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April 15, 2006
Defining Organic Practices for Wine and Grapes
What does it mean to "go organic" in the wine industry, and how are organic wine and grapes regulated?
by Renée L. Robin

    While the wine industry is actively evaluating how to enhance quality and production, it is also working toward "treading more lightly on the land." For some this means reducing certain chemical inputs in production practices; for others it may mean "greening" operations by reducing the waste stream, using more renewable energy sources, or investigating alternative seed stocks and cultivation practices. Wherever you fall in the spectrum, the wine industry is looking hard at the merits and feasibility of adopting certified organic practices.

The key question is whether the adoption of organic practices or ingredients adds value to your products, markets and community. In the case of organic wine, the regulatory environment is specialized, but there are opportunities for premium pricing, a supplemental niche market and long-term environmental benefits. Moreover, in the world of gourmet food and wine, products made with organic ingredients are given deference for their flavor and their consistency with gastronomic values, such as quality ingredients and land stewardship.

According to the Organic Trade Association (OTA), the organic market grew an average of 20-24-percent a year throughout the 1990s, and consumers spent $7.8 billion on organic products in 2000 alone. According to the California Department of Food and Agriculture, there were 7,940 acres of certified organic wine grapes in California in 2003. Although organic wine is still a small market niche, the growth potential is strong.

This article provides basic definitions relevant to organic wines and agriculture as well as an overview of the regulatory structure that applies to organic practices, products, labeling and distribution. In addition, some useful Internet links are provided as sources for more detailed information.

What Is the Real Definition of Organic?

Organic products in the United States are regulated by the U.S. Department of Agriculture (USDA) in accordance with the Organic Food and Production Act (OFPA) passed in 1990 (7 C.F.R. pt. 205). Products labeled as "organic" must be certified according to standards for ingredients and production set by the National Organic Standards Board (NOSB) and administered by the National Organic Program (NOP) within the USDA. Organic foods and beverages are produced without using the following: most conventional pesticides, fertilizers made with synthetic ingredients or sewage sludge, bioengineering or ionizing radiation. Organic meat, poultry, eggs and dairy products come from animals that are given no antibiotics or growth hormones.

The NOSB defines organic agriculture as "an ecological production management system that promotes and enhances biodiversity, biological cycles and soil biological activity." Certainly the goal of organic agriculture—and the wine industry in particular—is to address larger issues, such as soil erosion water quality, loss of biodiversity, chemical dependence, and ecological impacts, such as resistance to natural predators.

Organically Grown Grapes vs. Organic Wine

Organic wines are currently in a state of limbo because many traditional winemaking ingredients are not currently approved for organic labeling by the NOSB. The term "organic wine" can be used only when 100 percent of the grapes are certified organic and where no sulfites are added. For example, a wine that contains only organic grapes but also uses sulphur dioxide (SO2), yeasts, bentonite or egg white gases (e.g., N2, CO2) in the winemaking process is not considered an "organic wine." Instead, these wines are commonly labeled "made from organically grown grapes."

There is continued discussion between the NOSB and the California Organic Advisory Board to recommend revised standards that would allow the use of sulphur dioxide; however, comments from the initial Federal Register notice last year resulted in withdrawal of the regulation for revision. Revised regulations could be adopted in the upcoming year.

Although the labeling limitation has been a disincentive for some winemakers to obtain organic certification, many grape growers are moving forward with their efforts to obtain organic certification (a three-year process) in anticipation of a resolution of the ingredient issue. In addition, many growers are finding that their winemaking partners want to use or purchase organic grapes—even without the labeling advantage. Because chemical sprays can enter the vat through grape skin residues or from pulp from the plant itself, growers and winemakers have an independent desire to eliminate trace pesticides and other chemical residue from their content. Winemakers have found that organically grown grapes have a unique, if not better, crush, providing additional flavor options.

During a grower's three-year transition to obtain organic certification, production costs can increase as much as 5 to 10 percent. "After the first three years, most producers agree, organic growing costs become equal or less than conventional growing costs as money is no longer being spent on synthetic chemicals." (OTA, Marketwatch) The biggest difference for growers of organic grapes is adopting growing practices that maintain biologically active soil. The use of cover crops and natural fertilizers, and the planting of companion crops, such as echinacea to attract natural predators, are common. In addition, weed management is integrative, allowing a cycle of growth, mowing and composting wherein the biomass is used as fertilizer instead of chemical sprays.

In the meantime, wine labels containing the phrase "grown with organically grown grapes" seem to be increasing as the certified acreage increases, and the inclusion of this information on labels is used by some as a marketing distinction along with appellation or variety.

Getting Certified: What Rules Apply?

To use the term "organic" in wine labeling or in wholesale grape sales, certification must be obtained by an "accredited certifying agent" (ACA). These ACAs can be private, public or non-profit entities that have received authorization to certify from the USDA. As of January 2006, there are 53 domestic ACAs and 40 foreign-based ACAs. Currently 11 of these ACAs are located in California.

Certification requirements usually include an application, an affidavit, annual submission of an organic system plan (OSP), and inspection of farm fields and processing facilities. Inspectors verify that organic practices, such as long-term soil management, buffering between organic farms and neighboring conventional farms, and record-keeping, are followed. This verification is usually only done once and is updated when changes to the requirements occur. Processing inspections include review of a facility's cleaning and pest-control methods, ingredient transportation and storage, and record keeping and audit control. The specific information needed in the OSP will differ depending on whether the applicant is a grower, handler, processor or retailer. An approved materials list is available from the ACA. These lists are drawn from the USDA's standards, and in some instances ACAs have incorporated European Union standards to ensure ease in exporting. Imported organic wines are certified by entities such as BIOFRANC or ECOCERT, inspection and certification organizations accredited to verify the conformity of organic products against the organic regulations of Europe, Japan and the United States.

Legal Challenge to Organic Regulations

The first major court case concerning the USDA's NOP final rule, 7 C.F.R. pt. 205, was decided in 2005. Harvey v. Veneman, 297 F. Supp. 2d 334, 335 (D. Me. 2004) involved issues of regulatory consistency with the original OFPA statute enacted in 1990 and the NOP's range of discretion with respect to added ingredients. The court found that certain NOP regulations were in contradiction with the express language of the OFPA.

Arthur Harvey, an organic blueberry farmer in Canton, Maine, and an organic inspector for the USDA, claimed the regulations weakened the integrity of the NOP and the standards it sets forth. The court agreed with Harvey that two NOP provisions were outside the program's authority. First, where the NOP regulations had allowed 38 synthetic ingredients to be used in processing and post-harvest handling, the court ruled that most of these ingredients would no longer be allowed. Second, the court held that the regulations could not allow dairy herds undergoing conversion to organic status to be given feed that is only 80 percent organic for the first nine months, and then switch to full organic feed after that. Finally, non-organic agricultural ingredients, such as cornstarch and pectin, had been allowed under the NOP when organic versions were not commercially available. The court ruled that non-organic agricultural products should have individual reviews before being used in processed foods and sent this issue back to the trial court to clarify the "commercially viable" exception.

The outcome in this case demonstrates the diverse views regarding the use of synthetic ingredients and the integrity of the organic laws. The response by organic companies and trade associations has been to collaboratively develop new legislation that would allow more flexibility for specified product categories, wine principal among them. This will be a key policy issue for the wine industry to follow as it will determine the organic wine labeling and production protocols in the decade ahead.

Useful Resources

Certifying ACAs: A complete list of certifying ACAs by state can be found at the USDA's NOP website.
Visit www.ams.usda.gov/nop/CertifyingAgents/Accredited.html

California Department of Food and Agriculture (CDFA) State Organic Program: Organic farms in California must register with the CDFA. The State Organic Program also conducts regulatory enforcement and responds to complaints regarding labeling, fraud claims and certification decision appeals.
Visit www.cdfa.ca.gov/is/fveqc/organic.htm.  

California Department of Health Services (DHS) Organic Page: Organic processors and handlers in California are required to register with DHS.
Visit www.dhs.ca.gov/ps/fdb/HTML/Food/organreq.htm.  

Organic Materials Review Institute (OMRI): Provides lists to research generic and brand name products authorized for use by certified organic operations.
Visit www.omri.org.  

Organic Farming Research Institute: This non-profit organization sponsors research related to organic farming practices and educates the public and decision-makers about organic farming issues.
Visit www.ofrf.org/general/weblinks/index.html.  

Organic Trade Association (OTA): Membership business association for the organic business community of North America.
Visit www.ota.com.  

U.S. Department of Agriculture National Organic Program: On the official NOP website, you can locate federal organic statutes, regulations, standards, ACAs and related information.
Visit www.ams.usda.gov/nop/indexIE.htm.  

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Renée L. Robin  Renée L. Robin is Of Counsel with Stoel Rives LLP, and is a member of the firm’s Winery and Vineyard Management Team. Her practice encompasses a wide range of land-use, natural resources matters, agriculture and water resources matters, with an emphasis on sustainable development. For questions regarding this column, contact Renée at rlrobin@stoel.com or 415-617-8908.

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