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Where does our organic food come from?
For many, the organic milk in their grocery store is linked with the idea that the cows are raised locally, but a new study by Dr. Neal Hooker, professor of food policy at the John Glenn School of Public Affairs at The Ohio State University, has found the U.S. organic food market becoming increasingly more like its conventional food counterpart, and if the trend continues, more and more organic food won’t be local.
“Large agribusinesses are entering the specialty food market and exploiting economies of scale and organic farms, food processors and third-party certifiers are starting to cluster in regions of the United States,” said Hooker. “If this trend continues, the organic supply will tend to concentrate in a few areas, whereas demand for organic food is distributed more evenly across the nation. Market power of locally produced organic foods will be lowered and firms driven out of the market, unless firms can be clearly identified as organic and local.”
“If you are buying something organic and think its local, you better watch out,” continued Hooker. “Increasingly, unless you live in one of the concentrated organic production areas, it is less likely to be from a local farm.”
Hooker, along with Christopher Shanahan a global program manager with the research firm Frost & Sullivan, found the certified organic food industry is concentrated along the West Coast, Colorado, the New England States and the Upper Midwest/Great Lakes region. This concentration of organic food production is having an impact on the ability of local organic farmers to compete on a level playing field.
“Horizon Organic Milk is a national organic brand that is sourced “locally” – sometimes,” said Hooker. “Horizon Organic is the largest supplier of organic milk in the United States and they purchase the majority of their organic milk from more than 550 dairies in 22 states. But, that doesn’t mean the milk you buy is from local cows or that having one large distributor is good for local organic dairy farmers.”
Hooker thinks we need to clearly understand why people buy organic so food marketers can correctly say if a product is truly local and food policy makers need to explore whether all stakeholders are well served by the USDA National Organic Program, which enforces a uniform set of organic production, processing and labeling standards across the United States.
“Emerging Spatial Dependencies within U.S. Organic Supply Chains” is published in the Journal of Food Products Marketing.
“Large agribusinesses are entering the specialty food market and exploiting economies of scale and organic farms, food processors and third-party certifiers are starting to cluster in regions of the United States,” said Hooker. “If this trend continues, the organic supply will tend to concentrate in a few areas, whereas demand for organic food is distributed more evenly across the nation. Market power of locally produced organic foods will be lowered and firms driven out of the market, unless firms can be clearly identified as organic and local.”
“If you are buying something organic and think its local, you better watch out,” continued Hooker. “Increasingly, unless you live in one of the concentrated organic production areas, it is less likely to be from a local farm.”
Hooker, along with Christopher Shanahan a global program manager with the research firm Frost & Sullivan, found the certified organic food industry is concentrated along the West Coast, Colorado, the New England States and the Upper Midwest/Great Lakes region. This concentration of organic food production is having an impact on the ability of local organic farmers to compete on a level playing field.
“Horizon Organic Milk is a national organic brand that is sourced “locally” – sometimes,” said Hooker. “Horizon Organic is the largest supplier of organic milk in the United States and they purchase the majority of their organic milk from more than 550 dairies in 22 states. But, that doesn’t mean the milk you buy is from local cows or that having one large distributor is good for local organic dairy farmers.”
Hooker thinks we need to clearly understand why people buy organic so food marketers can correctly say if a product is truly local and food policy makers need to explore whether all stakeholders are well served by the USDA National Organic Program, which enforces a uniform set of organic production, processing and labeling standards across the United States.
“Emerging Spatial Dependencies within U.S. Organic Supply Chains” is published in the Journal of Food Products Marketing.
