Commercialization of organics: how much do you love your food?

Why do you purchase organic food? It may be because you want to feel confident that the food you cat has been grown without the use of antibiotics or pesticides. Or perhaps you are motivated by the research showing that a variety of "regular" food often contains harmful synthetic chemicals and hormones. Part of your motivation might be that you enjoy shopping at a local co-operative grocery store where people know about you and know about the products they are selling. Maybe you think that by purchasing organic or natural foods, you are moving away from the major chains and supercenters and are supporting smaller companies.

As the demand for organic foods rises, the sale of antibiotic-and pesticide-free food is becoming big business. How big? The USDA projects that organic food sales will reach $20 billion this year alone. This figure explains why catering to the organic market is suddenly the rage among growth-starved food conglomerates including General Mills, Coca-Cola, Dean Foods, Nestle, and Kraft Foods. Recently filled your shopping cart with Cascadian Farms cereal (General Mills owned), Boca Burgers (Kraft Foods) and a gallon of Horizon Organic milk (Dean Foods)? Consumption of these products by the masses has led sales at natural foods retailers to grow at several times the rate of traditional supermarkets.

Attempting to capture some of the organic wealth, supermarkets including Publix, Kroger, North Carolina's Ingles stores, and the mega market that is Wal-Mart (the number one seller of food in the country) now all carry organic foods. This undoubtedly affects the organic food consumer in several important ways. Both Wal-Mart and the other large chain grocers across the southeastern US generally offer organic foods at a lower price than smaller food co-ops and markets. Some argue that this may actually be a service to people who want to consume organic food but are unable to do so because of access or cost limitations. Wal-Marts are everywhere; the inclusion of organic products in the mega market may actually he helping the organic industry, by making products available to everyone, argue some Wal-Mart supporters.

Morgan Stanley reports that food sales to Wal-Mart are growing by twenty percent annually, which is similar to reported growth in organic food sales overall. Because Wal-Mart is the largest purchaser of food (from manufacturers and suppliers) in the country, the company essentially has enormous leverage over manufacturers of all foods--large brands including Kraft, Dean, and General Mills, but also and perhaps more so over smaller brands, which may start to include the majority of organic and natural foods companies and brands.

The relationship between Horizon Organic (a line of the $10 billion food conglomerate Dean Foods) and Wal-Mart may be the best example of how the commercialization of organic foods leaves unanswered questions about these large companies' commitment to maintaining higher standards for the food they sell. Not a milk drinker? Read on anyway--as Dean Foods also owns the Silk soymilk brand.

Horizon Organic sources the majority of its milk from highly efficient factory brands, including 5000 cow Aurora Organic Dairy in Colorado. Horizon claims that they are "committed to complying with the National Organic Standards and its guidelines regarding pasture for animals that are certified organic." One could interpret this to mean that Horizon dairy cows are provided suitable living quarters and have regular access to pasture. However, critics (including the Wisconsin-based Cornucopia Institute) allege that the Aurora Dairy rarely lets its cows out and that the animals are not provided the opportunity to fulfill their natural behaviors. Mark Kastel, Director of the Organic Integrity Project at the Cornucopia Institute, has filed complaints with the USDA against the Aurora Dairy and two other alleged "factory farms" involved with Horizon's milk production. "The reason we Filed legal complaints is because it appears that Dean's Horizon is violating regulations governing organic milk production, specifically by refusing to let cows regularly pasture despite the fact that a dairy cows' natural behavior is to eat grass. We've asked that the USDA take action so misrepresentation to consumers will cease."

Factory farm conditions not only affect the quality of life for the dairy cows but also have a significant impact on the milk they provide. Aurora claims that all the cows in the dairy pasture feed, but won't specify if this happens during the milking life of the cow. Experts agree that cows who don't eat grass produce less healthy milk. Horizon milk technically meets the USDA standards for "organic," meaning that the company itself and companies that sell their products (like Kroger or Wal-Mart, for example) can use the organic label. However, Kastel and other organic standards advocates believe that the way the cows are treated does not legally constitute organic farming.

Horizon Organic wasn't Wal-Mart's first choice in organic milk. The company carried Organic Valley products until a push to lower prices at the risk of losing quality made the top brass at Organic Valley pull their products from the Wal-Mart shelves. Because Horizon has access to far larger farms than Organic Valley (or other small milk producers) they are able to increase the quantity of milk available, thereby driving costs down for the chain supermarket buyer, and ultimately, the consumer. Wal-Mart representatives refused to discuss the change in milk supplier with NLJ, but did state that they maintain "positive relationships with all suppliers."

This cost cutting, experts worry, has started a chain of obvious compromises in quality in order to meet the company's bottom line. When asked by New Life Journal how the company works to ensure that all suppliers are meeting organic quality standards, Wal-Mart representatives first stated that they did not have immediate access to information regarding quality standards. Upon further questioning by NLJ, the representatives recited USDA labeling guidelines, but refused to comment on the way in which Wal-Mart specifically ensures the quality of its products. Rounie Cummins, National Director of the Organic Consumers Association, warns potential customers that the dynamic of the "Wal-Martization" of the economy is a one-way street and urges consumers to be educated and to "think--every time you go grocery shopping."

Another option for organic consumers in the southeastern US is Whole Foods Market, called the world's largest natural organic foods supermarket and America's first national "Certified Organic" grocer. What does that mean? According to Amy Hopfensperger, a Whole Foods Market spokesperson, this means that customers "don't have to read labels. We do it for them." You won't find hydrogenated oils or artificial ingredients in any items at Whole Foods Market. Representatives maintain that the company's quality standards are strict and that the company very much involves itself in being aware of the issues surrounding the organic industry. The Whole Foods Market representative who spoke with NLJ stated that she was unaware of the current USDA complaints against Horizon Organic (a brand carried in Whole Foods stores).

Based on sales in billions, Whole Foods ranks number thirty on the list of the Top 75 supermarkets in the US. It runs number four in profits among publicly held grocery chains; its total stock market value is now at $6 billion. Both Whole Foods Market representatives and industry sources agree that part of the chain's phenomenal success is due to its appeal to a wide variety of consumers. They take pride in offering artisan and small batch products, local produce and other high-end goods. These products come at a high premium, so high that experts believe it often runs twice to three times the price of a comparable good at a regular supermarket.

Consumers have other choices when it comes to acquiring organic food. Co-operative grocery stores and local farmer's markets allow customers to have direct access to fresh, local products. It also provides the opportunity to develop direct relationships with the people who supply the food. NLJ had the opportunity to speak with several department managers at co-ops in North Carolina and Georgia, and across the board, these managers displayed an eager willingness to discuss with customers every detail about the goods for sale at each location.

Troy DeGroff, Director of Sales and Marketing for Earth Fare Grocery Stores states that "Farmers that want to grow organic are experiencing a boom."

He says that as the demand for organic goods rises, organic farmers can now compete with large agribusinesses and can demand a premium price for the produce they grow. He also notes that small organic farmers are helping to save the heritage of family farms.

"Customers are making the choice with their dollars. That's making everyone want to go organic."

Chris McCloud. grocery manager at the French Broad Food Coop in Asheville, North Carolina, believes that "the co-operative business model allows us to cater to a communal, community-oriented aspect, despite being in a day and age of total conglomeration." He offers further support of co-operative groceries by stating that the shopper who is also a member at the store where s/he shops has more say ill the way the store is run and in the products that hit the store's shelves.

Co-op supporters also believe they are better able to support local and smaller growers than a traditional supermarket. Misty Childs at Greenlife Grocery, also in Asheville, explains that while normally a consumer doesn't concern himself with how a grocery maintains its inventor), Greenlife Grocery (and others in the area) are able to work with each individual supplier to get products on the shelves. One way this can be done, she says, is by not requiring that suppliers purchase and use a UPC symbol on their products. Greenlife, and other small co-ops, chose to help support growers who simply cannot afford to purchase a UPC symbol and are willing to monitor their inventory in other ways so that small businesses that offer more craftsman style, small batch goods are able to sell their wares.

Better customer service may also be a reason to swing by your local co-op, small grocery or farmers market. Typically, the employees at both co-operative and small grocery stores, as well as farmers who sell their wares at local markets have been in the business a long time. This may provide them with the ability, to better communicate with their customers about the goods they offer. (When asked about commitment to Customer service, Whole Foods Market representatives stated, "We regularly communicate with our customers to ensure that the quality, of service stays high." Wal-Mart representatives stated that while employees are not specifically educated about organic foods, each grocery stockperson "must complete a computer-based learning program before beginning to stock shelves.")

Regardless of which grocery shopping venue you choose, the Organic Consumers Association and common sense dictate that careful thought and consideration should be put into the decisions you make about your food. The National Director of the OCA urges consumers to "pay attention to food miles, to the quality of foods. Apply pressure to the managers at larger food chains, if that's where you choose to shop. Be an active consumer." Educating yourself about the products you buy and the places you shop is your best bet.

Emily Ray is a regular contributor to New Life Journal. She is based in Atlanta GA and can be reached at [e-mail].