Essay about Organic Markets

Submitted By Smack123456
Words: 2147
Pages: 9

The organic industry is a complex market. With the international marketplace moving towards a sustainable agriculture system, governments and businesses alike are looking for practical alternatives for agriculture. The organic industry is seen as the market of tomorrow but for this image to become a reality the organic industry needs to maintain its growth patterns, the market has grown 140 % since 2003 (Petrecca, Howard, and Horovitz 1). The growth mandate assumed by officials and leaders in this commerce is a tall order in these economic times when organic agriculture only makes up 2% of developed countries food sales (Grega and Reheber 471). Research by economists, farmers, geologists, and officials is evolving because the market is still fairly new and proof through historic patterns is not possible. Eleven diverse professionals have researched the organic market and published their findings. Analysis by these professionals explain the current market demand, the older organic markets (still relatively new compared to other markets), and the changes in exit and entry of business produce the same catalyst, the consumer.

The why, who, and what of the industry lies upon the consumer. Why consumers purchase organic products over synthetic products is answered with the claim of organic food being healthier. Traditional farms use chemicals and genetically altered seeds to help their produce grow faster and for pest management. All eleven sources have connected health and ecological ethics as the strongest driver for consumers to purchase organic food. Jeffrey Smith, a leading opponent of synthetic foods, strongly proposes through scientific research that genetically altered foods can create health problems like immune system deficiencies, tumors, and other diseases (322-323). Dr. Erkan Rehber of the Department of Agricultural Economics at Uludag University and Dr. Libor Grega of the Business, and Economics Department at Mendel University of Agriculture and Forestry sight ethical reasons for purchases of organic products like greenhouse gas emissions, climate changes, saturation of resources, pollution, and “loss of bio-diversity” (470). Experts in the field as Betsy Cummings and Todd Wasserman, writers for the magazine Brandweek, depict the organic consumer as a green, nature loving, environmentally-friendly person. These reasons for supporting the organic industry are firm beliefs, these principles for consumption has created a strong, loyal consumer base.

The market will report 7.2 billion in sales for the last year this success during a slow economic time according to the research of writers on the U.S. economy for USA Today Laura Petrecca, Theresa Howard, and Bruce Horovitz (1). The stable growth in sales is claimed by many in the industry to be centered around the on the consumer base. Wasserman states that brands that “aim for organic-minded consumer” have been more successful because they resonate with the ethical base (1). Cummings argues the consumer base fully integrates their life with organic products due to their morals, and therefore is willing to pay more for products and is loyal to companies that share their values. The consumer base is strong but all experts believe the organic market can expand past the niche state of mind. Karen Klonsky and D. Martin Smith layout that loyal ethic-driven consumers makes the organic market a growing niche, but to become a sustainable option of agriculture for governments, it will need to reach more types of consumers with in the article “Entry and Exit in California’s Organic Farming Sector.” They explain the market has grown over 100% since the 1990’s but is still less than 5% of the produce market (139-40). 95% of the agriculture is not supported by organic farming showing large opportunity of growth for the future in untapped consumers.

All experts in the field of organics make links between consumer demand with the future of the industry, understanding the current