Organic produce demand more than doubled between 2011 and 2015, but despite skyrocketing growth in the sector, supply growth isn’t keeping pace.
The demand for organic produce has increased dramatically in recent years, so much so that approximately 13 percent of US produce sales are now organic. This rapid growth in demand has put a strain on supplies, though. For a variety of reasons, production hasn’t been keeping pace with demand despite the fact that organic produce acreage has about doubled over the past decade.
Despite a premium of 30 to 50 percent, many farmers see organic production to be risky, not only because of the three-year transition period, but also because of concerns about labor, price stability and the absence of support systems.
CoBank says food companies will continue to rely on imported produce to meet organic demand in the near to medium term.