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Distributors

The USDA requires that distributors, manufacturers, and processors of organic products be certified by an accredited state or private agency. In 2007, there were 3,225 certified organic handlers, up from 2,790 in 2004.

Organic handlers are often small firms; 48% reported sales below $1 million annually, and 22% between $1 and $5 million per year. Smaller handlers are more likely to sell to independent natural grocery stores and natural product chains whereas large distributors more often market to natural product chains and conventional supermarkets, with a small group marketing to independent natural product stores. Some handlers work with conventional farmers to convert their land to organic with the knowledge that the farmer will have a secure sales outlet. This lowers the risk for the handler as well as the farmer. In 2004, 31% of handlers provided technical support on organic standards or production to their suppliers and 34% encouraged their suppliers to transition to organic. Smaller farms often join in cooperatives to market their goods more effectively.

93% of organic sales are through conventional and natural food supermarkets and chains, while the remaining 7% of U.S. organic food sales occur through farmers' markets, foodservices, and other marketing channels.