New report by OTA
by Redaktion (comments: 0)
According to a new report by OTA, unreliable organic supplies are stunting the growth of more than half of the US organic food manufacturers. About 55 % of the survey respondents stated that a lack of dependable supply restricted their company from generating more sales this year, compared with 52 % last year. Among the categories hit were meat and dairy products. (Picture: Everybodys)
Despite these challenges, the market continues to see a strong growth, mirrored by the expanding range of organic products and the retail outlets carrying them. The OTA 2007 Manufacturer Survey found that organic foods reached sales of $ 16.7 billion in 2006. Demand for meat, currently the smallest category, increased by 55 % last year. Dairy, the largest segment, had an increase in sales of 25 %. Fruit and vegetables showed the smallest growth rate between 2005 and 2006 (11 %), reports Food Navigator.
According to OTA, organic manufacturers are also increasingly using the USDA organic seal. Almost 60 % of respondents said they displayed the USDA Organic seal on some of their products and 42 % who do not currently use it said they intended to do so in the future.
Mass market grocery stores represented the largest channel for organic products, accounting for 38 % of US organic food sales in 2006. 8 % of organic food and beverage sales were achieved through mass merchandisers and club stores. Sales also increased in foodservice outlets as well as via Internet and mail orders.
OTA’s scope of the sales tracked for its annual report were more far-reaching than other market studies, with tracking natural food large grocery chains, natural food small chains and independent stores, supermarkets, mass merchandisers like Wal-Mart, club stores, food service, farmers' markets, export, internet and mail order, boutique and specialty shops, as well as department stores.
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