Friday, July 07, 2006

Demand for organic food outstrips supply

America's appetite for organic food is so strong that supply just can't keep up with demand. Organic products still have only a tiny slice, about 2.5 percent, of the nation's food market. But the slice is expanding at a feverish pace.

Growth in sales of organic food has been 15 percent to 21 percent each year, compared with 2 percent to 4 percent for total food sales.

Mainstream supermarkets, eyeing the success of organic retailers such as Whole Foods, have rushed to meet demand. The Kroger Co., Safeway Inc. and SuperValu Inc., which owns Albertson's LLC, are among those selling their own organic brands. Wal-Mart Stores Inc. said earlier this year it would double its organic offerings.

The number of organic farms — an estimated 10,000 — is also increasing, but not fast enough. As a result, organic manufacturers are looking for ingredients outside the United States in places like Europe, Bolivia, Venezuela and South Africa.

The dilemma of how to fill the gap between organic supply and demand is part of a long-running debate within America's booming organic industry. For many enthusiasts, organic is about more than the food on their plates; it's a way to improve the environment where they live and help keep small-scale farmers in business.

Switching to organic is a difficult proposition. Vegetable grower Scott Woodard is learning through trial and error on his Putnam Valley, N.Y., farm. One costly mistake: Conventional farmers can plant seeds when they want and use pesticides to kill hungry insect larvae. If Woodard had waited three weeks to plant, the bugs that ate his seeds would have hatched and left. Organic seeds can be double the price of conventional.

"There's not a lot of information out there," Woodard said. "We try to do the best we can. Sometimes it's too late, but then we learn for next time."

The industry's Organic Trade Association is trying to become more of a resource for individual farmers.

Caren Wilcox, the group's executive director, described how an Illinois farmer showed up in May at an industry show in Chicago.

"He said, `I want to get certified. Help me,'" Wilcox said. "It was a smart thing to do, but the fact that he had to get into his car and go down to McCormick Center says something about the availability of information."

Steve - music to our ears!

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