AgWired

News From the world of Agribusiness
09.05.2008
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  • Organic Beef Supply Beefs Up

    Two U.S. organic beef producers are teaming up to expand the nation’s organic beef supply. CROPP Cooperative, North America’s largest farmer owned co-op, and Dakota Beef, the largest vertically integrated organic beef producer in the U.S., have partnered in a mutli-year agreement.

    Consumer demand for high quality organic beef has been exceptional and this partnership will ensure supply to an increasingly savvy and discerning organic consumer.

    While other beef companies are struggling to supply the market with increased demand as traditional retailers take organic beef “behind the counter” and offer more choice cuts, Dakota Beef is flush with cattle and prepared to meet demand. Innovative supply chain management and long term partnerships with certified organic beef producers make this possible. Looking forward, the partnership with Organic Prairie will ensure strong supply chain in the future, “We currently see more certified organic calves on feed than ever before and that bodes well for the demand that this consumer driven product is creating,” says David Wilcox, an organic cattle finisher from Madison, South Dakota. Ranchers are happy too, Mike Olson, a 1000 head organic rancher from Utah says, “The organic cattle industry seems likes it become streamlined and organized for the first time ever, which is great news for those of us who have stuck with it for so many years.”

    USAID reports Sweet Onion Success for Bolivian Farmers

    USAIDFarming isn’t just a national need, it’s an international need. That’s why the U.S. Agency for International Development is helping Bolivians meet their farming needs, while helping American consumers meet their need for sweet onions, chili peppers, peanuts and more.

    More than 150 tons of sweet onions are giving some Bolivian farmers a $340,000 harvest. The recent bountiful shipment to Los Angeles marked a three-year U.S. Agency for International Development effort to make Bolivian onion growers international competitors.

    The onions are cultivated more than 12,000 feet above sea level on land once considered unsuitable for traditional agriculture, says USAID’s Jorge Calvo, the program’s manager who views the high elevation as an advantage. The onions, along with a dozen other crops, are part of a USAID training program to improve Bolivian agriculture.

    Because the rarified atmosphere prevents pests and crop diseases from thriving, the onions are grown without chemical fertilizers and pesticides, earning a coveted organic label. Organic sweet onions are in big demand and command higher prices, he says.

    The agricultural program strives to make farmers prosperous by matching niche crops such as chili peppers, grapes, peanuts, peaches, raspberries, garlic and fava beans to Bolivia’s diverse topography and climate. Growers also apply the latest farming methods such as soil management, irrigation and mechanization in achieving year-round harvests, says Calvo.

    So far, it’s working. The agency’s $20 million investment in 2002 has generated more than $40 million in family earnings, boosting per capita income for the 40,000 participating households by almost 50 percent in a country where the average family exists on just $4,400 per year.

    Organic Scandal

    The Cornicopia InstituteA handful of the nation’s largest grocery retailers have been accused of organic fraud. Wal-Mart, Costco, Target, Safeway, and Wild Oats have been accused of selling organic milk that might not be so “organic.”

    The legal filings in federal courts in Seattle, Denver, and in Minneapolis, against the retailers, come on the heels of class action lawsuits against Aurora Dairy Corporation, based in Boulder, Colorado. The suits against Aurora and the grocery chains allege consumer fraud, negligence, and unjust enrichment concerning the sale of organic milk. This past April, Aurora officials received a notice from the USDA detailing multiple and “willful” violations of federal organic law that were found by federal investigators.

    “This is the largest scandal in the history of the organic industry,” said Mark Kastel of The Cornucopia Institute, a Wisconsin-based farm policy research group. Cornucopia’s own investigations in 2005 first alerted USDA of Aurora’s improprieties.

    Five lawsuits against the retailers have been filed so far. And law firms based in Seattle, St. Louis, New York and other cities have filed at least eight lawsuits against Aurora, representing plaintiffs in over 30 states.

    Aurora, with $100 million in annual sales, provides milk that is sold as organic and packaged as store-brand products for many of the nation’s biggest chains. Besides Wal-Mart, Target, Costco, and Safeway, Aurora serves as supplier to 15 other national and regional chains. (more…)

    Urban Farming gives Chicagoans Second Chance

    Growing Home Inc.Farming is hard, rewarding work and Growing Home Inc. is giving Chicagoans in search of a job a chance to reap the rewards of work in the field. But, this field will be farmed in the city.

    Hoop houses are erected on the site and collards, kale, mustard greens, salad mix and spinach are a good example of the crops that will be grown year round. Graduates from the job training program are working on site.

    Growing Home is a six-year old certified organic agricultural business with a social mission of providing transitional employment for homeless and low-income adults. Program participants are difficult-to-employ people, most of whom have criminal backgrounds. Growing Home also operates a 10-acre farm 75 miles southwest of Chicago at Marseilles, Illinois and a half-acre urban farm on the south side.

    In 2007, Growing Home harvested fifty crops (130 varieties) and four animal products — honey, worms, worm castings, and eggs and had sales of over $70,000. Growing Home’s current customers include some of Chicago’s most well-known restaurants: Bistro Campagne, Lula Cafe, Blackbird, First Slice Cafe, Green Zebra, North Pond, Soundings, and Vie.

    The U.S. organic sector is expected to grow from $13 billion in 2003 to over $25 billion in 2007. However, less than 3% of organic produce available in Chicago is grown locally.

    The Business of California Farming

    The Business of FarmingThe Futures Channel has produced a short movie on California agriculture. They’d love your feedback. Thanks to Jenna who’s in charge of their distribution for the alert to it. It’s meant to be an instructional video for classroom use.

    Do your students know where their food comes from? There are more than 350 different commodities grown in California, including rice, dairy, avocados, meat, strawberries, grapes and lots and lots of almonds. In a state that provides approximately 15 percent of the United States agriculture, statistics are an important tool that agricultural economists use in California to keep up with its supply and demand.

    It’s basically focused on the growth in “organic” acres.