Whole Foods Markets: Throwing Organic Farmers Under the Bus?

June 12th, 2015

Veteran Growers Shaken Down to Fund Grocer’s Marketing Program

PrintIncensed and insulted, five of the most respected and influential, veteran Certified Organic farmers in the nation have sent the CEO of Whole Foods Market a letter [Updated 6-23 with more signatures] calling the company’s new “Responsibly Grown” produce marketing scheme “onerous and expensive” and stating that it devalues the Certified Organic label.

The signatories come from California and Pennsylvania. They, along with many other growers around the country who felt unable to speak on the record for fear of risking their livelihoods as Whole Foods suppliers, express concern that the giant retailer is setting aside decades of partnership with farmers in building the organic movement to pursue an ill-advised, self-serving marketing program.

Their letter was addressed to the corporation’s Chief Executive Officer, John Mackey.

Whole Foods’ growth, with annual sales approaching $15 billion, has run into strong headwinds in the maturing marketplace for organic food. Same-store sales are flat and other retailers are gaining market share from a company that has long had a reputation for being top-quality, but expensive, earning the nickname “Whole Paycheck.” The iconic natural foods grocer has more than 400 stores.

One of the signatories, Tom Willey, of T&D Willey Farms, located in Madera, California, is a longtime Whole Foods supplier. “Intending to create a value-added image for the conventional produce on their shelves, Whole Foods is undermining the work my family and I have done, along with so many others in the organic farming movement, to create a Certified Organic ‘gold standard’ in terms of safe food production,” Willey said.

While devising a new labeling program that identifies fruits and vegetables as “Good,” “Better,” and “Best,” Whole Foods is asking the growers to pay for participating in the retailer’s verification program.

Another signatory to the letter, Jim Crawford, founder of New Morning Farm in Hustontown, Pennsylvania, said numerous growers reported that their cost to comply with Whole Foods’ new program ranges from $5,000 to $20,000. “That is not an inconsequential sum for medium-sized, established organic growers like myself. But this cost, and the added labor to administer the program, could be impossible for some smaller and new-entry farmers to absorb,” stated Crawford.

“I call this marketing model ‘Robin Hood in reverse’,” said Mark A. Kastel, Senior Farm Policy Analyst at The Cornucopia Institute. “Although their market capitalization has taken quite a hit recently, at over $14 billion Whole Foods remains one of the wealthiest grocers in the United States. In an effort to enhance their image, they are asking modestly scaled family farmers to pick up the tab for a program whose benefits will almost exclusively accrue to the corporation,” Kastel stated.

One of the most objectionable elements of the “Responsibly Grown” program, for farmers, is the company’s alleged attempt to devalue the importance of the Certified Organic label in terms of customer perception. Under the Whole Foods program, conventionally grown produce, treated with toxic agrochemicals, can be rated higher than Certified Organic produce, which is grown under strict, legally enforced compliance overseen by the USDA.

An example of this grievance is clearly illustrated in photos taken this spring at Whole Foods stores in California. The company was selling conventionally grown asparagus, imported from Mexico, at $4.99 per pound with signage identifying it as “Best.” 

asparagus 1

Simultaneously, the grocer was offering locally grown, Certified Organic asparagus for $7.99 per pound, which only garnered the stores’ lowest rating, “Good.”

asparagus 2

“Why would a customer pay three dollars more per pound for the Certified Organic asparagus when they could buy what a trusted retailer has labeled ‘Best’?” asked Kastel.

Because T&D Willey Farms has not yet complied with Whole Foods’ program, their produce is currently labeled “Unrated.” “I am most assuredly rated!” said Willey. “I have been Certified Organic for 28 years and my farm undergoes a rigorous annual physical inspection and auditing by CCOF, an independent certifier, accredited by the USDA. That’s a pretty high rating in my book.”

This is not the first time The Cornucopia Institute has referred to some of Whole Foods’ marketing tactics as “bait and switch.”

“Here is a business that touts their status as being the nation’s first national Certified Organic grocery chain,” Cornucopia’s Kastel explained. “In their marketing materials and signage they are constantly promoting their dedication to organic agriculture. But when you shop at their stores, you might notice that a high percentage of their offerings are not actually organic. Now the ‘Responsibly Grown’ program is attempting to put some of this conventional food on a pedestal higher than organic,” Kastel lamented.

Whole Foods has long been criticized by some in the organic movement for developing a proprietary meat department rating system, which predominately sells premium-priced conventional meat labeled as “natural.”

“The meat Whole Foods sells that is not Certified Organic was produced from livestock that were fed conventional feed, almost assuredly genetically modified, and, based on USDA research, likely contaminated with agrochemical residues,” Kastel added.

The Centers for Disease Control and Prevention reports that there are traces of 29 different pesticides in the average American’s body. Dr. Michael Crupain, Director of the Food Safety and Sustainability Center at Consumer Reports, states, “We’re exposed to a cocktail of chemicals from our food on a daily basis.”

Although the new Whole Foods rating system bans a selected list of synthetic pesticides, most toxic agrochemicals are still available for their conventional growers to use based on the company’s “Responsibly Grown” protocols.

For example, the USDA’s National Organic Program bans the use of antibiotics, sprayed on fruit trees to control the bacterial disease fireblight, in apple and pear orchards. The agency also bans the use of synthetic mold and sprout inhibitors, sprayed on the skins of potatoes after harvest. However, these materials can be used on fruits and vegetables that receive the “Best” rating under Whole Foods’ new approach.

“Undoubtedly, based on research, some of the produce that Whole Foods has rated ‘Best’ carries detectable levels of pesticides demonstrably higher than anything that would be found on Certified Organic produce,” added Kastel.

Tom Willey, who farms year-round in California’s San Joaquin Valley, added, “If Whole Foods truly is committed to the values they expound, nothing in their stores should be rated ‘Better’ or ‘Best’ unless it first passes muster under the strict regulations Congress designated when they passed the Organic Foods Production Act.”

Jim Crawford, of New Morning Farm, and Tom Willey, of T&D Willey Farms, were both recognized in a 2014 gathering, covered by the New York Times, of “Organic Elders” who founded the organic movement. Crawford thinks Whole Foods’ marketing program is unfairly burdensome and expensive for farmers, especially smaller-scale ones, but he says that’s not the worst aspect of it.

More harmful, he says, is the fact that the program deceives consumers in their perception of which foods deserve to be rated “Best.” “It’s a privately dreamed up, proprietary food-rating system directly contrasting and competing with a publicly created system, USDA Certified Organic, which was painstakingly developed over years and is administered rigorously and with verifiability.”

Crawford thinks it especially ironic that the private Whole Foods program is made to appear more demanding, more rigorous, and more restrictive than Certified Organic. “In reality, it is drastically more permissive, especially in the area of pesticide use, and not rigorous or verifiable at all in the way it’s administered,” Crawford said.

And, unlike within the USDA National Organic Program, farmers participating in Whole Foods’ labeling campaign are not subject to annual, on-site inspections or audits of the paper trail for their farm inputs and all sales to assure compliance. Nor could any detected malfeasance lead to large fines and other sanctions.

 

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