Organic State of the Union

1. Growing the Organic Market Christine BushwayExecutive Director / CEOOrganic Trade Association CCOF Annual Convention - Education Conference & Annual MeetingFebruary 18-20, 2011 - Ventura Beach, CA

3. US Organic Consumer in 2010Challenges Solutions

5. Newly Organicfamilies, those who only began purchasing organics in the past two years, comprise about 3 in ten US households (32% in 2009, 36% in 2010).

6. Experienced Organics, encompassing about 2 in 10 families (20% in 2009, 21% in 2010),first starting buying organics up to 5 years ago.

7. Seasoned Organics have been buying organics for more than 5 years and in some cases up to 15 years. They represent about 2 in 10 households (21% in 2009, 16% in 2010.)

8. Non-Buyers, about 3 in 10 households, neverbuy organic products.

9. The size of each buyer segmentremained consistentwith 2009 findings.Newly Organic ExperiencedOrganics Seasoned Organics Non-buyers Q. When did you first buy organic products, if ever? (n=1197) (n=763)

10. US Families are buying more organicsthan ever before 4 Purchases of Organic Foods Compared to 12 Months Ago Compared to 12 months ago… Buying more Buying same amount Buying less Do not buy organics in this category 2009 (n=1197) 2010 (n=763) Base: Total parents Q: Compared to 12 months ago, are you buying more, less or the same amount of organic foods in general?

11. One third say trust in organic products has increased over the past year 5 Changes in Trust of Organic Labeling Increased Decreased Stayed the same Total parents 87% 2009 92% * 2010 Organic Buyers 85% 2009 2010 91% * Base: Total parents Q: Compared to one year ago, has the extent to which you trust that products labeled as “organic” really are organic…

12. Organic Market Size and Growth Food 93% 7% Non-Food

13. Trends in U.S. Organic Agricultural Production 2008 Organic Production Survey* 14,540 organic farms & ranches in U.S. 4.1 million acres Organic farms in all 50 states 78% of farms report planning to maintain or increase organic production levels over the next five years. * The 2008 Organic Production Survey conducted as a follow-on to the 2007 Census of Agriculture by the U.S. Department of Agriculture’s (USDA’s) National Agricultural Statistics Service (NASS).

14. Trends in U.S. Organic Agricultural Production U.S. organic farms on average have higher sales, higher production expenses, and higher operating profit than U.S. non-organic farms * The 2008 Organic Production Survey conducted as a follow-on to the 2007 Census of Agriculture by the U.S. Department of Agriculture’s (USDA’s) National Agricultural Statistics Service (NASS).

15. Recent Trend Sales: Jul. – Sept. 2010 13 week dollar % change: Organic Food Sales UP 10.7%ConventionalFoodSales UP .7% 13 week unit % change: Organic units UP 11.1%ConventionalUnits UP .5% FDM ending 10/02/2010

16. Trends- Local and Regional Food Systems

17. Market Update – Local, Regional, Direct to Consumer

19. ADHD Research

20. Center for Science in the Public Interest’s warning re: food dyes

22. Connect the Dots Connect the Dots Natural and Organic – Consumer Confusion Persists One third of all consumers don’t know the truth about organic standards, as it relates to organic foods they see in retail outlets. % Mintel survey September 2009 SOURCE: MINTEL “Organic Food and Drink Retailing U.S. Report 2009” produced in collaboration with SPINS

24. 25,000+clicks/web visits

26. Solutions- Policy and Political Pressure 1. Protect our base ($) 2. Push the envelope (policy) 3. Grassroots engagement Build New Relationships | Nurture Old Friends

27. Solutions- Advance Organic Together

28. Solutions- Advance Organic Together

29. Solutions- New Data Continues to Point to the Value of an R&P Order

30. Thank You Christine BushwayExecutive Director / CEOOrganic Trade Association cbushway@ota.com Additional Resources Organic Trade Associationwww.OTA.com Organic business directorywww.TheOrganicPages.com Transitioning to organic productionwww.HowToGoOrganic.com Directory of U.S. organic exporterswww.USOrganicProducts.com Consumer educationwww.OrganicItsWorthIt.org