Profile updated April 2008.

Organic food sales grew 20 percent or more annually through the 1990s. According to the Organic Trade Association's 2007 Manufacturer Survey, organic food sales totaled nearly $17 billion in 2006, up from $14.6 billion in 2005. Organic food sales represented approximately 3 percent of total U.S. food sales in 2006.
 

Organics are reaching mainstream. For the first time, more organic food was purchased in conventional supermarkets in 2000 than in any other venue. Based on industry estimates, nearly half of the $7.8 billion spent on organic food in 2000 was purchased in conventional retail outlets. Supermarkets and other mass markets now account for 58 percent of all organic sales.

 
According to USDA’s Economic Research Service, increased sales of organic and natural food products are being driven by health-conscious consumers. Natural foods supermarkets and other specialized retailers are benefiting from this trend. Food products offered by natural foods supermarkets tend to be less processed and frequently are free of preservatives, hormones and artificial ingredients.

USDA standards for organic food were implemented in 2002. Organic pork is raised in a production system that promotes and enhances biodiversity and biological cycles. It is based on minimal use of off-farm inputs. Pigs intended for meat products must be raised organically from the last third of gestation and without the use of antibiotics and growth hormone stimulants. In general, organic foods are minimally processed with artificial ingredients or preservatives.

According to the USDA, certified organic means "agricultural products have been grown and processed according to specific standards of various state and private certification organizations." Certifying agents review farm applications and qualified inspectors conduct annual on-site inspections. Farm records track all management practices and materials used in organic production.

Farm and processing operations that grow and process organic foods must be certified by USDA-accredited certifying agents. A certified operation must have a written Organic Farm Plan available to the public on request. An exception to the certification rule is made for operations with gross agricultural incomes of $5,000 or less.

Marketing channels for organic products depend on the size of market. For national distribution, organic products in general tend to move from the farm level to a cooperative processor and on to retailers. Another possibility is for production to move from a processor and then to a distributor before reaching retail outlets.

Due to increased feed costs, organically produced pork tends to be more expensive to raise compared to pork raised conventionally. Thus, consumers pay more. Unlike other organic products, organic meat tends to be marketed through natural foods stores rather than supermarket chains.

Local distribution of organically produced pork ranges from consumers purchasing directly from a farm location, through farmers’ markets or via the Internet.

In January 2005, the Agricultural Marketing Service announced rules to exempt certain organic producers and marketers from paying assessments under the research and promotion programs. Pork is one of 17 national research and promotion programs. The change will exempt producers and marketers operating under a National Organic Program approved organic system plan from paying assessments, provided they produce and market only commodities eligible for a "100 percent organic" label. The new Final Rule to Exempt Organic Producers from Assessment by Research and Promotion Programs is available at:  http://www.ams.usda.gov/2002farmbill/organicexempt/.

Processing

USDA-accredited certifying agents must also certify processors of organic foods. A certified operation must have a written Organic Farm Plan available to the public on request. Processors with organic sales totaling $5,000 or less are exempt from the certification rule.

Non-certified processors, producers and handlers are allowed to use the term “organic” in compliance with labeling requirements.

A list of certified processors is currently being compiled by the USDA's Economic Research Service.

Sources 
The National Organic Program.

Organic Agriculture, Briefing Room, ERS, USDA. 

Organic Production, Briefing Room, ERS, USDA.

Organic Trade Association Overview.


Profile created February 2003 and updated April 2008.