State of Organic 2021

STATE of ORGANIC PRODUCE 2021

P R E S E N T E D B Y O R G A N I C P R O D U C E N E T W O R K

Northeast

Regional Organic Performance

Midwest 07 South

West

All four regions showed double-digit year-over-year gains in both sales and volume in 2020. The largest sales growth was seen in the West (16.8%), while the most significant volume gain was found in the South (17.8%).

Contents

Sales

$2,657,742,219 $383,144,224

$1,322,277,258 $127,999,295

$2,590,938,231 $331,631,458

$1,963,175,634 $221,439,725

Sales Change (YOY) Sales % Change (YOY)

Welcome 05 Sales and Performance Overview 07 Conventional vs. Organic Regional Organic Performance Top 10 Organic Categories Year-Over-Year Sales Change Leading Category Performers 13 Packaged Salads Grapes Berries Avocados Apples Mushrooms Herbs & Spices Onions Carrots Bell Peppers Lettuce Broccoli Bananas Celery Tomatoes Cucumbers Potatoes Squash Citrus Kale Retailer & Wholesaler Snapshots 49 2021 Events 53 Organic Produce Summit Organic Grower Summit Trade Organizations & Associations 59 Rodale Institute California Department of Food and Agriculture (CDFA)

16.8%

10.7%

14.6%

12.7%

Volume

921,733,503 137,106,272

474,698,772 50,760,477

943,439,311 142,561,028

620,059,457 77,844,975

Volume Change (YOY) Volume % Change (YOY)

17.4%

11.9%

17.8%

14.3%

Organic Farming Research Foundation (OFRF) California Certified Organic Farmers (CCOF)

OPN State of Organic Produce 2021

T hroughout 2021, the challenges of the global pandemic continued to be a part of our daily life. And while we hope the “new normal” is finally nearing its end, we never want to forget how our industry has been a guiding light for the country and the world during this difficult time. Day in and day out, the fresh produce industry has grown, harvested, and delivered some of the best bounty our planet has to offer—healthy, nutritious organic fruits and vegetables. If the past two years have taught us anything, it is the resiliency of the people who grow and pack organic produce and the care and courage of those on the frontlines of grocery store operations across the country. Without fail, and without hesitation, our industry has gone above and beyond to fulfill its important role of feeding our nation. As we look to the future, we would like to thank all those who have participated in making the Organic Produce Network a successful educational and marketing resource dedicated to uplifting and advancing the organic fresh produce industry.

To a bright and prosperous 2022, Tonya Antle & Matt Seeley

Sales and Performance Overview

Organic Produce Sales up 5.5 Percent in 2021, Top $9 Billion

Organic fresh produce sales grew by 5.5 percent in 2021, topping $9 billion for the first time, and outpaced conventionally grown produce in year-over-year gains in both sales and volume. Despite the return of foodservice, organic produce sales and volume at retail outlets still showed year- over-year growth in all four quarters of last year. Total organic fresh produce sales for 2021 were $9.2 billion, an increase of $477 million compared to 2020. Working again with Category Partners, the Organic Produce Network has created an annual report highlighting 20 of the leading category performers in organic produce, which will be described individually later on. This sales and performance overview section looks at organic produce’s share of the total fresh produce market, the top 10 organic produce items (by both sales and volume), overall organic produce performance by region, and the year-over-year percentage change in sales for both conventional and organic produce.

All data & information provided exclusively by Category Partners

OPN State of Organic Produce 2021

Top 10 Organic Categories

$1.5B

600M

Conventional vs. Organic Topping $9 billion in sales, organic produce outper- formed conventional in terms of both year-over-year sales and volume growth in 2021. While conventional produce posted a sales gain of 1.9% and a volume loss of -3.3%, organic produce saw a 5.5% increase in sales and a 2.1% increase in volume.

Total Produce Share $

550M

Sales

Volume

. . . .

88.0%

Year-Over-Year Percentage Change in Sales, Conventional vs. Organic Throughout 2021, organic produce surpassed conventional in terms of year-over-year sales growth, except during the end of the year. Organic produce’s strongest rate of sales growth compared to conventional occurred around April. Packaged salads remained the largest driver of organic fresh produce dollars in 2021 with sales topping $1.5 billion. Berries followed close behind with sales of $1.47 billion, and apples took third place with sales of over $660 million. The banana category was the top-volume mover of the organic fresh produce sector, and it posted a year-over-year volume increase of 3.4%. *Dollar and volume values have been rounded to the nearest million. Volume is measured in pounds.

Total Organic Sales

$9,222,021,505

12.0%

Organic Sales Change (YOY)

5.5%

500M

250M

Organic Sales Share

12.0%

400M

200M

Conventional

Organic

300M

150M

200M

100M

Total Organic Volume Total Produce Share Volume

100M

50M

93.0%

3,094,697,666

Organic Volume Change (YOY) 2.1% Organic Volume Share 7.0%

7.0%

Northeast

Regional Organic Performance

% CHANGE 20

YOY Sales Change

West

Midwest

Organic Conventional

All four regions showed year-over- year sales gains in 2021. The South was the top performer in both sales and volume growth, with increases of 7.6% and 4.3%, respectively.

South

–5

$2,127,884,248 $118,895,620 5.9%

$2,857,617,693 $201,819,659 7.6% 1,005,934,347 41,271,846 4.3%

$1,415,161,940 $60,191,255 4.4% 492,146,931 4,848,234 1.0%

$2,808,316,150 $97,432,039 3.6% 944,748,377 350,323 0.0%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

-10

649,311,276 10,620,911 1.7%

OPN State of Organic Produce 2021

Leading Category Performers

100% REDUCTION OF PLASTIC

EASY TO BREAK DOWN AND RECYCLE

AVAILABLE IN ALL ORGANIC VARIETIES

“ Currently, Organic Salads, the largest portion of the Organic Produce category, is growing at +3% in the L52W. We have seen some surprises in growth, like organic coleslaw, which is growing at +35% in sales $ in the L52W. With trends like these, we can see that consumers are still preparing meals in their home, but have also added eating out back into their routines.

Packaged Salads | #1 in Sales

The South was the top-performing region for organic packaged salads with total sales of more than $506 million, while the Midwest saw the greatest year-over-year sales increase (4.5%). Regional Performance

W MW

$423,708,226 $3,771,242 0.9% 58,873,426 -760,339 -1.3%

$278,758,615 $11,906,920 4.5% 38,273,304 1,065,569 2.9%

$506,584,045 $20,425,063 4.2% 71,082,827 993,387 1.4%

$335,316,593 $12,251,550 3.8% 45,428,030 607,582 1.4%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

Jessica Harris Product Manager, Organics, Taylor Farms

Packaged Salads

– – – – – – – – – – – – – – – – – – –

Organic sales continue to outpace conventional [in terms of ] overall sales growth. I think consumers are paying more attention to what they are putting in their bodies— not to say conventionally grown produce is bad as more consumption of fruits and vegetables is a good thing! The convenience of the salad category as well as more availability on a consistent basis on organically grown produce has certainly helped with the consistent growth.

Sales 2021 vs. 2020

$ MILLIONS

The organic packaged salad category had its most significant year- over-year sales gains during the first two months of 2021.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

155 150 125 100 75

T he largest driver of organic fresh produce dollars in 2021, organic packaged salads topped $1.5 billion in sales and commanded a sizable 73% price premium over their conventional counterparts. Compared to the double-digit year-over-year gains enjoyed by the category in 2020, organic packaged salads slowed considerably in both sales (3.2%) and volume (0.9%) in 2021, likely due to foodservice coming back online as COVID restrictions eased and lockdowns ended.

50 25 0

2021 2020

Dan Canales SVP of Sales, Marketing and Processing, Ippolito International

OPN State of Organic Produce 2021

“ You don’t need a crystal ball to predict continued growth for organic produce items. Organic strawberries and raspberries are getting stronger demand for organic options, and it’s going to be challenging to find that right mix of organic versus conventionally grown produce that is going to be the correct combination for growers to meet the demand of their customers.

Berries | #2 in Sales

With more than $435 million in sales, the West was the top-performing region for organic berries , and it also showed the greatest year-over-year increases in both sales (15.6%) and volume (12.2%). Regional Performance

W MW

$435,614,552 $58,811,783 15.6%

$219,375,123 $25,607,066 13.2% 37,596,648 3,914,982 11.6%

$428,720,864 $55,548,438 14.9% 71,477,851 7,017,798 10.9%

$388,889,775 $40,146,898 11.5% 61,730,866 3,866,715 6.7%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

Jim Grabowski Director of Marketing, Well•Pict Berries

68,137,317 7,391,746 12.2%

– – – – – – – – – – – – – – – – – – –

Berries

Honestly, all of the organic berries complement each other and work together to drive sales at retail. That said, organic blueberries and organic strawberries combined make up the biggest percentage of the organic berry category. Organic raspberries and organic blackberries continue to make great gains, though. Brian Vertrees Director of Business Development, Naturipe Farms

Sales 2021 vs. 2020

$ MILLIONS

Organic berries showed year-over-year sales growth throughout 2021.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

175 150 125 100 75

T he #2 organic fresh produce category by annual sales dollars, organic berries raked in close to $1.5 billion in 2021, increasing by an impressive 13.9% from 2020. With a year-over-year volume gain of 10.2%, organic berries (which include strawberries, blueberries, raspberries, and blackberries) continued to surge in popularity in 2021, and they also commanded a significant price premium of 60% over their conventional counterparts.

50 25 0

2021 2020

OPN State of Organic Produce 2021

“ The organic category has grown immensely in the past 10 years. While many commodities are catching up to the demand, and the year-over-year increase in demand has slowed a bit, it by no means has plateaued. Storage of organic apples has always been the biggest challenge. As techniques have improved, we have been able to make the crop last later in the season and expect the same in this upcoming year. Chuck Sinks President of Sales and Marketing, Sage Fruit Company

Apples | #3 in Sales

The South was the only region that saw a year- over-year increase in organic apple volume (0.4%), and it also showed the best year-over-year sales performance (12.4%). Regional Performance

W MW

$179,839,771 $6,635,730 3.8% 70,632,336 -2,492,114 -3.4%

$100,067,785 $5,013,869 5.3% 41,559,536 -744,990 -1.8%

$235,065,376 $25,962,462 12.4% 98,367,973 392,430 0.4%

$147,992,137 $1,728,783 1.2% 58,903,936 -4,573,069 -7.2%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

Apples

– – – – – – – – – – – – – – – – – – –

We want to make organics our number one offering every day. We are here for one’s organic needs every day of the year. There’s not a day that we can’t help you fill your shelves with whatever organic product [consumers] are looking for within our core makeup. Dan Davis Organic Category Manager, Starr Ranch Growers

Sales 2021 vs. 2020

$ MILLIONS

Except for March, organic apples showed year-over-year sales gains throughout 2021.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

70 60 50 40 30 20 10 0

W hile organic apples didn’t have the double- digit year-over-year gains they logged in 2020, the category still managed to post a 6.3% increase in sales in 2021, which was especially impressive given that volume actually decreased year over year (–2.7%). As the third-largest driver of 2021 organic fresh produce dollars, organic apples boasted retail sales of more than $663 million and a solid price premium of 41% over their conventional counterparts.

2021 2020

OPN State of Organic Produce 2021

“ The packaged herb category is roughly 70% organic, which is rather unheard [of ] in our industry, and we continue to see that shift up each year. Herbs followed up a record 2020 year with another strong showing in 2021. Driven by the marked shift towards more in-home dining, the category is up over 24% vs. 2019. From an operational

Herbs & Spices | #4 in Sales

The Northeast had the most significant year-over-year sales increase (10.1%) of organic fresh herbs and spices in 2021, while the South had the highest total sales ($159 million). Regional Performance

W MW

standpoint, the year was extremely challenging. Steve Wright Chief Customer Officer, Soli Organic

$138,169,401 $7,030,225 5.4% 29,522,521 -383,326 -1.3%

$71,938,436 $413,536 0.6% 11,080,215 -747,129 -6.3%

$158,563,135 $7,271,821 4.8%

$104,010,599 $9,551,173 10.1% 17,761,721 713,317 4.2%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

Herbs & Spices

21,125,819 -1,747,768 -7.6%

– – – – – – – – – – – – – – – – – – –

Organic culinary herbs had another great year as consumers continued to drive demand for fresh, quality herbs year-long and during the holidays. We’ve witnessed impressive growth in the herb category during the past couple years for both retail and home-delivery channels, and we hope 2022 will be no exception.

Sales 2021 vs. 2020

$ MILLIONS

The organic fresh herbs and spices category posted its largest year-over-year sales increases in the first two months of 2021.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

70 60 50 40 30 20 10 0

I n 2021, organic fresh herbs and spices took a breather from the breakneck double-digit growth spurt they exhibited in 2020. The category’s year- over-year sales increased by a moderate 5.4% in 2021, while volume showed a small decline of –2.7%, suggesting that the surge in home cooking seen during the first year of COVID may have waned slightly as restaurants started reopening in 2021.

Dani Loustalot Marketing Manager, Jacobs Farm Del Cabo

2021 2020

OPN State of Organic Produce 2021

“ [During 2020], demand for organic carrots, as well as many other organic products, skyrocketed as retailers purchased all products available to satisfy homebound consumers. Therefore, it was not unexpected that organic carrot sales in 2021 were lower than in 2020 as vaccines returned some normalcy to life. This enabled consumers to dine outside the home where organic produce lacks the presence found in retail stores. ... While there is some concern about how shoppers will adjust their purchase behavior in this high-inflation environment, we remain hopeful that the value organic carrots offer for their contribution to a healthy lifestyle and a sustainable future will continue to generate sales growth in 2022.

Carrots | #5 in Sales

All four regions saw year-over-year declines in organic carrot volume in 2021, and the Midwest was the only region that managed to eke out a year-over-year sales gain (0.3%). Regional Performance

W MW

$121,837,270 $(2,312,501) -1.9%

$75,741,144 $204,315 0.3% 49,885,629 -1,273,350 -2.5%

$135,353,412 $(1,378,382) -1.0% 88,884,871 -3,807,083 -4.1%

$95,915,181 $(2,175,030) -2.2% 60,178,714 -3,555,513 -5.6%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

71,532,847 -3,749,255 -5.0%

Carrots

Sales 2021 vs. 2020

$ MILLIONS

Retail sales of organic carrots throughout 2021 remained pretty close to those of the prior year, except in March when they fell far short of the panic-buying sales surge that occurred in 2020.

David Bright VP of Marketing, Grimmway Farms

. . . . . . . . . . . . . . . . . . . . . . . . . .

A top contributor to organic fresh produce dollars, organic carrots had retail sales of nearly $430 million in 2021. However, compared to 2020, the root vegetable showed decreases in both sales (–1.3%) and volume (–4.4%), likely due to a decline in consumer stockpiling behavior as well as the return of foodservice. With a modest price premium of 31% over conventional, organic carrots are one of the more affordable organic options in the produce department.

2021 2020

OPN State of Organic Produce 2021

“ Consumers today value organic produce not only for the health of themselves and their family but also that of the environment. The quality and freshness of our produce is paramount, but consumers also want to know that their greens and veggies are grown, processed, and packaged responsibly. Organic farming sequesters carbon, restores soil health, and promotes biodiversity, and these beneficial environmental factors are becoming increasingly important in the purchasing decisions of our consumers.

Lettuce | #6 in Sales

The South saw the largest year-over-year increases in both sales (15.5%) and volume (15.4%) of organic lettuce in 2021. Regional Performance

W MW

$130,961,015 $8,538,062 7.0% 36,450,398 1,576,213 4.5%

$56,047,447 $4,722,732 9.2% 19,138,727 697,070 3.8%

$131,061,563 $17,617,226 15.5% 47,041,693 6,282,211 15.4%

$101,822,550 $7,945,416 8.5% 21,121,347 593,515 2.9%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

Lettuce

T. Bruce Taylor VP of Organics & Earthbound Farm Brand, Taylor Farms

Sales 2021 vs. 2020

$ MILLIONS

– – – – – – – – – – – – – – – – – – –

I think moving forward, we learned we really need to stay connected with our trading partners so that we understand what their goals are … so that we can be nimble and flexible and agile and deal with overproduction situations and … communicate our cost pressures and stable pricing together.

Organic lettuce had its greatest year-over-year sales gains during the first quarter of 2021.

. . . . . . . . . . . . . . . . . . . . . . . . . .

I n contrast to organic packaged salads, organic lettuce showed very strong year-over-year growth in both sales (10.2%) and volume (8%) in 2021, which could be the result of a consumer shift back to purchasing unpackaged items following the first year of COVID. A top contributor to 2021 organic fresh produce dollars, organic lettuce logged nearly $421 million in retail sales, and with a price premium of 87%, this salad staple sold at a cost nearly double its conventional counterpart.

2021 2020

Heather Fuller VP of Sales, Braga Fresh

OPN State of Organic Produce 2021

“ We believe that by sharing the ‘true cost’ of food and educating consumers about what takes place prior to eating a banana, we feel energized about opportunities that exist moving forward. Mayra Velazquez de Leon President and CEO, Organics Unlimited

Bananas | #7 in Sales

The Northeast saw the largest year-over-year increases in organic banana sales (7.7%) and volume (5.2%), while the South had the most sales overall ($130 million). Regional Performance

W MW

$121,177,715 $3,448,989 2.9% 149,300,540 739,566 0.5%

$65,967,965 $3,214,778 5.1% 96,509,744 4,024,398 4.4%

$130,224,621 $3,076,922 2.4% 199,538,557 8,503,390 4.5%

$72,936,127 $5,195,752 7.7% 101,847,589 5,002,661 5.2%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

– – – – – – – – – – – – – – – – – – –

Our industry has undergone intense cost pressure and has absorbed it to ensure that consumers can continue buying affordable organic bananas. However, the current commodity pricing surge has made this effort unbearable any longer. Packing material prices have risen nearly 20 percent, and plastic bags have gone up 15 percent. Labor costs have also increased nearly double-digit as we have supported our workforce

Bananas

Sales 2021 vs. 2020

$ MILLIONS

Organic bananas exhibited their strongest year-over-year sales growth during the second half of 2021.

. . . . . . . . . . . . . . . . . . . . . . . . . .

throughout the pandemic. As most experts indicate, there is no end in sight to these cost pressures.

W ith close to 550 million pounds sold in 2021, organic bananas remained the top-volume mover of the organic fresh produce category by a longshot. The consumer favorite posted a 4% year- over-year increase in sales and a 3.4% increase in volume. And despite its frequent loss-leader status, the category still managed to squeeze out a 25% price premium over its conventional counterpart.

Joint Statement of Coliman Bananas,

2021 2020

Organics Unlimited, and Tropical Organic Growers

OPN State of Organic Produce 2021

“ 33% of Gen Z shoppers want their produce department to carry more organic and greenhouse-grown produce according to FMI. As more consumers become educated on the environmental benefits of sustainable greenhouse growing, we expect more demand for organic greenhouse-grown produce specifically.

Tomatoes | #8 in Sales

The Northeast had the largest year-over-year increases in organic tomato sales (6%) and volume (4.1%), while the West had the most sales overall ($112 million). Regional Performance

W MW

$111,991,816 $541,015 0.5% 27,560,779 802,702 3.0%

$45,984,252 $1,432,326 3.2% 11,420,702 210,063 1.9%

$92,096,021 $1,102,283 1.2% 23,251,420 329,495 1.4%

$75,614,270 $4,260,290 6.0% 17,820,324 702,272 4.1%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

Tiffany Sabelli Director of Sales, Pure Flavor

– – – – – – – – – – – – – – – – – – –

Tomatoes

Even as technology improves in greenhouse growing and production, more and more consumers are looking for healthier, environmentally sustainable alternatives. While this is a massive opportunity, it can also become a challenge. The demand for organic produce is becoming greater, and with quality and flavor at the forefront, we must ensure that our focus on delivering the best remains strong, even as demand increases. Jaclyn Ducharme Communications Specialist, Mastronardi Produce

Sales 2021 vs. 2020

$ MILLIONS

The organic tomato category had its strongest year-over- year sales performance during the first two months of 2021.

. . . . . . . . . . . . . . . . . . . . . . . . . .

O rganic tomatoes topped $326 million in total retail dollars in 2021 and saw year-over-year increases in both sales (2.3%) and volume (2.6%). These gains were very modest compared to the double-digit increases the category enjoyed in 2020, perhaps suggesting that fewer people were making salads and sandwiches at home in 2021 as restaurants came back online. With a hefty price premium of 85% over conventional, organic tomatoes proved themselves to be an item that consumers were willing to pay up for last year.

2021 2020

OPN State of Organic Produce 2021

“ As organic potatoes become more popular with consumers, and as more families begin to favor organic produce, we will see the demand for larger pack sizes escalate. [Also], offering this organic product in a compostable bag attracts buyers who value sustainability. It is everyone’s responsibility to take care of the earth where our potatoes grow.

Potatoes | #9 in Sales

All four regions saw year-over-year declines in organic potato volume, but the West was the only one that also posted a year-over-year sales loss (–2.3%). Regional Performance

W MW

$87,946,087 $(2,034,666) -2.3% 51,040,304 -3,721,150 -6.8%

$39,070,125 $443,243 1.1% 24,857,042 -1,531,607 -5.8%

$98,266,234 $4,479,517 4.8% 58,617,136 -119,377 -0.2%

$66,654,159 $310,278 0.5% 35,983,682 -406,945 -1.1%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

Jessica Hughes Director of Innovation, EarthFresh Farms

– – – – – – – – – – – – – – – – – – –

Potatoes

The Klamath basin has seen normal yields in regard to Yellow and Russet potatoes with Russet sizing skewing quite large. The red crop was significantly down with smaller potatoes and about a 30% decrease in yield. Washington State also experienced lower yield overall but especially in regard to red potatoes, and contrary to the Klamath basin crop, they saw smaller-sized russets.

Sales 2021 vs. 2020

$ MILLIONS

The organic potato category had its best year-over-year sales performance during the first two months of 2021.

. . . . . . . . . . . . . . . . . . . . . . . . . .

I n 2021, organic potatoes lost nearly all of the year- over-year momentum they exhibited in 2020, eking out a 1.1% increase in sales and posting a loss of –3.3% in volume. As the world opened back up last year, COVID-related consumer stockpiling of long- lasting staples like potatoes, carrots, and hard squash significantly declined. On a positive note, organic potatoes commanded a substantial 114% price premium over their conventional counterparts in 2021 and achieved retail sales of more than $292 million.

Sydney Fairchild Marketing and Compliance, Bridges Produce

2021 2020

OPN State of Organic Produce 2021

“ Our main crop is organic citrus, and we see continued growth in the organic market, especially for mandarins and specialty citrus items. Organic customers and consumers in particular are asking for mandarins by variety rather than as a generic mandarin. They seem to have a deeper curiosity about where their food comes from and the varietal details and characteristics. We love curious customers and consumers because we love to nerd out on fruit!

Citrus | #10 in Sales

At $85 million, the South had the highest organic citrus sales in 2021, and it also had the greatest year-over-year gains in both sales (19.9%) and volume (22%). Regional Performance

W MW

$76,087,411 $2,043,108 2.8% 34,008,032 1,648,651 5.1%

$36,847,309 $4,631,200 14.4% 17,248,261 2,071,701 13.7%

$84,776,054 $14,098,055 19.9% 36,470,419 6,579,898 22.0%

$59,599,700 $3,941,406 7.1% 22,663,728 2,779,754 14.0%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

Bianca Kaprielian CEO and Co-owner, Fruit World Co.

Citrus

– – – – – – – – – – – – – – – – – – –

Sales 2021 vs. 2020

$ MILLIONS

According to IRI data, total US Organic Citrus dollar sales are up by double digits: + 13% in the last 52 weeks versus one year ago and + 33% versus two years ago (through week ending 12/19/21). This category continues to be a fast-growing segment in agriculture with no signs of slowing down. Christina Ward Senior Director, Global Marketing, Sunkist Growers

Organic citrus logged its best year-over-year sales gains during the first half of 2021.

. . . . . . . . . . . . . . . . . . . . . . . . . .

O rganic citrus continued to perform strongly in 2021, with double-digit year-over-year increases in both sales (10.6%) and volume (13.4%). Well-known for their immune-boosting properties, these vitamin C-rich fruits commanded an average price premium of 49% over their conventional counterparts and brought in a total of $258 million in 2021 retail sales dollars.

2021 2020

OPN State of Organic Produce 2021

Grapes #11 in Sales

O rganic grapes roared back in 2021 in terms of year-over-year sales performance, posting a double-digit gain of 13.9% and total sales of more than $248 million. (In 2020, organic grapes had suffered year-over-year decreases in both sales and volume.) This popular organic snacking fruit also showed a moderate year-over-year volume gain of 3.5% in 2021 and maintained a healthy price premium of 52% over conventional.

“Our goal is to complement the supply of organic grapes from California by bringing our [imported] organic grapes in just as California organic grapes are finishing in the market … allowing our customers to continue to have grapes available for many months after California grapes have finished in the market.”

David Posner Founder, President, and CEO, Awe Sum Organics

The South had the strongest year-over-year performance in organic grape sales (20.5%) and volume (14.1%), while the Northeast had the weakest (7.8% and –2.9%, respectively). Regional Performance

Post-harvest biosolution

W MW

The organic solution to extending storage and increasing packout.

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$71,373,786 $7,342,311 11.5% 22,810,232 -538,242 -2.3%

$35,627,475 $4,309,722 13.8% 11,347,417 225,929 2.0%

$85,964,650 $14,635,823 20.5%

$55,147,632 $3,994,421 7.8% 15,817,274 -465,520 -2.9%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

27,188,175 3,358,587 14.1%

www.deccous.com/nexy

Nexy is a registered trademark of Agrauxine S.A. All other products are trademarks of Decco, a UPL Group Company.

OPN State of Organic Produce 2021

Avocados #12 in Sales

Mushrooms #13 in Sales

O rganic avocados saw much more modest year- over year gains in both sales (2.4%) and volume (1%) in 2021 compared to the double-digit increases the category enjoyed in 2020. Still, with over $232 million in sales, this popular organic fruit remained a powerhouse item in 2021, averaging a respectable price premium of 40% over conventional.

O rganic mushrooms suffered year-over-year decreases in both sales and volume in 2021, though the sales decline (–1.5%) was much narrower than the volume loss (–8%). Despite its negative year-over-year performance, the organic mushroom category was still a significant driver of organic produce dollars, with total sales topping $229 million and a substantial price premium of 60% (compared to conventional).

“Even though organic avocados sometimes have a higher FOB cost, they continue to be incredibly promotable. Retailers are not shying away because of prices. Consumers see value in organic avocados. So we see great success on the retail level promoting them.”

“Over the past two years, we have seen exponential growth in organic mushroom sales. I do not think it was because of the pandemic. We saw sales trending up before the pandemic. The trend started the year before. “

Kevin Donovan National Sales Manager, Phillips Mushroom Farms

Gahl Crane Sales Director, Eco Farms

The Northeast had the best year-over-year organic avocado performance with a sales increase of 6.7% and a volume gain of 8.9%, while the Midwest had the worst with a sales loss of –1.7% and a volume decline of –7.6%. Regional Performance

Organic mushrooms showed year-over-year declines in both sales and volume in all regions, except the Northeast where it enjoyed a 7.7% increase in sales. Regional Performance

W MW

$88,009,857 $816,112 0.9% 25,331,361 232,349 0.9%

$76,553,443 $(1,215,950) -1.6% 10,855,904 -697,783 -6.0%

$29,572,761 $(511,589) -1.7%

$62,618,496 $(4,386,767) -6.5% 10,987,482 -1,305,148 -10.6%

$64,780,708 $2,180,811 3.5% 18,064,133 -205,204 -1.1%

$52,297,404 $(511,165) -1.0%

$49,512,450 $3,123,419 6.7% 16,529,867 1,357,038 8.9%

$37,798,911 $2,695,934 7.7%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

8,591,214 -704,001 -7.6%

7,157,040 -773,399 -9.8%

4,280,135 -125,888 -2.9%

OPN State of Organic Produce 2021

Onions #14 in Sales

W ith over $214 million in retail sales in 2021, organic onions achieved year-over-year increases in both sales (4.5%) and volume (0.9%), an impressive feat considering the massive stockpiling of pantry items that occurred in 2020. The category also showed a very strong price premium of 78% over conventional, suggesting that consumers saw significant value in the organic version of this produce staple last year.

“The recalls seen in 2021 put a spotlight on the onion market and the importance of food safety in this category. The challenging weather caused shortages in the domestic market; therefore storage quantities are way down and will create very high demand in the Spring for Mexican onions.“

Maria Reyes • Narci Organic Farms

Sydney Fairchild Marketing and Compliance, Bridges Produce

recyclable • home compostable • sustainable • readycyclepackaging.com

Organic onions had the highest sales in the South ($69 million), and that same region also showed the best year-over-year increases in both sales (8.2%) and volume (6.7%). Regional Performance

W MW

Year-Round Programs Diverse Product Lines

$63,791,149 $(120,318) -0.2% 33,574,297 -905,298 -2.6%

$30,527,436 $1,875,960 6.5% 16,696,155 376,432 2.3%

$68,687,381 $5,189,584 8.2% 39,956,371 2,514,741 6.7%

$51,003,061 $2,291,860 4.7% 20,852,183 -953,628 -4.4%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

OPN State of Organic Produce 2021

Bell Peppers #15 in Sales A popular choice for cooking, snacking, and salads, organic bell peppers posted small year-over- year gains in both sales (2.3%) and volume (3.1%) in 2021. The category totaled $186 million in retail sales and commanded a price premium of 87% over conventional, showing that consumers were willing to pay top dollar for this versatile and nutrient-rich organic vegetable.

Broccoli #16 in Sales

A star year-over-year performer in 2021, organic broccoli posted gains of 10.9% in sales and 8.8% in volume, suggesting this highly nutritious organic vegetable was top of mind for consumers. With over $185 million in sales and a price premium of 53% compared to conventional, organic broccoli was a solid driver of 2021 organic fresh produce dollars.

“Production costs are rising every year, and sometimes it’s not easy to pass those costs on to your customers, but we’ve been able to put together some very fair and equitable contracts with many of our customers, which really helps us keep our dedicated organic farmers in business.”

“We value the Broccoli category for the rotational value it has for both our farming schedule and soil health. While yield pack and pro- cessing had steady volume for us in 2021, we saw strong YOY growth in 2021 with Josie’s Organics bunched Sweet Baby Broccoli.”

Kori Tuggle VP Marketing, Braga Fresh

Rob Gurney Sales Manager, Veg-Land

Organic bell peppers had their best year- over-year performance in the Northeast where they posted a 7% increase in sales and a 15.5% gain in volume. Regional Performance

Organic broccoli enjoyed double-digit year-over-year sales increases in both the Northeast (14.2%) and the South (16.7%). Regional Performance

W MW

$59,288,510 $164,529 0.3% 12,904,729 -44,565 -0.3%

$68,632,705 $4,599,788 7.2% 21,847,883 942,495 4.5%

$26,107,869 $787,151 3.1% 6,693,426 365,106 5.8%

$22,454,283 $972,325 4.5% 6,864,910 103,814 1.5%

$60,410,131 $584,918 1.0% 12,827,040 -507,924 -3.8%

$51,465,551 $7,374,271 16.7% 15,821,847 2,826,394 21.7%

$40,489,510 $2,642,535 7.0% 10,976,010 1,469,519 15.5%

$42,257,407 $5,249,596 14.2% 11,280,835 677,066 6.4%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

OPN State of Organic Produce 2021

Celery #17 in Sales

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W ith a tiny sales increase of 0.5% and a –1.8% drop in volume, organic celery had a lackluster 2021 in terms of year-over-year performance. The popular organic juicing vegetable brought in $177 million in 2021 retail sales and had a 32% price premium, making it one of the more reasonably priced organic produce commodities compared to conventional.

We added Fair Trade Certified to your premium organic banana label lineup.

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With a 6% increase in sales and a 4% increase in volume, the South was a bright spot for year-over-year performance of organic celery . Regional Performance

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W MW

Making good growing better

Produced in Turlock, CA

$48,408,123 $(3,273,091) -6.3% 21,092,455 -1,541,041.55 -6.8%

$27,759,789 $(557,795) -2.0% 12,300,798 -209,823 -1.7%

$54,665,953 $3,109,408 6.0% 24,121,495 934,614 4.0%

$45,581,135 $1,624,611 3.7% 14,886,351 -536,976 -3.5%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

Contact: P: 800-743-7413 orders@naturesafe.com naturesafe.com

OPN State of Organic Produce 2021

Cucumbers #18 in Sales

Squash #19 in Sales

W ith double-digit year-over-year increases in both sales (10.5%) and volume (14.1%), organic cucumbers were a top performer in 2021. The refreshing organic vegetable also commanded an extremely impressive price premium of 126% over conventional, showing that consumers were willing to shell out more than double the cash for the organic version of this commodity.

I n 2021, organic squash showed significant year- over-year losses in both sales (–7.5%) and volume (–8.7%), likely due to a shift away from the consumer stockpiling of hard squash that occurred during the height of COVID in 2020. Despite its year-over-year declines, the category topped $128 million in retail sales and showed a strong price premium over conventional of 69%.

“We are seeing very strong demand for euro cucumbers and have extended our Mexican season and increased production to meet that demand. We now have very steady production so can offer year-round contract pricing.”

“Organics and sustainability have always been important components of our success. To produce the best results, you have to grow the plants the way nature intended them to be. We want to be able to produce the same food that we would feed our own families.”

Sydney Fairchild Marketing and Compliance, Bridges Produce

Michael DuPuis Quality Assurance and Public Relations Coordinator, Divine Flavor

Organic cucumber volume increased year over year by double digits in all four regions, and the Northeast had the strongest year-over-year sales performance (13.7%). Regional Performance

Organic squash saw its worst year-over-year performance in the Midwest, where it posted a sales loss of –13.4% and a volume decline of –13.7%. Regional Performance

W MW

$48,283,210 $3,113,041 6.9% 16,097,451 1,503,849 10.3%

$43,057,190 $(4,957,400) -10.3% 19,566,288 -2,724,134 -12.2%

$23,480,955 $1,794,092 8.3% 7,006,903 695,805 11.0%

$14,797,727 $(2,289,079) -13.4%

$46,845,896 $5,308,877 12.8% 14,237,693 2,178,384 18.1%

$38,464,950 $(2,321,738) -5.7% 13,237,089 -579,177 -4.2%

$40,310,880 $4,871,217 13.7% 12,270,468 1,773,024 16.9%

$32,030,296 $(880,802) -2.7% 10,503,920 -392,765 -3.6%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

6,621,232 -1,050,783 -13.7%

OPN State of Organic Produce 2021

Kale #20 in Sales

As the #1 supplier of fresh Brussels sprouts in North America, we also grow, pack and ship organic Brussels sprouts — and many other organic category superstars!

W ith just over $115 million in retail sales, organic kale posted a tepid year-over-year dollar increase of 0.9% and a similarly small volume gain of 1.4% in 2021. The organic version of this leafy green, which began exploding in popularity in the late 2000s, commanded a significant price premium of 63% over conventional, suggesting consumers saw it as a valuable organic commodity last year.

“Organic produce continued to trend upwards in 2021. Organic Kale, Brussels Sprouts, and Spinach are top items in consumers’ shopping carts. 2021 was a year of working from home and meal prepping.”

Hana Mohsin Marketing Specialist, Misionero

Organic kale had its biggest year-over-year volume gain in the Northeast (7.3%) and its strongest year-over-year sales performance in the South (3.2%). Regional Performance

AWholesum favorite in earth-friendly packaging!

W MW

$40,709,626 $167,167 0.4% 16,291,368 9,307 0.1%

$12,748,701 $(530,748) -4.0% 4,635,288 141,855 3.2%

$35,930,622 $1,104,135 3.2% 8,854,921 -81,737 -0.9%

$25,606,717 $365,232 1.4% 6,714,036 459,461 7.3%

Sales Sales Change (YOY) Sales % Change (YOY) Volume Volume Change (YOY) Volume % Change (YOY)

wh.farm

OPN State of Organic Produce 2021

Retailer and Wholesaler Snapshots

– – – – – – – – – – – – – – – – –

I think COVID is creating a situation where

Without our farmer rela-

We are look- ing forward to the continued success of PCC’s organic produce

As we move forward, the

I love the role of the buyer … It starts with a handshake with a farmer. Michael Schutt Director of Produce & Floral, Raley’s

tionships, we’re nothing! We have such an amazing

everybody is going to be a little bit more innovative. Archie Williams Senior Buyer, Associated Wholesale Grocers

food industry will be a place where survival of the fittest—the most innovative, relevant, resonant, and customer-centric retailers—will be the law of the land.

lineup of wonderful farmers that we work with throughout the year. Keith Bidwell Supply Chain Manager, MilkRun

sales and the new challenges of high demand spurred by the restored freedom of post-pan- demic shopping. Joe Hardiman Senior Produce Merchandiser, PCC Community Markets

– – – – – – – – – – – – – – – – –

As the country moved into the second year of the pandemic, sales of organic fresh produce at retail continued to climb, increasing by 5.5% percent from the previous year.

Clean, healthy, and environ-

– – – – – – – – – – – – – – – – –

Over four years ago, I observed and stated that the custom- er/consumer

mentally friendly products are very important to us,

Organic produce sales are a big part of Stew Leonard’s. I’m still seeing 10-15

We believe in going forward in areas that we’re strong in. We know we’re good

so it’s essential that we provide our customers with the choice of organic produce when avail- able. We have also seen a rise in demand for organic produce throughout the years as people learn more about its benefits (less chemical exposure, higher nutrient density, and positive environmental impact).

wanted it all—a great in-store shopping experience, the ability to order online and pick up, and the ability to order online and have the goods delivered, all depending on their desire at the time. Not all retailers can do this, but the ones who do win! The pandemic leapfrogged this demand by half a decade, and now we must capture that demand, answer it, and grow it! Steve Junquiero

percent growth every year. Bovey Lu Produce & Seafood Manager, Stew Leonard’s

at organic. We’re passion- ate about organic! And we’re focused on quick turns, high quality, and excellent customer service. We want to build com- munity and build it in a natural way by being true to who we are as a company and having honest interactions with people. Chris Miller Produce Director and Meat and Seafood Coordinator, MOM’s Organic Market

Jim Donald Co-Chairman Albertsons Companies

– – – – – – – – – – – – – – – – –

Kristen Quito Head of Product, Eataly North America

Organics is going to continue to grow. It’s going to continue to be one of our prior-

– – – – – – – – – – – – – – – – –

ities to bring in. … We’re going to continue to push organics at Target. It’s going to be a big goal for us as we move forward. Robby Cruz Vice President of Produce, Target

Former President and COO, Save Mart Supermarkets

OPN State of Organic Produce 2021

2021 Events . . . . . . . . . . . . . . . . . . . . . OPS

Organic Produce Summit September 15-16 . . . . . . . . . . . . . . . . . . . . . OGS Organic Grower Summit December 1-2 . . . . . . . . . . . . . . . . . . . . .

Organic Produce Summit

The 2021 Organic Produce Summit (OPS) brought together many members of the organic fresh produce community in Monterey, CA, on September 15-16 . With 1,200 attendees, engaging farm tours, and informative educational sessions, OPS created an energetic space for organic producers and buyers to discuss hot issues affecting the industry, including controlled environment agriculture (CEA), e-commerce, and opportunities and obstacles for organic fresh produce in a post-COVID world. Two engaging keynote presentations focused on what the organic produce industry can do to continue its strong growth, and a sold-out trade show floor of 150 exhibitors wrapped up the fifth annual OPS.

“Indoor agriculture is increasingly playing a more meaningful role in our fresh produce supply in terms of volume, variety, and geographical footprint. The ability of indoor ag to provide predictability and resiliency for supply, coupled with its lower impact on both the environment and resource use, is drawing substantial interest from both investors and consumers. Clearly, the future will be a hybrid one, and our panels will explore how quickly and responsibly this will happen.”

“If I convey anything today, it is the power of storytelling. The future of organics and the future of supermarketing comes down to storytelling.” Jim Donald Co-Chairman, Albertsons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “COVID changed the way people buy products, so retailers need to change the way they sell products.” David Bishop Partner, Brick Meets Click

“As an industry, we have to relook at the way we go to business. And we can’t be working on it siloed. And when I think about from the grower side of the business and the retailer side of the business, sometimes we go about it siloed versus working together on what that solution looks like. And I think … the opportunity we have as an industry is let’s be open and honest and work with each other on what [the shift to e-commerce] looks like as we move forward.” Robby Cruz Vice President of Produce, Target

“Organic clearly serves the conscious consumer, and as the crisis slows down, as COVID gets normalized, we’re going to … have to answer to that consumer with a responsible package.” Ricardo Crisantes Chief Commercial Officer, Wholesum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “There are 8 billion people to feed in the world. The best thing we can do is feed them organic food.” Larissa Zimberoff Author and investigative journalist

Walter Robb Former Co-CEO, Whole Foods

OPN State of Organic Produce 2021

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