The dim blue eyes struck the first impression. Earlier, in the parking garage, quiet whimpering was trying to pass for the glory of conservation. Then through the lobby, where dynasty and luxury sat waiting, to be victimized. After all, this was a business conference about food. Yet food was craftily disguised as a lifestyle status symbols, and a weird expensive model to the impoverished left.
I made my way downstairs. The loading docked moved at a leisurely afternoon pace, music was playing upstairs. Thematically, bluegrass, jazz electronic music, blues, and jam music are all complementary to healthy foods. I made my way back to the upper floor of the Anaheim Convention center. A bad crowd gathered around a punching bag crowd, where a Sri Lankan exhibitor was being egged on to punching competitively. Aggressive work play was developing in a weird thunder-dome reality.
Nevertheless excitement pervaded the floor, and the appeal, pardon the pun, was fresh. Families, immigrants, people from other countries, big midwestern agriculture, small California operations, storefront networks, all into economic activity. I spoke to farmers market worker who had started a carbonated drink operation. His van was the big appeal with the counter door propping open at the sides.
In the basement, an ocean of cold beverage kiosks. A young girl who looked Hawaiian and was representing a Hawaiian Spring Water company, turned out to be Chinese, not Hawaiian. I discovered this as I tried speaking to her in Native Hawaiian. Suddenly a 6 foott 8 inch native moved his way into the conversation and claimed to be a member of the Hawaiian Royal Family. I claimed to be Tiki God.
I discovered drink companies, one was chartered by a former Naval Cadet. A gummy vitamin company begun by a surfer from San Diego. He was aiming for big the contracts. A significant portion of the floor reserved for Turks. and other countries scattered: India, Indonesian, Ceylon (Sri Lankan), Europe and Latin American. Teas representing the small, niche areas, homeopathy, and herbs and spices. “These consumer are aware of the markets” said one exhibitor, touting the intelligent lifestyle. Many others agreed that a large percentage of organic and natural food come from a higher income bracket with built in budget cushions. One representative from a bigger fish said “They are not afraid to purchase online or from services who can meet their needs.” As mentioned, the separation from chain supermarkets is fuel for better or for ill.
Grains consumption brings midwestern big agriculture into the sector, displaying subtle grandiosity. Their ability to hide amongst small operations is a nod in the right direction, for bullshit anyway. The Grain products, flooding the show dwarfed everything but the delivery man, but the big-agro wants to appear toned down and righteous. The other products played lesser roles needing to pop branding out of the big crowd, and risk going to market with a dead zinger. The assortment included meat substitutes, cold drinks, source bottled water and fruits, spices and herbs.
Not Surprisingly, California’s organic agriculture does not incorporate grains into their statistics. The California State Organic program follows the USDA National Organic Program Includes regulations and law. The organic share of total food sales in the country has grown to upwards of 6%, which only scratches the surface. Worldwide sales of organic has grown at approximately 130 billion dollars, 60 billion of which are in the United States. Consumer spending changes account for shopping at discount stores and ,purchasing more in bulk, and online. . A contract with a large retailer can quickly turn a small farm or producer into a market player. By far, fruits and vegetables lead sales in the product category with beverages running second, followed by dairy and eggs. Finishing a distant fourth are baby products.
An ongoing consolidation of the Organic food industry has quietly emerged. Cooperative buying, a once popular item, had its business model stolen, franchised, then bought out. It happened under the mirage of perfect competition and with the help of banks. Who in recent decades , have taken to commodities in the same tone as mortgaged backed securities. Nevertheless it seems like the political charge behind cooperatives who are often lean socialist is being consumed by self-proclaimed forces of the free market and/or greed. I suspect this big mid-western agriculture is behind this, but that is another article entirely. This shake down of cooperatives was orchestrated through “the ability to offer more product choices to customers”. Meanwhile, similar schemes involved organic products themselves. Fortunately Organic farming was spared the impending doom. This is because farming does not appeal to buyouts, economic bullying or consolidation. The big boys don't stick their beak into the bank's business, as the new holy grail of the new greed. Most organic farms are considered risky in the eyes of big agriculture. Despite the risk, a large number of people have purchased farmland in places such as anywhere north of San Francisco and are taking a chance on farming life and all the woes and uncertainties that go along with it.
Despite the fall out of many cooperatives, in areas where grassroots politics protects little where large retailers fear to tread for fear of boycotts and stonewalling. These areas lucratively coexist in a socialism frenzy with association based neighborhood markets. Loyal, zealous customers have the ability to keep things going but must spend, and wealthier people can pay exorbitant fees, and feel hip, cool, righteous a wide range of options, growing exponentially.
As mentioned, the sector of Health and Wellness has also moved into the big market. Many HMOs are adopting homeopathy as alternatives to unaffordable medical care and promoting community health programs, services, and products. The HMO community is willing to grab a piece of the organic market and incorporate it into their diet and wellness programs. Meanwhile the entire conservation sphere of politics is vying to gain economic advantage and failing in both fields. Some people know this and skirt around the atmosphere aiding and promote the wicked agenda of the other side.
The conference ran through the ides of march where Jay Sherry, a motivational speaker, was giving a keynote address. The organization running the event did pulled off a stunt of a large scale organic marketplace. However, digging into the smaller, darker corners in transportation, land use, contracts and bids would yield a mixed bag of doomed, grey areas, and entrenched local politics. Petty local politicians mercilessly hide mines in the juicy details which lie eerily dormant inside municipal archives.
The economics of natural foods are weird to say the least, not in a good way. The big markets feel it is bad business to devour the entire thing. Smaller opportunities are available in open market entrepreneurship. Yet healthy untapped big market opportunities remain. My prediction is that the price of certain fruits but not others will keep rising. Fancy Chinese Apples from China and Mangoes from Vietnam will continue to run parallel with healthy markets. The price of fake meat will remain a rip-off almost everywhere, as a reminder shoppers that it has zero nutritional value, and will surely bring an onset of diabetes when they return to eating meat.
As time marches on and tastes change, natural foods might nestle itself comfortably into a smaller niche or it might continue as a big fad that refuses to go away. Regardless, when food is in center discussion, as always, it is not to be taken lightly.
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