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Organic Dairies Test Supply of Feed

Fri Dec 21, 2007 1:48 AM EST
health, feed, organic-feed
Shannon Dininny, Associated Press

nul

Jim Arvidson explains that he sees a lot more weeds like these on his hay farm because of his organic growing methods in Sunnyside, Wash., Tuesday, June 5, 2007. It comes as no surprise to anyone that the number of organic farms is booming to meet consumer demand for healthy food. In Washington, a state known more for its apples than any other crop, there are 45 organic dairies. (AP Photo/Jackie Johnston)

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YAKIMA — It comes as no surprise to anyone that the number of organic farms is booming to meet consumer demand for healthy food. In Washington, a state known more for its apples than any other crop, there are 45 organic dairies. Five years ago, there were just two.

The challenge has been feeding all of those cows.

Acreage of organic forage, such as hay and alfalfa, has grown 40 percent in the past two years, yet isn't keeping pace with demand. In particular, high-protein crops like soybeans that are necessary feed for dairy cows are in short supply in some regions, forcing some companies to import them from as far away as China.

Given the recent problems with food and ingredient imports from China, in which a slew of products have been turned away by U.S. inspectors amid claims they are tainted, one might wonder if organic feed is actually organic.

"That's a legitimate concern. We do have organic standards, which apply even to producers overseas if they want certification," said Bill Freese, the Center for Food Safety's science policy analyst in Washington D.C. "But I think the oversight of organic standards to be sure there's compliance is generally better in the United States than overseas."

Organic products are grown without pesticides, fertilizer, hormones or antibiotics. They make up only a small slice, about 3 percent, of the nation's food market, but increasing demand is pushing more farmers to make the switch in hopes of higher returns.

Dairy farmers are no exception. Demand for consumer organic dairy products has grown by more than 20 percent each year, a trend that is expected to continue at least in the near term.

The federal government also encouraged conventional dairy farmers to convert to organic operations by easing organic certification to reduce feed costs. Under a federal rule, the farmers could feed their cows 20 percent conventional feed, which is less expensive, in the first nine months of operation. However, the rule expires June 9, and dairies across the country made the switch to beat the clock.

"So many people came on board at once, and the system didn't know they were all going to go on board," said Lynn Clarkson, board member of the national Organic Trade Association and president of Clarkson Grain Co. in Cerro Gordo, Ill. "You have to start with feed a year ahead of time or you're not going to have it."

Clarkson estimated that demand for organic feed is growing 20 percent each year, while U.S. production of organic row crops, such as corn and other feed, is growing only by as much as 4 percent.

Add in the "ethanol tsunami" that is encouraging more farmers to grow corn for biofuel rather than feed, he said, and the shortage could continue for organic growers "for a long time."

Shannon Andrews, a Portland, Ore., feed ingredient trader for San Francisco-based agricultural commodities distributor Wilbur-Ellis Co., said she, too, can't meet demand.

"I have customers that are looking for six railcars a month of corn, and I can't get that quantity coming from anywhere in the U.S.," she said, adding that the harder-to-find, high-protein feed is coming from China and other countries because "it's where you can get it."

Imports from China have come under increasing scrutiny amid a series of scandals concerning tainted or unsafe food, medicines and other Chinese exports. Products that have been banned or turned away by U.S. inspectors include wheat gluten tainted with the chemical melamine that has been blamed for dog and cat deaths in North America, and monkfish that turned out to be toxic pufferfish.

Soybeans are among the highest protein crop for feed when ground into soymeal. The United States is the world's largest producer of soybeans. China is fourth, but is a net importer as well, much of it coming from the U.S. in the form of genetically-modified soybeans.

Wilbur-Ellis in Portland imports about 120 tons of organic soymeal from China each month, or roughly enough to feed 2,000 cows. But Andrews stressed the feed is tested and certified organic.

"Every single load that we do is tested up to FDA regulations. Every single container that comes in is tested," she said. "We don't have any worries on that."

Others raise questions about the viability of such tests when so many other unsafe products from China have slipped into the country.

"I think the concerns should be for real. You have to wonder what organic means in China. It's certified, but how credible is the process there?" asked David Granatstein, Washington State University sustainable agriculture specialist.

In the Northwest, shipping feed from the Pacific Rim can cost about the same as hauling it by freight from the Midwest.

Jay Gordon, a dairy farmer and executive director of the Washington Dairy Federation, believes more feed crops need to be planted to meet local demand. He grows sunflower, canola, and safflower on 700 acres in western Washington's Chehalis Valley to feed his 104 organic cows.

The price for conventional canola meal runs between $150 and $170 per ton, while organic prices can reach $480 per ton. Crop farmers should recognize the potential in organics, he said.

"There's a lot of dairies that have decided they would not be in the business if not for organic," Gordon said. "This is a nice niche that's fit well for dairy farming. We just have to go talk to our crop farmers."

Agriculture officials in Washington state have already taken notice. State officials held two seminars in the spring to encourage more farmers to become certified as organic growers, including Jim Arvidson, a hay grower in Sunnyside, Wash.

"You lose some production because of the lack of ability to use commercial fertilizer or maintain weeds the way I normally would," Arvidson said. But at the same time, he said, "There's probably a 25 percent, maybe 30 percent increase for the organic feed. It's good."

___

On the Web:

http://www.clarksongrain.com/

http://www.ota.com

http://www.wilbur-ellisfeed.com/

http://www.wadairyfederation.org/

© 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Published to:

  • Shannon Dininny's Column, All of Newsvine
  • Groups: Organic Life
  • Regions: United States , China , Yakima/Pasco/Richland/Kennewick
  • Public Discussion (4)
Pamela Drew

Soybeans are among the highest protein crop for feed when ground into soymeal. The United States is the world's largest producer of soybeans. China is fourth, but is a net importer as well, much of it coming from the U.S. in the form of genetically-modified soybeans.

Wilbur-Ellis in Portland imports about 120 tons of organic soymeal from China each month, or roughly enough to feed 2,000 cows. But Andrews stressed the feed is tested and certified organic.

That's efficient, export gmo soybeans to China and import organics, nice green energy policy!

  • 1 vote
Reply#1 - Mon Jan 28, 2008 3:34 AM EST
CuriousG

With the price of organic feed going through the roof, it won't take long for American feed companies to wake up and smell the $$. Of course, when they do, they'll probably try to change the rules cause it'll be hard for them comply with the NOP rules.

  • 1 vote
Reply#2 - Mon Jan 28, 2008 3:48 AM EST
Pamela Drew

I was just reading an article that I seeded about the gmo crops, specifically the move to plant the gmo sugar beets. It had a summary of the devastating effect on the prices for farmers...Why we even have these stupid things they only increase chemical sales, not one other blessed thing but private owner of the seeds and more herbicide sales..grrr

The American Corn Growers Association (ACGA) calculated that the introduction of GM corn caused a drop in corn prices by 13 to 20%.[8] Their CEO said, "The ACGA believes an explanation is owed to the thousands of American farmers who were told to trust this technology, yet now see their prices fall to historically low levels while other countries exploit US vulnerability and pick off our export customers one by one."[9] US soy sales also plummeted due to GM content.

When Canada became the only major producer to adopt GM canola in 1996, it led to a disaster there as well. The premium-paying EU market, which took about one-third of Canada's canola exports in 1994 and one-fourth in '95, stopped all imports from Canada by 1998. The GM canola was diverted to the low-priced Chinese market. Not only did Canadian canola prices fall to a record low,[10] Canada even lost their EU honey exports due to the GM pollen contamination. The Canadian NFU warns, "Closing markets and falling prices threaten to overwhelm any small, short-term economic benefits that GM crops or livestock may offer."[11]

Four major GM crops comprise 99.9% of GM acreage: soy, corn, cotton, and canola. All four have varieties engineered to survive applications of specific herbicides. For example, if you spray Monsanto's Roundup herbicide onto natural soybean plants, they die. But Monsanto's patented "Roundup Ready" soybeans survive. About 71% of all GM crops in the world are herbicide tolerant. The sugar beets planned for 2008 are Roundup Ready. Cotton and corn have also been engineered to produce a pesticide—called Bt-toxin—in every cell. About 18% of GM plants are Bt crops. Another 11% are engineered with both of these traits.

GM papaya is different. Genes are inserted into its DNA so the plant resists a disease called the ring-spot virus. Hawaiian farmers, politicians, and scientists succumbed to the bad-idea virus and introduced the papaya in 1997 hoping it would "save the industry." Japan, which had been consuming 60% of Hawaii's market, [12] shut its doors to the unwanted GM variety. The papaya price immediately dropped from $1.23 per kilo to just $.89, and has since fallen below 80 cents—well under production costs. The islands have lost half of their papaya farmers[13] and 28% of papaya acreage.[14] According to a 2006 article in The Honolulu Advertiser, "Hawaii papaya production sank to a more than 25-year low last year despite record demand among US consumers for the tropical fruit."[15] Non-GM papaya, however, consistently sells for more than the GM variety. Although the GM papaya is still on the market, other failures in the US— GM tomatoes and potatoes—have been removed.

GM crops not only close markets and plunge prices, they force governments to shell out huge sums. According to Charles Benbrook, PhD, former executive director of the National Academy of Sciences' Board on Agriculture, the US government payments to farmers are up by $3 to $5 billion annually due to GM crops.[16] He says growers have only been kept afloat by the huge jump in subsidies.[17]

Those farmers who stick with non-GM varieties are also penalized, as market prices drop across the board. If farmers want to keep their non-GM buyers, they typically have to spend more on GMO testing, buffer zones, and segregation systems including separate storage and shipping channels. Even then, they risk contamination and lost sales.

  • 1 vote
#2.1 - Mon Jan 28, 2008 4:46 AM EST
CuriousG

Another great find, thanks, Pamela.

Once again, this shows the futility of looking for a silver bullet in agriculture. The system is integrally linked and small shifts in one direction are having devastating effects in other unforeseen areas. At least unforeseen by the farmers on the downhill side of the equation. You know, where the proverbial stuff ends up?

Now if we can just find the right framing of these issues to counter the millions of dollars being spent by agribusiness to mislead and confuse the farmers and consumers.

I'm no economist, but I find this situation very interesting as we see individuals seeking to maximize their returns only to find themselves hurt as everyone increases production, forcing a drop in price and putting the farmer in a worse position than when he started. His income has dropped, but his expenses have increased and he's beholden to the GMO see companies to buy seed every year rather than plant a portion held back from this years crop.

There is no such thing as a (sustainable) free lunch.

  • 1 vote
#2.2 - Mon Jan 28, 2008 8:56 AM EST
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