CORALVILLE, Iowa — As America’s organic crop producers prepare for another growing season, they are reaping the benefits of strong and stable prices during a time of economic crisis.
Although organic grain producers have experienced only moderate price softening, compared to the negative price volatility of conventional crops.
Annual growth rate
The organic market has seen a 15 to 20 percent annual growth rate over the last decade, and NForganics, a marketing division of National Farmers, has seen its organic grain marketing volume increase by five-fold since 2004.
“I believe what we are doing in organics, which is a market not leveraged by paper trading, is we’re showing organized producers can have an influence,” Tim Ennis, head of NForganics.
In the view of NForganics and the Organic Farmers’ Agency for Relationship Marketing leaders, farmers need to approach the market with a price in mind.
“There is a great deal of value in planning marketing strategies as a group, to counteract the current negative factors in the market,” said Oren Holle, a Kansas diversified organic producer, and Organic Farmers’ Agency for Relationship Marketing president.
Three-step process
Holle reminded producers of a three-step process when marketing during negative economic conditions:
1. Don’t panic.
2. Don’t take the buyer’s first offer.
3. Develop your marketing plan with assistance from a group such as NForganics.
“Farmers can accomplish vastly more by working together than by standing alone in the marketing arena,” Holle added.
