Organic Industry Struggles With Identity In Face Of Supply Shortages
By Amelia Buragas
MADISON , Wis. — The heated debate over what it means to be organic continues between organic dairy producers. The current rules require that organic dairy cows have access to pasture, but do not give an empirical value. Some in the industry say it is time to quantify and strictly enforce pasture requirements. Others say rigid pasture requirements will hinder the category’s growth and limit production to certain geographic areas. (See also “USDA seeking comments on organic dairy pasture rules,” in this issue.)
“We see this as a critical time for the organic dairy industry for safeguarding standards,” says Ed Maltby, executive director, Northeast Organic Dairy Producers Alliance (NODPA), Richmond, Vt.
NODPA represents approximately 540 organic dairy farmers in the New England states. Maltby says from a producer perspective, the organic dairy industry must maintain the high quality standards consumers expect. His organization is concerned that a weakening of the organic standards will allow too many farmers to enter the organic market too fast.
“Our biggest fear is that the current interpretation of the organic standards will allow large scale operations of 5,000 to 10,000 cows to come into organic production too quickly,” Maltby says.
NODPA and its counterparts, the Midwest Organic Dairy Producers Association and the Western Organic Dairy Producers Association, support a rule that would require all organic dairy producers to pasture their animals for the entire growing season (no less than 120 days). During that time, a minimum of 30 percent of feed would be required to come from grazing, the groups say.
“It can’t be just a token rule. We want something that can be easily enforced across the country,” Maltby says.
Opponents say a one-size-fits-all rule is too restrictive, and argue that organic certification should be determined on a case-by-case basis to allow for regional variations in climate.
“We believe in growing organic supply so that it is more available to consumers in different places in different types of stores so that the greatest number of consumers can enjoy organic milk and butter,” says Clark Driftmier, senior vice president of marketing, Aurora Organic Dairy, Boulder, Colo. “The organic program was very intentionally written to be scale neutral to allow organic farms of all sizes, shapes and geographies.”
However, supporters of strict pasture rules aren’t buying that interpretation.
“There are some places that shouldn’t have cows,” says Chad Pawlak, president, Organic Farm Marketing, Thorp, Wis. “Just like I shouldn’t be harvesting lobster.”
Pawlak and other supporters of grazing say there are multiple benefits to mandating pasture access for cows instead of allowing organic certification of confinement operations that feed organic grain. They claim there are health benefits to the cows and consumers as well as a reduction in the use of fossil fuels used to harvest and transport grain. The bottom line, supporters say, is that grazing leads to a better, higher-quality product.
But Juan Velez, lead veterinarian and vice president of farm operations, Aurora Organic Dairy, suggests that there are many geographically-neutral criteria for monitoring animal welfare on organic farms. Velez offered examples of criteria Aurora uses on its farms during a USDA organic dairy symposium held in State College, Pa., this week. Such criteria include individual body composition scores, somatic cell counts and farm facility measures for cow comfort.
“I encourage all of us in the organic industry, and consumers alike, to avoid focusing on image and instead to consider the true factors that create healthy, productive, well-cared-for dairy cows,” Velez says. “As animal care professionals, we know that a combination of important elements contribute to excellent animal care and those often are not apparent to the casual observer.”
As time goes on and both sides become more entrenched in their positions, the debate has gotten acrimonious. All involved express concern about public perception.
“The lack of clarity of the current rule has allowed for different interpretations of the rule,” says Sarah Bratnober, communications director, Organic Valley Family of Farms, La Farge, Wis. “As a result of those different interpretations, we have a divisive situation where people are pointing fingers. I don’t think that really serves our industry well as a whole.”
“All producers, small and large, East and West, all of us together need to sail toward the same shore and steer our boat together,” adds Driftmier. “Anyone who tries to drive a wedge between us should be seen as a divisive element.”
The Cornucopia Institute, which describes itself as a Wisconsin-based farm policy research group and organic food watchdog, has been criticized for bringing the pasture fight into the public consciousness through lawsuits and press releases. Most recently, the organization sued USDA regarding several Freedom of Information Act requests the group made for communication records relating to the pasture access debate.
Mark Kastel, director of the nonprofit organization, says that the risk of airing the industry’s dirty laundry has been weighed. Cornucopia’s stance is that a public fight is less harmful than allowing what he says are organic factory farms to enter the market.
“That is putting the ethical brands of dairy products and ethical farmers at a distinct competitive disadvantage,” Kastel says. “We cannot allow that to happen.”
Kastel says his group does not expect change to happen overnight; companies should be given transition time to adjust to the pasture rules he wants to see enacted and enforced.
However, some in the industry do not see the two sides ever reaching an agreement. They see the organic segment being divided into subcategories.
In the future, Pawlak says there may be Grade A and Grade B organic milk with Grade A milk being provided by dairy farmers who meet pasture requirements.
“I would say that would be our best case scenario. The worst case scenario is that the organic consumer is going to start rejecting the product,” he says.
Pawlak also sees dairy becoming more like other industries which have adopted multiple eco-labels. Consumers shopping for eggs, for example, can choose from conventional, organic, free range, certified humane, cage free, free roaming and so on.
In anticipation of this trend, Organic Farm Marketing has added a second brand to its portfolio. In early June, Pawlak says the company will debut Grass Point Farms brand dairy products that will be labeled as coming from grass-fed cows. Organic Farm Marketing also sells products under the Wisconsin Organics brand.
• What do consumers want?
If a recent survey conducted by the Center for Food Safety is any indication, the organic dairy industry should be concerned about the public’s perception of the pasture rule debate.
A survey of 1,011 U.S. adults commissioned by the Center for Food Safety, an environmental advocacy group, found that five out of 10 organic milk purchasers would no longer buy organic milk if they knew organic cows were confined to fenced-in feedlots and did not graze on pasture.
Joseph Mendelson, legal director, Center for Food Safety, says the poll clearly indicates that consumers expect dairy cows to be raised on pasture.
“Consumers will reject organic milk if they believe that organic is no different from factory farm milk, and that would hurt the entire organic market,” he says.
Recently, the Organic Consumers Association (OCA) called for a boycott on organic milk brands that raise animals in confinement with little or no pasture access. Ronnie Cummins, executive director, OCA, says consumers choose organic because they reject conventional dairy practices. If organic farmers use conventional-type production methods, he says, consumers will reject their products as well.
“Consumers are going to lose confidence in the brand names that are sourcing their milk from dairy feed lots,” says Cummins.
However, many in the industry say more research on consumer sentiment is needed. Holly Givens, communications director, Organic Trade Association (OTA), says she has not seen legitimate data that demonstrate how consumers feel about pasture requirements. She points out that consumer perception is one area on which USDA is asking for comments and says OTA is recommending all of its members take part in the discussion. OTA has not taken a position on pasture requirements other than to say it supports the process of developing standards.
• Organic supply falls short of demand
The organic dairy industry also is under pressure to meet a rising demand for its products. Recent data show more Americans than ever are consuming organic products. According to the Whole Foods Organic Trend Tracker, 65 percent of Americans reported having tried organic foods and beverages in 2005 — up from 54 percent in 2003 and 2004. Furthermore, 27 percent of survey respondents reported they consume more organic products than they did a year ago.
“These all-natural organic products are no longer a niche, they’re becoming a lifestyle,” says Linda Hook, vice president of marketing, DCI Cheese Co., Richfield, Wis.
However, the industry has struggled to keep up with demand. Estimates range from a 20 to 30 percent shortage in available organic fluid milk. Hook says lack of an adequate organic milk supply is the biggest issue her company faces with its Organic Creamery brand of cheeses.
“Even through organic is a small market when you look at cheese in general, it’s the one area we’ve seen the most growth in,” Hook says. “We could take on all kinds of new business if we had the milk.”
“We have to very carefully manage our customer accounts,” adds Organic Valley’s Bratnober. “In some cases we’ve even had to let customers go so that we could satisfy the demands of some of our key customers.”
Cummins says the supply issue brings the industry full circle when it comes to the debate over pasturing requirements.
“The reason why this problem is occurring is because we have big players getting into the market like Wal-Mart at a time when there is a supply shortage,” Cummins says.
He notes that the pressure to fill orders and keep shelves stocked has producers looking for shortcuts.
CMN
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