Oregon’s organic sector continues to grow

Published 4:45 pm Thursday, May 11, 2023

Oregon’s organic farming sector continues to expand in acreage and sales, according to several new studies.

Oregon more than doubled its organic acreage between 2008 and 2021, from 105,600 acres to 228,000 acres, according to the National Agricultural Statistics Service.

The state’s expanding organic sector reflects a broader national trend. On May 10, the Organic Trade Association reported organic food sales in the U.S. in 2022 hit $60 billion for the first time. Total organic sales, including non-food products such as cosmetics, hit a record $67.6 billion.

Growth in the organic sector happened despite supply chain disruptions, global political events, labor shortages and consumers tightening their wallets in the face of inflationary pressures.

“Organic has proven it can withstand short-term economic storms,” Organic Trade Association CEO Tom Chapman said in a statement.

According to a new market assessment conducted by Highland Economics and commissioned by Business Oregon, for the past 15 years, Oregon has been among the top five states for total farmgate value of organic products. In 2021, the value was $386 million. Manufactured organic products that year generated an additional $582 million in revenue.

“This new assessment presents a rich portrait of Oregon’s strength as a leader in organics,” said Amy Wong, chair of the Oregon Organic Coalition, a nonprofit trade organization.

The study found that small organic farms focused on direct-to-consumer sales, such as selling at farmers markets or through Community Supported Agriculture programs, capture more of the consumer food dollar than farms working with wholesalers or distributors.

While many of the state’s organic crops are annual, some are perennial and require a significant upfront investment, including berries, tree fruit, nuts and winegrapes.

Blueberry production leads the state’s organic fruit sector, making up 88% of the total sales value. Oregon has the second-highest number of organic blueberry acres after California.

According to the report, the crop has had “explosive growth” over the past decade. Harvested acres grew by more than 600% and sales value by more than 500% between 2011 and 2021.

Oregon is also a strong producer of organic non-citrus fruit, including apples and pears. In acreage, number of farms and sales value, Oregon is the third in the nation in the sector, behind California and Washington. Between 2016 and 2021, the state’s organic fruit acreage grew 90% and sales value grew 74%.

In 2021, organic hazelnuts made up only 0.4% of the state’s total hazelnut acreage, but Oregon is the nation’s leader in organic hazelnut production, hosting 80% of the country’s total harvested acres and 86% of total national sales.

Oregon producers in 2021 harvested 1,480 acres of organic grapes and sold $12 million in organic grapes for wine production.

Although many organic farms are small, more than 30% of the certified farms in Oregon have more than $250,000 in sales annually and 21% have more than $500,000 in sales.

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