Consumers are flocking to an increasing number of Iowa farmers markets for fresh produce. This demand for fresh and naturally grown food is also affecting the large supermarket chains, as demonstrated by the growing amount of floor space dedicated to natural and organic products. According to a recent report, global sales of organic and natural products are expected to reach $100 billion by 2008. At an annual growth rate of 20 to 30 percent, demand for organic products will quickly outstrip supply.

Consumers have shown they’re willing to pay a premium for organic products. Whole Foods Market Inc., a Texas-based supermarket chain that focuses entirely on natural and organic foods, appeals to its customers’ desire to purchase healthy, natural products in an attractive setting. Judging by the company’s stock price increase of 1,522 percent over the past decade, the strategy appears to be working. Even traditional food manufacturers such as General Mills Inc. are jumping on the bandwagon. General Mills recently bought natural foods producer Cascadian Farm and hired the owner, Gene Kahn, as its vice president of sustainability.

Clearly, given Iowa’s agrarian foundation, the organic and natural foods industry offers great opportunities for the small to mid-size farmer, as well as for those involved in food processing, distribution and marketing. Many questions arise from this opportunity: How can I make money producing organic and other highly differentiated food products? Are there farmer networks and distribution chains in place? How does one access them? What are the nuances of running an organic or natural food business?

Iowa State University offers the only graduate-level program in the country designed to address these issues and support this rapidly expanding industry. The ISU College of Business has partnered with the Leopold Center for Sustainable Agriculture and the ISU Graduate Program in Sustainable Agriculture to offer an M.B.A. with a minor in sustainable agriculture. This program develops expertise in sustainable agriculture systems while building a strong knowledge of the functional areas of business.

The Leopold Center coordinates the Value Chain Partnerships for a Sustainable Agriculture, which was formed in 2002. VCPSA brings together farmers, commodity groups, businesses, non-profit agencies and university and community partners to address challenges found in food and fiber markets at the production, processing, distribution and retail levels.

Sustainable agriculture considers community and environmental components as well as economic aspects of agricultural production systems. One of the goals of the Value Chain Partnerships project is to build value chains that reward small and mid-size farmers in Iowa who follow sustainable agricultural practices in their operations. VCPSA supports the growth and development of economically viable value chains that will lead to increases in the number of markets for participating Iowa farmers. Kahn, the General Mills vice president of sustainability, also founded Robin Hood Consulting, a company that helps start “green” food businesses. Robin Hood will be consulting with VCPSA in coming months.

It’s an exciting time to be in this field, and the job possibilities for students with an M.B.A. and a minor in sustainable agriculture are numerous. Companies such as Whole Foods Market, Wild Oats, Stoneyfield Yogurt and Organic Valley will be seeking professionals with the business skills, understanding of sustainability issues and passion to be part of a “green” or organic food company. There also will be opportunities to get in on the ground floor with many new businesses that are forming to help meet the demand for organic and natural foods.

Iowans have a wonderful opportunity to capitalize on the rising consumer demand — and corresponding premium prices — for quality organic and natural products. And now we have a resource for developing the skills necessary to be successful in this dynamic industry.

Rich Pirog is the VCPSA project director for the Leopold Center at Iowa State University. Amy Hutter is the associate director for M.B.A. student recruitment and marketing at Iowa State’s College of Business.