- A new report from CoBank revealed that increasing consumer demand for organic and non-GMO foods was responsible for a big rise in 2016 organic grain imports, according to Food Manufacturing.
- The high number has caused food manufacturers to explore new incentives for U.S. growers transitioning to organic production.
- Although U.S. production of non-GMO crops has risen over the past year, domestic production of items such as organic corn and soybeans falls well short of demand.
A recent TechSci Research report revealed that the global organic food market is projected to grow at a CAGR of more than 14% from 2016 to 2021. In order for supply to keep up with this demand, however, more farmers will need to get on board the organic train.
Earlier this year, the U.S. Department of Agriculture teamed up with the Organic Trade Association to start a program that certifies produce grown on farmland that's in the process of switching to organic, making it easier for farmers to make the switch.
Going organic provides some pretty obvious benefits to manufacturers, too. People interested in these products, as well as those that are non-GMO, are more inclined to pay higher prices for food.
The current challenge for manufacturers is that organic ingredients are more expensive and not as readily available as non-organic produce. This raises prices, which could discourage consumers who are on the fence about buying organic It could also hurt a brand's reputation if it finds itself with too low a supply of a particular organic product.