cash, crops, chemicals and cosmetics: a midmid-mid-green ......cash, crops, chemicals and cosmetics:...

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Cash, Crops, Chemicals and Cosmetics: A Cash, Crops, Chemicals and Cosmetics: A MidMid--Green EcoGreen Eco--labeling Approachlabeling Approach

Cash, Crops, Chemicals and Cosmetics: A Cash, Crops, Chemicals and Cosmetics: A MidMid--Green EcoGreen Eco--labeling Approachlabeling Approach

Levin College of LawLevin College of Law1313thth Annual Conference on Legal & Policy Issues Annual Conference on Legal & Policy Issues

in the Americasin the AmericasBuenos Aires, ArgentinaBuenos Aires, Argentina

Michael T. Olexa, Ph.D., J.D.Food and Resource

Economics Department

OutlineOutlineI Issue

Cash, Crops, Chemicals and Cosmetics: A Mid-green Eco-labeling Approach

I. IssueII. Definitions

A. Grade StandardsB. Mid-greenC. Eco-labeling

III. Grade StandardsA B i f Hi tA. Brief HistoryB. UseC. BenefitsD. Risks

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OutlineOutlineIV C ti


IV. CosmeticsV. Markets

A. “Eco-labeled” Niche MarketsBenefits

VI. ChallengesA. MycotoxinsySolution

B. Producer BrandingSolution

VII. Conclusion

I. IssueI. Issue


Cosmetically-driven grade standards encourage high pesticide and fertilizer use. Lowering these grade standards can reduce the use of these agriculture chemicals and open new “greengreen” commodity niche markets of benefit to the

Cosmetically-driven grade standards encourage high pesticide and fertilizer use. Lowering these grade standards can reduce the use of these agriculture chemicals and open new “greengreen” commodity niche markets of benefit to the environment, consumers, and producers.environment, consumers, and producers.

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II. DefinitionsII. Definitions


A. Grade Standards: Standards to uniformly characterize the quality and condition of agricultural commodities.Grade standards emphasize produce attributes such as surface defects, shape and size.

A. Grade Standards: Standards to uniformly characterize the quality and condition of agricultural commodities.Grade standards emphasize produce attributes such as surface defects, shape and size.Grade standards are promulgated by the United States Department of Agriculture’s Agricultural Marketing Service.

Grade standards are promulgated by the United States Department of Agriculture’s Agricultural Marketing Service.

II. Definitions, continuedII. Definitions, continued


B. Mid-Green: Commodities grown with minimal application of agricultural chemicals that fit into a median price range between higher priced organics and lower priced traditionally grown commodities.

B. Mid-Green: Commodities grown with minimal application of agricultural chemicals that fit into a median price range between higher priced organics and lower priced traditionally grown commodities.

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II. Definitions, continuedII. Definitions, continued

C. Eco-labeling: Labeled fruits and vegetables that emphasize:Pesticide applications reduced only to those necessary to protect human health and safety.Fertilizer and pesticide applications kept

C. Eco-labeling: Labeled fruits and vegetables that emphasize:Pesticide applications reduced only to those necessary to protect human health and safety.Fertilizer and pesticide applications kept p pp pbelow a threshold sufficient to prevent environmental contamination.No agricultural chemicals applied solely for cosmetic purposes.

p pp pbelow a threshold sufficient to prevent environmental contamination.No agricultural chemicals applied solely for cosmetic purposes.


III. Grade StandardsIII. Grade Standards

A.A. Brief HistoryBrief History1912: Federal government entered the field of agricultural commodity grading.Sulzer Law: established standard apple barrel

dimensions and grades for barreled apples.

1915: USDA issued marketing reports on

A.A. Brief HistoryBrief History1912: Federal government entered the field of agricultural commodity grading.Sulzer Law: established standard apple barrel

dimensions and grades for barreled apples.

1915: USDA issued marketing reports on the price and movement of agricultural commodities.Furthered the need for a nation-wide

communication of commodity quality.

the price and movement of agricultural commodities.Furthered the need for a nation-wide

communication of commodity quality.

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III. Grade Standards, continuedIII. Grade Standards, continued

A.A. Brief HistoryBrief History1917: U.S. Congress passed the Food Production Act Authorized the USDA to implement national

grading and inspection standards for fresh fruits and vegetables.

1946: Agricultural Marketing Act (AMA)

A.A. Brief HistoryBrief History1917: U.S. Congress passed the Food Production Act Authorized the USDA to implement national

grading and inspection standards for fresh fruits and vegetables.

1946: Agricultural Marketing Act (AMA)g g ( )AMA § 203 ( c ) authorized the Secretary of

Agriculture “…to develop and improve standards of quality, condition, quantity, grade and packaging, and demonstrate such standards in order to encourage uniformity and consistency in commercial practices.”

g g ( )AMA § 203 ( c ) authorized the Secretary of

Agriculture “…to develop and improve standards of quality, condition, quantity, grade and packaging, and demonstrate such standards in order to encourage uniformity and consistency in commercial practices.”



B.B. USEUSEGrading is typically voluntary. Mandatory when:UFederal marketing orders have established

minimum grades.UStandards are referenced in contracts for sale of

commodities

B.B. USEUSEGrading is typically voluntary. Mandatory when:UFederal marketing orders have established

minimum grades.UStandards are referenced in contracts for sale of

commoditiescommodities.commodities.

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C.C. BenefitsBenefitsGrading is convenient and reliable for sellers to communicate to buyers the quality of the bargained-for commodities in contracts.Allows for standardization of equipment used to package, process and ship commodities.Brand identification

C.C. BenefitsBenefitsGrading is convenient and reliable for sellers to communicate to buyers the quality of the bargained-for commodities in contracts.Allows for standardization of equipment used to package, process and ship commodities.Brand identificationBrand identification.Brand identification.



D.D. RisksRisksOveruse of fertilizers and pesticidesFertilizersUEnvironmental contamination

PesticidesUEnvironmental contamination

D.D. RisksRisksOveruse of fertilizers and pesticidesFertilizersUEnvironmental contamination

PesticidesUEnvironmental contaminationUFarm work injuryUPesticide residues on food.UFarm work injuryUPesticide residues on food.

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IV. CosmeticsIV. Cosmetics

Standards specify the required physical attributes and defects permitted for each graded commodity.

Currently the USDA lists 154 grade standards for fresh fruits, vegetables, nuts, and specialty crops.

Standards specify the required physical attributes and defects permitted for each graded commodity.

Currently the USDA lists 154 grade standards for fresh fruits, vegetables, nuts, and specialty crops.


IV. Cosmetics, continuedIV. Cosmetics, continued

Grade standards overwhelmingly emphasize cosmetic attributes and largely disregard pesticide and fertilizer use.

Commodity producers are incentivized to apply high levels of pesticides and fertilizers to assure an appealing and sizable commodity.UCosmetic attributes result in supermarket

Grade standards overwhelmingly emphasize cosmetic attributes and largely disregard pesticide and fertilizer use.

Commodity producers are incentivized to apply high levels of pesticides and fertilizers to assure an appealing and sizable commodity.UCosmetic attributes result in supermarket UCosmetic attributes result in supermarket

shelves lined with perfectly formed and colored produce with minimal blemishes and variation.

UCosmetic attributes result in supermarket shelves lined with perfectly formed and colored produce with minimal blemishes and variation.

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V. MarketsV. Markets

A. “Eco-labeled” Niche Markets - BenefitsAffordable alternative to higher priced organic commodities.Commodities grown with minimal chemical

applications could provide a median price range between organic and traditionally produced commodities

A. “Eco-labeled” Niche Markets - BenefitsAffordable alternative to higher priced organic commodities.Commodities grown with minimal chemical

applications could provide a median price range between organic and traditionally produced commoditiesproduced commodities.produced commodities.

POINT: A “mid-green” niche market approach.


V. Markets, continuedV. Markets, continued

A. “Eco-labeled” Niche Markets - BenefitsFertilizer application.Kept below a threshold sufficient to prevent

environmental contamination.Increase producer profits by decreasing

production costs.

A. “Eco-labeled” Niche Markets - BenefitsFertilizer application.Kept below a threshold sufficient to prevent

environmental contamination.Increase producer profits by decreasing

production costs.

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V. Markets, continuedV. Markets, continued

A. “Eco-labeled” Niche Markets - BenefitsPesticide application.Kept below a threshold sufficient to prevent

environmental contamination.Farm labor safety.Reduction of pesticide residues on food.

A. “Eco-labeled” Niche Markets - BenefitsPesticide application.Kept below a threshold sufficient to prevent

environmental contamination.Farm labor safety.Reduction of pesticide residues on food.Increased producer profits by decreasing

production costs.Increased producer profits by decreasing

production costs.


VI. ChallengesVI. Challenges

A. MycotoxinsMycotoxins: Metabolites produced by certain fungi infesting agricultural commodities.

A. MycotoxinsMycotoxins: Metabolites produced by certain fungi infesting agricultural commodities.

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VI. Challenges, continuedVI. Challenges, continued

A. MycotoxinsAt Issue:Mycotoxicosis: Mycotoxin poisoning resulting

from dietary exposure.

A. MycotoxinsAt Issue:Mycotoxicosis: Mycotoxin poisoning resulting

from dietary exposure.

EXAMPLE: Aflatoxin – the most potent naturally EXAMPLE: Aflatoxin the most potent naturally occurring carcinogen scientists have identified.



A. MycotoxinsSolution:Any move to readjust grade standards should

begin by establishing the level at which mycotoxin infestation will be sufficiently controlled to protect human health.

A. MycotoxinsSolution:Any move to readjust grade standards should

begin by establishing the level at which mycotoxin infestation will be sufficiently controlled to protect human health.

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B. Producer BrandingBranding:“Name, term, design, symbol or any other

feature that identifies one seller’s good or service as distinct from those of other sellers”.

B. Producer BrandingBranding:“Name, term, design, symbol or any other

feature that identifies one seller’s good or service as distinct from those of other sellers”.

American Marketing Association



B. Producer BrandingAt Issue:Producer refusal to abandon the use of

cosmetics as a means of branding. Solution: Green branding education

Consumer preference for commodities treated with fewer agricultural chemicals

k t i h

B. Producer BrandingAt Issue:Producer refusal to abandon the use of

cosmetics as a means of branding. Solution: Green branding education

Consumer preference for commodities treated with fewer agricultural chemicals

k t i hopens new market niches.opens new market niches.

EXAMPLE: Organic markets.

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B. Producer BrandingOrganic Markets:Global organic sales: Nearing 60 billion

dollars annually and growing.Over 31 million hectares in production

worldwide.U.S. 2011: Total organic sales increased

B. Producer BrandingOrganic Markets:Global organic sales: Nearing 60 billion

dollars annually and growing.Over 31 million hectares in production

worldwide.U.S. 2011: Total organic sales increased g

between 15 and 20 percent.g

between 15 and 20 percent.

CONCLUSION


cash, crops, chemicals and cosmetics: a midmid-mid-green ......cash, crops, chemicals and cosmetics:...

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