At first it may seem only right for Dean Foods Co., the nation’s largest organic dairy producer, to roll out a line of yogurts and milk marketed as “natural.” But Dean’s announcement last week alarmed advocates of organic food, who say the burgeoning market for less-expensive “natural” foods reaps billions from consumers while guaranteeing little or nothing in exchange.

Certified organic food products are regulated by the U.S. Department of Agriculture and are produced by farmers and manufacturers under a strict set of rules. But the agency defines the term “natural” only for meat and poultry. In the rest of the food industry, the meaning is largely up to the producer.

Adding to advocates’ concerns, a new study shows wide confusion among American consumers about products aimed at the green market. Many mistakenly believe that “natural” is a greener term than “organic.”

“They felt ‘organic’ was just a fancy way of saying ‘expensive,’ ” said Suzanne Shelton, president and chief executive of Shelton Group, which conducted the survey and specializes in marketing sustainability to mainstream consumers. “They think ‘natural’ is regulated by the government but that ‘organic’ isn’t, and of course it’s just the opposite.”

The U.S. natural food market grew 10% to $12.9 billion from 2007 to 2008, the Nutrition Business Journal said.

Some observers suspect that companies will watch Dean’s new venture to see if they can shed cumbersome, expensive organic standards.

“Our fear is that they are going to blur this line” between organic and natural, said Mark Kastel of the Cornucopia Institute, a nonprofit organic industry watchdog group. “The concern is they’ll help destroy organics or at least chip away a substantial part of it.”

Dean’s natural dairy line is being launched by its Horizon Organic brand and will be cheaper than organic options.

Sara Loveday, the brand’s communications manager, said Horizon had created its own definition of “natural.”   

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