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Vancouver Sun, Page D04, 17-Apr-2006

Organics industry goes mainstream

By Carly Weeks

 

OTTAWA - It's a growing industry whose largest backers include Coca-Cola,

Wal-Mart and a subsidiary of the company that owns Phillip Morris Companies

Inc., one of the world's largest cigarette makers.

 

Organic and natural food may seem an unlikely venture for companies whose

products have been accused of contributing to obesity, cancer-related deaths and

the destruction of independent businesses, but large corporations eager to cash

in on an exploding market for healthy products are swiftly taking over the

organic industry in Canada.

 

Some say the entry of organic food, ranging from apples to milk to hamburgers,

into the mainstream retail market means the industry is finally getting the

recognition it deserves and is becoming accessible to more segments of the

population. Others are concerned that corporate empires will wipe out small,

independent farms, rely heavily on imported food from countries that may

compromise certification standards and rapidly erode the principles upon which

organic food production was built.

 

" What's important to keep in mind is that these big corporations are getting

into organics not because they have doubts about their prior business practices

or doubts about chemical industrial agriculture, " said Ronnie Cummins, national

director of the United States-based Organic Consumers Association. " They're

getting in because they want to make a lot of money, they want to make it fast. "

 

He said the companies could care less about " family farmers making the

transition to organic farms. "

 

Despite high prices (a recent analysis found organic produce in Ontario cost 40

per cent more in retail stores than conventionally grown food), Canada's organic

industry is growing by 20 per cent annually, according to Agriculture Canada. In

2003, the country's organic retail market was worth $800 million to $1.3

billion. Projections made in 2003 also indicated that retail sales could grow to

$3.1 billion in 2005.

 

Canada is also involved in the lucrative organic export market, exporting about

$63 million worth of products in 2003, according to Agriculture Canada.

 

Organic retail sales have come to occupy a small niche in the overall Canadian

food market in recent years. People looking for an alternative to traditionally

grown food could find anything from organically produced vegetables to meat to

even toothpaste.

 

Small companies that specialized in organic and natural food products sprang up

and gave health-conscious shoppers the opportunity to purchase goods that were

guaranteed to be chemical- and pesticide-free. Consumers usually had to pay

significantly more for these products because of the elevated costs of the

complex organic growing process, but a segment of the population concerned about

the effects of traditional products were willing to pay that premium.

 

Recently, the niche began to expand -- greatly. Many Canadians are now heavily

focused on healthy lifestyles, with increasing numbers of people rejecting fast

food and other nutritionally void items. Companies that have watched sales of

packaged foods plummet as a result are anxious to move into the booming natural

food craze, which has opened the door for organic food to enter the mainstream

market.

 

" It's increased tremendously in the last few years in particular, " said Ted

Thorpe, who runs an organic farm north of Hamilton, Ont.

 

For instance, Wal-Mart Stores Inc. announced last month its intention to become

the leading mass provider of organic food. The company is in the process of

doubling its selection of organic products, said spokeswoman Karen Burk.

 

Wal-Mart has carried a small array of organic products in the last few years,

but now recognizes the expanding market and huge demand for organic goods, Burk

said.

 

" We're seeing that customers want to come in and they're very interested in a

large variety of organic selections, " she said.

 

In March, giant Colgate-Palmolive Co. bought control of Tom's of Maine, an

independent U.S.-based business that specializes in natural toothpaste and other

personal care products.

 

In 2004, Kraft Foods, synonymous with processed cheese and sugary drinks, such

as Kool-Aid and Tang, joined the growing list of multinationals diving into the

organic market when it bought Back to Nature, a small natural cereals maker.

Kraft Foods is a subsidiary of Altria Group, which also owns Phillip Morris, one

of the biggest cigarette makers in the world, as well as one of the world's

largest brewers.

 

Soft drink giant Coca-Cola, which has come under fire from physicians and

nutritionists for its sugar-laden beverages, bought out Odwalla Inc., which

produces premium juices and nutrition bars. While not 100 per cent organic, the

company boasts a commitment to holistic, environmentally sound practices and

uses ingredients that don't contain genetically modified substances.

 

Loblaw Companies Ltd. now carries more than 300 products as part of its

President's Choice Organics line and plans on further expansion, said Geoff

Wilson, senior vice-president of investor relations and public affairs. The

company's mission is to sell a large line of products at low costs so that

people who typically avoid organics because of the high cost will be more

inclined to buy.

 

" I would argue what we're doing is we're bringing organics, organic products to

a wider segment of the population, " Wilson said. " What we're trying to do as a

company is broaden the reach. "

 

What was once a small niche market that operated at farm gates and in

health-food stores has expanded into a multibillion-dollar industry worldwide

that seems to be gaining in momentum. Now, it's impossible to walk down the

aisles of most major grocery stores without coming across a selection of organic

produce, packaged food and toiletries.

 

While multinational corporations are becoming players in the organic industry,

the people who have supported the organic industry when it was still a fringe

segment of the food industry see big problems. They say it's a conflict of

interest between the principles of organic agriculture and the tenets of

capitalism that will likely only get worse with time.

 

" Those companies are basically interested in the bottom line, aren't they? It's

another niche they can tap into, " said Thorpe, who has been a certified organic

farmer since 1990. " Because they are big concerns, they can probably undercut a

lot of the smaller outlets. They can see the numbers, the industry's been

growing exponentially over the last few years and basically it's more dollars to

be made. "

 

Members of the traditional organic industry said they find it ironic that

companies such as Loblaw sell organic products beside conventional products that

contain pesticides, chemicals and other byproducts of the traditional

agriculture industry. Loblaw, for instance, has come under fire from

environmentalists for selling eggs that were produced by caged hens.

 

" This is a very values-driven sector and so the organic pioneers, some of them

are not very happy, for sure, " said Laura Telford, executive director of

Canadian Organic Growers, a national charitable organization. " My biggest

problem is ... they're not really adopting organics the way our organic pioneers

had imagined. "

 

 

You can bomb the world to pieces

You can't bomb it into peace

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thanks for posting this frag.

 

peace

 

colinz

 

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TFHB ;

Tuesday, April 18, 2006 8:32 AM

just wot we need..organic kool aid....

Vancouver Sun, Page D04, 17-Apr-2006Organics industry goes mainstreamBy Carly Weeks OTTAWA - It's a growing industry whose largest backers include Coca-Cola, Wal-Mart and a subsidiary of the company that owns Phillip Morris Companies Inc., one of the world's largest cigarette makers. Organic and natural food may seem an unlikely venture for companies whose products have been accused of contributing to obesity, cancer-related deaths and the destruction of independent businesses, but large corporations eager to cash in on an exploding market for healthy products are swiftly taking over the organic industry in Canada. Some say the entry of organic food, ranging from apples to milk to hamburgers, into the mainstream retail market means the industry is finally getting the recognition it deserves and is becoming accessible to more segments of the population. Others are concerned that corporate empires will wipe out small, independent farms, rely heavily on imported food from countries that may compromise certification standards and rapidly erode the principles upon which organic food production was built. "What's important to keep in mind is that these big corporations are getting into organics not because they have doubts about their prior business practices or doubts about chemical industrial agriculture," said Ronnie Cummins, national director of the United States-based Organic Consumers Association. "They're getting in because they want to make a lot of money, they want to make it fast." He said the companies could care less about "family farmers making the transition to organic farms." Despite high prices (a recent analysis found organic produce in Ontario cost 40 per cent more in retail stores than conventionally grown food), Canada's organic industry is growing by 20 per cent annually, according to Agriculture Canada. In 2003, the country's organic retail market was worth $800 million to $1.3 billion. Projections made in 2003 also indicated that retail sales could grow to $3.1 billion in 2005. Canada is also involved in the lucrative organic export market, exporting about $63 million worth of products in 2003, according to Agriculture Canada. Organic retail sales have come to occupy a small niche in the overall Canadian food market in recent years. People looking for an alternative to traditionally grown food could find anything from organically produced vegetables to meat to even toothpaste. Small companies that specialized in organic and natural food products sprang up and gave health-conscious shoppers the opportunity to purchase goods that were guaranteed to be chemical- and pesticide-free. Consumers usually had to pay significantly more for these products because of the elevated costs of the complex organic growing process, but a segment of the population concerned about the effects of traditional products were willing to pay that premium. Recently, the niche began to expand -- greatly. Many Canadians are now heavily focused on healthy lifestyles, with increasing numbers of people rejecting fast food and other nutritionally void items. Companies that have watched sales of packaged foods plummet as a result are anxious to move into the booming natural food craze, which has opened the door for organic food to enter the mainstream market. "It's increased tremendously in the last few years in particular," said Ted Thorpe, who runs an organic farm north of Hamilton, Ont. For instance, Wal-Mart Stores Inc. announced last month its intention to become the leading mass provider of organic food. The company is in the process of doubling its selection of organic products, said spokeswoman Karen Burk. Wal-Mart has carried a small array of organic products in the last few years, but now recognizes the expanding market and huge demand for organic goods, Burk said. "We're seeing that customers want to come in and they're very interested in a large variety of organic selections," she said. In March, giant Colgate-Palmolive Co. bought control of Tom's of Maine, an independent U.S.-based business that specializes in natural toothpaste and other personal care products. In 2004, Kraft Foods, synonymous with processed cheese and sugary drinks, such as Kool-Aid and Tang, joined the growing list of multinationals diving into the organic market when it bought Back to Nature, a small natural cereals maker. Kraft Foods is a subsidiary of Altria Group, which also owns Phillip Morris, one of the biggest cigarette makers in the world, as well as one of the world's largest brewers. Soft drink giant Coca-Cola, which has come under fire from physicians and nutritionists for its sugar-laden beverages, bought out Odwalla Inc., which produces premium juices and nutrition bars. While not 100 per cent organic, the company boasts a commitment to holistic, environmentally sound practices and uses ingredients that don't contain genetically modified substances. Loblaw Companies Ltd. now carries more than 300 products as part of its President's Choice Organics line and plans on further expansion, said Geoff Wilson, senior vice-president of investor relations and public affairs. The company's mission is to sell a large line of products at low costs so that people who typically avoid organics because of the high cost will be more inclined to buy. "I would argue what we're doing is we're bringing organics, organic products to a wider segment of the population," Wilson said. "What we're trying to do as a company is broaden the reach." What was once a small niche market that operated at farm gates and in health-food stores has expanded into a multibillion-dollar industry worldwide that seems to be gaining in momentum. Now, it's impossible to walk down the aisles of most major grocery stores without coming across a selection of organic produce, packaged food and toiletries. While multinational corporations are becoming players in the organic industry, the people who have supported the organic industry when it was still a fringe segment of the food industry see big problems. They say it's a conflict of interest between the principles of organic agriculture and the tenets of capitalism that will likely only get worse with time. "Those companies are basically interested in the bottom line, aren't they? It's another niche they can tap into," said Thorpe, who has been a certified organic farmer since 1990. "Because they are big concerns, they can probably undercut a lot of the smaller outlets. They can see the numbers, the industry's been growing exponentially over the last few years and basically it's more dollars to be made." Members of the traditional organic industry said they find it ironic that companies such as Loblaw sell organic products beside conventional products that contain pesticides, chemicals and other byproducts of the traditional agriculture industry. Loblaw, for instance, has come under fire from environmentalists for selling eggs that were produced by caged hens. "This is a very values-driven sector and so the organic pioneers, some of them are not very happy, for sure," said Laura Telford, executive director of Canadian Organic Growers, a national charitable organization. "My biggest problem is ... they're not really adopting organics the way our organic pioneers had imagined." You can bomb the world to pieces You can't bomb it into peace

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