ORGANIC FARMING MARKET ANALYSIS

Market Challenges And Opportunities

Driver:

Growth of organic agricultural practices:

Favorable growth of organic agricultural practices all over the world coupled with regional government initiatives to promote organic farming is boosting growth of the global organic farming market. For instance, in August 2022, Agriculture Secretary Tom Vilsack announced details of the U.S. Department of Agriculture’s (USDA) US$ 300 million investment, including the American Rescue Plan funds in a new Organic Transition Initiative that will help build new and better markets and streams of income for farmers and producers. Organic production allows producers to hold a unique position in the marketplace, and thus take home a greater share of the food dollar.

Restraint:

High cost of organic food:

Organic food is more expensive because farmers do not get as much out of their land as conventional farmers do. Production costs are higher because farmers need more workers. Marketing and distribution is not efficient because organic food is produced in smaller amounts. For instance, according to the Times of India article, in 2021, high cost of organic food products in India is the key reason behind its purchase being restricted to affluent class of consumers as the switch to organic food is likely to cost an additional 14.60-18.25 US $ per month for a family.