The organic food movement started with big ideas of producing foods in a natural setting, outside of the industrialized processes of modern agribusiness. The hard work of many small farmers made the term “organic” stand for these big ideas, and created consumers who are willing to pay a premium for the goods. Many consumers of organic foods like the idea that their money is going to support local small-time producers (family farms) instead of marginally increasing the profits of a large food conglomerate. However, with the federal government defining what “organic” means, and big time food retailers and producers jumping into the organic food market to share in those premium profits, the question becomes how long will the consumers continue to believe that organic still represents these big ideals?
Businessweek has a piece up called Organic Myth: Pastoral ideals are getting trampled as organic food goes mass market. The piece looks at the changes in the organic food market through the story of Gary Hirshberg, the CEO of Stonyfield Farm, the organic yogurt maker. The company started like many other small-time organic producers: A couple of back-to-the-land environmentalists start an organic dairy in New England to produce yogurt outside of the “system.” The brand continued to grow, ultimately giving up its own farm and relying on other to supply its ingredients.
The growth ultimately led to the sale of a controlling interest in the company to Danone, although Jirshberg stayed on as the leader. The limited supply of organic ingredients has caused drastic changes in the production of the yogurt:
What to do? If you’re Hirshberg, you weigh the pros and cons of importing organic milk powder from New Zealand. Stonyfield already gets strawberries from China, apple puree from Turkey, blueberries from Canada, and bananas from Ecuador. It’s the only way to keep the business growing. Besides, Hirshberg argues, supporting a family farmer in Madagascar or reducing chemical use in Costa Rica is just as important as doing the same at home.
So what is the primary ingredient going into the production of this yogurt? Diesel fuel.
The article also quotes Mark Kastel of the Cornucopia Institute and the Institute’s report card:
Kastel’s report card included Horizon Organic Dairy, the No. 1 organic milk brand in the U.S., and Aurora Organic Dairy, which makes private-label products for the likes of Costco and Safeway Inc. Both dairies deny they are ethically challenged. But the two do operate massive corporate farms. Horizon has 8,000 cows in the Idaho desert. There, the animals consume such feed as corn, barley, hay, and soybeans, as well as some grass from pastureland. The company is currently reconfiguring its facility to allow more grazing opportunities. And none of this breaks USDA rules. The agency simply says animals must have “access to pasture.” How much is not spelled out. “It doesn’t say [livestock] have to be out there, happy and feeding, 18 hours a day,” says Barbara C. Robinson, who oversees the USDA’s National Organic Program.
But what gets people like Kastel fuming is the fact that big dairy farms produce tons of pollution in the form of manure and methane, carbon dioxide, and nitrous oxide — gases blamed for warming the planet. Referring to Horizon’s Idaho farm, he adds: “This area is in perpetual drought. You need to pump water constantly to grow pasture. That’s not organic.”
The reality of modern food production is consolidation. In 1980, the US had 334,000 dairy farms. We now have 60,000. This means that most of the milk we consume, including “organic” milk comes from large scale factory farms. This consolidation is going on in all areas of food production, from produce to pigs. Control of the food market by large companies permits them to set the prices paid to producers, making it impossible for small producers to compete. For instance, since 1985, the retail price of pork has increased 75%, but the hog producer’s share has gone from $.44 of each retail dollar to $.31.
With Smithfield Foods’s buying Premium Standard Farms, consolidation of the meat packing and livestock production in the hog market continues, giving the packers greater leverage to reduce the prices paid to producers, while maintaining profits at the retail level. All of this spells continued decline of the traditional “family farm.”