1

Road to Riches; Marketing Organic

Products

2

Why should I consider growing Organic for Farmers

Markets? Organic market segment fastest

growing 15 to 21% / year, rest ~ 3% Tiny > 3% market, EU ~ 35% market Demand exceeding supply, imports by

$200 million

3

Organic vs Conventional Organic food sales

in U.S. grew to $16.7 billion in 2006

Growth rate was 21%

Total food sales ~ $600 billion

Year Sales ($ million)

Organic Food Growth (%)

Total Food Sales

($ million)

1997 3,566 -- 443,724

1998 4,272 19.8 454,071

1999 5,043 18.1 474,678

2000 6,104 21.0 498,379

2001 7,359 20.6 521,831

2002 8,624 17.2 530,612

2003 10,381 20.4 535,406

2004 12,250 15.3 544,141

2005 13,800 15.7 556,791

2006 16,718 20.9 598,136

4

Organic fruits and vegetables $6.7 billion, 39% total

Growth rate was 24% in 2006

Projected to reach $8 billion when 2007 figures reported

5

USDA Certification regulations 2002

Grown without synthetic pesticides or fertilizers, 36 mo wash out period. Animals - outside

Grown according to Organic Plan

Audited by 3rd party

6

How we did the study Developed 10

questions, 4 demographics

English and Spanish 3 student

interviewers Table, University

Banner, clip boards, souvenir cups

Offered to read as needed

7

Location of market

(# in survey)

No. Vendors

Est. Sat. Customers

Est. Sat. sales (total)

% Hispanics

Eureka Springs (79)

14 220 $1,850 --

Springdale

(101)

12

to 15

200 $2,000-

$2,500

15%

Fayetteville

(125)

> 50 ~3,000 $20,000 1 to 2%

8

What did we Learn? > 300 respondents Most, > 60% had

graduated from college, 10% professional or PhD

Compared to10% of AR population at large graduated from college

9

In addition to the volume of sales, Fayetteville had the highest % PhD’s and professional degrees

Eureka Springs the greatest % BS grads

Springdale had greatest % High School or GED’s

10

Older 41% > 56 years. Older

>89% were white, Hispanic 3+% Asian 3-%

63% female 60% BS degree or

higher.

11

Do Current Farmers Market Customers Buy ORGANIC? 77% said at least once or 2x per month 39% said they been buying it for 7 years or

more 77% buy organic fruits and vegetables.

Poultry – 3% 42% said they are buying organic at

Farmers Markets. 20% re health food store

12

Perceptions and Beliefs; Organic vs Conventional

80% said they would buy more organic if priced similar to conventional

70% said “organic” is different than “natural”

72% said organic foods were “more safe” than conventional. 23% said “as safe”.

13

Why Consumers Buy Organics Free from chemicals 36.4% Better Nutritional Quality 16.1% Better Taste 12.8% Environmentally friendly 10.1% Other 3.3% Fewer Harmful Bacteria 2.0%

14

Brown, 2002, review markets1940 – 2000

# 1) Quality of offerings, 87% rated good to excellent, 98.5% much better quality than retail

#2) Direct contact with grower/farmer

Support for local agriculture

Convenient/ atmosphere

Lowest concern for price

Support for organic

15

What Concerns Consumers about Conventional Food?

A) Pesticides 45% B) Negative Environmental Impact 9.8% C) Genetic Modification (GMOs) 9.2% Circled all answers 7.8% D) Nutritional Value 7.5% E) Harmful Bacteria 6.2% F) Other 3.6%

16

Shop at Farmers Markets because “I Believe most

strongly in” Support Local Farmers 42% Fresher Produce 24% Better Quality than Retail Stores 9.8% Farmers Market Foods are Safer 4.2% Support Fair Trade 1.3% Other 1.3%

17

Customers at NWA farmers markets are well educated, females with money

More than ¾ of these customers are frequent organic food buyers

The organic food they purchase (prefer) most is fresh fruits and vegetables

Less than ½ of those customers are purchasing a majority of their organics at farmers markets

The market for ORGAINC is there but is it worth it?

18

OK. Not Certified Organic Creative Genius Artisan re beef in NE Grass- fed Natural

What do customers want? (hot topics) Know the farmer – trust, keep money local, Anti – (Big ) Business Care of Environment NO to pesticides, synthetic fertilizers, hormones, antibiotics, YES to animal welfare, outdoors, fresh, natural

19

Artisan Artisan – a person manually skilled in

making a particular product. Artisan farming is farming in harmony with livestock, land and nature.

20

Natural – Grass-fed Texas longhorn – tell the grass fed story,

the way nature intended Many grass-fed Comments re no hormones, antibiotics All Natural

21

Marketing Marketing – younger shoppers (Xers) –

product must have a story – romanitize it. Don’t have to agree. Just give them what

they want and don’t argue. You don’t have to grow – get someone else

do it.

22

Organic Workshop May 13- 14. Mt Sequoyah Conference and

Retreat Center May 15-16. Winrock Rockefeller Institute,

Morrillton Will cover organic horticultural production. Contact; Heather Friedrich; 479/575-2798 heatherf@uark.edu

23