Mercaris: Organic production continues to grow |

Mercaris: Organic production continues to grow

The Hagstrom Report

U.S. harvested organic field crop area will exceed 3.4 million acres over the 2020-21 marketing year, up 4% year on year, Mercaris reported today in releasing its annual commodity outlook.

Mercaris, a market data service and online trading platform for organic, non-GMO and certified agricultural commodities, also reported that the 2020-21 yield outlook for many key U.S. organic crops is expected to rebound following 2019-20’s dismal planting and harvest weather conditions.

With larger U.S. organic commodity supplies on the horizon, growth in organic livestock production and feed demand will be critical over 2020-21, the company said.

Despite the rapid global spread of the novel coronavirus COVID-19, U.S. organic consumer demand appears to have held up over 2019-20, with both organic broiler and turkey meat production achieving year on year growth, Mercaris added.

“The expansion in organic turkey production this year has been nothing short of phenomenal,” said Ryan Koory, director of economics for Mercaris.

“We estimate the daily rate of organic turkey slaughter jumped 147% over the past year. From 5,600 head per day over August 2019, to 13,800 head per day over August 2020,” Koory said. “Maintaining August’s slaughter rate alone is enough to significantly expand total organic turkey slaughter over 2020-21.”

Mercaris also anticipates that U.S. consumer markets for organic protein will continue to expand in the 2020-21 market year, however this outlook is largely dependent on the strength of the U.S. economy and consumer demand over the year to come.

Additional findings from Mercaris Commodity Outlook include:

• The number of certified organic operations in the U.S. will reach 19,888 over 2020-21, a 4% increase year on year.

• Organic corn livestock feed use is projected to increase 6% year on year over 2020-21 as organic poultry production continues to boost demand for U.S. organic grain feed.

• U.S. organic soybean crush is projected to increase 13% year on year over 2020-21 as organic soybean meal imports plateau, and livestock feed demand continues to expand.

• U.S. non-GMO soybean planted area expanded 19% year on year over 2020.

• U.S. non-GMO corn planted area increased 8% year on year over 2020. ❖