Veneman Marks Implementation of USDA National Organic Standards

10/21/2002

From: Alisa Harrison, 202-720-4623, or George Chartier, 202-720-8998, both of the USDA

WASHINGTON, Oct. 21 -- Agriculture Secretary Ann M. Veneman today launched the implementation of USDA's national organic standards for agricultural products providing consistent labeling on products coast to coast.

"Today, when consumers see the USDA national organic seal on products, they will know that the products labeled organic will be consistent across the country," said Veneman. "Organic agriculture is increasing and organic farmers across the country have been looking forward to the release of these regulations with anticipation they will create consumer confidence in their products."

Developed from extensive industry input and hundreds of thousands of public comments, the standards go into effect Oct. 21. As of today, any organic agricultural product must meet USDA standards in order to be sold as "organic." Along with the national organic standards, USDA developed strict labeling rules to help consumers know the exact organic content of the food they buy. Consumers can tell organically produced food from conventionally produced food by looking at package labels and watching for signs in the supermarket.

"We're very pleased with the work that USDA employees and the Organic Standards Board have done over the years to finalize these regulations," said Veneman. "Today, consumers will begin to see the results of these efforts."

The USDA Organic Seal tells consumers that a product is at least 95 percent organic. Products with 70-95 percent organic ingredients can say so on the label (made with organic fruit, for example), but they can't display the seal.

"The focus on consumer awareness is just beginning," said A.J. Yates, administrator of the USDA Agricultural Marketing Program. "To coincide with implementation of the standards, we have updated our website to make it more user-friendly and provide consumer information through a variety of avenues."

Consumers can access the information at http://www.ams.usda.gov/nop. In addition, USDA's Foreign Agricultural Service has also upgraded its organic website http://www.fas.usda.gov/agx/organics/organics, which provides information and resources to organic food and beverage exporters.

Other USDA efforts in the organic arena include an Economic Research Service report released last month, "Recent Growth Patterns in the U.S. Organic Foods Market," that indicates that U.S. organic farmland has increased from approximately 1.4 to 2.4 million acres. The report can be accessed at http://www.ers.usda.gov

USDA is administering a $5-million, national cost-share program to help defray the costs of certification incurred by organic producers and handlers in all 50 states, the U.S. territories, the District of Columbia, and Puerto Rico. This program expands the original cost-share program that covered only producers and included only 15 states.

USDA will also set aside $3 million per year for fiscal years 2003-2007 to administer competitive research grants, largely through the Cooperative State Research, Education, and Extension Service. The research will focus on determining desirable traits for organic commodities; identifying marketing and policy constraints on the expansion of organic agriculture; and conducting advanced research on organic farms, including production, marketing and socioeconomic research.

The organic industry is growing between 20 and 25 percent annually, and has been for the last several years. U.S. retail sales of organic foods reached approximately $7.8 billion in 2000, with global sales topping $17.5 billion.