Organic food sales at retail in the United States have risen from $3.6 billion in 1997 to $13.8 billion in 2005 at a steady annual growth rate averaging 18.4% according to the Organic Trade Association's 2006 Manufacturer Survey.  It is important to realize that organic represents only 2.5% of retail food sales, but that penetration has increased from .81% in 1997.  Roughly 40% of organic food sales and fruits and vegetables and 80% of those are fresh produce.  This food category, the mainstay of organic foods, continues to increase at 10% per year.  The next largest category is dairy products which exploded in the past few years and has now settled down to a 15% annual growth rate. 

The strong growth in dairy and meat categories points to a parallel increase in demand for organic feeds.  Nonetheless, organic grain crops represent less than .5% of US cropland in grains while 5% of vegetable crop production is devoted to organic and 2.5% of fruits and nuts.  California represents 59% of all US organic vegetable acreage and 58% of US organic fruit and nut acreage.  This compares to 41% of total vegetable acreage and 62% of total fruit and nut acreage.  Therefore, California plays a larger role in organic vegetable production than it does in all vegetable production but a slightly smaller role in organic fruit and nut production than it does in total production with 7% of all California vegetable production devoted to organic and 2% of fruit acreage under organic practices.  Not surprisingly, California has the largest number of organic growers and the largest number of cropland acres certified organic, 20% and 13% respectively.  It has the third highest number of acres in organic pasture for 5% of the US total.