Organic foods can be defined as the foods resulting from production through processing in an exclusion of ionizing radiations. This production of organic foods must be free from the genetically modified organisms. Manufacturing of all organic products for both animals and plants involves not at all of any given antibiotics or use of growth hormones. Organic foods must meet the standards stipulated in the United States Department of Agriculture (USDA).
The national organic programs were first implemented on October 12, 2012. The producers of the organic products in both private and public organizations ought to be verified according to the organic standards (Agricultural Marketing Services, 2011). These standards include prior certification of land in order to ensure that the land is free from prohibited substances in a period of three years. The standards of organic farming certify that farmers and processors have been checked to be keeping only clear organic records. The standards also act as the certification agency for those insect farms and processors operations. These standards also ensure that all farmers and handlers maintain a written organic management plan in order to correspond to the organic management practices (Nguyen et al., 2012).
In the case study of the organic foods supply and demand, organic food industry is the fastest growing sector in the U.S. agriculture. The consumer demand for these organic products has been steadily growing at a constant rate of 20% since 1990. Over 73% of the United States conventional grocery stores, and an estimated of 20 000 natural food stores, deal with organic products. This accounts for approximately 2.5% of the United States total food sales. Currently in the USA the demand for these organic products, especially for fruits and vegetables, has been increasing at a higher rate than its supply. This has expanded the trade gaps between imports and exports in the country (Nguyen et al., 2012).
The organic farming industry in the United States agricultural system has been demanding the organic foods manufacturers to increase attention towards the set organic production standards. This industrial sector has appealed to the consumers to seek healthy living and insist on organically generated products, especially fruits and vegetables. The main pressure has been on the policy makers from the government to increase awareness on the health issues of concerns affecting the United States’ citizens rising from the inorganic food system (Just et al., 2007).
Based on the 20% growth of the organic industry market in the United States, the state of Florida organic sales, as per 2008, were recorded to be $8.4 million in one financial year. These organic fresh market products were sold in about 73% of the conventional markets, in both regional and national chains. The state of Florida has been observed to source for organic fruits and vegetables in the distant California State, because of the increased demand and low supply. Many small operators of the organic products, especially those, dealing with fruits and vegetables, which are certified, has formed basis for their financial stability and security. On the top of it all, the demand for these organic products in the United States, due to the increased overall demand for them, has increased interest in this sector. Organic production programs have been formulated in order to get the additional information on the organic production (Just et al., 2007).
Among them is a program, conducted by the University of Florida’s (IFAS) faculty. This field day workshop attracted over 800 attendees from all over the state. This facilitated growers and industry stakeholders of organic fruits and vegetables to formulate an internet forum, where printed publications on the organic production in Florida were documented. Lack of volume of the organic outputs, mainly fruits and vegetables, has contributed to the low number of 133 certified producers. Global organic import markets in Florida, on the other hand, have been a main disadvantage to the organic farmers there. This is because large wealthy buyers import agricultural products from all over the world at the expense of locally produced fruits and vegetables. This has called for the organic producers in Florida of fruits and vegetables to work together as a block in order to increase production demanded by the state of Florida. This will also increase their bargaining power making them more competitive in the Florida’s indirect market (Just et al., 2007).
For the past century, the United States’ government has been a widely used tool on advising Americans about diets and health issues from the unhealthy eating. The United States department of Health and Human Services jointly with USDA issued a ‘Dietary guidelines for Americans’. This has consecutively been enhanced every 5 years since then. This was in an effort to achieve primary focus on the ways to receive proper nutrition, while consuming various food groups moderately. During the dawn of the United States rise of obesity rates, health researchers advocated for less harmful foods. These included salty snack chips, ice cream, relative healthy fruits, vegetables, and whole grain. This has led to the increased demand for both vegetables and fruits due to people’s dietary behavior changes. The number of the consumers of these fruits and vegetables has increased, as compared to the products supplies that were readily available. Logistical problems affected the demand for organic fruits and vegetables, though people’s determination to change diet for health reasons didn’t respond to prevailing prices. Consumers have been insisting on the organic fruits and vegetables despite the prices attached making its demand to rise (Just et al., 2007).
The long term consumer spending in the United States has been observed to change mostly in the foreign markets. The expenditures have been declining on a share of staple foods, especially rice and wheat. This has been overtaken by the increased direct shift of higher valued organic foods like meat, dairy products, fruits, and vegetables. The two shifts in the United States have reshaped food demand trends; thus, changing the organic foods marketing in the whole world. Food suppliers and retailers have been forced to swiftly respond to these demand changes, and some have replaced their businesses with organically produced healthier products, such as fruits and vegetables. This expansion of the organic foods industry, especially in fruits and vegetables, has led to big multinational companies expanding organic sales in the developing countries. There are 15 multinationals firms in the world, which account for 30% of the global organic supermarket sales. Organic fruits and vegetables are especially contributing to them (Buzby, 2012).
Globalization of the food supply has increased demand and supply of the organic products in the United States of America. New food safety risks have been adopted in many countries to enhance good safety measures. These food safety measures have been adopted in the international trade by the policy makers to guard and enhance national supplies. ERS has been mandated to conduct food safety analysis, which includes interplays of regulating and addition of market incentives to promote food safety. It also encourages labeling, traceability, and determining impacts of food-borne illness outbreaks traced from the imported products. ERS has been on the fore front of advocating for fresh organic fruits and vegetables to be imported in the United States’ markets. This agency research also includes all analysis in concern with the potential risks of food imports, basically from China. This has decreased fruits’ and vegetables’ imports from China, while encouraging imports of the organic fruits and vegetables from other producing states in order to satisfy the increasing demand growths (Buzby, 2012).
The demand for fruit and vegetable marketing orders to their producers has enabled them to work together to solve their common marketing problems. These orders help to facilitate availability of quality organic fruits and vegetables, which will allow quality returns to them. Quality products are said to increase consumer’s demand (Agricultural Marketing Service, 2011).
In the United States, its organic world markets and trade have grown according to the research produced by the Department of Agriculture in 2012. The exports of organic products, especially apples, were about $450 million in 2012. This demand mainly came from Canada and Mexico, although exports of the United States to the European Union are believed to expand following implementation of Organic Equivalence Arrangements with the United States. The United States’ imports have been plunged on the basis of the weak demand for organic coffee.
According to the USDA’s National Organic Programs, it has advocated on labeling of food and agricultural products, which follows procedures of organic farming. Fruits and vegetables production in the United States have been insisted on implementation of cultural, biological, and mechanical processes to boost organic cycling resources. This has promoted ecological balance and conversed biodiversity in their production. Organic production of apples, as an export commodity, has facilitated strong apple shipments. The United States’ government reduced premiums on apples export in order to enhance organic trade reach greater heights. This has made organically produced apples more affordable. This move made the organic share market double in 2012 to 9%. This had adverse effects on the organic grapes and berries, whose sales fell against conventionally produced fruit exports. The United States of America continue to enjoy the largest market share for Canada and Mexico imports using their organic equivalence arrangements.