Title: Organic production and marketing newsletter
ALL VOLUMES CITATION PDF VIEWER THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00090282/00012
 Material Information
Title: Organic production and marketing newsletter
Series Title: Organic production and marketing newsletter
Physical Description: Serial
Language: English
Creator: Horticultural Sciences Department, Institute of Food and Agricultural Sciences, University of Florida
Publisher: Horticultural Sciences Department, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: March 2004
 Record Information
Bibliographic ID: UF00090282
Volume ID: VID00012
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Downloads

This item has the following downloads:

Mar04 ( PDF )


Full Text

Organic
Production
and
Marketing
Newsletter
J. J. Ferguson,
Editor
Professor and
Extension
Horticulturist
UF/IFAS -
Horticultural
lSciences Dept.
PO Box 110690/
Gainesville FL
32611-0690
jjfn _ifas.ufl.edu
The purpose of this newsletter is to provide production/marketing information about organic and related sustainable
farming practices.
Contributions are welcome.

Organic Production and Marketing Newsletter

March 2004

Chinese Fruit and Vegetable Production Increasing
As China Surges, It Also Proves a Buttress to American Strength
Don't Squeeze the Organic Bananas
Avocado Sales Grow
Raisins, Prunes, Pecans
Non-Organic Chips?
Organic Marketing Order Assessments
Organic Standards
Organic Retailing
Florida Certified Organic Citrus Groves






Organic Production and Marketing Newsletter


March 2004




Chinese Fruit and Vegetable Production Increasing
The Packer (Oct. 3, 2003)

With its 1.3 billion population, China has attracted US produce exporters but has also become a serious
competitor to the U.S. produce industry and is expected to "fundamentally alter the American marketplace".
Huge annual fruit and vegetable crops however, may flood the market and China may have to specialize in
areas they can dominate. For now, the primary markets for Chinese produce include Japan, South Korea,
the US, Hong Kong, and Indonesia.

Two specific items that China is winning the battles on are garlic and apple juice concentrate. Until 1984,
garlic was grown only for domestic consumption. Today China boasts the world's largest garlic industry and
grows new varieties that western supermarkets want. Other related crops like shallots, onions, and leeks
also accounted for $403 million in sales.

Foreign investment in China has also increased. Technological improvements are also being made,
especially in Jining City's 23 square mile, high tech development zone. US companies like California's
Sunkist Growers are exploring how to participate in the China's citrus market.


Major Fruit and Vegetable Producing Countries

Production

Country Vegetables Fruits/Nuts Source

MT
(millions)

300
China Briefing (China
China 43% of world production 70 raegic
(1st place) Strategic Ltd.)
(1St place)

China Briefing (China
India 70 (2nd place) 50 China Briefing (China
Strategic Ltd.)

US 57.8 (3rd place) 30.4 USDA

22 million hectares or 8.9 million acres are now in fruit and vegetable production in China





Since China joined the World Trade Organization in 2001, farmers there have been encouraged to grow
organically to make products more appealing to international buyers and to receive premium prices for them.

During the 1970s Chinese farmers were ordered to make greater use of pesticides to aid them in feeding the
world's largest population, between 900 million and 1 billion at the time. By the 1990s, China became the
world's largest pesticide user, according to the Pesticide Action Network. However, the current trend is
towards organic production with the most growth in areas near a point of export, for example, the 500 acres
of organic vegetables in Shandong province shipped from the port city of Qingdao.

Chinese growers are developing clientele in the US, Canada, trendy Japanese restaurants, and Europe,
often contracting prices in advance with a Chinese broker. In Yingkou in northeastern China, an organic,
export-oriented, fruit and vegetable, seafood, meat, and flower industry for Russia, Japan and South Korea
is developing. Wuyuan Organic Foods, a major organic green tea producer in northeastern Jiangxi province,
also sells organic mushrooms and is pursuing certification for bamboo shoots, peaches and pears.

Organic growers have also formed cooperatives, pooling part of their profits to support coop members
whose crops have failed that season.

Haines City Citrus Cooperative in Florida also has a similar arrangement, especially for growers whose
crops may have been lost in freezes. This may be an idea worth exploring for Florida organic growers.

[ Archives ] [ University of Florida ] [ UF/IFAS ] [ Horticultural Sciences Department ]
[ UF/IFAS Publications ]






Organic Production and Marketing Newsletter


March 2004




As China Surges, It Also Proves a Buttress to American Strength
Wall Street Journal (January 30, 2004)

China's rise as an economic and manufacturing power both "supports the American superpower and
embodies some of its self-generated vulnerabilities" by supplying the US "gargantuan appetite for
foreign goods and capital." The US-China trade deficit has been increasing since the 1980s and from
December 2002 to November 2003 reached about $123 billion dollars (Fig. 1). As a "hyper debtor" the
US has become increasingly reliant on other trading partners like China that hold a large portion of US
foreign debt, potentially increasing China's leverage over the US, especially in international policy.
China holds $120 billion in US Treasury debt and probably a similar amount in Fannie Maes and other
dollar-dominated securities whereas direct foreign investment by the US in China, according to the
Bureau of Economic Analysis is only about $10.2 billion.

The US industrial base is also declining (14% of Gross Domestic Product or GDP) and moving to other
countries like China (manufacturing, mining and related activities total 51% of GDP) in search of cheap
labor. However, many computer components like the Logitech wireless mouse manufactured in China,
provides low paying jobs but also captures only about $3.00 of the $40.00 retail price of this product,
with most of the profit going to US-based and other multinational corporations. Migration of not only
menial jobs but also possibly IBM, Intel, and Goldman Sacks white-collar jobs to China is another
concern.






Widening Trade Deficit Between the US and China


140

120
100

80

60
40

20

0


1990


1995


2000


2003


] US Imports from China


I US exports to China


[ Archives ] [ University of Florida ] [ UF/IFAS ] [ Horticultural Sciences Department 1
[ UF/IFAS Publications ]


9,

'


'
'9

'9

9'


1985
1985


/ .I






Organic Production and Marketing Newsletter


March 2004




Don't Squeeze the Organic Bananas
The Packer (Sept. 15, 2003)

Although organic bananas account for less than 0.5% of all current US banana sales, Turbana Corp.
Miami, Florida has increased sales 34% from 2001 to 2002 and expects this trend to continue,
especially with whole food stores leading the way. Conventional stores are also offering conventional
and organic bananas.

As with all organic, these bananas must be segregated from conventional bananas and labeled with
their own stickers to prevent mixing. Shippers report that consumers are more confident about organic
banana certification now that many farms are certified by the USDA and carry the USDA seal.

[ Archives ] [ University of Florida ] [ UF/IFAS ] [ Horticultural Sciences Department ]
[ UF/IFAS Publications ]






Organic Production and Marketing Newsletter


March 2004




Avocado Sales Grow
The Packer (Sept. 22, 2003)

As conventional avocados are just reaching a mainstream popularity spike, organic avocados are
being successfully marketed as well. Companies such as Eco-Farm Corp. and Pacific Organic
Produce, both based in California, have seen dramatic increases in organic avocado sales over the
last few years. Eco-farm Corp has been growing and marketing organic avocados since the 1970s and
will be bringing 500 acres of new planting into production soon. Pacific Organic in San Francisco sold
57,000 boxes of organic avocados in 2002 and planned to import 90-100,000 boxes of organic
avocados from Chile in 2003.

[ Archives ] [ University of Florida ] [ UF/IFAS ] [ Horticultural Sciences Department ]
[ UF/IFAS Publications ]






Organic Production and Marketing Newsletter


March 2004




Raisins, Prunes, Pecans
The Packer

Dried fruits are now being included in the organic category. Natural Selection Foods has added organic
raisins in 1.5 ounce snack packs and 7-ounce boxes, and dried plums in 15 ounce canisters. Organics
are also making inroads in the nut category. It is reported that Almond growers can receive high prices
for organic almonds if they are willing to follow the numerous USDA restrictions. There is a growing
demand for organic pecans, at this time however, there are few pecan growers that are certified
organic. Organic peanuts are also becoming more available, grown mostly in New Mexico, and
marketed mostly on the West Coast.

[ Archives ] [ University of Florida ] [ UF/IFAS ] [ Horticultural Sciences Department ]
[ UF/IFAS Publications ]






Organic Production and Marketing Newsletter


March 2004




Non-Organic Chips?
The Packer (Oct. 13, 2003)

Hitachi has developed a radio frequency identification technology (RFID) chip small enough to be
embedded (nearly invisibly) into food packages or the inedible parts of fresh fruits and vegetables.
Measuring only 0.4 millimeters square, the chip has a tiny antenna that allows an external device to
read encoded information stored in the chip for the purpose of tracing the product. Giant retailing
chains have hitherto used this technology for monitoring inventory in and out of warehouses but
consumers have been concerned about the use of this technology beyond the retail store level. (Don't
eat the packaging or the "inedible parts" of fresh fruits and vegetables.)

[ Archives ] [ University of Florida ] [ UF/IFAS ] [ Horticultural Sciences Department 1
[ UF/IFAS Publications ]






Organic Production and Marketing Newsletter


March 2004




Organic Marketing Order Assessments
The Packer (Dec. 8, 2003)

On Dec. 1st, the USDA issued regulations exempting exclusively organic growers from having to pay
assessments to regional marketing order programs, as previously mandated under the 2002 farm bill.
Mixed-operation growers will not be exempt. Among those items exempted are: California stone fruits,
dates, grapes, and raisins, Florida avocados and tomatoes, Georgia Vidalia onions, Texas citrus,
melons, and onions, and Oregon/Washington pears.

Assessments on organic produce make up just 1% of the total assessed money earmarked for the
promotional budgets of the 28 commodities affected for the marketing orders but groups like Texas
Citrus Mutual see the organic industry growing in that state and are concerned organic growers of big
Texas crops like citrus, watermelon, cantaloupe, and onions will not be contributing to these crop
assessments.

[ Archives ] [ University of Florida ] [ UF/IFAS ] [ Horticultural Sciences Department ]
[ UF/IFAS Publications ]






Organic Production and Marketing Newsletter


March 2004




Organic Standards
The Packer (Dec. 1, 2003)

COPES (Certified Organic Produce Export Strategy program), based in California, held its first seminar
this past November. The main focus was on opening the organic markets in both Europe and Japan for
U.S. growers. One important point made was that shippers should understand both their prospective
consumers as well as the import requirements for each individual country before attempting to open a
new market. Japan, for example, has stringent phytosanitary standards and package labeling much
different than producers are accustomed to in the United States. COPES will be conducting several
other seminars in the near future.

The U.S. based Organic Trade Association is calling on the Canadian organic industry to create a
mandatory requirement for Canadian products to meet regulatory standards set by the Canadian
government. This would unify Canada's organic standards and create a program similar to the National
Organic Program that began in the U.S. in 2002. The current organic certification process is voluntary.
Mandatory standards would facilitate trade with other countries like the US that already have such
standards in place.

[ Archives ] [ University of Florida ] [ UF/IFAS ] [ Horticultural Sciences Department ]
[ UF/IFAS Publications I






Organic Production and Marketing Newsletter


March 2004




Organic Retailing
The Packer (Oct. 27, 2003)

The organic industry is growing so quickly that retailers are re-evaluating the products they offer and
how they market them. Organic food sales are growing at an annual rate of 20 to 25% each year.
Organic produce makes up 42% of retail organic food sales.

In a recent workshop in Orlando, "Use Organic Labeling To Your Advantage", two conventional retail
managers, both of major supermarket chains, described their organic produce program so attendees
could see different ways to handle the category.

One retailer predominantly segregates organic produce into its own section of the store. However,
where he has experimented with integration, such as with packaged salads, he has seen triple-digit
growth. The second manager reported that his stores began with segregation, but began
experimenting with integration five years ago and found huge sales growth in those organic products
and now predominantly integrates organic in the same section as conventional produce.

He developed a sign program, using yellow tags to indicate where the organic are located. He
explained that if you segregate the organic produce into its own section, customers have to make a
conscious decision to go to that section.

[ Archives ] [ University of Florida ] [ UF/IFAS ] [ Horticultural Sciences Department ]
[ UF/IFAS Publications ]







Organic Production and Marketing Newsletter


March 2004




Florida Certified Organic Citrus Groves

As of 2003, certified organic citrus groves are required to register with the Florida Department of
Citrus, including grove GPS coordinates, a listing of cultivars grown, estimates of crop yield and other
information related to fruit movement. This registration procedure provides an accurate determination
of the number of certified organic citrus groves. In the pie chart below, I have listed the number of such
groves in different counties (Fig. 1). Each grove unit is considered separately according to GPS
coordinates. Although Lake County has the largest number of groves at 10, some of these groves are
owned by one party.


Florida Certified Organic Citrus Groves Alachua (1)
Hardee (3)
2 1 1 1 11 1 Highlands (1)
3 Hillsborough (1)
Indian River (5)
0 Lake (10)
N Orange (1)
7 o Palm Beach (1)
0 Pasco (2)
1 1 Polk (7)
o Putnam (3)
D St. Lucie (2)
a Volusia (1)



[ Archives ] [ University of Florida ] [ UF/IFAS ] [ Horticultural Sciences Department ]
[ UF/IFAS Publications ]




University of Florida Home Page
© 2004 - 2010 University of Florida George A. Smathers Libraries.
All rights reserved.

Acceptable Use, Copyright, and Disclaimer Statement
Last updated October 10, 2010 - - mvs