"Organic" Mega-Dairy Reapplies for Certification

The Case Vander Eyk dairy, suspended from organic certification in May, tells the Capital Press it is now working with a new certification agency to get back in business. "We're working with another certifier now and expect to be back in a couple of weeks," said Vander Eyk. "This is not uncommon, and it is very disruptive to our operation."

I would be very eager to find out who this new certifier is. I find it surprising to say the least that a company can be decertified by one entity and then be considered for recertification by another a month later. At the very least, this should prompt a review by the USDA's National Organic Program.

According to this article: "Vander Eyk, who has been an organic milk producer since 1999, said last week he did not know the reason for his suspension by certifier Quality Assurance International." I also find this statement hard to believe, considering the process involved in suspending a producer, a process that includes time for the producer to try and correct the situation.

Organic Through Rose Colored Glasses

(Editors Note: We are correcting the misstatement in the original version of this post that Wolaver's sources organic hops. They do not. We explain their position, beginning in the 12th paragraph below).

By Samuel Fromartz

The news that the USDA was on the verge of approving 38 non-organic agricultural ingredients for use in organic food got a lot of attention this week.

The Los Angeles Times first picked up on the story, then the rest of the media pack, and the early trust seemed to be: the USDA is being pushed by lobbyists to loosen organic food regulations!

But is that the case?

First, a little background about these 38, background that requires us to get deep-and-dirty in the world of USDA organic regulations.

A product can only be labeled organic if 95 percent of the ingredients are in fact organic. (A standard that is accepted globally under various organic regimes).

In that remaining 5 percent, non-organic ingredients can be used, but only if specifically approved by the citizens advisory panel known as the National Organic Standards Board. If they pass muster with the NOSB, they are placed on the so-called National List by the Secretary of Agriculture and allowed to be used.

There was one exception however: non-organic agricultural ingredients had an express pass to get into an organic product. If the organic processor told his certifier than an organic agricultural ingredient was not available, then the certifier could issue a pass for the non-organic version to be used. No review by the NOSB, no placement on the National List. Just a pass by the certifier.

Can't get organic turmeric? Then go ahead use the non-organic version in the 5-percent. Can't get organic hops for beer. Use non-organic hops, again at a 5-percent threshold.

Well, an organic blueberry farmer from Maine, Arthur Harvey, had a big problem with this and sued the USDA. He won in 2005 and the court gave the USDA two years to place specific non-organic agricultural ingredients on the National List. The two years expired June 8, 2007.

So while all the stories are screaming – THE USDA IS GOING TO APPROVE 38 NON-ORGANIC INGREDIENTS! – the real news is that USDA is going to drastically limit the current widespread use of non-organic agricultural ingredients to just 38 and only after they get a a review by the NOSB. This is all thanks to Harvey.

That said, I have a problem with some of these 38 that got by the NOSB.

Take hops, which are getting a blanket exemption. The big boys like Anheuser-Busch argue that they can't find enough organic hops, so need an exemption to use non-organic hops. This is apparently a widespread issue, since a micro-brewer like Wolaver's Organic in Vermont also told me too that they had trouble finding hops. The only source appropriate for the taste profile of their beer comes from New Zealand. One farmer they were sourcing from in the State of Washington (pictured below, at  Wolaver's web site) pulled out of the market a year ago because of the challenges of growing the crop organically.

But why can't Anheuser-Busch and Wolaver's enlist more growers into the market, where organic hops go for three times the price of conventional?  After all, they have had two years since the court ruling in the Harvey case to plan their future demand.

Morgan Wolaver agreed that more needed to be done to entice growers into the market. But in the meantime, they need the exemption if they are going to make organic pale ale. Each year they show their certifier that organic hops are not available and each year they get an exemption.

"How do you build organic demand into an exemption?" Wolaver asked. "It gets back to the breweries to really push this." 

Exactly. And if they don't push on the demand side, then the supply will never be there. To be fair, 98-percent of the ingredients in Wolaver's Organic beer are in fact organic.

The other exemption I find questionable is the use of non-organic casings in organic sausages. The rules on organic meat are strict. No animal qualifies as organic unless it was raised organically from the last trimester of gestation. That means the mother has to be organic too, at least in the last third of its pregnancy. If the offspring does not meet this hurdle, then it's not organic.

Except for intestines. For some reason, intestines used in sausage making will get a pass. I find this curious, since the existence of organic meat suggests that organic intestines are also around. And somebody will have a great incentive to make them into casings if they are required.

I spoke with Jim Riddle, former chairman of the NOSB, and he raised questions about the exemption for fish oil, since organic fish isn't even defined yet. He also pointed out the public was only given 7 days to comment on these issues, which is almost as bad as having no comment period at all.

But should all non-organic ingredients be banned, even if used in minute amounts like colorings? Well, then a huge amount of organic products would vanish, crimping demand for the organic ingredients used in the other 95 percent of these products. You are going to have these exemptions unless you want to take the next logical position and ban many organic processed food products, a position that more than a few organic advocates take, including Harvey. But the consensus, globally, in organic circles - and that includes farmers and NGOs not just Big Organic - has been to allow a select few in once they are reviewed.

So the question always becomes where to draw the line. Ethicurean's post on organic annatto considers this issue, although I don't necessarily agree with the conclusion.

In an ideal world, organic farmers will come up with all the organic agricultural ingredients that processors need.

My worry is that the non-organic ingredients will become the de facto ingredients and no one will step up to the plate to try and produce organic ones. Or that once given an exemption, processors will argue that the organic version is not in the right "form" or doesn't meet "quality" standards, another way it can justify using the non-organic versions.

Right now, though, organic processors are in a pinch. The USDA sent out a notice to certifiers on June 8 reminding them that they must avoid using non-organic ingredients (not on the National List) as of midnight. In the meantime, the USDA has not yet approved any of the 38 replacements, as of today.

So, all those beer makers using non-organic hops and all those sausage makers using non-organic casings are not in compliance with the law, if they are still using those ingredients today.

I wonder what they're doing? Hopefully ramping up organic ingredient supplies as they should have done all along.

Eulogy for an "Organic" Mega-Dairy

The suspension of a mega-organic dairy in California continues to generate attention, with the most recent from a neighbor who had the foresight to take video of the operation and post it on her blog, Rebuild from Depression. She also has a very insightful post about the operation that I recommend others to read.

What this work shows is that producers and consumers are very interested in transparency and, with the use of the Internet, will out those producers who are skirting the regulations. This is what transparency is all about and what underpins organic and sustainable foods.

Without further adieu, on to the video eulogy. (Note on video: It views better if you download the whole thing before playing unless you have a fast connection). 

Questions Linger on Sour Organic Milk

Carol Ness in the SF Chronicle has a good follow-up to our breaking story yesterday about the Vander Eyk dairy being stripped of organic certification in California. This is a very significant enforcement action in the organic world, though it begs a few questions.

• Why did QAI certify the confinement dairy in the first place? Did it ever meet the organic regulation?
• Will this signal a trend or aberration?
• Will this mega-farm be able to get recertified?

If confinement dairy practices aren't corrected, then the next phase will be to design an additional label for organic milk that truly reflects organic practices such as pasturing - a prospect that is now being floated. That would be a shame and a cause of additional consumer confusion but that will happen if the USDA's National Organic Program does not move forward with a pasture rule that would outlaw these kind of operations.

Bananas with a Face

Dole Organic began putting a little sticker on its bananas earlier this year, allowing consumers to see where the fruit was grown. I blogged on this months ago. Now they've taken the program further, allowing for interaction with the farm. Dole has posted an email one customer wrote and then an amazing number of responses from workers on the banana plantation in La Guajira, Colombia.

Photos: Dole Organic

Among a few choice quotes:

"I evaluate the agronomical practices at the banana fields. Your letter made me feel that my work is appreciated. Thank you very much!" - Dulcinis Atencio

"You said you will keep us in your mind every time you eat an organic banana, we promise to keep you in mind every time we pack your bananas. Thank you for your letter." - Midelfi Mejías

"Everything started with this small sticker with the three digits... It is hard to believe that this tiny piece of paper created a beautiful link between you and all of us in Don Pedro ...I put the stickers on the organic bananas." - Tatiana Barros

OK, I know this is PR. I know the statements come through the company. I know this reveals little about the actual operation. But the appreciation expressed by the workers was pretty amazing, as if they were finally recognized for growing food! What a thought.

I encourage people to read this new experiment in the farmer-consumer connection over thousands of miles. Thanks to Luis Monge, regional certification officer for Dole's Organic Program, for the shout out on this development.

Certification Yanked at Big Organic Dairy

By Samuel Fromartz

In a sign that pressure is mounting on big confinement organic dairy farms, Quality Assurance International, a major organic certification agency, has yanked certification for the Case Vander Eyk organic dairy in California, an operation with an estimated 3,500 cows.

This dairy in the central valley of California has been the subject of complaints by the advocacy group, Cornucopia Institute. But QAI's decision marks the first time a certifier has suspended a big confinement dairy, though these farms have been criticized for years.

Photo: Cornucopia Institute

"The process took quite a long time," one source with direct knowledge of the situation said, because of the review requirements under the USDA's National Organic Program.

Once certification is suspended, as it was in this case in mid-May, the operation can no longer sell its products as organic. It can, however, appeal the certifier's decision to the NOP, which then reviews the details of the case.

One source said the farm didn't comply with organic regulations in a number of areas, including pasture.

The Vander Eyk dairy was among several large-scale farms that became lightening rods in the organic  industry over the past several years as the organic dairy market expanded at 20-30 percent a year.

Several large scale farms came on line and others were looking to transition to the market. But many organic dairy farmers, consumer groups and advocates strongly objected to these confinement dairy farms that offered little or no pasture to their milking cows.

Complaints were filed with the USDA's National Organic Program and efforts redoubled to tighten up the regulatory language requiring pasture so these large-scale confinement farms would be shut down.

The Vander Eyk dairy, which had both conventional and organic operations, had been selling milk to Horizon Organic, but it was yanked as a supplier when its contract ran out in 2006, because it no longer met the company's standards. Horizon, the largest organic milk company, had come under a lot of pressure for a large-scale dairy farm it owns in Idaho. But it has since invested millions in the farm to add pasture in a process that is now nearly complete.

Horizon Organic has backed a tighter organic pasture standard, calling for cows to graze at least 120 days on pasture with at least 30 percent of the cow's nutritional needs coming from fresh grass. Organic dairy farmers nationwide are pushing for this strict language and it is currently under review by the NOP.

The Vander Eyk farm was among several, such as Aurora Organic in Colorado, which did not offer meaningful pasture access to its cows. But the language was so vague in the current regulations that it became a loophole that allowed organic confinement farms to exist, much to the dismay of many organic proponents.

"Your headline should read 'Case Closed,'" said Mark Kastel of Cornucopia Institute.

But the final chapter of these big organic dairy farms has yet to be written.

Should Organic Livestock Have Access to Antibiotics?

By Samuel Fromartz

Hue Karreman, a prominent veterinarian who works with organic dairy farmers in Pennsylvania, has published a highly provocative essay on NewFarm.org arguing that organic livestock farmers should consider the use of antibiotics in rare instances – a practice currently banned by organic regulations.

"In essence, when it comes to an individual animal needing truly prompt, effective treatment for a serious infection on an organic farm, the US organic rule may compromise animal welfare," he writes.

His argument opens up a Pandora's box in organics, since the label for so long has been associated with "antibiotic and hormone-free" production methods. Surveys show those labels are a major reason organic milk is so popular with consumers. It is growing at about 20 percent a year.

While I don't expect the prohibition on antibiotics to change soon, Karreman makes an interesting argument – and one not particularly new. (He made the same point when I was working on my book and I include it in chapter 6.)

The main issue with antibiotics is their overuse, which allows bugs to build up resistance. This renders the drugs impotent in humans as well. But Karreman finds the one-time or rare use of the medicine distinctly different from the regular "sub-therapeutic" use of the drugs in livestock production, which is the main cause of rampant overuse.

One reason these therapies are so popular in conventional farming is that the animals suffer from diseases associated with confinement, or a poor diet. The low-forage diet in feedlot beef production, for example, increases the fat content in the muscle, but it also raises the chance of acidosis - or stomach acidity - which in turn is associated with disease. One way to reduce those diseases is to administer low levels of antibiotics, a common practice.

Ideally, organic animals avoid those pitfalls by grazing an adequate amount of time on fresh grass and avoiding the stress of a high-production regime. (Organic dairy cows, for example, produce less milk than conventional animals).

But what happens when an organic animal gets an infection? Currently, under organic production rules, the farmer is required to treat the animal with approved methods (that include herbal remedies, homeopathy, even acupuncture, all of which can be quite successful). But if the animal does not respond to approved therapies, the animal must be given antibiotics and then removed from the organic farm. They can never return.

Karreman believes this end-result puts farmers in a bind. The animal may suffer if the farmer waits to see whether it can heel without antibiotics, yet, if they administer the drug right away they must sell the animal. "Who is to say what medication will be used and when will it be started in the disease process?" He asks.

The issue this raises, of course, is whether organic milk will be able to maintain its distinct identity in the marketplace if antibiotics are allowed.

And like other parts of the organic regulations, would opening the door to rare use of antibiotics invite more extreme practices, such as the sub-therapeutic use that is so objectionable? If you consider the ways the rules have been bent on issues like grazing, that is not unlikely.

Karreman has been one of the few, if not the only one within the organic industry, to stick his head on this issue and make this proposal. At the very least, he faces an uphill battle.

Organic Pasture Rule Coming Soon

By Samuel Fromartz

It has taken several years and many attempts to beef up a regulation requiring organic livestock to graze on pasture. Now it appears, there may be light at the end of the tunnel.

If this rule passes, as many farmers, retailers and advocates hope, cows will be required to graze on fresh grass for a minimum amount of time each year.

A coalition of dairy groups is pushing for a floor of 120 days on pasture, with 30 percent of the cows' nutritional needs coming from fresh grass. Previously, the regulations only required "access to pasture," which meant a cow might rarely get a blade of fresh grass and live out its productive life on huge feedlots. A clear pasture regulation would end that practice, though it is unknown what the final rule will actually say.

In an interview, Barbara Robinson, Deputy Administrator for the USDA's National Organic Program, told me that a pasture rule should be released for comment this summer, though she was doubtful that it would take effect by the end of this year.

ROBINSON: I'm hopeful that we'll see something this summer. It is drafted. It's in clearance, we've gone back and forth with our attorneys who are the first level of review and it's with them again for a second review and then it has to make its way through the department and to OMB (Office of Management and Budget).

FROMARTZ: And that can happen by the summer?

ROBINSON: Again, I don't know but I'm hoping because it's my no. 1 priority and has been. You don't often have a deputy administrator who works on a pasture rule or on any rulemaking but I have been. It's kind of been my baby.

Once the proposed rule is published, the public will get an opportunity to comment. Those comments will then be incorporated into the final rule, which will be published. At that point, the rule would probably take effect within 30 days with a transition period for farms to come into compliance.

But she added: "I don't think it would be in the effect by the end of the year."

The rule could also hit roadblocks once it's sent over to the Office of Management and Budget in the next couple of months. Robinson said there has been a great degree of interest in this rule, as there is with the entire organic program. "Everybody and their brother gets to look at it and they ask, why you changed this paragraph. It takes forever," she said.

Robinson said the rule could also run into problems if "we really got it wrong. Then we might have to republish the proposed rule but I don't think that would be the case. I think we got it right," she said.

After Lapses, Wal-Mart Steps Up Organic Oversight

Wal-Mart agreed to step up oversight of its organic labeling, after the state of Wisconsin cited the company for numerous inaccuracies.

According to the Cornucopia Institute, which first raised the issue last year, the Wisconsin Department of Agriculture, Trade and Consumer Protection told Wal-Mart’s legal counsel that “use of the term ‘Wal-Mart Organics’ in combination with reference to a specific non-organic product may be considered to be a misrepresentation and therefore a violation” of Wisconsin state statutes. 

The AP reports that Wal-Mart "said Tuesday it has given updated guidelines to its employees." The story continues:

Wal-Mart said that green tags on their shelves, which identify food as organic, may have inadvertently or mistakenly been placed, or accidentally shifted in front of the wrong item.

"Our green organic signing is for additional consumer convenience to show that an organic alternative is available. It is not a label," the company said in a statement. "The USDA (U.S. Department of Agriculture) certification label is featured on the packaging of the organic selections we offer and consumers should always rely on this USDA certification label for proper organic verification."

That quote is an interesting bit of semantics, since it essentially says shoppers should understand the difference between a "label" and a "sign." We're not sure the USDA organic program would agree.

Wal-Mart said it is working with store associates to have the identifying tags checked periodically for accuracy.

James Rabbitt, director of the state Bureau of Consumer Protection, said that as long as Wal-Mart keeps in place additional measures to ensure that nonorganic products are not identified by shelf tags as being organic, his agency will not pursue the matter further, other than to monitor Wal-Mart's practices for compliance.

Price War Coming in Organic Milk?

One question I have had was whether the coming glut of organic milk will lead to lower prices for consumers. Well, the company that owns Horizon Organic, the largest organic milk company in the nation, thinks the answer is yes and that admission sent the stock of parent Dean Foods down nearly 10 percent today.

According to a report in Bloomberg News:

Dean Chief Executive Officer Gregg Engles said organic milkoutput may surge 40 percent this year, creating ``a wall'' of supplies that will prompt rivals to try ``to stimulate demand through lower prices." Dean Foods, the biggest organic milk producer in the U.S., will counter with increased investment in Horizon Organic, its most profitable brand, Engles said.         

What is less clear is whether organic dairy farmers will take a hit and suffer lower prices at the farm-gate. I've heard that Organic Valley is holding the line on prices and have also seen other anecdotal reports that processors are trying to hold back supplies. ''We don't want to harm the viability of organics and the price point that farmers need to make a decent living,'' Organic Valley CEO George Siemon told the New York Times.

Why are supplies jumping 40 percent in a year? Because farmers had until last June to begin the year-long conversion to organic production before more stringent rules took effect. As a result, many jumped into the market at the same time and now all those supplies are starting to come on line.

- Samuel Fromartz

BIG Organic Java Victory

Organic Coffee is safe, for now.

In a victory for organic farmers in the developing world, the USDA's National Organic Program has backed down and said that for now there will be no immediate change in the way these farmers are certified.

The NOP had previously announced that it was changing certification procedures for these farms. The change would have increased costs sharply and choked off the supply of organic coffee, cocoa and other crops grown by farming co-ops in the Third World, an issue I wrote about on Salon.com.

In a statement issued Wednesday, the NOP said it would work closely with the National Organic Standards Board -  the citizens advisory panel on organic regulations - before making any changes. This comes after a petition campaign which generated thousands of signatures, even in the absence of any major media coverage.

For those who think organic regulations have been compromised by big business, this shows - as other actions have in the past - that transparency and advocacy work.

The NOP statement can be read in full here.

- Samuel Fromartz

USDA to Rule on Organic Coffee Limits

I've written extensively about a USDA decision last year that could shut down markets for organic coffee, cocoa and bananas from the developing world. Now, it appears that this spate of publicity and activism on the issue has caused the USDA to listen.

Last Thursday, representatives from the National Organic Coalition, Equal Exchange, Rural Advancement Foundation International USA, and the National Cooperative Grocers Association met with the USDA to discuss the issue. They also presented a petition with more than 300 organizations and 3,600 individual signatures objecting to the policy. (A copy of the letter and signatories is posted in a pdf here).

In an email, the National Organic Coalition said "the USDA is promising a statement of clarification very soon. We are uncertain as to what that statement will look like, and we remain concerned." In a separate statement Equal Exchange said:

The USDA assured us that they had heard from us, and you, “loud and clear” and that in “two or three days” they would issue a statement that they thought would make us “happy.” They would not share any more details other than to offer a little more explanation of how they perceived the issue.  Given the stakes, complexities and interests involved, we cannot assume that the USDA statement will completely solve the problem.  (Also, given the nature of any federal agency, it could actually be weeks, not days, before they release their statement.)

Chews Wise will report on this important ruling as soon as we get word. Updates are also available at Equal Exchange's web page.

- Samuel Fromartz