Dive Brief:
- Organic foods are on the rise in the U.S., and revenue for the sector has tripled over the past 10 years to a record $36 billion in 2014. However, that growth has not come without pains.
- High demand is a constant struggle for organic producers, and shortages of organic feed and produce have sent prices for organic foods soaring. Some organic livestock producers are having to import organic feed because they can't find enough in the U.S.
- Organic Trade Association (OTA) executive director Laura Batcha told the Argus Leader that some private-sector food makers and retailers are buying land where they can grow organic produce, or are offering long-term contracts to compensate producers while they transition to organic.
Dive Insight:
Experts say this rise in demand is fueled by a consumer health mindset that forces companies to rethink product portfolios and strategy for product development. Meeting the demand is also complicated by the lengthy and costly transition to organic for framers and ranchers. Some are deterred by lower crop yields and increased operating outlays to make the switch.