Harvey Case Threatens Use of Synthetics

On Jan. 26, 2005, the U.S. Court of Appeals for the First Circuit, based in Boston, MA, issued its decisions in a lawsuit brought by Arthur Harvey against Ann Veneman, former Secretary of Agriculture, concerning the National Organic Program (NOP) regulations.

The court ruled in favor of the plaintiff on three issues concerning technical inconsistencies between the NOP standards and the Organic Foods Production Act (OFPA) of 1990. In its ruling, the court called for changes to NOP regulations involving the use of synthetic substances in multi-ingredient products labeled “Organic”; the organic dairy feed allowance for transitioning herds; and nonorganic agricultural products usage in multi-ingredient products labeled as “Organic” (i.e., at least 95% organic ingredients).

According to the Organic Trade Association (OTA), which is currently evaluating the impact of the rulings, the court’s decisions with regard to these three issues will have a negative affect on the organic industry as a whole. For example, under the court’s decision, many manufacturers of “certified organic” products, made with at least 95% organic ingredients, would need to downgrade to the next label category, “Made with Organic Ingredients.” As products shift from the “organic” category with 95% organic ingredients to the “made with” category with only 70% organic ingredients, states OTA, lesser quantities of organic raw ingredients would be needed. This will result in fewer market opportunities for organic farmers, and consumers will find significantly fewer products with 95% or more organic ingredients on store shelves.

In addition, notes OTA, products in the “made with organic ingredients” product category can not use the USDA “Organic” seal, thereby reducing the visibility of organic products in the market. Further, the change in the interpretation of the feed requirements for converting dairy animals to organic production will be an impediment for additional farmers to tap into this burgeoning market. This setback is expected to hit small dairy operations especially hard.

Please see OTA’s Special Report “How Harvey v. Veneman Could Change the Organic Industry,” for more information about how the court’s rulings will impact the industry and what organic companies can do to mitigate adverse affects on their businesses.


Statistics Show Organic Industry Is Booming
Even as the industry faces the uncertainty of the Harvey case, there is plenty of good news, according to a recent report published by the Nutrition Business Journal. The report projects that total U.S. organic food sales are expected to reach almost $24 billion by 2010, with a 13.8% annual increase in organic sales over the next five years. Some products are projected to have a much more significant percentage of growth than others. Organic poultry, for example, is expected to increase 48.6% annually and organic meat could see 39% annual growth (www.nutritionbusiness.com).

In addition, the Natural Marketing Institute (NMI) just published its 2005 Organic Consumer Trends Report (OCTR), which indicates that 90% of consumers are aware of organic foods (www.nmisolutions.com). This far exceeds consumer awareness of other subjects, such as functional foods, biotechnology, net carbs and trans fat, to name a few.

Global Leaders to Offer “Bundled” Organic and Non-GMO Programs
QAI, Inc, the global leader in organic certification services and CERT ID (CID), the world leader in non-GMO certification announced in March their partnership to offer organic and non-GMO certifications to food companies (www.qai-inc.com).

The strategic collaboration will create an opportunity for companies to meet the demands for both organic and non-GMO certification, thus expanding their presence in the global food marketplace. The organic industry is the fastest growing sector of the food market and concerns about GMOs continue to be strong in Europe, Japan, Korea and Brazil, with labeling laws expected to be enforced even more rigorously than before.

“The Cert-ID program is world-class and will provide our clients access to important international markets with GMO labeling laws,” said Kristen Holt, president, QAI, Inc. “This includes 42 countries with an additional 27 countries planning for GMO labeling laws. By offering this service in combination with organic certification, clients will enjoy the convenience of one inspection meeting the requirements of both programs.”