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Home » Organic food industry blooms

Organic food industry blooms

Acreage increases statewide; HuckleberryÂ’s to open in South Hill store

February 26, 1997
Emily Brandler

The organic food industry is growing at a rapid pace in the U.S., and agricultural experts here say Washington states organic food production reflects that trend, as does rising demand from Spokane-area consumers for the food.


Organic food and beverages are made from plants and animals that have been grown or raised without the use of synthetic fertilizers, pesticides, or growth hormones, says the U.S. Department of Agriculture. Several years ago, the USDA set standards that growers and handlers must meet before they can label a food as organic. Certification is administered by state agencies and private organizations.


Although organic food still represents a small percentage of overall food consumption in the U.S., the industry has been growing at a rate of 20 percent a year, says John Reganold, Pullman-based professor of soil science at Washington State University, which plans to launch a degree program in organic agricultural systems this fall.


Organic food sales in the U.S. rose to $13.8 billion in 2005, an increase of more than 16 percent from 2004, says the Greenfield, Mass.-based Organic Trade Association. Organic food sales in 2005 represented 2.5 percent of total U.S. food sales, up from 2.1 percent in 2004, the association says.


By 2010, sales of such food are expected to rise to an estimated $23.8 billion, or 3.5 percent of total retail food sales in the U.S., according to the most recent estimates provided by the USDA.


The bottom line is that more and more people want organic food, Reganold says.


The USDA says that in 2001, Washington state, which is the top producer of organic apples in the world, had the second-largest organic fruit acreage in the country, at more than 9,200 acres, and the second-largest organic vegetable acreage, at nearly 7,200 acres. In the most recent available figures, WSU says that in 2005 the state produced organic crops on an estimated total of nearly 50,000 acres and more than 2,000 acres of cropland in transition to become organic, compared with about 40,200 organic acres in 2004.


In terms of livestock, WSU says that last year, the state had 14 organic dairy farms, plus five farms in transition. There were an estimated nearly 360 beef breed cows in organic operations and about 97,000 layer hens, WSU says.


Meanwhile, Spokane County had nine certified organic acres of cropland and 75 acres in transition, and three certified organic farms, with one in transition last year, WSU says.


Reganold says Washington state is a national leader in organic food production partly because the climate here makes it easier to grow organic fruit and vegetables than in the Midwest, where humid summers mean higher numbers of pests. The state also has been able to keep up with regional demand for organic meat and dairy products, whereas demand in other parts of the country for those products currently outstrips supply, he says.


Although the state is a large producer of organic fruit, such as apples, other crops, such as organic wheat, are harder to grow, particularly in the nonirrigated dry lands of Eastern Washington, says David Granatstein, a sustainable agriculture specialist at WSU. The nonirrigated dry land in the counties nearest to the Idaho border explains why the area currently represents the smallest amount of certified organic acreage in the state, Granatstein says.


Researchers are working on ways to make dry land systems able to grow organic crops such as soft white wheat, better, since soft white wheat producers cant keep up with organic demand, he says. Most organic wheat currently is grown in the central and northwestern parts of the state, which have irrigated land, he says.


Increasing numbers of farmers are interested in growing organic crops because of rising consumer demand, Granatstein says. Part of the difficulty in growing such crops, however, is that they require sophisticated systems to manage weeds and fertility, especially in dry land areas, he says. In addition, USDA regulations require farmers to comply with organic guidelines for three years before the crops they grow can be labeled organic, he says. Even apple farmers in the state have encountered challenges in trying to switch to producing organic fruit to boost sales, he says.


If your costs are higher and your yields are lower, it can be tough, Granatstein says. So, its not an economic panacea.


Meanwhile, rising consumer demand has been fueling the growth of organic food vendors in the Spokane area. For instance, Spokane-based Huckleberrys Fresh Market, which sells natural organic food, has opened nine stores in the supermarkets of its Spokane-based parent, Rosauers Supermarkets Inc., in the past five years, says Don Whittaker, director of grocery and Huckleberrys at Rosauers. Huckleberrys plans to open a store in the Rosauers supermarket in Lincoln Heights next month, and also plans to open a store in a Rosauers in Bozeman, Mont., Whittaker says.


Weve definitely seen greater interest in organic food, Whittaker says. People are clearly more aware of it and are moving in that direction.


The two fastest-growing categories in the retail food industry are natural organic and Hispanic foods, Whittaker says. As a result, more natural foods stores are cropping up and increasing competition, although Huckleberrys still is the only full-service natural food store in the Spokane market, he claims.


Some of the top selling foods at Huckleberrys include eggs and bulk items, he says. Organic foods are priced higher than non-organic foods, because the cost of certification, production, and handling of organic food is higher, while yields tend to be lower, he says. Despite premium prices, however, more customers are flocking to Huckleberrys aisles than ever before, he says.


Whittaker says three groups of customers buy organic foods. One group is organic purists who buy only organic food, while another group is customers who choose organic food for a large majority of their food purchases. The third group is made up of what he calls transitional customers, who are becoming more aware of organic food and are exploring their options. Whittaker says hes noticed more transitional customers roaming the aisles and looking at food labels, and he also has noticed more mothers shopping with their children, who represent future organic food consumers.


Its a lifestyle and social and environmental commitment, Whittaker says. Were becoming more protective of what goes into our soil and water, and ultimately our bodies.


Jacque Hendrix, who owns Spokane-based Fresh Abundance Inc., with his wife, Eden BrightSpirit Hendrix, agrees that consumers have become more aware of organic food over the past several years.


People are more aware of what theyre eating, Hendrix says. They want food that hasnt been sprayed with pesticides or had its growth enhanced, and also it just tastes better.


Fresh Abundance is a food-distribution company that delivers organic food and household products to customers in the Spokane area. It also distributes foods called safe foods, which arent grown with synthetic pesticides or hormones, but arent certified as organic, he says.


Fresh Abundance buys most of its inventory from local producers, Hendrix says. In addition to the price of the products, customers must pay a onetime $15 registration fee and annual membership dues of $35, he says. Those dues go to a Spokane-based nonprofit organization called People for Environmental Action & Community Health, which helps farmers grow and sell organic food, he says.


When Fresh Abundance opened its doors two years ago, it had 60 members and bought produce from about five local farmers, Hendrix says. Now, it has 500 members and works with more than 25 farmers, he says. It currently operates out of the Hendrixes South Hill home, but is moving to a commercial space on 25th Avenue next month, he says.


We actually have to work hard at not expanding too fast, he says. More people want to buy organic food from local producers.


Contact Emily Brandler at (509) 344-1265 or via e-mail at [email protected].

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