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Shortage of Organic Ingredients in the USA Spurring $1.5 Billion in Imports

Web Note: Sales of certified organnic products in the USA reached $15
billion in 2005, of which $1.5 Billion or 10% were imported. USA organic
exports, on the other hand, totaled $150 million or 1% of sales.

From: Organic Business News Feb. 29, 2006

Ingredient Shortage Hurts US
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,² 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

"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.