Organic foods are seizing shelf space in the fresh-food sections of U.S. grocery stores but struggling to break into the bread and meat aisles.
Organic-product sales that farmers made to businesses, including Dean Foods and Walmart, totaled $5.5 billion in 2014, according to a U.S. Department of Agriculture survey of organic growers. That’s 72 percent higher than in 2008, the last time a similar survey was conducted.
Sales so far have been concentrated in fresh fruits and vegetables, as well as in perishable milk and eggs, due to consumer concerns over synthetic farm chemicals. For organics to go mainstream, they need growth in grains and meats, where genetically modified seeds and livestock production methods are harder to change.
“That’s a critical frontier for organics,” said Catherine Badgley, a University of Michigan ecology professor. “I think little by little, we’re getting there, but there are some areas where growth is more difficult to achieve.”
Producers of organic meats and grains are struggling to boost production even as big retailers such as Target and Costco are expanding their sales of sustainable products.
That’s because of hurdles that fresh foods such as fruits and vegetables don’t face, said Jeff Moyer, executive director of the Rodale Institute, which focuses on research and promotion of organic farming, in Kutztown, Pa.
“Fresh produce is something you purchase as a whole food and consume directly,” said Moyer, a former chairman of the National Organic Standards Board that helps the USDA craft organics rules. “It was a good place for the organic movement to start, because you don’t need 10,000 acres to do it.”
Consumer interest has driven a movement toward foods seen as more sustainable and healthy. McDonald’s has announced a plan to cut antibiotics use in poultry, and Starbucks says it will pull artificial coloring from pumpkin spice lattes.
Still, organic revenues remain less than 2 percent of all U.S. farmer income, according to the USDA.
The farm value of all organic foods remains less than that of the Nebraska corn crop alone. The state is the third-biggest producer of corn, the most valuable U.S. farm product.
Organic by the numbers
$35.9 billion
The total amount of retail sales of certified organic foods in 2014, up 11 percent from 2013
5.1%
Retail sales of certified organic foods of all U.S. grocery spending
$13 billion
Amount organic fruits and vegetables accounted for in the retail sales of organic foodBloomberg News
