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Consumer demand for organic foods is expected to continue
growing rapidly in the U.S. and other major markets, and
the competition for these markets is likely to increase
considerably.
- Growth in organic agricultural production is taking
place in both developed and developing
countries worldwide, and the competition for major
consumer markets in developed countries is increasing.
- Preliminary USDA estimates show that the value of
organic imports into the U.S. far exceeds the
value U.S. organic exports.
The U.S. does not have consistent data on organic trade
because organic product codes have not yet been added
to the U.S. and international harmonized system of trade
codes. Preliminary
estimates from USDA's Foreign Agricultural Service put
the value of U.S. organic imports in 2002 at between
$1.0 billion and $1.5 billion, while
the value of U.S. organic exports was $125 million
to $250 million. According to FAS, major organic imports
include fresh fruits and vegetables, coffee, tropical
produce, and other products not grown in the U.S.,
as well as processed food and ingredients for manufactured
products. Import sources span Canada, Latin
America, Asia, and Europe. U.S. organic exports include
soybeans, food ingredients, fruit juices, frozen vegetables,
and dried fruit. Export markets include Canada, Japan,
the European Union, Taiwan, South Korea, New Zealand,
and Australia.
Organic imports have played a significant role in the
U.S. market expansion for organic products. Again, concrete
data are not yet available,
but FAS estimates that imports accounted for 12-18 percent
of the $8.6 billion in U.S. organic retail sales in 2002.
Organic imports from countries with lower labor and input
costs have nearly replaced U.S. organic production in
some commodity sectors. For example, U.S.
organic cotton acreage has fallen substantially since
the mid-1990s, even as the market for organic cotton has
expanded with increased use by major clothing manufacturers.
USDA's organic rules streamlined organic
import procedures, and over 40 foreign
programs are currently accredited to U.S. standards.
The U.S. also has recognition
agreements on organic imports with six countries,
including the UK. Many USDA-accredited certifiers
also service U.S. organic exports,
but exports must meet many different standards
that typically vary across destination countries.
See related readings
on organic agriculture.
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