ORGANIC PRODUCTION
Opportunity, Requirements, and Pitfalls

Frank J. Dainello
Extension Horticulturist-Commercial Vegetable Crops
Department of Horticultural Sciences
Texas A&M University, College Station, Texas

OPPORTUNITY
In recent years, the demand for organic produce has been conservatively estimated to have increased by 10 - 15 %. Produce industry representatives expect this trend to continue for some time. As consumers become more and more concerned about food safety issues created by pesticide usage, expanded production will be needed to meet the increasing demand. As such organic production may offer a viable agricultural alternative as a niche market production system. Additionally, organically grown produce sometimes command premium prices as compared to conventionally grown produce. Increased profit potential may occur as a result of coupling the higher price per unit with reduced input costs derived from the illumination of expensive pesticides. Proponents of environmentally-friendly organic production systems also claim health benefits to consumers as a result of the reduced use of pesticides. The above claims appear to have excellent marketing appeal.

Opportunity inducements:
  1. Product demand is increasing
  2. Premium price received per unit
  3. Ideal niche market venture
  4. Loyal customer base
  5. Reduced production inputs
  6. Perceived as environmentally friendly agricultural production system
  7. Perceived health benefits

REQUIREMENTS
The Texas Department of Agriculture is the agency that regulates the organic industry in Texas. If organic production is to become a viable agricultural endeavor, a farm or farming operation, must first become "certified organic" by the Texas Department of Agriculture. Procedures for obtaining certification can be acquired by requesting a packet of information on organic certification from the Texas Department of Agriculture at the address listed below. Included in the packet is information on certification standards, a listing of approved materials used to produce, process and handle organic produce and /or agronomic crops as well as the necessary application forms required for certification.

Texas Department of Agriculture
Organic Certification Program
P. O. Box 12847
Austin, TX 78711

As with other agricultural enterprises, a primary requirement for success is associated with market availability and / or potential. Since organic production is currently considered a niche market, the initial step to achieving success is the determination of market potential and ones ability to capture a significant share of the market to enable profitability. Without a ready market, success with an organic operation is questionable. Another important factor impacting the success of organic production is the selection of the right crops and varieties which more readily lend themselves to being produced with this system. Crops having the least number of pest problems (examples - herbs, garlic, carrots) are the easiest to grow economically under Texas conditions. Regardless of which crops selected, the use of the most pest-resistant varieties available greatly enhance the chance for success.

Primary requirements
  1. Organic certification
  2. Determine market outlets
  3. Determine market potential
  4. Effective crop and variety selection

PITFALLS
Similar to other agricultural enterprises, organic production has risks associated with it. The major limiting factor to organic production in Texas is pest control. Although there are a few pesticides that can be legally used in organic production, there are many more non science-based techniques claimed to control insects, disease and weeds. Adequate weed control can be achieved by timely cultivation, and, insect populations can be held in check through effective scouting and treatment. The most challenging pests are diseases. Usually when diseases are visually apparent, it is too late for effective control. Many of the successful large scale organic operations are found in the desert Southwest, since high relative humidity and rainfall found in other areas tend to aggravates the disease control process. The chances for controlling pests increase as production moves westward across the state. As a consequence, pest control can be a real challenge to growers. This situation is further complicated by the lack of in-depth information on science-based production techniques.

Aesthetics is a very important consideration when marketing produce. Usually organically-grown produce has less eye appeal than conventionally grown produce. This is usually the result of blemishes caused by uncontrolled pests. Surfaces blemishes can create marketing problems especially when there are large volumes of in-season produce a similar kind and conventionally-grown begins to compete for the same markets.

The use of manure is the foundation of organic production. Unless properly composted this material has the potential to carry pathogens which can cause health problems if produce comes in contact with it in the field and is not properly washed. Chemical disinfectants available as for conventionally-grown produce cannot legally be used in organic operations. The new Food Quality Protection Act may pose another obstacle to the growth of the organic industry.

Currently organically grown produce is considered niche market commodities. Niche market items, as the name implies, are usually focused market items which usually have limited sales potential. One of the major limitations to large scale production of organic produce is market saturation. If this occurs, usually there are no other outlets to which the excess supply can be diverted. Errors in market assessment can be disastrous.

Major pitfalls

  1. Limited markets and market alternatives
  2. Strong competition from conventionally-grown items
  3. Limited information availability of science-based production and handling techniques.
  4. High incidences of pest occurrences in Texas and subsequent crop injury and /or failure.
  5. Limited availability of science-based pest control measures, especially for disease pathogens.
  6. Increased potential for food borne illnesses resulting from the use of manure; and the lack of approved surface pathogen decontamination products.
  7. The reduction in input costs may be offset somewhat with higher labor costs usually associated with organic production).