Source: NORTH CAROLINA A&T STATE UNIV submitted to
A MARKET ANALYSIS OF ORGANIC PRODUCE IN NORTH CAROLINA
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0216229
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 1, 2008
Project End Date
Sep 30, 2011
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
NORTH CAROLINA A&T STATE UNIV
1601 EAST MARKET STREET
GREENSBORO,NC 27411
Performing Department
AGRICULTURAL ECONOMICS
Non Technical Summary
Observations have been that there is strong growth in the organic food industry. The driving force behind the growth has been linked to consumer health and safety interests. The industry shows potential to increase efficiency in the production of organic products and to provide benefits to consumers and producers as well as profits for the industry and North Carolina's economy.
Animal Health Component
75%
Research Effort Categories
Basic
25%
Applied
75%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6041199301050%
6011199301025%
6091499301025%
Goals / Objectives
The objectives of this study are: (1) provide an organic produce industry overview (including statewide organic inventories and consumption levels) as well as provide any trends seen within the industry for North Carolina; (2) identify established supply chains of the leading organic produce within the state of North Carolina; (3) evaluate the economic impact of the organic produce industry in North Carolina; and (4) conduct production analyses on the leading organically produce produced in North Carolina.
Project Methods
Approach to objective 1: Data will be analyzed for the most recent years across and/or the grocery marketplace in the state of North Carolina. In addition, an overview of production trends over the most recent years will also be evaluated and documented. Approach to objective 2: Exploratory research through literature searches/reviews and the most recent Census data will be used to identify established supply chains of leading organic produce. In addition, expert interviews will be conducted through organic producers, organic trade associations and other associations of interests. Approach to objective 3: The economic impact of the organic produce industry will be evaluated by an input/output model based analysis utilizing Spins and/or ACNielsen organic produce data, Census data and IMPLAN data and software. Approach to objective 4: Production analyses will be evaluated in two ways - (a) projection of future production needs to satisfy demand and (b) enterprise budgets.

Progress 10/01/08 to 09/30/11

Outputs
OUTPUTS: Objective #1, To provide an organic produce industry overview including statewide organic inventories and consumption levels, as well as provide any trends seen within the industry for North Carolina: Outputs included meetings held among investigators, collaborators and other personnel. Two graduate research assistants and one undergraduate research assistant continued on with activities from the second funded year. Students were mentored as literature and data were retrieved and stored for further analysis. A paper submission to the Food Distribution Research Society was accepted and presented in October of 2011 in Portland, Oregon. The undergraduate research assistant conducted a rent distribution analysis of the leading organic produce in the state of North Carolina. Findings revealed that sweet potatoes and tomatoes had a strong presence in the area. Therefore, a study with focus on the contractual relationship between the farmer and the contracting agent was developed and submitted for presentation at the Council for Undergraduate Research in Washington, DC. Outputs for objective #2, To identify established supply chains of the leading organic produce within the state of North Carolina: The 2007 Census of Agriculture data pertaining to organic produce in North Carolina was analyzed and summarized in the form of a paper presentation and paper submission to the Food Distribution Research Society. Outputs for objective #3, To evaluate the economic impact of the organic produce industry in North Carolina: Due to the unexpected additional cost of purchasing data, IMPLAN training will not be conducted. Instead, researchers utilized a cost/benefit model using Microsoft Excel. (See Publications) Outputs for objective #4, To conduct production analyses on the leading organic produced produce in North Carolina: Production analyses are presented in the form of a working paper entitled, "Supply of Organic Produce in North Carolina. PARTICIPANTS: One undergraduate student has worked on this project. Two graduate students have assisted with literature review and data mining. However, have decided to select outside these topics for their requirements in fulfilling a Masters Degree in Agricultural Economics. We hold a partnership with NC A&T SU Cooperative Extension Program. Their contribution will be to connect findings of the research to interested producers within the state of North Carolina. A compilation of findings will be presented to the Extension Specialist assisting with the project. Contacts obtained during this project - Ms. Sandy Kronick (Eastern Carolina Organics, Pittsboro, NC), Clay Smith (Redbud Farm, Burlington, NC), and Chris Vanderburg (Appalachian State University, Boone, NC). TARGET AUDIENCES: Our target audience was small-to-medium scale farmers, state legislators, and citizens of the state of North Carolina. Short term outcomes include: (1) have increased knowledge of organic markets in NC, (2) be knowledgeable about resources related to marketing organic products, (3) be able to identify production and processing regulations, (4) be able to identify career opportunities within the marketing channels, and (5) be able to identify new market opportunities. Mid-term outcomes include: (1) make informed decisions about entering markets for organically produced products, (2) select information that best suits their business from resources contacted, (3) implement process or practice change to regulatory requirements, (4) implement technological changes, (5) research selected market opportunities, and (6) actively apply practical policy and decision-making knowledge. Long-term outcomes include: (1) information on successful market opportunities results in high profitability, (2) increased local sales, (3) increased production and processing of organically produced commodities in the state, (4) expansion of high quality employment opportunities for residents, (5) increased number of successful collaborate ventures in NC, and (6) increased competitiveness of local farms. PROJECT MODIFICATIONS: In evaluating the overall industry trends in the state, several problems occurred. There were hidden costs associated with the available scanner data purchased through the Perishables Group. The data were truncated by region and by retailers. We were able to access the South Atlantic Sub-region, which includes Florida, Georgia, South Carolina, North Carolina, Virginia, West Virginia, Maryland, and Delaware. Unfortunately, we were unable to extract North Carolina from the region. Therefore, our overview is inclusive of the South Atlantic Region. This may lead to better findings in that North Carolina's limited production within the state. Due to these shortcomings, we were unable to develop a forecasting model due to the organization of data (truncated retail data). Therefore, in the final stages of the project, we focused on volume consumed, market shares, and observed trends.

Impacts
The Department of Agribusiness, Applied Economics and Agriscience Education, NC Cooperative Extension Educators, administrative support staff, graduate researchers and an undergraduate researcher worked closely together to conduct a trend analysis of organic and marketing in North Carolina. They also developed a study to evaluate the economic impact and feasibility of organic production in North Carolina. From this, presentations were conducted for an audience of peers to provide sound feedback and direction for the analyses of this project. Findings for the market overview, including statewide organic inventories and consumption trend analyses,were presented. Also, results for identification of established marketing channels of the leading organic produce in NC were presented. Economic impact analyses of organic produce were presented as well. Production analyses on the leading organically produced produce in North Carolina will be ongoing at the time of termination of this project.

Publications

  • Robbins, R. & Jefferson-Moore, K. 2012. Supply of Organic Produce in North Carolina. (Working Paper).
  • Bowser, J. and Jefferson-Moore, K. 2012. Economic Impact of Leading Organic Produce in North Carolina. Council on Undergraduate Research, 16th Annual Undergraduate Poster Session, Washington, DC (Submission).
  • Jefferson-Moore, K., Robbins, R., and Smallwood, A. (2011). Market Potential for Local Organic Produce in the South Atlantic Sub-Region. Annual Meetings of the Food Distribution Research Society, Portland, Oregon, October 15-19, 2011.
  • Smallwood, A., Jefferson-Moore, K., and Robbins, R. (2011). Market Potential for Local Organic Produce in the South Atlantic Sub-Region. NC A&T State University, School of Agriculture and Environmental Sciences, Research Apprenticeship Program, Poster Presentation, Greensboro, North Carolina, July 22, 2011.
  • Bowser, J. and Jefferson-Moore, K. Economic Impact of Leading Organic Produce in North Carolina. NC A&T State University, School of Agriculture and Environmental Sciences, Undergraduate Research Scholars Program, Paper Presentation, Greensboro, North Carolina, April 20, 2011.
  • Robbins, R. & Jefferson-Moore, K. (2011). Analysis of Organic Foods of the Southeast. 16th ARD Biennial Research Symposium, Atlanta, Georgia, April 9-13, 2011.


Progress 01/01/10 to 12/31/10

Outputs
OUTPUTS: Outputs for objective #1 --To provide an organic produce industry overview, including statewide organic inventories and consumption levels, as well as provide any trends seen within the industry for North Carolina: Meetings were held among investigators and other personnel. Two graduate research assistants and one undergraduate research assistant continued on with activities from the first year. Students were mentored as literature and data were retrieved and stored for further analysis. The process to purchase organic produce data began in May, but the transaction of purchase from the Perishables Group was delivered in the last quarter of 2010. The 2007 Census of Agriculture data pertaining to organic produce in North Carolina was analyzed and summarized in the form of paper presentation and paper submission to the Food Distribution Research Society. A graduate research assistant will be utilizing the data in thesis research. The undergraduate research assistant conducted a rent distribution analysis of the leading organic produce in the state of North Carolina. Outputs for objective #2 -- To identify established supply chains of the leading organic produce within the state of North Carolina: The 2007 Census of Agriculture data pertaining to organic produce in North Carolina were analyzed and summarized in the form of a paper presentation and paper submission to the Food Distribution Research Society. We did not include interviews in this reporting year, but will fulfill this in our third reporting period. Outputs for objective #3 -- To evaluate the economic impact of the organic produce industry in North Carolina: Due to the unexpected additional cost of purchasing data, IMPLAN training will not be conducted. Instead, researchers will complete an input/output model utilizing Microsoft Excel in the last reporting period. Outputs for objective #4 -- To conduct production analyses on the leading organic produced produce in North Carolina: Not expected to provide deliverables until the third and final reporting period. PARTICIPANTS: Two graduate research assistants and one undergraduate research assistant were hired to assist with activities. Literature and data were retrieved and stored for further analysis. TARGET AUDIENCES: It is expected that this project will strengthen and improve small-to-medium scale producers' knowledge of established organic produce marketing channels within the state of North Carolina. Our initial goal was to present findings in the last year of the grant after all analyses have been completed. PROJECT MODIFICATIONS: There were unexpected additional cost of purchasing data, IMPLAN training will not be conducted. Instead, researchers will complete an input/output model utilizing Microsoft Excel in the last reporting period. (Objective #3).

Impacts
It is expected that this project will strengthen and improve small-to-medium scale producers' knowledge of established organic produce marketing channels within the state of North Carolina. By investigating the commercial process, more qualified small-to-medium scale producers within the state may enter the market and benefit from increased net farm income. The success of these producers will increase the visibility of the university, school, department, and program.

Publications

  • Jefferson-Moore, Kenrett Y., and Richard Robbins. 2011. (forthcoming) A Market Analysis of Organic Produce in North Carolina. Journal of Food Distribution Research.


Progress 01/01/09 to 12/31/09

Outputs
OUTPUTS: Outputs for objective #1 (To provide an organic produce industry overview, including statewide organic inventories and consumption levels, as well as provide any trends seen within the industry for North Carolina.) Meetings were held among investigators and other personnel. Two graduate research assistants and one undergraduate research assistant were hired to assist with activities. Students were mentored as literature and data were retrieved and stored for further analysis. There are plans for the upcoming reporting period to purchase, retrieve, organize, and code Spins/ACNielsen data for further analysis and to retrieve, organize, and code the 2007 Census of Agriculture data pertaining to organic produce in North Carolina. Outputs for objective #2 (To identify established supply chains of the leading organic produce within the state of North Carolina.) Student researchers were required to complete IRB testing and certification. Outputs for objective #3 (To evaluate the economic impact of the organic produce industry in North Carolina.) Not expected to provide deliverables until the second reporting period. Outputs for objective #4 (To conduct production analyses on the leading organic produce in North Carolina.) Not expected to provide deliverables until the third reporting period. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
The project has yet to reveal longer-term program effects due to its infancy. It is expected that this project will strengthen and improve small-to-medium scale producers' knowledge of established organic produce marketing channels within the state of North Carolina. By investigating the commercial process, more qualified small-to-medium scale producers within the state may enter the market and benefit from increased net farm income. The success of these producers will increase the visibility of the university, school, department, and program.

Publications

  • No publications reported this period


Progress 01/01/08 to 12/31/08

Outputs
OUTPUTS: Outputs: At this point in the project (first quarter), the following activities were to be fulfilled: Objective #1 (to provide an organic produce industry overview)-- An implementation meeting of investigators, informal collaborative partners, Cooperative Extension and other personnel was to be scheduled. The planning of such meeting was postponed due to conflicting schedules and other activities. This meeting will be scheduled during the second quarter of the project. Objective #2 (to identify established supply chains) -- The PIs have completed human subjects certification. Student researchers will need to complete training. PARTICIPANTS: Nothing significant to report during this reporting period. TARGET AUDIENCES: Nothing significant to report during this reporting period. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Outcomes: At this point in the project (first quarter), no outcomes/impacts have been made.

Publications

  • No publications reported this period