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Abstract
The organic sector has expanded rapidly over the last decade, as retail sales of organic
food increased to $15.7 billion in 2006. As sales have grown, so have the number and
types of outlets selling organic products. USDA’s Economic Research Service surveyed
certified organic intermediaries in the United States to collect information on basic
characteristics of the sector in 2004, as well as its marketing and procurement practices. This report uses the survey findings to present a baseline view of the organic handling sector. A large share of organic handlers are mixed operations that handle both organic and conventional products, and most began as conventional firms that converted to handling organic products. Most organic products are sold domestically, with nearly three-quarters sold nationally or regionally. More than three-quarters of the firms are independent, and most are small. Handlers seek suppliers with a reputation for providing
high-quality products. Most transactions between handlers and suppliers occur under
contract, reportedly so that handlers can procure ingredients essential for their businesses.