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The Organic Monopoly and the Myth of 'Natural' Foods: How Industry Giants
Are Undermining the Organic Movement
Thursday, July 9, 2009 by CommonDreams.org
by Ronnie Cummins
http://www.commondreams.org/view/2009/07/09

The Organic Alternative: A Matter of Survival 

After four decades of hard work, the organic community has built up a $25
billion "certified organic" food, farming, and green products sector. This
consumer-driven movement, under steady attack by the biotech and Big Food
lobby, with little or no help from government, has managed to create a
healthy and sustainable alternative to America's disastrous, chemical and
energy-intensive system of industrial agriculture. Conscious of the health
hazards of Big Food Inc., and the mortal threat of climate change and Peak
Oil, a critical mass of organic consumers are now demanding food and other
products that are certified organic, as well as locally or regionally
produced, minimally processed, and packaged.  

The Organic Alternative, in turn, is bolstered by an additional $50 billion
in annual spending by consumers on products marketed as "natural," or
"sustainable."  This rapidly expanding organic/green products
sector--organic (4% of total retail sales) and natural (8%)--now
constitutes more than 12% of total retail grocery sales, with an annual
growth rate of 10-15%.  Even taking into account what appears to be a
permanent economic recession and a lower rate of growth than that seen over
the past 20 years, the organic and natural market will likely constitute
31-56% of grocery sales in 2020.  If the Organic Alternative continues to
grow, and if consumers demand that all so-called "natural" products move in
a genuine, third party-certified "transition to organic" direction, the
U.S. will be well on its way to solving three of the nation's most pressing
problems: climate change, deteriorating public health, and Peak Oil. 

Sales statistics and polls underline the positive fact that a vast army of
organic consumers, more than 75 million Americans, despite an economic
recession, are willing to pay a premium price for organic and green
products. These consumers are willing to pay a premium because they firmly
believe that organic and natural products are healthier, climate
stabilizing, environmentally sustainable, humane for animals, and well as
more equitable for family farmers, farmworkers, and workers throughout the
supply chain.  

Many of the most committed organic consumers are conscious of the fact that
organic food and other products are actually "cheaper" in real terms than
conventional food and other items-since industrial agriculture's so-called
"cheap" products carry hidden costs, including billions of dollars in
annual tax subsidies, and hundreds of billions of dollars in damage to our
health, the environment, and climate. Strengthening the argument for
organic food and farming, scientists now tell us that it will take a
massive conversion to organic agriculture (as well as renewable energy,
sustainable housing and transportation) to drastically reduce
climate-destabilizing greenhouse gases in the atmosphere to 350 parts per
million and to cope with the advent of "Peak Oil," the impending decline in
petroleum and natural gas supplies.  

Organic food and a healthy diet and lifestyle are obviously key factors in
preventing chronic disease, restoring public health, and reducing
out-of-control health care costs. While in 1970, U.S. health care spending
appeared somewhat sustainable, totaling $75 billion, the Centers for
Medicare and Medicaid Services project that by 2016, health care spending
will soar to over $4.1 trillion, or $12,782 per resident.

Millions of health-minded Americans, especially parents of young children,
now understand that cheap, non-organic, industrial food is hazardous. Not
only does chemical and energy-intensive factory farming destroy the
environment, impoverish rural communities, exploit farm workers, inflict
unnecessary cruelty on farm animals, and contaminate the water supply; but
the end product itself is inevitably contaminated. Routinely contained in
nearly every bite or swallow of non-organic industrial food are pesticides,
antibiotics and other animal drug residues, pathogens, feces, hormone
disrupting chemicals, toxic sludge, slaughterhouse waste, genetically
modified organisms, chemical additives and preservatives,
irradiation-derived radiolytic chemical by-products, and a host of other
hazardous allergens and toxins. Eighty million cases of food poisoning
every year in the US, an impending swine/bird flu pandemic (directly
attributable to factory farms), and an epidemic of food-related cancers,
heart attacks, and obesity make for a compelling case for the Organic
Alternative. 

Likewise millions of green-minded consumers understand that industrial
agriculture poses a terminal threat to the environment and climate
stability. A highly conscious and passionate segment of the population are
beginning to understand that converting to non-chemical, energy-efficient,
carbon-sequestering organic farming practices, and drastically reducing
food miles by relocalizing the food chain, are essential preconditions for
stabilizing our out-of-control climate and preparing our families and
communities for Peak Oil and future energy shortages. 

Decades of research confirm that organic agriculture produces crop yields
that are comparable (under normal weather conditions) or even 50-70%
superior (during droughts or excessive rain) to chemical farming.
Nutritional studies show that organic crops are qualitatively higher in
vitamin content and trace minerals, and that fresh unprocessed organic
foods boost the immune system and reduce cancer risks. And, of course
climate scientists emphasize that organic agriculture substantially reduces
greenhouse pollution. Organic farms use, on the average, 50% or less
petroleum inputs than chemical farms, while generating drastically less
greenhouse gases such as methane and nitrous oxide. Moreover diverse,
multi-crop organic farms sequester enormous amounts of CO2 in the soil.
Agronomists point out that a return to traditional organic farming
practices across the globe could reduce greenhouse gas pollution by 40%. In
other words, America and the world desperately need an Organic Revolution
in food and farming, not only to salvage public health and improve
nutrition, but also in order to literally survive in the onrushing era of
Peak Oil and climate change.  

Scientists, as well as common sense, warn us that a public health Doomsday
Clock is ticking. Within a decade, diet and environment-related diseases,
including obesity, diabetes, heart disease, and cancer-heavily subsidized
under our Big Pharma/chemical/genetically engineered/factory farm
system-will likely bankrupt Medicare and the entire U.S. health care
system.  

Likewise, climate chaos and oil shortages, unless we act quickly, will soon
severely disrupt industrial agriculture and long-distance food
transportation, leading to massive crop failures, food shortages, famine,
war, and pestilence. Even more alarming, accelerating levels of greenhouse
gases (especially from cars, coal, cattle, and related rainforest and
wetlands destruction) will soon push global warming to a tipping point that
will melt the polar icecaps and unleash a cataclysmic discharge of
climate-destabilizing methane, fragilely sequestered in the frozen arctic
tundra.  

If we care about our children and the future generations, we obviously must
reverse global warming, stabilize the climate, and prepare for petroleum
shortages and vastly higher oil prices. The only way to do this is to
reduce greenhouse gas pollution by 90% by 2050, by shifting away from
petroleum and coal-based energy to radical energy conservation and making a
transition to renewable solar and wind power-not only in transportation,
housing, and industry, but in farming, food processing, and food
distribution as well.  

In the food sector, we cannot continue to hand over 88% of our consumer
dollars to out-of-control, chemical-intensive, energy-intensive, greenhouse
gas polluting corporations and "profit at any cost" retail chains such as
Wal-Mart. The growth of the Organic Alternative is literally a matter of
survival. The question then becomes how (and how quickly) can we move
healthy, organic, and "natural" products from a 12% market share, to
becoming the dominant force in American food and farming. This is a major
undertaking, one that will require a major transformation in public
consciousness and policy, but it is doable, and absolutely necessary.  

But before we overthrow Monsanto, Wal-Mart, and Food Inc., we need to put
our own house in order. Before we set our sights on making organic and
"transition to organic" the norm, rather than the alternative, we need to
take a closer, more critical look at the $50 billion annual natural food
and products industry. How natural is the so-called natural food in our
local Whole Foods Market, coop, or grocery store? Is the "natural" sector
moving our nation toward an organic future, or has it degenerated into a
"green washed" marketing tool, disguising unhealthy and unsustainable food
and farming practices as alternatives. Is "natural" just a marketing ploy
to sell conventional-unhealthy, energy-intensive, and non-sustainable food
and products at a premium price? 

The Myth of Natural Food, Farming, and Products 

Walk down the aisles of any Whole Foods Market (WFM) or browse the
wholesale catalogue of industry giant United Natural Foods (UNFI) and look
closely. What do you see? Row after row of attractively displayed, but
mostly non-organic "natural" (i.e. conventional) foods and products. By
marketing sleight of hand, these conventional foods, vitamins, private
label "365" items, and personal care products become "natural" or "almost
organic" (and overpriced) in the Whole Foods setting. The overwhelming
majority of WFM products, even their best-selling private label, "365"
house brand, are not organic, but rather the products of chemical-intensive
and energy-intensive farm and food production factories. Test these
so-called natural products in a lab and what will you find: pesticide
residues, Genetically Modified Organisms, and a long list of problematic
and/or carcinogenic synthetic chemicals and additives. Trace these products
back to the farm or factory and what will you find: climate destabilizing
chemical fertilizers, pesticides, fungicides, herbicides, and sewage
sludge-not to mention exploited farm workers and workers in the food
processing industry. Of course there are many products in WFM (and in
UNFI's catalogue} that bear the label "USDA Organic." But the overwhelming
majority of their products, even their best selling private label, "365,"
are not.  

What does certified organic or "USDA Organic" mean? This means these
products are certified 95-100% organic. Certified organic means the farmer
or producer has undergone a regular inspection of its farm, facilities,
ingredients, and practices by an independent Third Party certifier,
accredited by the USDA National Organic Program (NOP). The producer has
followed strict NOP regulations and maintained detailed records. Synthetic
pesticides, animal drugs, sewage sludge, GMOs, irradiation, and chemical
fertilizers are prohibited. Farm animals, soil, and crops have been managed
organically; food can only be processed with certain methods; only allowed
ingredients can be used.  

On the other hand, what does "natural" really mean, in terms of farming
practices, ingredients, and its impact on the environment and climate? 

To put it bluntly, "natural," in the overwhelming majority of cases is
meaningless, even though most consumers do not fully understand this.
Natural, in other words, means conventional, with a green veneer. Natural
products are routinely produced using pesticides, chemical fertilizer,
hormones, genetic engineering, and sewage sludge. Natural or conventional
products-whether produce, dairy, or canned or frozen goods are typically
produced on large industrial farms or in processing plants that are highly
polluting, chemical-intensive and energy-intensive. "Natural,"
"all-natural," and "sustainable," products in most cases are neither backed
up by rules and regulations, nor a Third Party certifier. Natural and
sustainable are typically label claims that are neither policed nor
monitored. (For an evaluation of eco-labels see the Consumers Union
website). The USDA's Food Safety and Inspection Service provides loose,
non-enforced guidelines for the use of the term "natural" on
meat--basically the products cannot contain artificial flavors, coloring,
or preservatives and cannot be more than minimally processed.  

On non-meat products, the term natural is typically pure propaganda.
Companies (like Whole Foods Market or UNFI) are simply telling us what we
want to hear, so that we pay an organic or premium price for a conventional
product. Perhaps this wouldn't matter that much if we were living in normal
times, with a relatively healthy population, environment, and climate.
Conventional products sold as natural or "nearly organic" would be a simple
matter of chicanery or consumer fraud. But we are not living in normal
times. Pressuring natural and conventional products and producers to make
the transition to organic is a matter of life or death. And standing in the
way of making this great transition are not only Fortune 500 food and
beverage corporations, Monsanto, and corporate agribusiness, as we would
expect, but the wholesale and retail giants in the organic and natural
products sector, UNFI (United Natural Foods) and Whole Foods Market (WFM). 

UNFI & Whole Foods: Profits at Any Cost 

UNFI and Whole Foods Market are the acknowledged market and wholesale
distribution leaders in the $70 billion organic and natural foods and
products sector. Companies or brands that want to distribute their products
on more than just a local or regional basis must deal with the
near-monopoly wholesaler, UNFI, and giant retailer WFM. Meanwhile retailers
in markets dominated by Whole Foods have little choice but to emulate the
business practices of WFM-i.e. sell as many conventional foods, green
washed as "natural," as possible. Unfortunately neither UNFI and Whole
Foods are putting out the essential message to their millions of customers
that expanding organics is literally a matter of life or death for public
health, climate, and the environment. Neither are leading the charge to
double or triple organic food and farming sales by exposing the myth of
natural foods, giving preference to organic producers and products, and
pressuring natural brands and companies to make the transition to organic.
Neither are the industry giants lobbying the government to stop nickel and
dime-ing organics and get serious about making a societal transition to
organic food and farming. The reason for this is simple: it is far easier
and profitable for UNFI and WFM to sell conventional or so-called natural
foods at a premium price, than it is to pay a premium price for organics
and educate consumers as to why "cheap" conventional/natural food is really
more expensive than organic, given the astronomical hidden costs (health,
pollution, climate destabilization) of conventional agriculture and food
processing. 

UNFI has cemented this "WFM/Conventional as Natural" paradigm by emulating
conventional grocery store practices: giving WFM preferential prices over
smaller stores and coops-many of whom are trying their best to sell as many
certified organic and local organic products as possible. Compounding this
undermining of organics is the increasing practice among large organic
companies of dropping organic ingredients in favor of conventional
ingredients, while maintaining their preferential shelf space in WFM or
UNFI-supplied stores. In other words the most ethical and organic (often
smaller) grocers and producers are being discriminated against. WFM also
demands, and in most cases receives, a large quantity of free products from
producers in exchange for being distributed in WFM markets.  

The unfortunate consequence of all this is that it's very difficult for an
independently-owned grocer or a coop trying to sell mostly organic products
to compete with, or even survive in the same market as WFM, given the
natural products "Sweetheart Deal" between UNFI and WFM. As a consequence
more and more independently owned "natural" grocery stores and coops are
emulating the WFM model, while a number of brand name, formerly organic,
companies are moving away from organic ingredients (Silk soy milk, Horizon,
Hain, and Peace Cereal for example) or organic practices (the infamous
intensive confinement dairy feedlots of Horizon and Aurora) altogether,
while maintaining a misleading green profile in the UNFI/WFM marketplace.
Other companies, in the multi-billion dollar body care sector for example,
are simply labeling their conventional/natural products as "organic" or
trade-marking the word "organic" or "organics" as part of their brand name.


The bottom line is that we must put our money and our principles where our
values lie. Buy Certified Organic, not so-called natural products, today
and everyday. And tell your retail grocer or coop how you feel. Please join
thousands of other Organic Consumers and send a message to Whole Foods and
UNFI today.

Ronnie Cummins is National Director of the Organic Consumers Association