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Not all growers of organic fruits, veggies feel economic pinch: Some stores, suppliers see steady growth.
(Fresno Bee (CA) Via Acquire Media NewsEdge) Jan. 3--A gloomy economy may be pinching sales of some segments of the organic food market, but not everyone is feeling the pain.
Produce sales at Kristina's Natural Ranch market in Fresno are up 15%, said store owner Jim Belcher.
And several suppliers of organic produce delivered directly to consumers say they, too, are pleased with their sales.
At Abundant Harvest Organics in Kingsburg, Vernon Peterson said his operation has seen steady growth, increasing at times by 1% to 2% a week. The company supplies weekly boxes of organic produce for nearly 1,600 customers from Fresno to Simi Valley through its Community Supported Agriculture program.
Tom Willey of T&D Willey Farms in Madera, on the other hand, said his base of 850 customers is holding steady.
"We may not be experiencing the growth spurt we would like this time of year, but we are also not losing a lot of people," said Willey, whose fresh produce boxes cost $15 and $20. "I think once people are convinced that organic food is very important to their health and well being, they will eliminate other things, other than good quality food."
Nationwide, organic food and beverages has grown from $1 billion in 1990 to an estimated $20 billion in 2007. And sales are expected to reach $23.6 billion this year, an increase of 18%, according to the Organic Trade Association.
Whether that happens remains to be seen when final numbers are tallied, said Barbara Haumann, spokeswoman for the association.
"Although the Organic Trade Association is upbeat about its projections, it may not reach an overall 18%," Haumann said. "But it will likely be in the double digits."
Haumann said that anecdotally several organic food makers are reporting healthy national sales increases, including Hain-Celestial and Nature's Path.
A clearer picture will emerge in mid-February when the Organic Trade Association completes its annual manufacturers survey.
Helping to keep organic sales from tumbling is the competitive price.
Haumann and Belcher said the gap between the price of organically grown produce and conventional produce has narrowed over the years, making their products more affordable to a larger number of consumers.
Buyers of organic produce also see the boxes of fruits and vegetables as a value, Willey said.
"People are using the boxes to prepare more meals at home and not going to the supermarket as much to buy prepared foods," Willey said.
In addition, traditional grocery stores continue a commitment to organic products, even offering products under their own label, according to the Organic Trade Association.
While consumers continue to buy, some high-end restaurants have slowed their purchases of organic produce.
Sharlyn and Lou Pasquale, who grow specialty vegetables on their Il Giardino Organico farm in Fresno, said they have seen about a 10% drop in their restaurant business.
"People are buying less because not as many people are eating out as much, especially at the upper-end restaurants," Sharlyn Pasquale said. "It just goes right down the line."
The Pasquales, who also sell at farmers markets, said their regular customers continue to buy their produce, which includes arugula, chicory and heirloom vegetables.
"We are trying to be optimistic," Lou Pasquale said. "But I think it is going to get tougher as we continue. There are a lot of people who are watching their spending right now."
The reporter can be reached at brodriguez@fresnobee.com or (559) 441-6327.
To see more of The Fresno Bee, or to subscribe to the newspaper, go to http://www.fresnobee.com
Copyright (c) 2009, The Fresno Bee, Calif.
Distributed by McClatchy-Tribune Information Services.
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