Posted tagged ‘Cornucopia Institute’

Organic Farming Beset With Problems

February 25, 2020

I spent considerable time in 2019 looking into the crisis in organic farming. What I found was disturbing: A profitable niche agricultural industry producing high-quality dairy products had seen its standards undermined, its output cheapened and commodified, and many of its farmers squeezed to the point of ruin.

The Wisconsin Examiner ran the two stories.

I wrote in part 1:

The crisis in organic dairy comes at a moment of paradox. The federally governed organic program and its “USDA ORGANIC” label have flat-out triumphed in the marketplace. (USDA is the U.S. Department of Agriculture.)

You find the green-and-white organic label on milk cartons, vegetables, fruit and packaged products. You find it in big box stores like Woodman’s, Kroger, and Wal-Mart, membership warehouses like Costco, and, of course, righteous grocery co-ops like Willy Street in Madison and Middleton, Outpost in the Milwaukee area, and all the grocery co-operatives brightening Viroqua, Ashland and other smaller Wisconsin towns.

Nationwide, organic food sales hit a record $47.9 billion in 2018, up almost 6% from the year before, according to the Organic Trade Association. In Wisconsin, the powerhouse Organic Valley farmers’ co-op, headquartered in little LaFarge (pop. 763), saw its national sales top $1 billion for the third straight year in 2018.

But dig deeper and you find turmoil far and wide.

It’s not just the imbalance between the supply and demand for organic milk or an apparent double standard on enforcing organic rules either.

Everything from shifting consumer preferences to plant-based substitutes for dairy and beef, to the rise of soil-less hydroponic farming competing with organic dirt farmers, to the importation of fraudulent organic grain driving down the prices paid legit organic growers for their corn and soybeans have all soured organic’s financial sweet spot.

“(Up until) five or six years ago, it really looked like organic was going to be the salvation of farming,” says Dave Chapman, a Vermont farmer who runs the Real Organic Project advocacy group.

“Great! We had a label that recognizes that,” says Chapman. “The tragedy is that industrial food producers took over the label. They had the influence to twist the rules to their advantage.”

 

To read more, please go here.

Organic Valley At The Crossroads

July 28, 2015

The Organic Valley farmers coop has been a huge success. With national sales hitting almost $1 billion, this upstart challenger of conventional agriculture has helped create a massive consumer market for chemical-free farming. Small family farmers in Wisconsin and across the nation have gone organic because of the premium prices their milk, eggs and meat attracts in the organic marketplace. But in researching this story for The Progressive magazine I found the coop in a surprisingly precarious position. I write:

Surging consumer demand for organics has created supply shortages for dairy products, and immense opportunities for profit. That has attracted some of the nation’s largest American food corporations to step up an already sizable investment in organics. These aren’t people motivated by protecting the environment, says David Kaseno of the National Farmers Organization. They are “people who think: ‘Hey we can make a lot of money in organic milk.’”

The $46 billion merger of Kraft Foods Group and the H.J. Heinz Co. in March will prompt its rivals to bulk up by buying fast-growing organic food labels, both The New York Times and Bloomberg News predicted. The food giants already produce a stunning 70 percent of the items stocked in a typical co-op grocery, says Philip Howard,a Michigan State University professor who tracks corporate consolidation in the organic world.

For organic industry observers, this poses stark questions for Organic Valley: Is it smart enough and big enough to compete with the corporate giants? Will it yield to the temptation to compromise organic standards to maintain market share? More to the point, will it hold on to its all-important dairy members, who have been abandoning the co-op for the significantly better pay offered by some Organic Valley competitors?

This is the paradox of Organic Valley: At a moment of great success, it faces something of an existential threat.

To read more, please go here.

I interviewed a ton of people for the story, including Organic Valley CEO George Siemon. Some of this views can be found in the story. I wrote an online sidebar that touches on other matters. I suspect that some people will be surprised at his positive impressions of Walmart. You can read about it here.

I also wrote about the Organic Valley coop for Isthmus. You can find those earlier stories from 2007 and 2008 here and here and here.


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