Organic Farmers Struggle to Keep up with Demand

Sheryl Rich-Kern's picture
By Sheryl Rich-Kern on Tuesday, July 25, 2006.
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Demand for organic foods – everything from milk, to beef and produce – is growing around the nation.

In New Hampshire, the supply is not keeping up with demand.

Some think that’s a problem for the farming industry.

Yet others realize it’s an opportunity.

NHPR’s Sheryl Rich-Kern reports.

Four years ago, New Hampshire had a little over 50 certified organic farmers.

Today there are close to 100.

Many farmers choose to stop using chemicals because they believe it’s healthier.

But that reasoning is only part of the story.

Jim Putnam, of Winsome Farm in Piermont, says he was a conventional dairy farmer for twenty-five years.

Two years ago, he got fed up with fluctuating milk prices.

To save his farm and his finances, he chose a different track.

Putnam: We changed to organic so we could get a more stable market. We’ve come to enjoy the organic market, the organic way of life. We don’t push our cows so much. They’re healthier.

According to Steve Taylor, New Hampshire’s agriculture commissioner, organic farming can make economic sense.

Taylor: If people can make a buck, they’ll go and do it. Right now, some of the biggest dairy farms in the country are shifting to organic because the market opportunities are very appealing. [In Colorado, there are farms with 5,000 cows that are organic. California.] That’s what’s happening. People see a chance to make money, they pursue it.

According to the Organic Trade Association, organic food sales are growing at a rate of 17 to 21 percent each year nationwide.

In New Hampshire, Commissioner Taylor estimates sales have increased six fold since 2002, and now represent five percent of the market.

In Vermont, where farming is more widespread, Lyle Edwards of Westfield says his profits have climbed steadily since he went organic.

Edwards: Organic is the only positive thing in agriculture, at least in dairying. I’m getting 28 dollars in hundred weights. Next door is getting 11. He’s going broke.

Commissioner Taylor says organic growers are profiting as consumer demand outpaces supply.

He says part of the reason for this shortage is that deciding to go organic is only the first step.

Dairy farms have to be chemical-free for three years before they can be certified.

Taylor: If market signals continue for much longer, you’ll have plenty of production. We’re seeing more organic dairy farms coming along. It’s a temporary lag. They’ll be adequate supplies in three to five years.

While organic milk is in short supply, organic eggs pack the shelves of most supermarkets.

Gerry LaFlamme is a chicken farmer in Monroe.

He says he had an easier transition than dairy farmers.

That’s because a day-old chick can receive organic feed by day two, and within six months, can lay certified organic eggs.

Since LaFlamme went organic over a dozen years ago, the farm has multiplied its sales many times over.

LaFlamme: We started out with 20,000 layers for our market. We now are five times that in a ten year period. We’ve grown quite nicely.

While farmers like LaFlamme and Edwards have seen strong growth in their sales, organics represent only five percent of agricultural sales.

Rob Johnson is executive director of the Farm Service Bureau in New Hampshire.

He sees another driving force in agricultural sales.

Johnson: The big issue with most people, and I hear this from our growers, is that people are looking for locally grown product. They’re able to speak directly with the farmer.

Ask food shoppers at the Concord Cooperative Market, and they’ll tell you it’s organic they want.

My name is Tracy Napsted. I’m from Concord [nowadays]. I’m buying organic produce because I know it’s good for me. It also supports the kind of agriculture and industry that I believe in.

Jane Williamson from North Sutton. The quality is so much better, it tastes better, and all the chemicals that are used on agricultural lands ruin the land for one thing, but you’re also ingesting the products.

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Some consumers seem willing to pay a premium for organic food.

As they continue to do so, farmers are responding.

According to the state department of agriculture, as many as 20 farmers are currently making the switch.

For NHPR news, I’m Sheryl Rich-Kern

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