Organic Suppliers Discuss What's Ahead in 2022

If you have been enjoying Organic Insider, you can support our work by sharing this email with your colleagues and asking them to subscribe. Thank you so much and we are very grateful to have you as a reader.

In today’s newsletter, we reached out to a handful of organic suppliers with the following question.

As it relates to organic, what is going to happen in 2022?

—–

Gerard Versteegh
President of Tradin Organic

In 2022, I expect that the climate impact of food production will be a main topic in the organic industry, and everything will revolve around it. Regenerative agriculture will expand further, and more companies and organizations will join the Regenerative Organic Certified movement. Additionally, the plant-based trend will also continue to grow. As a result, the companies that develop plant-based products will thrive this year. In regards to COVID, I believe that immune-boosting ingredients will remain in high demand.

Beau Guthrie and Erin Sojourner
Co-CEO and VP of Strategy + Innovation at HB Specialty Foods

We see a big shift taking place in 2022 in regards to how organic brands and manufacturers will be treating their workers. These workers were recently identified as “essential”, but as the mid-2021 reports examining The Great Resignation uncover, these workers were not always treated as “essential.”

With the rapidly changing labor market, companies are now having to create workplaces that employees value not only for their monetary compensation but for the overall work experience. We have seen wages increase significantly as of late, but for many small to mid-sized companies, that will not be sustainable. Employers need to find ways to better understand what is important to their teams. They need to find ways to open up a dialogue at all levels and really show they care. We have been doing this at HB through “Open Space” events, lots of surveys and just talking to people, all with the goal of co-creating core values to align all departments, closing the gap between our production and office employees.

Jeff Van Pevenage
President & CEO of Columbia Grain International

Pandemic shutdowns slowed the growth of organic ingredients production, causing supplies to tighten. However, organic acreage should begin to expand in 2022, and the largest percent increase in field crops will come from pulses. This is mostly from an increase in organic dry beans and lentils grown in Montana, which we’ve seen firsthand.

Given ideal weather conditions, we will see more production, more interest and more foods developed that utilize organic ingredients and whole foods, as the popularity and continued growth of the organic industry in 2022 will be motivated by a younger consumer demographic. Over 35% of Millennials and the Gen X population consume organic products.

Lastly, we predict the implementation of more rigorous standards for organic certification in the United States. The USDA’s National Organic Program is strengthening enforcement and significantly updating USDA organic regulations to boost enforcement and oversight.

Joe Ennen
CEO of SunOpta

In 2022, organic loyalists will remain committed to health and wellness, purchasing and preparing organic food for their families. With ongoing supply chain challenges, it is now more important than ever for manufacturers to work closely with farmers. It’s time for nimble innovation, including new applications and formats.

Jason Freeman
CEO & Founder of Farmer Direct Organic

In 2022, I think a refocus on soil and the centrality of organic family farms — as the stewards of this soil — is going to happen. This is being represented by two things: the launch of a plethora of new Regenerative Organic Certified packaged food products and the rise of the Real Organic Project.

Both of these initiatives were catalyzed, at least in part, by the allowance of soil-less farming (hydroponics) into the USDA’s National Organic Program standard. This allowance has foundationally shaken the integrity of the organic seal, and the USDA has taken a major step backward.

In the year ahead, a significant number of consumers are going to become soil allies, especially young people.

JP Tournoy
CEO of Ciranda

Inflation will have a real impact on the purchasing power of consumers, which could moderate growth in 2022 by reducing trial and use of organic foods. Supply chain challenges, on the other hand, will pressure smaller producers who rely on export markets as a source of income and growth. As a result, it will be critical for brands to source from companies that maintain strong relationships with their producers in order to maintain supply.

The good news is that the fundamentals supporting organic remain stronger than ever, especially with Millennials who have an affinity for both personal wellness and planetary health. To that end, 2022 will be about transparency throughout the entire supply chain — to ensure the authenticity of organic foods, to understand its role in human rights and to measure its impact on areas of growing concern, such as soil health.

Rodrigo Bedoya
Co-Founder of La Grama

Organic ingredients with immunity-boosting qualities are here to stay and will continue to grow.

With organic expanding beyond a niche market, a business model based on high production and low costs has taken too much out of the organic industry, diluting its integrity and making it a victim of its own success. That will lead to the growth of stricter certifications that sit on top of USDA organic, such as Biodynamic or Regenerative Organic Certified.

In the year ahead, more voices will also be talking about true cost accounting and the positive cost of real organic food. Lastly, as the global transportation crisis continues to disrupt supply chains, it will be vital for organic companies to have very skilled people in logistics.

With gratitude, Max Goldberg, Founder