USDA Finally Sets Down Rules for Organic Food

The U.S. Department of Agriculture on Wednesday released the first universal organic production and labeling standards, a decade after the federal government was given the task of defining organic food.

The standards are expected to stimulate the appetite for organic foods in the U.S., boost food exports and encourage major manufacturers to begin rolling out new organic products for mainstream supermarkets over the next few years.

The rules, which replace a patchwork of 49 differing state and private certification standards, are intended to take the confusion out of organic products for consumers and assure them of a universal standard of quality for produce, meat, eggs, dairy products and processed foods bearing the USDA Organic seal.

“The organic standards offer another choice in the marketplace,” said Agriculture Secretary Dan Glickman, standing in the aisles of a natural foods supermarket in Washington. “Those who want to buy organic can do so with the confidence of knowing exactly what it is that they’re buying.”

Food meeting the new standards will begin hitting supermarket shelves next summer, and the USDA seal will make its first appearance on labels in 2002, agriculture officials say.

The new rules specify that products labeled as “organic” or “100% organic” cannot be produced using pesticides, chemical fertilizers, genetically altered ingredients, sewage sludge, irradiation, growth hormones or antibiotics.

The organic label is not a guarantee that these products will be completely free of traces of genetically engineered ingredients or pesticides that may find their way into certain crops, Glickman said. It guarantees only that these products are cultivated using organic farming methods.

And, Glickman added, the label is not an assurance that these products are safer or more healthy than conventional products.

Only a few changes were made in the final round of revisions, including a provision raising the percentage of ingredients in food labeled “made with organic ingredients” to at least 70%, the European standard.

Organic farmers and food processors will have 18 months to comply with the new standards, which will be administered by state and private agencies accredited by USDA.

Of the estimated 12,000 organic farms in this country, only about half are now certified, officials say.

The organic standards have been under development and mired in public controversy since President-elect George W. Bush’s father was in office. More than 275,000 public comments were received since the first set of standards was proposed in 1997, and the final text of the rules spans 500 pages. But now all sides seem satisfied with the result.

‘The USDA has done an excellent job of tightening up the rule so the inconsistencies [have been ironed out] and the gaps closed,” said Katherine DiMatteo, executive director of the Organic Trade Assn., which represents organic growers and handlers. “Not only will U.S. consumers benefit, but U.S. trading partners will have the reassurance that products certified as organic have met strict criteria and certification agents have been approved by USDA.”

Demand for organic products has been growing at about 20% a year since 1990. U.S. retail sales this year are expected to reach $7.76 billion, according to industry estimates. Although that is still just a tiny fraction of the $460-billion grocery business, supermarket officials say it is one of their most profitable and fastest-growing niches.

“It’s a key driver of our [sales] growth going forward,” said Gary Rhodes, a spokesman for Kroger Co., the country’s largest supermarket chain. By February, Cincinnati-based Kroger, which owns the Ralphs chain of markets in California, plans to have natural foods sections in 400 of its 2,338 U.S. stores. It now stocks between eight and 45 organic items in its produce departments.

Several of the country’s largest food makers have made major investments in organic or natural foods companies over the last two years, including Kellogg Co., H.J. Heinz Co., and General Mills Inc.

Analysts say that the new universal standards, coupled with a continued surge in sales, should persuade food makers to begin rolling out new products and expanding their distribution to mainstream supermarkets.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

What’s Organic?

Food labeled “organic” or “100% organic” cannot be produced using any of the following:

* Synthetic pesticides

* Chemical fertilizers or herbicides

* Ionizing irradiation

* Sewage sludge

* Genetically modified ingredients

Antibiotics and hormones are barred from animals used as meat and they must be fed a diet of organic feed and allowed access to pasture.

Processed food made with at least 70% organic ingredients can use the phrase “made with organic ingredients” on its label.

For example, soup made with at least 70% organic materials and only organic vegetables could be labeled “made with organic peas, potatoes and corn” or “soup with organic vegetables.”

The percentage of organic ingredients may be listed on products. However, packages not meeting other requirements will not display the USDA organic seal.

Processed products less than 70% organic can identify the specific ingredients that are organic only in the ingredients list.

Source: USDASeal will appear on organic foods