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US organic food handlers are more productive when in clusters

A study of certified organic processors and handlers found that the total income of cluster participants is correlated with the size of the cluster. In small clusters (3+ participants), income of cluster participants was significantly higher than that of outside firms (by $3.24M). In larger clusters  (9+ firms), participants’ income was lower by $13.7M than the average income of companies in the region due to the smaller size of companies, lower number of employees and higher competition for suppliers of produce. Regardless of the cluster size, however, cluster participants were more productive and had higher sales per employee (by $1M) than non-participants.

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