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                                Sales                                         13      Certified operations             13
                        25      Share of all food sales            4%         12      Cropland                         12
                                                                                                                       11
                                                                              11
                      Sales (millions of dollars)  15              3%   Percent share of all food sales Land in organic production (thousands of km 2 )  9  9 Thousands of certified organic operations
                                                                                      Pasture/Rangeland
                                                                              10
                                                                                                                       10
                        20
                                                                                                                       8
                                                                               8
                                                                               7
                                                                                                                       7
                                                                   2%
                                                                               6
                                                                                                                       6
                                                                                                                       5
                                                                               5
                        10
                                                                                                                       3
                                                                               3
                         5                                         1%          4                                       4
                                                                                                                       2
                                                                               2
                         0                                         0%          1                                       1
                                                                                                                       0
                                                                               0
                          1997  1998  1999  2000  2001  2002  2003  2004  2005  2006  2007  2008  2009  2010  2011  1995  2000  2005
                                              Year                                                Year
                     (a) Sales of organic food                             (b) Extent of organic agriculture
                     Figure 10.22 Organic agriculture is growing. Sales of organic food in the United States (a) have increased
                     rapidly, both in total dollar amounts (bars) and as a percentage of the overall food market (line). Since the
                     1990s (b), U.S. acreage devoted to organic crops and livestock has quadrupled, and certified operations have
                     more than tripled. Sources: (a) Adapted by permission from Willer, Helga (2013) Organic agriculture worldwide: Current statistics.
                     FiBL-IFOAM Report. IFOAM, Bonn; FiBL, Frick; ITC, Geneva. Data used with permission from Organic Trade Association OTA:
                     Manufacturer Survey 2012–2013. (b) Data from USDA Economic Research Service.
                                                                             Government initiatives have assisted the growth of
                     Organic agriculture is booming                       organic farming. The European Union supports farmers finan-
                     Just a decade or two ago, few farmers grew organic food, few   cially during conversion.  This is an example of a subsidy
                     consumers wanted it, and the only place to buy it was in spe-  (p. 181) aimed at reducing the external costs (pp. 146, 165) to
                     cialty stores. Today that has changed; three of four Ameri-  society of industrial agriculture. The United States offers no
                     cans buy organic food at least occasionally, more than four   such subsidies, which may explain why U.S. organic produc-
                     of five retail groceries offer it, and Americans are the world’s   tion lags behind that of Europe. However, the 2008 Farm Bill
                     eighth-highest per-person consumers of organic food. In fact,   (p. 238) did set aside $112 million over 5 years for organic
                     consumer demand for organic food is sometimes so great that   agriculture, and the government helps to defray certification
                     farmers cannot keep up with demand, and shortages occur.   expenses. Government support is helpful, because conversion
                     U.S. consumers spent $29.2 billion on organic food in 2011,   often means a temporary loss in income for farmers. Once
                     amounting to 4.2% of all food sales (Figure 10.22a). World-  conversion is complete, though, studies suggest that reduced
                     wide, sales of organic food more than tripled between 2000   inputs and higher market prices can make organic farming at
                     and 2010, when sales neared $60 billion.             least as profitable for the farmer as conventional methods.
                        Production is increasing along with demand (Figure 10.22b).
                     Although organic agriculture takes up less than 1% of agricultural   Figure 10.23 Mexico is a world leader in the production of
                     land worldwide (37 million ha, or 91 million acres, in 2011), this   organic coffee. These farmers are harvesting coffee beans from
                     area is rapidly expanding. Two-thirds of this area is in developed   an organic plantation of shade-grown coffee in Chiapas, Mexico.
                     nations, and nearly two-thirds is grazing land. In the United
                     States, nearly 2 million ha (4.8 million acres) are under organic
                     management. Europe boasts still more: 10.6 million ha (26.2 mil-
                     lion acres) in 2011, most in nations of the European Union, where
                     5.4%  of  the  agricultural  area  is  in  organic  production. Today
                     about 2 million farmers and ranchers in more than 160 nations
                     practice organic agriculture commercially to some extent.
                        Mexico is a leader in organic agriculture among developing
                     nations. Overall, 1.5% of Mexico’s agricultural land is organic,
                     one of the highest percentages for developing nations, and
                     170,000 Mexican farmers farm organically, the third-highest
                     number in the world. Fully 30% of Mexico’s coffee crop is now
                     organic, and Mexico produces more organic coffee than any
                     other nation (Figure 10.23). Besides coffee, Mexico grows cocoa
                     and a variety of fruits and vegetables organically. Most of this
             278     produce is destined for export to the United States and Europe.







           M10_WITH7428_05_SE_C10.indd   278                                                                                    12/12/14   2:59 PM
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