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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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Grapes in National Totals 2007

Basic characteristics of handlers
Range of number of handlers    26 - 40 
Function 1/ 2/ Manufacturers/processors 76%
All other functions 30%
All handlers Manufacturer/ processor All other functions
Size of firm 3/ Percent of handlers 4/
Small 59% 54% 70%
Medium 31% 38% 20%
Large 9% 8% 10%
Operational characteristics
Converted or expanded to organic from conventional 77% 80% 75%
Began as an organic or mixed facitlity 23% 20% 25%
Handles both organic and nonorganic products 81% 88% 67%
Handles only organic products 19% 12% 33%
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) 66% 64% 70%
Buys locally (more than half) 31% 28% 20%
Buys regionally (within the State or surrounding States)  (any amount) 44% 48% 50%
Buys regionally (more than half) 16% 16% 30%
Buys nationally (any amount) 66% 72% 60%
Buys nationally (more than half) 41% 44% 40%
Buys internationally (any amount) 34% 32% 40%
Buys internationally (more than half) 6% 4% 10%
Type of sales arrangement
Formal contract (written) 65% 71% 50%
Informal contract (e.g., handshake or verbal) 35% 33% 30%
Spot market 35% 33% 30%
Type of suppliers
Growers 76% 80% 60%
Marketing or growers' cooperative 21% 28% 20%
Manufacturer/wholesaler 36% 40% 40%
Agents/brokers 15% 20% 10%
Assistance offered to suppliers
Works with organic suppliers in business for less than 1 year 34% 42% 30%
Provides technical advice on organic standards or production 34% 38% 20%
Works with suppliers to increase production 25% 29% 20%
Accepts shipments that are less than a full carload 28% 33% 20%
Provides financial assistance/cost share with certification costs 9% 8% 10%
Provides financial assistance with transition to organic 9% 13% 0%
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 97% 3% 0% 0% 96% 4% 0% 0% 100% 0% 0% 0%
Product specifications for packaging and merchandising 35% 42% 23% 0% 42% 42% 16% 0% 20% 60% 20% 0%
Testing to verify product claims (e.g., free of genetically modified organisms) 67% 11% 22% 0% 71% 14% 14% 0% 29% 29% 43% 0%
Third party food safety certification 25% 33% 42% 0% 26% 37% 37% 0% 25% 38% 38% 0%
Uniform product standards (e.g., size standards) 42% 29% 29% 0% 42% 32% 26% 0% 13% 25% 63% 0%
Minimum quality standards 15% 31% 50% 4% 15% 35% 45% 5% 0% 22% 78% 0%
Minimum quantity for shipments 19% 19% 58% 4% 20% 25% 50% 5% 11% 11% 78% 0%
Certifications for other attributes (e.g., kosher, fair trade) 28% 20% 52% 0% 26% 26% 47% 0% 22% 22% 56% 0%
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) 58% 10% 16% 16% 63% 8% 17% 13% 38% 13% 25% 25%
Knowledge of organic products 58% 32% 6% 3% 48% 40% 8% 4% 75% 13% 13% 0%
Length of relationship with my facility 42% 48% 6% 3% 36% 52% 8% 4% 25% 50% 25% 0%
Length of time certified organic 23% 17% 47% 13% 21% 17% 54% 8% 13% 13% 50% 25%
Diversity of products available 10% 30% 33% 27% 13% 29% 29% 29% 0% 38% 38% 25%
Availability of year-round supply 36% 21% 14% 29% 35% 26% 13% 26% 33% 17% 33% 17%
Flexibility in meeting facility's needs 39% 52% 10% 0% 38% 54% 8% 0% 33% 56% 11% 0%
Reputation for quality 60% 37% 3% 0% 61% 35% 4% 0% 44% 44% 11% 0%
Price 37% 63% 0% 0% 35% 65% 0% 0% 44% 56% 0% 0%
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