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Abstract
Organic producers in California were surveyed by the author and the Organic
Market News and Information Service (OMNIS) to determine: 1) the size of the
industry, 2) the commodities grown, 3) acreage under organic cultivation and,
4) growers' perceptions of the production and marketing obstacles limiting
expansion. The California organic industry has grown significantly in the
1980s and now is estimated to consist of approximately 900 growers with
wholesale sales of about $50 million dollars. Thirty six percent of the
respondents farmed on a mixed acreage basis, and the average respondent farmed
38 acres organically with an average farm size of 58 acres. Total California
organic area harvested is estimated to be 30,000 acres, with fruits
representing about 61 percent of this, and vegetables and nuts each about 13
percent of the total, respectively. Just as for conventional growers, the
most important marketing channel for organic producers is sales to
wholesalers. However, sales directly to consumers represent twenty one
percent of the total volume for organic producers relative to one percent for
conventional growers. Organic producers perceive that demand side factors,
such as lack of consumer awareness of the benefits of organic products, are
the principal constraints to market expansion. In contrast, handlers view
limited supply and lack of consistency in quality and pack as the key
obstacles impeding expansion.