Value-Added Corner
Family Farmers Seed Cooperative: Colorado co-op
aims to meet growing need for organic seed
Editor’s note: Value-Added Corner is
compiled by Anne Todd. Contact her at:
anne.todd@wdc.usda.gov.
amily Farmers Seed
Cooperative was
incorporated in March
2008. Based in
Colorado Springs,
Colo., the co-op currently has four
members: two farms in Colorado and
one each in Washington and Oregon.
According to Dan Hobbs, executive
director of the Organic Seed Alliance
(which provides technical assistance to
Family Farmers Seed), the co-op plans
to use a $120,000 Value-Added
Producer Grant it received from USDA
Rural Development to expand its
membership.
Business objective
The Organic Trade Association
reports that U.S. sales of organic food
and beverages have grown from
$1 billion in 1990 to an estimated
$20 billion in 2007. Organic food and
beverage sales are projected to reach
about $23.6 billion in 2008. In 2006,
organic products represented approximately
2.8 percent of overall annual
food and beverage sales. Organics are
one of the fastest-growing sectors of the
food and beverage market, growing
almost 21 percent during 2006 alone.
However, the organic seed supply
needed to grow vegetables and other
crops is in short supply. Family Farmers
Seed Cooperative’s goal is to help meet
the demand for quality, certified-organic
seed. The co-op says it “wants to
increase the quantity and diversity of all
types of organic seeds.”
USDA Value-Added Producer Grant
Funding:
The $120,000 grant from USDA will
be used to develop a premium national
market for specialty organic seeds to
launch Family Farmers Seed Cooperative
as a 100-percent producerowned
business, and to help expand
mem-bership. The USDA grant is a
matching grant, so the co-op has also
received $120,000 in funds from other
backers, including Colorado State
University.
Importance of USDA backing
“Dozens of large and small firms
have begun to offer organic varieties,
and we are beginning to see the
economic potential of the market, but
are constrained by limits within the
production system,” says Hobbs.
“Consequently, certified-organic
produce farmers often have to revert to
the use of conventional seeds.” [Under
USDA’s National Organic Program,
when organic seeds are not commercially
available, farmers may use
untreated, non-synthetic seeds and
planting stock provided that other
specific federal and local program
conditions are met.] “This represents a
significant and time-sensitive market
opportunity for organized seed producer
groups,” Hobbs continues. “This
funding provided by USDA Rural
Development will be a great asset in the
cooperative’s endeavors.”
Major challenge
facing the co-op
According to co-op member Richard
Pecoraro, co-owner of Longmont’s
Abbondanza Organic Seeds and
Produce, the co-op is also promoting
equipment sharing. Seed-cleaning
equipment is very expensive and,
therefore, it is difficult for small-scale
producers to afford. Pecoraro and other
co-op members will gain access to the
needed equipment, which in turn will
help increase their production of
organic seeds.
Major opportunity
For the organic food market to
continue its growth trends, more
supplies of organic seed are needed.
This new cooperative has the potential
to help meet this need. The grant will
help Family Farmers Seed Cooperative
members improve their financial returns
and will create job opportunities for
agricultural producers, businesses and
families.
Contact
For more information about Family
Farmers Seed Cooperative or the
organic seed industry outlook, contact:
Daniel Hobbs, 20 Boulder Crescent,
Suite 100, Colorado Springs, CO
80903; Phone: (719) 250-9835.
