Source: UNIV OF IDAHO submitted to
NICHE FOR ORGANIC FOOD
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
TERMINATED
Funding Source
Reporting Frequency
Annual
Accession No.
0185197
Grant No.
(N/A)
Project No.
IDA01147
Proposal No.
(N/A)
Multistate No.
(N/A)
Program Code
(N/A)
Project Start Date
Jul 1, 2000
Project End Date
Jun 30, 2004
Grant Year
(N/A)
Project Director
Foltz, J.
Recipient Organization
UNIV OF IDAHO
875 PERIMETER DRIVE
MOSCOW,ID 83844-9803
Performing Department
AGRI ECONOMICS & RURAL SOCIOL
Non Technical Summary
The organic food industry is cited as one of the top ten trends for food manufacturers and marketers. Food retailers are interested in determining the projected gorwth and impact of organic food demand on the grocery retailing industry. This project will examine the impact of organic food production on Idaho's economy. Marketing implications for retailers will be outlined.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6035010301050%
6046230301050%
Goals / Objectives
1) Outline and discuss the significance of the market for organic foods for both mainline food channels and niche markets. 2) Outline and discuss the significance of the market for organic foods for Idaho agricultural producers, particularly in light of the fact that the majority of Idaho's producers are located far from many U.S. population centers. 3) Discuss possible regulatory options for Idaho organic production, that either expand or reduce present standards. 4) Research and investigate implications of organic food production on intermediate food chain operations such as transportation, storage and wholesale firms. 5) Attempt to assess the impact of concerns over genetically modified organisms (GMOs) and their relation to organic production and marketing. 6) Quantify the comparative advantage of mainline supermarkets versus specialty stores in marketing organic foods. 7) Quantify the current and potential impact of organic agriculture on the Idaho economy. 8) Outline the determinants of demand for organic products in U.S. retail supermarkets. 9) Project the future demand for organic products in U.S. retail supermarkets. 10) Project the future growth and demand for Idaho organic products.
Project Methods
Data will be gathered from the Idaho Department of Agriculture and Idaho Organic Inspectors to determine the current status of organic production in Idaho, and its impact on the state's economy. In addition, primary and secondary demand data will be gathered to investigate the demand for organic products in U.S. retail supermarkets. Once additional information is gathered, the scope of the demand analysis may be narrowed to several product categories or specific foods, for example organic potatoes or organic wheat. A variety of methodological approaches will be utilized to analyze the data that is gathered. Quantitative work may be limited to describing and documenting trends on the production and consumption side of the organic sector. It is anticipated that any attempt at quantitative demand or supply modeling will likely need to address cross-sectional variation across geography (perhaps across states), rather than trying to model relationships through time due to the lack of time series data and the instability of relationships. Marketing implications for retailers such as Albertson's will also be outlined.

Progress 07/01/00 to 06/30/04

Outputs
Even though this Hatch Project has terminated, work continues on the USDA IFAFS grant: Understanding, Evaluating and Improving Direct Marketing Strategies of Small Farms in the PNW, which this Hatch project helped to support. 6 of the 12 whole farm case studies are organic farms. 4 of the Idaho case studies have been completed, with the remainder to be completed by June, 2005. Research results from this project on the organic food industry in Idaho indicated the following: Idaho Organic Certification Program Applicants (those requesting Organic status): 1990: 11 applicants, 1998: 145 applicants; Total Idaho Certified Organic Acreage: 1990: 757 acres, 1998: 104,768 acres; estimated Idaho Organic sales: 1991: $694,998, 1998: $4,131,000.

Impacts
The organic food industry continues to be a growing industry, and affords consumers a choice. For producers and retailers, it is a niche market. As a growing market niche, it provides opportunity for entrepreneurs willing to become involved. This project has added to the body of knowledge which will allow those involved in the industry to make better business decisions.

Publications

  • Growing Profits at Home: Stan Urmann. Northwest Direct Marketing Farmer Case Study. 2004.
  • Diane Green: Greentree Naturals. Northwest Direct Marketing Farmer Case Study. 2004.
  • Mike Heath: M & M Heath Farms. Northwest Direct Marketing Farmer Case Study. 2004.
  • Measuring Success on the Urban Fringe: Janie Burns. Northwest Direct Marketing Farmer Case Study. 2004.


Progress 01/01/03 to 12/31/03

Outputs
Work continues on USDA IFAFS grant - Understanding, Evaluating, and Improving Direct Marketing Strategies of Small Farms in the PNW. Six of the 12 whole farm case study that the University of Idaho is studying as a part of the project will be organic farms. Interviews have been completed with 4 Idaho farms. Producer interviews are being conducted in Washington and Oregon. As a part of the project, the following farmers' market assessments have been completed: Idaho - 4 total (1 in '02 and 3 in '03); Oregon -8 total (3 in '01, 3 in '02 2 in '03); Washington - 7 total (3 in '02 and 4 in '03).

Impacts
This project will demonstrate the impact of organic food production on Idaho's economy and other parts of the Pacific Northwest.

Publications

  • None in 2003.


Progress 01/01/02 to 12/31/02

Outputs
Work continues on USDA initiative for Future Agriculture and Food Systems (IFAFS) program grant - - "Understanding, Evaluating, and Improving Direct Marketing Strategies of Small Farms in the PNW." Part of this project looks at organic production. It is anticipated that approximately one-half of the 12 whole farm case studies to be developed for this project will be organic farms. One of the primary focuses of the case studies is to highlight commonly used direct marketing strategies, which include: farmers markets; Community Supported Agriculture; on-farm sales; and direct to retail. The project has also researched both software and manual data entry programs for farm management and analysis, many of which are highly applicable to organic operations. In addition, this project will also 1) develop an input-output model to attempt to quantify some of the impacts of small and organic farms on local economies in the region; 2) quantify the impact of farmers markets in the region (ID, WA & OR), including the value of organic produce sold via this manner.

Impacts
The organic food industry is cited as one of the top ten trends for food manufacturers and marketers. Food retailers are interested in determining the projected growth and impact of organic food demand on the grocery retailing industry. This project examines the impact of organic food production on Idaho's economy and other parts of the Pacific Northwest. Marketing implications for retailers will be outlined.

Publications

  • No publications reported this period


Progress 01/01/01 to 12/31/01

Outputs
Work continues on USDA Initiative for Future Agriculture and Food Systems (IFAFS) program grant - "Understanding, Evaluating, and Improving Direct Marketing Strategies of Small Farms in the PNW." Part of this project looks at organic production. The study is in the process of developing 12 whole farm case studies and direct marketing budgets for 4 of the most commonly used direct marketing strategies (farmers markets; Community Supported Agriculutre; on-farm sales; and direct to retail). In addition, this project will also 1) develop an input-output model to attempt to quantify some of the impacts of small and organic farms on local economies; 2) quantify the impact of farmers markets in the region (ID, WA & OR), including the value of organic produce sold via this manner.

Impacts
This project will evaluate and quantify the impact of organic agriculture in Idaho - from a production agriculture and agribusiness perspective.

Publications

  • None in 2001.


Progress 01/01/00 to 12/31/00

Outputs
A consumer utility model was developed which takes into account the individual's utility from consuming organic food, conventional food and several other variables that contribute to the quality of environment and possible health concerns. Statistics were compiled on organic agricultural production in Idaho. In 1990, ID reported 757 ac. in organic food production. By 1998, this had risen to 104,769 ac. In addition, a project entitled Understanding, Evaluating and Improving Direct Marketing Systems for Small Farms was intiated under a USDA/CSREES grant. Part of this project will look at organic production. The study will develop a set of whole farm case studies and budgets for 4 of the most commonly used direct marketing strategies (farmers markets; Community Supported Agriculture; on-farm sales; and direct to retail).

Impacts
This project will evaluate and quantify the impact of organic agriculture in Idaho - from a production agriculture and agribusiness perspective.

Publications

  • Omar Bunu. January, 2000. Idaho's Organic Agriculture: Describing and Analyzing the Status of Organic Agriculture in Idaho. M.S. Thesis, Department of Agricultural Economics and Rural Sociology, University of Idaho.