Posted on: Wednesday, April 13, 2005
Organic stamp is a plus for local products
| • | It's inspected and certified |
| • | How to get organic certification |
By Catherine E. Toth
Advertiser Staff Writer
It can be complicated, challenging and costly.
Photos by Bruce Asato • The Honolulu Advertiser Phone: (808) 969-7789; toll-free (877) 674-4632 E-mail: hofa@hawaiiorganicfarmers.org Web site: www.hawaiiorganicfarmers.org Since its introduction two years ago, the certified organic coffee line now makes up 20 percent of the company's annual sales. And it's growing 20 percent every year.
"Being certified (organic), consumers know what they're getting," said company president Jim Wayman. "It's been, so far, very good."
Nationally, organic produce is one of the fastest-growing markets in the food industry, increasing more than 20 percent annually for a decade. And Hawaii Coffee Co. is just one of many local businesses that are capitalizing on the popularity of organic foods and products.
There are 119 certified organic farms and businesses in Hawai'i, up from 70 in 2002, according to the Hawaii Organic Farmers Association, the state's only organic accrediting agency. Conventional farms are converting to organic. Mainland farmers are buying local farms. And consumer demand for all things organic is increasing.
That demand has spurred growth in related non-farm businesses, including companies that process and handle organic produce. Hawai'i businesses now sell a variety of certified organic products including honey, tofu, even noni leather.
"(The industry is) really growing; it's only getting bigger," said Bari Green, HOFA's educational program director.
For Hawai'i farmers, organic produce has become an opportunity to expand into Asia and Europe, where their noni, 'awa and coffee are in high demand. With the organic label, the products can be sold at a premium.
"Prices tend to be ... about 5 to 10 percent higher, depending on the product," Green said.
But to be certified organic isn't easy.
Hawaii Coffee Co. has to keep organic coffee beans separate from the others, follow strict storing and cleaning procedures, and dedicate full days to the roasting of the organic beans. Nothing unnatural can come into contact with the beans during the whole process, from growing to harvesting to packaging.
All this stalls production of their other coffees and it costs the company money. But Wayman isn't complaining.
"It's worth it, very much," he said. "This is more than just a niche, it's mainstream. ... And when this market matures, we want to have been a long-term player."
New U.S. Department of Agriculture standards for organic food — which exclude irradiation and the use of genetically engineered crops and sewage sludge — went into effect in October 2002. A product must be at least 95 percent organic to bear the organic label; those that are 70 percent to 95 percent organic can say "made with organic ingredients" but can't display the official seal.
The federal standards are high, according to Green, who said: "For consumers, this is great. It needed to happen. I think the farms are the ones struggling with it; they're the ones having a hard time. But as a consumer, it's the most secure, safest way to know what you're getting."
Nationally, the annual accreditation fee can cost from $250 to $5,000 depending on the size of the company. HOFA, which is accredited to certify livestock, crops and processing/handling, charges between $375 and $3,000, depending on the size of the farm or business.
Experts worry that the tough accreditation process may scare away small-business owners, who either can't afford the cost to go organic or don't understand the procedures. It may cause some to use the term "organic" anyway, without proper certification for it. And that will eventually hurt consumers.
"We haven't had anyone abuse it yet," Green said, "but the potential is there."
The abuse or misuse of the term "organic" has prompted farmers and business owners nationwide to use more specific terms to describe their organic products such as "sustainable," "no-spray," "naturally grown" and even "beyond organic."
At Down To Earth Natural Foods & Lifestyle, about 80 percent of the products have organic ingredients in them. And most of its locally grown produce — popular with consumers — are certified organic.
"You don't really know unless it's certified organic," said April Cockrell, community outreach director for Down To Earth, which sells Hawai'i-made certified organic noni juices and honey. "If our produce is not certified organic, we don't allow it to be called 'organic.' "
Reach Catherine E. Toth at 535-8103 or ctoth@honoluluadvertiser.com.
But for Hawaii Coffee Co. Inc., the parent company of Lion Coffee, producing organically grown coffee is worth the investment.
Top: Lion organic coffee makes up 20 percent of company's sales. Above: Coffee company president Jim Wayman says that even if rules are strict, the organic line is "very much" worth the extra cost.
Hawaii Organic Farmers Association
| It's inspected and certified
The rule: According to the U.S. Department of Agriculture's National Organic Program Federal Organic Rule, all operations claiming to be organic and with annual gross sales of organic products exceeding $5,000 are required to be inspected and certified by an accredited agency. Producers grossing less than $5,000 annually fall under the small farmer exemption in the federal rule and may use a notarized affidavit system to sell product as organic, provided that all sales are direct-to-retail only. The process: Organic certification must be renewed annually. According to the USDA, there are 56 accredited certifying agencies nationwide — 41 foreign — that can issue certification. In Hawai'i, the only accredited agency is the Hawaii Organic Farmers Association in Hilo. The cost: Certification fees may vary depending on a farm's gross sales of organic products. With HOFA, the fee for a farm with annual gross sales less than $70,000 is $375. Once certified, the annual renewal costs are $375 for small farms, which represent 95 percent of farms in Hawai'i. Farms grossing more than $70,000 a year are charged 0.25 percent of their gross sales in addition to a base fee but not more than $3,000. The benefit: "You're opening yourself up to a whole new marketplace," said Bari Green, HOFA's educational program director. "You get a premium for your product. People say the combination of 'Hawai'i' and 'organic' is just a buzzword. People just eat that up. Being organic has helped people sell their products." — Catherine E. Toth |
| How to get organic certification
1. Request a certification application packet from the certifying agency. The Hawaii Organic Farmers Association charges $75, which includes a one-year membership to the organization. 2. Review the application and fill out the form, including the producer's affirmation statement. The application requests detailed information about growing practices, including pest, disease and fertilization strategies, land-use history and a detailed map of the operation. The certification fee must be paid when the application is submitted. 3. Send the completed application with certification fee to the certifying agency. A certification number will be assigned to the farm. That number will remain the same throughout the duration of the farm's organic certification history. This may take six to eight weeks. 5. Answer questions from the inspector during an interview process. The completed inspection report, including the exit interview, is then submitted to the certifying agency for evaluation. 6. Wait for the certifying agency to review the inspector decision. 7. Receive notification of the decision. If there are no additional conditions to be met, a Certificate of Organic Certification is issued along with a copy of the inspection report. The producer may now market products as certified organic. All labels declaring products as organic must comply with the National Organic Program and be approved by the certifying agency. Source: Hawaii Organic Farmers Association |
. Await the inspector. If the farm appears to be in compliance in the application, an inspector will come to inspect the farm. At this time the producer can withdraw his/her application if the farm does not meet organic standards. Withdrawal of an application during the inspection process will result in a refund of the certification fees minus $200 for inspection and administrative costs.