Welcome New Editorial Advisors
Organic Processing Magazine’s publishing and editorial staff is pleased to welcome the following industry professionals to its Editorial Advisory Board:

Brian Leahy, J.D., is President of California Certified Organic Farmers (CCOF), an internationally active certifier of processors, retailers, farmers and livestock producers. Founded in 1973, CCOF promotes and supports organic agriculture through a premier organic certification program, grower and consumer education, and policy advocacy. The organization currently certifies approximately 75% of organic production in the state of California.

Leahy began his career in organic agriculture working with some of the U.S.’s pioneer organic farmers. In 1980, he transitioned 900 acres of rice farmland in northern California to organic production. In Nebraska, he farmed organic corn, soybeans and cattle; performed organic certification inspections; and helped form City Sprouts, a small urban garden education center in an impoverished area of Omaha. A graduate of Creighton University School of Law in Omaha, Leahy holds a Juris Doctor degree and has worked in corporate law and legal aid services. He currently serves on the board of directors of the Organic Trade Association.

Ellen P. Holton is Director of Marketing and Business Development with Quality Assurance International (QAI, Inc.), a San Diego, CA-based organic certification agency, acquired in March by NSF International. Holton manages the company’s marketing department while researching and developing new markets and profit centers for the company. She is heavily involved with media relations in an effort to gain company promotion and publicity. Ms. Holton also directs the management of QAI’s new certification programs for bottled water, restaurant certification, textiles, fiber and food security.

Prior to joining QAI, Holton spent several years in the San Diego broadcast market producing, writing, reporting and anchoring radio newscasts for several local stations, including National Public Radio. During her career in broadcast, Holton gained a wealth of experience learning the art of interviewing. Being on the other side of the microphone for several years has advanced her current role as media relations contact for QAI. She earned a bachelor of arts in American studies, with an emphasis in political science from Creighton University in Omaha, NE.


Organic Trade Association Adopts Organic Fiber Processing Standards
After nearly five years of work, the Organic Trade Association (OTA) adopted organic fiber processing standards in February, which cover all post-harvest processing, from storage of organic fiber at the gin or similar facility, to spinning, wet finishing and labeling.

OTA and industry members developed the standards after reviewing and modifying existing international standards governing organic fiber while also taking into account the requirements of the Organic Foods Production Act and its regulations. The project was supported, in part, by a generous grant from the Martin-Fabert Foundation.

“This has truly been an intensive effort to adopt the best methods possible to protect the environment and produce organic fiber products with integrity from fiber to finished product. All those who worked in this effort are to be commended. They have made it possible for OTA to again provide the lead in organic practices, this time for the organic fiber sector,” said Katherine DiMatteo, OTA’s executive director.

One of the most important differences between the OTA fiber processing standards and those in existence from other countries and organizations is the inclusion of an extremely detailed materials list stating what products can and cannot be used. OTA is not aware of any other fiber processing standard with such a list.

“We believe the standards will not only provide the basis for environmentally sustainable processing among companies in the organic fiber industry, but will also become of great interest to the conventional textile sector as it looks for ways to reduce negative environmental effects of textile production,” DiMatteo added.

OTA is scheduling a seminar about the new standards for interested companies on May 4 as part of OTA’s All Things Organic Conference and Trade Show at McCormick Place in Chicago (www.atoexpo.com). The Organic Trade Association’s American Organic Standards—Fiber: Post Harvest Handling, Processing, Record Keeping, & Labeling is available through a licensing agreement. Those interested should visit www.ota.com or contact OTA’s David Gagnon at dgagnon@ota.com.


ON THE MOVE
Dakota Beef LLC, the country’s largest vertically-integrated organic beef company, announced the appointment of Steve Lavey as the company’s Executive Vice President and Chief Financial Officer (www.dakotabeefcompany.com). Lavey brings more than 20 years’ experience in senior financial management in both private and publicly-held companies. Headquartered in Chicago, IL, Dakota Beef produces private label certified organic beef for both national retailers and food service industries.

California Certified Organic Farmers (CCOF), a leader in the organic industry for 30 years and one of the first organizations in North America to conduct organic certification, has hired two new employees to manage its communications, marketing and international goals (www.ccof.org).
Jake Lewin will fulfill the role of director of marketing and International Programs, with responsibility for membership management and oversight of international programs, including CCOF’s landmark export assistance program, COPES-CA (www.copes-ca.org), and Peggy Miars will fill the position of communications director, managing media, public and community relations, and internal and external communications for CCOF.

NSF International (NSF), an independent, not-for-profit leader in public health and safety risk management solutions, announced in March its acquisition of Quality Assurance International, Inc. (QAI), the global leader in organic certification (www.nsf.org; www.qai-inc.com). In the upcoming months, QAI and NSF will work together to provide independent, third-party certification programs and quality services that help protect the safety of food and consumer products. According to market surveys, two out of three certified organic products on U.S. store shelves use QAI certification services.

Organic food ingredient distributor Ciranda, Inc. announces that Elise Forward has joined the CIRANDA Organic Team as Quality Assurance Program Manager (www.ciranda.com). Her responsibilities include organic integrity and food safety for the supply chain from
manufacturing, transportation to warehousing.

Organic Valley Family of Farms (www.organicvalley.com) is partnering with Kashi Organic Promise (www.kashi.com) to entice health-conscious consumers with the benefits of an organic breakfast. The two companies are running co-branded full-page ads featuring Kashi Organic Promise cereal and Organic Valley milk. The multi-faceted partnership also includes free-standing inserts, truck advertisements and website programs.


U.S. Organic Market Projected to Exceed $30 Billion by 2007
A new report from London-based Datamonitor, a market analysis firm, projects that the U.S. natural food and beverage market will more than double in the next five years, to $47.5 billion (www.datamonitor.com). The organic market, expected to be worth more than $30 billion by 2007, is the major driver of this growth.

However, evidence in Natural Food & Drinks 2003 indicates that higher pricing is the main barrier to consumer acceptance of natural and organic food and drinks is all apparent. “This suggests that, while opportunities are open to manufacturers and retailers, educating consumers on the benefits of organic and natural food and drinks is vital, otherwise, marketers are going to find it increasingly difficult to justify the current price premiums,” comments Daniel Bone, Datamonitor consumer markets analyst and co-author of the report.

The report forecasts that the number of U.S. “loyal users” of natural food and drink products is set to grow from 79.4 million in 2002 to 112.6 million in 2007. These loyal users are defined by Datamonitor as consumers who adopt a natural “ethos” and buy natural and organic food and beverages from a range of product categories on a regular basis.

The report also shows that the organic segment remains the fastest growing and will continue to be a vital part of the natural food and drink market over the next five years. Organic ready-to-eat meals are forecasted to grow at an annual compound rate (CAGR) of almost 25% over the same period. Consumer demand for better quality and better tasting food and beverages also has led to steady growth in the U.S. fresh foods market, which is estimated by the market researchers to grow in excess of $198.1 billion between 2002 and 2007.

Datamonitor analysts report that a loss of trust and confidence in the packaged food industry is contributing to fast growth in natural foods. Consumers are increasingly conscious of the safety of food products, production methods and ingredients used, noting that the bulk of organic product consumers are between the ages of 25 and 55, peaking between 36 and 45. Other key life events such as childbirth, menopause, an empty nest and senior lifestyles are also “trigger points” for a switch to natural foods. “Research indicates that over 50% of consumers trust organic and natural products more than conventional food and drinks. This has contributed to the positive development of the natural and fresh food and drink markets, and provides a rationale for marketers to continue their efforts in this sector,” says Bone.

Datamonitor found that the U.S. organic market is showing impressive growth but high prices are limiting demand. Price premiums associated with organic food and beverages represent one of the most important deterrents to buying organic foods, and although consumers have an interest in foods produced in an ecologically sound manner, they are equally unwilling or able to pay the current prices for these products. Datamonitor’s advice to manufacturers and retailers is to seek a price premium of 10-20% above conventional food counterparts, or something equally acceptable to occasional and non-users of organic products.


Letter to the Editor
I very much enjoyed Julie Bricher’s interview with Nell Newman, Newman’s Own Organics (Dialogue, Organic Processing, January-March 2004). I specifically focused in on Ms. Newman’s comments regarding the packaging industry. I couldn’t agree with her more; however, there is power in the hands of the food manufacturers to prompt change.

As a packaging professional, with a strong commitment in folding carton manufacturing, I encourage food manufacturers to require the following, as a starting point in communication, when purchasing their cartons:
• Use soy inks in printing.

• The highest percentage of post-consumer waste in the board used. Work closely with vendors to promote efficient press and production times for energy conservation; avoid going “back to press” at all costs.

• Ship complete truckloads for energy conservation.

These few requirements alone may be the “kick in the pants” necessary to move forward the development of environmentally safe packaging throughout the industry.

The organic food industry is now strong enough to enforce these requirements of their vendors. From a consumer standpoint, I strongly feel that the organic food industry has the responsibility to require environmentally safe packaging of their vendors. I try very hard to limit the amount of pollutants in my environment and in my home, and would appreciate the industry that my family and I support do the same.

I would also like to take this opportunity to thank you and the staff at Organic Processing for promoting reliable—and yes, inspiring—information for the organic industry.
—Michael O’Keefe
Chapco Carton, Chicago, IL