Once seen as the province of small farmers and independent businesses, the organic food industry is being increasingly controlled by major retailers and grocery chains, according to a report by the Economic Research Service of the U.S. Department of Agriculture.
The recently published report claims that nearly half of all organic food purchased in 2008 came from regular retailers such as supermarkets and big-box stores. Just a decade ago, specialized “natural” foods stores and co-ops were the chief organics source.
Supermarket chains such as Kroger and Safeway have launched organic food lines. Wal-Mart has made large-scale moves into organic retail in the past several years.
This shift worries some organic activists. The Cornucopia Institute, a watchdog that focuses on organic farming and regulation, accused Wal-Mart of committing fraud in January of 2007 after testing organic food purchased at stores across the United States.
The group claimed to have found dozens of violations at each location. While Wal-Mart attributed the violations to misplaced signs, the Wisconsin Department of Agriculture, Trade and Consumer Protection reprimanded the company in May 2007.
“Such practices place ethical retailers, their suppliers, and organic farmers at a competitive disadvantage,” Cornucopia’s Co-Director Mark Kastel said in a statement after the reprimand was issued.
According to the report, one of the major issues for the organic food industry is a lack of supply to meet consumers’ demand for products. The report claims that 4 million acres of land were used for organic tilling in 2005, a leap from 1.3 million in 1997. But the report also found evidence of periodic shortages traced to too few farmers converting to organic production.
Shaky economics are one major reason for the failure to switch. Contributing factors are reduced crop yields during the transition and farmers' concerns about limited profits. Of those who took the plunge, 51 percent formerly farmed by conventional means.
After developing an allergy to pesticides, Tim Kimpel of Roseville, Ohio started farming organic foods. He told the Zanesville Times-Recorder there were health ramifications of going organic.
“Just because it’s organic doesn’t mean it’s superior, but most farmers are trying to raise food that’s more nutritious and safer,” Kimpel said.
Sources:
Zanesville Times-Recorder. “Farmers shun use of chemicals, go organic,” http://www.zanesvilletimesrecorder.com/article/20091006/NEWS01/910060301/1002/Farmers-go-organic; 6 Oct. 2009
USDA. “Marketing U.S. organic foods,” http://www.ers.usda.gov/Publications/EIB58/EIB58.pdf; accessed 6 Oct. 2009
Sustainable Table. “Difference between organic and sustainable,” http://www.sustainabletable.org/issues/organic/#fn14; accessed 6 Oct. 2009
Howard, Philip H; PhD. “Organic Industry Structure,” https://www.msu.edu/~howardp/organicindustry.html; accessed 6 Oct. 2009
Lancaster Farming. “Regulators warn Wal-Mart about misleading organic consumers,” http://www.lancasterfarming.com/node/565; 10 May 2007
