Organics, food regulation, and chocolate

February 2, 10:54 AMFood ExaminerEric Burkett

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Here today, gone tomorrow.

Rising prices and diminishing incomes got you down? There are a few bright spots in the morass of bad economic news and – happily – they’re food related.

Organic food sales slowing, but hanging on
Does organic broccoli make a sound when it falls in the kitchen and no one is around to hear it? Despite a dramatic drop in overall growth, organic food sales are still growing. Reuters reports the growth rates of 20 to 30 percent in U.S. organic sales which held until mid-2008 have, indeed, dropped, but still are growing nonetheless.

“Sales in December [2008] were up 5.6 percent, year on year, against a 25.6 percent rise a year earlier,” Reuters reported. The story pins the continued growth on the hardcore organic consumer, committed to organic values despite shrinking wages.

"They are trying to stretch their money but they are not willing to stop buying organic," Reuters quotes Ronnie Cummins, national director for Organic Consumers Association. "We think in the long run the prognosis is good. The energy crisis and climate change can only really be addressed with organic production."

Regulate us!
Ten major food industry associations urged Congress last week to revamp the country’s food safety network. According to Foodsafetynews.com, industry leaders are even calling for giving the Food and Drug Administration power to enforce mandatory recalls.

“The Food and Drug Administration must be given better tools and more authority to prevent contamination of the nation's food supplies if we are to maintain our position of global leadership and assure consumer confidence,” said Pam Bailey, president and CEO of Grocery Manufacturers Association.

Not everyone is ready to pat the food industry on the back just yet, however.

“Really?” wondered maven of food policy Marion Nestle. “Have food companies finally figured out that a strong FDA would be good for business (consumer confidence, level playing field)? Or are they thinking that this will give them the chance to write the regulations?”

Bittersweet, like good chocolate
Good news for the chocolate industry brings bad news for San Francisco Bay Area chocolate lovers. Hershey Co. released its fourth quarter earnings last week “that were above analyst expectations and projected growth of up to 3 percent for 2009,” reported the San Francisco Chronicle. “The company said it earned $82.2 million, or 36 cents a share, in the quarter ending in December, compared with $54.3 million or 24 cents a share, it earned for the same period last year.”

Chocolate has been an upbeat note in otherwise depressing economic tune. Mostly.

Unfortunately, Hershey also announced it was moving both the premium chocolate makers it had purchased in 2005 – Scharffen Berger and Joseph Schmidt – from their Bay Area homes to plants back east. Hershey said they would maintain the high-end chocolate’s quality but wanted to consolidate its premium chocolate brands into one plant.