< PreviousHere’s a little food for thought for those sitting on the fence about organic versus conventional food production. There once was a time in history, before World War II, when all crop production was entirely organic.Written by Anne Lindert-WentzellToday, health considerations, envi-ronmental concerns and societal attitudes are turning the tide in favor of the merits of organically grown and processed foods. This shift has led to an increase in organic agricul-ture since the early 1990s when certi-fied organic producers in the United States increased their acreage to meet consumer demand. This shift also war-ranted federal policy regarding the mar-keting of organic products. The Organic Trade Association (OTA) of Washington, D.C. has been in operation for over thirty years and is garnering recognition for all the right reasons. The OTA was established in 1985, “five years before the federal law was passed governing organic production,” says Laura Batcha, the association’s chief executive officer and executive director. What initially began with a small group of members involved in the supply chain quickly became an effort to, “harmonize standards and the recognition of certifi-cates.” These original members worked diligently to get the Organic Foods Production Act (OFPA), part of the 1990 Farm Bill, passed federally. Today, the OTA represents over 9,500 cer-tified organic businesses across 50 states. OTA’s membership includes organic growers, certifiers, distributors, proces-sors, exporters, retailers and farmers associations. The OTA serves as a voice and advocate for its members through its government and public promotion of the benefits of the organic sector and addresses all issues affecting sustainabil-ity practices. The two groups of members include trade members and associate members that hold steadfast to the process of organic agriculture but, unlike trade members, are not eligible to vote. Laura explains that in the 1980s, when organic farming was gaining momentum, various regional certification agencies, “maintained private standards and cer-tified to those. It made it very difficult for products to move through a supply chain and across the country because one group of standards would be differ-FEBRUARY 201830 ent from another.” This meant that these agencies, “might not be able to recog-nize each other’s certificates.” Harmo-nized standards facilitated trade in the organic market. “The real momentum started after 2002, which is when the final regulations were standard governing organic,” says Laura. This was also when the United States Department of Agriculture (USDA) organic label was put in place. “That was a catapult.” By that time, there was already a surge of consumers seeking organic products, with millennials proving to be the largest consumers. The media was certainly influential in creating a growing awareness among consumers of the issues surrounding exposure to agricultural chemicals. This, in turn, led to a push for the prohibition of the use of livestock antibiotics. “It was a growing awareness of how food is produced,” says Laura. Today, over eighty-two percent of American households buy some organic products according to OTA’s 2017 organic market analysis. “By that time, there was already a surge of consumers seeking organic products, with millennials proving to be the largest consumers.”31 BUSINESS IN FOCUS The OTA’s divisions include specialized councils for fiber; grains, pulses and oilseeds; dietary supplements and farmers’ advisory. All councils serve as the means by which members with a common interest in a particular commodity can meet to discuss education, best practices and information sharing with each other as well as the general public and consumers. These councils are, “working on increasing the domestic supply of those commodities,” says Laura. The fiber council represents a currently small but rapidly growing part of the organic market and is involved with fiber and textile products. In May 2017, this council held an organic fiber pop-up venue in Manhattan with twenty-four fiber brands and member businesses showcasing the benefits of organic produc-tion beyond food products. Sup-porting members and brands engaged the public in compre-hending the environmental friendliness of organic fibers. This event had, “everything from clothing to mattresses, bedding [and] home textiles in organic fibers,” explains Laura.The OTA’s dietary supplements council is similar to the fiber council in that it is focused on, “education and best practic-es that are unique to that segment of the marketplace.” The Farmers Advisory Council is the OTA’s largest and oldest and, “helps create a two-way conversation between the farming communities across North America,” says Laura. In fact, just recently, the Farmers Advisory Council met in Washington, D.C. to discuss the Farm Bill, which is renewed approximately every five years and enables policy makers to address issues related to agriculture and food, including organic. Topics included those related to agricultural conservation, bioen-ergy and research and trade. Political action committees (PAC) have long been used by trade associations, among others, to support public office can-didates who align themselves with an association’s interests and ideals. OTA’s organic PAC serves as a voice in Washington, D.C. to ensure elected officials consider and support all aspects of organic agriculture, farming and fiber and comprehend its importance in the economy when making policy making. The organic PAC is, “the only dedicated organic PAC of its kind,” affirms Laura. The PAC is, “really important in recogniz-ing that your champions have to run for office, and they have to raise money. You want to show your support for them. It really helps build those relationships and helps keep the members of Congress that are committed to organic in Congress.” The OTA has a strong foundation built upon numerous partner-ships with both government and non-government agencies. The association is, “an official cooperator with the U.S. Depart-ment of Agriculture (USDA) to help promote the export of organic products overseas to grow our export revenue for the organic trade,” says Laura. The Environmental Protection Agency (EPA) also works closely with the OTA. Recently, the OTA consulted with the EPA regard-ing a project whereby both looked at, “the impact of organic agriculture on helping to protect the Chesapeake watershed,” adds Laura. An example of a non-government agency with which the OTA is closely aligned is the Canada Organic Trade Association (COTA), which holds an independent status in the country, “to meet the needs of the organic sector in Canada specifically,” “Consumers for organic products care tremendously about the health of the environment, and organic agriculture has demonstrated benefits to the environment.”explains Laura. “We maintain an affiliation with them, and we have some board seats at OTA dedicated to members of the COTA board of directors. We keep a close alignment to provide the simple benefits between our members. There’s so much trade between Canada and the United States.” Also, the OTA works closely with the Environmental Working Group (EWG), an environmental organization specializing in toxic chemicals, public lands and corporate accountabil-ity through its advocacy work. This is important to the OTA because, “consumers for organic products care tremendously about the health of the environment, and organic agriculture has demonstrated benefits to the environment,” says Laura. There are a number of resources available to OTA’s members including an annual policy conference, the opportunity to advocate for organic on Capitol Hill, and the ability to work with the media in the coverage of organic issues. The OTA also has a top-notch regulatory team by which, “we track the review of standards for change in compliance requirements and engage with our members around those upcoming changes,” adds Laura. This benefits OTA members in that they are given an opportunity to respond and adjust to proposed standards. A recent report prepared for the OTA by a Pennsylvania State University agricultural economist has identified 225 counties in the United States as organic ‘hot spots.’ “It’s statistical analysis that‘s defined as a county that has a higher than average con-centration of organic operations that’s surrounded by other counties that have a higher concentration of organic opera-tions,” says Laura, “the net result being an economic benefit to those counties in an increase in household income or a decrease in poverty rates. “The hot spots are scattered across the country, but they have historically been concentrated and continue to be con-centrated in the northeast, the west coast [and] the upper Midwest,” says Laura, noting that emerging hot spots are being seen in Texas, Pennsylvania, the Mid-Atlantic [and] south of the Rocky Mountains. These hot spots have the ability to, “have an exchange of infor-mation [and] technical assistance within a certain geographi-cal area, whether it be through a non-profit or dedicated state department of agriculture.” Job-creating economic opportuni-ties then develop around such emerging businesses. As an advocate for the organic industry, the OTA has to monitor conditions, educate and serve as a mentor in a constantly changing landscape. The need to assess its effectiveness in the organic industry is an ongoing process. And it is a process not taken lightly. OTA’s board of directors, “have a good and well defined process for establishing strategic plans over the long term and then monitoring progress against those plans regularly,” says Laura. “So they have a very mature approach to strategic planning and monitoring.” This involves the board’s annual self-assess-ments and a membership survey that is, “very detailed in terms of membership as a whole,” and this process lends itself to, “having an opportunity to provide feedback not only on our effectiveness but on our priorities.”Looking toward OTA’s future, Laura believes that as organic products become more readily available to consumers across the country, this will initiate, “the opportunity for more people to participate more often in organic.” 33 BUSINESS IN FOCUS Mike & Mike’s Organics is Ontario’s only exclusive non-farm-based distributor of certified organic produce. It was founded in 2004 by Mike Fronte and Mike Dattoli, who are also childhood friends. Mike & Mike’s is actually the second business the pair have run together, after Fronte asked Dattoli to help him build Simply Organic, the renowned organics brand, which they sold in 2002.FEBRUARY 201834 Written by Samita SarkarWhen asked what inspired him to co-found Mike & Mike’s just two years later, Mike Fronte tells us that there were two aspects to his decision: one philo-sophical, and the other entrepreneurial. Fronte’s philosophy influences every aspect of the way he runs the business.“The philosophical piece is centered on my belief that we should all do our part to leave this place a little bit better than we found it. It’s important to understand that it’s not natural to subject the soil that we grow our food in to synthetic chemicals and fertilizers every day,” Fronte says. Fronte is far from the only one who feels this way. Fronte and Dattoli have managed to tap into a significant base of environmentally conscious consumers who are looking for an alternative to modern farming practices.“I’ve always been intrigued by organic farming, and amazed at the lengths our farmers go through to ensure that the soil is restored to balance by using what are really just century-old farming methods. That’s the type of industry I wanted to be associated with,” explains Fronte.The other part of Fronte’s decision was business related. Having worked in retail for well over ten years by 2004, he noticed that the organics market was just starting to gain momentum, and Mike & Mike’s had the potential to fill an important industry gap. “I recognized that in Southern Ontario there wasn’t one company that was providing a one-stop shop full-service distri-bution network for organic fresh food.”Today, the company, which continues to sell only certified organic food, actively distributes produce throughout Southern Ontario, doing business with most major chains as well as about a hundred independent retailers or grocers. You can find its produce in Longos, Fiesta Farms, Nature’s Emporium, Sobeys, Metro, and Walmart. Mike & Mike’s also distributes other select products, such as organic pastas and its own brand of snacks, which include nuts, seeds and dried fruit. The company works directly with trusted organic farmers, receiving their produce in its 40,000+ square-foot warehouse in Woodbridge, Ontario, which is just north of Toronto.35 BUSINESS IN FOCUS But Mike & Mike’s is not your typical food distributor—or even your typical organics distributor. The company operates on what Fronte describes as a “holistic approach to business,” with values that underpin each and every business decision. These include not only the products it sells, but how the facility is run and which organizations it chooses to partner or do business with.“When we set out in this business, it was to have a business that made a difference and not just one that focused on top-line revenue and bottom-line profitability. While running our business properly is definitely a primary focus, there are many facets to our business that we’re also very proud of,” Fronte shares.More specifically, in 2015 the Mike & Mike’s warehouse under-went impressive renovations so it could be retrofitted with the latest lighting and refrigeration. This was done to ensure that the business continues to run in an environmentally efficient manner as it grows. In fact, just a year before the retrofitting, the Mike & Mike’s facility underwent another upgrade to double its size, as it is now currently standing at 43,000 square feet. Fronte and Dattoli have also made a commitment to ensure that their truck fleet is always less than five years old, so that carbon emis-sions are kept to a minimum. Most importantly, Mike & Mike’s diverts upward of 90 percent of its waste every single month from landfills via repurposing and recycling the materials instead. The team works with waste management consultants who send them a monthly report card that ensures that landfill diversion percentages remain high. Fronte divulged that Mike & Mike’s waste management costs are probably around four times what competitors pay to send waste directly to a landfill, but the easiest and cheapest option isn’t necessarily the right one.FEBRUARY 201836 “The steps we take to ensure that our impact on the environment is minimal are costly, however that’s proper stewardship and what makes Mike & Mike’s unique,” he says.Another unique feature of Mike & Mike’s behind-the-scenes operational procedures is its partnership with Second Harvest Toronto, a food rescue and redistribution charity whose goal is to reduce hunger, landfill waste, and greenhouse gas emissions in the City of Toronto. The largest food rescue organization in Canada, it works across the supply chain from farmer to retail to make sure that no fresh food goes to waste in a city where people are going hungry.“We provide Second Harvest thousands of pounds of less than perfect food every month. Food that would likely not make it through the retail system, but it’s still too good to go into the dump or to be sent for animal feed. We send this good food to Second Harvest, and they then make thousands of meals a month,” Fronte tells us.“These are the things that we do that most of our customers probably wouldn’t see, but they’re all part of our holistic approach to running our business.”“Mike & Mike’s diverts upward of 90 percent of its waste every single month from landfills via repurposing and recycling the materials instead.”The approach has certainly been effective. Mike & Mike’s has repeatedly been named among Canada’s Best Managed Companies, a leading national business awards program sponsored by Deloitte, CIBC, National Post, Queen’s School of Business and MacKay CEO Forums. It recognizes Canadian-owned businesses with revenues of over $10 million in sustained growth, good financial performance and management practices, and other indicators. Such an accolade is an uncommon achievement for a company of Mike & Mike’s size, but it speaks to the importance of running a company with integrity and staying true to the values of your business.Poised for continued success in an increasingly health-con-scious and environmentally aware society, Mike & Mike’s seeks out candidates with a vision for growth. As the business is just shy of employing 50 people, Fronte says it still feels like a big family. He mentions to us that he looks for people who are honest and hard-working, who enjoy working with a team 37 BUSINESS IN FOCUS toward a common goal – and more so, who have a passion for food and personal growth. “17 years ago we began distributing organics. We didn’t know it at the time, but quickly came to realize we had identified a food trend. Today organics is no longer a trend and in fact it’s all we do. However, we never want to lose that edge. It’s important that our team continues to look for new business opportunities so we can continue to grow our business,” he describes.But even though the team is always looking for new opportunities to stay on top of food trends, don’t expect to find Mike & Mike’s competing with any of the Toronto area organics home delivery businesses.“This topic comes up again and again at our annual strategic planning session. But the conflict there is that we would be competing with our own customers, and that is something I just won’t do. We may take a particular line of snack items and make them available online, but as far as a home delivery service, it is just not in the cards for us. We would essentially be competing with the people who made us who we are, and that bothers me philosophically. We need to support our customers.”“We’re committed to organics. That’s what we do, and it’s all we do.”While Fronte tells us that he is committed to maintaining the Mike & Mike’s Organics brand as solely organic and B2B based, he is currently looking for acquisition opportunities for another distributor within Southern Ontario in order to help the business leverage buying power, logistics, and stay competitive. “We’re committed to organics. That’s what we do, and it’s all we do,” he emphasizes. “We’re a certified organics distributor and we want to maintain that. That is our immediate goal, but our long-term goal is to grow via acquisition. We recognize at a certain point that—pardon the pun—growing organically is not going to satisfy our needs.”The Mike & Mike’s team is specifically looking at acquiring a conventional foods company because that would keep the business competitive by avoiding pigeon-holing the company. Fronte’s goal is to turn that acquisition into a sister company or separate division of the main business, which is and will always be organic.38 As the market continues to change, many exciting things are on the horizon for this leading distributor that connects organic growers to ethically minded consumers, but its holistic approach endures. This approach permeates all aspects of its operations, both internally and externally.“We pride ourselves in what we do. There’s more to us than meets the eye,” says Fronte. 39 BUSINESS IN FOCUS Next >