Organic Foods

The growth of the organic foods industry in the United States has been dramatic in the past 2 decades. It is estimated that organic sales have increased by nearly 20% annually since 1990, with consumer sales reaching $13.8 billion in 2005 (Figure 1). While initial organic food production primarily involved small farms and local distribution of fresh produce, today’s organic food system is a complex combination of small and large food producers, local and global distribution networks, and a wide variety of products, including fruits, vegetables, meats, dairy, and processed foods (Figure 2). This rapid growth may be traced to increased consumer confidence in organic foods as well as to concern about possible health risks and environmental impacts of conventional food production methods. Recent food crises such as mad cow disease and footand-mouth disease have lessened consumer confidence in foods in general and especially in conventionally produced foods that may use pesticides, antibiotics, and other chemicals in food production (Dreezens and others 2005; Siderer and others 2005). Surveys indicate that many consumers purchase organic foods because of the perceived health and nutrition benefits of organic products. In one survey, the main reasons consumers purchased organic foods were for the avoidance of pesticides (70%), for freshness (68%), for health and nutrition (67%), and to avoid genetically modified foods (55%) (Whole Foods Market 2005). Such consumers appear to be willing to pay the typical 10% to 40% price premium that organic products command.