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Oregon Releases Organic Industry Market Assessment
June 29, 2023
6 Min Read
This spring, Oregon released an economic assessment of the state’s organic sector, revealing the industry’s significant triple-bottom-line benefits.
“This new assessment presents a rich portrait of Oregon’s strength as a leader in organics,” said Amy Wong, board chair of the Oregon Organic Coalition (OOC), a nonprofit organization that supports Oregon’s organic industry and community. “From farms to food manufacturing, rural economic development to climate solutions, the organic economy is delivering for Oregonians.”
Amy Wong, Board Chair, Oregon Organic Coalition
The Organic Agriculture & Organic Product Market Analysis in the State of Oregon came about as a result of OOC’s lobbying efforts in 2021.
“From farms to food manufacturing, rural economic development to climate solutions, the organic economy is delivering for Oregonians.” - Amy Wong
“As part of our work in 2021, the OOC informed legislators about Oregon’s organic community and the various benefits (economic and otherwise) that increasing organic production could bring to the state,” said Wong. “These efforts laid the groundwork for the organic economic assessment to be included in an ‘emerging sectors’ end-of-session budget appropriation last year.”
Highland Economics, a Northwest-based environmental consultancy, conducted the market assessment for the state of Oregon, and the firm’s 67-page report was published earlier this year on the website of the state’s economic development agency, Business Oregon.
"Organic Agriculture & Organic Product Market Analysis in the State of Oregon" report cover
The assessment’s key findings include:
The number of certified organic acres in Oregon has more than doubled over the last 15 years (going from 105,600 in 2008 to over 228,000 in 2021).
For at least the last 15 years, Oregon has been in the top five states for total farmgate value of organic agricultural products. (In 2021, that value was $386 million).
Organic farms are economic super-drivers—more than 30 percent of certified organic farms in Oregon have over $250k in sales, and 21 percent have over $500k in sales. (In contrast, less than 10 percent of conventional farms generate this level of sales.)
Organic practices create farms and communities that are more resilient to increasingly volatile climate conditions such as drought and flooding.
Organic farming’s general avoidance of synthetic chemicals greatly reduces environmental and human health costs from agriculture.
OOC Board Chair Amy Wong testifying in front of the Senate Rules Committee in Salem. (Photo by Mike Dill)
“It is important to have independent data to support policy advocacy,” said Wong of the assessment. “The organic community intuitively knew that the triple-bottom-line benefits of organic are real, but we now have additional external validation and a great tool to use when crafting advocacy campaigns.”
Based on its analysis, Highland Economics recommended Oregon focus on several areas to grow its organic sector:
Data collection. Specifically Highland Economics suggested the state collect data on county-level organic production, distributor sales (by point of origin and point of sale), organic-related revenue and jobs at the distribution level, and revenue and jobs directly attributed to organic food product manufacturing. The firm noted that increased data collection would help inform future efforts to strengthen Oregon’s organic industry.
Consumer Education and Branding. Citing recommendations from the Organic Trade Association, Oregon State University, and Oregon Tilth, Highland Economics suggested that more consumer education and awareness surrounding organic regulations and the social and economic benefits of organic would promote the sector’s growth.
Incentivize Organic Practices for Climate Resilience. The assessment recommended organic agriculture be promoted as a way to adapt to climate challenges. It noted that the Oregon Agricultural Heritage Program (OAHP), a natural resources preservation initiative that’s already in effect in the state, could specifically promote organic ag practices. Highland Economics further suggested that the state invest in organic ag as a means to reduce greenhouse gas emissions (Oregon has a goal to be 80 percent below its 1990 greenhouse gas levels by 2050).
Protecting Brassica Seed Production in the Willamette Valley. The assessment noted the growth potential in organic brassica seed production and suggested the state take action to protect and grow this segment.
Promoting Organic as an Economic Development Strategy and Social Justice Initiative. The assessment recommended the state promote organic food access (particularly to organic fruits and vegetables) as a means of improving public health, especially for underserved demographics. It also suggested the state increase organic handling and manufacturing capacity for a stronger, more resilient local food system. In addition, Highland Economics noted a high potential for economic development among BIPOC communities and suggested that racial equity/social justice organizations be included in crafting policy efforts affecting Oregon’s organic industry.
OOC’s Wong said Oregon should use the findings and recommendations of the organic market assessment to make “targeted state investments. Other states have done this, juicing their organic sectors to deliver bigger, better returns for farmers and consumers,” she said. “Oregon can too.”
“It is important to have independent data to support policy advocacy. The organic community intuitively knew that the triple-bottom-line benefits of organic are real, but we now have additional external validation and a great tool to use when crafting advocacy campaigns.” - Amy Wong
Wong noted that both Pennsylvania and Washington have made substantial investments in growing their organic sectors. “Pennsylvania invested nearly $4 million specifically for organic programming. As a result, Pennsylvania’s organic growth from 2008 to 2021 went from $212 million to $1.1 billion in annual sales,” she said. “Likewise, Washington leveraged investments in organic to fuel annual organic sales from $282 million to $1.13 billion. In contrast, during this same period, Oregon’s organic annual sales only grew from $155 million to $386 million.”
OOC Lobbyist Jonathan Manton and OOC Board Member Mike Dill of Organically Grown Company, preparing to testify in Salem. (Photo by Amy Wong)
Wong also pointed to California and Arizona as great examples of states with strong university-level support of organics, citing Chico State University’s Center for Regenerative Agriculture and Resilient Systems, the University of California’s Organic Agriculture Institute, and Arizona State University’s Swette Center for Sustainable Food Systems.
OOC’s Wong said Oregon should use the findings and recommendations of the organic market assessment to make “targeted state investments. Other states have done this, juicing their organic sectors to deliver bigger, better returns for farmers and consumers,” she said. “Oregon can too.”
“While Oregon and the organic community have made significant investments in Oregon State University’s (OSU) Center for Small Farms and Community Food Systems, OSU hasn’t seen nearly the amount of capital directed to building organic and low-input food systems compared to the universities I mentioned in Arizona and California,” Wong said. “Oregon and OSU could lead these types of efforts in the Pacific Northwest and likely attract additional private investment.”
The Organic Agriculture & Organic Product Market Analysis, a synopsis, and afterword are available at this link.
For more background on the Oregon Organic Coalition, please see OPN’s 2022 Q&A with Board Chair Amy Wong.
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