Ask Professor Produce

I read somewhere that a number of organic companies are actually owned by big corporations now. Is this true? How widespread is this? And can you give me some examples? -Tim, Internet

The organic industry represents the fasting growing segment of U.S. agriculture, expanding at a red-hot 20% for eight years running, with no ceiling in sight. With that number in mind, it was only a matter of time before big players took an interest, and in the last five years, you're right, organic labels have piqued corporate interest.

From a basic financial point of view, this is just smart business. If you could put your money in a bank that gave you a 20% annual return and whose business practices were widely seen as squeaky clean, you'd open an account so fast your teller's fingers would blister counting the cash.

Furthermore, corporate involvement has in fact benefited organics and U.S.agriculture. From a shipping and distribution level, corporate interest expands the available organic market into regions and stores that had long resisted the seemingly crunchy, hippie world of organics. A wider market has meant that organic prices have become more competitive, more farmers have been compelled to convert farmland to organic acreage, far fewer pesticides have been used on our farmlands, and organic farmers have made more money. It's a revolution that wasn't really televised.

But if you were talking "'bout a real revolution" - well, it ain't organics, babe. Muir Glen, who cans the only tomatoes that the Professor will eat out of season, is owned by Cascadian Farm, which in turn is owned by General Mills. Celestial Seasonings, Westbrae (Little Bear, Bearitos, and Westsoy), Imagine/Rice Dream and Soy Dream, Garden of Eatin', and Arrowhead Mills are all owned by the giant Hain-Celestial Group - of which the gargantuan Heinz Corporation owns a 20% equity.

But what's the biggest problem with big business taking a big interest in organics? As Katherine DiMateo of the Organic Trade Association points out, "These buy-ups could turn out to be a disaster... If an organics division isn't meeting its profit goals, the corporate parent may decide to make up losses by paying its organic farmers less or cutting contracts" (Who Owns Organics?, RAFI-USA, 2003).

It should be noted, however, that not all organic consolidation has been corporate or bad for farmers. One of the great business success stories in the organic world has been Organic Valley, the retail brand of CROPP Cooperative, based in LaFarge, WI. Organic Valley sells meat, eggs, milk, butter, and cheese, and it's the only leading national brand owned and operated by organic farmers, according to RAFI-USA research. The co-op started in 1988 with seven farmers and today it cooperates with over 500 organic farms across the country with sales totaling over $125 million in 2002.

With this takeover happening in the organic industry, Wedge shoppers might be asking why co-ops continue to carry corporate-owned organic labels. To answer that, here's a little test you can take. Keeping in mind the above corporate acquisitions, decide for yourself what you would and wouldn't put in your shopping cart.

You're shopping for jelly. Do you buy: Cascadian Farms of Sedro-Woolley, WA, Organic Harvest Berry Fruit Spread, 10 oz, at $2.99? Native Harvest of White Earth Reservation, MN (non organic) Raspberry Preserves, 8 oz, at $5.89?

You're shopping for tortilla chips. Do you buy: Bearitos Yellow Chips (70% organic), Hain Celestial Group of Melville, NY, 16 oz, at $2.49 per bag? Yellow Organic Tortilla Chips (95% organic), Whole Grain Milling of Minneapolis, MN, at $3.19 per bag?

You're shopping for a half-gallon of milk. Do you buy: Cedar Summit, (in glass bottles with a $1.50 deposit: more money; less waste) from New Prague, MN at $2.89; non organic? Pride Organic of Sauk Center in cartons at $2.89? Organic Valley, which is co-op run, packed in cartons, from LaFarge, WI, at $3.05?

Obviously there are no correct answers here. The Professor offers you these consumer brain-teasers to point out what a wide range of concerns our departmental buyers must consider in determining what products to carry at the Wedge. It would be an easier world if the Wedge only carried what our buyers determined were "good" companies but it's far more complicated than that. The community served by the Wedge has quite a wide variety of needs and values - to some, cheaper is more important than being politically correct. To others, avoiding the corporate brand, regardless of its organic status, is vital, and then there's the local versus organic debate. Consequently, the Wedge doesn't boycott and tries to provide as much information to you as possible, so you can make intelligent shopping choices for your household.

To that end, if you want to see a handy graphic that shows the corporate consolidation of organics, check out: www.certifiedorganic.bc.ca/rcbtoa/services/corporate-ownership.html