Wal-Mart and Organic Foods

Michael Pollan has an excellent article in the NYTimes Magazine. While the move is a positive one, it does come with problems:

... But before you pour yourself a celebratory glass of Wal-Mart organic milk, you might want to ask a few questions about how the company plans to achieve its laudable goals. Assuming that it's possible at all, how exactly would Wal-Mart get the price of organic food down to a level just 10 percent higher than that of its everyday food? To do so would virtually guarantee that Wal-Mart's version of cheap organic food is not sustainable, at least not in any meaningful sense of that word. To index the price of organic to the price of conventional is to give up, right from the start, on the idea, once enshrined in the organic movement, that food should be priced not high or low but responsibly. As the organic movement has long maintained, cheap industrial food is cheap only because the real costs of producing it are not reflected in the price at the checkout. Rather, those costs are charged to the environment, in the form of soil depletion and pollution (industrial agriculture is now our biggest polluter); to the public purse, in the form of subsidies to conventional commodity farmers; to the public health, in the form of an epidemic of diabetes and obesity that is expected to cost the economy more than $100 billion per year; and to the welfare of the farm- and food-factory workers, not to mention the well-being of the animals we eat. As Wendell Berry once wrote, the motto of our conventional food system — at the center of which stands Wal-Mart, the biggest purveyor of cheap food in America — should be: Cheap at any price!

To say you can sell organic food for 10 percent more than you sell irresponsibly priced food suggests that you don't really get it — that you plan to bring business-as-usual principles of industrial "efficiency" and "economies of scale" to a system of food production that was supposed to mimic the logic of natural systems rather than that of the factory.

We have already seen what happens when the logic of the factory is applied to organic food production. The industrialization of organic agriculture, which Wal-Mart's involvement will only deepen, has already given us "organic feedlots" — two words that I never thought would find their way into the same clause. To supply the escalating demand for cheap organic milk, agribusiness companies are setting up 5,000-head dairies, often in the desert. These milking cows never touch a blade of grass, instead spending their days standing around a dry-lot "loafing area" munching organic grain — grain that takes a toll on both the animals' health (these ruminants evolved to eat grass, after all) and the nutritional value of their milk. But this is the sort of milk (deficient in beta-carotene and the "good fats" — like omega 3's and C.L.A. — that come from grazing cows on grass) we're going to see a lot more of in the supermarket as long as Wal-Mart determines to keep organic milk cheap.

... Up to now, the federal organic standards have provided a bulwark against that pressure. Yet with the industrialization of organic, these rules are themselves coming under mounting pressure, and forgive my skepticism, but it's hard to believe that the lobbyists from Wal-Mart are going to play a constructive role in defending those standards from efforts to weaken them. Just this past year the Organic Trade Association used lobbyists who do work for Kraft Foods to move a bill through Congress that will make it easier to include synthetic ingredients in products labeled organic.

Organic is just a word, after all, and its definition now lies in the hands of the federal government, which means it is subject to all the usual political and economic forces at play in Washington. Inevitably, the drive to produce organic food cheaply will bring pressure to further weaken the regulations, and some of K Street's finest talent will soon be on the case. A few years ago a chicken producer in Georgia named Fieldale Farms persuaded its congressman to slip a helpful provision into an appropriations bill that would allow growers of organic chicken to substitute conventional chicken feed if the price of organic feed exceeded a certain level. That certainly makes life easier for a chicken producer when the price of organic corn is north of $5 a bushel, as it is today, and conventional corn south of $2. But in what sense is a chicken fed on conventional feed still organic? In no sense but the Orwellian one: because the government says it is.

After an outcry from consumers and some wiser heads in the organic industry, this new rule was repealed. The moral of the Fieldale story is that unless consumers and well-meaning organic producers remain vigilant and steadfast, the drive to make the price of organic foods competitive with that of conventional foods will hollow out the word and kill the organic goose, just when her golden eggs are luring so many big players into the water. Let's hope Wal-Mart recognizes that the extraordinary marketing magic of the word "organic" — a power that flows directly from our dissatisfaction with the very-cheap-food economy Wal-Mart has done so much to create — is a lot like the health of an organic chicken living in close confinement with thousands of other chickens in an organic CAFO, munching organic corn: fragile.