Tuesday, May 11, 2010


Organic foods continue to attract consumers in most of the countries because of the common perception that they are much safer than the conventional foods. Though the claims about superior nutrition have been rubbished by many scientific studies, some consumers still believe in such claims, opening up new market opportunities for this industry. In the US where diets are becoming loaded with more sugar, salt and fat and less of dietary fiber, fresh fruits and vegetables are increasingly being sought after. Organic versions of these fresh produce category are displacing conventionally grown ones rapidly.

"Organic fruits and vegetables, which represent 38 percent of total organic food sales, experienced the most growth reaching nearly $9.5 billion in sales in 2009, up 11.4 percent from 2008 sales. Most notable, organic fruits and vegetables now represent 11.4 percent of all U.S. fruit and vegetable sales. Since the approval of the final National Organic Program rule published in 2000, sales of organic fruits and vegetables have grown from $2.55 billion, representing approximately 3 percent of all fruit and vegetable sales, to the nearly $9.5 billion level and 11.4 percent penetration level. Meanwhile, during that time, organic food sales have grown from $6.1 billion to $24.8 billion in 2009, jumping from 1.2 percent of all U.S. food sales to 3.7 percent".

Probably the prevalent belief, that use of chemical fertilizers and pesticides in the conventional production system is wide spread, may be driving the consumers in hordes to organic produce section in the supermarkets. That one is willing to pay a price 50-100% more for organic foods is a telling commentary on the reckless practices of the modern commercially driven agri-food industry, ignoring consumer welfare.


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