Please review the information below for the complete story regarding issues currently receiving attention.
About Omega-3 DHA
Horizon remains dedicated to providing consumers with the highest quality, great-tasting organic dairy products, and is proud to offer a variety of products that make a healthy difference in families' lives.
Horizon, like many other companies, began using omega-3 DHA supplements in its organic products based on the USDA's prior approval of DHA as one of many acceptable safe and effective nutrients to add to organic products. Products made with DHA supplements continue to be one of the most in-demand among consumers. Milk enhanced with omega-3 DHA provides an important nutrient that helps support heart, brain and eye health. Omega-3 DHA is used in a wide variety of products, and received Generally Regarded as Safe status from the FDA almost a decade ago.
We support the USDA's decision to revisit how efficacious nutritional supplements are approved for certified organic products, and look forward to working closely with the USDA and the organic community to address this new interpretation in an open and transparent manner.
Have you cut pay prices to your family farmers?
No. We have not cut the base price we pay to our farmers. We are removing the Market Adjustment Premium (MAP) from our pay structure for the time being. Around 2004, when commodity costs were extremely high, Horizon voluntarily adjusted our pay structure to introduce a temporary pay increase, or MAP, to help offset those extreme production costs.
Commodity costs have been consistently down during the past 18 months. In fact, key feed crops and crude oil prices have all fallen about 25% in recent years. Therefore, as of July 1, 2010 we will no longer be adding the market adjustment premium to the base price we provide. However, we will continue to offer a highly competitive base price for organic milk. And, we will continue to pay out the industry's highest incentive bonus for top-tier quality milk performance.
What's the current state of supply and demand for organic milk?
Horizon has spent significant time and resources during the past year’s oversupply situation in order to evaluate, understand and ultimately respond to the issue in a manner which protects the ongoing sustainability of the category.
- We have met with farmers and cooperatively discussed the issues in the supply market.
- We have met with customers in an effort to enhance demand.
- We have accounted for more than 95% of the advertising spend amongst all other organic milk marketers in an effort to increase demand.
This work has allowed Horizon to see trends and changes well before they impact the sustainability of the organic milk market. We are happy to report that consumer demand for organic milk is once again trending up in most regions of the country.
Last year, when demand for organic was at an all-time low, we asked our producers to voluntarily reduce milk volume by about 5 percent. Based on market conditions, we are now pleased to ask for an increase in milk volume to help us meet higher consumer demand.
Organic milk sales are strong everywhere but in the West (Washington, Oregon, Nevada, Colorado and Utah) where we still have a surplus of organic milk. Therefore, we will not increase our supply in the West at this time. As any other buyer does, we keep a careful eye on the economy as well as supply and demand in the marketplace so we can do what’s best for family farmers, our business and the organic industry.
Pasture Rule Statement on Behalf of Horizon Organic
December 16, 2008
TThe United States Department of Agriculture (USDA) has released a proposed rule clarifying pasture and grazing standards for organic livestock. Horizon Organic has publicly supported the strengthening and clarification of this rule for the past several years, and we reiterate our support today. We are pleased to see the proposed rule contains a requirement for a minimum of 30 percent dry matter intake from grazing, and a requirement for continuous grazing through the growing season.
We have been collaborating with farmers, NGOs, trade associations and other environmental and organic focused individuals and organizations to coordinate our efforts. In addition, we have participated in listening sessions hosted by the USDA across the country to record public comments from interested parties.
We have some key suggestions for the USDA that we would like to see included in the Final Rule. Some of our suggestions include:
- The proposed rule defines a "growing season" which we believe would better be defined as a "grazing season."
- The proposed rule as written also could inhibit farmers from practicing best animal welfare and environmental quality practices by requiring animals to be on pasture every day of the year. Any allowed exemptions from pasture only reference very extreme circumstances that would cause permanent harm to animals. In some areas it is better to house animals during inclement weather in order to keep the animals healthy and off the land when conditions could cause environmental degradation or negatively impact water quality.
Finally, we would also like to see the USDA work quickly to publish a proposed rule on origin of livestock that will stop the continuous transition of conventional animals as dairy replacements.
Strong regulations and enforcement of the grazing requirement are crucial for consumer confidence in organic products, and will ensure the organic dairy business grows responsibly.
Horizon Organic Postion Statement on FDA Cloning Announcement
January 15, 2008
To Our Valued Customers:
Today’s announcement by the Food and Drug Administration (FDA) that milk from cloned animals and their offspring is safe to be sold in the marketplace does not change Horizon Organic’s policy of not accepting or selling milk from cloned animals.
We had hoped for a different decision from the FDA. Milk from cloned animals contradicts the intent of the organic movement and is inconsistent with consumers’ expectations.
The practice of cloning is prohibited by the USDA’s National Organic Program regulations. At Horizon Organic we have never accepted milk from cloned animals or their offspring, and will never do so in the future. Moreover, we will work diligently to ensure that organic laws and regulations never allow for organic milk to come from cloned cows or their offspring.
Blaine McPeak, President of Horizon Organic
About large organic farms
A farm's ability to produce organic milk is not a matter of the number of milking cows. Organic milk production is all about the method used to care for and manage the animals and the land, including active grazing. We believe that a farm's ability to produce organic milk is scale neutral.
Statement from Horizon Organic regarding the Cornucopia Institute
We listen to all voices, and while Horizon Organic respects freedom of speech, we believe the Cornucopia Institute's ongoing attacks on our company are filled with inaccuracies, and, worst of all, confuse consumers who seek quality certified organic products.
We especially listen to experts in agricultural practices, people such as Hue Karreman, Holistic Management International (HMI), Conservation International and value their input as objective, science-oriented observers.
We will bring the facts about us to you directly, without filters. Horizon Organic will not engage with those who are more interested in disparaging the organic milk industry, farmers and processors, than in sharing facts and building unity and opportunity across the organic milk community.
These are exciting times for the organic food industry. With consumer interest and demand growing, we believe that the organic milk community must work together to educate, inform, and build trust and consumer confidence in the organic seal. Through collaboration and unity we can make this community even stronger.
About how Horizon Organic treats their cows
We believe organic dairy farmers have a moral obligation to care for and treat their animals humanely and with respect. On our company farms, cows are sheltered in clean, comfortable surroundings, with ample room for sleeping, eating and moving about freely.
Horizon Organic believes that cow health is improved by allowing cows to be outside as much as possible, year-round, for fresh air, exercise and interaction with the land. When not on pasture, Horizon Organic provides appropriate housing that protects cows from the elements; provides shade, dry bedding, ample feed, forage, and clean water; and helps to maintain optimum health throughout the year.
