Factors Affecting Market Outlet Use by U.S. Organic Handlers

Summary

The U.S. organic sector has expanded rapidly over the last decade, resulting in significant changes throughout the supply chain. Intermediaries need to move greater quantities of organic food to a growing numbers of retailers. As organic sales continue to increase, intermediaries marketing to several types of outlets may be better placed to adapt to changing market conditions. Data from a survey of U.S. organic handlers is used to identify which characteristics are associated with the number of marketing outlets handlers serve. The analysis finds that handlers with a greater share of organic sales and those certified organic longer are more likely to sell in more than one market outlet, while those selling products locally and regionally rely on fewer outlets.