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"USDA organic" label moves industry into mainstream

By Jake Batsell
Seattle Times business reporter

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After years of confusion about what it means when food is labeled organic, the U.S. Department of Agriculture is about to roll out a new seal designed to bring clarity to a fast-growing industry.

Beginning Oct. 21, foods certified as at least 95 percent organic — that is, produced without most pesticides, toxic fertilizers, growth hormones and antibiotics — can carry an official "USDA organic" seal.

Organic grocers, farmers and shoppers around the Puget Sound area say the federal government's stamp of approval is another step toward mainstream acceptance for the industry. Organic food sales are growing by about 20 percent a year and are expected to surpass $11 billion this year in the United States.

What is 'organic'? · Look for the word "organic" and a small sticker version of the USDA organic seal on vegetables or pieces of fruit or on the sign above the organic produce display. The word "organic" and the seal may also appear on packages of meat, cartons of milk or eggs, cheese and other single-ingredient foods. Use of the seal is voluntary. · Under the new rules, food will be labeled in one of four categories: Food that is 100 percent organic may carry the new "USDA organic" label and say "100% organic." Food that is at least 95 percent organic may carry the new seal. Food that is at least 70 percent organic will list the organic ingredients on the front of the package. If a product is less than 70 percent organic, the organic ingredients may be listed on the side of the package but cannot say "organic" on the front. · Organic food is produced without using most conventional pesticides, petroleum- or sewage-sludge-based fertilizers, bioengineering or ionizing radiation. Organic meat, poultry, eggs and dairy products come from animals that are given no antibiotics or growth hormones. Before a product can be labeled "organic," an inspector visits the farm where the food is produced to make sure the farm meets USDA organic standards.

Still, the seal may not have much of an immediate impact on sales in Washington state, which has had its own certification program for 14 years.

And since the new rules apply only to food produced on or after Oct. 21, it may be several months before the seal becomes commonplace in grocery aisles, particularly in the case of packaged foods.

"The market is coming our way, and this will help move it along a little faster," said Trudy Bialic, spokeswoman for PCC Natural Markets. "But I don't think consumers should expect to see a dramatic change on the shelves overnight."

The national standards replace what had been a mishmash of certification systems run by individual states and private groups. The seal will act as a safeguard against creatively worded packages that identify a product as organic when only a few ingredients are.

Under the new rules, a product can bear the USDA organic seal if at least 95 percent of its ingredients are certified organic. Foods that are 70 to 95 percent organic can't carry the seal but can be billed on the front of the package as "made with organic ingredients." Products less than 70 percent organic can list certified ingredients on the side label.

Tina Roberts, director of sales and marketing for Larry's Markets, said the new rules will help because under the current system, "some consumers feel cheated for not feeling they can make an educated decision. This will help them make that educated decision."

Fine of violation Selling or labeling products "organic" when they are not could result in a $10,000 fine for each violation. Projected annual U.S. sales of organic foods: $11 billion in 2002; $20 billion in 2005. Washington state has 560 certified organic farmers this year, up from 297 in 1997. For more detailed information on the USDA organic standards, visit our Web site at www.ams.usda.gov/nop, call the National Organic Program at 202-720-3252, or write USDA-AMS-TM-NOP, Room 4008 S. Building, Ag Stop 0268, 1400 and Independence Avenue, SW, Washington, D.C. 20250.

The USDA's standards are similar to those already required by the state's Organic Food Program, which was created in 1988. Miles McEvoy, manager of Washington's organic program, said it will probably take about a year for all labels to reflect the new national criteria.

While most in the industry seem to welcome the idea of a national standard, saying it will give organic food more credibility, the new rules have irked some smaller growers. Some small-scale farmers say lowering the bar to 95 percent for the "USDA Organic" seal will encourage bigger farms to aspire to only the bare minimum.

The USDA system also calls for more extensive documentation, which some smaller growers say is cumbersome. And new rules about how and when compost can be used for organic produce have forced some small farmers to alter the timing of their harvests.

"It really kind of changed our growing habits, and that's putting more pressure on the small grower," said Andrew Stout, co-owner of the Full Circle Farm in Carnation, an 80-acre operation that grows fruits, vegetables and herbs.

Consumers, meanwhile, still harbor reservations about organic foods that go beyond the way they are labeled. Organic products are generally pricier than standard fare, and no research has shown that they are demonstrably healthier than conventionally grown foods.

"I think for a lot of people who don't buy organic, it isn't because of the labeling — it's because of the price or because they think it doesn't make much of a (health) difference," organic shopper Kristin Storey of Phinney Ridge said last week at the Green Lake PCC store.

Storey said the new label won't have much of an impact on her shopping habits — "if it's got an organic label on it, I trust that it's gone through some procedure or another," she said.

Still, Storey is glad the federal government is paying attention to organic food.

"I feel good that the United States as a whole is taking some action, finally," she said.

Jake Batsell: 206-464-2718 or jbatsell@seattletimes.com.

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