Leaders from three large-scale farming operations voiced optimism for the future of organic production, even as inflation, labor woes and other challenges continue to confront producers.

In the final keynote session during the sixth annual Organic Grower Summit in Monterey, Calif., Nishan Moutafian of Driscoll’s, Taylor Farms’ Joe Pezzini and Live Oak Farms’ Briana Giampaoli said they were encouraged by the overall growth in the organic sector.

“This category is going to grow based on consumer demand, but it’s really going to grow based on grower investment,” said Moutafian, Driscoll’s vice president of production. “The cost of labor keeps going up, there’s weather volatility, pest pressure and disease, and we have to find ways to mitigate these issues.”

Pezzini, Taylor Farms’ senior director of ag operations, said the industry is still learning as it expands. After a fire destroyed part of Taylor’s processing facility in Salinas, Calif., last year, the company began relying more on production in the desert regions of California and Arizona, and had to deal with new challenges such as heat.

“We have to have production all the time” to meet consumer demand, Pezzini said. “We produce in lots of different areas … We’re selling product to consumers big and small, and we want to continue the supply.”

Meanwhile, rising production costs have caused more growers to rely on contract pricing with retailers, said Giampaoli, Live Oak Farms’ organic category manager. She said it’s sometimes challenging to find a price point that provides a good return for growers while still remaining affordable for consumers, and noted that value-added products have the most potential for success.

“The grower might have to be comfortable operating at a loss in the first go-round to develop the program with their retail partners,” she said. “Then in year two, as they increase efficiencies and sales, they can develop their value-added product.”

The panel discussion, which was moderated by Western Growers’ Walt Duflock, capped off the two-day summit Nov. 29-30 at the Hyatt Regency Monterey Hotel and Spa. The summit was sponsored by the Organic Produce Network and Western Growers.

Organic sales explode

The discussion comes as organic food sales in the U.S. in 2022 broke through the $60 billion barrier for the first time, with total organic sales reaching a record $67.6 billion, according to an industry survey by the Organic Trade Association. That’s nearly double the $34.6 billion in sales recorded in 2013.

The organic market grew despite challenging headwinds: inflation tightening consumer spending, supply chain disruptions, a proliferation of competing food labels and a labor shortage, according to the report. Organic produce held its position as the top seller of all organic categories, with sales totaling $22 billion, the OTA reported.

Panelists at the growers’ summit said it’s important for the industry to invest in innovations to meet challenges, including pressure from California and other governments to move away from chemical treatments. To that end, Platform10 emerged from the 2023 Salinas Biological Summit as a way to plan for the rapidly emerging landscape for biological products.

The industry-supported program is conducting global field trials, targeting specific crops and the impact of diseases and pests. The first set of trials are focused on California.

The grower roundtable highlighted a robust educational program for OGS 2023, which included eight educational sessions and a Grower of the Year presentation to Rod Braga, president and CEO of the Soledad, Calif.-based Braga Fresh. A third-generation grower, Braga leads an organization that features multiple large-scale growing, processing and shipping locations in California.

Organizers say Braga was selected based on his ongoing commitment to excellence in organic production, organic industry leadership, and innovation. He is a board member for Western Growers and a former board member for the Grower-Shipper Association of Central California.