U Mate International
General Information

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Reputable data has established that the organic industry has grown dramatically in recent years from approximately $180 million in 1980 to retail sales levels of $2.8 billion in 1995 and $3.5 billion on 1996. On a related basis, certified organic crop land production has expanded from approximately 470,000 acres to more than 660,000 acres in the period 1992-1994 and is expected to reach 2 million acres by the year 2000. According to the U.S. Department of Agriculture, there are approximately 4,000 certified organic farmers in the United States and about 600 organic handlers. Most of the certified farms have less than $25,000 in gross annual sales.

U.S. exports of organic products totaled approximately $200 million in 1994, representing about 9% of the total U.S. organic output. The European Union has projected that the organic share of its food consumption market will increase to about 2.5% by 1998. Organic products are able to command premium prices not only in the United States but worldwide. In 1994, France and Germany had combined total retails sales of organic foods of approximately $2 billion and Japan's retail sales for that year were estimated to be $690 million. European Union countries project growth rates for organic foods at about 20% per annum, which is about the projected increases for the United States. The organic foods production and the related rule-making proceedings initiated by the Department of Agriculture on December 15, 1997, undoubtedly will have a several-fold effect. First, those farms and handlers that currently are able to comply with the proposed Department of Agriculture regulations ought to see their sales and production increase dramatically in the years to come. On the other hand, those producers who are attempting to sell "organic food" without complying with the U.S. Department of Agriculture standards may be frustrated until they are fully certified as organic farms. During the pendency of the proposed rule making and after its promulgation, there very well may be a washing out process where some existing organic farms simply may not be able to comply with the stringent regulations and thus, effectively are put out of business.

Accordingly, U Mate International is recommending that all organic farmers and handlers obtain immediate access to the U.S. Department of Agriculture's proposed rules so they may, at an early time, conform their procedures and practices to these rules in order to be permitted to use the organic labeling and receive the organic agricultural certifications for their products. To the extent that U Mate International has technical data or can point to technical data to aid in the organic farm certification process, we would be pleased to do so. Particularly, we invite all current state and private certifiers and potential applicants as federal certifiers under the rule making proceeding to contact U Mate International and to obtain information and sources concerning humates, organic compounds and humic acid derivatives. We believe that this will be an ongoing process. Humates should be a part of your organic plan.