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U.S. Northwest organic sector grows, but processing capacity lags

Organic agriculture continues to expand in the U.S. Northwest, supported by diversified production systems and large areas of farmland, according to an analysis by the Rodale Institute.

Washington ranks second in the United States for organic sales with about US$1.14 billion annually, while Oregon ranks among the top ten states for both organic acreage and farmgate value. The Rodale Institute promotes organic farming through research, training, and education.

Joe Dickson, a senior associate for Wolf and Associates and consultant to retailers, said supply chains remain longer than necessary for several organic products. "In general, we're talking about shortening supply chains that already run through the region, and capturing more value along that value chain," Dickson said during a webinar. "Even in the Northwest, there are a lot of high-demand organic products that travel long distances before they land on the shelves."

The discussion referenced a Northwest regional "farmers' toolkit" prepared by Rodale with support from Wolf and Associates, the National Transition to Organic Partnership Program, and the Organic Trade Association. The toolkit is one of eight developed for different regions in the United States, together with a national analysis and a Buyer's Landscape.

The Northwest toolkit covers Oregon, Washington, Idaho, Montana, Wyoming, and Alaska. The region has 2,824 certified organic operations covering nearly 566,560 hectares. The climate zones and farmland allow the production of several organic crops.

Washington and Oregon account for a large share of U.S. organic apple, pear, cherry, and blueberry production. Organic apple acreage in Washington exceeds 14,160 hectares, representing nearly 90 per cent of the national total. Oregon leads in organic blueberries and tree nuts and has an expanding small fruit processing capacity in the Willamette Valley.

During the Organic Grower Summit in December, Doug Perkins, business development manager at Home Grown Organic Farms, said the U.S. organic blueberry sector continues to operate despite growing competition. "From the organic standpoint, the U.S. is still king," Perkins said.

Rodale's analysis notes that the Northwest's organic sector faces limits in midstream infrastructure, such as storage and processing. In some cases, fruit is shipped out of the region for processing and then returned for retail sales in cities such as Portland and Seattle.

Dickson said processing, storage, and distribution capacity remain key constraints. "For a lot of these crops, what's not often missing is farmer capacity, it's midstream capacity," he said.

Source: FarmProgress

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