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ORGANIC FOOD INDUSTRY FACES A SUPPLY CRUNCH

CONSUMERS PAYING MORE AS FARMERS STRUGGLE TO MEET DEMAND

farmers_mkt_02_o_large.jpgThe organic market makes up nearly 3 percent of the overall food market, a share that has increased every year for the past decade. It’s a small but fast-growing segment of an otherwise sluggish food industry.

But while the farmland dedicated to organic crops has expanded, it still makes up just a sliver of the nation’s total: a half percent each of all cropland and pastureland in 2005, according to the latest statistics from the U.S. Department of Agriculture.

One reason for the lagging supply is the fact that it takes a minimum of three years to transition cropland farmed conventionally to an organic operation.

The three-year transition to an organic farm “is rarely done strictly as a matter of economics,” Routh saod. It’s often as much a philosophical move, an acceptance of a particular belief system. Still, some farmers who considered going organic two or three years ago may have been tempted by promise of record prices to keep their farms conventional.

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One Response to “ORGANIC FOOD INDUSTRY FACES A SUPPLY CRUNCH”

  1. Connecting News, Commentaries and Blogs at NineReports.com - Says:

    [...] blogs are in the news Request a Trackback ORGANIC FOOD INDUSTRY FACES A SUPPLY CRUNCH CONSUMERS PAYING MORE AS FARMERS STRUGGLE TO MEET DEMAND The organic market makes up nearly 3 [...]

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