" I heard it through the AgLine"

July 17, 2009

 

 

·        Organic vs. natural a source of food confusion

·        Apple moths trigger quarantine in California

·        Syngenta launches Operation Pollination in EU

·        Crops for chemicals would give growers liquidity

·        Space shuttle carries 4-H flag to new heights

 

 

Organic vs. natural a source of food confusion

 

Monica Eng

Chicago Tribune

 

At first it may seem only right for Dean Foods, 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 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 "natural" is a greener term than "organic."

 

"They felt organic was just a fancy way of saying expensive," said Suzanne Shelton, president and CEO of the 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 by 10 percent to $12.9 billion from 2007 to 2008, according to the Nutrition Business Journal. And in this tough economy, some observers suspect companies will be watching Dean's new venture to see if they can shed cumbersome and 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 non-profit organic industry watchdog group. "The concern is they'll help destroy organics or least chip away a substantial part of it."

 

Dean's natural dairy line is being launched by its popular Horizon Organic brand and will be cheaper than organic options. Sara Loveday, the brand's communications manager, said Horizon has created its own definition for "natural."

 

"To us, it means it's produced without added hormones, artificial sweeteners, artificial colors, flavors, preservatives or high fructose corn syrup," Loveday said.

 

That's a good start, said Kastel, senior farm policy analyst for Cornucopia.

 

"But Dean Foods will not be able to [say] the products are produced without pesticides, herbicides, antibiotics and other drugs or genetically modified feed crops, or that the cows are required to graze in pastures rather than being confined to factory farm feedlots," he said. "These are all factors that truly differentiate organic production from natural/conventional agricultural and livestock production."

 

The new products will hit shelves this month with Little Blends, 4-ounce natural yogurts flavored with fruits and vegetables and aimed at toddlers. A second product, 6-ounce boxes of vanilla and chocolate milk called Milk Breakers, will be test-marketed next month in Florida.

 

Loveday said the new products will feature Horizon Organic's familiar cow, which has advocates worried about consumer confusion.

 

"The move feels sneaky," said Dawn Brighid, spokeswoman for Sustainable Table, a non-profit online resource. "The average mom won't know about the change, and most people are still unclear about the difference between 'natural' and 'organic.' With milk prices as high as they are, people will be happy to see a lower price point, but I'm afraid they won't understand what they are getting."

 

Marion Nestle, nutrition professor at New York University and author of "What to Eat," said the new, lower-cost products will undercut Horizon's organic lines.

 

But Loveday contends they will help support the operation through a market glut of organic milk. "The more profitable the overall brand, the better," said Loveday. "We work with about 485 family farmers and we are dedicated to organic, but innovation is one way to grow your business as a whole and continue to support those farmers."

 

When the "natural" label is applied to more processed foods, the picture grows even more complicated. According to market research firm Mintel International, "all natural" was the second-most common claim on food products launched in 2008.But with few regulations, the term is pliable enough that many brands apply it to products with ingredients not available to the average home cook.

 

For Bruce Silverglade, director of legal affairs for the Center for Science in the Public Interest, a good standard for natural ingredients would be "minimally processed," a stipulation the USDA uses for natural meat and poultry.

 

"If you have to have a lab in your own kitchen to create the substance, then it should not be considered a minimally processed ingredient," he said.

 

By this measure, Ben & Jerry's Chubby Hubby "all natural" ice cream containing partially hydrogenated soybean oil, soya lecithin and cocoa processed with alkali would not qualify. Neither would a Kashi "all natural" mushroom trio spinach pizza whose ingredient list includes autolyzed yeast extract, xantham gum and gum arabic. Gorton's lemon pepper grilled fillets contain something called tocopherol as well as guar gum and fructose. The argument for a "natural" label on the gums, which are used as stabilizers or emulsifiers in processed foods, is that they are derived from natural substances.

 

"Don't be fooled by products labeled 'natural,' " said Marcia Schurer, author of "Fit Delicious" and president of Culinary Connections, a consulting and training firm. "Consumers should ... look for ingredients that are as close to their natural state as possible."

 

Kastel, who also criticizes Dean for recently switching its Silk soy milk from organic to conventional, notes that the Cornucopia Institute is a stakeholder in the company, having received a donation of Dean Foods stock at its founding.

 

"We obviously have an investment in Dean and we have nothing against profits," he said. "It just makes me mad when I see a company that attempts to profiteer at the expense of these hardworking farmers who have built the organic industry. I fear they are going to blur the lines between natural and organic and I think someone needs to educate the public."

 

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Apple moths trigger quarantine in California

 

(fresnobee.com) – Two light brown apple moths were found recently in San Joaquin County, causing state and federal officials to call for a quarantine in the Manteca area.

 

It's the closest region to the central San Joaquin Valley that the highly destructive pest has been found. The moth has been discovered in the Bay Area and Central Coast and is a concern to Valley farmers because more than 250 crop varieties, including citrus, grapes and tree fruit, are susceptible to its attack.

 

"This is absolutely a potential problem for us," said Barry Bedwell, president of the Fresno-based Grape and Tree Fruit League.

 

Steve Lyle, spokesman for the California Department of Food and Agriculture, said the second moth was found in central Manteca last week, triggering a quarantine of the area.

 

The exact size of the quarantine should be determined soon, Lyle said.

 

He said no decisions have been made about possible treatment plans. The U.S. Department of Agriculture is working on a sterile moth program that it hopes to release this year.

 

Farmers worry about pest infestations because of the potential they have for ruining crops and the challenge quarantines pose in shipping fresh produce.

 

Under quarantine conditions, produce can't be moved within or out of the area unless certified as being free of the moth.

 

That makes it tough on exporters, Bedwell said: "You could have a situation where a country could say we are not going to allow any product, or make the treatment of the pest so onerous that it makes shipping the fruit impractical."

 

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Syngenta launches Operation Pollination across EU

 

(Wire Services) – Syngenta today announced the roll-out of a 5-year EUR 1 million program to provide essential habitat and food sources for pollinating insects across Europe. ‘Operation Pollinator’ aims to boost the numbers of native pollinating insects across seven European countries: Spain, France, Germany, Italy, the United Kingdom, Portugal and Hungary.

 

Operation Pollinator will enable growers to cultivate wild flora that are favored by pollinating insects on the edges or near fields of commercial farms. Growers will be provided with seed mixes, along with innovative pesticide use practices and agronomic advice designed to benefit pollinators. The program is based on independent scientific research and progress will be assessed annually by an independent scientific auditor.

 

“The number of pollinating insects has declined significantly across Europe in recent years because of loss of feeding sites and breeding areas,” said Jon Parr, Head of Crop Protection EAME at Syngenta. “Our aim is to help reverse this trend by creating an additional 10,000 hectares of dedicated habitat for pollinators. This will show that environmental sustainability and modern farming can coexist, which is critical for doubling global food production by 2050.”

 

Operation Pollinator is based on the success of Operation Bumblebee in the United Kingdom. Within three years, this Syngenta project increased bee populations up to 600% and contributed to the regeneration of rare species such as Bombus ruderatus, previously on the verge of extinction[1]. Butterfly population rose 12-fold and there was a 10-fold increase for other pollinating insects.

 

Pollinating insects are crucial for many natural habitats and the production of a majority of food crops. More than 80% of European crop types depend directly on them, including many fruit and vegetables. The value of pollinating insects to the European economy is put at EUR 5 billion annually, whilst it is estimated that they are worth EUR 150 billion to global eco-systems every year[2].

 

Syngenta is one of the world's leading companies with more than 24,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life. Through world-class science, global reach and commitment to our customers we help to increase crop productivity, protect the environment and improve health and quality of life. For more information about us please go to www.syngenta.com or www.growmorefromless.com.

 

1. The Buzz Project (2001-2006); managed by the Farmed Environment Company, monitoring by the Centre for Ecology and Hydrology (CEH), sponsored by Syngenta.

 

2. European crop types dependent on pollinators: Ref: Williams, I.H. (1994) The dependence of crop production within the European Union on pollination by honeybees. Agricultural Zoology Reviews 6: 229-257. Value of native bees to European farmers: Ref: Borneck, R. and Merle, B. (1989) Essaie d’une evaluation de l’incidence économique de l’abeille pollinisatrice dans l’agriculture européenne. Apicata 24: 33-38. Value of pollinators globally: Gallai, N., Salles, J.M., Settele, J. and Vaissiere, B.E. (2008) Economic valuation of the vulnerability of world agriculture confronted with pollinator decline. Ecological Economy.

 

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Crops for chemicals would give growers liquidity

 

(Bloomberg) -- Siberian farmer Alexei Maslov has too much grain and not enough cash for next year’s weed-killer. The solution to both concerns may be good old-fashioned barter.

 

“Half of the silos in the region are still filled with last year’s grain, so there is barely room for the new crop,” says the 56-year-old farmer in the Novosibirsk region. “It would solve part of the problem if some of this grain already had an owner.”

 

Syngenta AG, the world’s biggest maker of agricultural chemicals, has a potential solution that takes a page from the past. The Swiss company and Germany’s Bayer AG and BASF SE are increasingly turning to barter, accepting crops instead of cash. They’ve used the tactic in South America to guard against payment risk from credit-starved farmers, and they’re considering the same approach in eastern Europe.

 

“This is a very interesting way for all involved to minimize risk and to still do business,” said Medard Schoenmaeckers, the spokesman for Basel-based Syngenta. “This works well in Latin America. We are now looking into whether we can also apply this to other emerging markets where there is growth but not always the necessary liquidity.”

 

BASF, the world’s biggest chemical company, is expanding the amount of cashless trades it does in Brazil, and Bayer’s agriculture unit is adding salespeople there trained specifically in barter. Syngenta uses barter for 35 percent of trades in Brazil, the No. 1 exporter of sugar and coffee, and No. 2 in soybeans. Bayer CropScience uses it for 10 percent.

 

Hungry Farmers

 

“It would be great for us if we could get chemicals in exchange for grain,” Siberian farmer Maslov said in a July 2 phone interview. “Farmers are hungry for money in the spring, and this way contracts would be signed and chemicals delivered on time.”

 

Bartering in countries like Russia and Ukraine would be interesting, although it must be carefully assessed as their trading systems are less developed, Schoenmaeckers said. Syngenta doesn’t store the grain itself, he said. “We agree on a specific part of their harvest as payment and sell that forward on the futures market.”

 

Introducing bartering in eastern Europe would give the Swiss company the “first-mover advantage,” that it had in South America, said London-based Cazenove analyst Karan Khemani, who has an “outperform” rating on the company. “It’s becoming a competitive advantage, and Syngenta is winning market share through this.”

 

Seeds for Soybeans

 

Local companies in Russia already use barter, though on a smaller scale than those in Brazil and Argentina. Bom Futuro, Brazil’s second-biggest seed company, sells 40 percent of its soybean seeds in exchange for soybeans, said Francisco Jose Soares Neto, the company’s sales manager. It charges about 35 percent more on barter deals than on cash sales, reflecting the risks of price fluctuations.

 

Black Earth Farming Ltd., a company traded on the Stockholm exchange that controls 317,000 hectares of land in Russia and buys from Syngenta, would be interested in barter deals with producers of chemicals and seeds, Chief Financial Officer Michael Shneyderman said in an interview.

 

“These would be guaranteed shipments at fixed prices,” giving producers extra liquidity and new opportunities, he said. Forward trading is nascent in Russia, but will pick up if there is demand, he said. So far neither Syngenta nor other chemicals makers have approached Black Earth, which forecasts grain and oilseeds output of 688,445 tons this year.

 

Wheat Exporter

 

Following widespread use of bartering in the years just before and after the Soviet Union’s collapse, the practice faded as free-market economic policies took hold. Today, Russia is the second-largest exporter of wheat, Ukraine ranks fifth and Kazakhstan sixth. Intensive farming methods are used on only 10 percent of land planted with cereals in Russia, creating an opportunity to double yields with modern technologies, John Atkin, chief operating officer of Syngenta’s crop-protection unit, said in an interview last month.

 

Syngenta’s business in Russia tripled in the past five years, Atkin said. The Swiss company has 20 percent of the global crop protection market, followed by Leverkusen, Germany- based Bayer with 19.7 percent, according to Cazenove’s Khemani. The global market is worth $46 billion a year, he said.

 

Difficulty in getting credit among farmers helps kindle interest in barter. South American farmers are struggling to gain access to financing after Bunge Ltd. and other companies that buy and process their crops cut lending. The Brazilian government will increase farm lending as much as 38 percent for the next crop year after the global financial crisis reduced access to credit, Agriculture Minister Reinhold Stephanes said in May.

 

Brazilian Farmers

 

“Brazilian farmers are especially exposed to currency fluctuations because they export such a large share of their crops,” said Elise Kissling, a spokeswoman for Ludwigshafen, Germany-based BASF. “They don’t have the luxury of a strong rural banking system.”

 

In 2006, Brazilian farmers and their suppliers were hit hard by a combination of bad weather, decreasing commodity prices and a strong appreciation of the real. That’s when BASF decided to intensify its bartering efforts, according to Kissling. “The good work of our Brazilian team has got other regions, for example eastern Europe, evaluating introducing such tools,” she said.

 

K+S, Dow, DuPont

 

Some companies say they have no need for barter, while others are still considering it or have used it on a limited scale.

 

K+S AG, Europe’s largest producer of potash used in fertilizers, doesn’t barter, as it sells to trade organizations and not directly to farmers, said spokesman Ulrich Goebel.

 

Wilmington, Delaware-based DuPont Co., the world’s second- biggest seed producer, “does do some bartering in South America, but it is a small portion of our overall business,” spokesman Pat Arthur said. He declined to be more specific.

 

Dow AgroSciences, a unit of Midland, Michigan-based Dow Chemical Co., said it hasn’t been engaged in bartering. “We cannot elaborate, but we are considering our options,” said spokesman Robyn Heine.

 

Companies with a large seeds business may face less pressure to offer barter as an option to their customers, said Martin Schreiber, an analyst at Zuercher Kantonalbank. Farmers can’t postpone their seed purchases, while they can put off buying crop protection, he said.

 

Russian farmers started skimping on crop protection after the financial crisis limited access to lending, and are now buying only the cheapest chemicals, Maslov said.

 

“The weeds are up and doing well,” Maslov said. “If these farmers were getting chemicals in exchange for their crop, they’d be able to afford better herbicides.”

 

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Space shuttle carries 4-H flag to new heights

 

(USDA) – WASHINGTON, D.C. -- The National 4-H flag was carried into space aboard the Space Shuttle Endeavour yesterday as part of the STS-127 mission. The flag, featuring the familiar 4-H clover, was originally scheduled to head into space earlier this year, but was delayed a record five times before finally lifting off this week.

 

"The inclusion of the 4-H flag on this mission reflects the commitment 4-H has to building young leaders in science, engineering and technology," said Agriculture Secretary Tom Vilsack. "As the global economy expands, these leaders will strengthen the United States' global competitiveness and leadership in these fields."

 

4-H promotes positive youth development, facilitates learning and engages youth in the work of the land-grant universities and USDA to enhance their quality of life. Nearly 7 million youth, ages 5-19, participate in 4-H youth development experiences in all 50 states, territories and military installations worldwide.

 

Azeem Ahmed, 17, who is an avid space enthusiast and 4-H member from Alabama and President of the Alabama 4-H Council, made the original request to NASA to have the flag flown with a future space shuttle mission.

 

"4-H is more than green and white - it is a collage," Ahmed said. "It is agriculture and it's also healthy living, leadership and citizenship and science, engineering and technology. Science, engineering and technology is one of the missions of 4-H, and by flying a 4-H flag into space, I hope we shine a new light on 4-H."

 

Ahmed has been a 4-H member for seven years. He has participated in a variety of leadership and science, engineer and technology programs on the state and national level and wants people to see 4-H as he and thousands of other youth do.

 

The 4-H Youth Development Program began at the start of the 20th century to help rural youth gain technical and leadership skills. More than 100 years later, the organization continues to promote positive youth development in the areas of citizenship; healthy living and science; engineering; and technology. According to a two-year study in New York, young people who participate in 4-H clubs do better in school; are more motivated to help others; develop skills in leadership, public speaking, self-esteem, communication and planning; and make lasting friendships.

 

National 4-H Headquarters, along with its private partner National 4-H Council, has set the goal of preparing one million new young people to excel in science, engineering and technology (SET) by 2013. National 4-H Headquarters seeks to promote positive youth development, facilitate learning and engage youth in the work of the land-grant universities and USDA to enhance their quality of life.

 

National 4-H Headquarters is a unit within USDA's Cooperative State Research, Education, and Extension Service. Through federal funding and leadership for research, education and extension programs, CSREES focuses on investing in science and solving critical issues impacting people's daily lives and the nation's future.

 

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