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Procurement and Contracting by Organic Handlers: Procurement Data 2007

Contents
 

This data table is from the organic handlers procurement data, which provides information such as handler operational and purchasing characteristics. Procurement data include information on 9 commodity groups and 45 commodities at the national, regional, and/or State level from 1,013 handling facilities.

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All Commodities Combined in National Totals 2007

Basic characteristics of handlers
Range of number of handlers    over 40 
Function 1/ 2/ Manufacturers/processors 72%
All other functions 43%
All handlers Manufacturer/ processor All other functions
Size of firm 3/ Percent of handlers 4/
Small 58% 58% 59%
Medium 34% 34% 32%
Large 9% 8% 9%
Operational characteristics
Converted or expanded to organic from conventional 66% 66% 60%
Began as an organic or mixed facitlity 34% 34% 40%
Handles both organic and nonorganic products 82% 84% 80%
Handles only organic products 18% 16% 20%
Purchasing characteristics of handlers 
All handlers Manufacturer/ processor All other functions
Geography of purchasing 5/ Percent of handlers
Buys locally (within one hour's drive) (any amount) 56% 56% 64%
Buys locally (more than half) 25% 24% 30%
Buys regionally (within the State or surrounding States)  (any amount) 64% 64% 69%
Buys regionally (more than half) 28% 29% 26%
Buys nationally (any amount) 66% 68% 66%
Buys nationally (more than half) 43% 43% 38%
Buys internationally (any amount) 23% 21% 28%
Buys internationally (more than half) 5% 4% 7%
Type of sales arrangement
Formal contract (written) 56% 55% 56%
Informal contract (e.g., handshake or verbal) 36% 36% 38%
Spot market 51% 52% 55%
Type of suppliers
Growers 51% 48% 61%
Marketing or growers' cooperative 21% 21% 23%
Manufacturer/wholesaler 54% 58% 49%
Agents/brokers 29% 31% 29%
Assistance offered to suppliers
Works with organic suppliers in business for less than 1 year 30% 29% 35%
Provides technical advice on organic standards or production 30% 28% 36%
Works with suppliers to increase production 27% 25% 37%
Accepts shipments that are less than a full carload 36% 36% 39%
Provides financial assistance/cost share with certification costs 8% 7% 10%
Provides financial assistance with transition to organic 5% 5% 5%
Characteristics of the handler-supplier relationship
All handlers Manufacturer/processor All other functions
Always Sometimes Never Don't know Always Sometimes Never Don't know Always Sometimes Never Don't know
Supplier requirements Percent of handlers
Organic certificates 95% 3% 1% 0% 95% 4% 1% 0% 96% 2% 1% 0%
Product specifications for packaging and merchandising 37% 26% 33% 4% 42% 25% 29% 4% 26% 30% 40% 4%
Testing to verify product claims (e.g., free of genetically modified organisms) 63% 15% 17% 4% 63% 16% 17% 4% 62% 16% 18% 4%
Third party food safety certification 28% 31% 34% 8% 28% 31% 34% 7% 25% 31% 36% 8%
Uniform product standards (e.g., size standards) 51% 21% 24% 4% 54% 20% 22% 4% 43% 27% 28% 3%
Minimum quality standards 26% 28% 41% 6% 28% 28% 39% 5% 21% 29% 45% 5%
Minimum quantity for shipments 26% 26% 43% 5% 27% 27% 41% 4% 23% 26% 46% 5%
Certifications for other attributes (e.g., kosher, fair trade) 38% 21% 34% 7% 39% 22% 33% 6% 37% 21% 35% 7%
All handlers Manufacturer/processor All other functions
High priority Medium priority Low priority No difference High priority Medium priority Low priority No difference High priority Medium priority Low priority No difference
Ranking of Supplier Attributes Percent of handlers
Local (near my facility) 36% 23% 20% 21% 38% 23% 20% 19% 35% 22% 20% 22%
Knowledge of organic products 62% 25% 6% 7% 62% 26% 5% 7% 64% 23% 6% 7%
Length of relationship with my facility 37% 36% 16% 11% 36% 37% 17% 10% 40% 35% 14% 11%
Length of time certified organic 14% 36% 32% 17% 15% 36% 33% 16% 13% 36% 33% 18%
Diversity of products available 17% 31% 29% 23% 17% 30% 32% 21% 19% 30% 28% 24%
Availability of year-round supply 52% 20% 14% 13% 57% 20% 13% 10% 42% 21% 18% 18%
Flexibility in meeting facility's needs 54% 32% 7% 7% 56% 33% 5% 6% 49% 32% 9% 10%
Reputation for quality 69% 23% 3% 5% 69% 24% 2% 5% 72% 20% 2% 5%
Price 45% 41% 8% 6% 47% 41% 7% 5% 42% 42% 9% 7%
N/A = Not available, not applicable, or not reportable for reasons of confidentiality (fewer than three respondents).
1/ Firms often reported more than one function; responses from a single firm may be reported in both the “Manufacturer/processor” and “All other functions” columns. Thus, summing across functions often exceeds 100 percent.
2/ Non-responses to all questions are not reported.
3/ Respondents self-identified their firm size as small, medium, or large.
4/ See the Documentationfor how the percentages are calculated.
5/ See the Documentationfor an indepth discussion on geography of purchasing.
For more information, contact: Carolyn Dimitri

Web administration: webadmin@ers.usda.gov

Updated date: August 5, 2009