An Untapped Source for Organic Food Growth

Newswise — Organic foods have been popping up on stores shelves for years, more often now than in the past. But in food service locations there's plenty of room for growth, according to experts recently addressing the Institute of Food Technologists annual meeting.

"I think this business is a sleeping giant," said Thomas B. Harding, Jr., president of AgriSystems International, an organic consulting firm in Pennsylvania. And there are strong signs that the giant is awakening, he added.

Sales of all organic foods surpassed $10 billion dollars as recently as 2003. Universities, corporate campuses, local schools are the growing markets for organic products, as are hospitals and wellness programs, the experts said.

"Ikea is currently working on a plan to convert all of the food sold in their stores to organic products " that's a big commitment," said Harding, adding that many retailers and restaurants are receiving U.S. Department of Agriculture certification to handle and sell organic products.

While the typically higher price of organic is still seen as a primary hurdle for the foodservice industry to overcome, consumers helping to drive the demand for organic lean toward a higher income bracket, according to Ed O'Neill, of Food Processing Center.

"These are consumers who may be willing to pay more anyway, due to a higher disposable income," he said. And in a society where convenience is king, big opportunities are seen in bringing organic products into the mix.

"Organics must fill the same needs and niches that non-organic products currently dominate," O'Neill said. He noted that one in 10 meals is eaten on the run, with 25 percent of restaurant carryout meals eaten in the car and 22 percent of restaurant carryout meals eaten at work.

Big responsibilities come in hopping on board, however. Companies need to comply with a wide range of requirements in order to have products certified as being organic.

Harding advised foodservice businesses to understand federal requirements or hire professionals who do, rather than guess at whether the products they sell or plan to sell can be certified organic.

The IFT Annual Meeting + Food Expo®, to be held next year in Orlando, June 24-28, is the world's single largest annual scientific meeting and technical exposition of its kind. Rated among the largest shows in America*, the meeting delivers comprehensive, cutting-edge research and opinion from food science-, technology-, marketing- and business-leaders.

More information on the conference is available online at http://www.am-fe.ift.org.

* According to Tradeshow Week® 200 magazine.

Founded in 1939, and with world headquarters in Chicago, Illinois, USA, the Institute of Food Technologists is a not-for-profit international scientific society with 26,000 members working in food science, technology and related professions in industry, academia and government. As the society for food science and technology, IFT brings sound science to the public discussion of food issues. For more on IFT, see www.ift.org.