Pacific Ag Commodities: The Push Towards Organic

November 12, 2012

There have been numerous reports citing that Organic Foods are a consumer fad that wont last. This couldn’t be farther from the truth as America is changing to a more health conscious country. This new generation is more concerned about personal health and their environmental footprint and it shows in purchasing habits. Companies such as Wholefoods are reaping the benefits with a sales increase of nearly 3 billion this last quarter.

Understanding the Consumer:
Today’s consumer has become increasingly aware and concerned about their effect on the environment and better relate to companies that have the best interest for the environment and their personal health. With the onset of the Social Media age, now more than ever consumers crave personal relationships with brands. They want to be able to identify with companies that embody their personal values and ideas. Brands have become an extension of ones self and in the mind of the consumer, an organic product is healthy, socially responsible, and environmentally friendly.

Creating an Organic Culture:
The Organic industry grew nearly 10% last year and has continuously grown each year. Companies such as Whole Foods and Trader Joes have had great success in sales by understanding the organic market. They have created an organic culture within their company that consumers embody in their daily lives. Creating this culture can increase sales astronomically, just look at Apple.

California:
Unfortunately, it is difficult for farmers to transition to Organic farming methods. The transition period takes about 3 years and they are not allowed to sell products as Organic until that period is up. During this period they are transitioning from conventional fertilizers and pesticides to organic regulation methods. This leaves farmers paying the cost to produce Organic foods but are unable to sell the products as Organic until the 3 year period is up. However, California is seeking to help farmers with the transition. AB 1625 is a bill that would allow farmers to not only receive 75 percent cost reimbursement from the federal government but also receive 25 percent reimbursement of the cost of certification from the state.(up to $250)

Pacific Ag:
At Pacific Ag commodities we believe in Organic and offer a full line of Organic Products including Organic Rice Products, Organic Corn, Organic Triticale, Organic Fruits and Vegetables