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Information GraphicsOrganic Industry Structure

The development of the USDA National Organic Standard in place of differing

state/regional standards was widely predicted to acceleratetrends of increasing consolidation in this sector. The first draft of the standard was

released in 1997; what changes in ownership and control

have since occurred? 

For an article providing more detail on these graphics see:

Howard, Philip H. 2009. Consolidation in the North American Organic Food Processing Sector,

1997 to 2007. International Journal of Sociology of Agriculture and Food 16(1), 13-30. [online]

Most acquisitions of organic processors occurred between December, 1997 when the draft USDA

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standard was released,

and its full implementation in October, 2002. Few companies identify these ownership ties on

product labels.

Cargill's strategic alliances with French Meadow and Hain Celestial are to develop products with

nutritionally enhanced organic ingredients

such as phytosterols, soy isoflavones, trehalose, inulin, and chondroitin. Heinz acquired a19.5% stake in Hain Celestial in 1999 while

also transferring ownership of their Earth's Best brand, but sold all of its Hain Celestial stock in

2005.

PDF version of Organic Industry Structure: Top 30 Acquisitions 

Most introductions of organic versions of well-known brands occurred after the USDA standard

was implemented in October, 2002.

Some, such as Dove Organic, have been developed specifically for Wal-Mart.

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PDF version of Organic Industry Structure: Top 30 Introductions

Venture capitalists currently describe organic processing as "fragmented." They are acquiring

brands within the same sector

(bread, meat, etc.) with plans to sell them for significant gain at a later date.

PDF version of Organic Industry Structure: Significant Acquisitions and Introductions

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Most remaining independent organic processors have resisted substantial buyout offers (typically

2 times annual sales).

PDF version of Organic Industry Structure: Major Independents and Their Brands

Network Animation of Data from the 4 Charts Above

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View Larger, Higher-Resolution QuickTime Version:

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http://www.msu.edu/~howardp/OrganicIndustry.mov 

Produced in collaboration with Skye Bender-deMoll, an author of SoNIA - Social Network Image

Animator.

An increasing number of supermarkets, wholesale clubs and distributors are introducing organic

private label products, in addition to chains that specialize in organic and natural foods.

PDF version of Organic Industry Structure: Private Label Brands

More Information Graphics - Organic Distribution & Retail Structure  Organic Farm

Concentration  Seed Industry Structure  The Food System

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https://www.msu.edu/~howardp/organicindustry.html