Analysis: Oregon organic market shows gaps, promise
Oregon farmers who want to crack the organic market might think about growing strawberries. Raspberries and dry bean varieties such as garbanzos, pintos and black beans wouldn’t be a bad bet, either.
But a new analysis from Oregon Tilth, which certifies organic operations, makes it clear that figuring out what to grow is only part of puzzle. The report, on-line at https://tilth.org/resources/organic-market-in-oregon/, says supply gaps, infrastructure problems and technical issues hamper what is otherwise a strong segment of Oregon agriculture.
Make no mistake, organic sales aren’t hurting. Nationally, sales expanded 12 to 21 percent annually between 1997 and 2008, slowed during the recession and picked up again in 2012, according to the analysis. By 2014, organic sales hit nearly $36 billion, an 11.4 percent increase over the previous year.
But a closer look at Oregon’s organic scene shows producers will have to step it up, according to Oregon Tilth. A number of issues snag production, processing and distribution, the report showed.
“A look at trends in the mainstream grocery industry suggests that even if Oregon farmers are meeting the majority of market needs now, continued expansion of grocery chains’ organic offerings will necessitate a crop supply increase to keep up with demand,” report author Tanya Murray wrote.
Generally, buyers want more organic berries and stone fruit and more of the less common vegetable crops, baby vegetables, heirloom varieties and varieties that have exceptional flavor, according to the report. Some also want a certain level of processing — items that are cut a certain way, peeled or roasted, for example.
Other gaps persist. Buyers want producers trained on food safety regulations and grading standards. Farmers are sometimes stymied by the organic certification process, including the need to develop new record-keeping systems, affording certification fees and waiting out the three years it takes to certify a field. Appropriate crop rotations, necessary for field health, have to be planned out as well.
Farmers also need assurance that the market will still exist after the three-year transition period, during which “yields might be down, costs might be up and the premium prices that certified organic crops earn aren’t accessible,” the report concludes.
The analysis suggests one-on-one relationships between buyers and farmers are important. Such relationships can protect confidential company information while shielding farmers from downward price pressure that comes with supply gluts.
To help solve those problems, Oregon Tilth created the Transitioning to Organic Network, or TON, an on-line service directly connecting farmers, processors, handlers, buyers and other service providers and stakeholders. Members can ask questions, share information and stay informed about educational opportunities. The listserv is at
http://goo.gl/forms/iTPJTpeiSa.
In compiling the analysis, Oregon Tilth considered responses from 31 processors and manufacturers, three natural food grocery store buyers and four wholesale produce distributors.
The report was funded by a USDA Specialty Crop Block Grant administered by the Oregon Department of Agriculture.