Organic Sector Losing Ground, Bad Economy and New Regulations to Blame

Let’s face it. The economy stinks. So it makes sense that premium goods, like organic foods, would suffer as more and more Americans try to save money.

From 1990 to 2007, the Organic Trade Association says the sales of organic foods jumped from $1 billion to $20 billion, but the honey moon is now over.

For example, one expert said the growth of Whole Foods’ organic sector recently dropped from 20% to 12.5% and some worry this level of growth may never be seen again.

And here’s where the plot thickens. Many organic farmers feel new government regulations—aimed to improve food safety—may unfairly single out small farms and cripple them financially.

New legislation will require the industry to fork over a $500 registration fee for each facility to pay for increased plant inspections. It could be even more if all these extra inspections result in additional expenses.

Big corporate food producers might be able to fit the bill, but the little organic farmer will be bankrupted.

Via Reuters.