Continuously serving Kosciusko County since 1854
PLYMOUTH - People who attended a Purdue University Cooperative Extension Service videoconference program Wednesday kept hearing the same thing again and again.
The demand for organics is huge.
Purdue's New Ventures educator Jerry Nelson introduced the evening's speakers: Michael A. Mazzocco of the University of Illinois; Jack Erisman, a Pana, Ill., organic producer; and PU assistant professors Jennifer Dennis (horticulture and ag economics) and Corinne Alexander (ag economics).
Conference attendees participated from 21 locations in the state.
Compared to its neighbors, few farmers in Indiana have embraced organic production. The state has 1,419 acres certified organic compared to Illinois - 8,184; Michigan - 25,386; and Ohio - 24,652. Kentucky has 640 acres, while Iowa and Wisconsin each have more than 46,500 acres.
"Don't think who will buy in Indiana," Alexander advised, "think who will buy in the country."
Mazzocco said the organic pricing structure is different and farmers need a new mindset - one of being a team player rather than being independent.
The product is picked up at the farm rather than delivered by the farmer to a grainery. The market moves in increments of 25-cents rather than in one-eighth of a cent. Buyers pay for clean weight. Prices remains stable throughout the year.
The producer often contracts with a company to produce a specific product, like blue or white corn or a particular soybean.
Companies like Kellogg's, Kraft, Pepsi, Tyson and Con-Agra have purchased companies with organic lines of products.
"Your customers are organic food companies. You have to be a team player because the companies are dictating what they want," Mazzocco said. "These large companies need 25,000 acres to produce a new product. Because of crop rotation, one product requires $75,000. The demand is huge.
"These companies think Saskatchewan is a fine place to source soybeans if they can't find them in Indiana."
In 2003, the U.S. organics food market sales were $31 billion and Mazzocco said the compound annual growth rate is expected to be 21 percent through 2007. Last year the growth rate was 19 percent.
Farmers marketing certified organic soybeans can receive 25 cents per pound and 14 cents per pound for corn; compared to four-tenths of a percent per pound for conventionally grown No. 2 yellow corn.
"This isn't your Birkenstock and ponytail crowd," he said. "Fifty-eight percent of U.S. households reported buying something organic during a one-week period in a 2002 study."
Organic producer Jack Erisman said while the market opportunities for beef aren't backed by statistics, the potential is tremendous.
"There are chefs in Chicago who can use tons of organic meat," he said.
The animals have to be fed organic grain. They have to be certified organic and be butchered in an organically certified facility.
Since 1996, the Illinois farmer has 2,000 acres certified organic, and has beef certified organic for the last three years.
Erisman pointed out various drawbacks to organic beef production, beginning with the way cattle have been cross-bred to finish on grain rather than pasture. Certified beef and dairy cows must have constant access to pasture.
"We're going back to the British breeds. They have a smaller frame. The meat tastes better finished on grass," he said. "We're going to have to do some line breeding to get good tasting beef. Double-muscled animals finished on pasture is just not as good."
Erisman said he isn't experiencing huge premiums per pound, but he lives in an economically depressed area. Where incomes are higher, customers will pay more.
"The market is being built from the bottom up. The grower sells to an individual consumer," he said.
He said he understood that packaging plants could be certified organic as long as the facility met state, federal and national organic standards. Organically approved cleaners could be used the night before the certified beef is slaughtered and processed. The plant could return to conventional methods the next day.
Jennifer Dennis discussed organic fruit and vegetable production opportunities.
Fresh produce is the top organic category with tomatoes, leafy vegetables, carrots and apples the most commonly purchased items. The top producing states are California, Arizona, Florida, Texas and Washington.
"We're a little bit behind in respect to the number of certified organic vegetable acreage (108 acres)," Dennis said. Illinois has 374 acres; Michigan has 407, Ohio has 408 and Kentucky has 131 acres.
Michigan has 373 acres of apples and 251 acres of other fruits in organic production, while Indiana has eight acres of apples and 27 acres of other fruits in organic production.
"Indiana apple orchards may not be able to compete," the assistant professor acknowledged. "The challenge is to find what we can grow in Indiana that wouldn't cause much trouble in regard to insects and disease."
Dennis said the organic fruit and vegetable market is about building relationships with individual customers. Producers should consider teaming up with natural product supermarkets and conventional stores.
Kosciusko County ag educator Kelly Easterday is a member of the New Ventures Team. She can be reached at 574-372-2340.
On the Net:
The National Organic Program: www.ams.usda.gov/nop
For market and price information, visit the USDA-Economic Research Service: Organic Breifing Room: www.ers.usda.gov/Briefing/Organic/
The Rodale Institute's New Farm: www.newfarm.org/opx
General information is available at
New Agriculture Network:
www.ipm.msu.edu/new-ag.htm
Iowa State University - Organic Agriculture:
extension.agron.iastate.edu/organicag
