number:
Organic Food Industry 3
U.S. Profile 11
Regulations & Certification 21
Organic Labels 34
Organic Programs & Services 52
Farming & Agriculture 56
Consumers 88
Industry Controversy 109
Page Title: Page Number:
Companies, Pros and Cons
of the Industry
123
State Profiles 133
Organic vs. GMO’s, Non-
GMO’s & Natural Foods
153
Market Overview 162
Future of the Industry 183
Investor Outlook 188
Work Cited 200
3. Organic vs. GMO’s, Non-GMO’s
and Natural Foods
An overview of GMO’s, Non-GMO’s and Natural foods against organic
4. Organic Foods:
VS. GMOs (or GMs)-
GMOs are genetically modified organisms (or plants) that had characteristics
or traits introduced to them
The presence of GMOs in organic seeds is a violation of the USDA regulations
A study has shown that the use of GMOs in U.S. crop production is limiting
yields, variations, and increasing pesticide use
5. Organic Foods:
VS. Non-GMOs (or Non-GMs)-
The Non-GMO Project can not legally claim products to be “GMO free”
The USDA organic testing for GMOs is done by the handler and reviewed by the
certifier
The Non-GMO Project testing is done by a third party verifier
Sourced from google.com
6. Organic Foods:
VS. Non-GMOs (or Non-GMs)-
Practices USDA
Organic Seal
Non-GMO
Project Seal
Bans use of chemicals/synthetics fertilizers
and pesticides
X
Bans use of synthetic hormones and antibiotics
X
Multiple tests for GMO residue
X X
Bans use of GMOs
X X
Compiled from the authors at: bostingorganics.com
7. Organic Foods:
VS. Natural-
Ingredient/Processing Organic Natural Conventional
Artificial Preservative No No Yes
Artificial Color No No Yes
Artificial Flavor No No Yes
Artificial Pesticides No Yes Yes
Artificial Fertilizer No Yes Yes
Irradiation No Yes Yes
GM Ingredients No Yes Yes
Compiled from the authors at: us.naturespath.com
9. Food Industry:
Market Overview-
U.S. consumer sales of organic products exceed $39 billion
Since the 1990s demand for organic goods has shown double-digit growth
Over 3,000 farms are transitioning to organic across the country
93% of organic sales take place through conventional and natural food
supermarkets
10. Food Industry:
Market Overview-
After the recession, demand for organic products quickly rebounded
Organic price premiums continue to remain high in many markets as the
demand for organic products expands
Unlike conventional food marketing, organic food marketing makes use of
direct markets
12. Food Industry:
Market Overview-
Organic products are now available in nearly 20,000 natural food stores
Nearly 3 out of 4 conventional grocery stores sell organic foods
Organic Food is Sold in the Following Locations:
Conventional Grocery Stores
Natural Food Stores
Direct-To-Consumer Markets
Compiled By author from ers.usda.gov
13. Peaches Apples
Sweet Bell
Peppers
Celery Nectarines
Strawberries Cherries Pears Grapes Spinach
Lettuce Potatoes
The Dirty Dozen:
Fruits And Vegetables with the Most amount of Pesticides
Food Industry:
Market Overview-
Compiled by author from mindbodygreen.com
14. Food Industry:
Market Overview-
Avocados Sweet Corn Pineapples Cabbage Sweet Peas
Onions Asparagus Mangos Papayas Kiwi
Eggplant Grapefruit Cauliflower
Sweet
Potato
Cantaloupe
Compiled by author from mindbodygreen.com
The Clean Fifteen:
Fruits and Vegetables with the Least amount of Pesticides
15. Food Industry:
Market Overview-
The USDA organic seal increased confidence in organic products by 70%
Organic foods only represent just 4% of the total food industry
The U.S. FDA has instituted $10,000 fines on those who intentionally mislabel
foods as organic due to the gains in the organic market
16. Future of The Industry: Outlook-
A look at the future industry
17. Future Outlook:
Trends-
Organic food industry is expected to grow 10% during 2015-2020
Growing awareness of health issues and income have increased demand
Organic doesn’t have any demographic boundaries
18. Future Outlook:
Outlook- Top 5 Companies Future Growth
Top Five Companies with Future Growth Earnings over the next Five Years:
Sprouts:
28.57%
Whole Foods:
13.25%
Kroger:
11.98%
Casey’s:
11.50%
SuperValu:
6.23%
Compiled by author from wealthdaily.com
All images from Google.com
20. Food Industry:
Investor Outlook-
It is forecasted that the organic food market in U.S. will grow at the CAGR
(compound annual growth rate) of about 14% during 2014-18
The western states hold the major market share in the total organic food
market revenues
The U.S. currently has organic trade agreements that allow USDA organic
products to be exported to Canada, the European Union, Japan, and Taiwan
21. Food Industry:
Investor Outlook
In 2013 the value of U.S. organic exports was $537 million
Imported organic almonds have the highest annual growth rate
Organic fields usually have less crop acreage, but have similar yields and
lower per-acre costs than conventional crop production
Increasing health concerns are increasing the demand for organic meat,
poultry, & fish
22. •promotes a less toxic environment
•only 0.5% of crop and pasture land in organic, according to USDA that leaves 99.5% of farm acres in the U.S. at
risk of exposure to noxious agricultural chemicals
Reduce The Toxic Load: Keep
Chemicals Out of the Air, Water,
Soil and our Bodies
•doesn’t singularly pollute farmland and farm workers; it also wreaks havoc on the environment downstream
•Synthetic fertilizer drifting downstream is the main culprit for dead zones in delicate .Reduce if Not Eliminate Off
Farm Pollution
•neurologic and behavioral effects may result from low-level exposure to pesticides
•Numerous studies show that pesticides can adversely affect the nervous system, increase the risk of cancer, and
decrease fertility.
Protect Future Generations
•Mono-cropping and chemical fertilizer dependency has taken a toll with a loss of top soil estimated at a cost of
$40 billion per year in the U.S
•Feeding the soil with organic matter instead of ammonia and other synthetic fertilizers has proven to increase
nutrients in produce
Build Healthy Soil
•new research verifies that some organic produce is often lower in nitrates and higher in antioxidants than
conventional food.
Taste Better and Truer Flavor
Compiled by author from organic.org
Food Industry:
Investor Outlook- Support Organics
23. •Family farms that are certified organic farms have a double economic benefit: they are profitable and they farm
in harmony with their surrounding environment
•Whether the farm is a 4-acre orchard or a 4,000-acre wheat farm, organic is a beneficial practice that is
genuinely family-friendly
Assist Family Farmers
of all Sizes
•30% of our cropland is planted in GMOs. Organic is the only de facto seal of reassurance against these and other
modern, lab-produced additions to our food supply, and the only food term with built in inspections and federal
regulatory teeth
Avoid Hasty and Poor
Science in Your Food
•Whether it is local fruit, imported coffee or artisan cheese, organic can demonstrate a reverence for the land
and its people
•Organic has proven to use less energy (on average, about 30% less), is beneficial to soil, water and local habitat,
and is safer for the people who harvest our food
Eating with a Sense of
Place
•Native plants, birds and hawks return usually after the first season of organic practices; beneficial insects allow
for a greater balance, and indigenous animals find these farms a safe haven
•An organic farm is the equivalent of reforestation and industrial farms are the equivalent of clear cutting of
native habitat with a focus on high farm yields
Promote Biodiversity
•Organic is not necessarily the most efficient farming system in the short run- It is slower, harder, more complex
and more labor-intensive. But for the sake of culture everywhere, from permaculture to human culture, organic
should be celebrated at every table
Celebrate the Culture
of Agriculture
Compiled by author from organic.org
Food Industry:
Investor Outlook- Support Organics
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