Marc Kaufman / Washington Post 21dec00
The federal government yesterday established the country's first official definition of "organic," giving consumers a reliable way to buy fruits, vegetables, meat and dairy products produced without the use of pesticides, genetic engineering, growth hormones or irradiation.
The Department of Agriculture unveiled the standards after a contentious decade-long debate between proponents of organic farming and the conventional food industry, which feared that an official government "organic" label would unfairly stigmatize their products.
The final version endorses many of the positions promoted by the organic food industry and acknowledges the growing popularity of organic foods, which are promoted as less damaging to the environment and perhaps of higher quality. The U.S. organic food industry sold $6 billion in products last year only 2 percent of the nation's food sales but is growing much faster than the conventional food industry.
The "USDA Organic" seal will begin showing up on products by next summer, replacing the hodgepodge of unofficial and state definitions of "organic." The next administration could challenge or try to modify the new rule, but that is considered unlikely because it has gone through an extensive, public rulemaking process.
An earlier version allowed conventional farming practices such as spreading sewage sludge as a fertilizer and using pesticides and biotechnology to control weeds and pests, but it was met with unprecedented protests from organic producers and consumers.
"I am proud to say these are the strictest, most comprehensive organic standards in the world," Agriculture Secretary Dan Glickman said.
Although Glickman embraced organic foods yesterday saying he sometimes buys organic frozen foods he made clear that the new organic seal does not imply that foods are either safer or more nutritious.
"The organic label is a marketing tool," he said. "USDA is not in the business of choosing sides, of stating preferences for one kind of food, one set of ingredients or one means of production over any other."
The conventional food industry has fought many provisions of the organic proposal since legislation mandating a national organic standard was passed by Congress in 1990. Just recently, the National Food Processors Association asked the USDA to require that the organic labels include a statement saying the products are no more safe or nutritious than conventional foods. In the end, the USDA did not require the disclaimer but did modify the label design by dropping the traditional USDA shield and eliminating "certified" from the seal.
Yesterday, the Grocery Manufacturers of America said it still opposes many aspects of the organic rule and wants the department to monitor how consumers understand the new label.
"If there is evidence that consumers believe it means they are buying a safer product, then we want the USDA to pull the seal because the seal has nothing to do with food safety," said Susan Ferenc, the group's vice president for science and regulatory policy.
Katherine DiMatteo, executive director of the Organic Trade Association, agreed that an organic label does not promise a necessarily safer product, although consumers often believe that it does. But she said that because of the specific practices that organic farming employs, it can fairly claim to produce food in a way that is safer for the environment.
"There are no pesticides or low-level antibiotics in organic farming, and you don't see the vast fields of one single crop with organic, either," she said. "Organic farming does not harm the environment like some conventional farming, and we think there is a safety and health benefit to that."
To qualify for the organic seal, a farmer must follow a detailed blueprint for how crops are planted and grown, how animals are raised and how waste is treated. The approach emphasizes the raising of crops in a "sustainable" way that conserves soil and encourages biodiversity; and animals are to be raised outdoors as much as possible and with access to pastures to ensure their welfare.
The National Organic Program will not include inspectors to examine apples or cheeses to determine whether they are organic but will rely instead on certifying agencies that the USDA will accredit.
Most of the 12,200 organic farmers nationwide are small-scale producers. The new label is expected to be a particular boon to organic farmers who want to export their products. There is fast-growing demand for organic food in Europe, but the absence of a single national standard has kept the export level low.
Glickman announced the new standard at a recently opened Fresh Fields supermarket near 15th and P streets NW, the second Fresh Fields to open in the Washington area since summer. The stores are owned by Whole Foods Market Inc., which specializes in organic and health foods nationally. Despite its premium prices, the chain has grown dramatically in recent years, and its stock price has remained high despite the recent Wall Street downturn.
"A lot of boomer moms are willing to pay the extra for organic products, and so it's gaining market share," said Mark Husson, who analyzes the food industry for Merrill Lynch in New York. He said Whole Foods sales have grown 8 percent over the past year, "and no other food retailer is growing like that." He speculated, however, that consumers might be less likely to buy more costly organic foods if the economy weakens.
About 0.2 percent of U.S. cropland was certified as organic in 1997. (In Europe, where farmers can get government help converting to organic agriculture, 1.5 percent of farmland is organic.)
DiMatteo said she expects that organic food sales will increase from their current 2 percent of sales to 5 percent within 10 years, especially now that many large food companies are buying organic producers and encouraging more organic farming.
"This whole movement is being driven by consumers, who like the way that we produce our foods," she said. "With this national standard, we're on a sound base to grow a lot more."
Labeling: New universal standards, a decade in the making, are expected to boost sales, exports and the range of mainstream products.
The U.S. Department of Agriculture on Wednesday
released the first universal organic production and labeling standards, a decade
after the federal government was given the task of defining organic food.
The standards are expected to stimulate the
appetite for organic foods in the U.S., boost food exports and encourage major
manufacturers to begin rolling out new organic products for mainstream
supermarkets over the next few years.
The rules, which replace a patchwork of 49
differing state and private certification standards, are intended to take the
confusion out of organic products for consumers and assure them of a universal
standard of quality for produce, meat, eggs, dairy products and processed foods
bearing the USDA Organic seal.
"The organic standards offer another choice
in the marketplace," said Agriculture Secretary Dan Glickman, standing in
the aisles of a natural foods supermarket in Washington. "Those who want to
buy organic can do so with the confidence of knowing exactly what it is that
they're buying."
Food meeting the new standards will begin hitting
supermarket shelves next summer, and the USDA seal will make its first
appearance on labels in 2002, agriculture officials say.
The new rules specify that products labeled as
"organic" or "100% organic" cannot be produced using
pesticides, chemical fertilizers, genetically altered ingredients, sewage
sludge, irradiation, growth hormones or antibiotics.
The organic label is not a guarantee that these
products will be completely free of traces of genetically engineered ingredients
or pesticides that may find their way into certain crops, Glickman said. It
guarantees only that these products are cultivated using organic farming
methods.
And, Glickman added, the label is not an assurance
that these products are safer or more healthy than conventional products.
Only a few changes were made in the final round of
revisions, including a provision raising the percentage of ingredients in food
labeled "made with organic ingredients" to at least 70%, the European
standard.
Organic farmers and food processors will have 18
months to comply with the new standards, which will be administered by state and
private agencies accredited by USDA.
Of the estimated 12,000 organic farms in this
country, only about half are now certified, officials say.
The organic standards have been under development
and mired in public controversy since President-elect George W. Bush's father
was in office. More than 275,000 public comments were received since the first
set of standards was proposed in 1997, and the final text of the rules spans 500
pages. But now all sides seem satisfied with the result.
'The USDA has done an excellent job of tightening
up the rule so the inconsistencies [have been ironed out] and the gaps
closed," said Katherine DiMatteo, executive director of the Organic Trade
Assn., which represents organic growers and handlers. "Not only will U.S.
consumers benefit, but U.S. trading partners will have the reassurance that
products certified as organic have met strict criteria and certification agents
have been approved by USDA."
Demand for organic products has been growing at
about 20% a year since 1990. U.S. retail sales this year are expected to reach
$7.76 billion, according to industry estimates. Although that is still just a
tiny fraction of the $460-billion grocery business, supermarket officials say it
is one of their most profitable and fastest-growing niches.
"It's a key driver of our [sales] growth
going forward," said Gary Rhodes, a spokesman for Kroger Co., the country's
largest supermarket chain. By February, Cincinnati-based Kroger, which owns the
Ralphs chain of markets in California, plans to have natural foods sections in
400 of its 2,338 U.S. stores. It now stocks between eight and 45 organic items
in its produce departments.
Several of the country's largest food makers have
made major investments in organic or natural foods companies over the last two
years, including Kellogg Co., H.J. Heinz Co., and General Mills Inc.
Analysts say that the new universal standards,
coupled with a continued surge in sales, should persuade food makers to begin
rolling out new products and expanding their distribution to mainstream
supermarkets.
What's Organic?
Food labeled "organic" or "100%
organic" cannot be produced using any of the following:
Processed food made with at least 70% organic ingredients can use the phrase
"made with organic ingredients" on its label.
For example, soup made with at least 70% organic
materials and only organic vegetables could be labeled "made with organic
peas, potatoes and corn" or "soup with organic vegetables."
The percentage of organic ingredients may be
listed on products. However, packages not meeting other requirements will not
display the USDA organic seal.
Processed products less than 70% organic can
identify the specific ingredients that are organic only in the ingredients list.
Source: USDASeal will appear on organic foods
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