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Executive Summary Jan2010

D
David Lewinson

Global Organic Supply Chains focuses on developing new business models for organic food supply chains in the 21st century. The US imports more organic products than it produces domestically to meet demand. Organic Revolution Worldwide aims to represent consumer interests within supply chains by interacting with whole chains and offering nutritious organic options while maintaining brand integrity. They see opportunities to capture parts of supply chains by collaborating directly with grower cooperatives and helping them position competitively in markets.

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Global Organic Supply Chains New business models for the 21st century created by Organic Revolution Worldwide Organic imports have Who represents the consumer? Who within the supply chain increased as U.S. demand for represents the best interests of the consumer? organic products has exceeded domestic supply. The grower who is removed geographically from the US Department of Agriculture- end-user? accredited groups certified The freight company trying to preserve its margins? 27,000 producers and The food processing facility that has to manufacture on handlers worldwide to the U.S. a mass scale to justify its investments? organic standard in 2007, with The wholesaler who relies on supermarkets to shift approximately 16,000 in the enough volume? United States and 11,000 in Or maybe the retailer who has to turn over its inventory over 100 foreign countries. within a reasonable period of time to keep consumers interested who has to keep the freshest fruits and vegetables and beat its competition on price? Source:USDepartmentof AgricultureJune2009 Our role is to interact with the whole supply chain, offer the consumer nutritional organic choices, educate growers and food processors, but above all maintain integrity of the first universal organic brand.
Although scientific evidence still does not guarantee that organics are better for your health than conventional food, many consumers have already made up their minds: No Pesticides Wanted! The farming industry worldwide recognizes The world of to some extent the need to differentiate organic food permits the their products by improving quality, consumer to return vertically integrating with their supply chain to the days when or certifying their produce as organic. all food was grown without artificial Under pressure from consumers who are fertilizers beginning to understand the direct correlation between their personal food The United States is the consumption and their health coupled largest consumer market for organic food at almost with the dramatic rise of working women in $50 billion. It is three times Western countries, we anticipate an the size of the next largest market Germany and five ongoing shift in consumption towards times the size of the number three United organic products leading to a battle for Kingdom market share centered on a War of Labels offered by different food suppliers. 2 息 Organic Revolution Worldwide LLC January 2010
Food of the Gods Organic Revolution Worldwide perceives a generational opportunity to capture slices of the supply chain for organic Over the past 70 products worldwide by working directly with co-operatives of years, game growers as well as their distribution chain, offering an opportunity changers in the to enhance their crop portfolio through organic and bio-dynamic farming methods, positioning them competitively in the food industry have marketplace and guiding them through the morass of regulatory, been logistical and marketing issues that they face in order to match preservatives to buyer expectations. enhance shelf life, The singe biggest limitation to the trend towards organics is price as there is still clearly an arbitrage between conventionally nutrition content, produced foods and their organic counterparts. The value chain packaging and structure offers ample opportunities for improvement especially regulatory labeling from the consumers point of view. We believe that we can shape the structure of that value chain by focusing on the customer and translating our assessment back upstream to Australia has 37% of growers and food processors. all land certified to Our business model is to collapse the supply chain down to its key organic standards, elements, educate the grower on what the consumer is seeking four times that of and pool together similar growers with similar classes of product. Argentina in second Growers receive the benefits of scale and maximize their profits. place and six times At the other end of the chain, we identify products of interest to that of Brazil consumers, reach out to the sources of the ingredients and convert them into a finished product with an enhanced nutrition profile. 3 息 Organic Revolution Worldwide LLC January 2010

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Executive Summary Jan2010

  • 1. Global Organic Supply Chains New business models for the 21st century created by Organic Revolution Worldwide Organic imports have Who represents the consumer? Who within the supply chain increased as U.S. demand for represents the best interests of the consumer? organic products has exceeded domestic supply. The grower who is removed geographically from the US Department of Agriculture- end-user? accredited groups certified The freight company trying to preserve its margins? 27,000 producers and The food processing facility that has to manufacture on handlers worldwide to the U.S. a mass scale to justify its investments? organic standard in 2007, with The wholesaler who relies on supermarkets to shift approximately 16,000 in the enough volume? United States and 11,000 in Or maybe the retailer who has to turn over its inventory over 100 foreign countries. within a reasonable period of time to keep consumers interested who has to keep the freshest fruits and vegetables and beat its competition on price? Source:USDepartmentof AgricultureJune2009 Our role is to interact with the whole supply chain, offer the consumer nutritional organic choices, educate growers and food processors, but above all maintain integrity of the first universal organic brand.
  • 2. Although scientific evidence still does not guarantee that organics are better for your health than conventional food, many consumers have already made up their minds: No Pesticides Wanted! The farming industry worldwide recognizes The world of to some extent the need to differentiate organic food permits the their products by improving quality, consumer to return vertically integrating with their supply chain to the days when or certifying their produce as organic. all food was grown without artificial Under pressure from consumers who are fertilizers beginning to understand the direct correlation between their personal food The United States is the consumption and their health coupled largest consumer market for organic food at almost with the dramatic rise of working women in $50 billion. It is three times Western countries, we anticipate an the size of the next largest market Germany and five ongoing shift in consumption towards times the size of the number three United organic products leading to a battle for Kingdom market share centered on a War of Labels offered by different food suppliers. 2 息 Organic Revolution Worldwide LLC January 2010
  • 3. Food of the Gods Organic Revolution Worldwide perceives a generational opportunity to capture slices of the supply chain for organic Over the past 70 products worldwide by working directly with co-operatives of years, game growers as well as their distribution chain, offering an opportunity changers in the to enhance their crop portfolio through organic and bio-dynamic farming methods, positioning them competitively in the food industry have marketplace and guiding them through the morass of regulatory, been logistical and marketing issues that they face in order to match preservatives to buyer expectations. enhance shelf life, The singe biggest limitation to the trend towards organics is price as there is still clearly an arbitrage between conventionally nutrition content, produced foods and their organic counterparts. The value chain packaging and structure offers ample opportunities for improvement especially regulatory labeling from the consumers point of view. We believe that we can shape the structure of that value chain by focusing on the customer and translating our assessment back upstream to Australia has 37% of growers and food processors. all land certified to Our business model is to collapse the supply chain down to its key organic standards, elements, educate the grower on what the consumer is seeking four times that of and pool together similar growers with similar classes of product. Argentina in second Growers receive the benefits of scale and maximize their profits. place and six times At the other end of the chain, we identify products of interest to that of Brazil consumers, reach out to the sources of the ingredients and convert them into a finished product with an enhanced nutrition profile. 3 息 Organic Revolution Worldwide LLC January 2010