For Abby Anderson, serving the food industry has run in the family for decades. Her great-grandparents founded The Andersons, Inc., in 1947, her grandfather was employed at the company for many years, and her father still works for The Andersons, Inc.’s nutrient and industrial group. Despite this, Anderson noted she wasn’t initially interested in a career in agriculture, instead graduating with a bachelor’s degree in brain behavior and cognitive science from the University of Michigan in 2013. However, she eventually found her way to the company her family founded, which had become publicly traded by that time. 

“I was always drawn to the company because of its legacy and founding principles, though I had much to learn about the agriculture industry,” she said. “After joining The Andersons, Inc., in 2013, I quickly gained an appreciation for the complexity and importance of the industry.”

Anderson began as marketing coordinator for the company’s plant nutrient business, working her way up to brand manager of the business before moving to the grain side of the company. In 2017, she was promoted to senior merchant in the food ingredients division, and in 2020 began managing the organic and specialty process businesses. Today, Anderson serves as a profit center manager, overseeing business functions like sales, merchandising, operations and more. 

Anderson is active on the company’s early career committee, helping support and develop early-in-career merchants. She also serves as board member at Bittersweet Farms, Whitehouse, Ohio, which uses a farmstead model to serve adults with autism. 

She said her years in the industry have allowed her to meet many great people, and it’s what she enjoys most about her role. 

“Not only do I thoroughly enjoy working with my colleagues at The Andersons, Inc., but I have been so fortunate to get to know many of the customers, vendors and industry partners we interact with on a daily basis,” she said.

How has the use of organic ingredients evolved in the bakery and snack categories in recent years?

Consumers are increasingly interested in healthier lifestyles and understanding what is in the food they eat. This trend is even more prevalent in younger generations. In recent years, food scientists and bakers have become increasingly creative in the development of unique products with clean labels. Many of the organic ingredients available on the market today, such as organic ancient grains and pulse flours, not only allow for a clean label but also enhance the nutritional profile of the product.

How has demand for these products evolved and where do you predict it to be going forward? 

It’s no secret that the organic industry has been growing steadily in recent years. While unit sales have been challenged during recent periods of inflation, we have also witnessed the resiliency and loyalty of the organic consumer. Once the economy recovers, we expect to see outsized growth return to the organic food industry.

What cost and supply challenges exist around obtaining these ingredients? Are there any other challenges?

Organic markets can be very volatile, and there are few tools available to mitigate price risk. Despite the growth of the organic industry in recent years, it remains a relatively small portion of the overall agricultural production in the United States. The United States is a net importer of organic grain and, therefore, reliant on foreign supply.

Farmers face steep barriers to entry, as there is a mandatory three-year transition period in which they are required to use organic practices while unable to capture organic premiums. Organic grains often need to travel farther to their end use market, which also increases freight costs and makes logistics more complex. Additionally, since organic farmers are prohibited from using synthetic fertilizers, diverse crop rotations are essential to replenish nutrients in the soil. Many baking and snack companies are partnering with processors, grain handlers and farmers to develop markets that support a diverse crop rotation.

Because of the premiums offered for organic ingredients, there is an inherent risk of fraud. Earlier this year, the US Department of Agriculture (USDA) published the Strengthening Organic Enforcement (SOE) Rule, which seeks to improve farmer and consumer confidence in the USDA organic seal. According to the USDA, this update to the regulations “strengthens oversight and enforcement of the production, handling and sale of organic products.”

What do you expect the supply and cost situation around organic ingredients to look like in a few years?

I expect the organic space will continue to explore ways to manage price risk in the coming years. There are industry partners who are working to bring more price transparency to the space. As the organic industry continues to grow and as liquidity improves, there should be more opportunity for the development of risk management tools that will further facilitate the maturation of the organic markets.

What organic ingredients do you supply? How do you work to make these ingredients more accessible? 

The Andersons, Inc., supplies a variety of ingredients to food processors and manufacturers. Farmers are at the core of our procurement and originations strategy, so many of the ingredients we provide are sourced directly from farms in the United States and Canada. Our organic ingredient portfolio includes corn, wheat, rye, spelt and various other ancient grains, pulses and lentils. We own and operate several cleaning facilities and one specialty mill, which allows us to add value to our ingredients and ship them to customers in a format that is ready for use in manufacturing.