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Food Manufacturers and Organic Industry Lobbyists Circle the Wagons

  • Food Manufacturers and Organic Industry Lobbyists Circle the Wagons
    Defend Organic Scofflaw in Court to Protect Corporate Takeover of Organics
    The Cornucopia Institute, November 19, 2009
    Straight to the Source

Two powerful lobby groups in the food industry, The Grocery Manufacturers of America and the Organic Trade Association, recently intervened as friends of the court in a federal consumer class-action lawsuit accusing the nation's largest supplier of private-label organic milk of consumer fraud. In what has been described as "the largest scandal in the history of the organic industry" USDA investigators, in 2007, found that Aurora Dairy had willfully violated federal organic standards. However, industry lobbyists are now concerned that convicting Aurora will set a dangerous legal precedent. Aurora bottles private-label organic milk for Wal-Mart, Costco, Target, Safeway and many other grocery chains.

In August 2007 Bush administration officials were widely criticized for overruling career staff at the USDA and instead of decertifying Aurora as staff had recommended, banning it from organic commerce, the corporate dairy was allowed to continue in business under a one-year probation. Now agribusiness lobbyists are concerned that citizens prevailing in court, alleging fraud, will set a precedent necessitating large corporations to incur added expenses to more carefully check the sources and credibility of their organic suppliers.

"Due diligence by food manufacturers and retailers is the heart and soul of what maintaining the integrity of the organic label is about," said Mark Kastel, Codirector of The Cornucopia Institute, the farm policy research group that initially exposed the corruption taking place at Aurora.

In an internal document, the Organic Trade Association told its membership that, "OTA is taking this action in order to protect consumers' access to organic products and the guarantee by organic farmers, producers and processors that their valid organic certificate fully demonstrates that their product is considered organic when marketed." Lobbyists from the Grocery Manufacturers also were concerned that if the consumers prevail in this legal matter it would become, according to a copy written article in Sustainable Food News, "prohibitively expensive to continue developing organic products."

"This type of rhetoric is just a stick in the eye to the ethical participants in this industry who make it a point, in their everyday course of business, to judiciously assure that their products meet not only the letter but the spirit of the organic law," added Kastel.

Just like Aurora Dairy, Wal-Mart and Target were both found to have misrepresented organic products in the marketplace and were the subject of separate USDA investigations.

"Yes, it does cost more money to legally and ethically participate in organic commerce, said Will Fantle, Research Director for Cornucopia. "One of the reasons that big-box retailers are able to undercut their competition on price is they refuse to hire, train and adequately compensate management and frontline employees who know anything about the organic law."


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