A sustainable market for organic produce

Despite the rising retail cost of organic produce, sector sales still account for approximately 15% of all U.S. fruit and vegetable revenues, reports the Washington, D.C.-based Organic Trade Association.

That ongoing demand for organic and other sustainable fruits and vegetables is creating solid growth opportunities for produce retailers, said Sonia Acuña-Rubio, director of food product certification for NSF, an Ann Arbor, Mich.-based provider of testing, inspection, certification, and advisory services, and digital solutions.

To realize that potential, however, merchandisers and suppliers must meet the standards most important to consumers, she said. That includes the minimal use of synthetic pesticides, herbicides, and fertilizers by suppliers; the availability of locally sourced items with a lower carbon footprint due to a reduction in transportation distances; and the use of eco-friendly, biodegradable, and recyclable or reusable packaging, Acuña-Rubio said.

Also important to organic and sustainable-minded consumers are certifications for fair trade and ethical practices, which demonstrate that suppliers are offering fair wages and safe working conditions, and the spotlighting of product origins and production methods, she said.

An organization’s commitment to sustainable products and healthy living can generate added loyalty by enhancing a retailer’s eco-friendly image while setting the operator apart from competitors, Acuña-Rubio said.

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“Because sustainable priorities may vary among consumer segments, it is crucial that retailers understand the specific values and preferences of their target audience,” she said.

Efficiently sourcing and marketing organic and sustainable fruits and vegetables, however, can be arduous, Acuña-Rubio said. Retailers often must coordinate with multiple suppliers, especially for seasonal or region-specific produce, while maintaining a paper trial of organic certifications across the supply chain, she said.

In addition, the shorter shelf life of many organic and sustainable selections makes it difficult for merchandisers to ensure consistent quality and freshness, and such products are often more expensive, requiring retailers to balance consumer affordability with higher company operating expenses, Acuña-Rubio said.

“Building consumer trust in these products can be challenging too, especially in cases of greenwashing or false claims,” she said. “Educating shoppers about the value and impact of the items with consistent messaging is crucial in overcoming skepticism.”

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Forging long-term relationships with suppliers who share a commitment to sustainability can enhance operations as well, Acuña-Rubio said, noting that strong collaboration will help ensure a reliable product supply and establish transparent communication channels to address issues and concerns.

Retailers also should inform consumers about the benefits and importance of purchasing organic and sustainable produce while spotlighting stores’ sustainability practices, she said, noting that vehicles can include product displays, social media, and blogs.

“Shopper and retailer interest in organic and sustainable produce will continue to grow and become a mainstream expectation, and consumers will be increasingly willing to pay a premium for the products,” Acuña-Rubio said.