A Toxic Combination: Forever Chemicals Are Adding to the Health Risks of Pesticides
This article first appeared in the August 2024 issue of Presence Marketing’s newsletter.
By Steven Hoffman
Two recent studies, one conducted by Consumer Reports and published in May 2024, and another published in Environmental Health Perspectives in July 2024, suggest that exposure to toxic synthetic pesticides continues to be a serious issue and a growing threat to human, animal and environmental health.
Now, add forever chemicals into the mix, as environmental advocacy groups found that 66 active ingredients currently approved for use in pesticides qualify as PFAS, also known as “forever chemicals.”
In addition, according to the study, “Forever Pesticides: A Growing Source of PFAS Contamination in the Environment,” eight approved “inert” ingredients – added to pesticides to help chemicals disperse and stick to the plants, for example – also qualify as PFAS. The research was conducted by the Center for Biological Diversity, Public Employees for Environmental Responsibility and the Environmental Working Group, and was published in the journal Environmental Health Perspectives.
Most Comprehensive Pesticide Review Ever
According to the Consumer Reports study published in May, the advocacy group conducted “our most comprehensive review ever of pesticides in food,” looking at 59 common fruits and vegetables (fresh versions, and in some cases, also canned, dried and frozen fruits and vegetables) and analyzing seven years of data from the U.S. Department of Agriculture. USDA annually tests a selection of conventional and organic produce grown in or imported to the U.S. for pesticide residues.
“Our new results continue to raise red flags,” said Catherine Roberts on behalf of Consumer Reports. “Pesticides posed significant risks in 20% of the foods we examined, including popular choices such as bell peppers, blueberries, green beans, potatoes, and strawberries. One food, green beans, had residues of a pesticide that hasn’t been allowed to be used on the vegetable in the U.S. for over a decade. And imported produce, especially some from Mexico, was particularly likely to carry risky levels of pesticide residues.”
Added Roberts, “When it comes to healthy eating, fruits and vegetables reign supreme. But along with all their vitamins, minerals and other nutrients can come something else: an unhealthy dose of dangerous pesticides.” Science has strongly linked pesticide exposure to increased risks of cancer, diabetes, neurological and childhood development issues, and many other health problems.
PFAS: Compounding the Concern
Compounding the concern of pesticide pollution is the discovery that PFAS chemicals are being used in many of the toxic, synthetic pesticide formulations approved for use on farms across the U.S., raising questions about the long-term consequences of such pernicious substances enduring for decades in our soil and water. According to the Environmental Protection Agency, these chemicals “break down very slowly and can build up in people, animals, and the environment over time.”
PFAS have been linked to cancer, reproductive issues and developmental delays in children, among other adverse health effects. To make matters worse, the researchers who published the Environmental Health Perspectives report found that a process called fluorination, which can create PFAS chemicals, is being used increasingly in the manufacture of pesticides to make them stick around for longer, Civil Eats reported.
“This is truly frightening news, because pesticides are some of the most widely dispersed pollutants in the world,” said Nathan Donley, Environmental Health Science Director for the Center for Biological Diversity and one of the study’s authors. “Lacing pesticides with forever chemicals is likely burdening the next generation with more chronic diseases and impossible cleanup responsibilities. The Environmental Protection Agency needs to get a grasp on this fast-emerging threat right away.”
“Toxic PFAS have no place in our food, water or homes, posing a serious threat to our health and environment,” said David Andrews, Ph.D., Deputy Director of Investigations and a Senior Scientist with the Environmental Working Group, a co-author of the study. “The increasing use of PFAS pesticides will lead to increasing levels of PFAS in the environment. PFAS not only endanger agricultural workers and communities but also jeopardize downstream water sources, where pesticide runoff can contaminate drinking supplies. From home gardens to pet care, the use of these pesticide products further illustrates why we must end all non-essential uses of these persistent forever chemicals,” Andrews added.
Choose Organic
Based on Consumer Reports’ research, the largest risks of dietary exposure to pesticide residues are caused by just a few pesticides concentrated in a handful of fruits and vegetables. Their findings also indicated that nearly all of the organically produced fruits and vegetables tested presented little to no risk.
To help educate consumers, Consumer Reports produced a printable guide showing the risk in produce from pesticides in both their conventional and organically produced counterparts, as well as whether they are grown domestically or imported.
Consumer Reports advised, “A proven way to reduce pesticide exposure is to eat organic fruits and vegetables, especially for the highest-risk foods. We had information about organically grown versions for 45 of the 59 foods in our analysis. Nearly all had low or very low pesticide risk, and only two domestically grown varieties—fresh spinach and potatoes—posed even a moderate risk. Organic foods’ low-risk ratings indicate that the USDA’s organic certification program, for the most part, is working,” Consumer Reports said.
“Less pesticide on food means less in our bodies: Multiple studies have shown that switching to an organic diet quickly reduces dietary exposure. Organic farming protects health in other ways, too, especially for farmworkers and rural residents, because pesticides are less likely to drift into the areas where they live or to contaminate drinking water,” Consumer Reports added.
However, of concern to advocates of organic agriculture, the report also showed that imported organic green beans had a very high pesticide risk – “the exact same rating as imported conventional green beans,” said Max Goldberg, Publisher of Organic Insider, in commenting on the study. Additionally, Consumer Reports findings indicated that U.S. grown organic spinach presented a “moderate” pesticide risk – “the exact same rating as both U.S.-grown and imported conventional Spinach,” Goldberg noted. U.S.-grown organic potatoes also presented a moderate risk, as did imported organic kale, according to USDA data analyzed by Consumer Reports.
While organic agriculture does allow for certain pesticides to be used, they are low-risk and derived from natural mineral or biological sources that have been approved by the USDA’s National Organic Program, said Goldberg, a renowned advocate for organic food and agriculture. Additionally, he noted, chemicals linked to human health and environmental issues, such as glyphosate or neonicotinoids, are prohibited in organic.
“The organic system is not fool-proof, and organic farmers may have persistent pesticides in their soil that have not degraded after the three-year transition period. Or, they may be the victim of pesticide drift from neighboring conventional farms. That being said, any fruit or vegetable that has a moderate, high or very high pesticide risk is a very serious red flag and should call for an immediate investigation. The fact that Consumer Reports looked at nearly 30,000 fruit and vegetable samples would invalidate an ‘isolated incident’ excuse,” Goldberg asserted.
“One of the primary reasons that we are paying extra to buy organic is specifically to avoid these chemicals. And yet, not only do imported organic green beans pose a very high pesticide risk, but they, along with U.S.-grown organic spinach, pose the exact same pesticide risk as their conventional counterparts,” he said.
“In the interim, retailers and brands must demand that their suppliers conduct third-party pesticide testing for all organic fruits and vegetables, or at a bare minimum, for all imported organic green beans and organic kale, and U.S.-grown organic spinach and organic potatoes. This will help identify who the bad actors are, so they can be removed from the system. We have no choice but to be unrelenting when it comes to pesticide contamination of organic fruits and vegetables,” said Goldberg.
Learn More
Download a printable version of Consumer Reports’ guide to pesticides in produce here.
Learn more about “Forever Pesticides: A Growing Source of PFAS Contamination in the Environment” here.
Follow and subscribe to Organic Insider here.
World-Renowned Agricultural Experts to Gather for ‘Focus on the Farmer’ Symposium in Denver
Event will educate farmers and producers on all aspects of navigating the organic certification process
BOULDER, Colo. (Oct. 24, 2023) — Farmers, agriculturists, producers and others interested in best practices for transitioning to organic are invited to attend the Focus on the Farmer Live educational and networking symposium in Denver on Nov. 9.
This free, daylong event is presented by Boulder, Colorado-based communications agency Compass Natural in partnership with the Colorado Department of Agriculture (CDA), Colorado State University (CSU) and the USDA’s Transition to Organic Partnership Program (TOPP). The symposium will bring together world-renowned experts in organic agriculture to share must-have information and resources with anyone on the journey of transitioning to organic production.
Focus on the Farmer Live, which will be held from 9 a.m. to 4:30 p.m. Thursday, Nov. 9 at the new, state-of-the-art CSU Spur Campus at the National Western Center in Denver, is the culmination of the four-part Focus on the Farmer series presented in 2023 by Compass Natural and TOPP.
“We’re honored to have been selected as one of the partners working with TOPP in the Plains States, and are thrilled to be working closely with the CDA’s organic program and leading researchers and educators at CSU to deliver a content-dense Focus educational program,” said Steven Hoffman, founder of Compass Natural.
Focus on the Farmer Live will feature keynote speaker Dr. Gene Kelly, professor of pedology at CSU and director of the U.S. National Committee for Soil Sciences. Panelists include CDA inspector Brad Spelts, Colorado manager of the New Agrarian Program Taylor Muglia, CDA soil and health expert Kristen Boysen, Bish Enterprises owner Andrew Bish, Rocky Mountain Hemp President Ryan Loflin and experts from Rodale, FSA, the Savory Institute and other top agencies.
This robust educational program will cover the following topics:
~ Navigating the Certification Process
~ Tech Innovation
~ Soil & Crop Health
~ Resiliency & Climate Change
~ Alternative Crops
~ Livestock & Plains Agriculture
~ Financial Resources
Lunch provided by the Organic Sandwich Company and tours of the Spur TERRA building will be available. The event will conclude with happy hour at the Sundown Saloon. Livestream will be available for participants who would like to join virtually.
Read more about Focus on the Farmer Live and register for free here.
About Compass Natural
Based in Boulder, Colorado, Compass Natural is a communications agency serving the market for organic food and agriculture, as well as businesses and brands providing natural, socially responsible, eco-friendly and other healthy lifestyles products and services. Founded in 2001 and driven by a commitment to create a better world through business, Compass Natural is a leader in the Lifestyles of Health and Sustainability (LOHAS) market.
About TOPP
The Transition to Organic Partnership Program (TOPP) is part of the USDA Organic Transition Initiative and is administered by the USDA Agricultural Marketing Service (AMS) National Organic Program (NOP). The $100 million, five-year TOPP initiative is designed to foster organic agriculture and make much-needed technical assistance available to transitioning and existing organic farmers.
Media Contact
Steven Hoffman, Compass Natural, steve@compassnatural.com, tel 303.807.1042
Is Cell Cultured Meat Safe for Humans and the Environment?
This article first appeared in Presence Marketing’s September 2023 newsletter.
By Steven Hoffman
Now that two California-based companies, Upside Foods and Good Meat, have received approval by the FDA and USDA to sell their lab-grown chicken products in restaurants before going full retail, the U.S. joins two other countries, Singapore and Israel, as the first to allow commercialization of cell cultured meat products.
What do natural channel industry members need to know about this new and controversial technology?
One thing seems certain: cell cultured meat, derived from and produced with biological materials sourced from animals, is not vegan. Few think it’s natural and many question whether it’s humane or safe for consumers to eat, at least in its present iteration. Despite being touted by such chefs as José Andrés, some experts question whether lab-grown chicken is even chicken. The ability to scale, along with potentially significant environmental impacts and production costs, are also top concerns for industry and consumers alike.
“We know that one company is using genetic engineering to create and immortalize chicken fibroblast and/or myoblast cell lines. They select for cells that they can bulk up in a suspension culture. However, growth factors used in the suspension culture may come from sera sourced from bovine, pig or other animal sources,” Michael Hansen, Ph.D., Senior Scientist with Consumer Reports, told Presence News.
“If you’re buying chicken, you need to know if it was made with bovine or pork materials. How will consumers and those that follow special diets know if it’s not labeled?” Hansen asked. “Restaurants do not have to label.”
Countering cruelty free claims made by marketers of cell cultured meat, Hansen added, “The notion that this is cruelty free? They’re using fetal bovine serum derived from slaughtered cattle. They are, in fact, using a lot of material from animals. Let me be straight up clear: they are not cruelty free.”
In addition, Hansen raised concerns about the nutritional quality of the meat produced using cell culture technology. “Nutritionally, normal cholesterol levels in ground chicken average 45.4 mg/dL. However, cholesterol levels were reported five to 10 times higher in lab-grown, cell cultured chicken products,” he pointed out.
Safety, too, is a major point of concern for Hansen, who has been sharing his scientific expertise with Consumer Reports for more than 20 years. “People haven’t eaten these kinds of things before. We don’t know the downside and there have been no adequate health or safety studies conducted, to date.”
Josh Tetrick, CEO of Eat Just and Cofounder of Good Meat, feels differently about the safety of his cell cultured chicken product.
“So how do we do it?” Tetrick explained in an April 2022 interview with The Venture podcast. “We start with a cell. And we can get that cell from an egg, from a fresh piece of meat, or from a biopsy of an animal, so we don’t need billions of farmed animals anymore. Then we identify nutrients to feed the cell, since we need our own version of feed. And it’s not that different. It’s amino acids, vitamins, and minerals—stuff that enables our cell to grow. And then we scale up and manufacture it in a stainless-steel vessel called a bioreactor that looks like something you’d see in a microbrewery.
“And that’s how we make meat. That’s the process we used to make meat that’s served in Singapore today. That’s the process that we’ll be using as we build out larger facilities in North America, Singapore, and elsewhere. It’s cleaner, so there is little to no risk of salmonella, E. coli, fecal contamination, or other zoonotic diseases. Ultimately, we think it will be more efficient. The goal is to get below the cost of conventionally produced chicken,” Tetrick told The Venture.
“Because as proud as I am about launching with a handful of restaurants, that’s not the point. The point is to get to a world where the vast majority of meat consumed doesn’t require the need to slaughter an animal, cut down a tree, use antibiotics, or accelerate zoonotic disease. We’ve got to get to that world. And we’re only going to get to that world when we figure out a way to manufacture at scale. And we’re only going to get to scale when we figure out how to engineer this unprecedented bioreactor. And that’s why we’re putting so much energy into figuring it out,” Tetrick added.
“Yes, but what’s in the feed stock for the nutrient medium in which such products are grown?” natural products industry veteran and retail specialist Errol Schweizer asked.
“Billions of dollars of speculative investment have flowed into this space. The volumes of cell cultured meat needed to turn a profit for investors will necessitate millions of pounds or gallons of nutrient mix annually,” Schweizer said. “Will the feed stock be derived from cheap, plentiful but chemical-laden by-products of GMO agriculture, particularly soy and corn?
“And what are the environmental and health impacts of these feedstock raw materials? The industry will need to figure out how to dispose of the biological waste as a result of this process, as well. And because a lot of companies don’t want regulatory scrutiny beyond what already exists in the food industry, it’s going to take a lot of public pressure to get stronger labeling and federal oversight measures in place,” Schweizer told Presence News.
Max Goldberg, Founder of Organic Insider, questions the environmental benefits of cell cultured meat. “This is a very risky, unproven and highly processed food technology, and research published in May from the University of California at Davis shows that cultivated meat could emit up to 25 times more carbon dioxide equivalents than conventional beef. Yet, is anyone the least bit surprised? This is the classic playbook from the GMO industry – sell the public and investors on a great story but fail to deliver on the promises. Furthermore, no one has any idea of the possible unintended side effects of consuming this novel food product,” he told Presence News.
At the end of the day, will consumers accept such products? According to an international research group led by Ashkan Pakseresht from Novia University of Applied Sciences in Finland, consumer studies indicated at least seven factors affecting consumer acceptance of culture meat products: public awareness, risk-benefit perception, ethical and environmental concerns, emotions, personal factors, product properties, and availability of meat alternatives.
“Like any new food, the ultimate success of cultured meat depends on consumer acceptance,” the researchers said. “Environmental and ethical concerns stimulate a desire to preserve the environment and encourage consumers to accept more sustainable food production systems. However, it was surprising to learn that ethical and environmental concerns prompted consumers to be willing to pay a premium price for purchasing meat substitute (e.g., plant-based substitutes), but not necessarily cultured meat. The results indicated that the environmental advantages alone do not seem to be a strong motivation to compensate for perceived risks (or disgust impulse) of this novel technology,” Pakseresht told Food Navigator.
How will these products be presented to the public? According to Food Republic, a major hurdle has been determining how to label lab-grown meat in a way that would be transparent for consumers. “After a long process that has included debate and public feedback, the USDA has ruled that the lab-grown chicken will be labeled “cell-cultivated,” the magazine reported in June 2023.
“The USDA’s approval of our label marks a major step forward towards our goal of creating a more humane and sustainable food system,” said Dr. Uma Valeti, CEO and Founder of Upside Foods, in a press release about the decision.
At the end of the day, will grocers, distributors and others dedicated to the healthy lifestyles market and the natural retail channel be willing to sell cell cultured meat? As Bill Weiland, Co-founder of Presence Marketing, puts it, “We prefer to sell plant-based meat, not meat made in a plant.”
Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media, and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We Are for Better Alternatives. Contact steve@compassnaturalmarketing.com.
‘From Tractors to Drones’ – Latest Webinar in Educational Series Focuses on State-of-the-Art Technology for Farmers Transitioning to Organic
BOULDER, Colo. (Oct. 16, 2023) – The third free webinar in the Focus on the Farmer series, hosted by Compass Natural as part of USDA’s Transition to Organic Partnership Program (TOPP), will be held Oct. 26. All farmers transitioning to organic are welcome and encouraged to attend.
The free webinar will gather top experts in organic agriculture to discuss cutting-edge tools, production methods and technological innovations that can support farmers making the transition to organic.
Webinar: ‘From Tractors to Drones’
Date: Thursday, Oct. 26, 2023, 10:30 am - 12 pm MDT
Register: Register for free here. All registrants will receive a copy of the speaker presentations and a link to the Zoom video recording.
Panelists:
Sarah Hinkley, CEO and Co-Founder, Barn Owl Precision Agriculture
As CEO and co-founder of Barn Owl Precision Agriculture (BOPA) in La Junta, Colorado, Sarah Hinkley and her team help small to midsize farmers — and in particular farmers seeking to transition to organic and regenerative agriculture — with information technology equipment and services to help more closely monitor crops and fields. Working with organic farmers, hemp farmers and other producers, BOPA utilizes autonomous micro-tractors, drones and other on-farm robotics to compile and analyze on-field data, helping to create savings in inputs, labor and time.
Haley Nagle, Lead Outreach & Education Specialist, Comet Farm, a Project of USDA’s Natural Resources Conservation Service and CSU
Haley Nagle conducts lead outreach for COMET Farm, a tool developed by Colorado State University and the USDA Natural Resources Conservation Service. Using detailed, location-specific data on climate and soil conditions, COMET Farm helps farmers estimate the carbon footprint for all or part of a farm/ranch operation, allowing operators to evaluate options for reducing GHG emissions and sequestering carbon in the soil.
Andrew Bish, COO, Bish Enterprises
Andrew Bish is COO of family-owned Bish Enterprises, based in Giltner, Nebraska. The company is a leading manufacturer of equipment and accessories for tractors and combines, from custom “Bish Built” row crop headers to corn reels to products for harvesting industrial hemp. Andrew’s expertise spans a range of crops, from commodities such as sorghum, soybeans and cereal grains to specialty crops including hops, wild rice, hemp and seed grasses. He also brings a passion for organic production to this webinar.
From left: Sarah Hinkley, Haley Nagle and Andrew Bish
“We are thrilled with the interest our Focus on the Farmer series has generated," says Steven Hoffman, founder of Compass Natural. ”We’re all dependent on technology today to help run our businesses, and that goes for agriculture too. Our panelists will share about state-of-the-art technology that is specifically focused on helping farmers succeed in the transition to organic and beyond."
About Compass Natural
Based in Boulder, Colorado, Compass Natural is a communications agency serving the market for organic food and agriculture, as well as businesses and brands providing natural, socially responsible, eco-friendly and other healthy lifestyles products and services. Founded in 2001 and driven by a commitment to create a better world through business, Compass Natural is a leader in the Lifestyles of Health and Sustainability (LOHAS) market.
The Focus on the Farmer educational series is produced by Compass Natural in partnership with USDA’s Transition to Organic Partnership Program (TOPP) in the Plains States region. TOPP is designed to foster organic agriculture and make much-needed technical assistance available to transitioning and existing organic farmers.
About TOPP
The Transition to Organic Partnership Program (TOPP) is a program of the USDA Organic Transition Initiative and is administered by the USDA Agricultural Marketing Service (AMS) National Organic Program (NOP).
Media Contact
Steven Hoffman, Compass Natural, steve@compassnatural.com, 303.807.1042
Cracking Down on Fraud: USDA Organic Enforcement Rules Take Full Effect in March 2024
This article first appeared in Presence Marketing’s September 2023 newsletter.
By Steven Hoffman
Organic food is big business in the U.S. – sales of organic products topped $61 billion in 2022 – and the certified organic label fetches a premium price for producers. So much so that fraud from both domestic and imported sources had become a major concern among organic industry business owners, investors and advocates.
That’s why such leading organizations as the Organic Trade Association (OTA) and others applauded the U.S. Department of Agriculture (USDA) when, earlier this year, the agency announced the Strengthening Organic Enforcement (SOE) final rule, which is set to be fully implemented and enforced in March 2024.
Representing the biggest change to organic regulations since the passage of the Organic Food Production Act in 1990, the SOE Rule was created to crack down on organic fraud. The new rule provides “a significant increase in oversight and enforcement authority to reinforce the trust of consumers, farmers, and those transitioning to organic production. This success is another demonstration that USDA fully stands behind the organic brand,” Jenny Lester Moffitt, USDA Under Secretary for Marketing and Regulatory Programs, said in a statement.
“The rule closes gaps in current organic regulations and builds consistent certification practices to prevent fraud and improve the transparency and traceability of organic products. Fraud in the organic system – wherever it occurs – harms the entire organic sector and shakes the trust of consumers in organic. This regulation will have significant and far-reaching impacts on the organic sector and will do much to deter and detect organic fraud and protect organic integrity throughout the supply chain,” OTA said in support of the new rule.
Liz Figueredo, quality and regulatory director at organic certifier Quality Assurance International (QAI), based in San Diego, California, told Nutritional Outlook in July 2023 that the new SOE Rule closes supply chain loopholes that existed in previous regulations. The new rule requires organic certification for all parts of the supply chain, including handlers and suppliers who were previously exempt, she said.
“This means that certifiers can no longer depend on documentation from uncertified handlers, which was often lacking, to verify the organic status of products. The rule also includes fraud-reduction techniques, such as requiring an Import Certificate for any organic ingredients or products imported into the U.S., which provides the total volume or weight of the imported products,” Figueredo said.
Who Is Affected by the New SOE Rule?
According to USDA, the SOE Rule may affect USDA-accredited certifying agencies; organic inspectors; certified organic operations; handlers of organic products; operations considering organic certification; businesses that import or trade organic products; retailers that sell organic products; and organic supply chain participants who are not currently certified organic.
Exemptions are limited to a few low-risk activities such as very small operations; certain retail establishments that do not process; storage and warehouse facilities that only handle products in sealed, tamper-proof containers or packages; distributors that only handle final retail-packaged products; and customs and logistics brokers that do not take ownership or physical possession of organic products.
However, exempt operations must still follow all other applicable portions of organic regulations, including co-mingling and contamination prevention, labeling requirements and record keeping. Transporters that only move organic products between certified operations, or transload between modes of transportation, do not need to be individually certified, but are the responsibility of the certified operation that loads or receives the product.
To see if your business is affected and for more information, visit the full text of USDA’s SOE Rule in the Federal Register. OTA, too, has a resource page with extensive information regarding preparing for full compliance with the SOE Rule, along with exclusive training materials for association members. OTA also offers a questionnaire for businesses that may not be sure if they need certification.
What Does the SOE Rule Do?
According to USDA, “SOE protects organic integrity and bolsters farmer and consumer confidence in the USDA organic seal by supporting strong organic control systems, improving farm to market traceability, increasing import oversight authority, and providing robust enforcement of the organic regulations.”
Key updates include:
Requiring certification of more of the businesses, like brokers and traders, at critical links in organic supply chains.
Requiring NOP Import Certificates for all organic imports.
Requiring organic identification on non-retail containers.
Increasing authority for more rigorous on-site inspections of certified operations.
Requiring uniform qualification and training standards for organic inspectors and certifying agent personnel.
Requires standardized certificates of organic operation.
Requires additional and more frequent reporting of data on certified operations.
Creates authority for more robust recordkeeping, traceability practices, and fraud prevention procedures.
Specify certification requirements for producer groups.
“SOE complements and supports the many actions that USDA takes to protect the organic label, including the registration of the USDA organic seal trademark with the USPTO. The registered trademark provides authority to deter uncertified entities from falsely using the seal, which together with this new rule provides additional layers of protection to the USDA organic seal,” USDA said.
For producers wanting to learn more about navigating and adhering to these new requirements, the Western Growers Association in partnership with the Organic Produce Network will host a session at its upcoming Organic Grower Summit, Nov. 29-30, 2023, in Monterey, California, entitled “The SOE Deadline Looms–Are You Ready?” The seminar is designed to help growers better understand the upcoming rule changes, which will affect producers, distributors, handlers and importers.
In addition, organic industry and policy veterans Gwendolyn Wyard and Kim Dietz recently founded Strengthening Organic Systems, an advisory firm focused on helping businesses with organic fraud prevention, supply chain investigations and compliance with USDA’s organic anti-fraud regulations.
Read More
How Will USDA’s Organic Regulation Changes Affect the Food and Nutraceutical Industries? – Nutritional Outlook
USDA Launches Organic Integrity Database Module – Organic Insider
Tighter Rules Now in Effect for USDA Organic Seal of Approval – Cosmetics and Toiletries News
Strengthening Organic Enforcement USDA Rule – California Certified Organic Farmers
USDA Bolsters Consumer Confidence in Certified Organic Products with New Enforcement Rule – New Hope Network
Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media, and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We are for Better Alternatives. Contact steve@compassnaturalmarketing.com.
‘Where’s the Money?’ – Focus on the Farmer Educational Series to Cover Financial Assistance for Farmers Transitioning to Organic
BOULDER, Colo. (Sept. 15, 2023) – As part of USDA’s Transition to Organic Partnership Program (TOPP), Compass Natural’s Focus on the Farmer educational series will offer a free webinar on Sept. 28 to support farmers transitioning to organic.
The webinar, the second in a series of four events hosted by Compass Natural in 2023, will gather top experts in organic agriculture, investment and finance to discuss investment, loan and funding opportunities for transitional and organic farmers, including government and grant programs to help cover the costs of transition and obtaining organic certification.
Webinar: WHERE’S THE MONEY?
Date: Thursday, Sept. 28, 2023, 10:30 am-12 pm MDT
Register: Register for free here. All registrants will receive a copy of the speaker presentations and a link to the Zoom video recording.
Panelists include:
Jayce Hafner, Co-Founder and CEO, FarmRaise
Co-founder and CEO of FarmRaise, Jayce Hafner grew up on a small livestock farm. She created FarmRaise to provide “farmer-friendly financial tools” and to help find funding and grants to support the transition to organic agriculture and more. Tracking tax and carbon credits, USDA grants and other programs, FarmRaise keeps farmers apprised of funding opportunities and helps them manage their business and finances.
Brandon Welch, Co-Founder and CEO, Mad Capital
Brandon Welch is co-founder and CEO of Mad Capital, providing customized loans and financing created for transitioning, organic and regenerative farmers. Replacing traditional loans and farm debt with capital that enables the transition to organic, Brandon is working to regenerate land at scale by providing long-term and tailor-fit credit to help farmers navigate the challenges of transitioning. He has experience in underwriting, credit, raising private funds, portfolio management and business building.
Emma Fuller, Co-Founder, Fractal Ag
Dr. Emma Fuller helped co-found Fractal Ag, which invests alongside farmers by taking passive, minority stakes in land that farmers already own. Farmers receive needed capital to invest in their operations, while investors access high-quality farmland that remains in the hands of the farmer. Farmers decide how to use the capital to best grow their business. Fractal discounts the cost of capital for farmers who have introduced regenerative practices, regardless of when they adopted them. Emma received her Ph.D. in Ecology and Evolutionary Biology from Princeton.
Claire Mesesan, Chief of Staff, Iroquois Valley Farmland REIT
Claire Mesesan is chief of staff at Iroquois Valley Farmland REIT, a public benefit corporation. Iroquois Valley provides land security to organic farmers through long-term leases, mortgages and operating lines of credit. Iroquois Valley supports the organic transition through its products, offering a discounted lease rate during the organic transition and interest-only mortgages for the first five years, and supports soil health and conservation projects through its in-house grant program.
Mark Retzloff, former president of the Organic Trade Association and co-founder of Horizon Organic Dairy, Greenmont Capital Partners and Alfalfa’s Market, and Steven Hoffman, founder of Compass Natural and a former Peace Corps volunteer and USDA agriculture extension agent, will serve as co-moderators.
“Our ultimate goal is to support and educate farmers during their journey to organic certification,” says Steven Hoffman, founder of Compass Natural. ”Financing is inevitably a top concern and we are thrilled to have such seasoned leaders sharing information with farmers and producers to help them navigate the process.”
About Compass Natural
Based in Boulder, Colo., Compass Natural is a communications agency serving the market for organic food and agriculture, as well as businesses and brands providing natural, socially responsible, eco-friendly and other healthy lifestyles products and services. Founded in 2001 and driven by a commitment to create a better world through business, Compass Natural is a leader in the Lifestyles of Health and Sustainability (LOHAS) market.
The “Focus on the Farmer” educational series is produced by Compass Natural in partnership with USDA’s Transition to Organic Partnership Program (TOPP) in the Plains States region. TOPP is designed to foster organic agriculture and make much-needed technical assistance available to transitioning and existing organic farmers.
About TOPP
The Transition to Organic Partnership Program (TOPP) is a program of the USDA Organic Transition Initiative and is administered by the USDA Agricultural Marketing Service (AMS) National Organic Program (NOP).
Media Contact
Steven Hoffman, Compass Natural, steve@compassnatural.com, 303.807.1042
Exclusive Invitation: 'Focus on the Farmer' Webinar Offers Tools for Transitioning to Organic
Compass Natural Presents
Focus on the Farmer
On behalf of USDA and the Great Plains TOPP, you're invited to join us for a free educational webinar:
'Navigating the Transition to Organic:
A Roadmap for Success'
Opportunities are there for transitioning and existing organic farmers. But what are the obstacles and where are the resources, technology and assistance to support hemp farmers and others who are transitioning to organic?
For producers interested in learning more, join us for the first event in the Focus on the Farmer education series.
Aug. 29 from 10:30 am to 12 pm MDT
All registered webinar guests will receive a FREE PDF DOWNLOAD of the presentation with links to key resources.
ABOUT:
This series is a collaboration between Compass Natural and USDA’s Transition to Organic Partnership Program (TOPP). The mission of TOPP is to foster organic agriculture and make much-needed resources and technical assistance available to transitioning and existing organic farmers. Compass Natural is a Colorado-based communications agency specializing in natural and organic food and agriculture.
We encourage you to share this with friends, family and fellow farmers!
For questions about the webinar or to nominate a speaker for a future event, please email news@compassnatural.com
Compass Natural Marketing Partners With USDA in Major Organic Farming Initiative
Leading natural and organic marketing communications agency selected to manage a series of key events to support farmers transitioning to organic
BOULDER, Colo. (Aug. 11, 2023) — Compass Natural, a Boulder, Colo.-based PR and communications agency with a deep commitment to organic and regenerative food, agriculture and the environment, has entered into a cooperative agreement to support the USDA’s Transition to Organic Partnership Program (TOPP). This $100 million, five-year program is a critical part of the USDA’s Organic Transition Initiative — the largest single investment in organic agriculture ever made by the USDA.
TOPP is designed to foster organic agriculture and make much-needed technical assistance available to transitioning and existing organic farmers. TOPP is building partnership networks in six regions across the U.S., working with trusted organizations like Compass Natural to create and administer farmer mentorship, education and community-building programs.
“We are thrilled to partner with Compass Natural on the Transition to Organic Partnership Program,” says Brandon Hill, OCIA International’s program director for the Plains Region TOPP. “As the agency has a deep connection to organic markets, it is a great fit to help make the connections producers will need to successfully transition to organic.”
Compass Natural is one of 16 select organizations partnering with OCIA International in TOPP’s Plains Region, encompassing Colorado, North Dakota, South Dakota, Nebraska, Kansas and Oklahoma. Compass Natural will manage a series of key events for farmers throughout the Plains Region during the second half of 2023. Using a contact list of more than 25,000 industry leaders, decision-makers, producers and major media members involved in organic food and agriculture, Compass Natural will bring together key experts and farmers to support the mission of the TOPP program.
‘Focus on the Farmer’ Fall Series Kicks Off With Aug. 29 Webinar
Compass Natural will kick off a Fall “Focus on the Farmer” education program on Aug. 29, 2023, with the first of a series of monthly webinars. Registration is now open. Farmers can sign up here.
August panelists will include:
· Dr. Gene Kelly, professor of pedology, deputy director of the Colorado Agricultural Experiment Station and the associate director for research in the School of Global Environmental Sustainability at Colorado State University (CSU).
· Tina Owens, senior fellow of Regenerative Agriculture, leading the Nutrient Density Alliance, a program within the Soil & Climate Alliance at Green America. Tina has been working as a sustainability leader within the organic sector since 2008 for several of the largest organic brands in the world, including enabling on-farm transition to organic and regenerative practices.
· Mark Retzloff, a pioneer in the organic and natural foods industry with a 47-year career including co-founder of Alfalfa’s Markets, co-founder of Aurora Organic Dairy, co-founder of Horizon Organic Dairy and former chairman of the Organic Food Alliance.
Live Symposium Planned for November 2023
The Fall Series will conclude with a live, one-day networking and education event in November. It will bring together world-class experts and farmers to discuss subjects related to transitioning to organic. Topics will include key organic resources, the regeneration of soil and carbon sequestration, best practices in pest control, organic farming and ranching production, and handling, financing alternatives, value-added product development and more.
Upcoming events will also highlight community-building initiatives like TOPP for Indigenous Producers; Linking Organic Consumer Packaged Goods Brands With Organic Producers in Transition; and Financing, Grant and Funding Options for Organic Producers. Technical assistance and training initiatives include TOPP for Hemp/Grain Farmers in the Plains Region, TOPP for Specialty and Produce Growers, and TOPP for Western Slope Fruit and Specialty Crop Producers.
“Compass Natural is honored, grateful and excited to be partnering with TOPP on such an important program focusing on supporting farmers as they transition to organic,” says Steven Hoffman, founder of Compass Natural. A former agricultural extension agent and graduate of Penn State University, a land grant college, Hoffman adds, “We look forward to educating farmers about the true value of organic in building resiliency in their farm operations.”
About Compass Natural
Based in Boulder, Colo., the “Epicenter of the Natural Products Industry,” Compass Natural is a boutique communications agency serving the rapidly growing market for natural, organic, socially responsible, eco-friendly and other healthy lifestyles products. Founded in 2001 and driven by a commitment to create a better world through business, Compass Natural is a leader in the Lifestyles of Health and Sustainability (LOHAS) market.
About TOPP
Transition to Organic Partnership Program (TOPP) is a program of the USDA Organic Transition Initiative and is administered by the USDA Agricultural Marketing Service (AMS) National Organic Program (NOP).
Media Contact
Steven Hoffman, Compass Natural, steve@compassnatural.com, tel 303.807.1042
AI Leads Tech Transformation in Natural Foods
This article first appeared in Presence Marketing’s August 2023 newsletter.
By Steven Hoffman
While 2023 may not be the year the singularity took place, with the launch of the first user-friendly artificial intelligence (AI) chat bot, ChatGPT, it could well go down in history as the Year of AI.*
From regenerative organic agriculture and nutrition research to product development, marketing, distribution and retail operations, business leaders in the natural channel are already finding multiple uses for this nascent yet transformative technology. A growing number of natural and organic products companies are taking the lead in employing AI automation, and such uses across the supply chain are growing as exponentially as the technology upon which it is based.
For the grocery industry, AI is projected to generate $113 billion in operational efficiency and new revenue by 2025. In a June 2023 study by data analytics firm Grocery Doppio, conducted in partnership with FMI – The Food Industry Association, and based on interviews with 152 grocery executives, implementation of artificial intelligence in supermarkets is expected to grow by 400% by the end of 2024. In addition AI “could eliminate 18% of store associate positions, 73% of store tasks and 53% of shopper queries,” reported Winsight Grocery Business.
AI adoption will deliver $113 billion in operational efficiency and new revenue opportunities for the grocery industry by 2025. Source: The Times They Are A-Changing: Impact of AI in Grocery. Source: Grocery Doppio
According to Grocery Doppio’s findings, inventory management savings could account for more than half of the estimated $113 billion in value. AI also will help grocers save billions in merchandising costs through advancements in product assortment and pricing optimization. Other savings include marketing, store operation costs, and IT technology.
While AI is not necessarily a new area for the grocery industry, grocers are focusing more on the “responsible, ethical use” of artificial intelligence,” said Mark Baum of FMI in a July 13th, 2023, Grocery Dive report. One quarter of retailers and more than a third of suppliers are using artificial intelligence (AI) to track product preferences and spending to anticipate consumer wants and needs, according to FMI’s 74th annual survey, The Food Retailing Industry Speaks 2023. “Every CEO needs to at least think like a CIO, if not act like a CIO, going forward. We’d like to say these days if you’re not technology enabled, you’re competitively disadvantaged,” Baum said.
Yet, a major concern among grocery and other workers is that AI could automate or partially automate up to 300 million jobs over the next decade, according to a study by Goldman Sachs. The industries most impacted by AI-driven automation will be “office and administrative support” and “legal.” However, according to Goldman Sach’s findings, “Once AI is implemented, workers will be more productive leading to an overall increase in output. This could lead to a 7% increase in annual GDP, equivalent to an astounding $7 trillion.”
Read on to learn how some early adopters in the natural and organic products industry are making innovative use of AI technology.
Research and Product Development
Dietary supplement companies have been utilizing AI to speed up the research of nutritional compounds. Companies like Brightseed employ machine learning to develop bio-active phytonutrient compounds to support gut health. Supplement maker Nuritas, recipient of Nutrition Business Journal’s 2023 Science and Innovation Award, employs artificial intelligence to identify “novel health-benefitting ingredients” and “the best plant-sourced, cell-signaling peptides,” said Nuritas founder Nora Khaldi.
In a July 2023 podcast, The Natural List, Aadit Patel, VP of Product Engineering at NotCo, a plant-based food technology company, shared how it uses AI and “the right balance of technology and humanity” to bring novel plant-based meat and dairy alternatives to market.
In related news, researchers at Northeastern University have developed an AI algorithm, FoodProX, that can predict the level of processing in food products and if a food has been “ultra-processed.” Such information is important for researchers in examining the health impacts of processed foods, Neuroscience News reported in June 2023.
Marketing
In an in-depth interview in Strategy Magazine, Arjan Stephens, President of leading organic food manufacturer Nature’s Path, shared that AI helps the company deal with inflation and competition by creating more targeted messaging in a quicker timeframe.
“The aim is to educate consumers on our commitment to fueling healthy communities as well as the inherent value of supporting and investing in a triple bottom line business like ours. A.I. has been a huge part of driving efficiencies in getting more strategic content to market more quickly. It not only enables us to swiftly create and distribute content, but to also respond more efficiently to consumer feedback and shopping behavior changes. This will continue to be critical to competing in a market that is oversaturated in greenwashing and misinformation,” Stephens said.
Distribution
Distributors, in particular, are looking to AI – and even AI-powered robots – to optimize supply chain and transportation logistics. Leading natural foods distributor UNFI in June 2023 announced a partnership with Finnish firm RELEX Solutions. Driven by AI and machine learning, RELEX will work with UNFI to consolidate and replace multiple UNFI buying systems into “one enhanced process, combining a more robust analysis of demand with a more granular approach to procurement,” UNFI said in a statement.
UNFI’s new AI platform is expected to become operational over the next 12 to 18 months. “As part of UNFI’s multi-faceted transformation agenda, we’re continuing to implement cutting-edge technology to improve the customer and supplier experience, while increasing operating efficiency,” said Erin Horvath, Chief Operating Officer at UNFI. In March 2023, UNFI announced that it would utilize robots powered by artificial intelligence and software automation and new scanning technology at its distribution center in Centralia, Washington.
Grocery wholesale cooperative Associated Food Stores (AFS) also plans to deploy robotics and AI-powered automation technology at is distribution center in Farr West, Utah, according to a May 9th, 2023, report in Winsight Grocery Business. Working with technology company Symbotic, AFS’s end-to-end automation system will include robotic case-pick capabilities “to enhance a range of retail-facing experiences,” including supply, expanded assortment and product delivery to stores.
Seeking to disrupt the traditional natural products distribution sector, Pod Foods claims it offers the first truly “infinite” warehouse for food procurement in the industry while providing retailers with data-driven, relevant access. The engine is powered by the company’s “Pod Bytes” data platform, which synthesizes data from its B2B marketplace, economic indicators, and other grocery-adjacent and third-party sources, the company said. The built-for-grocery models provide retailers with personalized, AI-enabled insights across all areas of discovery, including product placement, procurement, inventory optimization and market opportunity. The result is access to an endless yet personalized assortment of products, targeted to each retailer based on consumer purchasing behavior, desired retail margins, local trends, and more, the company says. Pod Foods in April 2023 appointed former VP executive and CPG veteran Michael Schall as President.
Retail
At The Fresh Market, which operates 160 stores in 22 states, longtime marketing partner Firework is implementing a patent-pending artificial intelligence platform to enhance The Fresh Market’s video content for consumers. The technology will allow shoppers to ask questions and receive sophisticated, real-time answers in The Fresh Market’s in-video chat feature. Viewers will be able to ask such questions as, “What is the recipe for the salad being made in this video?” and the AI chatbot will list the ingredients.
“The new AI engine makes use of a large language model (LLM), can understand and respond in a wide range of languages, and can be customized to reflect each brand’s unique voice,” The Fresh Market said in a statement. The new technology will be available on The Fresh Market’s website and its shoppable video live commerce retail media network. “Our customers are looking to engage with our brand in real time, both online and in store. With Firework’s generative AI technology, we can be certain that customers will receive prompt, friendly and personalized support whenever they choose to engage with our video commerce content,” said Kevin Miller, CMO at The Fresh Market.
Shoppers at Sprouts Farmers Market can now use an AI-based shopping assistant called Quin. The phone-based app from New York-based developer Verneek can answer spoken or typed questions about items sold in the stores and provide information about recipes, keto-friendly options, nutritional value and more. “As technology continues to evolve, Sprouts is always exploring new and innovative ways to improve our customer experience while providing joy in healthy living,” Sprouts said in a statement. Nasrin Mostafazadeh, Cofounder of Quin, said in ArcaMarx Magazine in April 2023 that the timing was right to launch Quin in grocery stores. However, he noted, Quin is not intended to replace grocery workers but to supplement them, giving them more time to focus on their job responsibilities, such as stocking shelves, doing inventory or checking out customers.
On THRIVE Market’s blog, the online retailer helps customers evaluate the best AI recipe generators. “There are now lots of websites that use AI machine learning to populate recipes based on ingredients, dietary restrictions, and even cooking skill level,” wrote THRIVE blogger Amy Roberts. “Some create a recipe based on ingredients you have on hand, while others churn out a recipe based on a query, like ‘Make a gluten-free chicken parmesan.’” Roberts reviewed ChatGPT for a vegan cheesecake recipe, Let’s Foodie for a red cabbage slaw, and PlantJammer for lasagna. “Did it work?” Roberts asked. “Surprisingly yes! The cheesecakes were a hit!” Though, Roberts admits she continues to refer to Pinterest for her own recipe ideas.
Using an organic food store as an example, AI platform Business Name Generator cites the following case study: “Consider the case of a budding entrepreneur, John, who planned to start an organic food store. He wanted a name that conveyed freshness, health, and sustainability. After struggling with brainstorming sessions, he turned to an online business name generator. He entered keywords such as ‘organic,’ ‘fresh,’ ‘healthy’ and ‘green.’ In seconds, the tool provided him with a list of potential names like ‘Freshly Organic,’ ‘Green Harvest,’ “Healthful Bounty’ and ‘SustainaBite.’ John was able to choose a unique and meaningful name for his store.”
Agriculture
For regenerative and organic farmers, AI technologies including machine learning and data analytics are being used to develop sophisticated monitoring systems that can provide farmers with real-time information about factors that affect soil health, including nutrient deficiencies and moisture levels. Combined with the use of sensors, drones and satellite imagery, AI algorithms are being used to analyze massive amounts of data to determine the optimal amount of water needed for each crop, reducing water waste, and ensuring that plants receive necessary nutrients for healthy growth. This not only conserves water resources but also helps to prevent soil degradation caused by overwatering, reported Marcin Frackiewicz in TS2 in May 2023.
At the University of California Davis, the AI Institute for Next Generation Food Systems (AIFS), funded in part by USDA, was launched in 2020 with a mission of meeting growing demand in the food supply by increasing efficiencies using AI and “bioinformatics” spanning the entire system from seed to shelf. Bringing more than 40 researchers together, AIFS says it aims to “bring artificial intelligence technology to the entire food system from crop breeding and farming to food production and nutrition. The institute will combine the development of the latest breakthroughs in artificial intelligence with preparing the food and agriculture industries to rapidly adopt them and ready the workforce.”
In addition, leading technology companies including IBM, Microsoft, Intel and others are focusing on developing artificial intelligence for use in agriculture and food production. Microsoft’s Project FarmVibes seeks to foster sustainable agriculture by collecting and analyzing data in from drones, sensors and other equipment to help farmers make real-time decisions about their crops. Intel and the National Science Foundation in 2022 invested $220 million in a number of AI ventures, including research in AI-Driven Innovation in Agriculture and Food Systems. Focusing on regenerative agriculture, IBM in 2022 launched IBM Regenerative Agriculture, which uses AI, data analytics, cloud technology and predictive insights to interpret agricultural and weather data and help farmers make decisions about crops.
“The food chain is a complex ecosystem that touches our everyday lives, and this is where AI has an advantage – by navigating the complex web of information, from farming to food distribution,” said Bryton Shang, CEO of Aquabyte in Forbes in July 2023. “It can help ensure higher-quality decision-making every step of the way.”
* Written and researched by a real human, with 40+ years’ experience in natural and organic foods and sustainable agriculture.
Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media, and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We are for Better Alternatives. Contact steve@compassnaturalmarketing.com.
Natural & Organic Industry Set to Surpass $300 Billion in Sales in 2023, Despite Slower Growth, Inflation
This article first appeared in Presence Marketing’s May 2023 newsletter.
By Steven Hoffman
The U.S. natural and organic products industry is on pace to surpass $300 billion in total industry sales in 2023, despite slower growth and inflation, according to early estimates by Nutrition Business Journal.
Presenting the data at Natural Products Expo West in March, New Hope Network SVP and Market Leader Carlotta Mast said, “This would represent a doubling of industry sales over the last decade. That’s huge. We are a sizeable, impactful, meaningful industry. We’re not a fad anymore. We’re not this niche industry.”
Photo: Unsplash
U.S. consumer sales of natural and organic products reached $278 billion in 2022, with growth slowing from 7% in 2021 to 5.4% in 2022, according to preliminary research by Nutrition Business Journal, based on data provided by market research firm SPINS. This follows an unprecedented spike of 10% growth in 2020, as a result of the pandemic. Sales growth is expected to recover somewhat going forward, according to Mast, and is projected to reach 6% in 2024 and 2025.
The bulk of the growth in 2022 was driven by natural, organic and functional food and beverage sales, led by carbonated drinks, dairy alternatives, “better-for-you” sweeteners, baby products and canned and dried soups. These categories outperformed the overall natural and organic products industry, Mast noted. In functional foods and beverages, sports and energy drinks, soft drinks, frozen desserts and snack chips that include functional ingredients such as mushrooms, adaptogens, electrolytes, prebiotics and healthy fats helped drive sales in the category.
Hitting a milestone in 2022, as well, were sales of organic food and beverage products, with sales estimated at more than $50 billion. According to Mast, this figure represents a doubling in organic food and beverage sales since 2014. Product categories that performed strongly in the organic sector last year included organic baby formula, candy, dips, soft drinks and yogurt, according to New Hope and SPINS data.
However, after seeing record growth in 2020, most impacted by inflationary pressures was the dietary supplements category, which rose only 1.7% in 2022 to $60.9 billion in sales, based on the data presented at Expo West and reported on by Food Navigator-USA.
Kathryn Peters, Chief of Staff at SPINS, shared with attendees at Expo West that natural and organic foods are continuing to expand into the mainstream, with sales of natural products in conventional grocery and convenience outpacing growth in traditional natural food stores. Growth in sales of natural products in 2022 increased 9.2% in convenience, followed by a 7.4% increase in “conventional multi-outlet,” and a 4.1% increase in regional grocery, compared to 2.5% growth in the natural channel, based on SPINS data and reported by Food Navigator-USA.
While shoppers continue to look for deals and best prices across multiple channels including supermarkets, mass retailers, club stores and online to help reduce the impact of higher food prices, according to The Hartman Group and FMI — The Food Industry Association, 32% of shoppers concerned about rising food prices reported buying fewer items as a strategy to save money in February 2023. That’s down from 41% of shoppers who reported buying fewer items to save on food costs in October 2022.
“Our national survey reveals persistent consumer concern about food and beverage prices, as the weekly spend for groceries increased in late 2022 and early in 2023,” Leslie G. Sarasin, president and CEO of FMI, said in a statement. “To address higher prices, shoppers are visiting more stores and seeking deals to stretch their dollars but are now less likely to cut back on the number of items purchased compared to six months or a year ago. This is an opportunity for our industry to continue connecting with shoppers on food-inflation-mitigating solutions.”
According to FMI and The Hartman Group’s findings, food price concerns cut across shopper demographics, however, “Boomers are more worried about rising food prices than any other group, with 80% showing concern in February 2023 versus 69% in October 2022. Millennials polled close behind with 76% saying they are concerned, 5% more than one year ago. Such concerns about food costs coincide with an increase in spending in this inflationary environment. In February, on average, consumers spent $164 per week on groceries, up from $148 in both October and February of 2022,” FMI said.
Natural and organic food shoppers, in particular, may be less sensitive to price than traditional shoppers, but they still want quality, taste, nutrition, value … and sustainability. Younger consumers are driving demand toward brands that reduce waste and minimize carbon footprint and environmental impact. “The values-oriented shopper is a really important and valuable shopper,” Peters of SPINS noted, and according to Nutrition Business Journal, organic products are one of the last places consumers say they are willing to trade down to fight food inflation.
In a Chicago Tribune feature article published on April 3, 2023, Tonya Lofgren, Marketing Manager of Ciranda, a leading organic ingredient supplier based in Hudson, WI, said, “What’s cool about the natural and organic shopper is that if they value that, they’ll prioritize it over other ways to adjust spending because they realize how important it is.” Ciranda CEO Doug Audette added, “We are seeing consumers rationalizing their spending decisions. Overall, that has tempered the growth in organic. But we see no letting up in the long-term growth of organic, sustainable and fair-trade ingredients.”
In a March 2023 organic market report, USDA reported that, after a surge in pantry stocking pushed sales to record heights in 2020, organic food sales declined for the first time in decades in 2021 on an inflation-adjusted basis. However, “more than 15 million new customers entered the organic and natural foods market between early March and mid-April 2020,” USDA said. Time will tell if these consumers stick with organic.
According to USDA’s market report, organic consumers are diverse in terms of race, ethnicity, education, and income, though millennials purchase organic food at larger rates than other generations. Households with children are also more likely to purchase organic food than households without children, USDA noted.
Yet, challenging new and dedicated organic consumers alike is the fact that organic foods are seeing some of the steepest price hikes amid stubbornly high food inflation. Prices for organic fruit and vegetables rose 13.1% over the past year, compared with just under 10% for conventional produce, according to a February 2023 analysis of USDA retail pricing data by Lending Tree.
Among all the food groups included in Lending Tree’s analysis, organic chicken prices increased the most, at 19.5%. “That's more than three times the price jump for conventionally raised chicken, which rose 5.9% over the last year, the report shows. For households already struggling with the nation's worst bout of inflation in 40 years, such spikes could force many consumers to opt for nonorganic options instead,” CBS News reported.
Sales data for 2022 show organic fruits and vegetables growing in revenue but declining in sale volume, according to the Organic Produce Network. However, that’s a common theme across the food industry as consumers pay more for less in the face of heavy inflation, the Chicago Tribune noted.
According to the Tribune, a quarter of consumers surveyed by Nutrition Business Journal over the past year said they’re unlikely to stop buying organic produce, packaged food and meat to save money on groceries. Fewer than half of respondents said they are likely to cut those products out.
Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media, and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We Are for Better Alternatives. Contact steve@compassnaturalmarketing.com.