Certified Sustainable by Food Alliance

David Visher
California Program Manager
David@foodalliance.org

Sustainability?
A sustainable food system . . .
Economy
Community
Environment

Hot Topic: toxic pesticides
• USEPA: $11 billion annually on 5 billion pounds of
active ingredients -- 77% for use in agriculture
• USEPA: Agriculture responsible for 70% of surface
water pollution
• Consumers Union: 40 common pesticides a direct
threat to human health
• USDA: Pesticide residues detected in 61% of fruits
and vegetables.

Hot Topic: global warming
• Agriculture is a source of methane (animals), nitrous
oxide (tillage/fertilizer) and carbon dioxide (fossil
fuels, land degradation)
• The average meal is estimated to travel anywhere
from 1500-2500 miles from farm to plate.
• Transportation of food also requires energy
expenditures for food processing, packaging, and
refrigeration.

Hot Topic: social justice
• Over 2 million farmworkers in US
-- 75% earn less than $10,000/year
• Farm work is one of the most dangerous
occupations in US
• Very few farmworkers have health coverage

Hot Topics: wildlife habitat
• Agricultural expansion is the primary cause of habitat loss
and fragmentation throughout the world.
• Agriculture is implicated in the decline of 40% of
endangered species.

Hot Topics: family farms
• Consolidation in industry and thin margins create
pressure to ‘get big or get out’
• “Agriculture-of-the-middle” refers to a disappearing
sector of mid-scale farms/ranches (account for over
80% of U.S. farmland) who are unable to
successfully market bulk commodities or sell food
directly to consumers.

Locally Grown Foods
Family Farms
Labor Conditions
Animal Welfare
Sustainable
Agriculture
Toxicity – Pesticides, etc
Antibiotics & Hormones
Genetic Engineering
Soil and Water Conservation
Wildlife Habitat

Industry Takes Action
KP’s Vision for a Healthy Food System:
“Kaiser Permanente aspires to improve the health of our
members, employees, our communities and the
environment by increasing access to fresh, healthy food
in and around KP facilities. We will do so in a manner
that promotes agricultural practices that are ecologically
sound, economically viable, culturally appropriate and
socially responsible.”

A Shift in Consumer Values
Value
• Quality
• Convenience
• Price
New Values
• Health
• Community
• Environmental
Stewardship
• Authenticity

Consumers Today
“People want to know what lies behind a brand and
the extent to which its values are aligned with their
own… Today, the issue is what a brand says about
someone, as a badge indicative of the individual’s
values and view of the world.”
Chris Pomfret, Unilever Marketing Executive
KP’s National Food Purchasing and Labeling Guidelines: RFI/RFP

Eco-labels
Reduced
Pesticides
Ecosystem
Friendly
Animal
Friendly
Socially
Responsible
Sustainable

Eco-Labels are Credible When They Are:
• Meaningful and verifiable
• Consistent and clear
• Transparent
• Independent and free from conflict of interest
• Open to public comment
Consumer’s Union
www.greenerchoices.org/eco-labels/

Product claims & compliance mechanisms:
• 1st party claim – Promise or affidavit
• 2nd party claim – Endorsement with affidavit or
inspection
• 3 rd party claim – Inspection by a neutral party

Food Alliance
Food Alliance creates market incentives for socially
and environmentally responsible agricultural
practices and educates business leaders and other
food system stakeholders on the benefits of
sustainable agriculture.

Food Alliance
Operates a third-party certification program and a
market development program to connect
sustainable growers with food businesses.
• Sets standards for sustainable agriculture
• Verifies compliance with standards
• Helps connect sellers and buyers of certified
products

Food Alliance in a Snapshot
• More than 300 farms and ranches in
• 5.6 million acres of range and farm land
• Nearly 20 food processing and distribution facilities
• $100 million of FA certified products sold in 2007

Food Alliance Certified
Businesses that demonstrate their compliance
with our standards are granted the right to use
the eco-label on certified products.

Food Alliance certifies
farms and ranches that:
• Raise animals without synthetic hormones
and non-therapeutic antibiotics
• Provide healthy and humane treatment of
animals
• Raise crops without genetically modified
organisms (GMOs)
• Reduce pesticides usage and toxicity
• Conserve soil and water resources
• Preserve and protect wildlife habitat
• Provide safe and fair working conditions
• Commit to continuous improvement of
these sustainable practices

Food Alliance certifies
processors and distributors that:
• Use Food Alliance Certified ingredients from sustainable farms and ranches
• Provide a safe and fair work environment
• Conserve water and energy resources
• Reduce waste through reuse and recycling
• Create natural products considering purity and nutritional value
• Ensure quality control and food safety
• Commit to continuous improvement of these sustainable practices

Certification Process
1. Voluntary application
2. On-site inspection by independent auditor
3. Continuous improvement goals recorded
4. Inspector writes detailed report on audit results
5. Food Alliance shares determination with client
6. If necessary, corrective actions required and verified
7. Certification granted or denied

Who’s getting
certified?
• Individual farms & ranches
• Producer groups, Co-ops
• Processors/Manufacturers

www.foodalliance.org

What does certification cost?
Farms and ranches pay annual fees based on the previous year’s gross sales of the products
certified:
Up to $175,000
.5% of sales (or base price of $400, whichever is greater)
Up to $300,000 Add .25% on sales over $175,000
Over $300,000 Add .10% on sales over $300,000
Food processors and manufacturers pay inspection costs plus annual fees on net sales of certified
products:
Up to $500,000
.4% of sales
Up to $2 million Add .2% on sales over $500,000
Up to $50 million
Add .04% on sales over $2 million
Over $50 million
Add .02% on sales over $50 million

Lesson Learned:
People buy products – not labels

Lesson Learned:
Certification verifies
and substantiates claims
• Traceability
(What is the source?)
• Transparency
(What are the standards?)
• Accountability
(Have the standards been met?)

Lesson Learned:
Certification is not for everyone

Lesson Learned:
Certification is not
just about price premiums

Lesson Learned:
Certification is a tool
that supports your brand
and your marketing strategies

Producers benefit most when they:
• Label their products
• Get marketing assistance
• Invest in promotional and educational materials
• Create strong, ‘high-touch’ relationships with
customers
• Talk about their certification and what it means

Other Benefits:
• Meet customer product specifications
• Manage environmental risks
• Manage regulatory risks
• Manage marketing risk – “stay on the shelf”
• Improve community relations
• Protect and enhance brands
• Differentiate products
• Increase customer loyalty
• Gain access to new markets
• Gain access to contracts
• Increase sales
• Feel good by “doing the right thing”

Why choose certification?
• Differentiate products and enter new markets
• Brand the company as an industry leader
• Address customer needs and values
• Demonstrate company values