The Nutrition Business Journal estimates that sales of organic fruits and vegetables alone could reach $8.5 billion by 2010, a sales increase of over 300% from 2000. That’s why everyone in the food industry must pay attention to this segment of the industry, Ron Rash, president of Wizard’s Cauldron, Inc., told NAFFS Convention attendees.

“I’ve been tracking the market since the early 1990s and it’s been growing at double digits the whole time,” Rash said, adding that with organic food sales representing only 3 percent of total food sales, opportunities for expanding the organic market abound. In 2005, he said, demand for organic dairy products outgrew supplies. Sales of non-food organic products, including personal care products, nutritional supplements, fiber products, household cleaners, and pet foods, grew 32.5 percent in 2005.

“I applaud WalMart’s efforts,” he said of the retailer introducing many to organics. “I hope they and others don’t denigrate the objective.” One reason he thinks they won’t is that consumers will gravitate toward organics because of perceived and real health benefits.

“It’s been noted by the Northeast Organic Farm Association and other organizations that organic products reduce public health risks to farm workers and consumers by minimizing their exposure to toxic and persistent chemicals on the farm and in food, as well as the soil in which they work and play, the air they breathe and the water they drink,” Rash said. “Children are especially vulnerable to pesticides and putting organic food and fiber products into the marketplace gives parents the option of choosing safer products produced without the use of these toxins.”

Rash added that “not only does organic production help reduce public health risks, mounting evidence shows that food grown organically has health benefits: greater levels of nutrients, such as Vitamin C, iron, magnesium, and phosphorus, and less exposure to nitrates and pesticide residues, in organically grown fruits, vegetables, and grains when compared to conventionally grown.”

He added that there are social benefits as well. “By developing your organic processing operation,” Rash said, “you’re giving consumers the choice to buy organic food, personal care products, clothing and other household items. Consumers can protect themselves and their families from the risks of exposure to persistent pesticides. You’re also providing markets for farmers working to protect the environment.

Certification
At its simplest, getting certified means that you've gotten confirmation from an approved third party, a certifying agency, that your operation meets all of the production, record-keeping, handling, storage and labeling requirements demanded by the laws of the country where you will produce or sell your product, Rash said. Your facility will be inspected by the third-party certifier. You'll have new types of recordkeeping to deal with. There's a set of rules established that you must follow.

“At its most basic level, organic certification is really very simple,” he said. “It's all about documenting and insuring that the process used in producing and handling organic products meets both the spirit and letter of the organic rule.” A variety of factors should play into a firm’s decision about whom to choose as a certifier. Rash said that among the questions to be addressed:

What certifiers are being used by organic processors and handlers in your area--and are they happy with the service?
Are you looking for a certifier with experience in processing certification?
Do you need international certification?
Do you want a certifier that provides a range of educational services?
Is it important to you to use a certifier based in your own state? And, perhaps most importantly, what kind of service do they provide?
Does the web site provide a clear picture of their fees and services?

He said the fees vary by certifier and each certifier establishes its fees after reviewing the application.

Regulatory Issues
Use of the word organic to describe farm products, Rash said, is regulated in the United States, thanks to enabling legislation passed by Congress in 1990 and the National Organic Program regulations, which were implemented in October 2002. Following the establishment of several voluntary and state standards for organic production, the stage was set for U.S. National Organic Standards and Congress adopted the Organic Foods Production Act (OFPA) in 1990 as part of the 1990 Farm Bill. This action was followed by over a decade of public input and discussion, which resulted in a National Organic Program final rule published by the USDA in December 2000 and implemented in October 2002. This rule was, at the time, the most commented upon rule in USDA history.

Organic production is practiced worldwide and products sold as organic in the United States must meet or exceed the U.S. regulations for organic production no matter where those products are grown and processed, Rash said.
“Fortunately, the regulations were set up to evolve as the industry grows,” Rash said. “For example, there are sunset provisions to reexamine materials allowed and prohibited in organic production, so that as more environmentally sound materials become available, the use of less environmentally sound materials can be phased out.” He suggested the following website link as a resource: http://www.ams.usda.gov/nop/indexIE.htm.

Rash said anyone considering production or marketing of organic products should become familiar with these terms:
• USDA (United States Department of Agriculture) … administers the organic program.
• NOP (National Organic Program) … established by the USDA for the purpose of regulating organic products and markets.
• NOSB (National Organic Standards Board) … The Organic Foods Production Act of 1990, part of the 1990 Farm Bill, authorized the Secretary of Agriculture to appoint a 15-member National Organic Standards Board. The board's main mission is to assist the Secretary in developing standards for substances to be used in organic production. The NOSB also advises the Secretary on other aspects of implementing the national organic program. The first NOSB was appointed by then Secretary Edward Madigan in January 1992. Members of the initial board served staggered terms of 3, 4, or 5 years. All subsequent board appointees serve 5-year terms. Recommendations made by the NOSB are not official policy until they are approved and adopted by USDA.
• Third Party Certifiers … private companies authorized by the USDA to authenticate and certify manufacturing plants, products, and labels to the specifics of the NOP.
• Non-GMO … non-genetically modified organism, or a source seed that has not been genetically altered. http://www.non-gmoreport.com/
• Harvey lawsuit … created substantial changes to the original program …
much stricter interpretation of ingredients allowed, all must be listed.
http://www.ota.com/LawsuitChronology.html
• 100 percent organic, 95 percent organic, Made with Organic Ingredients . . . the various classifications of organic standards.
• USDA Symbol . . . allowed only on 100-percent and 95 percent organic products.
• National List Information: The Organic Foods Production Act of 1990 requires the Secretary of Agriculture to establish a National List of Allowed and Prohibited Substances which identifies synthetic substances that may be used, and the non-synthetic substances that cannot be used in organic production and handling operations. http://www.ams.usda.gov/nop/NationalList/ListHome.html