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  • From: "Tradingpost" <tradingpost@lobo.net>
  • To: livingontheland@lists.ibiblio.org
  • Subject: [Livingontheland] Embattled Organic Sector Worries About Regulation
  • Date: Fri, 17 Jul 2009 19:37:03 -0600


doesn't keep me awake at night ...


Embattled Organic Sector Worries About Regulation
http://www.commondreams.org/headline/2009/07/17-5
by Mari Saito
Published on Friday, July 17, 2009 by Reuters

WASHINGTON - California farmer Tom Willey was first attracted to organic
farming 21 years ago after noticing how many chemicals he was using in
conventional farming.


As a certified organic farmer selling everything from artichokes to
zucchinis from his 75-acre farm in the San Joaquin Valley in California,
Willey has become a respected pioneer in the organic farming community.

But now with the deep recession in the United States, farmers such as
Willey are worried about the future of organic farming that grew sharply
during the boom times.

The industry, which prides itself on delivering wholesome and safe
products, also is worried and even a little angry about new food safety
rules emanating from Washington.

"There is a lot of transparency in the organic food system and we've had it
in place for several decades and we do so willingly," said Willey. "The
lack of that is what characterizes industrial producers."

The global market for organic food has grown sharply over the past decade,
with the United States accounting for about 45 percent of the global share.

Sales of organic food have soared from $1 billion in 1990 to an estimated
$20 billion in 2007 and by 2006 became the fastest growing sector in the
industry, according to the Organic Trade Association.

But now growth is coming to a halt as Americans tighten their purse strings
and opt for cheaper alternatives.

"Millions of people who were occasionally buying organic products have cut
back to save money and we're seeing the real decrease in growth in the last
nine months," said Ronnie Cummins, the national director of the Organic
Consumers Association.

Whole Foods Market Inc, a chain that sells organic and luxury grocery
items, reported in May that quarterly sales fell nearly 5 percent from its
stores opened at least one year. Profits also fell but the company said it
avoided going into the red by cutting prices to keep consumers coming back.

Neil Currie, an UBS analyst said consumers are seeking lower prices and
staying clear from luxury food products.

"Organic food comes at a premium price and Whole Foods sales have been
quite negative," said Currie.

Growth in the organic sector dwindled to 12.5 percent last year compared to
the 20 percent it used to enjoy.

"We might not see that kind of growth again," said Cummins.

An added worry for organic farmers is a new food safety legislation that
passed last month in the Energy and Commerce committee of the U.S. House of
Representatives that would be the most sweeping reform of the food safety
system in close to 50 years.

The U.S. food supply system has been battered by a series of food recalls
-- covering a range of products including lettuce, spinach, peanuts and
most recently, cookie dough -- since 2006 that have eroded consumer
confidence.

Under the new legislation, the industry would have to pay a $500
registration fee per facility to pay for more plant inspections. Farms,
restaurants and retail food establishments that sell their products
directly to consumers, not businesses, are exempt from this fee. There
would be a $175,000 cap on such fees.

Organic farmers still say the definition of a facility is unclear in the
legislation and they worry about additional costs that might be incurred on
small businesses. Inspections will be more frequent, taking place every six
to 12 months at high-risk facilities and between 18 months and three years
for lower-risk locations.

As part of a broader food safety overhaul, the Obama administration
recently announced the creation of a new post of deputy commissioner for
foods at the U.S. Food and Drug Administration. The position would oversee
all food safety activities within the agency.

Most organic farmers believe food safety reforms are necessary, but they
worry small and medium organic farmers will be unfairly targeted.

"Based on the escalating cost that would be involved in conforming to this
legislation -- administrative fees, record keeping and internal labor
requirements -- we can force out of business some of the highest quality
practitioners," said Mark Kastel, an analyst at the Cornucopia Institute in
Wisconsin.

Kastel said organic farmers are tempering their enthusiasm for food safety
reform with some skepticism.

"The same players who helped create the problems that exist today are
enthusiastically embracing what they say is the answer," he said.

"It's unsettling when grocery associations and major processed food
producers get together and agree with the government that they're going to
do this without any regard to the high quality organic practitioners."




  • [Livingontheland] Embattled Organic Sector Worries About Regulation, Tradingpost, 07/17/2009

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