Consolidation in the North American Organic Food Processing Sector, 1997 to 2007
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Published
Jan 15, 2009
Philip H. Howard
Abstract
Significant structural changes have accompanied the phase-in of a national organic standard in the United States over the last decade. The organic processing sector was particularly amenable to change due to its location downstream from production, where concentrations of capital encounter fewer biological barriers, and currently benefit from greater economies of scale. Consolidation of this emerging industry in the US and neighboring Canada is characterized visually using information graphics. These graphics provide a broad overview of the current industry structure by depicting the processes of horizontal integration and concentric diversification. Horizontal integration has occurred through acquisitions and strategic alliances, although these transactions are often hidden from consumers through ‘stealth’ ownership. Concentric diversification has occurred through the introduction of organic versions of mainstream brands, and the introduction of private label organics. These trends are expected to continue, and strongly support the conventionalization thesis as it applies to off-farm segments of the organic food industry.
How to Cite
H. Howard, . P. . (2009) “Consolidation in the North American Organic Food Processing Sector, 1997 to 2007 ”, The International Journal of Sociology of Agriculture and Food. Paris, France, 16(1), pp. 13–30. doi: 10.48416/ijsaf.v16i1.280.
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References
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BATTE, M.T., hooKEr, N.h., hAAB, T.C. and BEAVErSoN, J. (2007) Putting their money where their mouths are: consumer willingness to pay for multi-ingredient, processed organic food products, Food Policy, 32, pp. 145–159.
BEAr NAKED (2008) Our Story: Brendan, Kelly and Bear Naked. Published online.
BENBrooK, C. (1998) organic farming: facing choices at the crossroads, Presented at the Guelph organic Conference, Guelph, ontario, 31 Jan.
BErLINSKI, P. (2007) Store brands go green, Private Label, November/october, published online http://www.privatelabelmag.com/pdf/pl_novdec2007/coverstory.cfm>.
BoSTröM, M. and KLINTMAN, M. (2006) State-centered versus non-state driven organic food standardization: a comparison of the us and sweden, Agriculture and Human Values, 23, pp. 163–180.
BUCK, D., GETZ, C. and GUThMAN, J. (1997) From farm to table: the organic vegetable commodity chain of Northern California, Sociologia Ruralis, 37, pp. 3–20.
BUrCh, D. and LAwrENCE, G. (2005) Supermarket own brands, supply chains and the transformation of the agri-food system, International Journal of Sociology of Agriculture and Food, 13, pp. 1–18.
ChArTErhoUSE GroUP, INC. (2005) Charterhouse Group Portfolio Company Creates a Leading Organic and Natural Baking Company. Published online, accessed 25 Mar.
CoNSTANCE, D.h., ChoI, J.Y. and LYKE-ho-GLAND, h. (2008) Conventionalization, bifurcation, and quality of life: certified and non-certified organic farmers in Texas, Southern Rural Sociology, 23, pp. 208–234.
CooPErATIVE DEVELoPMENT SErVICES (2006) Report On The Organic And Natural Industry: Market Opportunities For Producer And Retail Cooperatives. Madison, wI: Cooperative Development Services.
DAIRy INDuSTRIeS JOuRNAL (2007) Non-organic rachel's, Dairy Industries Journal, 72, p. 9.
DELIND, L.B. (2000) Transforming organic agriculture into industrial organic products: reconsidering national organic standards, Human Organization, 59, pp. 198–208.
DELIND, L.B. and howArD, P.h. (2008) Safe at any scale? food scares, food regulation, and scaled alternatives, Agriculture and Human Values, 25, pp. 301–317.
DIMITrI, C. and oBErhoLTZEr, L. (2005) Market-Led Versus Government-Facilitated Growth: Development of the uS and eu Organic Agricultural Sectors. washington, DC: US Department of Agriculture Economic research Service.
DU BoFF, r.B. and hErMAN, E.S. (2001) Mergers, concentration, and the erosion of democracy, Monthly Review, 53, pp. 14–29.
DUPUIS, E.M. (2000) Not in my body: rBGh and the rise of organic milk, Agriculture and Human Values, 17, pp. 285–295.
DUPUIS, E.M. and GILLoN, S. (2009) Alternative modes of governance: organic as civic engagement, Agriculture and Human Values, 26, pp. 43–56.
FETTEr, T.r. and CASwELL, J.A. (2002) Variation in organic standards prior to the national organic program, American Journal of Alternative Agriculture, 17, pp. 55–74.
FrIEDMANN, h. (1992) Distance and durability: shaky foundations of the world food economy, Third World Quarterly, 13, pp. 371–383.
FroMArTZ, S. (2006) Organic, Inc.: Natural Foods and How They Grew. orlando, FL: harcourt.
FroMArTZ, S. (2008) earthbound’s 100 Percent Organic Leap. Published online
FUSAro, D. (2007) The Top 100: Kraft returns to the top, Food Processing, 19 Aug.
GooDMAN, D. (2004) rural Europe redux? reflections on alternative agro-food networks and paradigm change, Sociologia Ruralis, 44, pp. 3–16.
GooDMAN, D., SorJ, B. and wILKINSoN, J. (1987) From Farming to Biotechnology: A Theory of Agro-Industrial Development. New York: Basil Blackwell.
GUThMAN, J. (2004a) Agrarian Dreams: The Paradox of Organic Farming in California. Berkeley: University of California Press.
GUThMAN, J. (2004b) The trouble with ‘organic lite’ in California: a rejoinder to the ‘conventionalisation’ debate, Sociologia Ruralis, 44, pp. 301–316.
hANNAForD, S. (2007) Market Domination!: The Impact of Industry Consolidation on Competition, Innovation, and Consumer Choice. westport, CT: Praeger.
hEFFErNAN, w., hENDrICKSoN, M. and GroNSKI, r. 1999. Consolidation in the food and agricultural system, Department of rural Sociology, University of Missouri.
hEFFErNAN, w.D. (2000) Concentration of ownership and control in agriculture, in J.B. FoSTEr, F.h. BUTTEL and F. MAGDoFF (eds) Hungry for Profit: The Agribusiness Threat to Farmers, Food and the environment, New York: Monthly review Press.
hELLIKEr, K. (2002) In natural foods, a big name’s no help, Wall Street Journal, 7 June, p. B:1.
hENDrICKSoN, M. and hEFFErNAN, w.D. (2007) Concentration of agricultural markets, Apr. 2007, Department of rural Sociology, University of Missouri.
hENDrICKSoN, M., hEFFErNAN, w.D., howArD, P.h. and hEFFErNAN, J.B. (2001) Consolidation in food retailing and dairy, British Food Journal, 103, pp. 715–728.
hoLMES, M. (2008) Organic Trade Association Sees Promise in Minister Of Agriculture’s Support For ‘Going Organic’. oTA press release, 11 Mar.
howArD, P.h. andALLEN, P. (2006) Beyond organic: consumer interest in new labelling schemes in the central coast of California, International Journal of Consumer Studies, 30, pp. 439–451.
howArD, P.h. and ALLEN, P. (2008) Consumer willingness to pay for domestic ‘fair trade’: evidence from the United States, Renewable Agriculture and Food Systems, 23, pp. 235–242.
howIE, M. (2004) research roots out myths behind buying organic foods, Feedstuffs, 76, pp. 16–17.
IKErD, J. (1999) organic agriculture faces the specialisation of production systems; specialized systems and the economical stakes, Presented at Colloques de l'INrA, Lyon, France, December.
IMhoFF, D. (1998) organic Incorporated, Whole earth Review, 92.
KASTEL, M. (2007) Nation's Largest Retailers Accused of Organic Fraud. Cornucopia Institute press release, 13 Dec.
KAUTSKY, K. (1899) The Agrarian Question, 2 vols. (trans. Peter Burgess). London: Zwan Publications.
KorTBECh-oLESoN, r. (2004) The Canadian market for organic food and beverages, International Trade Centre, UNCTAD/wTo. Geneva, Switzerland.
KrALL, J. (2003) Big-brand logos pop up in organic aisle, Wall Street Journal, July 29, p. B:1.
LEMPErT, P. (2007) Consumers embrace organic private label, Facts, Figures & the Future, August.
LoCALhArVEST (2007) Community Supported Agricultures. Published online, accessed 8 Nov. 2007.
LoCKIE, S., LYoNS, K., LAwrENCE, G. and hALPIN, D. (2006) Going Organic: Mobilising Networks for environmentally Responsible Food Production. Cambridge, MA: CABI.
LYSoN, T.A. and rAYMEr, A.L. (2000) Stalking the wily multinational: power and control in the US food system, Agriculture and Human Values, 17, pp. 199–208.
MACEY, A. (2007) Retail Sales of Certified Organic Food Products in Canada, in 2006. Truro, Nova Scotia: organic Agriculture Centre of Canada.
MANN, S.A. and DICKINSoN, J.M. (1978) obstacles to the development of a capitalist agriculture, Journal of Peasant Studies, 5, pp. 466–481.
MITChELL, D. (2008) Safeway's private organics brand branching out, The Produce executive, 7 May.
MSI (2007) Frequently Asked Questions. Published online.
MUrPhY, A.J. and TrAUGEr, A. (2006) On the Moral equivalence of Foods: Organic and Conventional Bananas in Global Production Networks. Massey University Department of Commerce working Paper Series 06.06.
MUrPhY, K. (1997) There's big green in organic food, Business Week, 6 october.
NESS, C. (2006) Brewing behemoth sneaks into organics, San Francisco Chronicle, 30 Mar., p. F:1.
NUTrITIoN BUSINESS JoUrNAL (2006) NBJ’s Top 50 natural and organic food manufacturers in 2005 – chart 80. Boulder, Co: Nutrition Business Journal.
oTA (orGANIC TrADE ASSoCIATIoN) (2004) The OTA 2004 Manufacturer Survey Overview. Published online:.
oTA (orGANIC TrADE ASSoCIATIoN) (2006) The Organic Trade Association 2006 Manufacturer Survey.
Overview. Published online.
oTA (orGANIC TrADEASSoCIATIoN) (2007) The Organic Trade Association 2007 Manufacturer Survey Overview. Published online.
PACKAGED FACTS (2000) The u.S. Organic Food Market. rockville, MD: Packaged Facts.
PoLLAN, M. (2001) Behind the organic-industrial complex, New york Times Magazine, 13, pp. 30–40.
PrITChArD, B. (2000) The tangible and intangible spaces of agro-food capital, Presented at the 10th International rural Sociology Association world Congress, rio de Janeiro, Brazil, July.
PROGReSSIVe GROCeR (2008) organic Valley’s ‘07 sales up 29 percent, Progressive Grocer, 7 Mar.
rAYNoLDS, L.T. (2004) The globalization of organic agro-food networks, World Development, 32, pp. 725–743.
SILVErSTEIN, B. (2007) Silk soymilk, Brand Channel, 31 Dec.
SLIGh, M. and ChrISTMAN, C. (2003) Who Owns Organic? The Global Status, Prospects, And Challenges Of A Changing Organic Market. Pittsboro, NC: rural Advancement Foundation International-USA.
SoUThworTh, G. (2001) Natural/organic industry outlook, Cooperative Grocer, 96, published online.
SUNoPTA (2008) Sunopta Completes Acquisition of Tradin Organic Agriculture of Amsterdam. Sunopta press release, Apr. 2, Brampton: Sunopta.
SUPErMArKET NEwS (2007) SN Top 75 2007. Published online.
ThoMPSoN, S. (2006) organics fail to yield cash crop for food giants, Advertising Age, 15 oct.
TIDwELL, J. (2005) Designing Interfaces. Sebastopol, CA: o'reilly Media.
ToMLINSoN, I. (2008) re-thinking the transformation of organics: the role of the UK government in shaping British organic food and farming, Sociologia Ruralis, 48, pp. 133–151.
USDA (UNITED STATES DEPArTMENT oF AGrICULTUrE) (2007) Farmers Market Growth: 1994-2006. Published online.
wArNEr, M. (2006) wal-Mart eyes organic foods, and brand names get in line, The New york Times, 12 May, p. A:1.
wATTS, M.J. and GooDMAN, D. (1997) Agrarian questions: global appetite, local metabolism: nature, culture, and industry in fin-de-siècle agro-food systems, in: D. GooDMAN and M.J. wATTS (eds) Globalising Food: Agrarian Questions and Global Restructuring. New York: routledge, pp. 1–23.
ZIMMErMAN, A. (2006) Planting the seeds, Wall Street Journal, 23 August, p. B:1.
BATTE, M.T., hooKEr, N.h., hAAB, T.C. and BEAVErSoN, J. (2007) Putting their money where their mouths are: consumer willingness to pay for multi-ingredient, processed organic food products, Food Policy, 32, pp. 145–159.
BEAr NAKED (2008) Our Story: Brendan, Kelly and Bear Naked. Published online
BENBrooK, C. (1998) organic farming: facing choices at the crossroads, Presented at the Guelph organic Conference, Guelph, ontario, 31 Jan.
BErLINSKI, P. (2007) Store brands go green, Private Label, November/october, published online http://www.privatelabelmag.com/pdf/pl_novdec2007/coverstory.cfm>.
BoSTröM, M. and KLINTMAN, M. (2006) State-centered versus non-state driven organic food standardization: a comparison of the us and sweden, Agriculture and Human Values, 23, pp. 163–180.
BUCK, D., GETZ, C. and GUThMAN, J. (1997) From farm to table: the organic vegetable commodity chain of Northern California, Sociologia Ruralis, 37, pp. 3–20.
BUrCh, D. and LAwrENCE, G. (2005) Supermarket own brands, supply chains and the transformation of the agri-food system, International Journal of Sociology of Agriculture and Food, 13, pp. 1–18.
ChArTErhoUSE GroUP, INC. (2005) Charterhouse Group Portfolio Company Creates a Leading Organic and Natural Baking Company. Published online
CoNSTANCE, D.h., ChoI, J.Y. and LYKE-ho-GLAND, h. (2008) Conventionalization, bifurcation, and quality of life: certified and non-certified organic farmers in Texas, Southern Rural Sociology, 23, pp. 208–234.
CooPErATIVE DEVELoPMENT SErVICES (2006) Report On The Organic And Natural Industry: Market Opportunities For Producer And Retail Cooperatives. Madison, wI: Cooperative Development Services.
DAIRy INDuSTRIeS JOuRNAL (2007) Non-organic rachel's, Dairy Industries Journal, 72, p. 9.
DELIND, L.B. (2000) Transforming organic agriculture into industrial organic products: reconsidering national organic standards, Human Organization, 59, pp. 198–208.
DELIND, L.B. and howArD, P.h. (2008) Safe at any scale? food scares, food regulation, and scaled alternatives, Agriculture and Human Values, 25, pp. 301–317.
DIMITrI, C. and oBErhoLTZEr, L. (2005) Market-Led Versus Government-Facilitated Growth: Development of the uS and eu Organic Agricultural Sectors. washington, DC: US Department of Agriculture Economic research Service.
DU BoFF, r.B. and hErMAN, E.S. (2001) Mergers, concentration, and the erosion of democracy, Monthly Review, 53, pp. 14–29.
DUPUIS, E.M. (2000) Not in my body: rBGh and the rise of organic milk, Agriculture and Human Values, 17, pp. 285–295.
DUPUIS, E.M. and GILLoN, S. (2009) Alternative modes of governance: organic as civic engagement, Agriculture and Human Values, 26, pp. 43–56.
FETTEr, T.r. and CASwELL, J.A. (2002) Variation in organic standards prior to the national organic program, American Journal of Alternative Agriculture, 17, pp. 55–74.
FrIEDMANN, h. (1992) Distance and durability: shaky foundations of the world food economy, Third World Quarterly, 13, pp. 371–383.
FroMArTZ, S. (2006) Organic, Inc.: Natural Foods and How They Grew. orlando, FL: harcourt.
FroMArTZ, S. (2008) earthbound’s 100 Percent Organic Leap. Published online
FUSAro, D. (2007) The Top 100: Kraft returns to the top, Food Processing, 19 Aug.
GooDMAN, D. (2004) rural Europe redux? reflections on alternative agro-food networks and paradigm change, Sociologia Ruralis, 44, pp. 3–16.
GooDMAN, D., SorJ, B. and wILKINSoN, J. (1987) From Farming to Biotechnology: A Theory of Agro-Industrial Development. New York: Basil Blackwell.
GUThMAN, J. (2004a) Agrarian Dreams: The Paradox of Organic Farming in California. Berkeley: University of California Press.
GUThMAN, J. (2004b) The trouble with ‘organic lite’ in California: a rejoinder to the ‘conventionalisation’ debate, Sociologia Ruralis, 44, pp. 301–316.
hANNAForD, S. (2007) Market Domination!: The Impact of Industry Consolidation on Competition, Innovation, and Consumer Choice. westport, CT: Praeger.
hEFFErNAN, w., hENDrICKSoN, M. and GroNSKI, r. 1999. Consolidation in the food and agricultural system, Department of rural Sociology, University of Missouri.
hEFFErNAN, w.D. (2000) Concentration of ownership and control in agriculture, in J.B. FoSTEr, F.h. BUTTEL and F. MAGDoFF (eds) Hungry for Profit: The Agribusiness Threat to Farmers, Food and the environment, New York: Monthly review Press.
hELLIKEr, K. (2002) In natural foods, a big name’s no help, Wall Street Journal, 7 June, p. B:1.
hENDrICKSoN, M. and hEFFErNAN, w.D. (2007) Concentration of agricultural markets, Apr. 2007, Department of rural Sociology, University of Missouri.
hENDrICKSoN, M., hEFFErNAN, w.D., howArD, P.h. and hEFFErNAN, J.B. (2001) Consolidation in food retailing and dairy, British Food Journal, 103, pp. 715–728.
hoLMES, M. (2008) Organic Trade Association Sees Promise in Minister Of Agriculture’s Support For ‘Going Organic’. oTA press release, 11 Mar.
howArD, P.h. andALLEN, P. (2006) Beyond organic: consumer interest in new labelling schemes in the central coast of California, International Journal of Consumer Studies, 30, pp. 439–451.
howArD, P.h. and ALLEN, P. (2008) Consumer willingness to pay for domestic ‘fair trade’: evidence from the United States, Renewable Agriculture and Food Systems, 23, pp. 235–242.
howIE, M. (2004) research roots out myths behind buying organic foods, Feedstuffs, 76, pp. 16–17.
IKErD, J. (1999) organic agriculture faces the specialisation of production systems; specialized systems and the economical stakes, Presented at Colloques de l'INrA, Lyon, France, December.
IMhoFF, D. (1998) organic Incorporated, Whole earth Review, 92.
KASTEL, M. (2007) Nation's Largest Retailers Accused of Organic Fraud. Cornucopia Institute press release, 13 Dec.
KAUTSKY, K. (1899) The Agrarian Question, 2 vols. (trans. Peter Burgess). London: Zwan Publications.
KorTBECh-oLESoN, r. (2004) The Canadian market for organic food and beverages, International Trade Centre, UNCTAD/wTo. Geneva, Switzerland.
KrALL, J. (2003) Big-brand logos pop up in organic aisle, Wall Street Journal, July 29, p. B:1.
LEMPErT, P. (2007) Consumers embrace organic private label, Facts, Figures & the Future, August.
LoCALhArVEST (2007) Community Supported Agricultures. Published online
LoCKIE, S., LYoNS, K., LAwrENCE, G. and hALPIN, D. (2006) Going Organic: Mobilising Networks for environmentally Responsible Food Production. Cambridge, MA: CABI.
LYSoN, T.A. and rAYMEr, A.L. (2000) Stalking the wily multinational: power and control in the US food system, Agriculture and Human Values, 17, pp. 199–208.
MACEY, A. (2007) Retail Sales of Certified Organic Food Products in Canada, in 2006. Truro, Nova Scotia: organic Agriculture Centre of Canada.
MANN, S.A. and DICKINSoN, J.M. (1978) obstacles to the development of a capitalist agriculture, Journal of Peasant Studies, 5, pp. 466–481.
MITChELL, D. (2008) Safeway's private organics brand branching out, The Produce executive, 7 May.
MSI (2007) Frequently Asked Questions. Published online
MUrPhY, A.J. and TrAUGEr, A. (2006) On the Moral equivalence of Foods: Organic and Conventional Bananas in Global Production Networks. Massey University Department of Commerce working Paper Series 06.06.
MUrPhY, K. (1997) There's big green in organic food, Business Week, 6 october.
NESS, C. (2006) Brewing behemoth sneaks into organics, San Francisco Chronicle, 30 Mar., p. F:1.
NUTrITIoN BUSINESS JoUrNAL (2006) NBJ’s Top 50 natural and organic food manufacturers in 2005 – chart 80. Boulder, Co: Nutrition Business Journal.
oTA (orGANIC TrADE ASSoCIATIoN) (2004) The OTA 2004 Manufacturer Survey Overview. Published online:
oTA (orGANIC TrADE ASSoCIATIoN) (2006) The Organic Trade Association 2006 Manufacturer Survey.
Overview. Published online
oTA (orGANIC TrADEASSoCIATIoN) (2007) The Organic Trade Association 2007 Manufacturer Survey Overview. Published online
PACKAGED FACTS (2000) The u.S. Organic Food Market. rockville, MD: Packaged Facts.
PoLLAN, M. (2001) Behind the organic-industrial complex, New york Times Magazine, 13, pp. 30–40.
PrITChArD, B. (2000) The tangible and intangible spaces of agro-food capital, Presented at the 10th International rural Sociology Association world Congress, rio de Janeiro, Brazil, July.
PROGReSSIVe GROCeR (2008) organic Valley’s ‘07 sales up 29 percent, Progressive Grocer, 7 Mar.
rAYNoLDS, L.T. (2004) The globalization of organic agro-food networks, World Development, 32, pp. 725–743.
SILVErSTEIN, B. (2007) Silk soymilk, Brand Channel, 31 Dec.
SLIGh, M. and ChrISTMAN, C. (2003) Who Owns Organic? The Global Status, Prospects, And Challenges Of A Changing Organic Market. Pittsboro, NC: rural Advancement Foundation International-USA.
SoUThworTh, G. (2001) Natural/organic industry outlook, Cooperative Grocer, 96, published online
SUNoPTA (2008) Sunopta Completes Acquisition of Tradin Organic Agriculture of Amsterdam. Sunopta press release, Apr. 2, Brampton: Sunopta.
SUPErMArKET NEwS (2007) SN Top 75 2007. Published online
ThoMPSoN, S. (2006) organics fail to yield cash crop for food giants, Advertising Age, 15 oct.
TIDwELL, J. (2005) Designing Interfaces. Sebastopol, CA: o'reilly Media.
ToMLINSoN, I. (2008) re-thinking the transformation of organics: the role of the UK government in shaping British organic food and farming, Sociologia Ruralis, 48, pp. 133–151.
USDA (UNITED STATES DEPArTMENT oF AGrICULTUrE) (2007) Farmers Market Growth: 1994-2006. Published online
wArNEr, M. (2006) wal-Mart eyes organic foods, and brand names get in line, The New york Times, 12 May, p. A:1.
wATTS, M.J. and GooDMAN, D. (1997) Agrarian questions: global appetite, local metabolism: nature, culture, and industry in fin-de-siècle agro-food systems, in: D. GooDMAN and M.J. wATTS (eds) Globalising Food: Agrarian Questions and Global Restructuring. New York: routledge, pp. 1–23.
ZIMMErMAN, A. (2006) Planting the seeds, Wall Street Journal, 23 August, p. B:1.
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