Horizon, the commercial organic milk producer, is introducing its first new non-organic products for children. These will be labeled "natural," not organic. Horizon's press people say the products "don't contain growth hormones and will be easier on the pocketbook...These are our first natural offerings in the marketplace, and Horizon always tries to provide great-tasting products for moms and for families." Really?
"Natural" is an odd term. It has no regulatory meaning. Meats that are "natural" are supposed to be minimally processed and if their labels say they were produced without antibiotics or hormones the statements have to be truthful and not misleading. As I discussed in What to Eat, meat retailers can't tell the difference between "natural" and organic and neither can a lot of consumers. Retailers are happy to charge the same high prices for the "natural" products and consumers think they are buying organics. This is not a good situation.
So why would a company ostensibly devoted to the principles and practice of organics suddenly decide to start marketing "natural" products? For the answer, I defer to Mark Kastel of the Cornucopia Institute who sent this message Wednesday:
The rumors have now been confirmed. Dean Foods' WhiteWave division has now announced that they will bring out "natural" (conventional) dairy products under the Horizon label. This at a time when organic dairy farmers around the country are in financial crisis due to a glut of milk.
This move comes on the heels of the recent decision by Dean/WhiteWave to switch almost the entire product offerings of their Silk soymilk and soyfoods line to "natural" (conventional) soybeans. They made the switch to conventional soybeans, in Silk products, without lowering the price. Sheer profiteering.The likelihood is that they will create this new category and enjoy higher profits than they currently realize having to pay those pesky organic dairy farmers a livable wage.
The news story below, from the Natural Foods Merchandise quotes Dean Foods/WhiteWave officials saying these products will be "easier on the pocketbook." Yes, they will be designed to undercut certified organic on price.
Horizon is the largest, in terms of dollar volume, organic brand in the marketplace. Silk holds the leading market share in soyfoods and was once, prior to Dean Foods' acquisition, a 100% organic company and brand.
SHAME!
Stay tuned. Dean Foods has just declared war on the organic industry. Although the first shot has been fired it will not be the last.
The organic farmers, consumers and ethical business people who built this industry did so in effort to create an alternative food system with a different set of values. We will all work hard to defend what so many good people spent so many years to create.
Mark A. Kastel
Senior Farm Policy Analyst
The Cornucopia Institute
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"...meat retailers can't tell the difference between "natural" and organic and neither can a lot of consumers. Retailers are happy to charge the same high prices for the "natural" products and consumers think they are buying organics."
We can say the same about the distinction between 'organic' and 'conventional' products. Organic and natural are credence attributes; they signal a production process that consumers can't observe like they do other dimensions of quality. So we ask a third party (in this case the government) to step in a certify that a product is, in fact, organic. But the problem is that there is little agreement on what organic means or should mean. So we have government certifying a nebulous concept.
As to why Dean Foods would start a natural line, Mr Kastel seems to be genuinely surprised that they're trying to make money. And they'll do so by serving a large class of people that want some of the attributes of organic, including rbst-free, but perhaps not all. And yes, a lower price benefits those consumers. Why should Dean Foods be ashamed of that?
If Horizon switches to "Natural" from Organic and doesn't lower their price then I'd say there is something to call them on. Otherwise this is just an example of a company doing what companies do: responding to market demands. My hunch is that the more expensive stuff is not selling as well in the recession as it did before and its not Horizon's responsibility to continue to take a loss for the cause. Of course, we need to get the message out that Natural has virtually no real meaning and is just a marketing gimmick. It wouldn't hurt for the FDA to tighten up standards either.
But some of this seems like political spin on the part of the hard core organic advocates. For some reason many of the True Believers hold a grudge against successful companies like Horizon claiming that they water down the message. I have always maintained that companies like this have done the organic movement a huge public service by providing a stepping stone for people who want to eat healthier foods but who can't (or simply won't) pay 2-3 times as much for the full on organic, free range products you see at specialty health food stores. It takes baby steps.
Marion, I love your column. You are consistently on the pulse of what is going on with our woefully inept, highly conglomerate food system and the federal regulatory standards that seem to be spotty at best. Thank you for constantly providing sources and information that I can trust.
Just this morning, I found an article via www.greenwala.com (an online green-themed social network) that questions the very organic standards that all of us tend to lay our faith in -- http://www.greenwala.com/profiles/2096-Bob-Kurz/blog/1237-Organic-Labeling-Are-We-Paying-A-LOT-MORE-For-A-Lot-Less In an age of ridiculously rampant food recalls (many of which I've learned about via The Atlantic), I am sure that consumers have quietly breathed a sigh of relief as they cough up extra cash for their organic products. That green and white label has given all of us a false sense of security, according to today's latest headlines splashed all over the internet.
I feel that nothing is sacred. Consumers have been duped for entirely too long. If you believe some accounts, certified organic crops can often become contaminated when they cross pollinate with conventional crops, but farmers turn a blind eye so that they don't run the risk of losing their shirts. That's nothing compared to what's going on behind the scenes of our processing facilities. Should we all boycott the system and make everything from scratch? I'm at the point where I'm seriously considering it...
Organic and natural are credence attributes; they signal a production process that consumers can't observe like they do other dimensions of quality. So we ask a third party (in this case the government) to step in a certify that a product is, in fact, organic. But the problem is that there is little agreement on what organic means or should mean.
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I don't believe the hype about organic foods.
Read about organic food myths here:
http://skeptoid.com/episodes/4019
Organic food has a lower yield per acre so more wilderness has to be converted to farmland to produce the same amount of food.
So if you are in favor of preserving as much wilderness as possible, you should be wary of organic food.