Marketing & The Organic Food Industry:
A history of food fears, market manipulation and misleading consumers.
By Graydon Forrer, Alex Avery and John Carlisle September 2000
“Years of black propaganda from the organic fringe, backed by the BSE tragedy, have had a perceptible effect on consumer views… By their very nature (organics) promote health and food safety, implying that non-organic food is some- how unhealthy and dangerous.”
Marketing Journal, April, 1999 i About the authors:
Alex Avery, author, is the direc- Graydon Forrer J.D., author, John Carlisle, contributing tor for research and education is managing director of Life editor, is the director of The at the Center for Global Food Sciences Strategies, LLC spe- National Center for Public Issues at the Hudson Institute. cializing in public policy and Policy Research’s Prior to joining Hudson in communications programs for Environmental Policy Task 1994, he was a McKnight bio-science, pharmaceutical, Force. Carlisle is the author of research fellow at Purdue medicine and related health numerous reports dealing with University. The Center for industries. Previously, Mr. health, the environment and Global Food Issues looks at Forrer was legislative director government regulation. agricultural policy from a glob- to Senator Frank Lautenberg, Articles by Carlisle have al perspective, with reference director of consumer affairs at appeared in numerous publica- to both economic and environ- the U.S. Department of tions including The Sacramento mental impacts. Avery is the Agriculture and chief counsel Bee, Newark Star-Ledger, St. Louis co-author of “Farming to to the House Small Business Post-Dispatch, Denver Post, Salt Sustain the Environment,” Subcommittee on Regulation, Lake Tribune, The Independent Hudson Briefing Paper No. Business Opportunities and (London), The Washington Times, 190, (Hudson Institute, May Technology. Forrer has pub- and the New York Beacon. 1996) and his articles have lished articles for the appeared in many publica- Washington Post, Banking Law tions, including The Wall Journal, Skeptical Inquirer and Street Journal, Des Moines numerous other magazines Register, USA Today Magazine, and newspapers. The Washington Times, and Canada’s Western Producer.
The authors would like to acknowledge editorial, writing and research support from Ernest Gibble, Joseph Byrne and Victoria King. The authors thank and acknowledge the various academic reviewers at North Carolina State University, Tuskegee University, The University of Houston and the London Institute for Economic Affairs.
2 Introduction
In May of this year (5/19/2000), the ic certification does not convey safety USDA Seal Would Mean... National Center for Public Policy or nutritional information and that Base = Total Research released survey data indicat- there is no evidence of safety or nutri- ing that 85 percent of Americans, tional benefits for organic foods over despite evidence to the contrary, believe conventionally grown products. Better for Environment organic foods are safer, healthier, more Nonetheless, as a result of a successful nutritious or better for the environment effort by the organic food industry to Safer than those grown by conventional alter pubic opinion, the overwhelm- ii Better in me t h o d s . In the United Kingdom, dur- ing majority of consumers believe that Some Way ing the same week, Britain’s largest “organic” is better, safer or more More healthy supermarket chain was found guilty of nutritious. misleading consumers over the benefits Numerous other groups, such as the More Nutritious of organic foods by the official govern- Scottish Crop Research Institute, ment Advertising Standards Authority Center for Global Food Issues and the (ASA). According to this government European Science and Environment advertising watchdog group, Tes c o Forum, also challenge claims that Markets made numerous false and organic production methods are better The vast majority (85%) feel that the USDA Certified Organic seal would mean that foods with the label excelled in at least one of the five unfounded claims for the health, taste for the environment. Citing use of attributes tested (better in some way; safer; more healthy; better for the and price of organic foods. Citing organic copper-based fungicides and environment; and more nutritious). In fact, one-third (31%) feel the organic seal would mean all of the attributes, and over-half (52%) feel “unacceptable appeals to people’s other allowable practices, SCRI has the seal would mean at least four of the attributes.i v fears,” the watchdog agency also found called some organic practices “clearly another UK supermarket firm, Iceland unhealthful and damaging to the envi- using them is a practice that ensures Foods, guilty of making false and mis- ronment.” SCRI adds, “The balance of significant loss of nitrogen to the leading claims that foods derived from environmental advantages and disad- at m o s p h e r e as ammonia. It is ecologi- biotechnology crops were dangerous to vantages in the organic system is not cally unsound.” v win customers over to purchase higher cl e a r . SCRI explored organic environ- WebMD and CNN reported in ii i priced organic foods. mental claims and found that less March 2000 that even when organic The National Center suggests in intensive application of conventional foods begin to carry official federal releasing this survey that proposed methods achieves the same results. In seals, it doesn’t mean that the foods USDA guidelines for “organic” labels fact, the organic standard rec o m m e n - are more nutritious, citing Laurie and marketing will mislead consumers dation to compost manures before Demerit of the market research firm about perceived safety, nutrition, envi- The Hartman Group. Several years ronmental benefits and quality of ago, the firm found that people who organic foods. Additionally, the pro- bought organic produce and products posed federal guidelines will con- “Consumers mistakenly did so to support an e n v i r o n m e n t a l l y tribute to and perpetuate a history of sensitive approach to farming. inappropriate and unfounded product believe that organic- “ Today they’re saying it’s better for disparagement and “food fear” market- their health and that of their kids.” v i ing strategies intrinsic to the growth grown food provides Sir John Krebs, chairman of the UK and success of the organic and natural more vitamins and Go v e r n m e n t ’ s Food Standards Agency, products retail industry. told the BBC that consumers of organ- 3 The Organic Trade Association minerals, while there is ic food are wasting their money if they (O T A), the U.S. Department of no scientific evidence think they are buying something which Agriculture, the UK Government’s is safer or more nutritious than con- Food Standards Agency, numerous that this is true,” ventionally grown food and that there published research reports and aca- was no evidence that organic food was demic experts all conclude that organ- Laurie Demerit, The Hartman Group healthier than conventionally grown produce. He stated, “They’re not get- The majority of these comments were foods at the same price as convention- ting value for money, in my opinion electronic form letters and comment ally grown products. Additional and in the opinion of the Food cards generated by an aggressive and research demonstrates clear marketing Standards Agency, if they think they’re well-funded campaign organized, in opportunism by the organic industry to buying food with extra nutritional large part, to stop USDA’s proposal to take advantage of and promote con- quality or extra safety. We don’t have include irradiated and genetically sumer fears of conventional foods. the evidence to support those claims. engineered foods in the definition of The volume, shared content and I think the organic industry relies on organic as well as food grown using source of comments generated to image and that image is one that many treated sludge waste. i x USDA on this topic reflects the highly consumers clearly want to sign up to. While other federal agencies dis- organized and coordinated nature of Ho w e v e r , I do think (consumers) count or reject such form letters in the organic and natural food industry, should be aware of what they’re get- making public policy decisions, in natural products retailers, organic con- ting when they pay quite a substantial May 2000 the Secretary of Agriculture sumer organizations and organic trade premium in the shops.” v i i announced that due to the large num- association groups who lobbied USDA Why then the current growth in organic ber of these comments the proposed on the potential impact biotechnology food sales? Why do consumers believe rules would be rewritten and specifi- and other novel applications in agricul- higher-priced organic foods to be safer, cally exclude irradiation, sludge and ture may have on their growing share mo r e nutritious or better in other quali- genetically engineered seeds. of the consumer premium-priced food ties? What factors drive these beliefs and Finalized regulations are pending market. These efforts provide insight images and who is responsible? while other aspects of the proposed into the marketing strategies and use of This essay explores the history and rules are reviewed. non-profit front groups by organic and market forces that disparage non-organic, Over the years, organic growers natural products industry interests to conventionally grown foods and that are have adopted new technologies and leverage food scares. In addition, this specifically designed to create broad pub- techniques to improve their produc- demonstrates their collusion to protect lic misperceptions over food safety issues tion, while reducing reliance upon and expand their share of consumer in the U.S. and abroad. We conclude, chemical pesticides.x Many food purchases. based on several decades of well-docu- researchers and agricultural policy The chart (on page 5) and similari- mented evidence, that organic and natu- experts have expressed surprise at the ty in content of form letters suggests ral product retailers knowingly and with sudden outcry from organic trade, one public relations firm and their calculation engage in a broad range of advocacy and industry group to ban “non-profit” front organization fear-based marketing activities disparag- technologies which help reduce helped orchestrate a massive form let- ing safe and more affordable products to chemical use while increasing yields. ter campaign to USDA suggesting cer- win customers over to more expensive In an interview with Gourmet tain safe, tested and regulated agricul- “organic” and “natural” marketed prod- Magazine, plant biologist Dr. Roger tural practices were inferior, incom- ucts. These activities include direct mar- Beachy expressed surprise at the strong patible and unsafe for the public and keting programs, trade and consumer reaction from organic industry groups unfit for organic marketing. Fenton association lobby groups, and the estab- towards biotechnology crops. “We Communications and Environmental lishment, funding and coordination of expected that organic farmers would Media Services, both of whom repre- numerous tax-sheltered “non-profit” love it,” stated Beachy speaking of sent a wide range of organic and natu- groups to support these black marketing biotechnology-improved crops which ral products industry concerns, were campaigns. This “food scare” industry incorporate a naturally occurring soil successful in their efforts to dramatical- has evolved and expanded well beyond bacterium already used by organic ly alter proposed USDA regulations. food marketing to now include everything farmers in spray form to help plants Perhaps best known for orchestrat- from cleaning products to mutual funds, resist pests.x i Si m i l a r l y , Dr. Chris ing the false Alar pesticide scare in imposing a premium-based fear tax on So m m e r ville of the Carnegies Institute 1989 or the now debunked breast can- the consuming public. notes, “One of the ironies of the cur- cer fears associated with Dow Corning rent conflict between the proponents breast implants, Fenton has a long list Is organic marketing breaking and opponents of GMOs is that the of food and product scare campaign new ground in the ongoing cam- technology is inherently green…” xi i experience from which to draw sup- paign against conventional food? Numerous organic industry market- port for his clients’ marketing and x i v 4 In the Fall of 1998 the United States ing experts quoted throughout this fundraising efforts. Fenton’s other Department of Agriculture solicited report suggest that retailers fear losing organic and natural products clients comments for proposed regulations market share and the ability to charge who benefited from this campaign governing the use of the term “organ- consumers high premiums if consumer include: Honest Tea, Kashi Cereals, ic” for growing and marketing food. fears over GMO crops die down or if Ben & Jerry’s, Seventh Generation Over 275,000 comments were submit- organic farmers can use GMOs to pro- and the Body Shop. Some of his other tedv i i i, the most ever on any one topic. duce higher yielding, pesticide-free non-profit clients using the biotech- for search engine directories, orches- Top sources of form letters to USDA trating on-line demonstrations, and their public affairs firms affiliation launching cyber-attacks on competi- tors, targeting investors with negative Public Relations Number of information, proliferating advocacy Source firm affiliation form letters web sites and organizing bulletin boards and listserv’s the organic and Working Assets Fenton Communications 35,989 natural products industry and their affiliated interest groups control mas- Sustain USA Environmental Media 20,656 sive amounts of e-real estate influenc- Organic Trade Association Services (EMS) *partner ing public opinion. Rodale’s Publishing Fenton Communications 17,338 Organic interests aligned with envi- ronmental action and economic jus- Organic Farmers Environmental Media 11,667 tice groups, such as Greenpeace, the Marketing Association Services (EMS) *partner Foundation for Economic Trends and Save Organic Standards Environmental Media 11,349 Friends of the Earth – whose leader- Center for Food Safety Services (EMS) *partner ship, fundraising sources and public relations arms already had strong ties Mothers for Natural Law Environmental Media 4,594 xxi to the organic industry — used the Services *partner Internet’s new media and its inherent PureFood Campaign Environmental Media 2,885 anonymity and lack of scientific Center for Food Safety Services (EMS) *partner accountability, along side of tradition- al media to assert claims that biotech- Center for Science in Fenton Communications 1,977 nology, irradiation and other conven- the Public Interest tional practices might be unsafe for x i i i Source: USDA, Fenton Communication client list, press releases and various news reports. consumers, bad for the environment, * Environmental Media Services (EMS) was, according to numerous published reports, created by Fenton Communications. EM S partners participate in Fenton supported press conferences and other media and public relations activities. EMS shares harmful to the small farm economy or st a f f , location and other resources with Fenton Communications. EMS is a project of the Tides Center, which provides tax- deductible “donor directed” funds to EMS from such entities as Working Assets and other donor groups (many of whom are damaging to organic agriculture also Fenton Communications clients). In addition, The Tides Center’s 1998 IRS form 990 tax returns made available from through cross pollination or by Gu i d e s t a r .org note Fenton Communications as their second largest recipient of these tax-exempt funds in payment for services. increasing insect resistance to organic chemical pesticide applications.xxii nology-organic issue for tax- are nurturing activist offspring to influ- “Without Internet organizing, these deductible fundraising purposes ence the international policy agenda.” xvii protests [at international trade and include Greenpeace, Environmental In fact, according to North Carolina political meetings] couldn’t have hap- Defense, Natural Resources Defense State professor Thomas J. Hoban, pened,” says Tom Lalley of Council, Public Citizen, Consumers “This anti-biotechnology campaign is a Environmental Media Servi c e s . x x i i i Union, and the National key marketing strategy for the orga n i c Additionally, a U.S. Federal Trade Environmental Trust.x v in d u s t r y.” x v i i i Commission (FTC) and Food & Drug Combined, these Fenton for-p r o f i t Administration (FDA) investigation organic and natural products industry New tools, old techniques concluded in April of this year that clients represent over $1 billion in Supported by well-funded public organic and natural product retail annual sales, and these “non-profit” affairs operations, this campaign also web sites make questionable claims advocacy group clients have combined marks the new and powerful role the about the benefits of their products annual budgets well in excess of $500 Internet plays in supporting for-profit and the risks of their competitors mi l l i o n . xv i Over the past few years, these and other special interest group cam- products. The federal investigators’ groups have dedicated tens of millions paigns to market products and influ- 10-month campaign known as to advertising, advocacy and lobbying x i x ence public policy . These groups’ Operation Cure-All found that more campaigns to spread fears over such use and infiltration of this new tech- than 400 web sites made questionable issues as biotechnology, food irradia- nology at every level exceeds most claims that their products are useful tion, pesticides and treated sludge. other industry groups’ reported lob- to treat serious diseases and other A report by Farm Journal and bying or marketing efforts. Calling it health claims. For example, the FTC Ag W eb.com released in September 5 “brilliant propaganda,” The Harva r d investigation found that one Colorado 2000 exposes, “A growing gang of envi- Business Review reports that protest organic and natural food retailer ille- ronmental organizations is targeting groups like Greenpeace are gaining gally claimed that his products would modern agricultural practices for erad- the upper hand on the Internet cure cancer, AIDS and other illnesses. ication. Funded with tax-free dollars, protesting such issues as genetic modi- Natural Heritage Enterprises was establishment environmental groups x x fi c a t i o n . From controlling content found guilty of making false and mis- leading health claims to lure con- ral products interests on the Internet panies whose web sites offer informa- sumers to their products. x x i v could emerge as a significant factor tion and links suggesting health, envi- The investigation showed that many and concern for conventional outlets. ronmental or ethical concerns over of theses claims were akin to those One recent and clear example is biotechnology and other conventional made by snake oil salesmen in the the organic and natural products agriculture methods.x x v i i In the past 1800s; These new age huckster’s sales industry campaign against genetic year, organic co-ops, organic garden- wagons are now high-speed modems engineering of crops. American ing supply stores, and other organic and web sites. The government prose- organic retailers see the current pub- and natural product retailer fronts cutors noted these web sites used lic attention on genetically modified have spread anti-biotechnology fear “deceptive high-tech marketing tech- foods and the variety of food scares marketing messages in customer niques” to draw Web surfers or convey emanating from Europe as a key mar- newsletters, e-mail, catalogues and in- misleading messages. keting opportunity. store promotions. On the heals of a 1999 Consumers Union report on pesticide residues on produce, one leading organic retailer “Right now, Europe is freaking out about geneti- acknowledged the benefits of food scares. “Media scares always help sales cally altered produce. That’s an opening for U.S. at Bread & Circus,” claims store assis- tant manager, Dorothy Baumann. Such organic growers,” reports start people “questioning where 1999 Summit on Organic Food Technology, their food comes from,” and providing ( California organizer Gay Franklin. answers to those questions is one of the services that Bread & Circus stores offer, she adds.xxviii Bread & Circus is part of Using a similar tactic, Millenium At the 1999 Summit on Organic the Whole Foods Market food chain Organic, a U.K. enterprise which is not Food Technology in California organiz- which is currently supporting activist under the scrutiny of U.S. regulators, er Gay Franklin noted, “Right now, group efforts to label and ban foods promotes similar unsubstantiated Europe is freaking out about genetical- derived from biotechnology.xxix claims “behind the scenes” of their up- ly altered produce. That’s an opening The Organic Times, a leading organic front promotions. Using source coding for U.S. organic growers.” xx v i How that industry trade newsletter, published a me t a - t a g ’ s their web site display’s the “opening” is exploited in the U.S. and 1995 guide for organic retailers enti- words “Organically grown food is free Europe represents a window into a his- tled: “Answering Your Customers Food of chemical substances and the nutri- to r y of “black” marketing and product Safety Questions — Customers frequently tional value is far greater” when you disparagement by the $10 billion and ask retailers tough food safety questions mouse over their name. However, those growing organic retail industry in the and the answers can often translate into claims appear no where else in their U.S. and Europe. However, as this increased organic food sales.” The arti- published materials.xx v in d u s t r y seeks to expand its reach, cle provides talking points on alleged these marketing practices may backfire cancer causing chemicals and dangers The organic industry clearly and emerge as a key concern for con- posed to children from eating non- acknowledges the sales and sumers and a point-of-interest for gov- organic foods. The Organic Tim e s le a d s marketing benefits of food ernment regulators and watchdog off this Q&A primer noting, “Polls fear campaigns. groups that could negatively affect indicate that this anxiety remains a growth in the organic marketplace. contributing factor to sustained, dra- This campaign, including use of new This campaign has spawned a prolif- matic increases in organic food sales— 6 Internet marketing tools, establishes eration of anti-biotechnology web sites despite the fact that the label “organ- the potential for a new growth era for promoted by interest groups funded by ic” is not a food-safety claim. No where the organic food industry. As more the organic industry as well as by the in the Q&A are retailers provided and more food marketing retailers fo r -profit domains themselves. guidance or talking points on organic move to on-line sales, the current WholeFoods, Ben & Jerry’ s, and food safety claims or concerns.” x x x black marketing product disparage- Calvert Socially Responsible Leaders in the organic retail industry ment dominance of organic and natu- Investments are among dozens of com- clearly and publicly discuss their core growth strategy as moving customers administration and finances are man- away from conventional suppliers. The aged through the non-profit IATP Foods and Patagonia (organic cotton), number two organic retailer, Wild Oats administrative offices.x x x i i He a d w a t e r s , and their board members include such Market President Jim Lee remarked on Inc. has also received tens of thou- leading organic industry members as reg- these marketing goals comparing his sands in payments from the non-profit istered lobbyist Roger Blobaum, x x x i i i International Organic Accreditation store and the leading natural foods Tides Center. Co n v e n i e n t l y , Mark Service director Jim Riddle, and Rodale’s market Whole Foods: “They are very Ritchie is also noted as the registered Organic Magazine Editor Cheryl Long.x x x v i i similar in many respects. Both companies agent on the Tides Center’s incorpora- understand that the opportunity for grow t h tion filing documents.x x x i v is in taking the customer from the conven- Two other examples where for-p r o f i t The success or failure of these types tional supermarket.” xx x i interests and “non-profit” advocacy co- of marketing efforts to expand the mingle with little disclosure include acceptability of organic foods among “Non-profit” advocacy or for- organic and natural products industry mainstream consumers and to pressure lobbyist and Full Spectrum Health pres- profit marketing, the lines blur. non-organic retailers to mainstream ident Craig Winter and Andy Kimbrell In some cases the line between “non- their offerings of organic products over and his Center for Food Safety: profit” advocacy funded with tax the next few years may determine if the exempt funds promoting organic prod- organic food industry can emerge as a Cr aig Winters, for example, hosts the non- ucts (while attacking conventional com- defining new force in food and agricul- profit “The Campaign to Label Genetical l y petition), and for-profit organic ven- ture production. Limiting factors could Engineered Foods.” The Campaign, sup- tures becomes blurred. The conflicting include new regulatory or legal con- ported by dozens of leading organic retail- interests are rarely disclosed. The straints against black marketing prac- ers and product companies, including Institute for Agriculture Trade Policy, tices relegating this movement to local Whole Foods, United Natural Foods, Eden premium-priced specialty markets and for example, a Minnesota-based advo- Organic and Wild Oats Markets, warns of footnoted among the many passing cacy group with funding and strong ties the dangers of genetically modified foods food fads of the 20th century. to organic industry interests runs the and promotes organic alternatives. Many bi o t e c h - a c t i v i s t @ I AT P .org Internet list- of these retailers specifically market and Making the numbers, growth se r v, hosts the Consumer Choice advertise their products as GM O- f r e e .x x x v Council web site, and offers numerous In addition, Winter’s Full Spectrum health drivers and marketing focus other on-line information links and provides sales, marketing and other serv- Today the organic food industry is big resources to pro-organic, anti-conven- ices to the natural products industry. business in the United States and tional agriculture materials. These Winters also serves on the board of the Europe. Growth in overall sales for links, resources and Internet postings National Nutritional Foods Association, organic products rose 20 to 30 percent include information and instructions an organic and natural products industry annually over much of the past decade. on “direct action” campaigns that tar- or g a n i z a t i o n . x x x v i In the U.S., organic product sales repre- get conventional agri-business, research xx x v i i i Similarly the Center for Food Safety sent a $6 billion industry. Co m b i n e d facilities and government sponsored (CFS), which shares links with Winters’ with organic sales in Europe, this indus- field trial locations for vandalism. groups, hosts a range of anti-conventional tr y now tops $10 billion annually. Sales In addition, IATP ’ s founder Mark agriculture, anti-biotechnology, pro- growth in certain organic sectors in the Ritchie and IATP budget director Neil organic projects, advertising campaigns U.S., such as baby food, increased by Ritchie are frequent speakers, organiz- xx x i x and lawsuits. These include: the Turning more than 110% in 1998-1999. ers, and tax-deductible fundraisers for Point Campaign’s (co-hosted by IATP) This incredible growth in sales is protests against conventional agricul- multi-million dollar advertising program attributable to strong economic con- ture. At the same time, IATP notes on attacking biotechnology and conventional ditions, increased consumer environ- its IRS form 990 tax filings that they agriculture, the CropChoice coalition mental concerns and, in significant have a for-profit organic retail sub- alternative agriculture news service 7 part, to a variety of well publicized si d i a r y, Headwaters International, Inc. (co-hosted with IATP), and the Organic food and health concerns over chem- Neil Ritchie is also noted as a financial Consumers Association & Pure Food cam- ical pesticide use, mad cow disease partner in this for-profit organic coffee paigns against biotechnology and conven- tional production methods. CFS’s pro- and most recently genetically modi- firm, also called “Peace Coffee,” co- x l fied “Frankenfoods.” I n d e e d , located with IATP and whose web site grams note funding from Eden Organic polling and other market data sugge s t food scares to be the single most At the 1999 Organic Food Union by Fenton Communications, important factor in organic sales Conference in Scotland, growers were which also represents Greenpeace and growth. In the United Kingdom, where warned that the potential for growth in Friends of the Earth. Fenton also food scares are openly acknowledged as the organic market would be limited if shares staff and resources with their the single most important factor in the perceived “threats to safe food pro- “non-profit” arm, Environmental increased organic sales, media investi- duction are removed” and that the Media Services. Fenton recently gations have found evidence of price “potential to develop the organic mar- launched the “GE Food Alert” coali- gouging by organic retailers by as ket would be limited if the sector tion and consumer boycott campaign much as 169 percent during times of remains fragmented, consumers are to pressure food companies like heightened public concern.xl i satisfied with food safety and the furor Ca m p b e l l ’ s Soup and Kelloggs to aban- Whether the disparity between over genetic modification dies down.” don biotechnology-crop ingredients.xl v i i i inconsistent and lower sales growth According to conference speaker Fenton also represents such organic against steady and increased profits in Katy Hamilton, a food marketing con- and natural products industry interests the U.S. by such retailers as Whole sultant with Promar, “If the threats as Honest Tea, Kashi Cereals & Grains, Foods and Wild Oats is attributable to posed by cheaper conventionally-pro- Ro d a l e ’ s, Ben & Jerry’ s and the Body consumer price gouging has not yet duced products are removed, then the Shop. These groups are currently a been investigated. However, evidence potential to develop organic foods will driving force behind the biotech food suggests that organic retailer’s prices be limited.” x l i i The food trade journal scares in the U.S. and Europe. Fenton and profit margins far outpace sales Agra Europe x l i i i noted that recent con- Co m m u n i c a t i o n ’ s client list also increases. These double and triple sumer concern over food safety has sent include Working Assets, The Calvert digit growth in profits coincides with the popularity of organic food soaring. Fund for Socially Responsible Investing anti-biotechnology food marketing This trend also exists in the U.S. and several other ‘green’ products campaigns. Regardless, the issue of where several food trade journals companies and interests promoting food scares as a principal driver for report that the latest food safety scares and benefiting from the growth in organic marketing is clearly on the are having a direct impact on the market share linked to these scares.x l i x minds of U.S. and European organic growth of organic food product sales.xl i v That food scares increase organic in d u s t r y representatives. Marketing magazine recently noted sales is well documented and reported Examples of U.S. organic and natu- that consumer anxiety over food safety in natural products marketing and ral product retailers or suppliers who has fueled the dramatic rise in organic retail publications. Similar increases in have seen significant profit growth out- food sales, making this once niche organic sales occurred in the United pacing sales during the first year of the market the target of major retailers States following other food scares relat- biotechnology “frankenfood” scare and food manufacturers.x l v “Years of ing to watermelons (aldicarb), grapes ca m p a i g n s : black propaganda from the organic (cyanide) and peppers (aldicarb). fringe, backed by the BSE (Mad Cow) These scares were also promoted by tragedy, have had a perceptible effect Fe n t o n ’ s clients NRDC, Consumers Retailer Sales growth Profit growth on consumer views.” x l v i Union, Greenpeace, Environmental or supplier 1997-1998 1997-1998 According to reports in the Jo u r nal of Media Services and others.l Applied Economics and Public Relations Ho w e v e r , while overall sales grew, United Natural 15 percent 38 percent Qu a rt e r l y one of the first major increases the increases were not sustained at Foods in organic sales followed a 1989 CBS peak levels generated during and News 60 Minutes report on a Natural immediately following these food Ben & Jerry’s 20 percent 60 percent Resources Defense Council (NRDC) scares. In addition, these increases Whole Foods 24 percent 80 percent and Consumers Union indictment on were often limited to specific produce the safety of Alar, a growth hormone group sales and offset by sales decreas- Wild Oats 26 percent 65 percent xl v i i 8 used on apples. The demand for es in other organic produce areas sug- Hain Food 59 percent 208 percent organic produce soared in the months gesting limits to the total amount of Group following this report which was subse- disposable income consumers are will- quently discounted. ing to spend on premium priced Selection of publicly traded organic and natural product l i companies, sales and profit growth data from SEC filings. The Alar scare publicity was orches- or g a n i c . This suggests the need to sus- trated for NRDC and Consumers tain and maintain broad-based food scares to grow or just maintain organic noted by the Fenton example, contin- could increase their food costs by near- product market share. ue to leverage these claims for ly $4,000 to $10,977 per year.l i x Re c e n t l y , organic dairy sales increased sales.l v increased based on reports, also pro- In the wake of these foods scares, What the industry tells us about moted by Fenton Communications and major supermarket chains have organic foods its clients, linking biotechnology-devel- increased the availability as well as the “Healthier Holidays with Organic oped growth hormones used in the cost of premium priced organic offer- l i i Wine,” is the cover story for the da i r y industry to cancer. These claims, ings. A 1999 study by the Observe r November 1999 issue of Whole Life comprehensively discredited by scien- Newspaper found prices for “organic” Times found in organic and natural tists, health care providers, medical pro- offerings in some markets increased by food markets across the U.S. While fessional associations and government well over 100% as more consumers readers are tempted with the “spiritu- al” benefits of purchasing “ultra-organ- ic” or “cosmic” wine, the article fails to “If the threats posed by cheaper conventionally- mention any health distinctions or claims over conventional vintages to produced products are removed, then the potential back up their bold cover page.l x Reporting on the USDA proposed to develop organic foods will be limited.” organic rules CNN recently quoted a range of organic advocates who Katy Hamilton, a food marketing consultant with Promar claimed weight loss, relief of disease ( and increased health associated with their conversion to organic foods. True to form, Organic Trade regulators, have been widely reported began looking for organic or natural Association director Katherine in the New York Times, ABC Wor l d produce in the wake of the health DiMatteo used her air time to avoid News Tonight and dozens of other scares about genetically modified lv i any reference to organic benefits, mainstream media. Growth in the pre- fo o d . According to Consumers Report, while issuing warnings about conven- mium priced organic dairy sales attrib- in 1997 organic produce cost an aver- tional foods and pesticides focusing uted to this scare has spiked to more age of 57 percent more than conven- l v i i on their “impact on children, on than 100 percent a year despite the fact tionally grown foods. women and the elderly.” In response, that the Food and Drug Administration, Su r veys show consumer willingness Dr. Christine Bruhn, director of the the U.S. Secretary of Health and to pay the premiums required for Center for Consumer Research at the Human Services, and American Cancer organic food comes from the belief University of California-Davis noted, Society have all rejected these cancer that in doing so they protect the envi- l i i i “There is no evidence that is true. and safety claims. ronment while safeguarding their own l v i i i I hope (consumers) will understand Former U.S. Surgeon General C. health and that of farm workers. what organic means and make this Everett Koop addressed this dairy Research indicates limited elasticity in an informed choice.” lxi growth hormone issue, stating, consumer demand for premium Organic retailer Fresh Fields, “Unfortunately, a few fringe groups are priced organic products, noting that owned by Whole Foods, was required using misleading statements and blatant increases in spending in one area of to defend its advertising programs to falsehoods as part of a long-running cam- organic foods often is accompanied by the Commonwealth of Virginia’s paign to scare consumers about a perfect- decreased sales in other organic food Department of Agriculture and ly safe food. Their long-range goal is to areas. A significant limiting factor is Consumer Services, investigating prevent the benefits of biotechnology cost, as demonstrated by the USDA claims that Fresh Fields made false from reaching the public... it is neces- Economic Research Service, which and misleading claims about non- 9 sa r y to condemn these attacks on the reports that in 1995 an average house- organic beef to promote organic sales. safety of milk for what they are: base- hold with two parents and two chil- In response, Fresh Fields declined to less, manipulative and completely irre- dren at home spent $6,992 on food. l i v admit any wrongdoing, but they sponsible.” Still, organic dairy retail- Using the Consumers Union figures, a nonetheless pulled the offending ers and their public relations firms, as conversion to organic purchasing advertisements.lxii Recently a Scottish Crop Research foods taste better.lxv grown with organic tobacco. Santa Fe Institute report on organic food The Organic Trade Association’s Tob a c c o ’ s “American Spirits” are now noted, “Consumers should beware of “Campaign to Keep Organic, sold in natural products and health mission-directed disinformation from Organic” notes: “When you purchase food stores across the U.S. Their pressure groups… There are many claims organic foods, you’re creating a safer, organic cigarette brands are now made of organic food, most unsubstantiat- healthier food supply… Organic enjoying featured product placements ed and many unwarranted. For example, foods are grown without the use of on television sit-coms and with such common claims include: ‘Organic food is toxic and persistent chemicals, so the Hollywood icons as John Tra v o l t a , better for you.’” The Institute added amount of pesticide residues in our Leonardo di Caprio, Johhny Depp and that major reports, “found no evi- food, our soil, and our ground water super model Jerry Hall. Claiming, “It’s dence for or against the safety of is drastically reduced.” lxvi healthier for the farmer and healthier organic products. Conventional and Ir o n i c a l l y , the latest craze has some for the land,” organic certifying agents organic are equally safe. Further, the organic groups promoting cigarettes at the Carolina Farm Stewardship evidence given to them by the British Nutrition Foundation was that “the nutritional value of organic crops is Examples of recent organic food contamination likely to be the same as that of con- ventionally grown crops” lxiii Tesco Markets (UK) E. coli contamination Product recalled However, many organic product organic mushrooms found in May 2000 providers continue to advertise these Organic Valley Vegetable Soup botulism spores found in cans Product recalled claims, juxtaposed to “potential” dan- (United Kingdom) of soup in May 1999 gers of conventional or biotechnolo- gy-improved crops. For example, the Morningland Dairy Farms bacteria listeria monocytogenes Product recalled of Mountain View, MO (USA) found in June 1999 from 10 states August 2000 edition of Food & Wine organic cheddar cheese Magazine offers advertising from Eden organic soymilk claiming to be Morningland Dairy Farms (USA) listeria contamination Product recalled organic colby cheese found in May 1999 free from “GE” ingredients, “better tasting and more nutritious,” and sug- The Sprout People (USA) salmonella contamination found 19 people reported gesting their product will cure organic alfalfa sprouts in August – October 1999 food poisoning, product recalled “menopausal symptoms, protect against certain kinds of cancer, relieve Aussie Gold organic juice salmonella contamination 400 illnesses pain, and prevent osteoporosis.” Eden (Australia) found April 1999 reported also funds several anti-biotechnology Glaser Organic Farms salmonella and E. coli Products recalled activist campaign groups. Strawberry, Papaya, contamination in October 1998 New York State Consumer Apple Juices (USA) Protection Board spokeswoman Pat Odwalla brand juices (USA) E. coli outbreak in illnesses and one Rodriguez, testifying before a legisla- November 1996 49 child death reported tive committee noted consumers Product recalled should not take for granted that prod- Stueve’s Natural Milk salmonella contamination Product removed ucts labeled, “light,” “high-fiber,” “nat- and Cream products (USA) in May 1998 from stores ural” or “organic” are necessarily Organic parsley (GERMANY) citrobacter freundii 9 illnesses and one healthy foods.lxiv Yet, according to the contamination child death reported. industry-funded Organic Consumers Organic-labeled ‘’AltaDena salmonella contamination Products recalled Association, organic food is good for Dairies’’ products (USA) found in November 1986 our health because it provides “peak 10 Maine organic produce E. coli contamination One child death nutrition and maximum health bene- Summer 1992 and several fits.” In addition, they note that illnesses reported organic food can protect children Healthy Times Baby Oatmeal live insects found in packages Product removed from cancer-causing pesticides found (USA) in November 1997 from shelves in conventional food and that organic Brief History of Organic Agriculture
The beginnings of modern organic agriculture are generally organic industry and driving force behind marketing and, as attributed to Great Britain and the writings of Sir Albert Howard demonstrated in their role generating comments to USDA, pro- and Lady Eve Balfour in the 1940s. Howard based his views on tecting organic production in the U.S. research of Indian peasant traditions involving soil composting. In the late 1940s and into the 1950s, new agricultural inputs, pro- At the age of 17 Lady Balfour reportedly launched her efforts to duction techniques and farm chemicals boosted agricultural pro- compare various farming techniques in response to a publication ductivity at relatively low cost. The use of new agricultural chemi- in 1938 incorrectly predicting famine in Britain caused by agricul- cals and fertilizers ushered in the Green Revolution, dramatically ture practices of that time. While at odds over various aspects of increasing agricultural yields and making it possible to feed the their researchl x x v i i, their combined efforts helped establish the world’s increasing population, without having to use more and organic movement which espoused a philosophy that the health more land for agriculture. of plants, soil, livestock, and people are interrelated and that farming practices should work in harmony with nature, using For example, from 1950 to 1992, there was a 170 percent inputs produced on farms.l x x v i i i increase in food production from just one percent more land.l x x x i The success of this Green Revolution contributed to a lack of Antecedents of modern organic agriculture also include the bio- growth and mainstream interest in the organic movement. Low dynamic movement founded in the 1920s by Rudolf Steiner yield concerns in organic production today are still seen as a which placed significance on clairvoyance and spiritual forces in growth-limiting factor and “moderate to serious problem” for agricultural methods and production that restored the ‘life force’ over half of all organic farmers.l x x x i i of the soil. Biodynamic agriculture still exists today and is seen among purists in the organic community as meeting extremely However, the publication in 1962 of Rachel Carlson’s Silent high spiritual as well as ecological standards. In fact, Demeter Spring, a brilliantly written yet scientifically flawed critique of pes- Certified biodynamic foods command a premium price among ticide use in conventional agriculture, gave rise a renewed focus devotees over already premium priced organically grown pro- on organic agriculture, and increased legislative and regulatory duce. According to one expert, “Biodynamic farming makes ordi- oversight over farming.l x x x i i i nary organic farming look about as spiritual as strip-mining.” l x x i x Still, reported health concerns associated with eating organically In 1942, J.I. Rodale introduced organic agriculture in the U.S. with produced foods, as well as quality issues, lower yields, availabili- the publication of Organic Farming and Gardening magazine. ty and economic conditions in the 1960s and 1970s continued to Rodale advocated an approach to farming based in part on hold back organic market growth. Based on concerns over lack Biodynamic principals and understanding and working with natu- of standards in the organic food sector, several states and private ral systems rather than attempting to control them. Organic farm- organizations established certifying agencies and a variety of ing, both in the U.S. and Europe, has evolved primarily as a reac- organic standards in the mid 1970s.l x x x i v This helped launch a tion against conventional farming practices popularized by the more formal organic industry; however, real gains in market 11 introduction of high-intensity agriculture in the post-WWII era.l x x x share and the creation of an organized organic industry were Today, Rodale’s Publishing has grown to be a major player in the only realized in the late 1980s and 1990s. Association are promoting this as a way 1999 press release announcing the standards in 1998, “Organic does not to convert more growers to organic availability of a new line of organic mean safer. Organic does not mean production methods. products in mainstream supermarkets he a l t h i e r .” l x x i Several organic industry Enjoying annual sales in excess of noted, “Concerns about cancer and critics have also noted that in 1996, $75 million, Santa Fe Tobacco chief food safety are major factors” in the two of the biggest outbreaks of food executive Robin Sommers rationalized annual growth of organic foods.lxix poisoning from E. coli were traced to his product and promotions to the Most organic industry marketing organic lettuce and un-pasteurized Charlotte Observer noting, “People are materials do not make positive health apple juice sold in natural food stores. going to smoke, I don’t care what you claims specific to organic as much as Using a CDC listing of 488 confirmed do, so let’s make the best product for they cite food safety concerns associat- cases of E. coli outbreaks, critics have people who have chosen to smoke. We ed with non-organic foods. Organic linked nearly a quarter of these cases look at ourselves as doing something in d u s t r y representatives tend to be to consuming organic or natural foods. quite meaningful in addition to the careful in making outright health The CDC reports that the data does sheer capitalistic aspect.” l x v i i claims beyond defending organic not conclusively link the deaths to organ- When pressed on the issue of products to be as equally safe as con- ic food; however, in 1997, CDC epidemi- organic health and nutritional claims, ventionally grown foods, while clearly ologist Robert Tauxe told the “Journal of Organic Trade Association director pointing out unsubstantiated or vague the American Medical Association” that Kathy DiMatteo noted in an August concerns with their less expensive con- organic food may pose special problems, 1999 press release that, “Organic ventional counterparts. because it is “grown in animal manure.’’ stands for a production system that Again, Christine Bruhn, consumer La t e r , he wrote in JAMA that composting strives to work in balance with nature, food-marketing specialist at the standards for organic food weren’t strin- using methods and materials that are University of California, Davis notes, gent enough to kill bacteria.l x x i i of low impact to the environment. It “Organic farming is a philosophy of A recent paper by University of does not mean that organic foods are farming; it doesn’t guarantee greater California at Davis scientists, titled produced in a haphazard or unsafe sa f e t y .” Bruhn adds, “There’s no docu- ‘Misconceptions on Pollution and the manner.” DiMatteo has also noted, mented difference in nutritional con- Causes of Cancer’ reports that mortali- “There’s no body of scientific evi- tent.” People concerned about the ty rate from all cancers, except lung dence that states you can detect the nutritional content of their fresh foods cancers caused by smoking, has nutritional difference between a piece should pay more attention to how they declined in California since 1950 for of fruit grown one way and a piece of are stored than how they are grown, she all age groups except 85 and above. fruit grown another way.” lxviii added. “Temperatures are more impor- This decline coincided with the period Responding to DiMatteo’s com- tant than growing procedures. If a food of greatest growth in the use of pesti- ments that organic foods were not is to be refrigerated, refrigerate it or it cides on farms. The report also notes safer or more nutritious than conven- will lose some of its nutritional value.” that any residues of pesticides in food tional foods during a February 4, Bruhn and other experts note that are dwarfed by toxins which occur nat- 2000, interview, ABC News’ John foods produced conventionally or with urally in virtually all foods. Similar Stossel stated, “There’s a sales cam- biotechnology are equally safe — for findings have been published about paign to dream about. The organic the consumer, the farm worker and British diets by the Food Research industry admits organics are no more the environment. According to Bruhn, Institute in England.l x x i i i nutritious than other foods. But their the application of pesticides approved A study by The London Sunday customers still think it is.” for organic farming actually may be Tim e s revealed that compared with Consumer Reports notes that more harmful to farm workers and the or d i n a r y products, many processed “many customers are willing to pay environment than synthetic pesticides organic foods contain higher levels of extra for organic because they believe because the natural are apt to be short- fat, sugar and salt — all of which can 12 the food is safer and healthier.” er lived, and therefore may have to be cause heart problems. Paul Fawcett, of Cancer concerns are frequently and applied more often.l x x the British Heart Foundation, warned prominently cited in organic industry One organic industry newsletter that fads such as organic food could web sites, press releases and market- reports that Regina Hildwine of the damage people’s health. “We are not ing materials as a reason why con- National Food Processors Association advocates of organic food — the public sumers chose organic products. One stated during the debate over organic needs to be aware of the diet as a whole and get out of a faddish mentality.” lx x i v In 1999, organic agriculture produc- ic advocates claim that profitability will Proposals to increase food safety reg- tion still constituted less than one per- rise with consumer awareness and will- ulations over the organic food industry cent of the U.S. food supply.l x x x i x In ingness to convert.x c v i Ho w e v e r , many have been challenged in both the U.S. Europe, growth in the organic and nat- economists suggest lower prices for and Europe. The director of the ural food industry has recently climbed organic products if more farmers con- British organic industry lobby claimed by as much as 100% per year with vert and supplies increases.x c v i i a proposed food standards agency supermarket sales in Britain alone now Note the distinction between finan- would perpetuate the conflict of inter- surpassing $5 million a week.x c St i l l , cial success in the organic retail sector ests in their industry by giving too organic production levels in Europe and the economic situation for organic much weight to consumers.l x x v also remain at about 1 percent of total growers: According to the most recent In fact, often organic may not even food produced. reports published by the Organic be organic. Corroborating statements Indeed, the biggest growth in the Farming Research Foundation, nearly by the Organic Trade Association that organic industry has been at the retail half of all organic farmers gross less less than 50 percent of products mar- level. In the U.S., Whole Foods Markets, than $15,000 a year from their organic keted as “organic” are certified, one of the leading organic and natural products. By comparison, in 1996 the research published by Dr. Rossanne foods supermarket, noted 1998 sales of U.S. Department of labor reported the Philen of the U.S. Centers for Disease more than $1.3 billion with an increase average poverty threshold for a family Control found that many products in net income of more than 55 percent of four to be $16,036. Three-quarters “are promoted to the public as being over 1997.xc i Wild Oats, another organic of organic producers make less than ‘natural’ and ‘organic,’ when in fact, retail market leader, posted 1998 sales $5 0 , 0 0 0 . x c v i i i Clearly organic retailers most ingredients in these products are of more than $300 million with an are not passing along the benefits of from manufactured or chemically increase in net income of more than exponential growth implied by their derived sources.’’ l x x v i 70 percent over 1997.xc i i farmer friendly marketing efforts. The organic and natural products Su r veys show that organic farmers in The Emerging Organic Food industry is now tracked by Wall Street Europe — where the organic industry Industry Today investment firms as a distinct market is heavily subsidized and more highly and includes such big business names developed — do not receive the same Today the organic food industry is big as: Patagonia, US Nutraceuticals, benefits as other point-of-sale segments business in the United States and Uncle Ben’s Inc., Paul Newman’s of their industry’ s gains. According to Europe. Growth in overall sales for Own, Eden Foods, USANA, Horizon the Organic Advisory Service, an organic products has risen 20 to 30 Dairy, H.J. Heinz Company, Chiquita Agriculture Ministry body in the U.K., percent every year over much of the Brands, Celestial Seasonings, and Sysco fewer than 20 percent of farmers in past decade and organic product sales Corporation, among hundreds of oth- Britain switching to organic produc- is now a $6 billion industry in the x c i i i er s . Other major “natural” products tion methods see increases in profits. United States.l x x x v Combined with companies that target products to the This is due to lower yields, conversion organic sales in Europe, this industry x c i x organic market and are members in time and higher labor costs. now tops $10 billion in annual sales. organic trade groups include: Ben & In Denmark, where government Sales growth in certain organic sectors x c i v Je r ry ’ s and The Body Shop. subsidies for organic growers are in the U.S., such as baby food, among the highest, fewer than two increased by more than 110% in 1998- Sharing the wealth? percent of farmers polled wanted to 19 9 9 . l x x x v i Some pro-organic activist switch to organic based on fears of groups have recently questioned if this One key reason cited by consumers diseases and uncontrollable weeds, growth has corrupted the values of the for organic purchases, in addition to falls in income due to smaller yields, organic movement.l x x x v i i health and environmental concerns, is and a possible lack of markets for The Organic Trade Association pre- support for small farmers. Organic their products. In addition, they dicts organic industry sales in the U.S. advocates report that organic farming 13 reported that they did not like the will grow to more than $6.6 billion this in the U.S. is becoming more prof- idea of working harder with more ye a r .l x x x v i i i Despite the rise in consumer itable as consumers are willing to pay x c v employees to meet the more labor- demand an a equal increase in organic a premium for organic foods. Wh i l e intense production methods required farming, organic production rates have USDA data suggests it still lags behind c by organic standards. not increased in line with sales growth. conventional farm profitability; organ- Recently farming groups in California state regulations, for exam- can be accredited. The board has Sweden, joined by the Royal Academy ple, prohibit use of synthetic materi- defined organic agriculture as: of Agriculture and Forestry, criticized als, while Texas regulations allows the efforts to increase organic production use of some synthetic materials. cv “(A)n ecological production manage- as a politically motivated effort that A USDA science report concluded ment system that promotes and will hurt consumers and create an that there was no universally accepted enhances biodiversity, biological cycles oversupply that hurts farmers. This definition of “organic farming.” Their and soil biological activity. It is based protest came in the wake of a report report stated: on minimal use of off-farm inputs that Sweden’s number one organic “The organic movement represents a and on management practices that dairy producer, Arla, now produces 40 spectrum of practices, attitudes, and restore, maintain and enhance ecolog- percent more organic milk than it can philosophies. On the one hand are ical harmony. ‘Organic’ is a labeling sell. The result has been a decline in those organic practitioners who would term that denotes products produced profit as organic milk is sold as con- not use chemical fertilizers or pesti- under the authority of the Organic ventional at lower prices. c i cides under any circumstances. These Foods Production Act. producers hold rigidly to their purist “The principal guidelines for organic How is “Organic” Agriculture philosophy. At the other end of the production are to use materials and Defined? spectrum, organic farmers espouse a practices that enhance the ecological Furthering Public Misperceptions more flexible approach. While striving balance of natural systems and that to avoid the use of chemical fertilizers integrate the parts of the farming sys- Unlike other agriculture practices and pesticides, these practitioners do tem into an ecological whole. Organic such as use of biotechnology- not rule them out entirely. Instead, agriculture practices cannot ensure improved crops, organic agriculture when absolutely necessary, some fertil- that products are completely free of production is not currently regulated izers and also herbicides are very residues; however, methods are used to by any government agency and has no selectively and sparingly used as a minimize pollution from air, soil and independent safety oversight body. second line of defense. Nevertheless, water. Organic food handlers, proces- Individual states and certifying organi- these farmers, too, consider themselves sors and retailers adhere to standards zations decide what is required to to be organic farmers.” c v i that maintain the integrity of organic meet organic standards under their The rise in profitability of organic agricultural products. The primary jurisdiction. Although the standards products in the past decade has made goal of organic agriculture is to opti- are becoming more uniform across a nationally regulated standard for mize the health and productivity of the nation, there is no regulated or the term “organic” important to pro- interdependent communities of soil, c v i i consistent definition for what consti- tect both consumers and producers. life, plants, animals, and people.” tutes organic agriculture. In fact, The Organic Foods Production Act according to the Organic Trade (OFPA) of 1990, adopted as part of Association, half of all food sold today the 1990 Farm Bill, requires USDA to ciii as organic is not even certified. develop national standards and regu- In most cases, organic farming is lations for organically produced agri- defined by what organic farmers do cultural products and to assure con- “If you ask people to not do or include rather than what sumers that agricultural products mar- they do include or how they do pro- keted as “organic” are consistent with c i v actually sit down and duce their products. these standards. The OFPA requires Unlike other food label items, all agricultural products labeled as define what organic organically branded food is defined “organically produced” to originate by production and processing meth- from farms or handling operations means, you get all kinds ods created by a state or private certi- 14 certified by a state or private agency fying group and not end-product stan- that has been accredited by the of different answers.” dards or nutritional composition. USDA. To date, the 1992 appointed U.S. Department of Agriculture Indeed, foods labeled organic may USDA National Organic Standards Secretary Dan Glickman announcing still include a wide range of produc- Board has yet to implement any stan- tion inputs and techniques that differ proposed rules regarding organic dards against which certifying agents c i i from various certifying organizations. agriculture in 1997. Still, the International Federation of Variances in standards and practices has caused Organic Agriculture Movements defini- tion for organic standards, also in consumers in Europe and the U.S. to call for “draft”, would not necessarily consider foods produced under the proposed tighter regulations of the organic food industry. USDA definition to be organic. This disagreement highlights some of the ( problems within the organic industry in establishing uniform standards against tification systems, farms are inspected cv i i i which they can be regulated. ■ su l f u r to make sure they comply. However, In the U.S., more than 4,000 farm- ■ py r e t h r u m despite wide-spread public belief, stan- ers and 600 handlers are certified by ■ rya n i a dards and certification do not certify the safety, nutritional content or actu- some 33 private or 12 state agencies. ■ sa b a d i l l a Each certifying agency has its own al environmental benefit of organic ■ colloidal phosphate, standards and identifying marks. No production over other methods. cx industry-wide agreement exists about ■ rotenone (a 500-year-old rat poison) For example, most existing state which substances should be permitted and private certification agency or prohibited for organic production organic standards restrict the use of and handling. A study published by the University raw manure by imposing certain con- of Ten n e s s e e ’ s Energy, Environment, ditions on its use on land used to Interpreting this standard by the and Resources Center and Oak Ridge grow crops intended for human con- various certifying organizations allows National Laboratory reported that sumption. for a range of inputs and practices organic growers, on average, spray 100 The proposed federal rule would that includes allowing foods labeled times more natural pesticide per acre provide for the use of raw manure on organic to include up to five percent than a conventional grower who uses a land that is not used to grow crops for of their ingredients to be of non- cx i i synthetic pesticide. human consumption. According to organic origin (produced using syn- According to The Journal of the the USDA, application of manure, thetic chemicals) and allows for vari- American Dietetic Association, FDA sur- either composted or applied directly ous applications of non-synthetic veys find similar pesticide levels in both to a field is a common practice in chemicals or “natural” pesticides. This organic and non-organic foods. Even organic agriculture. Concern over this wide range of non-synthetic chemicals when organic foods are grown according practice has been raised as the result and inputs includes: to state regulations, runoff water, soil of recent reports linking it to out- shifting, and pesticides floating in the air breaks of salmonella, E. Coli 0157, ■ micro-bacterial sprays (some organic may still result in pesticides getting on Citrobacter freundii and other food B.t. sprays formulations include sodium fo o d . cx i i Other studies by consumer and related poisonings. hydroxide, sulfuric acid, phosphoric government groups in the U.S., Canada ABC News has reported that inde- acid, methyl paraben, potassium phos- and Europe note similar pesticide residue pendent studies found an increase in ci x phate, and sodium sulfites.) , acid levels found on organic and convention- bacterial contamination from certain treated trace minerals (including: zinc, ally grown produce.cx i i i The Organic organically produced produce over boron, copper, iron, manganese) Alliance specifically notes that “certified that of similar conventional, non- ■ su l f i t e s organic is not pesticide free.” cx i v organic products.c x v The Centers for ■ sodium nitrat e Standards for monitoring compli- Disease Control estimate that as many ■ insecticidal soaps ance with the principles of organic as 250 deaths and 20,000 illnesses per agriculture and for the safety of the year are caused by this strain of E. coli ■ plastic mulch system are part of most organic certifi- found in pig manure used by organic 15 ■ green manures cation systems. The standards usually farmers. The former chief of the food ■ chlorine washes require soil buildup efforts and the borne and diarrheal disease branch ■ antibiotics to treat infections use of on farm inputs and limits or the CDC and, Lester Crawford, direc- restricts inputs that are determined to tor of the Center for Food and ■ liquid copper be inconsistent with organic princi- Nutrition Policy at Georgetown pals. Under most current organic cer- Un i v e r s i t y , have both noted concern over risks associated with eating organ- With current organic yields at 60 to 80 ic food if farmers “use improperly percent of conventional agriculture composted manure.” As part of efforts this will require significant break- to address food safety issues regarding “While we understand throughs in organic production meth- the use of manure, the proposed rule ods. Organic methods requiring more requests public input on guidelines for organic is important, it’s land to produce less food in the face the use of raw and composted livestock of growing world hunger will need to manure in organic production of food more realistic for farm- be addressed. Simply meeting conven- intended for human consumption.c x v i tional yields will not meet the estimat- ers to adopt sustainable ed 50 percent increase in demand for Conclusion food production in the next 20 years. According to Nestle executive vice Historically, the organic industry has agricultural practices.” president Michael Garrett, three times grown and thrived as a result of food Organic Trade Association member more food will be needed by 2050 to scares and the provocation of con- Ben & Jerry’s position statement on feed the world’s expected nine billion sumer distrust of the safety and quali- why they do not use organic ingredi- people. Garrett notes, “organic farm- ty of conventional food production. ents in their ice cream.c x v i i ing could feed four billion at best.” cx v i i i Today, organic retailers are engaged Organic retailers will face increas- in a well-funded and executed, range sizes that sustainable agriculture inte- ing scrutiny from regulatory bodies, of product disparagement and food grates three main goals — environ- the media and conventional retailers fear promotions. This is found directly mental health, economic profitability, as they attempt to maintain their in their own marketing programs as and social and economic equity. growth and capture more of the con- well as indirectly in funding and sup- The organic industry is challenged ventional market. As demonstrated porting activist organizations who by at least two of these goals. The by recent actions in the U.K. by the attack the safety of conventionally organic industry needs to increase Advertising Standards Board, and in grown foods. Larger players and indus- consumer demand for organic prod- the U.S. by the Federal Tr a d e tr y coalition groups tend to avoid liti- ucts while ensuring growth in supply Commission; organic retailers are gation and negative regulatory expo- does not reduce premium prices nec- being exposed for misleading mar- sure by funding “independent” activist essary to support the organic produc- keting campaigns, false benefits groups who make unsubstantiated ben- tion chain. Economic studies have claims, and promoting unfounded efits claims for organic foods and make shown that growth in certain sectors fears over conventional products to misleading or false risk statements of the organic industry coincide with gain new customers. associated with the conventional com- reductions in other sectors suggesting Absent new data to demonstrate the petitors offerings rather than include a limited consumer economic elastici- benefits of premium-priced organic them as part of their direct marketing ty for these premium priced products. products, new higher yielding produc- programs. And, these organic retail Producers will be challenged as tion practices and universal consumer interests are driving private and USDA- increased media attention on organic oriented certification that ensures proposed certifying standards and mar- food marketing efforts highlight the safety of these products, the organic keting programs principally to support lack of scientific data to support health market today is built on a house of premium priced market factors that and safety claims. Organic producers cards whose foundation is exposed to are often in conflict with best sustain- are also at risk of losing market share consumer backlash, competitor libel able agricultural practices, consumer with future incidents of product con- litigation and regulatory challenges. and farmer interests. tamination, recalls or food poisonings. The continued failure to address these Clearly maintaining a distinction The organic industry also is at risk of challenges with changes in proposed between practices of organic growers consumer backlash against organic organic standards, the elimination of 16 versus those of organic and natural retailers’ use of unfounded food scares “black marketing” programs, increases product retailers is important in eval- to generate increased sales. to organic productivity and increasing uating the marketing practices of the Organic producers will be chal- consumer economic elasticity indi- organic industry. The Sustainable lenged with growing demands associat- cates that the current growth rates Agriculture Research and Education ed with increasing populations to being enjoyed by the organic industry Program at the University of increase crop yields and reduce the may never exceed its current one per- California, Davis (UC SAREP) empha- amount of land under cultivation. cent total market share. i Denny, Neill, Why organic has the power to alter all xv The Fenton promoted “GE Food Alert” coalition web xxv Source coding from website: food marketing, Marketing, April 29, 1999 site: www.GEFoodAlert.org, solicits on-line contributions selbnet.co.uk/mil/org.html Pg. 19; ISSN: 0025-3650 for the organizations promoting this scare. In addition, xxvi Rodebaugh, Dale, Organic Farm Seminar to Discuss in the Spring of 2000 Environmental Defense engaged a ii National Center for Public Policy press release: source: Foreign Competition, SAN JOSE MERCUR Y, May 10, direct mail fundraising program using reports of that www.nationalcenter.org 1999 biotechnology crops may harm Monarch butterfly popu- iii Daily Mail Reporter, “So Hard to Swallow,” The Daily lations as an “urgent” reason to contribute to their xxvii Issues and links sections of WholeFoods.com, Mail, pg. 35, May 10, 2000; and, Meikle, James, “Anti- organization. BenandJerrys.com and Calvert.com. GM claims misleading,” The Guardian, pg 13, May 10, xvi Sources include: WORKING ASSETS PRESS xxviii Brown, Judson, “Supplying Info Buyers Demand,” 2000 RELEASE, WORKING ASSETS BEGINS NEW MILLEN - Daily Hampshire Gazette, pg. D1, March 8, 1999. iv National Center for Public Policy, The study was con- NIUM BY CELEBRATING 15 YEARS OF SUCCESSFUL xxix The Campaign to Label Genetically Engineered ducted via telephone omnibus on May 12 through May “SOCIAL CHANGE” BUSINESS AND $20 MILLION IN Foods press release, May 15, 2000, THE CAMPAIGN 16, 2000 by ICR. A total of 1,029 adults across the DONATIONS TO PROGRESSIVE NONPROFITS, SAN TO DISTRIBUTE 250,000 “TAKE ACTION PACKETS” United States were surveyed; 508 males and 521 females. FRANCISCO, (January 5, 2000) cites 1999 revenues TO RALLY SUPPORT FOR LABELING GENETICALLY The results were weighted to reflect the US population. exceeding $140 million; Ben & Jerry’s Home Made 1999 annual report filed with the Securities Exchange ENGINEERED FOODS, www.TheCampaign.org. Note: v MacKerron, D.K.L., et al., Organic Farming: Science Commission noting revenues of $572 million in 1999; Craig Winters is a lobbyist and marketing consultant to and Belief, Scottish Crop Research Institute, 1999 Body Shop press release on 2000 annual report, Annual the organic and natural products industr y. Winters affil- Annual Report, found at: www.scri.sari.ac.uk; Bate, results for the 52 weeks to 26 February 2000 and The iations and clients are noted at his personal web site Roger, Separating Fact From Fiction, BBC Online, May Body Shop partners with SOFTBANK Venture Capital to http://www.CraigWinters.com. 2000, found at: www. Error! Bookmark not defined.; and form new e-commerce enterprise xxx Slama, Jim, Answering your customers food safety Center for Global Food Issues, Farming to Sustain the questions, Organic Times, September 1995, Environment, May 1996. Annual Results: Worldwide retail sales up 3% to £634.6 million; and annual reports of Greenpeace, NET, http://www.nfm-online.com/OT/Sep_95/OT_cert_ vi Cosgrove, Christin, Living the ‘organic’ food lifestyle, Environmental Defense, Consumers Union and NRDC. corner.html March 23, 2000, xvii xxxi Nachman-Hunt, Nancy, “Wild Oats Market http://www.cnn.com/2000/FOOD/news/03/23/organ- Klintberg, Patricia P., “Gangs Against Modern Reinventing Itself” Organic and Natural News, July 2000, ic.wmd/ Agriculture:Tax-free money takes anti-agriculture move- ment to the streets,” Farm Journal, September 2000. ww w. o r g a n i c a n d n a t u r a l n e w s . c o m / a r t i c l e s / 0 7 1 f r a n k . h t m l vii Crofts, Rachael, Organic Food No Safer or Healthier: xviii xxxii Diaz, Kevin, Ritchie’s run for council has him in Expert, PA Newsfile, September 1, 2000. Hoban, Thomas J, Countering the myths of biotechnology acceptance, Grand Forks Herald, August DFL hot seat, Star Tribune (Minneapolis, MN), viii Warren, Michael, Organic advocate now inside 8, 2000. September 2, 1997. Article notes “He’s also involved in a U.S.DA, vows changes, Associated Press, August 3, 1999 startup business, Headwaters International, which mar- xix Lambrech, Bill, Biotechnology companies face new kets coffee….” According to the Minnesota Secretary of ix Organic Consumer Association “Pure Food” cam- foe: The Internet, St. Louis Post Dispatch, Sunday, 19 State (record DCX8Y445) Headwaters International is paign found at http://www.purefood.org and The September 1999. located at 2105 First Avenue, Minneapolis, MN which is National Campaign for Sustainable Agriculture
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