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This Economy: Is new rule a boon for Pa. organic milk sales?

By Harold Brubaker

Five years ago, sales of organic milk were booming, but the industry was embroiled in controversy over big dairy operations in Western states that were flouting the spirit of federal organic rules by giving cows only limited access to pasture.

Now, with growth in sales of organic dairy products soft for the first time since the U.S. Department of Agriculture's organic-food rules took effect in 2000, a new rule effective Thursday sets tough standards for how much of its food a dairy cow should get from grass during grazing season.

This rule, which gives farmers a year to come into compliance, should be to the advantage of small organic-dairy farms in Pennsylvania and the other big Northeastern dairy states, New York and Vermont.

"We do have some real advantages over the Wild West, not the least of which is good grass-growing weather, but also close markets and smaller family farms," said Roman Stoltzfoos, who milks 200 cows on a Lancaster County farm near Gap.

Stoltzfoos, who sells his milk to Natural By Nature in West Grove, said his cows already got 50 percent to 60 percent of their food from grass during grazing season, putting him well over the minimum of 30 percent required by the new rule. The grazing season must be at least four months long. Many cows in Pennsylvania graze for six months.

Many small farmers have taken to grazing their cows because, done right, it can be more profitable than raising crops to feed cows, or buying feed.

But not all of Lancaster County's estimated 100 organic dairies are going to have it as easy. Most farms there are small. It is not uncommon to have intensely farmed 60-acre dairies side by side with 40 cows each, said Peter Miller, eastern regional manager for milk producer Organic Valley, of LaFarge, Wis.

"They are literally fencing off cropland" to plant more pasture, Miller said. "There probably will be some casualties."

The new rule replaces a vaguely stated requirement that cows have "access to pasture." The National Organic Standards Board, which advises the Agriculture Department, has pushed for more stringent requirements ever since federal organic regulations took effect in 2000.

U.S. sales of organic dairy products exploded from $725 million in 2000 to $3.61 billion in 2008, before falling 1 percent, to $3.57 billion, last year, the Organic Trade Association reported.

Much of that growth came from massive dairies in California , Oregon , Texas , and Colorado. Texas had nine organic dairies that in 2008 produced nearly twice the sales of the 225 organic dairies in Pennsylvania.

Are the huge dairies going to be able to comply with the new rules? After all, cows can only walk so far between the milking parlor and the pasture.

Sonja Tuitele, vice president of communications for Aurora Organic Dairy, which has 13,920 cows on four farms with 4,420 acres of pasture in Texas and Colorado, said the privately held supplier of private-label organic milk expected no operational changes. "What we're doing now in terms of irrigation is going to be sufficient," she said.

Small Northeastern farmers tend to harbor suspicions about their large Western competitors, but George Siemon, chief executive officer of Organic Valley, said grass-based operations can be big. "I've seen farms up to 3,000 cows that could pass the standard in a good way," he said. "It's all in the layout of the farm."

Ned MacArthur, owner of Natural Dairy Products Corp. in Chester County, which sells under the Natural By Nature brand, has long been particular about making sure his milk comes from grass-fed cows.

He said he was happy about the new rule: "It gives the consumer some assurance. I think organic milk was getting a black eye because of the big Western dairies that weren't really grazing."

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Growing organic

Do the benefits of organic farming outweigh the higher costs?

Stacey Stumpf | Editorial Writer for The Journal Gazette

Just five years ago there was one farmers market in Fort Wayne – the historic South Side Farmers Market on Warsaw Street. The opening of the East State Village Farmers Market today brings the count of farmers markets to at least six within the city limits and several more in nearby communities.

The increasing popularity of farmers markets is one indicator of the increasing interest residents have in buying more locally grown fruits and vegetables – organically grown crops are especially attractive.

"People are really interested in shopping at farmers markets. It's a lot less expensive … and you can have more confidence with what you are buying," said JoAnn Wall-Beer, a member of the East State Village Association and organizer of its market.

The East State Village Farmers Market is open from noon to 4 p.m. on Sundays at the plaza at the Tecumseh branch of the Allen County Public Library, 1411 E. State Blvd. Wall-Beer said the group specifically chose Sundays because it would not compete with other farmers markets and because it would give people something fun and interesting to do with their families after church.

Organic obsession

Increasing interest in buying organic fruits and vegetables is also playing out on the retail side at supermarkets.

"Customers are becoming, and have been for over 10 years, more interested in organic produce for all the right reasons," said Gregg Proctor, produce merchandiser for Kroger. "We continue to see growth in that area and have seen double-digit growth for over 15 years." In the last five years, sales of organic produce have increased 20 percent. And he said that in spite of the bad economy, Kroger has not seen any dip in organic food sales.

Proctor said Kroger has increased the variety of organic options available in stores, as well as the display space, advertising and signage devoted to organic produce, dairy, frozen and packaged foods. He notes some organic items, such as lettuce, are not always available throughout the year.

According to the Organic Trade Association's 2010 Organic Industry Survey, U.S. sales of organic food and beverages grew from $1 billion in 1990 to $24.8 billion in 2009. The sale of organic fruits and vegetables had the highest growth with an increase in 2009 of 11.4 percent over 2008 sales.

The growing conviction is organic fruits and vegetables are more nutritious and better for the environment. It doesn't matter how it's grown, a carrot is always going to be a much better snack than a Twinkie. But one theory is that organic plants – much like the human body – rely on antioxidants as part of a defense system, and the lack of chemical assistance in that process leads to a greater buildup of antioxidants.

A celebrated study from the University of California in Davis found organic tomatoes have almost double the concentrations of two flavonoids – healthy plant nutrients – than conventionally grown tomatoes. The 10-year study found organic tomatoes had 79 percent higher levels of the flavonoid quercetin and 97 percent higher levels of the flavonoid kaempferol. These nutrients are said to play a role in heart health.

The researchers were adamant that while the research strongly suggested organic is better, many factors – soil quality, water and seed variety – could affect the plants. The research is part of a long-term study that began in 1991 and is expected to continue for 100 years. More research is needed before scientists can conclusively rule that organic vegetables are substantially more nutritious than conventionally grown crops.

The case in favor of going organic is more evident when considering the benefits to the environment. The damage to soil and water quality from pollution caused by chemical pesticides and herbicides is obvious. Overuse of chemical fertilizers also causes environmental damage, including water contamination and algae blooms that kill aquatic life.

Certified organic

Frank Guglielmi, Meijer spokesman, said organic food has become so popular the store launched its own line of organics.

"The key is that it's USDA certified organic, that is the important distinction," Guglielmi said.

The buzzwords can become confusing. "Natural" is not the same as "organic," and not all veggies labeled organic are equal. The gold standard is certification from an organization with accreditation from the U.S. Department of Agriculture's National Organic Program.

Joseph Graber, whose more than 100-acre Harlan farm sits near the Ohio border, gets his organic certification from the Ohio Ecological Food and Farm Association. The Amish farmer pays an annual $650 fee, keeps detailed documentation about his farming practices and allows inspectors access to his property to qualify for certification. The process to be certified takes three years, and Graber has had his certification for the last four years.

Instead of applying herbicides to the 10 to 20 acres he is farming at any given time, he and his farmhands have to pull the weeds by hand. He also uses floating row covers – loosely woven fabric to covers the crop rows – and black plastic with holes cut for the plants to prevent weed growth.

Instead of spraying pesticides to keep bugs away, he has to use natural repellents, including sugar water or a chamomile mixture, to keep his plants healthy. And he uses natural fertilizer (manure) instead of chemicals to encourage his crops to grow.

"I know it's a lot more work, but I'd rather, I guess, build the soil rather than destroy the soil," Graber said. "I know that I'm selling something that's going to make someone healthier rather than make them sick."

Graber supplies produce to several local restaurants, the Three Rivers Food Co-op on Sherman Boulevard and the Health Food Shoppe on North Anthony (as well as my family – see the chart on Page 13A). He also sells his produce at local farmers markets, specifically the Salomon Farm Market on Dupont Road (open on Wednesdays) because it focuses on locally and organically grown items.

He said that there is more work for a smaller yield, but having an organic farm "gives you a chance to still have a family farm."

Cost concern

The major drawback to buying organic food is higher costs. Organic fruits and vegetables cost more because it takes more time and labor to grow organic crops.

Proctor said the cost of organics can also fluctuate wildly depending on supply. "It can easily be two or three times more expensive, and we can't retail at that level. With organics we have to be very careful so we don't price people out of the market. Organics are always more expensive, but sometimes it's nominal."

John Elliot, spokesman for Kroger, said, "Customers have the ability to affect price. If customer demand increases sales, the price goes down for us, and we share that with customers." And he said Kroger deliberately will "give up some of our margin to try to induce our customers" to buy organic.