I’m proud of the growth in the organic sector. According to the Organic Trade Association, organic sales in the United States have increased from $3.6 billion in 1997 to over $39 billion in 2014. This double-digit rate of growth holds true for Canada, too, which is now the fourth-largest organic market in the world.
This growth represents the leading edge of a values-based consumer movement that’s demanding more information and more accountability from agriculture. Unfortunately, some in the agricultural sector see this as more of a threat than an opportunity.
The term “Big Organic” is increasingly use to decry the perceived influence of this movement and to attempt to galvanize farmers into a defense of “modern agriculture.” Whole Foods Market, as the largest and most visible marketer of “natural” and organic foods, is a common target.
Given the alarmist language (some might even call it fear-mongering), perhaps it’s time for a little perspective:
To look at it another way, Walmart, as the United State’s largest grocery retailer, sells as many groceries in 4 weeks as Whole Foods sells all year, and sells as much food in 3 months as all organic food sold in the U.S. in a year. Walmart’s market share of the total market is more than twice Whole Foods’ share of the organic market.
The rate of growth in the organic market means that there are significant, long-term opportunities for North American farmers to fill a demand that continues to outstrip the supply. Using the term “Big Organic” to imply a threat to the status quo of mainstream agriculture is making a mountain out of a molehill.
The opportunities? They’re real.
The threat? Not so much.
Derek Dupuis
February 10, 2016
Rob, I personally think the whole “Big Food/Modern Ag” vs “Big Organic” name calling back and forth is just foolish. I was hoping you were going to point out on your chart that both Whole Foods and Monsanto reported sales of 15 billion in 2015 compared to the behemoths of Walmart et al. As you have blogged before, we need all forms of agriculture to work together, learn from each other and push each other to improve agriculture as a whole. Name calling doesn’t get us there…
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rob
February 11, 2016
Thanks for the comments Derek. I agree with your points, and I had actually considered including your point about Whole Foods and Monsanto. I’ll do it here!
Although it’s useful on a certain level to say “a big corporation you hate is the same size as a big corporation you like” comparing an input supplier to a grocery retailer is apples and oranges, unless you look at their relative size and market influence.
Monsanto has 42% of the seed/biotech market share and their agricultural revenues account for 19.5% of the market share of the “Big Six” (now 5) seed and chemical suppliers. This is much closer to Walmart’s 20% of the grocery market than it is to Whole Foods’ 1.6% market share. (To be fair, Monsanto isn’t actually the largest player in the agricultural inputs marketplace – just the one that takes the most heat!)
When we talk “Big” anything, I think the important thing to consider is consolidation and the negative impacts that corporate concentration can have on the market. This is happening across the board in agriculture, both conventional and organic, at all levels of the chain – something that all farmers, and all consumers, need to be aware of.
Thanks again for your comment and for moving the discussion forward.
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