Pathways to Success in Florida’s

Organic Market

Study Results

Persistence of Florida’s Small Organic Farms in the Face of Growing Demand for Organic ProductsLindsay Fernandez-Salvador

Farm Participants and Agroecological Regions

Characteristics of Successful FarmsDefinition of farm success

* This study asked participants to rate various aspects of their farm operation in terms of successAnswer were averaged to give an overall “success score”

Aspect of Operation

Farms makes net profit (on average) of $20,000 annually

Farm provides half of household’s employment

Farm provides full household employment

I am able to expand in acreage/machinery/infrastructure

Farm provides lifestyle myself and my family enjoy

Results show that farms between 1 and 10 acres and over 600 acres have the highest success. One reason this could happen is because production on 10 acres or less is enough to satisfy the local markets, and production on 600 acres or more have the capacity to meet national and international demand. Farm operations between those size categories experience a situation in which they have too much product for the local market and not enough to successfully compete in the wholesale market.

o� 10� 20� 30 40� 50� 60

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Time Farming Conventionally

Time (vrs)

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o� 5� 10 15 20� 25�

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5.00

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Time Farming Organic

Time (vrs)

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ess

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Predictably, success increases as farmers gain experience farming organically. Some of the reasons for this include gaining familiarity with methods and products that work for pest issues, establishment of customer base, and brand recognition. On the other hand, results show that success decreases the more experience a grower has farming conventionally (or non-certified). One possibility for this trend could be that long-time conventional farmers encounter difficulties adjusting to the size of the organic market and the marketing strategies.

1� 10� 100� 1000� 10000

Size of Farm (Acres)

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5

4

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Farm and Success Score

Creating a value-added product through intermediate processing is another pathway to success. For example, a pint of organic strawberries costs $2 on the market. The same pint of strawberries processed into organic jam costs $5 on the market.

Farm

Farm CSA

Farmer’s Market

Cooperative Other Farm’sCSA

Raw product fromcontracted smallacreage holders

Farm

On-SiteProcessing

Plant

On-Site FreshProduct Packing

House

WholesaleDistributors

ConventionalGrocery

DistributionChairns

Other natural foodstores

( e.g. Mother Earth)

e.g Wholefoods

e.g Publix

e.g Wal-Mart

* Examples of high-end edibles include micro-greens, rare vegetables and fruits and delicate export items.

Characteristic

Business strategy

Off-farm inputs

Access to market

Years farming organic vs. conventional

Type of crop

Size of farm (acres)

Principle market strategy

Successful Farms

Relies on ‘social contract’

Controls cost by minimizing use

Diversifies sales outlets

More time organic

‘High end edibles’*

<5 acres or >100 acres

Direct-retail

Struggling Farms

Has no ‘social contract’

Uses inputs regularly

Relies on one or two outlets

More time conventional

Mono crops (i.e. citrus)

Between 10 and 100 acres

Wholesale

Very Successful Direct-Retail Market Chain

Very Successful Wholesale Market Chain

Lindsay Fernandez-Salvadorriedlinl@ufl.edu

Study funded by Organic Farming Research Foundation.

Thank you to all the participating organic farmers.

Factors that Help and Hinder Farm SuccessThreats and contributions to farm’s success

Cert Standards 16%

Inputs 36%

Competition 29%

Labor 19%

Factors Contributing to Farm Success

Premiums 23%

Consumer Preferences 42%