Cornucopia: Nonprofit David Cuts Down Agribusiness Goliaths

An investigation by the USDA's National Organic Program has determined that Target Corporation wrongly used the image of a certified organic product when promoting the sale of a conventional product to consumers. The investigation was triggered by...

December 14, 2009 | Source: The Cornucopia Institute | by

CORNUCOPIA, WIS: An investigation by the USDA’s National Organic Program has determined that Target Corporation wrongly used the image of a certified organic product when promoting the sale of a conventional product to consumers. The investigation was triggered by a complaint filed by The Cornucopia Institute.

The violation at Target came after Dean Foods switched almost all their category-leading Silk soymilk from organic to conventional soybeans earlier this year. The specific problem involved Target using an image of a Silk organic product, in advertising flyers, when the retailer was really selling Silk’s reformulated “natural” version (not organic, but made with conventional soybeans). Target made a commitment to the USDA to review their procedures to “prevent future errors of this nature.”

Dean Foods stealthily switched its core Silk product line to cheaper conventional soybeans, while, until recently, retaining the same packaging appearance. Now the giant dairy processor’s WhiteWave division has been found itself to also be misrepresenting the product as organic on one of their own websites. A new legal complaint has been filed in an attempt to protect consumers from what Cornucopia calls, “fraudulent misrepresentation.”

“It should not take the judicious oversight of an industry watchdog to cause these giant corporations to simply comply with the law,” said Mark Kastel, Cornucopia’s Senior Farm Policy Analyst. “Target and Dean are trying to do organics on the cheap and have not invested in the kind of management expertise necessary to prevent problems of this nature from occurring,” added Kastel. “And after widespread media condemnation, it’s hard to believe that Dean Foods hasn’t even cleaned up its own websites.”

Since the NOP investigation, and Target’s pledge to review their practices, unlike Dean Foods, Cornucopia has not observed additional problems with the retailer’s advertising.

The meteoric rise in consumer interest in healthy, environmentally sound and humane farming practices has catapulted organics into a $24 billion industry. Along the way, major agribusinesses, like General Mills, Dean Foods and Kraft have gobbled up many pioneering companies that helped build the industry through a series of acquisitions. Today, most processed organic food is produced and controlled by the same type of companies that bring us International Delight imitation coffee creamer, Cheetos, Ding Dongs and Cap’n Crunch.

No longer controlled by industry visionaries, corporate managers now seek to squeeze extra profits out by sometimes switching established organic brands to “natural” labeling, using cheaper conventionally grown and processed ingredients.

That’s a far cry from when the organic food and farming movement first started enjoying widespread commercial success in the 1980s. In its inception, the industry was dominated by a number of family businesses, entrepreneurial enterprises and farmer-owned cooperatives, where building a profitable brand was most often married with the owner’s values.