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US: Organic growers deterred by costs

Farmers and growers in the US are being discouraged from growing organic produce despite rising demands, according to Matt McLean, owner of Uncle Matt's Organic Fruit Juices. McLean says that the requirement for organic producers to pay a surcharge on federal crop insurance, which is very often not reflected in payouts, is driving growers away from organic production. This, coupled with the extra costs involved with growing organically, are simply proving too strong a deterrent for some people.

This has the potential to lead to a shortfall in organic produce as demand continues to grow. in 2010 the organic produce industry was worth $26.7 billion, up from $6.1 billion ten years previous. The shortfall is likely to see a rise in prices at the consumer end of the market. McLean is urging more organic producers to come forward and raise the issue of insurance at government level.

Source: www.businessweek.com

Publication date: 1/19/2012


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