Welcome to the

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• Welcome to the
• An Organic Educational Working Session and
  Celebration of Quality Assurance Internationals
  20 Years in Cultivating Organics

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View from the OTACurrent Issues in the Organic
Industry

• Presented by Laura BatchaMarketing and Public
  Relations Director
• Organic Trade Association

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• Organic Trade Association

From the Farm Bill to GMO OTA works on your
behalf to promote the values, the policies, and
the relationships that foster the organic
industry.
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• WHAT IS OTA?
• A Trade association for the organic industry
• Since its founding in1985, OTA has been the voice
  for the organic business community in North
  America.
• OTA has 1,700 members across all parts of the
  supply chain including organic farming,
  processing, distribution, and the retail supply
  chain, for food, organic textiles and personal
  care products.
• OTAs board of directors is democratically
  elected and represents our diverse membership.

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GOVERNMENT RELATIONS OTA safeguards its members
interests. OTA moves regulatory and legislative
issues forward on behalf of its members.
OTA Board meeting with Carol Jett, Secretary of
Agriculture Tom Vilsacks Chief of Staff and
Michael Michener, Administrator of the Foreign
Agricultural Service
Christine Bushway OTA Executive Director with
Barbara Robinson Acting Director of the National
Organic Program and Julia Sabin, Chairman OTA
Board and President Smuckers Natural Foods
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• TOP ISSUES
• Ag appropriations 2010 cycle completing
• Trade
• Legislative
• Regulatory

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• APPROPRIATIONS
• Nearly 7 million for NOP
• 200,000 for IGs review of NOP
• 500,000 for ERS production market data
• 250,000 NASS to complete organic production
  survey
• CSREES - 5 million organic transition
  research

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Technical Assistance for relief of international
trade barriers              
55 of organic producers export or plan to export

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First Bi-lateral Equivalency Agreement on Organic
Standards

• Signed June 17, 2009 between the US
  Department of Agriculture (USDA) and the Canadian
  Food Inspection Agency (CFIA) at OTAs All Things
  Organic Conference and Trade Show.

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MOMENTUM

• Korea (MIFAFF) implementation of their organic
  regulation Jan. 1 2009
• Resulting trade barriers will disrupt 55
  million/year in exports of US organic products to
  the Korean market
• USDA and OTA have officially requested Korea
  delay implementation and engage in negotiations
  for an equivalence agreement

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MOMENTUM

• Equivalence trade agreements are a high priority
  for the Obama administration
• White House Trade Office is engaged in requesting
  an organic equivalence agreement with Korea
• OTA briefed the trade office on impact to the
  industry if trade is disrupted

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EXPORT PROMOTION              
Promotion of US agricultural products worldwide
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LEGISLATIVE ISSUES
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• REGULATORY ISSUES

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MEDIA RELATIONS OTA shoulders the issues and
speaks on your behalf to advance and protect the
integrity of organic and organic brands
Media outreach and education Clarification and
response Crisis communications  
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TOP ISSUES
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OTA Publishes Critical Data              
What are we hearing?
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ORGANIC State of the Industry

• Organic sales in the United States reached 24.6
  billion in sales in 2008. Organic food is the
  largest segment of organic products, totaling
  22.9 billion in sales and accounting for 93 of
  all organic product sales.
• The growth rate for food and non-food organic
  products combined was 17.1 between 2007 and
  2008.

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Consumers have shown resilience in seeking
organic products

• Organic sales are growing faster than the rate of
  growth for conventional food products. The 15.8
  increase in organic food sales since 2007 (vs. a
  4.9 increase in total U.S. food sales) propelled
  the organic share of total food sales to nearly
  3.5 in 2008. The level of organic penetration
  has nearly doubled in the past five years.

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73 OF US FAMILIES PURCHASE ORGANIC

• Newly Organic families (32) have only just begun
  purchasing organic products within the past 2
  years.
• Experienced Organics (20) first bought organic
  products up to 5 years ago.
• Seasoned Organics (21) have been buying
  organicproducts for more than 5 years, and in
  some cases, longer than 15 years.
• Non-buyers (27) have never purchased
  organicproducts.

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PATH OF ORGANIC TRIAL
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MOTIVATION TO CHOOSE
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CONSUMER CONFIDENCE
Key finding education about organic leads to
trust in the organic label. Education Trust
Increased Purchases across multiple categories
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CONSUMER OUTREACH OTA answers the question,
What is organic and why should I trust it? and
protects and enhances your investment in organic
products.
2009 Organic, Its Worth It. public education
program reached 25 million consumers
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OUTREACH PLANS
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Thank you!

• Laura Batcha - Marketing and Public Relations
  Director
• Organic Trade Association
• E-mail lbatcha_at_ota.com

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View from the NOP/NOSBCurrent Issues in the
National Organic Standards Board and National
Organic Program

• Presented by Joe Smillie
• Senior Vice President of QAI
• Member, National Organic Standards Board for the
  National Organic Program

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Thank you!

• Joe Smillie - Senior Vice President, QAI
• E-mail jsmillie_at_qai-inc.com

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• Break

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View from the MediaHot button issues
recommended responses

• Presented by Sylvia R. Tawse
• Chief Fresh Officer, The Fresh Ideas Group

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Organic Messaging Reality Check

• News Flash
• Organic is no longer New!!!!

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Organic Messaging Reality Check

• These terms ARE new or newer and, thus, are now
  competing with organic for media attention
• Local
• Fair Trade
• Sustainable
• Grass fed (hot)

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Organic Messaging Reality Check

• Semantics Matter
• Two of These Terms Have No Definition
• Local New term emerging food shed
• Sustainable a term at risk of being co-opted
• Text from Monsanto ad on NPRs Marketplace
• Monsanto, committed to sustainable agriculture,
  creating hybrid and biotech seeds designed to
  increase crop yields and conserve natural
  resources. Learn more at ProduceMoreConserveMore.c
  om

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Organic Messaging Reality Check

• This Makes Your Job Tougher and More Important
  Than Ever
• MESSAGING TRICK Change the conjunction. Remember
  the power of duality and the word and in all
  of your language.

JOB 1 Retain Long-term Consumer Trust in the
Organic Promise
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Organic Messaging Reality Check

• Organic Remains Under Attack It has moved from
  sending the arrows to being the target

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And, at times we shoot arrows at ourselves

• US "Organic agriculture is becoming very
  dependent on these amendments," one grower told
  The Bee. "If you dont use them, and your
  competitor is using them, youre going to
  suffer. (Organic Grower)
• THEM Funnythats the same mentality thats
  driven conventional farmers to grow more and more
  dependent on agrichemical manufacturers over the
  past half-century. (Grist Writer)

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Organic Messaging Reality Check

• Another Threat to Organic
• Perception of Elitism and Too Expensive

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Some Fresh Approaches to Messaging

• Attack Organic is Big and Corporate
• Only ½ of US farmland is currently
• in organic so we have a 99.5
• opportunity to improve
• agriculture in this country
• Organic is only 3 of the
• food eaten in the U.S.

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Some Fresh Approaches to Messaging

• Attack But Organic isnt Sustainable
• Organic is imperfect and constantly becoming
  more strict in its definition but it is the most
  defined, regulated and inspected food label in
  the U.S. there is no federally regulated
  definition and zero inspection requirements for
  the term sustainable.
• Organic IS beyond sustainable because it
  regenerates rather than sustains land.

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Some Fresh Approaches to Messaging

• Attack Organic is a sham and it just costs
  more!
• It depends on what you care about. Organic
  practices reduce the toxic load and the costs
  paid by the planet and humans.
• Whether its a 4-acre farm or a 4,000 acre farm
  the regulations for organic are exactly the same
  and inspected to the same standard.

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Some Fresh Approaches to Messaging

• Attack Local is all that really matters
• There are 400 ocean dead zones
• identified now around the globe with
• the runoff from chemical fertilizers being
• the number one contributor to
• those disasters. You arent going
• to prevent more dead zones
• by only buying local food.

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The Future is Now
3 Comments
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But be on notice.current A-level Media to watch
who track the O

• Organic Analysts

• Organic Contrarians

• Mark Bittman NY Times
• Tom Philpott Grist
• Dr Alan Dangour- Academic (UK)
• John Cloud - Time
• Russ Parsons LA TIMES

• Kim Severson NY Times
• Jane Black Wash Post
• Monica Eng Chicago Trib
• Bryan Walsh- Time
• Waylon Lewis Elephant Journal.com Huffington
  Post

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Thank you!

• Sylvia R. Tawse - Chief Fresh Officer
• The Fresh Ideas Group
• E-mail Sylvia_at_freshideasgroup.com

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View from the QImprovements and New Offerings at
QAI and Overview of New Organic Personal Care
Standard

• Presented by Jaclyn Bowen
• General Manager, QAI

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• Agenda
• - QAI Improvements
• - New Service Offerings
• Overview of NSF/ANSI 305

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Introductions

• Client Management Team
• Kathleen Downey
• Joe Smillie
• QAI Application Review Team
• Aaron Turner
• Kayo Tsunenari

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Introductions continued

• Administrative Support
• Joey Irish
• Vi Do
• Ashley Magpiong
• Chris Sonnenberg
• Caitlin Stanley
• Quality Assurance
• Maria DeVincenzo
• Kelly Goodall

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Introductions continued
Certification Project Managers

• Kasey Moctezuma
• Diane Hennelly
• Tim Stuckey
• Courtney Sullivan
• Diana Chamot
• Robin Anderson
• Matt Boll
• Lori Hooker
• Stan Tran

• Albert Moscona
• Ashley Backus
• Lynne Grayton
• John Joseph
• Jon Lackie
• Edmond Throckmorton

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Introductions continued

• Technical Review
• Stephen Grealy
• Jessica Walden
• Liz Figueredo
• Ann Marie Hourigan
• Yahaira Hudson
• David Konrad

• Emily Orr
• Holly Owen
• Allison Wolff

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Introductions continued

• QAI IT Specialist- Chris Corliss
• QAI Technical Advisor- Alexis Randolph
• QAI Manger of Administration- Susan McCarthy
• NSF Director of Customer Management Group- Dave
  Kirkpatrick
• QAI President and CEO- Kristen Holt

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QAI Improvements
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We heard you!

• Expanded Inspector Pool
• Over 80 QAI trained inspectors
• Trained in various sectors of the NOP
• Wide geographic distribution
• Multi-lingual

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We heard you!

• Reduced time it takes to issue certification
  decision by 67
• 2009 turn time 20 days to certification decision
  from inspection
• Complete renewal cycle complete within 4 months

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We heard you!

• Improved Contact
• Installed direct dial phone lines

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We heard you!

• Increased industry presence at tradeshows and
  functions
• Attended 30 industry events and worldwide in
  2009
• Expo East Biofach
• Expo West KosherFest
• SupplySide West FancyFood East
• ATO Fancy Food West
• ATO Canada PMA
• CHFA East PLMA
• CHFA West NOSB Meetings
• Guelph and many more!

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We heard you!

• Increased Training
• New online webinars offered by the Center for
  Public Health Education (CPHE)

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We heard you!

• Implementing ISO 14001 to prove our commitment to
  environmental preservation.

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New Service Offerings
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Educational Webinars

• http//www.nsf.org/cphe/
• Bi-monthly online webinars with QAI subject
  matter experts
• Complimentary or discounted for QAI clients
• Previous webinars include
• NOP 101
• Top 10 Non-Compliances
• Canadian Organic Regime
• Planning for GFSI

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Global Food Safety Solutions

• Established to ensure confidence in the delivery
  of safer food to consumers while continuing to
  improve food safety supply chain management.
• Provides a benchmark to ensure consistency
  between countries and the products that have been
  certified.
• NSF International is the only ANSI accredited
  provider of both BRC and SQF audits!

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Trucost

• With Trucost, QAI is capable of calculating
• Your direct and supply chain environmental
  impacts
• Greenhouse gas footprint,
• Identifying the financial implications of those
  impacts. 
• A leading environmental data firm that has
  collaborated with
• WWF (formerly known as the World Wildlife Fund)
• The United Nations Principles for Responsible
  Investment
• Chosen as the sole quantitative environmental
  impact data provider for Newsweeks Green Ranking
  of Companies published September 2009.
• Methodology is fast, accurate and cost effective
  way to prepare for the new, low-carbon economy

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Bundled Services

• New capabilities and efforts underway to work
  with other industry services
• Have cross-trained inspectors to consolidate
  audits
• IBD EcoSocial Program
• Non-GMO Project
• Star-K Kosher
• BRC and SQF certification audits
• Retail Food Safety

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Overview of NSF/ANSI 305
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Development

• Organic Trade Association Personal Care Task
  Forcehanded over their work to NSF in hopes of
  completing an AMERICAN NATIONAL STANDARD for
  Organic personal care products
• Another impetus for developing NSF 305 was the
  USDA directive stating that personal care
  products were outside the scope of the NOP.
• NSF formed stakeholder committee consisting of
• Product manufacturers Organic certifiers and
  state programs
• Ingredient suppliers Retailers and consumer
  organizations
• Trade associations
• Received ANSI designation on February 12, 2009.

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Purpose

• Encourages participation in the manufacturing of
  personal care products using organically grown
  ingredients within the supply chain.
• Emphasizes open disclosure of impact and benefits
• Does not compromise proprietary, patented, or
  trade secret information.
• Used by companies that may not be able to meet
  the current USDA organic food
• regulation.

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Scope of NSF/ANSI 305

• Items covered include
• Cosmetics
• Rinse-off and leave-on personal care products
• Oral care products
• Personal hygiene products
• Products may be applied to or used externally on
  any part of the body
• Cosmetics are considered personal care products

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NOP Alignment

• 70 organic minimum
• Requires supply chain to be certified organic
• Products complying to USDA 95 and 100 Organic
  content must follow the rules of the NOP
• A process, not a product claim
• Includes allowances and restrictions on
  processes, agricultural ingredients, and methods
  of extraction based on intended label claim
• Annual inspection
• Salt and water considered neutral
• Big 3 still not allowed

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NOP Differences

• Allows for a front label Contains Organic
  claim
• Must declare actual organic content on label
• Some Green Chemical processes considered
  synthetic under the NOP, are allowed as long as
  the ingredients used are organically derived.
• Some synthetic preservatives allowed

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Collaboration Efforts underway

• NaTrue is an International Interest Grouping of
  Natural Organic Cosmetics manufacturers
• Purpose to safeguard the highest possible
  standards for natural cosmetics and their
  ingredients
• Efforts between QAI and NaTrue to develop gap
  analysis between NSF/ANSI 305 and NaTrue-2 and 3
  star- Label- Organic Cosmetics

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Organic Resources

• www.ams.usda.gov/nop/
• To view the National Organic Program Final Rule.
  
• www.nsf.org
• To view NSF/ANSI 305 and find more info on
  QAI/NSF webinars
• www.ota.com
• For more info on the Organic Trade Association
• www.qai-inc.com
• To access QAIs program and organic industry
  news.
• www.natrue.org
• For more information on NaTrue certification.

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Thank you!

• Jaclyn Bowen - QAI, General Manager
• E-mail jaclyn_at_qai-inc.com

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• Break

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• Panel Discussion and Question and Answer
• Laura Batcha, Marketing and Public Relations
  Director, Organic Trade Association
• Joe Smillie, Senior Vice President, QAI
• Sylvia R. Tawse, Chief Fresh Officer, The Fresh
  Ideas Group
• Jaclyn Bowen, General Manager, QAI

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• Celebrating 20 Years of Advocacy for Organics
• History of Organic Movement and QAI
• Joe Smillie, Senior Vice President, QAI

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• Please join us for an organic cocktail reception
  in celebration of QAIs 20th anniversary