Baking & Snack - August 2007 - 89

into the price of these raw materials
and ingredients.
"There have been situations where
we have bought into raw material,
because it is something we felt would
get us to an endpoint, only to find out
it priced our product way out of line,"
Ms. Sasaki said.
Helping to provide a greater supply
of organic ingredients is the fact that
more international producers have become certified, according to Ms. Geils.
"Historically, oils from South America
were not certified," she noted. "And
there is more product available now
from Europe that is certified."
When dealing with suppliers or raw
materials from outside the US, it is
important to ensure they are certified.
"If we were going to buy anything outside the US, we would make sure it is
certified and that USDA would recognize the certifying agency," Ms. Sasaki
said. "We have seen instances where it
may be OK for a European country, but
USDA will not allow that raw material
into the States."
Although organics remains only a
small part of the overall food industry, it is an extremely fast growing

USDA amends
National List
At the beginning of June, a new regulation
went into effect that made some products that
had carried the US Department of Agriculture's
organic certification no longer in compliance with
the rules. However, less than two weeks after that
regulation took effect, another rule was proposed
making those products again able to be labeled
as organic, according to USDA rules.
On June 9, a National Organic Program
regulation took effect stipulating that only
ingredients appearing on the USDA's National
List of Allowed and Prohibited Substances are
permitted for use in organic products; whereas,
some organic food processors had misinterpreted
the previous law to think they could use any
nonorganic agricultural substance in their organic
products if it determined the ingredient was
unavailable in an organic form by an accredited
certifying agency. The new rule impacted the use
of 38 nonorganic ingredients such as colors,
starches and oils that had been used in organic
products because of a misinterpretation of the
National List.
However, the USDA published an interim final
rule that was recommended by the National
Organic Standards Board to amend the National
List to include the 38 minor ingredients, and it
became effective June 21.

market, and larger companies that
may have been hesitant about getting into it, thinking that it's really
not their customer base or that there
are too many hurdles, are starting to
reconsider this stance.
Ms. Leavitt said the industry has
matured and is up to the standards for

mainstream producers. Today, food
processors can modify their product
lines using organic ingredients and can
hopefully capture another part of the
market without having to go through
all the learning pains they may have
experienced 10 or 15 years ago, Ms.
Leavitt observed.
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August 2007 / BAKING & SNACK / 93
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Baking & Snack - August 2007

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