Organic Food Supermarket Trends

When it comes to organic food trends, there'srisk of heart disease, preventing certain types of
good news and bad news for the dairy industry.cancers, lessening the severity of menopause and
Market research data culled from SPINS,helping the growth of lean muscle mass," he tells
ACNielsen, the Organic Trade Association (OTA)OrganicAuthority.com. "Dairy can't make all those
and Mintel indicate that organic dairy sales hit $521claims." Hooked on Packaged Foods As with
million in 2002 and $769 million in 2004-an increasemainstream consumers, organic food shoppers
of almost 48%. While this is certainly healthyare pressed for time, and they're filling their carts
growth for any industry, dairy represents onlywith larger quantities of prepared and packaged
14.5% of all organic food sales, and its share offoods.
the overall organic market has decreased slightly."As packaged products increase, sales in other
Statistics, of course, need to be interpretedareas, such as dairy, might remain the same in
correctly, and there are two trends that have andollar volume, while their percentage of the whole
impact on dairy sales: a switch from milk productsdecreases," says Luddene Perry, author of A Field
to soy-based foods and the skyrocketingGuide to Buying Organic. "Moreover, most organic
popularity of prepared and packaged foods. Indairy companies-Horizon and Organic Valley,
fact, soy-based drinks were the fastest-growingspecifically-cannot find enough producers to meet
product in the global marketplace, outperformingthe demand," she tells OrganicAuthority.com.
all other foods and beverages with a 31%"There is no such problem for organic grains such
increase in sales between 2003 and 2004,as wheat, a major component of packaged
according to a January study from ACNielsen.products.
Convenience, consumer recognition of soy's healthThe U.S. could make organic crackers until the
benefits and attractive pricing were the keycows come home, but there probably wouldn't be
reasons for soaring sales.enough organic cheese to put on them. Therein
Nonetheless, experts agree dairy products willlies the incentive to create the organic mega-cow
continue to experience solid growth in the organicherds that have been derided in the news lately."
foods marketplace. The OTA predicts dairy sales(See sidebar below.) That's why Organic Valley
will increase by 15.3% between 2004 and 2008.CROPP-the largest independent farmer-owned
"Organic dairy products have been one of theorganic dairy cooperative in the United States,
latest growth segments in organic foods and haverepresenting 689 farmers-has launched its
been the fastest-growing segment in the pastTransition to Organic Fund, which provides financial
few years," confirms Rick Kment, a dairy analysthelp to dairy producers who go organic.
for DTN, an Omaha, Nebraska-based private"The farmers of Organic Valley are committed to
company that provides information services tohelping dairy farmers make the transition to
leading businesses, including the agricultural sector.organic," says Tim Griffin, national milk
"Though the comparative percentage inprocurement manager. "We know how tough the
consumption of organic dairy products in relationtransition process can be, and we hope our
to the overall organic food market has declinedTransition to Organic Fund can help farmers meet
slightly over the last couple of years, organic dairythe challenge." How Healthy Are Your Local
products continue to be a growing part of theCows? Geography plays an important role in
dairy industry," he tells OrganicAuthority.com.buying organic, according to Luddene Perry, a
The Switch to Soy William Hawkins, a marketingMinneapolis-based teacher of horticultural food
consultant with Philadelphia-based Kings Roadproduction and garden/ landscape design, as well
Consulting and a vegetarian for 20 years, citesas a member of the Independent Organic
three reasons why the formerly narrow soyInspectors Association. Non organic milk is less
market-once the limited domain of animal-rightsworrisome on the East Coast, she notes, while
activists-has broadened: Organic consumers areWest Coast consumers-even those who have
concerned about health issues associated withnot adopted an organic lifestyle-should consider
dairy products.buying organic dairy products.
General consumers-especially older women-areHealth and size of dairy herds, climate and
worried about the detrimental effects ofpopulation demographics are what determine milk
consuming too much dairy, including weight gain.quality. Hot, dry weather scorches green
General consumers are now experimenting with apastures-a problem for California's dairy farmers,
wide range of soy offerings.who work at approximately 2,500 dairies
Distribution methods have also expanded, Hawkinsstatewide, with more than 3 million cows. By
notes.contrast, Wisconsin-often considered "America's
"Instead of hole-in-the-wall health stores cateringDairyland," according to Perry-has more than
only to the very 'informed' or 'concerned'15,000 dairies, with only 1.23 million cows (an
consumer, major store chains are carrying soyaverage of 82 cows per farm versus California's
products," he tells OrganicAuthority.com. "Here in1,000-1,500 per farm). Midwest and East Coast
the Philly region, for example, the greatlydairies mirror Wisconsin's statistics, while Arizona,
respected and reasonably mainstream WholeNew Mexico, Colorado and Idaho face California's
Foods Market and the very mainstream Superchallenges.
Fresh stores now carry more and more soy"Large herds have inherent problems-mainly, more
products.health issues, environmental troubles and
Displays in stores are also more prominent."worker-safety concerns," Perry tells
Especially committed to soy is Dr. Greg Paul,OrganicAuthority.com. "Although antibiotics are not
director of health and nutrition for The Solaepresent in milk, their overuse could lead to
Company in St. Louis, which has researched theresistance.
health benefits of soy protein for more than 30Large herds use more antibiotics than small herds.
years and helps bring new products to theMoreover, rBGH [recombinant bovine growth
marketplace.hormone] is used more in larger herds because its
"Soy protein continues to live up to its promise ofcost is prohibitive to smaller dairymen."
providing nutritional benefits, such as reducing the