Grower-shippers of organic produce appear to be surviving, if not thriving, despite such challenges as inflationary pressures, supply shortages and skyrocketing labor costs.
“The 2023 growing year was pretty normal with no extreme events that indicate a short supply,” said Catherine Gipe-Stewart, director of marketing for Domex Superfresh Growers Inc., Yakima, Wash.
Apples, pears, cherries and blueberries are the main organic items sold by Superfresh Growers. The company expected flat growth on organic apples, flat or slight growth in cherries, an 18% increase for pears and continued growth in organic blueberries as the firm expands its acreage.
“Organic cherries are becoming rarer and rarer in existence with little cherry virus prevalence, and our acreage of organic cherries has decreased over the years,” Gipe-Stewart said.
Nonetheless, she said crop estimates are suggesting a 45% increase on the company's organic supply across the board.
Some freeze damage was reported for cherries in the northern high-elevation blocks, she said, but Superfresh Growers' corporate farms were not affected.
“Our late-season orchard blocks experienced minimal, if any, freeze damage, and we expect a promotable cherry crop into August,” Gipe-Stewart said.
It also was a great spring opening for blueberries, she said in early April.
Ellie Norris, a Superfresh grower, said there was a good balance of rain with sunny days at the firm's Roseburg, Ore., farm.
“We are now eagerly awaiting pollination, which looks positive with our current forecast,” Norris said.
Apples are the primary springtime organic crop at Stemilt Growers Inc., Wenatchee, Wash., with gala, Honeycrisp, fuji, Pink Lady and granny smith among the main varieties, said Brianna Shales, marketing director.
“According to Nielsen retail scan data, organic Honeycrisp has grown 25% in volume this season and 13% in sales,” Shales said. “This is likely due to robust promotions with increased organic availability this year compared to last.”
Although organic gala, fuji and Pink Lady have increased volumes over last year, they show a dip in dollar sales, she said.
“It was a great growing season for apples last summer and fall,” Shales said. “Storage methods for organics have come a long way and allow us to supply organic for 52 weeks a year with great freshness and eating qualities.”
Stemilt also offers organic pears, cherries and stone fruit later in the year.
About 30% of the fruit produced by Stemilt is organically grown.
Volume of organic white and brown mushrooms from Leamington, Ontario-based Highline Mushrooms is expected to remain consistent this year with year-round production, said Devon Kennedy, national marketing manager.
“We will be relaunching our organic white flat mushrooms this spring,” Kennedy said. “They are similar to a portabella mushroom and are absolutely fantastic grilled on the barbecue or seasoned and topped with a fried egg for breakfast.”
Highline also is seeing demand for its steak-cut sliced mushrooms, which Kennedy said are a great addition to salads, stir-fry and sautéed side dishes.
Growing organic mushrooms is a sustainable endeavor, Kennedy added.
“Producing 1 pound of organic mushrooms requires only 1.8 gallons of water and only 1 [kilowatt-hour] of electricity,” Kennedy said. “As well, mushroom farms achieve remarkably high yields on limited land because they are grown in stacked beds. One acre of land can yield up to 1 million pounds of mushrooms.”
Apples, pears and cherries are the main organic products from Sage Fruit Co., said Kaci Komstadius, vice president of marketing.
“Our most sought out organic item by retailers is organic Honeycrisp apples, but organic gala and fuji don't fall too far behind,” she said.
While the organic Honeycrisp is a high-end consumer favorite with an excellent ring at the register, organic gala and fuji apples are a good option for the everyday organic consumer since they're more price friendly, she said.
“This season, there are excellent promotional opportunities on all organic apple varieties,” Komstadius said.
Sage Fruit Co. now is experiencing an increase in demand for organic cherries, even though it has not been nearly as strong as commodities such as apples or pears in the past, she said.
“Organic cherries are much more labor intensive to grow, which results in higher retail pricing,” Komstadius said. “The higher pricing isn't as attractive to the end consumer, but as they continue to be more health conscious, consumers are more likely to consider purchasing organic cherries.”
Wenatchee, Wash.-based CMI Orchards LLC offers the core apple varieties as well as branded ones, like Ambrosia Gold, Cosmic Crisp, Envy, EverCrisp, Jazz, Kanzi, KIKU, Smitten and SugarBee, says Rochelle Bohm, vice president of marketing. (Photo courtesy of CMI Orchards LLC)
Wenatchee-based CMI Orchards offers the core apple varieties as well as branded ones, like Ambrosia Gold, Cosmic Crisp, Envy, EverCrisp, Jazz, Kanzi, Kiku, Smitten and SugarBee, said Rochelle Bohm, vice president of marketing.
“Coming up soon with cherry season, we'll have organic red, rainier and organic Skylar Rae cherries this season,” she said.
Branded organics far surpass conventional core and branded apples in sales and volume performance — up 49.7% in sales and 39.4% in volume, Bohm said.
“Branded apples deliver an exceptional way to boost category sales,” she said. “Retailers who make sure their shoppers have the branded varieties they love in an organic option will see incremental sales across their produce department.”
CMI Orchards has had a great crop this season, she said, “with excellent eating quality and condition as well as strong promotable volume.”
About 20% to 25% of the company's apples, pears and cherries are organically grown.
Looking ahead
While optimism generally prevails among industry members, opinions vary on the precise direction of the organic category.
“In my own opinion, consumer demand for organics has flattened,” said Gipe-Stewart of Superfresh Growers. “Until there is another global event that causes severe consumption changes, holding 10% to 12% organic volume versus conventional will remain normal.”
Shales of Stemilt Growers said it's difficult to predict the future of the organic category “because the inflationary period that has hit all grocery is certainly impacting organic sales.”
But Komstadius of Sage Fruit Co. expected organic demand to remain high.
“Roughly 52% of organic consumers are millennials, and they account for 23% of the U.S. population,” she said. “In addition, Gen Z accounts for almost 21% of the population, and we expect that they will continue a path of organic purchasing.”
Bohm of CMI Orchards said she also expected the organic category to continue to expand based on data showing organics outperforming conventional in both sales and volume.
“Shoppers are only getting more discerning and more thoughtful about what they spend their money on, and they want to know that they can feel good about the food they eat,” she said. “For many shoppers, this means buying organic food they can trust.”
Kennedy of Highline Mushrooms also expected the organic mushroom category to continue to grow.
“We are seeing this in certain regions across North America, but with 52% of American households purchasing fresh mushrooms, there is a huge opportunity for growth,” Kennedy said. “Current trends show that overall growth in organic sales is outperforming conventional growth.”