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in the Rocky Mountain New this month. ===============Boulder's organic

dairy firms at heart of USDA grazing fight By Fromartz July 8,

2006 You might have thought cows munching on knee-highgreen grass would

be common this time of summer,especially when it comes to organic dairy

farms.But a battle is now under way over this practice,the resolution of

which will seal the fate oforganic dairy farming in America. In the

fast-growing $2 billion organic dairy segment, several dairy farms with

upward of 5,000cows have emerged in Colorado, Texas andCalifornia that

stretch the limits of what anorganic farm should be. These farms

primarilyfeed animals organic grain, in dirt feedlots,rather than lush

pasture. That reduces the nutritional profile of the milk (since

grassyields higher beneficial fatty acids) and alsocan toy with the

bovine digestive system (sincethe animals evolved to eat grass, not

grain). But this regime also yields more milk, the rationale of the

confinement model. An organic agribusiness can pursue this approach

because USDA regulations only require that organic cows have " access to

pasture, " which is akin to requiring a gym membership without mandating

regular visits to the gym. If the couchpotato also happens to be a cow,

the salutary effect will be greater milk production - and more money.

Horizon Organic, a Boulder company now owned by Dean Foods - the largest

dairy company in the nation - pioneered this model on a 4,000-cow

operation in Idaho in the early 1990s. At the time, small organic dairy

farms could not produce enough milk to meet demand - the same case as

now. (Demand for organic milk exceeds supply by about 20 percent to 30

percent). Horizon'sfounders then left and started Aurora Organic,which

is also based in Boulder and has several thousand cows on properties in

Colorado and Texas. Although there are only a handful of these

large-scale farms, they account for about 20percent of the organic milk

market.In contrast, many small dairy farms, in the Upper Midwest,

Northeast and also out West, rely on pasture as an integral part of

their operations. This cuts feed costs when grass is plentiful.

Farmers also find pasture is healthier for the animals. The downside,

however, is lower production, since the cows burn calories walking out

to pasture rather than standing in front of a feed bin. These farmers

feel that pasture is integral to organic dairy farming, the purpose of

which is not to pump up output regardless of method (giant conventional

farms do that just fine with antibiotics and synthetic growth hormones).

Rather, the aim is to produce milk by avoiding such substances and

ensuring the ruminants can graze. Over the past several years, farmers

and advocates sought to close the " access to pasture " loophole by

demanding the USDA clearly define what it meant. They have now backed a

proposed regulation that would require all organic dairyfarms to reach a

defined grazing standard. They believe this would reduce the advantage

enjoyed by large-scale corporate farms, support the natural habits of a

cow and let organic consumers know what they are buying: milk from cows

that eat fresh grass. As criticism has mounted, Horizon Organic - the

No. 1 organic milk company - announced last year it would spend millions

to revamp its large-scale Idaho farm and increase pasture acreage,

showing that a big company can take steps to correct its admittedly

deficient model. It also backed the proposal for tougher pasture

regulations. But Aurora Organic, which sells " private label " organic

milk to supermarkets, has fought suchmeasures. It has argued that

mandating a set amount of pasture would be unhealthy for its cows in the

arid West. But it is also clear that such a move would wreak havoc with

its business. Since Aurora is backed by venture capital from Harvard

University, Harvard is in the strange position of funding a business

model that might one day undermine the future of smaller organic

dairyfarms in its own New England backyard. With comments on the

pasture regulation closed as of June 12, the decision of what to do now

rests with the -USDA's National Organic Program. History is not

terribly encouraging. In numerous instances, the office [sic. I think he

means theUSDA NOP when he refers to " office " ] has undermined or twisted

the most well-thought-out consensus decisions of consumer advocates,

farmers, retailers and others who advise the department on organic

regulations. Twice, in 1997 and in 2004, the USDA faced such a public

uproar over its decisions that it was forced into an embarrassing

about-face, reinstating rules it previously had thrown out or ignored.

Its decision on organic milk will thus stand as a litmus test for the

future of organic food regulations in the United States. With $14billion

in sales and the entry of Wal-Mart into the market, the stakes are high.

If the USDA doesnothing, it will be widely interpreted as a weakening of

the standards at the heart of the organic market. Consumers can expect

a proliferation of large-scale organic dairy farms out West for whom

pasture is only a picture on a milk carton. But if the USDA acts, it

will erect a barrier against those who would cheapen organic food in the

name of expediency. It will make certain that consumers are getting what

they pay for. It will also ensure - in the organic market at least -

that a cow munching fresh grass will not be a thing of the past.

Fromartz is author of the recentlypublished " Organic Inc.:

Natural Foods and HowThey Grew. " He can be reached at sam@....

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