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Supply Chain Management of Locally-Grown Organic Food: A Leap Toward 
Sustainable Development 
Demand for organic food is growing at a much faster rate than ever before, but not without numerous operational challenges. Farmers, retailers and food processor manufacturers are thus looking to streamline their supply chains while addressing ever-expanding market requirements. 
Executive Summary 
Burgeoning consumer interest in healthy cuisine has not only revolutionized the organic food industry, but it has opened myriad new markets. Beginning life as a niche market with a small consumer base, addressed by a limited number of retailers, organic products are now a preferred choice of many quality-conscious domestic shoppers. 
With food expenditure growing about 7.67% from 2010 through 2012, the demand for organic food through the retail sales medium is anticipated to increase consumer food expenditure.1 Produce enters the market primarily through supermarkets and grocery stores, after it originates from large farms in the U.S., Mexico and South America. However, there are numerous small farms that are certified organic and also sell their produce in local markets such as farmers markets and restaurants. 
This white paper highlights the challenges associated with the organic food supply chain and outlines business improvement opportunities in 
this fast-growing market. To start things off, let’s explore the difference between conventional and organic food. 
The Evolution of Organic Farming 
The food that our ancestors consumed for thousands of years was grown with virtually no artificial chemicals. Natural methods and nature itself assisted farmers in maintaining soil fertility. 
However, to address the needs of an increasing population, artificial fertilizers and pesticides were used starting in the 1920s to increase crop production. Later, genetically modified seeds (or genetically modified organisms — GMOs) were developed to increase resistance to weather, pests and soil conditions. The results of using such chemicals and GMO seeds were remarkable. The total area of cultivated land worldwide increased 466% from 1700 through 1980; yields increased dramatically, due primarily to selectively-bred, high-yielding varieties, fertilizers, pesticides, irrigation and machinery.2 However, over the course of decades, the negative impact of such farming practices — called conventional farming — 
cognizant 20-20 insights | august 2014 
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Figure 1 
The Organic Food Lifecycle 
Sustainable 
Local Food 
System 
Resource/Waste Recovery Production Processing 
Consumption Access Distribution 
has far exceeded its positive results. Apart from 
degraded soil, resistant pests, expensive cleanups, 
rampant human diseases, water contamination 
and dead zones in the ocean are thought to have 
resulted from conventional farming. 
Fortunately, as organics have become more 
mainstream, more farmers are learning about 
the environmental and economic impact of their 
conventional methods. Some are even making the 
switch to organic farming. 
In the U.S., depending on whose definition is used, 
crops that are raised without using synthetic 
pesticides, synthetic fertilizers or sewage sludge 
fertilizer — and which have not been altered by 
genetic engineering — are generally referred 
to as “organic crops.”3 Similarly, organic animal 
products come from animals that have been fed 
100% organic feed and raised without the use of 
growth hormones or antibiotics in an environ-ment 
where they have access to the outdoors. 
While there are variations between what qualifies 
as organic from country to country, the concepts 
are fairly standard. 
According to the USDA, organic farms and 
processors: 
• Preserve natural resources and biodiversity. 
• Support animal health and welfare. 
• Provide access to the outdoors so that animals 
can exercise their natural behaviors. 
• Only use approved materials. 
• Do not use genetically modified ingredients. 
• Receive annual onsite inspections. 
• Separate organic food from nonorganic food. 
Why Organic? 
Among the myriad reasons (summarized below) 
for growth in organic farming practices, the 
primary one is the move toward a sustainable 
local food system (see Figure 1). 
Per the USDA, the rationale is manifold:4 
• For health: Scientific evidence shows there are 
no significant differences between “organic” 
and “conventional” crops in terms of taste and 
nutrition. 
Although organic agriculture regulates how 
food is grown and processed, it does not 
guarantee nutritional content or pesticide levels 
in the food. Pesticides show up throughout our 
environment: in rain and snow, soils, Antarctic 
glaciers, etc. Even the most carefully managed 
organic crop could contain traces of pesticides 
or genetically engineered cells. 
However, scientific studies show that organic 
foods contain much lower concentrations of 
pesticides than conventionally grown foods. 
Organic foods must meet all the health and 
safety requirements of conventional food, 
and have some additional safety standards of
cognizant 20-20 insights 3 
Source: Data Monitor 
Figure 2 
United States Organic Food Market Value & Value Forecast 
0 
10 
20 
30 
40 
50 
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 
 $ Billion 
 Percent Growth 
their own, such as more stringent regulation 
of manure use. Thus, there is good reason to 
believe that organic agriculture may lower 
certain health risks. 
• For the environment: Organic standards focus 
primarily on environmental issues. Although 
they cannot eliminate environmental impacts, 
they seek to minimize the likelihood of water 
pollution, to build soil quality and to enhance 
biodiversity. 
• For economic reasons: Organic food usually 
costs more than conventional food. While the 
price of organic food is a deterrent to many 
consumers, for most farmers the high prices of 
organic commodities are very attractive. 
• For other social and ethical reasons: Many 
consumers and farmers think that organic 
agriculture does a better job of supporting 
small and family farms. Areas with numerous 
small- and medium-sized farms tend to have 
more stable and prosperous communities than 
rural areas dominated by very large farms. 
Some people favor organic agriculture’s con-sideration 
of animal welfare. Although organic 
agriculture has historically been practiced by 
small and medium farms, the standards do not 
address farm size; as the organic market has 
grown, so has the percentage of large organic 
farms. 
Organic Food: Market Trends 
Figure 2 illustrates the healthy growth in the U.S. 
market for organic products. And internationally, 
the latest research from Organic Monitor (OM)5 
finds worldwide sales of organic food and drink 
approached $35 billion in 2012. According to 
OM, growth is occurring in all regions; however, 
demand for organic products is mainly in North 
America and Europe. Organic product sales are 
projected to rise in the coming years. 
According to the 2013 statistics published by 
Research Institute of Organic Agriculture (FiBl)6 
and International Federation of Organic Agricul-ture 
Movement (IFAOM),7 the countries with the 
largest organic markets in 2012 were the U.S., 
Germany and France. These statistics further 
state that the largest single market was the 
U.S. (approximately 44% of the global market), 
followed by the European Union (approximately 
41%). The highest per-capita consumption was 
in Switzerland, Denmark and Luxembourg. The 
highest market shares were reached in Denmark, 
Switzerland and Austria. 
Other vital attributes of the organic food market 
include: 
• Alternative food systems: Organic food 
grown on large machine scale (over 500 
acres), referred to as the “industrial organics,” 
originate from undiversified farms for large
cognizant 20-20 insights 4 
corporations. These farms tend to have large 
fields of a single crop or to raise only livestock. 
They generally sell wholesale, and almost nev-er 
directly to the customer. Industrial organics 
are always certified. The customer, in almost 
all cases, never talks to the grower(s) from 
these farms. 
Recently, it has been observed that consumers 
of food from industrial organics have limited 
knowledge about their source of food, causing 
concern among consumers. These concerns 
are directly related to economic, environmental 
and social ideals such as production systems, 
size of the operations, distribution systems and 
channels and capital intensity. 
This trend has given rise to the popularity alter-native 
food systems (AFS). AFS (depicted as 
“Others” in Figure 3) are perceived as sustain-able 
and economically, socially and environ-mentally 
more viable than standard systems. 
The slow food movement,8 box delivery and 
local farmers markets are good examples of 
innovative food systems that are based on 
low-carbon food distribution systems. 
• Market segmentation: The market segments 
for organic food are expanding and can be 
classified into seven categories, according to 
popular 2013 Chicago IRI9 research. However, 
the two shopper segments that account for 
about half of the natural and organic sales 
are termed True Believers and Enlightened 
Environmentalists. The former believe in the 
benefits of natural products for themselves 
and their families, and the latter care about 
protecting the environment. Currently, these 
consumers constitute a large portion of organic 
food buyers. But retailers and supermarkets 
must pay attention, since the organic grocery 
space is set for a dramatic growth in the food 
industry.10 
• Future growth: According to The United States 
Organic Food Market Forecast  Opportunities, 
2018,11 the greatest demand for organic food is 
generated from the U.S. residential sector. The 
growth forecast for the organic food market of 
the U.S. is at a compound annual growth rate 
of about 14% from 2013 through 2018. Also, 
organic fruits and vegetables will continue to 
dominate the market through 2018. As organic 
food market revenues expand, the demand 
for organic meat, fish, poultry, etc. will gain 
market share. Further, according to forecasts, 
the education and restaurant sectors will also 
contribute substantially to the organic food 
market, due to rising awareness of the benefits 
of organic food. 
Source: http://archive.peruthisweek.com/blogs/business/pag/34 
Figure 3 
Points of Sale of Fresh Organic Products in the Unites States 
10% 
41% 
Natural Food 
Stores 
Mass 
Market 
Others 
49%
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The 2014 Farm Bill12 highlights the steps taken by 
the government to promote organic farming. This 
is good news for the food retail industry as well. 
According to the USDA, this bill will: 
• Provide $72.5 million annually for the Specialty 
Crop Block Grant (SCBG) Program. 
• Provide new resources for organic farmers, 
including funding the Organic Cost Share 
Program at $11.5 million annually. 
• Increase funding for pest and disease 
management and disaster prevention to $62.5 
million per year, and $75 million in FY 2018 and 
beyond. 
• Rename FMPP to “Farmers Market and Local 
Food Promotion Program” and provide $30 
million annually. 
• Continue to reserve funds in the business and 
industry loan program for locally- and regional-ly- 
focused businesses. 
• Advance growth of local and regional food 
systems with $65 million for Value-Added 
Product Market Development Grants. 
Food Supply Chain Challenges 
Challenges across the supply chain are not nec-essarily 
exclusive to organic food. Conventional 
food also is affected by factors such as problems 
with the supply chain or inventory management. 
Organic farming, however, has unique challenges 
related to the cost and logistics of moving locally 
or regionally produced organic produce to the 
market. 
The concept of food mileage (see Figure 5, next 
page), which refers to the distance food is trans-ported 
from the time of its production until it 
reaches the consumer, gains prime importance in 
the case of organic food. The situation of small 
and medium farms is also to be noted. Currently, 
the production of produce in small to medium 
farms is rather limited, amounting to a few 
hundred tons. Such farms are not very lucrative 
for mainstream grocery chains. Further, many 
buyers seem to be ambivalent about channels of 
distribution. 
For some buyers, on the other hand, trust is the 
vital component for deciding whether to buy 
organic food products via a particular avenue. In 
fact, often consumers are not convinced about 
the value of buying organic food. Consumer 
consumption decisions regarding organic food 
products could, however, be hugely impacted by 
food mileage, price and the certification process. 
Lastly, there is a large knowledge gap spanning 
the marketing system in place, the value chain 
(i.e., activities that a firm performs to deliver a 
valuable product or service for the market) and 
the value delivery network (i.e., supply chain 
network) in the organic food system. 
Source: http://sustainablog.org/files/2011/08/Organic-Percent-Trend.jpg. 
Figure 4 
Organics on the Rise 
0 
0.5 
1.0 
1.5 
2.0 
2.5 
3.0 
2000 1900 
Projected Trend to 2050 
Percent of Total Cropland Acres 
2010 2020 2030 2040 2050
cognizant 20-20 insights 6 
Food Miles for Popular Foods 
California 
Oranges 
5,000 miles 
West Indies 
Bananas 
4,000 miles 
Argentina 
Beef 
7,000 miles 
Spain 
Tomatoes 
1,000 miles 
Central Africa 
Cocoa Beans 
3,000 miles 
New Zealand 
Lamb 
11,000 miles 
Source: www.parkfieldict.co.uk/infant/environment/miles.jpg. 
Figure 5 
Key organic food supply chain challenges include: 
• Food origin and mileage: In the past decade, 
the country of origin of the food and food 
mileage are becoming increasingly important. 
Maintaining supply volumes and supply 
continuity are major concerns for most food 
companies. Thus, investing in developing 
countries is viewed as a way to lock in supply. In 
Canada, imported organic products represent 
CA$252 million, of which 74% comes from the 
U.S., Chile, Mexico, China and Italy. The origin 
of organic food possesses both predictive and 
confidence values. It helps consumers evaluate 
food origin and infer whether it offers desired 
qualities, has credible production control and 
carries legitimate certification. Further, organic 
food import also highlights the issue of food 
mileage, and is linked to agricultural sustain-ability, 
as “organic food imports” do not match 
with local food production, freshness and 
community cohesion. 
• Size of farms and collaboration: The majority 
of organic farms are small, privately-owned, 
family enterprises. Whether they are small 
plots in an emerging country providing food to 
a handful of citizens or larger-acreage plots in 
North America and Europe, these independent 
operations often struggle with economic scale. 
This challenge is particularly evident in sectors 
such as dairy, pigs, fruit and vegetables, where 
scale and linkage with primary processing is 
critical. 
Further, organic food requires more resources, 
particularly human resources, during 
production. Farming is a capital-intensive 
business, and productivity is enhanced with 
investment in new equipment. Similarly, 
marketing channels are more difficult to access 
for smaller producers. 
Better collaboration of the various participants 
in the food value chain with farmers can help 
alleviate this problem. 
• Conversion takes time: Unfortunately, even 
when a farm decides to convert to organic, 
the transition isn’t simple or instantaneous. It 
varies slightly depending on the certification 
agency, but typically farms must: 
Learn new farming methods and processes. 
Farm organically on the previously conven-tional 
soil for at least three years (aka the 
transition period). 
Have periodic, comprehensive inspections 
by third-party agencies. 
Register with applicable county, state or na-tional 
offices. 
Submit fees ranging from five hundred to 
several thousand dollars depending on the 
size of the farm. 
After a farm has been certified organic, it 
requires ongoing inspections from a third party 
to ensure its land and produce continues to 
meet organic standards.
cognizant 20-20 insights 7 
Farmer Market 
Market 
Market 
Farmer 
Farmer 
Farmer Farmer 
Supply Processing 
Aggregation 
and 
Distribution 
Market 
Demand 
Moving food with value and values 
Figure 6 
What is a Value Chain? 
Better risk 
management and 
streamlining of 
the supply chain 
can help assure 
farmers of their 
profits and increase 
their willingness to 
trade with the large 
retailers. 
• Market volatility: Fresh produce markets are 
above all characterized by perishable products, 
seasonal production and a strong dependence 
of supply on climatic conditions. These charac-teristics 
entail high degrees of uncertainty and 
risk about market prices and quantities, which 
has traditionally deterred local farmers from 
negotiating contracts in the produce trade. 
However, better risk management and stream-lining 
of the supply chain can help assure 
farmers of their profits and increase their 
willingness to trade with the large retailers. 
These long-term contracts with retailers will 
also enhance farmers’ ability to obtain working 
capital financing, which has traditionally been 
a challenge for small farmers. By signing 
contracts with big-box retailers, farmers gain 
security that they can present to the banks 
to gain more favorable terms for loans and 
financial aid for investing in capital equipment. 
• Integrating the food value chain: To date, 
the food supply chain has shown itself to be 
remarkably adaptive to evolving consumer 
demands (see Figure 6). With the increasing 
popularity of organic food, however, success 
will require adapting to changing demo-graphics 
and consumer preferences, as well 
as managing in an increasingly global and 
complex business environment. This requires 
collaboration in several areas: 
Progressive farmers are investing in crop 
field trials and breeding programs either 
individually or collectively through agree-ments 
and producers associations and coop-eratives. 
These farmers need to collaborate 
with other members of the value chain. In 
addition to sharing consumer information 
and preferences, these farmers 
need to better collaborate with 
manufacturers of organic fertil-izers 
and pesticides. 
Food processors are extremely 
important members of the food 
value chain that will need to 
support the expected demand 
of organic food. To do this, they 
will require significant changes 
to product lines, distribution 
channels and supply chains. 
Leading global producers are 
already working to address new 
consumer demands, globally 
diverse diets and calls for sustainable sup-ply 
chains and manufacturing processes. 
However, collaboration throughout the value 
chain is extremely important to this group, 
as the manufacturing of food — the central 
activity of the value chain — requires both 
up- and downstream collaboration. 
Food and product safety (FPS) has become 
a critical area of concern for companies. New 
regulatory requirements, increased supply 
chain complexities and ongoing scientific 
developments present many challenges and 
opportunities. Leading companies are in-vesting 
in securing their supply chain, devel-oping 
plans to manage recalls and enhanc-ing 
product labeling and traceability. They 
are building compliance systems to ensure 
they are in accordance with all regulatory
cognizant 20-20 insights 8 
regimes where their products are consumed. 
Such systems include regular verification 
procedures to ensure ongoing compliance. 
Systems are also improving supply chain 
transparency through track and trace tech-nologies. 
Once again, extensive collabora-tion 
and cooperation between the various 
elements of the value chain is necessary to 
ensure these systems operate effectively. 
• E-commerce: For online grocery shopping 
to grow, the costs of home delivery must be 
reduced, the delivery window must be small and 
punctual and neighborhood pickup points and/ 
or in-store pickup activities must be expanded. 
Retailers will need to cooperate closely with 
others along the value chain to fulfil consumer 
needs through joint efforts for warehouse 
operations, including inventory management, 
order management and fulfilment, creating and 
operating online stores and providing home 
delivery. To accommodate these requirements 
and create new value for consumers, both 
vertical and horizontal collaboration and con-solidation 
will be needed. In the coming years, 
retailers must invest in innovative technologies 
to meet the changing needs of consumers who 
expect not only to purchase products at any 
time and from any location, but to also have 
full pricing and product transparency before 
making their decisions. For example, to improve 
warehouse operations, grocers could install 
more efficient automated storage and retrieval 
systems in their warehouses, or deploy better 
order management systems. 
Looking Ahead 
The following recommendations are critical for 
enhancing the entire organic foods value chain. 
• Accountability and traceability: It is interest-ing 
to note that the consumption of organic food 
seems to be directly linked to consumer values 
and trust orientations. Two major trends in 
consumption deserve special mention: regular 
organic food consumers using standard distri-bution 
channels (supermarkets), and hardcore 
consumers adopting alternative channels. The 
trends, described above, are omnipresent in 
organic food distribution. 
Direct channels (such as farmers markets) 
address consumers that want to interact 
with the producers and inquire about their 
production methods. This avenue satisfies 
consumer curiosity about food origin and 
their desire for some additional food handling 
and cooking tips. The conventional distribu-tion 
channels, as we know, are characterized 
by longer channels, where consumers do not 
feel connected with producers and where the 
consumers have limited knowledge of the origin 
of their food. By ensuring better tracking and 
traceability of organic produce, food retailers 
can build trust among consumers. As a result, 
consumers buying from the big box retailers will 
have as much visibility into the origin of their 
food as those buying from farmers markets. 
So how do grocery shoppers examine produce 
or meat items and trace their sources? Apart 
from the traditional bar-code and radio 
frequency identification (RFID) technologies, 
which have been widely adopted to improve 
tracking and traceability of food items, other 
related technologies have emerged recently. 
For example, a system called HarvestMark, 
developed by YottaMark, is a specialized tool 
for tracking and authenticating products. The 
HarvestMark is a code printed on the label of a 
product. The code can be scanned by a shopper 
with an iPhone or Android smartphone, and 
data is then immediately available showing 
the grower, growing methods used and other 
pertinent product information. In the case of 
animal products, the methods employed in 
raising and feeding can be checked. 
Another popular technology not widely 
known about in this context is speech recogni-tion. 
Practically any application can be easily 
modified to accept speech input because of 
the recent development of terminal emulation-based 
speech recognition technology. Speech 
Note: Percentages are as of early 2014. 
Figure 7 
Organic Producers by Region 
Oceania 
1% 
Asia 
35% 
Latin 
America 
16% 
Europe 
17% 
U.S. 
30% 
North 
America 
1%
cognizant 20-20 insights 9 
Quick Facts 
• A new ozone-based technology, called 
Purfresh (www.purfresh.com), can help 
minimize decay, control ripening and 
enhance food safety without the use of 
chemicals, making it an ideal solution 
for organic food. We can guide clients 
through the steps to integrate this USDA-and 
FDA-approved system with their 
current transportation systems. 
• These days, improved optics allow 
2D bar codes on paper to be read at 
greater distances (over 50 feet) than 
1D bar codes. This helps companies to 
implement real time data access systems 
for their delivery drivers, sales and 
service staffing inspectors and other 
personnel. 
recognition has been implemented widely for 
various warehousing functions such as picking, 
put-away, replenishment and shipping to 
increase efficiency and productivity. 
• Minimizing lead time from farm to shelf: 
Sometimes, retailers store produce in their 
food warehouses for as long as 12 days, on top 
of which is the transit time from the distribu-tion 
center to the store. In the case of alterna-tive 
food systems, this step is greatly reduced 
(e.g., box delivery) or even eliminated (e.g., 
farmers markets). Based on our survey of local 
farms (see Appendix), it takes less than 48 
hours (from the time the crop is harvested) for 
the farmers to sell their produce to customers 
and about seven days for some of the efficient 
food co-ops to do the same. 
• For a retailer to minimize the lead time 
from farm to shelf and thereby increase the 
shelf life of fresh food, a holistic approach is 
required to revamp warehouse management, 
order management and transportation 
management. We can help assess potential 
areas of rework for a retailer and further assist 
in the implementation of integrated automated 
storage/retrieval systems, automatic identi-fication 
products, conveyors, order-picking 
systems, RFID, sortation equipment and 
software and systems integrations. 
• Streamlining logistics to minimize food 
mileage: With the increasing emphasis on sus-tainability, 
a large number of food retail giants 
are conscious of the miles their food travels 
before reaching the customer. Food miles is a 
major factor used to assess the environmental 
impact of food, including the impact on global 
warming. By promising to improve the logistics 
associated with their food network, these com-panies 
can exercise corporate social responsi-bility 
for creating a greener environment. 
• Airline food industry’s green field: Apart 
from chain restaurants and the regular retail 
industry, one particular industry that needs a 
special mention is airline food. In-flight catering 
represents an important multi-billion-dollar 
segment of the aviation industry today. Due 
to the problems with quality control, ground 
transportation and timeliness of food service 
subcontracted from hotels and restaurants, 
more airlines are moving toward creating air-port- 
based flight kitchens around the country. 
Serving quality food in-flight is a logistical 
challenge. With the increasing popularity 
of fresh and local food, obtaining supplies 
for airport kitchens, some of which are in 
remote areas, is proving to be a challenge. 
Further, if the number or variety of meals 
needed is inaccurately calculated, customer 
dissatisfaction ensues. Research shows that 
the airlines’ focus on local and organic ingre-dients 
will rise significantly in coming years. 
To better serve the flourishing demand for 
locally-grown, organic food, it is imperative that 
industry giants such as big retailers, chain res-taurants 
and the airline food industry look to 
restructure their existing supply chain models. To 
achieve this, their first step should be to improve 
collaboration with local farmers and involve 
them in the planning of their value chain delivery 
networks. The planning itself must begin with the 
redesign of their transport networks, from farms 
to consumers, since food miles is a primary factor 
in the determination of the freshness of food, 
carbon emissions and the cost of delivery.
cognizant 20-20 insights 10 
Appendix 
Survey Methodology 
We surveyed local farms, natural food co-ops and farmers markets in California and Minnesota wherein 
the author visited organic farms and interviewed the farmers. The questions asked were as follows: 
• Did you start off as an organic farm? If not, how long did it take to convert to organic farming? 
• What services/products do you provide? 
• What are your motivations for running an organic farm? 
• Do you feel satisfied with the profit you make? 
• Which is your biggest challenge as an organic farmer? 
• Is handling of organic food a real issue? What is the shelf life of ready-to-eat produce? 
• How do you ensure the health of the soil? Is there an additional dependency on the weather? 
• How do you transport your produce to the market/destination? 
• Is it true that yields are lower as compared to conventional produce? Do you believe organic farming 
is at least as profitable as conventional farming? 
• Could you elaborate on the intermediate steps involved in the distribution of your produce from the 
farm to consumers? 
• Any other valuable insights that you would like to share with us? 
The inputs from these farmers helped shape the content of this paper. 
References 
• www.ers.usda.gov/amber-waves/2013-october/growth-patterns-in-the-us-organic-industry.aspx#. 
• www.prweb.com/releases/2013/12/prweb11399512.htm. 
• http://cdn.intechopen.com/pdfs-wm/25733.pdf. 
• www.intechopen.com/download/get/type/pdfs/id/25733. 
• www.ibtimes.com/heres-who-eats-natural-organic-foods-why-market-research-1437858. 
• www.deloitte.com/assets/Dcom-MiddleEast/Local%20Assets/Documents/Industries/Consumer%20 
Business/me_cb_food-value-chain.pdf. 
• http://web.mit.edu/edmund_w/www/Agribusiness,%206-7-02.pdf. 
• www.ethicalcorp.com/supply-chains/organic-food-%E2%80%93-what- 
%E2%80%98organic%E2%80%99-label-really-worth. 
• http://www.triplepundit.com/2011/02/organic-farmers-technology-software-it/. 
• www.usda.gov/documents/usda-2014-farm-bill-highlights.pdf. 
• “The World of Organic Agriculture: Statistics and Emerging Trends 2014,” FiBL and IFOAM. 
• The Business of Food: Encyclopedia of the Food and Drink Industries, edited by Gary Allen and Ken 
Albala, Greenwood Press, London, 2007. 
• Documentary: Food Inc., narrated by food writer Michael Pollan and Fast Food Nation author Eric 
Schlosser. 
• Documentary: Fed Up, narrated by Katie Couric and Laurie David, and directed by Stephanie Soechtig. 
• Key topics and highlights of the 2014 MOSES Organic Farming Conference held in Wisconsin: 
Theresa Podoll and David Podoll shared insights of their two families’ farms in Fullerton ND. 
Activist and author Anna Lappé informed farmers that organic farming is “climate-smart farming.” 
Permaculture guru Mark Shepard (restoration agriculture) explained how farmers can work with 
nature to transform their farms into systems that produce food sustainably and involve less work.
About Cognizant 
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process outsourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 75 development and delivery centers worldwide and approximately 178,600 employees as of March 31, 2014, Cognizant is a member of the NASDAQ-100, the SP 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant. 
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© C 
opyright 2014, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. 
About the Author 
Priyanka Aggarwal is a Retail Consultant within Cognizant Business Consulting. Previously, Priyanka worked at other supply chain companies, and has developed expertise in implementing cloud-based warehouse management solutions. She received her master’s degree in industrial engineering from Georgia Institute of Technology. Priyanka can be reached at Priyanka.Aggarwal@cognizant.com. 
Footnotes 
1 According to a 2013 research report by TechSci Research. In fact, U.S. consumers generate the highest demand for organic food in the world, with about 81% of American families reportedly purchasing organic food at least once a year, according to 2012 estimates from the Organic Trade Association. 
2 http://en.wikipedia.org/wiki/Selective_breeding. 
3 http://en.wikipedia.org/wiki/Operational_definition. 
4 www.usda.gov/wps/portal/usda/usdahome. 
5 Organic Monitor is a specialist research, consulting and training company that focuses on global sustainable product industries, www.organicmonitor.com. 
6 German: Forschungsinstitut für Biologischen Landbau (FiBL) is an independent, nonprofit research institute with the aim of advancing cutting-edge science in the field of organic agriculture. 
7 The World of Organic Agriculture, Statistics and Emerging Trends 2013, published by FiBL and IFOAM. 
8 Slow food is an international movement founded by Carlo Petrini in 1986. Promoted as an alternative to fast food, it strives to preserve traditional and regional cuisine, and it encourages the farming of plants, seeds and livestock characteristic of the local ecosystem. 
9 IRI, formerly Symphony IRI Group, is a market research company that provides clients with consumer, shopper and retail market intelligence and analysis focused on the consumer packaged goods (CPG) industry. 
10 Organic chain Sprouts Farmers Market Inc. (NASDAQ:SFM) experienced a blockbuster $344 million IPO in August 2013. 
11 “Research and Markets, The United States Organic Food Market Forecast  Opportunities,” TechSci Research, November 2013.

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Streamlining Organic Food Supply Chains

  • 1. Supply Chain Management of Locally-Grown Organic Food: A Leap Toward Sustainable Development Demand for organic food is growing at a much faster rate than ever before, but not without numerous operational challenges. Farmers, retailers and food processor manufacturers are thus looking to streamline their supply chains while addressing ever-expanding market requirements. Executive Summary Burgeoning consumer interest in healthy cuisine has not only revolutionized the organic food industry, but it has opened myriad new markets. Beginning life as a niche market with a small consumer base, addressed by a limited number of retailers, organic products are now a preferred choice of many quality-conscious domestic shoppers. With food expenditure growing about 7.67% from 2010 through 2012, the demand for organic food through the retail sales medium is anticipated to increase consumer food expenditure.1 Produce enters the market primarily through supermarkets and grocery stores, after it originates from large farms in the U.S., Mexico and South America. However, there are numerous small farms that are certified organic and also sell their produce in local markets such as farmers markets and restaurants. This white paper highlights the challenges associated with the organic food supply chain and outlines business improvement opportunities in this fast-growing market. To start things off, let’s explore the difference between conventional and organic food. The Evolution of Organic Farming The food that our ancestors consumed for thousands of years was grown with virtually no artificial chemicals. Natural methods and nature itself assisted farmers in maintaining soil fertility. However, to address the needs of an increasing population, artificial fertilizers and pesticides were used starting in the 1920s to increase crop production. Later, genetically modified seeds (or genetically modified organisms — GMOs) were developed to increase resistance to weather, pests and soil conditions. The results of using such chemicals and GMO seeds were remarkable. The total area of cultivated land worldwide increased 466% from 1700 through 1980; yields increased dramatically, due primarily to selectively-bred, high-yielding varieties, fertilizers, pesticides, irrigation and machinery.2 However, over the course of decades, the negative impact of such farming practices — called conventional farming — cognizant 20-20 insights | august 2014 • Cognizant 20-20 Insights
  • 2. cognizant 20-20 insights 2 Figure 1 The Organic Food Lifecycle Sustainable Local Food System Resource/Waste Recovery Production Processing Consumption Access Distribution has far exceeded its positive results. Apart from degraded soil, resistant pests, expensive cleanups, rampant human diseases, water contamination and dead zones in the ocean are thought to have resulted from conventional farming. Fortunately, as organics have become more mainstream, more farmers are learning about the environmental and economic impact of their conventional methods. Some are even making the switch to organic farming. In the U.S., depending on whose definition is used, crops that are raised without using synthetic pesticides, synthetic fertilizers or sewage sludge fertilizer — and which have not been altered by genetic engineering — are generally referred to as “organic crops.”3 Similarly, organic animal products come from animals that have been fed 100% organic feed and raised without the use of growth hormones or antibiotics in an environ-ment where they have access to the outdoors. While there are variations between what qualifies as organic from country to country, the concepts are fairly standard. According to the USDA, organic farms and processors: • Preserve natural resources and biodiversity. • Support animal health and welfare. • Provide access to the outdoors so that animals can exercise their natural behaviors. • Only use approved materials. • Do not use genetically modified ingredients. • Receive annual onsite inspections. • Separate organic food from nonorganic food. Why Organic? Among the myriad reasons (summarized below) for growth in organic farming practices, the primary one is the move toward a sustainable local food system (see Figure 1). Per the USDA, the rationale is manifold:4 • For health: Scientific evidence shows there are no significant differences between “organic” and “conventional” crops in terms of taste and nutrition. Although organic agriculture regulates how food is grown and processed, it does not guarantee nutritional content or pesticide levels in the food. Pesticides show up throughout our environment: in rain and snow, soils, Antarctic glaciers, etc. Even the most carefully managed organic crop could contain traces of pesticides or genetically engineered cells. However, scientific studies show that organic foods contain much lower concentrations of pesticides than conventionally grown foods. Organic foods must meet all the health and safety requirements of conventional food, and have some additional safety standards of
  • 3. cognizant 20-20 insights 3 Source: Data Monitor Figure 2 United States Organic Food Market Value & Value Forecast 0 10 20 30 40 50 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $ Billion Percent Growth their own, such as more stringent regulation of manure use. Thus, there is good reason to believe that organic agriculture may lower certain health risks. • For the environment: Organic standards focus primarily on environmental issues. Although they cannot eliminate environmental impacts, they seek to minimize the likelihood of water pollution, to build soil quality and to enhance biodiversity. • For economic reasons: Organic food usually costs more than conventional food. While the price of organic food is a deterrent to many consumers, for most farmers the high prices of organic commodities are very attractive. • For other social and ethical reasons: Many consumers and farmers think that organic agriculture does a better job of supporting small and family farms. Areas with numerous small- and medium-sized farms tend to have more stable and prosperous communities than rural areas dominated by very large farms. Some people favor organic agriculture’s con-sideration of animal welfare. Although organic agriculture has historically been practiced by small and medium farms, the standards do not address farm size; as the organic market has grown, so has the percentage of large organic farms. Organic Food: Market Trends Figure 2 illustrates the healthy growth in the U.S. market for organic products. And internationally, the latest research from Organic Monitor (OM)5 finds worldwide sales of organic food and drink approached $35 billion in 2012. According to OM, growth is occurring in all regions; however, demand for organic products is mainly in North America and Europe. Organic product sales are projected to rise in the coming years. According to the 2013 statistics published by Research Institute of Organic Agriculture (FiBl)6 and International Federation of Organic Agricul-ture Movement (IFAOM),7 the countries with the largest organic markets in 2012 were the U.S., Germany and France. These statistics further state that the largest single market was the U.S. (approximately 44% of the global market), followed by the European Union (approximately 41%). The highest per-capita consumption was in Switzerland, Denmark and Luxembourg. The highest market shares were reached in Denmark, Switzerland and Austria. Other vital attributes of the organic food market include: • Alternative food systems: Organic food grown on large machine scale (over 500 acres), referred to as the “industrial organics,” originate from undiversified farms for large
  • 4. cognizant 20-20 insights 4 corporations. These farms tend to have large fields of a single crop or to raise only livestock. They generally sell wholesale, and almost nev-er directly to the customer. Industrial organics are always certified. The customer, in almost all cases, never talks to the grower(s) from these farms. Recently, it has been observed that consumers of food from industrial organics have limited knowledge about their source of food, causing concern among consumers. These concerns are directly related to economic, environmental and social ideals such as production systems, size of the operations, distribution systems and channels and capital intensity. This trend has given rise to the popularity alter-native food systems (AFS). AFS (depicted as “Others” in Figure 3) are perceived as sustain-able and economically, socially and environ-mentally more viable than standard systems. The slow food movement,8 box delivery and local farmers markets are good examples of innovative food systems that are based on low-carbon food distribution systems. • Market segmentation: The market segments for organic food are expanding and can be classified into seven categories, according to popular 2013 Chicago IRI9 research. However, the two shopper segments that account for about half of the natural and organic sales are termed True Believers and Enlightened Environmentalists. The former believe in the benefits of natural products for themselves and their families, and the latter care about protecting the environment. Currently, these consumers constitute a large portion of organic food buyers. But retailers and supermarkets must pay attention, since the organic grocery space is set for a dramatic growth in the food industry.10 • Future growth: According to The United States Organic Food Market Forecast Opportunities, 2018,11 the greatest demand for organic food is generated from the U.S. residential sector. The growth forecast for the organic food market of the U.S. is at a compound annual growth rate of about 14% from 2013 through 2018. Also, organic fruits and vegetables will continue to dominate the market through 2018. As organic food market revenues expand, the demand for organic meat, fish, poultry, etc. will gain market share. Further, according to forecasts, the education and restaurant sectors will also contribute substantially to the organic food market, due to rising awareness of the benefits of organic food. Source: http://archive.peruthisweek.com/blogs/business/pag/34 Figure 3 Points of Sale of Fresh Organic Products in the Unites States 10% 41% Natural Food Stores Mass Market Others 49%
  • 5. cognizant 20-20 insights 5 The 2014 Farm Bill12 highlights the steps taken by the government to promote organic farming. This is good news for the food retail industry as well. According to the USDA, this bill will: • Provide $72.5 million annually for the Specialty Crop Block Grant (SCBG) Program. • Provide new resources for organic farmers, including funding the Organic Cost Share Program at $11.5 million annually. • Increase funding for pest and disease management and disaster prevention to $62.5 million per year, and $75 million in FY 2018 and beyond. • Rename FMPP to “Farmers Market and Local Food Promotion Program” and provide $30 million annually. • Continue to reserve funds in the business and industry loan program for locally- and regional-ly- focused businesses. • Advance growth of local and regional food systems with $65 million for Value-Added Product Market Development Grants. Food Supply Chain Challenges Challenges across the supply chain are not nec-essarily exclusive to organic food. Conventional food also is affected by factors such as problems with the supply chain or inventory management. Organic farming, however, has unique challenges related to the cost and logistics of moving locally or regionally produced organic produce to the market. The concept of food mileage (see Figure 5, next page), which refers to the distance food is trans-ported from the time of its production until it reaches the consumer, gains prime importance in the case of organic food. The situation of small and medium farms is also to be noted. Currently, the production of produce in small to medium farms is rather limited, amounting to a few hundred tons. Such farms are not very lucrative for mainstream grocery chains. Further, many buyers seem to be ambivalent about channels of distribution. For some buyers, on the other hand, trust is the vital component for deciding whether to buy organic food products via a particular avenue. In fact, often consumers are not convinced about the value of buying organic food. Consumer consumption decisions regarding organic food products could, however, be hugely impacted by food mileage, price and the certification process. Lastly, there is a large knowledge gap spanning the marketing system in place, the value chain (i.e., activities that a firm performs to deliver a valuable product or service for the market) and the value delivery network (i.e., supply chain network) in the organic food system. Source: http://sustainablog.org/files/2011/08/Organic-Percent-Trend.jpg. Figure 4 Organics on the Rise 0 0.5 1.0 1.5 2.0 2.5 3.0 2000 1900 Projected Trend to 2050 Percent of Total Cropland Acres 2010 2020 2030 2040 2050
  • 6. cognizant 20-20 insights 6 Food Miles for Popular Foods California Oranges 5,000 miles West Indies Bananas 4,000 miles Argentina Beef 7,000 miles Spain Tomatoes 1,000 miles Central Africa Cocoa Beans 3,000 miles New Zealand Lamb 11,000 miles Source: www.parkfieldict.co.uk/infant/environment/miles.jpg. Figure 5 Key organic food supply chain challenges include: • Food origin and mileage: In the past decade, the country of origin of the food and food mileage are becoming increasingly important. Maintaining supply volumes and supply continuity are major concerns for most food companies. Thus, investing in developing countries is viewed as a way to lock in supply. In Canada, imported organic products represent CA$252 million, of which 74% comes from the U.S., Chile, Mexico, China and Italy. The origin of organic food possesses both predictive and confidence values. It helps consumers evaluate food origin and infer whether it offers desired qualities, has credible production control and carries legitimate certification. Further, organic food import also highlights the issue of food mileage, and is linked to agricultural sustain-ability, as “organic food imports” do not match with local food production, freshness and community cohesion. • Size of farms and collaboration: The majority of organic farms are small, privately-owned, family enterprises. Whether they are small plots in an emerging country providing food to a handful of citizens or larger-acreage plots in North America and Europe, these independent operations often struggle with economic scale. This challenge is particularly evident in sectors such as dairy, pigs, fruit and vegetables, where scale and linkage with primary processing is critical. Further, organic food requires more resources, particularly human resources, during production. Farming is a capital-intensive business, and productivity is enhanced with investment in new equipment. Similarly, marketing channels are more difficult to access for smaller producers. Better collaboration of the various participants in the food value chain with farmers can help alleviate this problem. • Conversion takes time: Unfortunately, even when a farm decides to convert to organic, the transition isn’t simple or instantaneous. It varies slightly depending on the certification agency, but typically farms must: Learn new farming methods and processes. Farm organically on the previously conven-tional soil for at least three years (aka the transition period). Have periodic, comprehensive inspections by third-party agencies. Register with applicable county, state or na-tional offices. Submit fees ranging from five hundred to several thousand dollars depending on the size of the farm. After a farm has been certified organic, it requires ongoing inspections from a third party to ensure its land and produce continues to meet organic standards.
  • 7. cognizant 20-20 insights 7 Farmer Market Market Market Farmer Farmer Farmer Farmer Supply Processing Aggregation and Distribution Market Demand Moving food with value and values Figure 6 What is a Value Chain? Better risk management and streamlining of the supply chain can help assure farmers of their profits and increase their willingness to trade with the large retailers. • Market volatility: Fresh produce markets are above all characterized by perishable products, seasonal production and a strong dependence of supply on climatic conditions. These charac-teristics entail high degrees of uncertainty and risk about market prices and quantities, which has traditionally deterred local farmers from negotiating contracts in the produce trade. However, better risk management and stream-lining of the supply chain can help assure farmers of their profits and increase their willingness to trade with the large retailers. These long-term contracts with retailers will also enhance farmers’ ability to obtain working capital financing, which has traditionally been a challenge for small farmers. By signing contracts with big-box retailers, farmers gain security that they can present to the banks to gain more favorable terms for loans and financial aid for investing in capital equipment. • Integrating the food value chain: To date, the food supply chain has shown itself to be remarkably adaptive to evolving consumer demands (see Figure 6). With the increasing popularity of organic food, however, success will require adapting to changing demo-graphics and consumer preferences, as well as managing in an increasingly global and complex business environment. This requires collaboration in several areas: Progressive farmers are investing in crop field trials and breeding programs either individually or collectively through agree-ments and producers associations and coop-eratives. These farmers need to collaborate with other members of the value chain. In addition to sharing consumer information and preferences, these farmers need to better collaborate with manufacturers of organic fertil-izers and pesticides. Food processors are extremely important members of the food value chain that will need to support the expected demand of organic food. To do this, they will require significant changes to product lines, distribution channels and supply chains. Leading global producers are already working to address new consumer demands, globally diverse diets and calls for sustainable sup-ply chains and manufacturing processes. However, collaboration throughout the value chain is extremely important to this group, as the manufacturing of food — the central activity of the value chain — requires both up- and downstream collaboration. Food and product safety (FPS) has become a critical area of concern for companies. New regulatory requirements, increased supply chain complexities and ongoing scientific developments present many challenges and opportunities. Leading companies are in-vesting in securing their supply chain, devel-oping plans to manage recalls and enhanc-ing product labeling and traceability. They are building compliance systems to ensure they are in accordance with all regulatory
  • 8. cognizant 20-20 insights 8 regimes where their products are consumed. Such systems include regular verification procedures to ensure ongoing compliance. Systems are also improving supply chain transparency through track and trace tech-nologies. Once again, extensive collabora-tion and cooperation between the various elements of the value chain is necessary to ensure these systems operate effectively. • E-commerce: For online grocery shopping to grow, the costs of home delivery must be reduced, the delivery window must be small and punctual and neighborhood pickup points and/ or in-store pickup activities must be expanded. Retailers will need to cooperate closely with others along the value chain to fulfil consumer needs through joint efforts for warehouse operations, including inventory management, order management and fulfilment, creating and operating online stores and providing home delivery. To accommodate these requirements and create new value for consumers, both vertical and horizontal collaboration and con-solidation will be needed. In the coming years, retailers must invest in innovative technologies to meet the changing needs of consumers who expect not only to purchase products at any time and from any location, but to also have full pricing and product transparency before making their decisions. For example, to improve warehouse operations, grocers could install more efficient automated storage and retrieval systems in their warehouses, or deploy better order management systems. Looking Ahead The following recommendations are critical for enhancing the entire organic foods value chain. • Accountability and traceability: It is interest-ing to note that the consumption of organic food seems to be directly linked to consumer values and trust orientations. Two major trends in consumption deserve special mention: regular organic food consumers using standard distri-bution channels (supermarkets), and hardcore consumers adopting alternative channels. The trends, described above, are omnipresent in organic food distribution. Direct channels (such as farmers markets) address consumers that want to interact with the producers and inquire about their production methods. This avenue satisfies consumer curiosity about food origin and their desire for some additional food handling and cooking tips. The conventional distribu-tion channels, as we know, are characterized by longer channels, where consumers do not feel connected with producers and where the consumers have limited knowledge of the origin of their food. By ensuring better tracking and traceability of organic produce, food retailers can build trust among consumers. As a result, consumers buying from the big box retailers will have as much visibility into the origin of their food as those buying from farmers markets. So how do grocery shoppers examine produce or meat items and trace their sources? Apart from the traditional bar-code and radio frequency identification (RFID) technologies, which have been widely adopted to improve tracking and traceability of food items, other related technologies have emerged recently. For example, a system called HarvestMark, developed by YottaMark, is a specialized tool for tracking and authenticating products. The HarvestMark is a code printed on the label of a product. The code can be scanned by a shopper with an iPhone or Android smartphone, and data is then immediately available showing the grower, growing methods used and other pertinent product information. In the case of animal products, the methods employed in raising and feeding can be checked. Another popular technology not widely known about in this context is speech recogni-tion. Practically any application can be easily modified to accept speech input because of the recent development of terminal emulation-based speech recognition technology. Speech Note: Percentages are as of early 2014. Figure 7 Organic Producers by Region Oceania 1% Asia 35% Latin America 16% Europe 17% U.S. 30% North America 1%
  • 9. cognizant 20-20 insights 9 Quick Facts • A new ozone-based technology, called Purfresh (www.purfresh.com), can help minimize decay, control ripening and enhance food safety without the use of chemicals, making it an ideal solution for organic food. We can guide clients through the steps to integrate this USDA-and FDA-approved system with their current transportation systems. • These days, improved optics allow 2D bar codes on paper to be read at greater distances (over 50 feet) than 1D bar codes. This helps companies to implement real time data access systems for their delivery drivers, sales and service staffing inspectors and other personnel. recognition has been implemented widely for various warehousing functions such as picking, put-away, replenishment and shipping to increase efficiency and productivity. • Minimizing lead time from farm to shelf: Sometimes, retailers store produce in their food warehouses for as long as 12 days, on top of which is the transit time from the distribu-tion center to the store. In the case of alterna-tive food systems, this step is greatly reduced (e.g., box delivery) or even eliminated (e.g., farmers markets). Based on our survey of local farms (see Appendix), it takes less than 48 hours (from the time the crop is harvested) for the farmers to sell their produce to customers and about seven days for some of the efficient food co-ops to do the same. • For a retailer to minimize the lead time from farm to shelf and thereby increase the shelf life of fresh food, a holistic approach is required to revamp warehouse management, order management and transportation management. We can help assess potential areas of rework for a retailer and further assist in the implementation of integrated automated storage/retrieval systems, automatic identi-fication products, conveyors, order-picking systems, RFID, sortation equipment and software and systems integrations. • Streamlining logistics to minimize food mileage: With the increasing emphasis on sus-tainability, a large number of food retail giants are conscious of the miles their food travels before reaching the customer. Food miles is a major factor used to assess the environmental impact of food, including the impact on global warming. By promising to improve the logistics associated with their food network, these com-panies can exercise corporate social responsi-bility for creating a greener environment. • Airline food industry’s green field: Apart from chain restaurants and the regular retail industry, one particular industry that needs a special mention is airline food. In-flight catering represents an important multi-billion-dollar segment of the aviation industry today. Due to the problems with quality control, ground transportation and timeliness of food service subcontracted from hotels and restaurants, more airlines are moving toward creating air-port- based flight kitchens around the country. Serving quality food in-flight is a logistical challenge. With the increasing popularity of fresh and local food, obtaining supplies for airport kitchens, some of which are in remote areas, is proving to be a challenge. Further, if the number or variety of meals needed is inaccurately calculated, customer dissatisfaction ensues. Research shows that the airlines’ focus on local and organic ingre-dients will rise significantly in coming years. To better serve the flourishing demand for locally-grown, organic food, it is imperative that industry giants such as big retailers, chain res-taurants and the airline food industry look to restructure their existing supply chain models. To achieve this, their first step should be to improve collaboration with local farmers and involve them in the planning of their value chain delivery networks. The planning itself must begin with the redesign of their transport networks, from farms to consumers, since food miles is a primary factor in the determination of the freshness of food, carbon emissions and the cost of delivery.
  • 10. cognizant 20-20 insights 10 Appendix Survey Methodology We surveyed local farms, natural food co-ops and farmers markets in California and Minnesota wherein the author visited organic farms and interviewed the farmers. The questions asked were as follows: • Did you start off as an organic farm? If not, how long did it take to convert to organic farming? • What services/products do you provide? • What are your motivations for running an organic farm? • Do you feel satisfied with the profit you make? • Which is your biggest challenge as an organic farmer? • Is handling of organic food a real issue? What is the shelf life of ready-to-eat produce? • How do you ensure the health of the soil? Is there an additional dependency on the weather? • How do you transport your produce to the market/destination? • Is it true that yields are lower as compared to conventional produce? Do you believe organic farming is at least as profitable as conventional farming? • Could you elaborate on the intermediate steps involved in the distribution of your produce from the farm to consumers? • Any other valuable insights that you would like to share with us? The inputs from these farmers helped shape the content of this paper. References • www.ers.usda.gov/amber-waves/2013-october/growth-patterns-in-the-us-organic-industry.aspx#. • www.prweb.com/releases/2013/12/prweb11399512.htm. • http://cdn.intechopen.com/pdfs-wm/25733.pdf. • www.intechopen.com/download/get/type/pdfs/id/25733. • www.ibtimes.com/heres-who-eats-natural-organic-foods-why-market-research-1437858. • www.deloitte.com/assets/Dcom-MiddleEast/Local%20Assets/Documents/Industries/Consumer%20 Business/me_cb_food-value-chain.pdf. • http://web.mit.edu/edmund_w/www/Agribusiness,%206-7-02.pdf. • www.ethicalcorp.com/supply-chains/organic-food-%E2%80%93-what- %E2%80%98organic%E2%80%99-label-really-worth. • http://www.triplepundit.com/2011/02/organic-farmers-technology-software-it/. • www.usda.gov/documents/usda-2014-farm-bill-highlights.pdf. • “The World of Organic Agriculture: Statistics and Emerging Trends 2014,” FiBL and IFOAM. • The Business of Food: Encyclopedia of the Food and Drink Industries, edited by Gary Allen and Ken Albala, Greenwood Press, London, 2007. • Documentary: Food Inc., narrated by food writer Michael Pollan and Fast Food Nation author Eric Schlosser. • Documentary: Fed Up, narrated by Katie Couric and Laurie David, and directed by Stephanie Soechtig. • Key topics and highlights of the 2014 MOSES Organic Farming Conference held in Wisconsin: Theresa Podoll and David Podoll shared insights of their two families’ farms in Fullerton ND. Activist and author Anna Lappé informed farmers that organic farming is “climate-smart farming.” Permaculture guru Mark Shepard (restoration agriculture) explained how farmers can work with nature to transform their farms into systems that produce food sustainably and involve less work.
  • 11. About Cognizant Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process outsourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 75 development and delivery centers worldwide and approximately 178,600 employees as of March 31, 2014, Cognizant is a member of the NASDAQ-100, the SP 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant. World Headquarters 500 Frank W. Burr Blvd. Teaneck, NJ 07666 USA Phone: +1 201 801 0233 Fax: +1 201 801 0243 Toll Free: +1 888 937 3277 Email: inquiry@cognizant.com European Headquarters 1 Kingdom Street Paddington Central London W2 6BD Phone: +44 (0) 20 7297 7600 Fax: +44 (0) 20 7121 0102 Email: infouk@cognizant.com India Operations Headquarters #5/535, Old Mahabalipuram Road Okkiyam Pettai, Thoraipakkam Chennai, 600 096 India Phone: +91 (0) 44 4209 6000 Fax: +91 (0) 44 4209 6060 Email: inquiryindia@cognizant.com © C opyright 2014, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. About the Author Priyanka Aggarwal is a Retail Consultant within Cognizant Business Consulting. Previously, Priyanka worked at other supply chain companies, and has developed expertise in implementing cloud-based warehouse management solutions. She received her master’s degree in industrial engineering from Georgia Institute of Technology. Priyanka can be reached at Priyanka.Aggarwal@cognizant.com. Footnotes 1 According to a 2013 research report by TechSci Research. In fact, U.S. consumers generate the highest demand for organic food in the world, with about 81% of American families reportedly purchasing organic food at least once a year, according to 2012 estimates from the Organic Trade Association. 2 http://en.wikipedia.org/wiki/Selective_breeding. 3 http://en.wikipedia.org/wiki/Operational_definition. 4 www.usda.gov/wps/portal/usda/usdahome. 5 Organic Monitor is a specialist research, consulting and training company that focuses on global sustainable product industries, www.organicmonitor.com. 6 German: Forschungsinstitut für Biologischen Landbau (FiBL) is an independent, nonprofit research institute with the aim of advancing cutting-edge science in the field of organic agriculture. 7 The World of Organic Agriculture, Statistics and Emerging Trends 2013, published by FiBL and IFOAM. 8 Slow food is an international movement founded by Carlo Petrini in 1986. Promoted as an alternative to fast food, it strives to preserve traditional and regional cuisine, and it encourages the farming of plants, seeds and livestock characteristic of the local ecosystem. 9 IRI, formerly Symphony IRI Group, is a market research company that provides clients with consumer, shopper and retail market intelligence and analysis focused on the consumer packaged goods (CPG) industry. 10 Organic chain Sprouts Farmers Market Inc. (NASDAQ:SFM) experienced a blockbuster $344 million IPO in August 2013. 11 “Research and Markets, The United States Organic Food Market Forecast Opportunities,” TechSci Research, November 2013.