Maintaining Integrity
Protecting organic integrity from contamination can also be a challenge. Fields require buffer zones and segregated areas for harvests and handling. With respect to complying, “It’s all about training and ensuring you have a team well versed on the importance of not compromising the integrity of the product,” Munger says.
Consumer demand for convenience has spurred the growth of fresh-cut organic products. “Customers are definitely asking for it,” Del Toro says. But there are pitfalls and logistical challenges, especially for exports when it takes 10 days to get to the customer and a few more days to get to the consumer’s table.
Worldwide Appeal
Globally, the United States is the largest market for organics, followed by Germany, France, China, and Canada. Sales are also climbing in Mexico, but the country’s organic exports have soared, primarily due to the North American Free Trade Agreement (known as NAFTA).An estimated 85 percent of certified organic foods grown in Mexico are exported, mostly to its border mate, the United States. Work on a Mexico-U.S. equivalency arrangement—enabling organic products certified in each country to be sold as organic in the other—will reduce the cost of duplicative certifications, fees, and inspections. The United States currently has equivalency arrangements with Canada, the European Union, Japan, Korea, and Switzerland.
Despite the costs and requirements of certification and related food safety issues, Lejeune is a believer in the value of organic agriculture and its potential role in dealing with climate change. “Through organic practices, we can help mitigate the production of greenhouse gases and turn around some of their effects on the atmosphere.”
Pricing Pressure
While there are risks to organic farming, there are financial rewards—specifically, the premium price fresh organic produce can fetch. “It’s definitely more costly to grow organics, but we make up for that with the prices we can get,” comments Munger.
Carlos Ramirez is sales manager for E Foods, Inc., a distributor in Orlando, FL that sells mostly conventional produce. “Our organic specialty is tomatoes, and we’re selling organic juices from Florida.” The cost for something like apples is still too high, he believes, when adding in the cost of freight. “Prices will come down if there’s more supply,” he observes.
This, in fact, has already been occurring as big-box retailers have put pressure on the industry to lower prices. Some stores often sell organic items for nearly the same price or occasionally less than that of conventionally grown due to supply levels. “There are times of the year when prices aren’t much different,” confirms Del Toro.