Performing Department
Applied Economics & Management
Non Technical Summary
Organic agriculture and food processing have grown significantly in the U.S. as well as in New York State. Cropland in organic production in the U.S. has increased from 638,500 acres in 1995 to over 1,723,271 in 2005 (USDA, NASS). Sales of organic foods have increased by double digits annually over that same time period. New York State ranked sixth in the U.S. in the number of certified organic farms in 2005 (USDA, ERS). New York has seen significant growth in certified organic agriculture. However, limited research has been conducted on the longer term outlook and opportunities for New York farmers, food processors, and marketers. The growth of organic agriculture in New York State has occurred across a mix of types of commodities and farm enterprises. Opportunities for expansion can vary across types of farms, products and market channels. Given the increased production and scope of organic agriculture and food processing in New York State, further study of the opportunities for and barriers to growth is warranted. The proposed research addresses a number of Federal, State and Institutional research priorities. The project would address the following USDA, Cooperative State Research, Education and Extension Service research goals (CSREES Strategic Plan) Goal 2: Enhance the Competitiveness and Sustainability of Rural and Farm Economies and Goal 3: Support Increased Economic Opportunities and Improved Quality of Life in Rural America. The Cornell Organic Agriculture Program Work Team, (PWT) lists the following research priorities under the category of "Marketing, Economics and Farm Business Management" Market opportunities, Economics of organic enterprises, Impacts of regional and global marketing on local production. The purpose of this project is to improve the decision making of New York farmers and agribusinesses who are currently involved in organic agriculture or those producers or firms interested in potentially marketing organically produced farm products. The collection and analysis of data on current production and processing operations should provide insight into the identification of the best opportunities for organic agriculture as well as the potential barriers to growth. The study will attempt to effectively analyze the options available New York farmers, processors, and marketers. The impact of making the right strategic decision for producers, processors or policy makers can translate into better performance in today's global marketplace, a financially stronger New York agriculture, improved profitability at the farm level, as well as a positive economic impact on the communities that are involved.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
100%
Developmental
(N/A)
Goals / Objectives
The overall purpose of the project is to improve the understanding of the potential opportunities to grow the organic food and agriculture industry in New York State. The study would also examine what constraints or barriers exist to increasing organic agriculture or marketing. Specific objectives include: 1. Conduct extensive review of literature that focuses on organic agriculture production, distribution, manufacturing and marketing. 2. Develop up to date database on organic agricultural production in New York State 3. Develop up to date database on organic food processing and distribution in New York State. 4. Estimate and analyze the economic impact of organic production and processing in New York State. 5. Ascertain what are the most promising opportunities for organic production and/or processing in New York State 6. Identify barriers or competitive disadvantages for organic production or processing in New York State. 7. Disseminate the results through Extension and outreach activities
Project Methods
A number of Cornell faculty, agency staff and a consultant have agreed to collaborate on the project including: Marc Smith, Dr. Anusuya Rangarajan, Fay Benson, Dr. George Abawi, Dr. Todd Schmit, Dr. Brad Rickard, Sarah Johnston, NY Dept. of Ag. and Markets, Organic Farming Coordinator, Dr. Steve Ropel, Director, NASS- New York, USDA, and Laurie Demeritt, President and Chief Operating Officer, The Hartman Group (subcontractor). The procedures that will be used to accomplish each of the objectives are described below: 1. Utilize the resources of Mann Library as well as various research search engines such as Agricola, AgEcon Search, Ag Network Information Center, and AGRIS. 2. Utilize data collected by New York NASS and certifying agencies such as NOFA to describe the scale and types of organic production in New York. 3. Utilize data collected by various New York State licensing entities and certifying agencies such as NOFA to describe the scale and types of organic food processing in New York. Previous Cornell research conducted on perishable product distribution in NY would be incorporated (Gloy et al.). This effort would also be coordinated with the current project on food and beverage manufacturing in NY (Schmit et al.) 4. Data collected in previous phases of the project would be analyzed to describe the economic impact. The economic impact of various links in the value chain would be identified such as production, processing, distribution and marketing. Previous Cornell research would provide a model to analyze inter-industry economic impact (Schmit and Bills). Utilizing technical resources such as the Dunn and Bradstreet Online Database, the New York Manufacturers Register, and national business directory databases such as the American Yellow Pages, an up-to-date inventory and profile of current plant operations will be developed. 5. Data would be analyzed to identify potential production and marketing opportunities for growth. Survey respondents will also be invited to participate in five regional focus groups across the state. At these regional meetings, food and beverage manufacturers will be asked to identify opportunities and strategic advantages they see in their businesses, as well as the most important obstacles and barriers they face in terms of retention or expansion of manufacturing activity. 6. Data would be collected through surveys and personal interviews of producers, processors, distributors, marketers and certifying agencies. Data would be analyzed to identify potential competitive advantages, disadvantages or barriers to growth. Data collected and reported by the Hartman Group would be used to better understand how organic products resonate with today's consumers. 7. Educational and outreach materials will be developed and communicated to industry stakeholders. Research findings will be communicated to aid policymakers in designing effective policy initiatives. Outreach efforts will include presentations to producer groups and industry firms through workshops or trade association meetings. Outreach efforts will be coordinated with CCE County Educators.