A La Moda

Posted - September 1, 2007

‘A la Moda’ Goes International

O.W.N. News Network - as printed in O.W.N. Fall 2007

A LA MODA, a unique promotional campaign for the organic Spanish olive oil from Andalusia, has hit the international runway. Dressed up in “haute couture”, eight beautiful bottles from some of the best organic olive oil producers from Andalusia are ready to be introduced to other European countries.

The project, whose title means “in fashion”, started in 2005 with an invitation to Spanish fashion designers to create labels for these bottles of the best organic olive oil producers in the region. Inspired by the Andalusian landscape, each designer presented a unique colorful label in a stylish bottle. The bottles have been a great package with which to portray organic olive oil as a high quality gourmet product.

A LA MODA started as a joint initiative of CAAE , non-profit organization for the promotion of organic certified farming and livestock production and the Spanish Association of Fashion Designers. Early in the summer CAAE announced the incorporation of A LA MODA as an association specially designed for promotional activities on behalf of organic oils producers beyond the Spanish border. “We saw in A LA MODA a project that could evolve into a marketing umbrella for the continued promotion of our oils in the international market,” says Arantxa Sanchez of CAAE.

A LA MODA indeed turns out to be a great way to enhance both food and fashion, two of Spain´s strongest sectors.

CAAE is a non-profit organization for the development of organic certified farming and livestock production. CAAE aims to bring together those with an interest in the organic food sector to promote and spread the values of organic production. In addition, the organization organizes campaigns, develops standards to foster these organic markets, and encourage the availability of organic food for consumers. For more info: www.caae.es

Organic Ownership

Posted - September 1, 2007

Who Owns Organics?

By Suzanne Bowness - as printed in O.W.N. Fall 2007

Charting Organics

How big is organics? Dr. Phillip Howard is an Assistant Professor at the University of Missouri whose research focuses on investigating the relationships between food, agriculture and public health. Using a series of charts, Dr. Howard has traced the organic industry’s structure in the United States in terms of its significant acquisitions and introductions over the past few years.

Organic & Wellness News asked Dr. Howard to discuss his research, his charts, and to tell us about the trends and developments within the growing organics industry that are suggested by his research:

How would you describe the trends indicated by your charts?

There are several trends. Acquisitions by the largest food processors occurred primarily between 1997, when the USDA [United States Department of Agriculture] national organic standards were first proposed, and 2002, when they went into effect (and as you noted in the last issue of Organic & Wellness News, these ownership ties are not apparent on the product labels).

The trend since then has been introductions of organic versions of very mainstream brands, such as Rice Krispies and Oreos. There have been a few exceptions, like Hershey’s more recent purchase of Dagoba.

However, acquisitions are now mostly being made by venture capitalists. Investment firms will often acquire multiple companies within the same sector of organic foods, such as breads, meats, or chocolate. Presumably they intend to invest in increased distribution and sales with an intent to be acquired by even larger firms, and big returns on their investment, at a later date.

What is the future of the organic sector if the pace of mergers and acquisitions continues to grow as it seems will be the case?

There are few large, independent organic processors left to acquire. Those that remain have made a principled decision to remain independent and have resisted enormous buyout offers. The acquisition frenzy of the late 1990s was fueled by the belief that these organic brands were highly valuable because of the way consumers identified with them, not just their assets.

Interestingly, a typical organic consumer doesn’t seem to be as brand conscious as a typical mainstream consumer, aside from the “brand” of organic certification itself. Therefore the acquisitions currently being made by venture capitalists may not pay off. It might be cheaper for the largest processors to simply continue to introduce organic versions of existing products.

Do you think the future will see two tiers of organics (i.e. a pure grassroots movement and a larger consolidated mass industry)? Does this industry have room for both tiers?

This is a convenient way to look at it analytically, even though divisions between the two may in reality be somewhat blurry. Many pioneering organic farmers no longer go through the USDA certification process, for example. If they market directly they may not need the hassle and expense when they see their practices as going ‘beyond’ the minimum USDA standards. Core organic consumers understand this and support organic by other names (Certified Naturally Grown, Mendocino Renegade, a farmer’s own label, etc.). This grassroots end of the spectrum will continue to exist, but it won’t be called organic.

In between you may find farmers and food processors that are certified organic, even though they would prefer stronger standards, who supply smaller outlets like retail food co-ops and independent natural food stores. While this segment is growing, it is a declining proportion of overall organic sales. In effect, the smaller end of the certified organic spectrum will probably get smaller in relation to Wal-Mart scale organic.

How will this affect small farmers?

Some small farmers may thrive by focusing on things that mass market organic can’t provide, like superior taste, unique varieties, and the embodiment of values that aren’t codified in organic. My research suggests that consumers are most interested in attributes that include local, humane treatment of animals, and a domestic version of fair trade.

It is the medium-scale farmers that are being hurt the most, as they are too big to sell all of their products through direct markets, but not big enough to supply mass markets. There may be some exceptions, such as if they are organized in a cooperative like Organic Valley.

What are the down sides to these growth trends? Are there any potential positives?

The down sides are pressure to weaken USDA organic standards, more imports of organic foods from Latin America and China, lower prices for farmers, factory-scale ‘organic’ farms, and highly processed and packaged ‘organic’ foods.

The positives are increasing the amount of land growing food without synthetic pesticides, greater availability of organic foods for consumers, lower prices for consumers (at least in the short term), and more institutional support for organic research and education.

Any other elements of this trend you think we should be watching for?

It will be interesting to see how far the big processors are willing to push to weaken the USDA organic standards, and for how long consumers will continue to purchase “organic” the way it is being redefined.

Dr. Howard also points in his recent article “Who owns organic? From roots to suits”, that even though “some pioneers within the organic movement, such as Cascadian Farm’s Gene Kahn and Stonyfield Farm’s Gary Hirshberg, went from being small-scale hippie farmers to millionaire executives in some of the largest food corporations in the world, the commitment to food produced without synthetic chemicals has remained, yet some of the other original goals seem remote.”

Later on in the article, Dr. Howard adds a final comment about the ultimate success of organics. “The success of organic, however, is a striking reminder that we have the power to influence the way food is grown, processed and distributed. Those who continue to fight for the ideals of the original organic movement should feel optimistic about achieving these goals in the future.”

For more of Dr. Howard’s articles and to view the charts he has produced, visit his website: http://www.msu.edu/~howardp/

Camari

Posted - September 1, 2007

Camari: Made in Ecuador

By Sebastian Velasquez E. - as printed in O.W.N. Fall 2007

With demand for organics growing around the world, Ecuador is responding. Longstanding companies are becoming organic certified and farmers’ associations are working cooperatively to commercialize their products.

One example of a successful organization is Camari, formed 26 years ago in the local Ecuadorian market. Camari is a cooperative with an array of fronts-helping agricultural production between small sectors of farmers and providing educational programs about legal land possession, management of water springs, credits, commerce and technology to name a few. The association has stores, plants and centers to supply the stores and increase the association networks between its members.

ERPE, a cooperative with 6,500 farmer families, supplies most of the raw product for Camari. ERPE also works for the education and development of Ecuador’s indigenous and farming sectors, to be more competitive in the global economy. Camari exports to Europe and North America, through its web site and also as member of IFAT, the International Fair Trade Organization.

Camari’s products include tropical fruits and grains from the high Andean mountains. The challenge is to expand. “Our principal goal is to extend the manufacture of food with added value, as a way for reaching better markets and incomes,” says Homero Viteri, a Camari representative.

To achieve this goal Camari is developing some processed foods, such as dried mushrooms, jellies, organic cane sugar, energy cereal bars, crackers and pasta made of quinoa. In 2006, Camari made US $2.5 million in sales, 20 percent were exports. In 2007 they hope to reach three million dollars. By 2010 the goal is sales for five million dollars, create more business centers and to triple exports. “Ours is an integral commitment, with the communities as well as the ecology, avoiding monocultives and solving desertification,” says Viteri.

Textiles Growth

Posted - September 1, 2007

Organic Textiles More Popular

By Gloria Neumann - as printed in O.W.N. Fall 2007

Organics: it’s not just for food and cosmetics anymore. Organics has reached the textile sector, prompting consumers to ask questions about where their textile products come from and to investigate the social and ethical values behind these products. Since 1989, the International Working Group on Global Organic Textile Standard integrated by International Association Natural Textile Industry (Germany), Soil Association (England), Organic Trade Association (USA) and Japan Organic Cotton Association (Japan) have been working towards a harmonized world-wide recognized organic textile standard. 2005 saw the approval of the first Version of the Global Organic Textile Standard and its implementation scheme. These considerations are not just in the planning stages either-consider the evidence in these developments around the world:

• African organic cotton projects, bioRe India and bioRe Tanzania, are rapidly expanding their activities, especially in India, where the number of bioRe farmers has skyrocketed by 2,700 farmers since last year
• Hennes & Mauritz (H&M), Europe’s second largest clothing retailer by sales, has said it will continue to increase its use of organic cotton in certain clothing ranges and revealed it has already exceeded its original target of 100 tons of organic cotton for 2007
• Japan’s speedy bullet trains are now lighter, more fuel efficient and have a higher proportion of recyclable components due to a new polyester-based textile fabric from Teijin Fibers Limited
• Good news also lies in the fact that the world is cracking down on poor quality: Officials in New Zealand launched an investigation after children’s garments imported from China were found to contain very high levels of formaldehyde (900 times higher than the recommended safety limit). This news comes on the heels of the more widely reported recall by Mattel of 18.2 million toys made in China due to hazards such as the use of lead paint.

There is still a long way to go in the textile sector and related industries, but if sales for apparel made from organcic cotton have grown from 85 million $US in 2003 to 500 million in 2006 in the United States, there is hope that more companies will join more sustainable ways of textile production. The global market for organic cotton apparel has reached 1.2 billion (www.Organic Exchange.com)

Carrefour

Posted - September 1, 2007

Carrefour Showcases Organics in Colombia

O.W.N. News Network - as printed in O.W.N. Fall 2007

If the dream of most organic companies is to have their wares on display at a Whole Foods Market (WFM), in Colombia the equivalent goal is to reach the shelves of Carrefour. Whereas WFM is the world’s largest natural and organic retailer in the world with 300 stores in the US, Canada and the UK, (with the new Wild Oats Market merger); Carrefour is the second largest supermarket chain in the world with 12500 stores in 29 countries and sales of more than EUR80 billion in 2006 in Europe alone, according to Planet Retail. In other words, certainly a desirable target for organics producers.

So what do Carrefour and Whole Foods Market have in common?

For starters, both have market access to small organic and natural specialty food enterprises. Although a large multinational, Carrefour has become one of the largest distributors of organics in the world, supporting organic farming since 1992. While not exclusively organic, Carrefour is committed to offering space to small local suppliers of natural and regional foods, based on the ethnic population they serve from each store. Ninety percent of products in each Carrefour store is sourced from domestic suppliers in each country where the company operates.

In Colombia, currently thirty five suppliers of natural and organic certified foods take part in Carrefour’s quality lines p rogram under private labels such as “Tierra Colombiana” (Colombian Land) and Calidad Natural (Natural Quality). They are mostly small- and medium-sized producer associations including women’s cooperatives ,

aboriginal people, and other vulnerable minority groups, says Marcela Romero, manager of corporate social responsibility. Medium and large enterprises known for the high quality of their ingredients are also accepted as suppliers, as long as they meet strict social and ecological standards.

Around 190 products are organic certified or classfied as gourmet ethnic & specialty foods from small suppliers, one percent of the company’s total inventory in Colombia.

“We selected the suppliers with assistance of the Ministry of the Environment under its ‘Green Markets’ program which stimulates production and consumption of organic certified foods,” says Romero. “We only work with certified companies and cooperatives able to trace back every ingredient and processing step before their product reaches our shelves.” Early this summer Carrefour also signed an agreement with the International Organization of Migrations to offer opportunities for the products the IOM promotes on behalf of the disadvantaged communities they assist. Products include handicrafts, home fashions, paper products and apparel.

To appreciate Carrefour’s commitment it is important to note that large food multinationals have not introduced any organic products to their lines offered to the Colombian market, perhaps because demand is still too low. “Most people have no clear idea of the meaning of organics,” says Farrah Adam, of Bloo Mountain, trader of organic foods and based in Bogota. There is need for a national policy to stimulate more information and educate consumers and industries about the benefits of organic farming and how organic foods are related to improve our health. At Carrefour, the proof that this would be beneficial is in the growing variety of products available on their store shelves-coffee from Tiwun, organic spices from TANA, jam and antipasti from Ama lo Natural. A good start for Colombia meeting the growing demand for organic and ethnic specialty foods around the globe.

Beyond Corn Syrup

Posted - September 1, 2007

Save Us from Corn Syrup:
Try Low-Calorie Natural Sweeteners

By David Giovinazzo - as printed in O.W.N. Fall 2007

A visitor to our planet viewing the six o’clock news couldn’t help but seeing that in many countries, huge waste-lines and diabetes are big problems. The American Centre for Disease Control and Prevention states that, in the past 15 years, the number of people suffering from diabetes II has more than doubled. The culprits? Certainly two are refined sugar and corn syrup. Many think high-fructose corn syrup (HFCS) is the main cause.

HFCS raises insulin levels higher than refined sugar. And it causes the liver to make triglycerides - a bad cholesterol. In the past years, with sugar tariffs up, and corn prices down, HFCS use has boomed. Now you can find it in almost all processed foods, from breakfast cereals to canned foods - much to the detriment of those suffering its consequences.

What can be done? Several low-calorie, natural sweeteners have come to the rescue. One of the most popular is stevia -a plant related to the chrysanthemum and sunflower. Three hundred times sweeter than sugar, it was first discovered 200 years ago by the Guarani people in Paraguay. But both the US Food and Drug Administration and Health Canada have banned it as a sweetener, only allowing it to be advertised as a dietary supplement.

The European Union has also banned it. But, given the need for sweeteners to replace refined sugar and corn syrup, why hasn’t more research been done on stevia? At least one lobby group in the European Stevia Association (EUSTAS) founded in 2006 wants just that. EUSTAS’ goal is the compilation of an application for the permission of the sweet contents (steviol glycoside) of the plant Stevia rebaudiana as food additive to be submitted to the Scientific Committee on Food (SCF) of the European Commission.

Meanwhile, the giants Cargill and Coca Cola have joined to “refine” stevia, to reduce it’s aftertaste that some users have complained about. The two giants have described rebiana, the processed stevia, as “the industry’s first natural, zero-calorie sweetener.” But the rebiana is processed, so not so natural. And, with stevia’s two hundred-year history, neither is a natural, zero-calorie sweetener new.

Nor is stevia itself the only natural, low-calorie, sweetener. Wholesome Sweeteners, a Texas-based company, has come out with “Organic Zero”, made from organically grown sugar, but without calories. Seventy percent as sweet as sugar, and with a glycemic index of zero, consumers can use it in baking. Glycemic indexing ranks carbohydrates according to their effect on blood sugar levels - so is vital to diabetics and other with metabolic disorders. Karen Stevenson of Wholesome Sweeteners explains, “Organic Zero is also highly digestible - important for people who prefer calorie-free, low glycemic-index sweeteners as many of the others on the market cause significant digestive distress.”

Another natural sweetener is banana syrup. “As far as we know” says Daniel Orlich of Florida Products, of Costa Rica, “we were the first company developing banana syrup as an alternative natural sweetener that blends well with milk.” The syrup, he adds, is good at masking unpleasant flavours in some foods, and is rich in potassium. A company also busy making low-glycemic syrup is New York based Organic Nectars. It makes one from the agave plant, known for its lowest glycemic index of all natural sweeteners.

And then there is panela a “peasants food” Latin America, also common in Asia and India. It is a granulated, yellow-brown caramel product that you can eat as is, or dissolved in liquids. It is sweet, but has more nutrients than sugar, such as vitamins A, C, D and E and glycolic acid, according to Juan Manuel Duran of sugar cane farm Lucerna in Colombia.

Meanwhile, growers are cultivating stevia in South America, China and Canada. While the Coca Cola Cargill project is recent, smaller producers have promoted it for years. Cindy Levington, who, with her husband Paul, runs Suede Hills Organic Farm in Savona, British Columbia states “The farm first grew stevia about four years ago, starting with 400 plants. Now, we plant about 15,000 annually.” But the market for stevia shows its growth in her e-mail box. “I receive e-mails daily, from those who want to buy not only my product, but also my entire crop!”

In 2006, Global Industry Analysts have reported that the global sweetener market is growing at 3.7%. Where health improves, profits follow. With refined sugar and corn syrup - and certain artificial sweeteners, showing themselves far from ideal, little doubt the market for low-calorie, truly natural sweeteners like stevia will boom. And hopefully, many waste lines will bust.

Ecover

Posted - September 1, 2007

New Ecover Factory in France

O.W.N. News Network - as printed in O.W.N. Fall 2007

Ecover has opened a new eco-friendly factory in Boulogne Sur Mer, France.

The company, with headquarters in Malle, Belgium, is a top leader in the production of ecological cleaning products. The new plant represents an investment of 10 million euros. According to Michael Bremens, managing director at Ecover, the firm currently has 26,000 tons of fully biodegradable detergents manufactured annually, a number expected to double in the next 3-4 years. The new factory has been built after the Malle location reached maximum capacity.

The bright future of Ecover is reflected on their strong international distribution network , with Europe and the US as their primary customers. They make a point of working tightly within their principles of ecology, manufacturing large quantities of 100% biodegradable detergents, and cleaners.

Ecover was the first detergent producing plant in the world to run eco-friendly. Following its strong commitment to sustainability and success of its plants in Belgium and Switzerland, the new factory has also been designed Green, with rainwater used for plumbing, a green roof covered with vegetation to maintain proper insulation, and green electricity.

Bremesn also mentioned, that the company plans to contribute to solving the unemployment problem in Northern France by offering jobs to locals.

All said and done, the project truly lives up to its name.

Germans Fight GMOs

Posted - September 1, 2007

Germans Fighting Against GMOs

By Lucia Lorente - as printed in O.W.N. Fall 2007

The organic sector in Germany is concerned about GMOs (genetically modified organisms) entering the country. The recent draft law for GMOs presented by the Ministry of Agriculture has been strongly criticized the organic sector and other interest groups. Important players like Bio Verlag and Rapunzel had joined efforts to keep the country clean of GMOs. Meanwhile, the EU approved this year the commercial use of a GM potatoe made by BASF.

“Gen Food Nein Danke” - (GMOs no thanks) is the campaign rising awareness about the danger of GMOs among consumers in Germany, inviting them to contact their political representatives and influence the proposed new GMO legislation.

Joseph Wilhem, organic pioneer and founder of Rapunzel - a company with more than 30 years growing, producing and trading organics- called for a seven-week march (July - September) across Germany to protest against GMOs. The march offers activities to inform the citizens about GMOs and has bee joined by personalities like former Agriculture Minister Renate Kuenast.

The draft law defended by Agriculture Minister Seehofer considers just a 300-metre buffer zone between GMO and organic crops to prevent cross-pollination. Organic farming association Naturland said the GMO contamination level of 0.9 percent is too high and its members would be unable to sell such crops as organic. On the other hand, tests to prove this contamination and get any compensation, would have to be paid out by the organic farmers, a fact that they find unfair.

To learn more about the initiatives against GMOs: www.genfoodneindanke.de and www.genfrei-gehen.de

Canadian Wheat Board

Posted - September 1, 2007

Canadian Wheat Board Boosting Organics

O.W.N. News Network - as printed in O.W.N. Fall 2007

The Organic Trade Association (OTA) has learned that the Canadian Wheat Board (CWB) is implementing a major policy change on organic wheat sales that will lower marketing costs for organic growers. A new program, the Organic Fixed Spread Contract (OFSC), is expected to lower fees to about $0.05 to $0.15 per bushel, compared to pricing in the previous system that could reach over $1.00 per bushel. CWB will also increase resources for organic marketing, with additional staff and development of a cash-buying program. See the OTA press release at www.ota.com.

Taste of Brazil

Posted - September 1, 2007

Fazenda e Casa Joins Taste of Brazil

By Adriana Michael - as printed in O.W.N. Fall 2007

Fazenda e Casa, a Brazilian producer of pickled foods and preserves, will join the Carnival mood at Whole Foods Market (WFM) early in September. As part of the promotional campaign “Organics Brasil”, WFM has introduced “Taste of Brazil,” a day to celebrate Brazilian culture at its retail stores.

The largest organic and natural products retailer in the world has already celebrated “Taste of Brazil” at two of its 25 stores located in Southern California.”This is a great opportunity to connect consumers with our culture and the products we are promoting,” says Jacqueline Gracie, the marketing consultant who introduced the Organics Brasil brand to WFM last year.

In a fiesta atmosphere surrounded by Brazilian artists, massage therapists and professional chefs, shoppers as well as the store’s sales force get to learn about the richness of Brazilian cuisine and the ingredients behind Brazilian brands. “People taste new flavours, such as acai juice with granola, or try out Brazilian organic certified cosmetics with unique Amazon ingredients like Cupuaçu, while in the hands of a professional massage therapist,” says Gracie.

Ming Liu, project manager for Organics Brasil, believes that educating and training the workforce at the retail outlets will reflect in greater sales under the Organics Brasil label. “We expect to reproduce the marketing model we are developing with WFM in other countries too,” says Liu.

Currently only a select group of Brazilian organic companies have been accepted as suppliers under the umbrella Organics Brasil. Headquartered in Curitiba, Paraná, Brazil, the Organics Brasil Project is a result of a joint initiative between APEX-Brazil (Brazilian Export Promotion Agency) and IPD-FIEP (Federation of Industries of the State of Paraná).

Over its nearly 27 year history, Whole Foods Market has helped not only to promote natural and organic foods, but also supporting local food artisans. With its store-based buying program, every WFM store tailors itself to its community by seeking out local and ethnic culinary treasures. In Southern California, the Latin American community has a strong presence, which explains the advantage of Organics Brasil at WFM stores in the area. How about a trip to WFM for a delicious acai-acerola drink of O.N.E. and the tantalizing royal hearts of palm from Fazenda e Casa at the rhythm of samba?