OTA Annual Report 2013—Page 2

OTA Annual Report 2013OTA is actively reaching out to the more than 17,750 certified organic operations to help shape a potential Organic Research and Promotion Program. OTA plants “seeds” for active farmer involvement through the establishment of a Farmers Advisory Council. Organizers developed hard-copy and electronic postcards based around the theme “I’m Organic” with the rallying cry “United for MORE Organic.” All stakeholders were asked to participate by going to the UnitedForMoreOrganic.org website, signing up for a newsletter to learn more about the initiative, and providing feedback to help develop the initiative framework. OTA has presented the emerging structural options for the program via in-person meetings, webinars, and through targeted outreach to stakeholders. These options fall into three key areas—Governance, Utilization of funds, and Assessments—focusing on the best way to accomplish fair and equitable participation across the industry. Meanwhile, two legislative “technical fixes” needed to remove obstacles to establishing an organic research and promotion program received support in Congress. The amended language relieves organic producers and handlers from the burden of paying into conventional orders that do not have a history of working on their behalf, and allows the organic sector the same choice that other sectors of agriculture already have to petition USDA. It is designed to formalize and improve two-way communication between OTA and organic producers. Through dialog and upfront input, FAC gives organic farmers a voice to directly influence legislation that is important to their sector, and allows OTA to better represent the diversity of organic producers in its policy and advocacy work. Making up the new advisory council are active farmers of small and medium-size operations serving as representatives of sector, state and regional organic farming organizations. CCOF Inc. (California Certified Organic Farmers) is a founding member of the advisory council. Other participating organizations include Organic Valley/CROPP Cooperative, Oregon Tilth, Organic Egg Farmers of America, UNFI and WODPA (Western Organic Dairy Producers Alliance). Other organizations meeting the criteria are encouraged to participate. FAC held its first three meetings in 2013 via teleconference, and focused on identifying the needs, challenges and opportunities of organic producers. Perry Clutts of Pleasantview Farm, who holds the first designated Farmer Seat on OTA’s current Board of Directors, serves as co-chair of OTA’s Farmers Advisory Council. To learn more, visit UnitedForMOREOrganic.com These technical amendments were included in the final Farm Bill, which was signed into law by the President in early 2014. While removing these barriers does not establish an organic research and promotion program, the entire organic sector now has the choice of whether to pursue the program, and if so, how it will be structured. OTA consistently communicates that organic is the gold standard for consumers seeking to purchase products that have been produced without the use of genetic engineering. “Organics are a niche market in agriculture with a growing market share, so it makes sense to me to allow farmers to invest some of their own funds to promote their products.” —RepresentativeVickyHartzlerofMissouritotheAssociatedPress During 2013, OTA has convened an Organic = Non-GMO Plus Task Force, charged with assisting OTA in developing comments to FDA on the common terminology used on existing organic products, and to ensure that organic certification and corresponding organic labels remain the gold standard for non-GMO verification. These efforts support OTA’s call for mandatory labeling of GMOs while bolstering organic’s position for consumers seeking to avoid GMOs. OTA continues to be a partner in the Just Label It campaign for national mandatory labeling on products produced using GMOs. of the The conversation to determine if there is a fair and equitable way to pool funds for organic research and promotion continued in 2013. Based on input collected from over 500 individuals participating in webinars and town hall meetings across the country over the previous two years, the Organic Research and Promotion Program (ORPP) Steering Committee drew up options for a framework outlining how a program could be structured. In May, OTA formally established a Farmers Advisory Council (FAC) to provide input from small- to medium-sized organic farmers, ranchers and growers to the trade association on matters geared to advancing organic agriculture. Organic Farms are the foundation Organic industryPage 1Page 3

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The Organic Trade Association (OTA) is pleased to share with you our Annual Report (January 1, 2013 – December 31, 2013) and Fiscal Year 2013 financial summary.

As you will see, OTA does a lot with a little. Through strategic management of limited resources, OTA proactively addressed a wide range of critical issues facing the broad organic business community.

Your trade association tackled government relations, consumer education, and media outreach efforts that directly helped to develop markets for organic products, foster consumer confidence in the organic label, and advance organic research and promotion efforts. In an increasingly complex marketplace, these are no small tasks.

The organic sector continues to show strong growth, with data now emerging that U.S. organic product sales in 2013 once again reached double-digits. This is a gratifying reminder of the importance of OTA’s continuing work on your behalf. OTA would like to thank all members, Annual Fund contributors, and volunteers. On behalf of the Board of Directors, OTA looks forward to another year working together to promote and protect organic trade.

Please e-mail membership@ota.com if you would like to receive a hard copy of this report or if you are interested in learning more about OTA's work on behalf of the North American organic industry.