eOrganic author:
Jim Riddle, University of Minnesota
Organic Marketplace
According to the USDA Economic Research Service (ERS), consumer demand for organic milk has burgeoned in recent years, resulting in rapid growth in retail sales of organic milk. The ERS reports that U.S. retail sales of organic milk have been growing since the mid-1990s, with sales of organic milk and cream edging over $1 billion in 2005, up 25 percent from 2004. At the same time, overall sales of milk have remained constant since the mid-1980s, and organic milk and cream now make up an estimated 6 percent of retail milk sales (Dimitri and Venezia, 2007).
More recently, Nielsen Label Trends found that "refrigerated organic milk sold in food, drug, and mass outlets for the 52-week period ended Oct. 6, 2007 increased 20.4 percent, on top of a whopping 32.3 percent surge last year, while during the same period, unit volume grew 18.5 percent, after jumping 23.8 percent in 2006" (Goldschmidt, 2008).
Likewise, markets for organic meat are expanding rapidly. Organic meat sales in the United States increased by 51% in 2005, with the highest growth reported in the organic beef market, according to recent market survey data (Organic Monitor, 2006).
In order to be sold in the United States as "organic," all agricultural products, including domestic and imported livestock products, must comply with Federal regulations. The United States Department of Agriculture (USDA) regulates the production and labeling of "organic" livestock and livestock products under the Organic Foods Production Act of 1990 and the National Organic Program (NOP), Section 7 of the Code of Federal Regulations (CFR), Part 205, which is also known as the "NOP Final Rule" (USDA, 2000).
Regulations
This section explains the regulations for the production and labeling of livestock and dairy products as “organic” in the United States. In short, all organic livestock operations that sell over $5000/year of organic products, and those who wish to sell their products to be used as organic ingredients or organic feed by others, must be certified by a USDA-accredited certifying agent. Dairy animals must be fed and managed organically for at least one year prior to the production of organic milk. Slaughter animals must be managed organically from the last third of gestation, or from the second day after hatching for poultry. Feed must be 100% organic. All livestock must have access to the outdoors, and ruminants must have access to pasture during the growing season. Organic livestock producers must establish preventative livestock health management practices. Medical treatment cannot be withheld from sick animals to maintain the animals' organic status. The use of growth hormones, antibiotics, genetic engineering, and cloning is prohibited, as is the feeding of slaughter by-products. All organic livestock production and processing operations must be certified by USDA-accredited certification agencies. Detailed records of all feeds, medications, and transactions must be maintained. Organic integrity must be protected by preventing organic livestock and livestock products from coming in contact with prohibited substances or being commingled with non-organic products.
Definitions
Organic Production: The Final Rule defines "organic production" as "a production system that is managed ... to respond to site-specific conditions by integrating cultural, biological, and mechanical practices that foster cycling of resources, promote ecological balance, and conserve biodiversity." (CFR Section 7, Part 205, NOP Regulatory Text). This means that, in order to be certified for organic production of livestock or dairy, producers must use cultural, biological, and/or mechanical practices and employ ecological principles, such as conservation practices and recycling of resources.
Livestock: Under the Final Rule, "livestock" are defined as "any cattle, sheep, goat, swine, poultry, or equine animals used for the production of food, fiber, feed, or other agricultural-based consumer products; wild or domesticated game; or other non-plant life, except such term shall not include aquatic animals and bees for the production of food, fiber, feed, or other agricultural-based consumer products," (CFR Section 7, Part 205, NOP Regulatory Text).
Pasture: is defined as "land used for livestock grazing that is managed to provide feed value and maintain or improve soil, water, and vegetative resources," (CFR Section 7, Part 205, NOP Regulatory Text).
Conversion of Animals to Organic Production
In order to be sold as organic, §205.236 requires that all animals, except for poultry, dairy, and stock used exclusively for breeding, must be under continuous organic management from the last third of gestation prior to the animal's birth. Poultry or edible poultry products must be from poultry that has been under continuous organic management beginning no later than the second day after hatching.
Dairy Regulations
Organic milk or milk products must be from animals that have been under continuous organic management for at least one year prior to the production of the milk or milk products. A one-time feed exemption for whole herds that newly transition to organic production allows the transitioning cows to be fed crops and forage from land included in the farm's organic system plan during the third year of transition. The crops and forage must be grown on land that has been free of prohibited substances for at least 24 months prior to harvest of the feed. These "third-year transitional" crops and forage may be consumed by the dairy animals on the farm during the 12-month period immediately prior to the sale of organic milk and milk products. Under this provision, an existing dairy farm can be converted to organic production in 3 years, with the land and animals simultaneously eligible for certification.
Once a herd is converted, all future dairy production animals must originate from animals that were managed organically from at least the last third of gestation. The animals must be fed and managed organically at all times in order to produce organic milk.
Conclusion
The NOP final rule contains detailed requirements for the production and labeling of "organic" livestock and livestock products in the United States. All organic livestock operations that sell over $5000/year of organic products, and those who wish to sell their products to be used as organic ingredients or feed by others, must be certified by a USDA-accredited certifying agent. Livestock and crop producers who receive organic certification are rewarded by identification of their products as "organic" and are able to participate in this fast-growing market.
Acknowledgements
The author would like to thank Harriet Behar, Midwest Organic and Sustainable Education Service; Nicole Dehne, Vermont Organic Farmers; Emily Brown Rosen, Pennsylvania Certified Organic; and Joyce Ford, Organic Independents, for their contributions to this article.
References and Citations
- Agricultural Marketing Service—National Organic Program [Online]. United States Department of Agriculture. Available at: www.ams.usda.gov/nop/ (verified 20 March 2010).
- United States Department of Agriculture. 2000. National organic program: Final rule. Codified at 7 C.F.R., part 205. (Available online at: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=5a8dc602e6a7f29825c884f2a0f3c653&rgn=div5&view=text&node=7:3.1.1.9.31&idno=7) (verified 20 March 2010).
- Dimitri, C. and K. M. Venezia. 2007. Retail and consumer aspects of the organic milk market, Outlook report No. LDPM-155-01 [Online]. Economic Research Service. United States Department of Agriculture. Available at: http://www.ers.usda.gov/publications/LDP/2007/05May/LDPM15501/ (verified 20 March 2010).
- Goldschmidt, B. 2008. Cow cash [Online]. Progressive Grocer. Niesel Business Media. Available at: http://www.progressivegrocer.com/progressivegrocer/esearch/article_display.jsp?vnu_content_id=1003690104 (verified 20 March 2010).
- Organic Monitor. 2006. The North American market for organic meat products, 2nd Ed., #3002-44. 2006. (Available online at: http://www.organicmonitor.com/300244.htm) (verified 20 March 2010).
Note: This article, dated January 5, 2008, incorporates changes to the NOP regulation made by the USDA in a Federal Register notice published December 12, 2007, and replaces all previous versions by the author.
This is an eOrganic article and was reviewed for compliance with National Organic Program regulations by members of the eOrganic community. Always check with your organic certification agency before adopting new practices or using new materials. For more information, refer to eOrganic's articles on organic certification.
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