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The vast majority of organic commodities pass through
the hands of at least one middleman, also called a handler,
on the way from the farmer to the consumer. Similar to
their conventional counterparts, organic handlers are
firms that buy organic products from farmers and other
suppliers, process or repack the goods, and then sell
the resulting value-added products to retailers, institutions,
and other handlers, or directly to consumers or restaurants.
Certified organic intermediaries, however, are required
to handle organic products in accordance with National
Organic Standards.
Research on distributing organic products makes use of
data collected through two ERS surveys of certified organic
handlers in the United States which were administered
in 2004
and 2007. The number of certified organic facilities
increased to 3,225 in 2007 from 2,790 in 2004. The survey
findings indicate that the majority of organic handlers
are "mixed" operations that deal with both organic and
nonorganic products. Many of the firms began as conventional
facilities and later added an organic component to their
businesses. Because of the competition for organic ingredients,
handlers often rely on contracts rather than spot-market
sales to procure needed inputs.
Handlers market their products to other handlers, direct
to consumers, and to retailers. Organic consumers can
now purchase organic products in a wide range of venues.
In the late 1990s, independent and small-chain natural
product stores, food cooperatives, and large natural-food-product
retailers were the primary sales outlets for organic food.
By 2006, approximately equal shares of organic food were
sold in the conventional channel, which includes stores
such as Safeway and Costco, as in the natural-product
stores. The wider reach of organic food is evident in
the fact that organic food was available in 82 percent
of retail food stores in 2007. Further, retailers have
begun moving from selling only organic branded products
to developing lines of private-label organic products,
as well as selling organic variations of long-time brands,
such as organic Heinz ketchup. The number of new organic
products increased from 290 in 1997 to 1,030 in 2008.
New organic private-label products increased from 35 in
2003 to 540 in 2007 (see chart).
See related Data Products
and Recommended
Readings on organic food distribution and retailing.
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