Dive Brief:

Organic for a long time was considered a niche, with a strong focus on quality, Jeff Fairchild, produce director at 20-store New Seasons Market in Portland, Oregon,told Supermarket News. But whats happening is that the big chains companies like Walmart and Costco are pushing on the price side, so its definitely changed a lot.

Retailers across the board are ratcheting up their organic food offers. Next to Whole Foods whose lackluster performance latelyhas been widely publicized Costco is recognized as the nations second largest seller of organic food. Costco now sellsmore organic produce than Whole Foods, while Kroger sells more than $16 billion worth of natural and organic foods.

Midwest-area supercenter operator Meijer owns a stake in a rapidly expanding small-box concept Fresh Thyme. Even discount grocer Aldi has committed to providing a more natural food selection, including an expanded organic produce offer.

This widespread availability of organic fruits and vegetables and organic foods in general,especially at lower price points than typically found at Whole Foods and other natural food specialists is great for the industry and a growing base of consumers wanting to eat healthy. There is a concern that the existing organic produce supply will not be able to keep up with increased interest from retailers and consumers. Supply problems and price increases could be inevitable.

More farmers will need to get on board, but transitioning to organic farming is a long and expensive process. To help ease the process, the U.S. Department of Agriculture partnered with the OTA earlier this year on a new transitional certification programthat could make it more enticing for farmers to make the switch. It could end up being a good short-term solution, provided consumers will understand what transitional certification means and if they will be willing to pay higher prices for food bearing that seal.

Top image credit: Kraft Heinz Co

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Increasing demand for organic produce could pressure grocers - Food Dive