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TRENDS in CALIFORNIA
ORGANIC AGRICULTURE
Karen Klonsky
Dept. of Ag. & Resource Economics
University of California, Davis
$555 BILLION US FOOD
MARKET in 2003
1.9% organic food
98.2%
non organic
Source: Nutrition Business Journal
US RETAIL SALES OF ORGANIC FOOD
$10.4 Billion in 2003
Meat Fish Poultry
Sauces Condiments
Snack foods
Bread & grains
Packaged foods
Dairy products
Nondairy beverages
75
229
484
966
1,326
1,385
1,581
4,336
Fruits & vegetables
Million dollars
Source: Organic Trade Association’s 2004 Manufacturer Survey
US RETAIL SALES OF ORGANIC FOOD
Per Cent Growth in 2003
79
Meat Fish Poultry
Sauces Condiments
24
30
Snack foods
23
Bread & grains
Packaged foods
16
Dairy products
20
Nondairy beverages
19
Fruits & vegetables
20
Million dollars
Source: Organic Trade Association’s 2004 Manufacturer Survey
US ORGANIC FRUIT and VEGETABLES
$4.3 billion in retail sales - 2003
Dried $58 mil
Fresh $4.0 billion
Frozen $149 mil
Canned $110 mil
Source: Organic Trade Association’s 2004 Manufacturer Survey
US ORGANIC FRUIT and VEGETABLES
PENETRATION 1997 - 2003
5
4
3
2
1
0
97
98
99
'00
'01
'02
Source: Organic Trade Association’s 2004 Manufacturer Survey
'03
US CERTIFIED ORGANIC
ACREAGE by CATEGORY, 2003
Fallow
4%
Other
7%
Field crops
& hay
47%
Pasture
34%
Fruit
4%
Source: Economic Research Service, USDA
Vegetables
4%
CA PERCENTAGE of US CERTIFIED
ORGANIC ACREAGE, 2001
CA 163,158 acres, US 2,343,924 acres
CA % of US acreage
50
23
7
3
1
All organic Field crops
Fruits &
acreage
& hay
vegetables
Pasture
Other
Source: Economic Research Service, USDA
US CERTIFIED ORGANIC VEGETABLE
ACREAGE by STATE, 2003
78,905
80,000
18,111
Other
9,555
Oregon
60,000
17,020
40,000
Washingt
on
9,343
48,447
20,000
462
367
262
0
3,586
Tomatoes
11,420
7,415
Lettuce
Carrots
26,026
Other
Total
Source: Economic Research Service, USDA
California
ACRES OF CA ORGANIC COMMODITIES
2003 – 172,233 ACRES
200
Nursery &
flowers
1,000 Acres
150
livestock, poultry
& products
100
Vegetables
50
0
1992
field crops
fruit & nuts
1994
1996
1998
2000
2002
Source: CDFA Organic Program
SALES OF ORGANIC COMMODITIES
2003 SALES - $330 MILLION
400
Nursery &
flowers
$ MILLION
300
livestock, poultry
& products
200
Vegetables
field crops
100
fruit & nuts
0
1992
1994
1996
1998
2000
2002
Source: CDFA Organic Program
PER CENT CASH INCOME by
COMMODITY GROUP, CA 2003
Commodity
Group
% of all
CA sales
Organic as
% of CA
9%
% of CA
organic
sales
5%
Field crops
Fruit and nut crops
27
35
1.5
Nursery,
greenhouse &
floriculture
11
2
.3
Vegetable crops
24
46
2.2
Livestock, poultry,
24
12
.6
.6%
NUMBER OF CA ORGANIC GROWERS
2003 – 1,765 GROWERS*
2,000
Total
1,500
fruit & nuts
Vegetables
1,000
field crops
500
0
1992
1994
1996
1998
2000
* Excludes registered growers reporting no sales
2002
Nursery &
flowers
livestock,
poultry
Source: CDFA Organic Program
INDEX NUMBERS of GROWTH in
CA ORGANIC AG, 1992 - 2003
500
Acres
Sales
Growers
400
300
200
100
0
1992
1994
1996
1998
2000
2002
SALES of TOP 10 ORGANIC
COMMODITIES, CA 2003
Rank
Commodity
Sales $
million
% of
organic
% of CA
total
1
Lettuces
$41
11.7%
2%
2
Grapes
26
7.4
1
3
Dairy
23
6.8
.5
4
Carrots
19
5.4
4
5
Strawberry
18
5.1
2
6
Tomato - all
11
3.3
1
7
Chicken (meat)
11
3.3
2
8
Spinach
11
3.1
7
9
Rice
9
2.6
2
10
Almond
6
1.9
.4
ACRES OF CA ORGANIC COMMODITIES
2003 – 172,233 ACRES
livestock,
poultry &
products
8%
Nursery &
flowers
0%
fruit & nuts
27%
Vegetables
26%
field crops
39%
Source: CDFA Organic Program
CA ORGANIC GROWERS
2003 – 1,765
nursery &
flowers
8%
livestock &
poultry
3%
field crops
11%
vegetables
23%
Source: CDFA Organic Program
fruit & nuts
55%
CA ORGANIC SALES
2003 – $330 MILLION
livestock,
poultry &
products
10%
Nursery &
flowers
2%
fruit & nuts
36%
Vegetables
47%
field crops
5%
Source: CDFA Organic Program
ORGANIC VEGETABLE CROPS
CA 2003
44,500
% of CA
Veggies
2.3
% of
Organic
26%
521
2.2*
23%
$155 million
2.2
47%
Number
Acres
Growers
Sales
* Organic as percentage of all CA farms, not just vegetables
INCOME CONCENTRATION in
CA ORGANIC AG, 2003
Percent of Total
60
Growers
Sales
36
24
10
9
1
$0-$4,999
1
$5,000$9,999
3
$10,000$49,999
4
10 9
6
12
11
3
4
$50,000- $100,000- $250,000- $500,000- $1,000,000
$99,999 $249,999 $499,000 $999,999 and above
OVERALL TRENDS
Organic sales in CA are growing at
double digit rates without an increase in
the number of growers.
Vegetable crops and fruits dominate.
Livestock and poultry sales are now
growing at a faster rate than produce.
The National Organic Rule does not seem
to have had a negative impact on CA.