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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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Essential Oils/Essences/Extracts in National Totals 2007

Basic characteristics of handlers
Range of number of handlers    26 - 40 
Function 1/ 2/ Manufacturers/processors 81%
All other functions 41%
All handlers Manufacturer/ processor All other functions
Size of firm 3/ Percent of handlers 4/
Small 65% 68% 80%
Medium 27% 23% 20%
Large 8% 9% 0%
Operational characteristics
Converted or expanded to organic from conventional 67% 68% 64%
Began as an organic or mixed facitlity 33% 32% 36%
Handles both organic and nonorganic products 77% 84% 71%
Handles only organic products 23% 16% 29%
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) 40% 45% 27%
Buys locally (more than half) 16% 20% 0%
Buys regionally (within the State or surrounding States)  (any amount) 44% 50% 45%
Buys regionally (more than half) 16% 20% 18%
Buys nationally (any amount) 80% 80% 82%
Buys nationally (more than half) 60% 55% 73%
Buys internationally (any amount) 48% 45% 64%
Buys internationally (more than half) 16% 15% 18%
Type of sales arrangement
Formal contract (written) 50% 41% 70%
Informal contract (e.g., handshake or verbal) 31% 36% 20%
Spot market 42% 45% 20%
Type of suppliers
Growers 27% 23% 30%
Marketing or growers' cooperative 15% 14% 10%
Manufacturer/wholesaler 69% 68% 70%
Agents/brokers 36% 38% 33%
Assistance offered to suppliers
Works with organic suppliers in business for less than 1 year 29% 25% 30%
Provides technical advice on organic standards or production 33% 25% 30%
Works with suppliers to increase production 29% 20% 50%
Accepts shipments that are less than a full carload 21% 15% 20%
Provides financial assistance/cost share with certification costs 13% 5% 20%
Provides financial assistance with transition to organic 8% 5% 10%
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 92% 4% 4% 0% 91% 5% 5% 0% 100% 0% 0% 0%
Product specifications for packaging and merchandising 48% 30% 22% 0% 53% 26% 21% 0% 30% 50% 20% 0%
Testing to verify product claims (e.g., free of genetically modified organisms) 43% 26% 26% 4% 37% 26% 32% 5% 33% 44% 22% 0%
Third party food safety certification 9% 36% 50% 5% 11% 28% 56% 6% 0% 44% 56% 0%
Uniform product standards (e.g., size standards) 48% 30% 22% 0% 53% 26% 21% 0% 40% 40% 20% 0%
Minimum quality standards 17% 30% 43% 9% 21% 21% 47% 11% 0% 44% 56% 0%
Minimum quantity for shipments 17% 30% 48% 4% 21% 26% 47% 5% 10% 50% 40% 0%
Certifications for other attributes (e.g., kosher, fair trade) 23% 18% 50% 9% 28% 11% 50% 11% 11% 44% 44% 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) 16% 16% 36% 32% 19% 19% 29% 33% 10% 0% 40% 50%
Knowledge of organic products 67% 17% 0% 17% 70% 15% 0% 15% 60% 10% 0% 30%
Length of relationship with my facility 38% 29% 17% 17% 35% 25% 20% 20% 30% 20% 20% 30%
Length of time certified organic 13% 42% 21% 25% 15% 40% 20% 25% 10% 30% 30% 30%
Diversity of products available 17% 50% 4% 29% 20% 55% 0% 25% 0% 40% 10% 50%
Availability of year-round supply 67% 8% 17% 8% 65% 5% 20% 10% 50% 10% 20% 20%
Flexibility in meeting facility's needs 52% 35% 4% 9% 47% 37% 5% 11% 50% 30% 0% 20%
Reputation for quality 60% 28% 4% 8% 67% 24% 0% 10% 30% 40% 10% 20%
Price 29% 67% 0% 4% 30% 65% 0% 5% 20% 70% 0% 10%
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