Fixing the Organic Label

  • Mark Kastel, director of an industry watchdog group, says some so-called organic cows were being raised on factory farms instead of on pastures. (Photo courtesy of the USDA)

They cost more, but sales of organic foods are rising. Even in this down economy, organic food sales are going up 3-times faster than other foods. Julie Grant reports… that’s happening as the government is working to make sure everything that’s labeled organic actually is organic:

Transcript

They cost more, but sales of organic foods are rising. Even in this down economy, organic food sales are going up 3-times faster than other foods. Julie Grant reports… that’s happening as the government is working to make sure everything that’s labeled organic actually is organic.

Near where I live in Ohio, it costs more to buy a half-gallon of organic milk than it does to buy a whole gallon of regular milk. So, that circular green and white seal that says “USDA Organic” better mean something.

Mark Kastel is director of the Cornucopia Institute. It’s an organic industry watchdog group. He says over the past decade, more and more people are buying organic – and the market share has grown. So, big business has moved in to get a piece of the action.

Kastel says some so-called organic cows were being raised on factory farms instead of on pastures.

“You really can’t milk 2-thousand or 5-thousand or 7-thousand cows and move them back and forth every day to pasture to graze them every day as the organic law requires.”

Kastel says part of the problem with milk production was that the rules didn’t specifically state how long cows had to be out on pasture. So, some weren’t getting any time eating grass – and were still being certified organic.

Kastel was among those who complained to the folks at the USDA’s national organic program about this.

“Corporate investments in large factory farms that are gaming the system and creating the illusion of practicing organics.”

That’s one reason why the Cornucopia Institute requested an audit of the National Organic Program.

“We need the force of law to come down and make sure that the organic label still means something.”

The USDA has responded. It started an audit of the organic program last year. At the same time, the program got more money… and hired a new director.

Miles McAvoy has inspected hundreds of organic farms and is now in charge of the national organic program. His first order of business was to help with that audit of the program. It found a lot of problems. But McAvoy is glad it was done.

“Basically, the report to me is a roadmap. It really outlines a lot of the fundamental problems that the national organic program has had and so it enables us to focus on those areas that really need to be addressed right away.”

The audit found that the organic program wasn’t cracking down on producers that labeled their foods organic, even if they violated organic rules. It found that the program wasn’t processing complaints in a timely way, and it wasn’t doing a good job inspecting farms in foreign countries. That meant that products imported from China and elsewhere might have the organic label, but not have been inspected properly.

McAvoy says the program just didn’t have enough money before to do everything it was supposed to do.

“Given the resources that the program had at the time, they did the best job that they could…”

Until recently, the national organic program had only eight people on staff.

McAvoy plans to hire more than 20 this year. And his office has already addressed most of the issues from the audit.

Organic watchdog Mark Kastel is pleased with the direction of the program. He says even the issue of cow pasture has been resolved. Milk labeled organic must now come from cows that are allowed to graze at least 120 days each year.

Kastel says the problems have come from a few bad actors. He says people are willing to pay more for organics because they want to support certain types of farms:

“I think we’re in a position with the current administration in Washington where we’ll be able to make sure those promises are kept.”

So the USDA Certified Organic label does mean something when you’re handing over more money to make sure animals and the land are treated better.

For The Environment Report, I’m Julie Grant.

Related Links

Stimulus Dollars for Your House

  • A 1.4 ton geothermal heat pump unit at an elementary school. Stimulus credits did boost sales of geothermal systems – the most efficient systems out there. (Photo courtesy of the National Renewable Energy Laboratory)

The Cash for Clunkers program is
not the only government incentive
for energy efficiency. The stimulus
package has incentives to make homes
more energy efficient. Mark Brush
took a look into the bigger part of
the tax credits – new home heating
and cooling systems:

Transcript

The Cash for Clunkers program is
not the only government incentive
for energy efficiency. The stimulus
package has incentives to make homes
more energy efficient. Mark Brush
took a look into the bigger part of
the tax credits – new home heating
and cooling systems:

Homeowners can get 30% of the cost of a new heating or cooling system refunded on their taxes. For most systems the government caps the refund at $1,500.

Trade groups say the credits didn’t do much for air conditioning sales this summer. They say the types of air conditioning systems eligible for the credit are just too expensive.

But energy efficient furnaces cost a lot less – so trade groups do expect the tax credits to boost furnace sales.

Francis Dietz is with the Air Conditioning, Heating, and Refrigeration Institute. He says the credits did boost sales of geothermal systems – the most efficient systems out there.

“That was a bright spot. That is a 30% uncapped tax credit. So basically a homeowner who has a geothermal heat pump installed can get back, as a credit, 30% of the cost of that.”

That’s a big help – because geothermal systems can cost between $15,000 to $28,000 to install.


For The Environment Report, I’m Mark Brush.

Related Links

Interview: The Price of Cheap Goods

  • Ellen Ruppel Shell writes that we spend about 80% more in a discount environment. (Source: Urban at Wikimedia Commons)

In this recession, we are looking at money
differently. A bargain – getting things cheap –
has been the all-consuming goal. Ellen Ruppel Shell has written a new book entitled
‘Cheap: The High Cost of Discount Culture.’ The
Environment Report’s Lester Graham talked with
her:

Transcript

[Please note: the following transcript is for a shorter version of the interview. If you would like a complete transcript, please contact us.]

In this recession, we are looking at money
differently. A bargain – getting things cheap –
has been the all-consuming goal. Ellen Ruppel Shell has written a new book entitled
‘Cheap: The High Cost of Discount Culture.’ The
Environment Report’s Lester Graham talked with
her:

Lester Graham: Your book tells the story of how we came to value cheap, but, you know, my dad used to say, ‘cheap things aren’t good and good things aren’t cheap.’

Ellen Ruppel Shell: I think that retailers and multinationals have gone really far to make us not think like that. Your father insisted on value. You know, there’s an old Russian saying, ‘I’m too poor to be cheap.’ You know, this is something that people used to take for granted – we used to know that we got what we paid for. Now, how did this common wisdom get forgotten?

Graham: Most of the products we get, we throw away – because they are so cheap.
We don’t have to worry about the cost of repairing them, because we can simply replace them with something brand-new.

Shell: Absolutely, and, of course, that disposability has been marketed to us as a big advantage. And I’ve also gotten that comment from folks, ‘Well, you know, who cares? I’ll just throw it away. I don’t want something that lasts a long time. I want something new all the time.’ Our relationship with objects has really become distorted – I mean, the very idea that you would buy shoes knowing, almost as you leave the store, that they’re not going to last. And, studies show, that if you believe that, you don’t take care of them. It’s a self-fulfilling prophecy. You assume they’re going to fall apart.

Graham: Your book makes it sound as though we’re in a spiral, downward, in pursuit of cheap goods. Why do you make that argument?

Shell: Well, I think it’s a spiral we might, now, have the opportunity to pull ourselves out of. But, yes, I do think it’s a spiral – the idea that prices have to go lower and lower. And the reason for this, of course, is that since the 1970s, incomes in the United States have been essentially flat, controlling for inflation. And even going down somewhat, for most Americans. At the same time, three-quarters of our income goes to pay for fixed costs – those things we can’t live without – healthcare, education. So, what have these low priced goods done for us? Well, I argue, not a lot. It’s made tee-shirts, and shorts, and other things, maybe cheaper than ever before, but we have sacrificed – in terms of our wages, our job security, and our stability as an economy – as a consequence of these increasingly low prices, this incredible – what we used to call ‘predatory’ – pricing.

Graham: Many of us feel we can only afford ‘cheap.’ What are you suggesting we do?

Shell: My goal in writing this book was to get consumers to re-think why they shop in the first place. We spend about 80% more in a discount environment. And, then, we’re getting what we think are these amazing deals. And this triggers in our brain this kind of game-playing behavior – we want to make all these, you know, we want to win. Do we go to buy things that are going enhance our life and add value to our life? Or, is it a game-playing exercise? And I think most of us would say, rationally, well you know, look, ‘I go to purchase things that are going to enhance my life.’ And, if that’s the case, I think that you will actually spend less money, you will buy fewer things, and you’ll think harder about why you’re buying those things, and you’ll get precisely what you want at the price that’s going to work for you.

Graham: Ellen Ruppel Shell is the author of the book ‘Cheap: The High Cost of Discount Culture.’ Thanks very much for your time.

Shell: Thank you. It’s been fun.

Related Links

Pitching Diesels as an Eco-Friendly Option

  • VW's Jetta TDI - a diesel that the EPA estimates at 40 miles per gallon (Photo by Julie Grant)

If you’re thinking about buying a cleaner, more fuel-efficient
car, you might think a hybrid is your best option. But some
automakers want people to look at an older technology when
they’re looking for green cars: the diesel engine. Julie Grant
reports:

Transcript

If you’re thinking about buying a cleaner, more fuel-efficient
car, you might think a hybrid is your best option. But some
automakers want people to look at an older technology when
they’re looking for green cars: the diesel engine. Julie Grant
reports:

Lots of automakers make diesel cars – BMW, Ford, General
Motors, Volkswagen. But they sell most of them in Europe,
not the U.S. Diesel engines have a bad rap here.

Just ask Jerry Doble; he used to drive a diesel truck.

“They’re noisy and they’re smelly and they’re hard to start in
the winter. And that’s about it, I guess.”

But Doble hasn’t seen the new diesel cars making their way
from Europe.

Mike Omotoso is an auto industry analyst with JD Power and
Associates.

He says diesel carmakers have lowered their tailpipe
emissions. They’ve put in extensive filtering systems. Plus,
the fuel, itself, is cleaner than it used to be.
Diesel used to have lots of stinky sulfur – up to 500 parts per
million – now it has only 15 parts per million.

But Omotoso says when most Americans think of clean cars,
diesels aren’t the first thing that come to mind.

“When people think of clean vehicles they think of the Prius
first, and then they think of Toyota and they think of Honda
as well. The manufacturers, especially the German
manufacturers, are having to do a job catching up to the
positive publicity of hybrids. So they have to persuade the
American public that diesels can be clean as well.”

That’s why you may have seen those Volkswagen
commercials on TV – where one neighbor has a Prius, and
the other a new Jetta TDI-diesel:

VW: “A TDI set a Guiness World Record – 58 miles per
gallon.”

Prius owner: “58 miles per gallon!”

VW: “But this baby hauls. It’s like errr…errr… What does
your Prius sound like?”

Prius owner: (sound of quietly exhaling)

VW: “Oh. That’s cool.”

There’s a couple of things going on in that commercial.
It’s pushing the diesel as a green car. It’s also trying to
dispel the image of diesels being slow and clunky. They’re
trying to push diesels as green, muscle cars.

At this Volkswagen dealership, salesman Aaron Heinlein
says these commercials are having some success.

He says the only people who used to buy diesels worked
with the railways, in construction, or on farms. But this
week, he sold a TDI Jetta to a dietician.

“She would be the customer that, if she came in four years
ago, I would have said, ‘wow, you want to look at a diesel?
Cool, I’ll show you one.’ Now it’s just, that’s the norm. It’s
the lawyer, it’s the dentist, it’s the traveling salesperson who
is in their car a lot and needs better fuel mileage that you
wouldn’t have seen four years ago.”

Diesels cars still makeup less than 1% of the market.

Americans want power and speed and that’s not how they
think about diesel engines. Things are different in Europe,
where gas is upwards of $8 per gallon and consumers are
focused on good gas mileage.

Auto industry analysts are expecting to see a jump in diesel
sales in the U.S. in the next few years.

But JD Power and Associates doesn’t expect all this
marketing to make a huge dent in American car sales.
They’re forecasting diesel car sales at 4% to 5% of the
market by 2016.

That’s when the new federal fuel standards take effect.

For The Environment Report, I’m Julie Grant.

Related Links

House Gives Cash for Clunkers Green Light

  • It is hoped that the "Cash for Clunkers" bill will stimulate fledgling car sales (Photo by Samara Freemark)

The so-called “Cash for Clunkers” bill has passed the US House. Automakers say it could help boost sluggish sales if it passes the Senate and gets signed into law. But as Rebecca Williams reports some people think the bill isn’t very green:

Transcript

The so-called “Cash for Clunkers” bill has passed the US House. Automakers say it could help boost sluggish sales if it passes the Senate and gets signed into law. But as Rebecca Williams reports some people think the bill isn’t very green:

If you have a car or truck that gets 18 miles per gallon or less, under this bill, you’d get to trade it in for a more fuel efficient car or truck. The old car would get scrapped.

You’d get a voucher for several thousand dollars. Old gas guzzlers would get taken off the road.

But Ann Mesnikoff points out: in the House bill you could trade in an old SUV that gets, say, 14 miles per gallon… for a new SUV that gets just two miles per gallon more.

She directs Sierra Club’s Green Transportation Campaign.

“The key things to change in the cash for clunkers program are to ensure that taxpayer dollars are going to buy vehicles that have at least better than average fuel economy. Not those that can’t even meet today’s fuel economy standards.”

Congress is also going to have to figure out how to pay for the bill. It’s expected to cost about 4 billion dollars.

For The Environment Report, I’m Rebecca Williams.

Related Links

President Obama’s Plan for Clean Cars

President Obama has outlined his plans
for the struggling auto industry. They
include restructuring GM and Chrysler
as well as help for auto workers and
communities hurt by slumping car and truck sales. Lester Graham reports lost in the details was the President’s bigger plan:

Transcript

President Obama has outlined his plans
for the struggling auto industry. They
include restructuring GM and Chrysler
as well as help for auto workers and
communities hurt by slumping car and truck sales. Lester Graham reports lost in the details was the President’s bigger plan:

In one sentence President Obama summed up his vision for the U.S. auto industry.

“I am absolutely committed to working with Congress and the auto companies to meet one goal: the United States of America will lead the world in building the next generation of clean cars.”

Some analysts say the market should decide whether consumers want fuel-efficient, clean cars. They point to headlines noting hybrid car sales fell off a cliff since gasoline prices went down.

But J.D. Power and Associates’ Michael Omotoso says yeah, hybrid sales are down – but not as much as everything else.

“Hybrid sales are actually doing well compared to overall sales.”

Hybrid sales in February were down 29% from last year, but overall light vehicle sales fell 40%.

Omotoso says hybrids are still selling because people expect gas prices will go up as the economy recovers.

For The Environment Report, I’m Lester Graham.

Related Links

Private Wells Tainted

  • A study from the US Geological Survey shows drinking water from almost one quarter of private wells is contaminated. (Photo by Alex Anlicker, Courtesy of Wikimedia Commons)

A new report finds that almost one quarter of the private wells in the country are contaminated. Mark Brush reports on a new study that tested the quality of well water:

Transcript

A new report finds that almost one quarter of the private wells in the country are contaminated. Mark Brush reports on a new study that tested the quality of well water:

The government sampled wells across the country. And it found that twenty-three percent of the private wells tested had chemicals at levels that could cause health problems.

The United States Geological Survey published the report. Bob Gilliom is one of the authors.

He says most of the contaminants they found came from natural sources underground – such as arsenic – which is a poison:

“So certain parts of the country there was a relatively high incidence of arsenic concentrations that were greater than the maximum contaminant level identified in the Safe Water Drinking Act.”

Man-made chemicals were also found – especially near farms where nitrogen fertilizers are used. Around one quarter of all the wells tested in these areas had levels of nitrates considered to be unsafe. In the U-S – about 43 million people get their water from a well. And the government says it’s often up to the home owner to find out whether their water is safe.

For the Environment Report, I’m Mark Brush.

Related Links

Business Booming at Repair Shops

  • Despite the decline in new car sales, Sales Manager Joe Marken expects more business on the repair and maintenance side of of the dealership. (Photo by Julie Grant)

Not too many people are buying new cars these days. But that’s not all bad news for auto dealers. Julie Grant reports that more car owners are starting to spend money on repair and maintenance:

Transcript

Not too many people are buying new cars these days. But that’s not all bad news for auto dealers. Julie Grant reports that more car owners are starting to spend money on repair and maintenance:

(sound of construction)

Now there’s a sound you don’t hear every day anymore. Especially at a car dealership. It’s construction.

This Toyota Dealer in Kent, Ohio is in the midst of a 12-million dollar expansion.

Sales manager Joe Marken says they’re renovating the repair and maintenance garage. That’s where he’s starting to see the most growth.

“People are looking at, ‘do I want to encumber myself with a 60 month payment of some sort, or do I want to spend X and know that I can get a year or two more years out of whatever I’m doing?'”

Marken says lots of people don’t know if they’ll have a job in the next year or two.

The National Automobile Dealers Association expects more people to spend money on parts and service nationwide this year.

They say there’s an upside – maintenance improves gas mileage and resale value of the vehicle.

For The Environment Report, I’m Julie Grant.

Related Links

Sad State of Suv Sales

  • High gas prices are making it difficult for SUV owners to sell them (Photo by Ben VanWagoner)

With higher gas prices, SUV and light
truck owners are scrambling to trade in their
large cars for smaller more fuel efficient ones.
But, they’re shocked to learn how little they can
get. Lisa Ann Pinkerton reports:

Transcript

With higher gas prices, SUV and light
truck owners are scrambling to trade in their
large cars for smaller more fuel efficient ones.
But, they’re shocked to learn how little they can
get. Lisa Ann Pinkerton reports:

The auto industry says, sales of new SUVs and light trucks have basically stalled and the
market is flooded with used models. That’s got used car dealerships across the country
offering owners about 20% less than their vehicles are worth.

Art Spinella, president of the auto research firm, CNW, says even at a steep discount,
Sport Utility Vehicles and light trucks are taking about a month longer to sell than they did a
year ago.

“If you need a sport utility for some reason, now is probably the best time to buy one. But
if you’re trying to sell a sport utility you may be better off just parking it and keeping it
until the market either turns around or the over supply that exists right now kind of dwindles down.”

Research shows a lot of SUV owners are deciding to not to drive them.

For The Environment Report, I’m Lisa Ann Pinkerton.

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The HIDDEN COSTS OF &Quot;JUNK" MAIL

  • Mixed paper (including "junk" mail) gets trucked to recycling facilities like this one for recycling. First, it's unloaded in big piles, then pulled up a conveyor belt for sorting. (Photo courtesy of the City of Ann Arbor)

If it seems like your mailbox is stuffed with more shiny credit card offers and catalogs than ever before, you’re right. The U.S. Postal Service says the volume of advertising mail outpaced first class mail for the first time last year. The GLRC’s Rebecca Williams reports… city waste managers and environmental groups are concerned that all that mail is going to add up to a lot more waste:

Transcript

If it seems like your mailbox is stuffed with more shiny credit card offers
and catalogs than ever before, you’re right. The U.S. Postal Service says
the volume of advertising mail outpaced first class mail for the first time
last year. The GLRC’s Rebecca Williams reports… city waste managers and
environmental groups are concerned that all that mail is going to add up to
a lot more waste:


(Sound of squeaky mailbox opening)


Maybe it’s just me, but it seems like no one sends me letters anymore.
Which means my mailbox is all coupons and catalogs and pizza ads. That’s
not all bad, but honestly, most of it goes right to the shredder.


(Sound of shredder)


According to the Environmental Protection Agency, that’s a pretty common
reaction. The EPA points to one study showing that 44 percent of advertising mail
is thrown away without being opened or read.


And there’s a lot coming in. Last year, marketers and non-profit groups sent
about 101 billion pieces of mail. That’s billion with a “B.”


You might call this junk mail, but people in the business have a more
affectionate name for it: direct mail.


Pat Kachura is with the Direct Marketing Association. She says direct mail
yields a very high return on investment.


“Marketers yield about a 7 dollar return on investment for every dollar
spent on catalog marketing, and about 15, almost 16 dollars return for every
dollar spent on non-catalog direct mail marketing.”


The Association’s annual report says those hefty returns are based on an
average of just 2.7 percent of people responding to the ads they get in the
mail. Last year, that meant more than 600 billion dollars in sales.


So, it’s profitable for marketers to fill up your mailbox.


But critics say there are hidden costs that marketers aren’t paying. Some
of those costs also arrive in your mailbox in the form of a bill from your
city for solid waste disposal or recycling.


(Sound of paper pouring into bunker from conveyor belt)


If your city accepts mixed paper for recycling, your junk mail comes to a
facility like this one where it’s sorted and packaged into giant bales
weighing one ton each.


Bryan Weinert is the solid waste coordinator for the city of Ann Arbor,
Michigan.


“We end up getting about $70 a ton back in the value of the junk mail that’s
recycled. But remember it’s costing the city roughly $125 a ton or so to
pick it up.”


Weinert says his city is lucky because it has double the nation’s average
recycling rate. He says communities that don’t have a recycling program
bear even higher costs to dispose of mixed paper.


In this case, the bales of paper get made into Kellogg’s cereal boxes.


Tom Watson is with the National Waste Prevention Coalition. He says it’s
good when there’s a local market for recycled junk mail, but much of it
actually gets sent overseas.


“The unwanted mail, the mixed paper, generally has a very low value, that is often
shipped to China and it comes back to us in the kind of mottled packaging found on
the products that we buy from China. So, it comes full circle but it’s not
very efficient, all the costs of the transportation and recycling.”


Watson says it’d be much more efficient to cut back on all that mail in the
first place.


The Direct Marketing Association does offer an opt-out service. The group
says their members aren’t allowed to send any new mailings to people who
sign up. The fastest way to sign up is online, but you have to pay a $5
charge.


Tom Watson with the National Waste Prevention Coalition says that charge
might put people off. He says he’d like to see a national Do Not Mail list.
One that isn’t controlled by the industry.


“It’s very common in other countries, you can’t send mail to someone unless
they say in advance, yes I want to receive that mail from you.”


You might expect that the folks at the Direct Marketing Association aren’t
fans of the Do Not Mail list idea, but they’re not the only ones.


“What is our position on that? (laughs) I wouldn’t like that to occur.”


George Hurst is the brand manager of direct mail for the Postal Service.
It’s his job to get direct mailers to send more mail. That’s because it’s
the second largest source of revenue for the Postal Service, in the tens of
billions of dollars.


Hurst says new laws aren’t needed. Instead, he says marketers just need to
know their audiences.


“The ones that don’t do it too well, and just blanket the earth with a message,
God bless ’em, we love the postage. But you gotta know that if you’re
talking to someone who is say, 100 miles away, about coming to your
dry cleaners, you’re probably missing the mark.”


But critics say consumers deserve to have more say over the mail they bring
into their homes. They say marketers make so much money from the mail they
send… that for that small chance you might be interested in a coupon book or
sale notice, you shouldn’t have to pay the cost to throw it away or recycle
it.


For the GLRC, I’m Rebecca Williams.

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