Why are consumers willing to pay almost double for food labeled organic? The average consumer probably believes that the “USDA Organic” label issued by the U.S. Department of Agriculture implies the food comes from small local farms that use production techniques that are environmentally friendly and result in food that is better for human health. The Washington Post published an article recently about an organic farm that does not seem to be consistent with such perceptions. The High Plains dairy complex in Colorado, the main facility of Aurora Organic Dairy, has over 15,000 cows. In the organic dairy industry 87 percent of farms have less than 100 cows, but farms with 100 or more cows produce almost half of organic dairy products.
The Post article argues that these large dairy operations may be violating the USDA’s regulations for organic milk. Though Aurora officials maintain that they meet all the requirements for the USDA Organic label, the article contends that satellite images, visual inspections by Post reporters, and tests of milk from High Plains all indicate that the company may not be complying with the natural grazing standards of the organic regulations.
But the Post article misses the important point that even if Aurora were in technical compliance with the grazing regulation, the label does not convey any information about health and environmental benefits. As then-secretary of agriculture Dan Glickman stated at the release of the final standards for organic foods in 2002:
Let me be clear about one thing: the organic label is a marketing tool. It is not a statement about food safety. Nor is ‘organic’ a value judgment about nutrition or quality.