According to a recent Orlando Sentinel article, consumers do not understand the difference between food products labeled as “natural,” which, for the most part, is an unregulated term, and those labeled “organic,” which carries extensive government regulation and requires certification. Some food producers are apparently taking advantage of consumers’ mistaken belief that “natural” is a greener term than “organic”; the natural food market reportedly grew 10 percent between 2007 and 2008 to $12.9 billion. Foods labeled “natural” are generally sold for less than those labeled “organic,” and producers can and do create their own definitions for what is “natural.” The article outlines the different rules applying to organic and natural food products. See Orlando Sentinel, September 29, 2009. In a related development, the French agency responsible for regulating competition and fraud has reportedly issued a note establishing requirements for foods sold as “naturel.” The document was apparently prepared for inspectors…
Tag Archives organic
The Cornucopia Institute, which represents the interests of small organic agricultural operations, has called on the U.S. Department of Agriculture (USDA) to investigate charges that Aurora Dairy’s High Plains facility is operating in violation of National Organic Program (NOP) standards. In its August 31, 2009, letter, the institute refers to a similar complaint it filed about Aurora Dairy in 2007. According to the letter, the agency assured the institute that the 2007 complaint “would be incorporated into the probation that Aurora Dairy was operating under, pursuant to a consent agreement signed with the Department. Based on freedom of information documents, obtained by The Cornucopia Institute, no scrutiny of this facility ever took place and the allegations we communicated in 2007 were never investigated.” The letter outlines how Aurora Dairy has allegedly fallen short of NOP requirements and specifically points to the planting of an annual forage crop in the animals’…
“Relaxation of the federal standards, and an explosion of consumer demand, have helped push the organics market into a $23 billion-a-year business, the fastest segment of the food industry,” claim Washington Post writers Kimberly Kindy and Lyndsey Layton in a July 3, 2009, investigative report alleging that the U.S. Department of Agriculture (USDA) and its officials with the National Organic Standards Board (NOSB) have diluted organic regulations in response to “corporate firepower.” The article states that since its inception in 2002, the list of synthetics permitted in organic products has grown to 245 substances from 77, while only one item has ever been removed from the list. “The argument is not whether the non-organics pose a health threat, but whether they weaken the integrity of the federal organic label,” according to the report, which notes that USDA’s Inspector General’s Office is investigating allegations of non-compliance and complaints about the program’s…
Multidistrict litigation plaintiffs who sued Aurora Dairy Corp., an accredited organic certifying agent and a number of food retailers have appealed the district court decision dismissing their claims to the Eighth Circuit Court of Appeals. In re: Aurora Dairy Corp. Organic Milk Mktg. & Sales Practices Litig., MDL No. 08-1907 (E.D. Mo., appeal noticed July 2, 2009). As noted in the June 5, 2009, issue of this Update, the district court concluded that the claims, which involved allegations that Aurora Dairy sold its milk as organic while violating national organic program requirements, were preempted by federal law and regulations. In their list of issues on appeal, the plaintiffs question the validity of this determination.
The U.S. Department of Agriculture (USDA) and the Canadian Food Inspection Agency have agreed to recognize each other’s organic certifications. As of June 30, 2009, Canada will have national organic standards in place that have been determined to be the equivalent of U.S. National Organic Program requirements. Thus, products meeting U.S. standards can be sold as organic in Canada, and vice versa. The only exception is for products from fields in the United States treated with sodium nitrate; such crops cannot be sold in Canada as organic. The agreement, however, does away with the need for a three-year transition period from sodium nitrate use. According to USDA, “more than 80 percent of Canada’s organic consumption comes from imports, and approximately 75 percent of those imports come from the United States.” The value of the total market for organic products in Canada apparently ranges from $2.1 to $2.6 billion. U.S. Trade…
The multitdistrict litigation (MDL) court in Missouri before which nearly 20 putative class actions against Aurora Dairy Corp., an accredited organic certifying agent and several retailers had been consolidated for pre-trial proceedings, has dismissed the lawsuits with prejudice finding that federal organic food laws preempt the claims. In re Aurora Dairy Corp. Organic Milk Mktg. & Sales Practices Litig., MDL NO. 08-1907 (E.D. Mo., decided June 3, 2009). Relying on a U.S. Department of Agriculture (USDA) investigation that found the dairy in violation of national organic program requirements relating to pasturing and organic management, the plaintiffs alleged violations of various state consumer protection laws, breaches of express and implied warrantees, negligence per se, negligent misrepresentation, and unjust enrichment. The court discusses at length the program under which Aurora Dairy conducted its operations with the overall supervision and control of USDA. While the court found that the litigation claims were not expressly…
The Federal Trade Commission (FTC) has announced its approval of a final consent order in its challenge to the merger of Whole Foods Market, Inc. and Wild Oats Markets, Inc. Under the agreement, Whole Foods will sell 32 of its supermarkets and give up unrestricted rights to the “Wild Oats” brand. When the agreement was announced in March 2009, FTC Chair Jon Leibowitz claimed, “As a result of this settlement, American consumers will see more choices and lower prices for organic foods.” Whole Foods and Wild Oats completed their merger before an appeals court finally agreed with the FTC that the merger could have anti-competitive effects and allowed it to move forward with administrative proceedings against the company. Thus, it was unclear until the consent order was filed what remedies could be ordered if the FTC proved its case. See FTC Press Release, May 29, 2009.
The U.S. Department of Agriculture (USDA) has issued a proposed rule that would amend its national list of allowed and prohibited substances for organic crop production and organic processing. The rule adds six substances, including the fortified cooking wines marsala and sherry for organic processing, and removes one substance from the list. Written comments must be received by August 3, 2009. See Federal Register, June 3, 2009.
A federal magistrate in Colorado has consolidated two lawsuits that address whether Aurora Dairy Corp.’s insurers are required to defend or indemnify the organic dairy in a host of consumer class actions alleging that the company falsely certified its milk as organic. ACE Am. Ins. Corp. v. Aurora Organic Dairy Corp., No. 08-1236 (D. Colo., order entered May 20, 2009). The putative class actions, consolidated before a multidistrict court in Missouri, claim that Aurora’s milk products do not conform to organic standards, citing a U.S. Department of Agriculture report that purportedly found shortcomings in Aurora’s organic operations. Among other matters, the claimants seek disgorgement for unjust enrichment. Aurora sued Nationwide Agribusiness Insurance Co. seeking a declaration that the insurer was required to defend it in at least one of the pending class actions. The dairy also sued for bad faith, breach of contract and related claims. A group of insurers…
The U.S. Department of Agriculture (USDA) has announced the first wide-scale survey of organic farming to ascertain how the growth of such practices is changing the face of American agriculture. The Organic Production Survey will examine organic farming that took place during the 2008 calendar year, including production and marketing practices, income and expenses. “This is an opportunity for organic producers to share their voices and help ensure the continued growth and sustainability of organic farming in the United States,” USDA Secretary Tom Vilsack said. Survey results will apparently help shape future farm policy, funding allocations, availability of goods and services, community development, and other key issues. USDA’s National Agricultural Statistics Service (NASS) will mail the survey in early May 2009 to all known U.S. organic producers, who are asked to respond by June 17, 2009. Participants can also complete the survey online. NASS will publish results in winter 2009.…
