Organic Food: Economics and Issues (Agriculture Issues and Policies Series)

The organic sector has expanded rapidly over the last decade, as retail sales of organic food increased to $15.7 billion in 2006. As sales have grown, so have the number and types of outlets selling organic products. USDA's Economic Research Service surveyed certified organic intermediaries in the United States to collect information on basic characteristics of the sector in 2004, as well as its marketing and procurement practices. This book uses the survey findings to present a baseline view of the organic handling sector. A large share of organic handlers are mixed operations that handle both organic and conventional products, and most began as conventional firms that converted to handling organic products. Most organic products are also sold domestically, with nearly three-quarters sold nationally or regionally. The National Organic Program (NOP) was created within the USDA to establish standards for producers and processors of organic foods, and permit such operations to label their products with a "USDA Organic" seal after being officially certified by USDA-accredited agents. The purpose of the program, as discussed in this book, is to give consumers confidence in the legitimacy of the products.