Ingredient Shortage Hurts U.S.

January 2006

Shortages of many organic raw ingredients, including dairy, produce and meat, is stunting growth of the U.S. organic industry, according to a January 2006 report from research firm Organic Monitor in London. “Nearly all market sectors would grow at much higher rates if sufficient supply was available,” the report stated.

The shortages are forcing U.S. manufacturers to look overseas for raw materials. More than $1.5 billion worth of organic products are imported into the U.S. annually, compared to about $150 million in organics that are exported.

“Increasing volumes of organic fruit, vegetables, grain, seeds, beans, and herbs are being imported into the U.S.,” the report stated. Shortage of organic milk for example, is leading Stonyfield Farm, Londonderry, NH, to look at sourcing organic milk powder from New Zealand.

“With American demand for organic foods expected to strengthen in the coming years, supply shortages are likely to continue,” Organic Monitor said. That will ultimately benefit exporters to the U.S. “Unless more American farmers consider converting to organic practices, exporters are likely to capitalize on this lucrative market,” the report said.