1

Conclusion the U.S. organic products marketing events

1) Domestic Products

Organic area

The United States of America is inferior the fourth biggest organic areafrom Australia, China and Argentina. In 2005, it was currently identified by the statistics of Agricultural U.S. Ministry that the organic areas were guaranteed by the United States of America. They are concluded by all vegetables, fruits, meats and domestic animals. There are around 8 million acres or around 0.5 percentages of vegetables and fruits, 5 percentages of feeding domestic animals overall U.S. The biggest organic area state is Alaska, Texas, California and Montana. Vegetables and fruits are almost produced in California State where the most agriculturists have certificated on organic products. The NorthDakota, Montana and Minnesota have produced organic products respectively. The most domestic animals are fed by Alaska, Texas, California and Montana respectively. Agriculturists who are guaranteed in organic products, lived overcrowd into Pacific Northwest, Northeast and Upper Midwest of U.S.A. respectively.

Industrial Products

Organic industrial products of U.S. are trended quickly; especially kinds of organic food and drink products. Small productions such as vegetables, fruits, eggs, butter, breads and daily life usages as soaps and so on, are produced by small companies to localities that spread out generally. Foods and drinksare produced for people overall the country by big companies. It is believed that organic products will be more available increasingly. Initially, these big companies has been producing some organic products by own but it seemed to be mixed up with non organic products.It is caused by negative thinking of customers that they could not be trust enough in organic products which one should be pure or impure products. Lately, the big companies has takeover or bought an organic food company to be same company and then produced under the same brand name increasingly. These were large organic food and drink manufactures thatwere arranged with a market value in 2007 respectively as Kraft Foods Inc., Tyson, Pepsi, Nestle, Anhuer-Bush, General Mills Inc., Dean, ConAgra, Cadbury Schweppes PLC., Kellogg Inc., Unilever, Coca-Cola, M&M Mars, Dole, Cargill, Campbell Soup, Hershey Foods and Heinz and so on.

State contributions

The central state of U.S. has supported organic products through developing products as the same standard overall the country, developing inter-state more flexible trade, supporting producing technique and marketing and contributing money to agriculturists who are from central states and local states.

The help of U.S. state government to industrial organic products had currently announced in 2008 Farm Act which included the Food, Conservation, and Energy Act of 2008 as follows:

  1. To support agriculturists who produced or changed to produce organic products having a right joining Environmental Quality Incentives Program and having a right to get money contribution minimum $20,000 or maximum $80,000 into 6 years.
  2. To be supported by U.S. Ministry of Agriculture about organic producing techniques.
  3. To be guaranteed by U.S. government about license certificate processing of organic products.
  4. To help agriculturists, who start to produce organic products with Conservation Reserve Program by finding or providing agricultural area or if anyone who likes to stop working in agriculture or a group of socially disadvantaged farmers, could be used into an area.
  5. To collect all organic products into marketing program which organic products would be supported money contribution to expand marketing, techniques, marketing research and helping value added of products.
  6. Under Conservation Loan and Loan Guarantee Program, agriculturists who qualify according to be beginning farmers or socially disadvantaged farmers, they will be supported by money loan to use into producing organic products.
  7. To increase more budgets for Organic Agriculture Research and Extension Initiative in 2009-2012 around $78 million and adding more important process at the first such as the results of environmental organic agriculture study and improving new seeds for organic producing system.
  8. To increase more budgets for National Organic Certification Cost-Share Program in 2008 about $ 22 million; the highest rate which the central U.S. government will be eased about processing payment that was 75% or around $ 750 million per an operation.

2) Import

The statistics import number of organic products of U.S. in 2005 was $ 1.5 thousand million.

3) Size/Marketing Values

In 2007, the total circulation of all organic products in U.S. Market has estimated about $ 21.2 thousand million; only foods and drinks organic products were about $ 20 thousand million (there were estimated that total circulation of foods and drinks organic products would be 3% of overall circulation of foods and drinks).

The circulation of organic products has been expanding since 2007.This tendency could be predicted the marketing growth average 20% per year; only foods and drinks organic products have grown average 18% per year. So if it was estimated the number mention above to predict the organic products in 2008; it should totally be around $ 25thousand million and the total of foods and drinks organic products should be $ 23.6 thousand million. Unfortunately, in 2008 the business was crisis; this had effected to the business growth; it had decreasedexpectedly. In 2008, it was estimated that foods and drinks organic productswould be increased by 12% which was lower than estimation at 6%.

4) Consumers

Group of consumers for organic products are mainly healthy people who care oneself, environment and animals. People have been changing lifestyle of consumingfrom small group to be big one in sometimes. Moreover it is seen that organic products have been expanding to higher level marketing as Wholefood and Trader Joe’s to lower as Walmart and more expanding to mainstream. In other hand, people in US prefer to have organic products increasingly and be safe from insecticides in any shops recently.

The large organic markets are located in Pacific Northwest, Western Region and Northeast of U.S.A.

5) Kinds of popular foods and drinks organic products

Organic products in US markets are included vegetables, fruits, fresh meat, food and drink products, supplementary foods, cosmetics, cleaning body and house products, feeds, clothes, infant products and house weaving appliances.

Statistics in 2005, fresh vegetables and fruits were the highest selling at 39%; milk and butter were 15%; beverages were 14%; delicatessens were 13%; breads and cereals were 10%; snacks were 5%; meat and fish were 2% respectively.

Organic products were not daily life consuming which was the highest selling; they were healthy products. In 2005, the best sellers were $ 282 thousand millions, and delicatessens were respectively.

6) Channels of marketing for organic products

There are 3 channels of organic products marketing in U.S. they are specific natural foods shop, general foods shop and direct sale to consumers. According to statistic in 2005 it was revealed that the natural foods were occupied by the most needs in marketing. It was the most sold by 47% of the natural foods shop, 46% of the general foods shop and other remainders was from direct sale. Direct sale can be done through farmers’ market and online etc. In 2006 however, it was reported that the natural foods was shared in the market about 44%, while grocery as the mass market was the biggest market for organic products. It was shared in the market as 38%. Moreover it is said that because the business as mass market has been expanding quickly.

7) Law and rules of register

On August 2, 2002, the standard of organic products according to the Ministry of Agriculture of U.S. has valid to use perfectly according to the law. Organic products in U.S. needs to follow this standard by checking and concerning from private organization that is guaranteed by the Ministry of Agriculture of U.S. and it is compulsory put the symbol of the Ministry of Agriculture of U.S. on the title of USDA on an organic label.

The symbol of USDA organic label has three types; they are as follows:

  1. It is circle. Circumference is brown color. The alphabets of semi-circle are “USDA”, green on white color as background, under of semi-circle has ORGANIC alphabets, white on green as background.
  2. It is circle. Circumference is black color. On the top of semi-circle has USDA, black on white as background or transference, under of semi-circle has ORGANIC alphabets, white or transference on black as background
  3. Under of semi-circle in item 1 and 2 has 4 lines as well as a bed.

Definition of organic products

The Ministry of Agriculture of U.S. has defined according to the U.S. law on the title of “Organic” is included overall agricultural products [including aquatic animals from water sources or cultivations and foods for feeding domestic animals that are included all raw goods or agricultural products which are passed by producing processes as ingredients] which are produced and managed by rules of the Ministry of Agriculture of U.S. specified only that can be concluded briefly as follows:

  1. Meat, poultry and egg are from domestic animals without hastening hormone or using antibiotics. These domestic animals would be feeding supplementary foods as vitamins or ores or organic foods, appropriate, clean and moveable environment, be not ill treated or detained.
  2. These goods would be not amended by heredity or sterilized by radiation.
  3. These cereals should be planted by good quality of soil, without any chemical fertilizers or manures, taking care state of soil by planting rotated crops, and covered crops. Fertilizer can be from humus and eradicated weeds by loosening the soil. Harvesting should be done by hands or machines or covered crops without any chemicals.
  4. Pests or vegetation disease should be protected or treated by using good insects play as enemy of other insects that might be harmful to vegetations. Entrapping or driving out other harmful insects should be used naturally without any chemicals.
  5. Matters of organism are invented by human beings that are allowed to use in producing crops or feeding domestic animals such as alcohols, ethanol, isopropanol, calcium hypochlorite, chlorine dioxide, sodium hypochlorite, hydrogen peroxide, elemental sulfur, lime sulfur, and sulfur dioxide. All of these, the Ministry of Agriculture of U.S. will specify which substance should be used with producing products or how to use them properly.
  6. Process of production or management should not be used with these substances such as sulfites, nitrates or nitrites, but it is excepted that grape wine if those grapes are planted by the process of organic farm and it can be put substance as sulfites in the processing production, but it is allowed to put in the label as “made with organic grapes”.
  7. In the case of mixing components, each individual of component must mix with organic productions; it should be mixed with the same item; it is said that item is not from the component of organic production or the component of organic production. Using the same components by mixing between organic production and non-organic production are prohibited.

The file of request for organic certification

  1. The file of request for goods is compulsory to follow the law of production and management for organic goods.
  2. The plan of producing and management systems is fixed by organic goods production; taking the plan to use and edit applying according to the world changes. It is compulsory to enclose the plan for consideration when the file of request for organic certification is submitted.
  3. Allowing the officers to check any spots of manufactory and all processes of production and management of goods both of organic goods and non-organic goods are needed.
  4. To keep all records of related performance of producing organic goods at least 5 years, and allowing officers to check the records are needed.
  5. It is paid of fee for certificate.
  6. An application form is identified by:
  7. The plan of production and management (Item 2)
  8. The name of a person who fills the form, business’s name of the applicant, address, contact number, in the case of applicant’s status is corporation, it is compulsory needed identifying the name, address, contact number of a person who is given authority as the representative of the applicant.
  9. Name of the officer who has authority in the certification, in the case of the applicant used to apply in the past, the year of applying, the result of applying, all the copies of documents were informed by the officer who issued the certification, in the case of a person who applied in the first time did not passed the consideration, for the next of applying, the applicant must explain in any processes why he/she had to change the goods.
  10. Consideration of issuing the certification will be processed by checking the document, sending the officers to check the process of the manufactory while the expert stuff of the manufactory needs to be company, explained and answered the questions from the officers also at the same time.

Sealing off the label of organic products
Sealing off the label of organic products can be 4 characterized as follows:

1. "100 percent organic" means a mixture of all ingredients is produced by organic. Either by weight or by volume of fluid is not excluding salt and water.

2. "Organic" means a mixture of organic products whether in the form of raw or processed already. They would not be less than 95 percent, whether by weight or fluid volume, excluding salt and water. The remaining ingredients must come from organic production as well; unless the ingredients are not producing as many in the trade or as a condiment that is not agricultural.

3. "Made with organic … (Identify named ingredients or food groups)" is a product with ingredients that have been manufactured with organic treatments in the proportion of not less than 70 percent, whether by weight or by volume of fluid, excluding salt and water.

4. Products with ingredients that have been produced with organic methods in proportions lower than 70 percent, whether by weight or volume of the liquid, excluding salt and water through the production process and the law. This product can not be identified as product “organic” ingredients can be identified as a mixture or as "organic" only.

8) Chances, problems and objections

Chances:

Organic products have very good chances U.S. market. Considering the current situation of the United States is as follows:

1. Trend lifestyle of the American people today is critical to a healthy body and good health increasingly by exercise and eating healthy. In addition to this it is also important to protect the environment, which is a key element to support a healthy lifestyle and good health.

2. Environmental problems and efforts to protect the environment is most Americans give a very strong interest in the present and taken as a guide to daily living. This attitude resulted in opportunities for other organic products in addition to food and beverage products such as for maintenance and refurbishment of the body, products for household cleaning, baby products, and pet foods and so on.

3. Problem of obesity especially in a young population is a major problem in the United States where are much interested from the public.

4. Problem of insecurity in the consumption of food products that come from production in normal production occurred more frequently especially during the years 2005-2006.

5. U.S. consumers receive the greater knowledge of nutrition.

6. The characteristic of U.S. populations are likely trended that in future the majority of the population is elderly and these populations are critical to the health of their maximum.

7. Markets for organic products in the U.S. today are not a niche market anymore, some consumer groups but consumers have access to mainstream infrastructures can be purchased in retail stores everywhere and almost every market and consumption is likely to grow even more so in the general consumer market.

8. Goods are imported organic products have the potential to be sold at lower prices than goods produced domestically.

9. Organic products in the U.S. market are not of the exotic imports for U.S. consumers because it is now available in the U.S. market with a big numbers for a long time. The first generation of organic products to the U.S. market was mostly of the imported goods, and even in the import trades of organic products are more export trade.

Problems and barriers to domestic production

Oil prices on the world market and the expansion of energy production from corn oil are resulted in soaring prices of corn and fodder. Farmers interest to plant corns which are products with high demand in the market and the price is better than organic farming usually have high production costs. And the present high cost of producing more goods from various grains for animal feed market has skyrocketed due to lower productivity because farmers to grow corn for fuel production entered the market even more. For new generation of farmers, the new version will turn to organic farming will suffer the cost of production, higher still facing revenue missing three years, during which period the earth is nontoxic before from organic farming.

Problems and barriers to market to consumers

Major obstacle to growth is the price of a normal economic situation. Organic products are priced higher than the market rate, usually at least one product. For example milk production from the regular price of not more than three dollars a gallon, while the fresh milk organic produce will have a higher rate or more. In the case of rice, organic rice products may be priced higher than normal production of rice two or three times.