MOSES: “Midwest Organic Food Supply Growing, Still Not Keeping Up With National Consumer Demand. More Midwest Producers Needed”

Contacts:
Doug Nopar, MOSES Communications Coordinator 507-450-7458
Or Faye Jones, MOSES Executive Director 715-772-3153 or 715-495-2064

Leaders in the organic farming community Friday re-issued their call for more organic producers in the Midwest. Speaking at a news conference at the 17th annual Upper Midwest Organic Farming Conference being held in La Crosse, Wisconsin, officials said that although the number of organic producers is on the increase, the supply of organic food is still not keeping up with national consumer demand. This conference was attended by more than 2200 people and is the largest conference of its kind in the United States

According to Faye Jones, executive director of the Spring Valley, Wisconsin-based Midwest Organic and Sustainable Education Service, or MOSES, there is continually growing consumer demand for organic food in the US and around the world. Jones said, “It is abundantly clear that we need more Midwestern organic producers, whether it be for dairy, meat, poultry, produce, or livestock feed and grain. The demand for organic food is still way ahead of our current supply, and there is a significant on-farm price premium for organically grown products.”

Jim Riddle is an organic farmer, inspector and certification trainer from Winona, Minnesota that was recently named as the University of Minnesota’s new outreach coordinator for organic agriculture at its Southern Experiment Station. Riddle pointed out that Minnesota leads the nation in organic corn and soybean production, however that there is still considerable opportunity for more producers to tap into this growing market. He noted that farmers producing organic corn and soybeans receive two to three times the price that conventional farmers receive. Riddle is the immediate past chairman of the USDA’s National Organic Standards Board.

Strong consumer interest in organic dairy products combined with significant farm-gate price premiums for organic milk has presented conventional dairy producers with an important opportunity as well. Horizon Organic is the largest producer of organic dairy products in the U.S. According to Jule Taylor, Horizon’s Director of Milk Supply, “Keeping family farms in the business of farming is the heart of our company. We currently partner with 325 family farmers, and are helping another 179 convert to organic practices.” She added that the demand for organic dairy products continues to outpace supply. “We could use many more organic dairy farmers in the Horizon family.”

Consumer purchases of organic food have grown by 20% per year since 1990. U.S. organic food sales were $12 billion in 2004. Wisconsin’s number of certified organic farmers grew to 640 in 2005, up by 25% from 2003.

Additional Organic Agriculture facts follow, including Wisconsin county-by-county rankings . . .
Organic Food and Farming 2006 Background Statistics

Consumer Demand
n U.S. consumer demand for organic food has been growing at 20% per year for the last 15 years – Organic Trade Association (www.ota.com)
n Consumer Reports 2005 survey – Nearly two thirds of U.S. consumers bought organic products in the last year
n Whole Foods Market national survey completed in August, 2005 found that 65% of Americans had tried organic foods and beverages, up from 54% in surveys conducted in 2003 and 2004
n Nutrition Business Journal projects U.S. organic food sales to continue to grow at 10-15% per year ($2 billion additional sales per year) from 2006-2010.
n The supply of organic milk is only meeting 85% of consumer demand, according to Organic Valley’s Theresa Marquez (Cheese Industry News, May, 2005)

On-Farm Financial Benefits
n The base pay for organic milk is $20 to $23 per hundredweight vs. $13-15 per hundredweight for non-organic milk or about 50% higher, as reported in Organic Agriculture in Wisconsin, 2005 Status Report
n Farmers raising organic corn and soybeans sell their product at two to three times the price of their conventional counterparts. On February 15, Cashton Farm Supply was paying $5/bushel for organic corn, three times more than they were paying for non-organic corn ($1.73). Organic soybeans were being sold there for $12 per bushel, more than twice the price of non-organic beans ($5.19).
n The net income in 2004 for organic farmers in Wisconsin was 25% higher than non-organic farmers — Organic Agriculture in Wisconsin, 2005 Status Report

Wisconsin Organic Agriculture Statistics (Organic Agriculture in Wisconsin, 2005 Status Report)
n On the national level, Wisconsin is #1 in organic dairy farms, #1 in organic livestock, #2 in organic corn, #1 in layer hens, #3 in beef cows

n On the national level, Wisconsin is #2 in total certified organic operations (behind California), and has increased by 25% from 512 in 2003 to 640 certified growers in 2005

n Of the 6 Wisconsin counties with the highest number of certified organic producers, 5 are in the southwest quadrant of the state: Vernon County (113); Monroe County (33); Grant County (32); Clark County (25); Dane County (24); Trempeleau County (22). Other counties with a significant number are: Lafayette (20); Wood (15);

Dodge (17); Chippewa (15); Columbia (15); Marathon (16); Crawford (14);

Buffalo (14); Iowa (14); Dunn (14); Jackson (12); Richland (13).

Minnesota and Iowa Organic Statistics (USDA Economic Research Service 2005
report)
n Minnesota is #1 in organic corn and soybeans produced; Iowa is #3 in organic corn and #2 in organic soybeans
n Iowa is #4 in number of certified organic farmers (448) and Minnesota is #5 (392)

Compiled by Doug Nopar, Midwest Organic and Sustainable Education Service, 507-450-7458