ENERGY EFFICIENCY &
SUSTAINABILITY
in Organic Food Supply
JAMES W. KEYES
Chairman, Key Development LLC;
Advisor, Principal Solar
R. MICHAEL MARTIN
Executive Vice President, Business
Development, Principal Solar
BRETT T. GAGE
Research Assistant
© 2012 Definitive Solar | All rights reserved.
ENERGY EFFICIENCY & SUSTAINABILITY
in Organic Food Supply
James W. Keyes, R. Michael Martin, and Brett T. Gage
INTRODUCTION
Over the past few decades, the organic food industry has gained increasing attention among various sectors of the
population. Consumers and suppliers, alike, have facilitated this growth by appealing to a health and wellness conscience
that grew out of the 20th century. Until the early 20th century, there was no distinction of “organic” foods—in fact, nearly
all foods were organic by nature. However, as scientists discovered solutions to some of the problems that plagued the
agriculture industry, there arose a need for distinguishing between traditional, organic food supply and genetically modified
alternatives (“GMOs”).1
With the growth of the organic food industry is a parallel trend of social responsibility showing that consumers across
all sectors are not only demanding great products at affordable prices, but also understanding that their products
were produced with minimal harm to the environment. More than ever, corporations across the nation are being held
accountable for the footprint that their products leave behind. NRG Energy CEO, David Crane explains, “Every CEO I know
wants to identify their company with sustainability. Their employees are demanding it, their customers are demanding it,
and the next generation of American consumers is demanding it”.2
Examining the food industry, ONE OF THE BIGGEST QUESTIONS
presented to suppliers is how to balance the quality that consumers
ask for and the affordability that they need.
Twentieth century production shifted to GMOs and unsustainable practices as they were
often cost effective and increasingly productive. As the industry attempts to reassess
its approach, the problem of affordability and quality become formidable hurdles. While
the solution to these issues is multi-faceted, a focus on sustainable farming and energy
efficiency presents itself as a primary step.
In recent years, ALTERNATIVE
ENERGY SOURCES, such
as solar, have become
increasingly cost effective and
technologically feasible.
2
Subsequently, they are positioned for great expansion into the supply and
retail of organic foods. Paired with additional technology, such as Leadership
in Energy and Environmental Design (LEED)—certified facilities that reduce
environmental impact, the food supply industry has the tools to make great
progress in sustainability and energy efficiency.
ENERGY EFFICIENCY & SUSTAINABILITY IN ORGANIC FOOD SUPPLY
SOCIAL RESPONSIBILITY in the Food Supply Industry
To understand the ties between social responsibility and organic foods, it is important to understand precisely what
“organic” implies. Social responsibility lies at the heart of organic foods, and begins with the production process. Organic
production is regulated by the US Department of Agriculture (USDA) to meet stringent standards designed and enforced
by over 90 organic certification agencies globally.3 Generally defined, organic certification requires that foods be produced
without the use of genetic modification, synthetic hormone use, unsustainable farming practices, or certain substances for
production and processing. The USDA’s National Organic Standards Board explains, “The primary goal of organic agriculture
is to optimize the health and productivity of interdependent communities of soil life, plants, animals and people”.4
Organic food
supply has deeper
impacts than social
responsibility on
the farm.
To consumers, some
of the most important
factors in choosing
organic foods are the
health and wellness
implications.
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PERSONAL HEALTH—In a variety of studies comparing organic foods to their conventional counterparts, the health benefits of organics proved considerable. Reports
show that organic foods often contain greater vitamins and nutrients, while reducing levels of nitrates and toxins.5
ANIMAL WELFARE—Another important consideration to consumers of organic products is the conditions in which animals were raised. Organic farming ensures that
animals are fed an organic diet, and treated humanely.
ENVIRONMENTAL PRESERVATION—Consumers of organic food products are ensured
that their food was produced with minimal impact on the surrounding environment. This means that farmers reduced pesticide use, conserved water resources,
and maintained healthy soil. In addition, transportation costs and related pollution
are reduced dramatically by producing food locally.6
3
CASE EXAMPLE: How Whole Foods Paved the Way
Until Whole Food Markets opened its doors in 1980, there were fewer than six natural grocers in the United States.
While demand for organic food had grown as consumers recognized the greater value of these products, supply of organic
food was relatively fragmented. Many organic food suppliers were smaller, local operations without serious business
infrastructure and experience.
Whole Foods Market, which began as one of those few natural grocers, paired the provision of healthy, sustainable
foods with a business strategy that redefined the industry. Whole Foods began expanding out of Austin, TX in 1984, and
achieved rapid growth through the acquisition of other natural grocers and opening new stores. As the first certified organic
grocer, Whole Foods’ success paved the way for an industry that had previously struggled to compete with traditional food
supply.6 As the market for organic food expanded significantly, the restaurant industry began a similar progression. By 1999,
the first certified organic restaurant opened in the United States.7
(1995-2008 US Department of Agriculture Data)
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ENERGY EFFICIENCY & SUSTAINABILITY IN ORGANIC FOOD SUPPLY
THE NEXT STEP: LEED Certification in Food Retail
The shift from industrial, mass-produced foods to wholesome, organic options is evidence of the changing mentality
among consumers in recent years. Certified organic food options provide consumers with the understanding that they
are not only benefitting their personal health, but also their environment. This mindset can be expanded beyond the
implied farming and agriculture techniques and applied to the facilities and infrastructure with LEED certification in the
food supply industry.
The U.S. Green Building Council created the Leadership in Energy and Environmental Design standards as a means of
certification for building and development. LEED certification could be considered the “Certified Organic” equivalent in
infrastructure. While a handful of restaurants across the Unites States have met LEED standards, this trend has yet to build
the momentum of its organic counterpart.
WHAT IS LEED CERTIFICATION?
LEED certification standards ensure that buildings are
sustainable considering a wide range of attributes.
From their design to construction and operations, LEED certified buildings deliver the assurance of environmental and
financial benefits. While LEED certification ranges from basic certification to Silver, Gold, and Platinum levels of accreditation,
each LEED project is designed with the same goals in mind—outlined below by The U.S. Green Building Council:8
• Lower operating costs and increase
asset value
• Reduce waste sent to landfills
• Reduce harmful greenhouse gas
emissions
• Be healthier & safer for occupants
• Conserve energy and water
• Qualify for tax rebates, zoning
allowances and other incentives in
hundreds of cities
For restaurants, LEED certification offers additional definition in the field of sustainability. Some national chains have
begun testing LEED certified facilities at their retail locations.
Among these chains are Arby’s, Chipotle, McDonalds, Subway, and Starbucks.9 In addition to these national chains,
many smaller local restaurants across the country have taken
the same initiative.
Above: McDonald’s first LEED Certified restaurant, Chicago, IL.10
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5
LEED POTENTIAL in Food Production
Beyond the growth that LEED certification has seen in the restaurant industry, among others, the
adaptation of LEED standards for use in agriculture facilities has shown its own unique potential.
Although there are standards typically applied to LEED facility ratings that would not apply in agriculture
facilities, such as their proximity to public transport, Michigan State University managed to qualify the first
agriculture facility in North America for Silver LEED certification.
MSU’s Kellogg Biological Station
met LEED standards by EXCEEDING
industry energy efficiency
standards by 38 percent.
In an effort to cut the carbon footprint of its building process, up to 35 percent of the facility’s building
materials were sourced locally (within 500 miles). Additionally, MSU took steps to decrease emissions from
refrigerant systems and improve internal air quality.
Program Director Kay Gross concluded, “This new facility allows
us to demonstrate to all dairy farmers how to incorporate features in a new barn that save energy, features that are both
good for the environment and save them money”.11 This positive
experience in expanding LEED certification to agriculture demonstrates the potential for farmers to push their sustainability efforts
beyond organic farming practices. While no such integration has
taken place yet, LEED certified facilities provide the foundation for
a complete integration with a broader organic food supply effort.
As Gross mentioned briefly, further integration of agriculture and
LEED standards would not only be socially and environmentally
productive, but also financially advantageous.11 While project
costs for LEED projects are typically upwards of 2.5 percent more
expensive than traditional building costs, the efficiency and
energy requirements of LEED projects are expected to offset the
higher upfront costs. As evident from Michigan State’s results of
38 percent energy saving, the longer-term savings resulting from
LEED certification are a significant financial incentive for farmers,
restaurants, and retailers, alike.11
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ENERGY EFFICIENCY & SUSTAINABILITY IN ORGANIC FOOD SUPPLY
WATER—Blue is the New Green
Social responsibility and sustainability are typically associated with climate change and carbon emissions. Until
recently, water preservation has received less attention from the masses. Unlike the energy sector, where issues such as
higher gas prices have prompted heightened attention from the public, water has remained relatively
inexpensive. As a result, over-consumption and pollution have slowly grown, producing consequences
that the population is just beginning to comprehend.
A majority of the earth’s surface is covered in water, however only an estimated three percent of that water is fit
for the consumption of humans. Despite these statistics, resource management has been inadequate, and agriculture
has historically been one of the country’s most wasteful industries. The USDA reports, “…agriculture is a major user of
ground and surface water in the United States, accounting for
approximately 80 percent of the Nation’s consumptive water use
and over 90 percent in many Western States”.19 It is reported that
the average hamburger requires 630 gallons of water to produce.20
A variety of water conservation methods
currently exist in agriculture.
Below are some of commonly practiced conservation methods:
• IRRIGATION SCHEDULING—By understanding when and where
to irrigate crops, farmers can be significantly more efficient in
their water usage.
• WATER RETURN SYSTEMS—By catching and reusing water
as it runs into the low end of a field, irrigation becomes
increasingly sustainable.21
• CONSERVATION TILLAGE—By reducing or more efficiently
tilling agricultural land, water runoff as well as evaporation is
reduced.
Equally important to conserving water on the farm is ensuring
that farming practices reduce pollution to local water supplies.
Waste generated from livestock and fertilizers accounts for 48
percent of pollution in bodies of water across the United States.22
By reducing fertilizer use and ensuring proper disposal of livestock
waste, the agriculture industry can significantly increase its efforts
towards sustainability.
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ENERGY EFFICIENCY & AGRICULTURE—Why Solar Makes Sense
While LEED certification in agriculture facilities seems a logical progression from organic farming, there are ample
alternatives to perpetuate social responsibility and environmental preservation. The most notable of these alternatives
is through renewable energy on the farm. Of such renewable resources, none appear more applicable to the agriculture
industry than solar.
A primary concern in solar power facilities is the frequency and consistency of their access to sunlight. Fortunately, the
sunlight and space that are required by crops and livestock correlate very well to solar applications. Below, two maps of solar
radiation and farm concentration in the United States speak to this point. While solar may not be the perfect alternative for
every farm, the significant overlap in these maps demonstrates areas in which solar power has great potential.12,13
Beyond its demonstration of solar as a viable option in
agriculture, the farm density map substantiates another
point: many farmers need solar not as an alternative energy
source, but as a primary energy source.
Considering the population and density of factory farms
on the US map (right), it becomes evident that much
farmland is distanced from the infrastructure where traditional utilities provide power.
In many cases, photovoltaic (PV) solar
systems are more economical for farms.
Rather than paying for extensive power lines
and transformers involved in sourcing power
from the grid, solar can independently provide
power to these locations.
According to the Union of Concerned Scientists,
“In some areas, the distance from a power
source at which PV becomes more economical
than new transformers and electric lines is
surprisingly short—often as little as 50 feet”.14
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ENERGY EFFICIENCY & SUSTAINABILITY IN ORGANIC FOOD SUPPLY
More so than other renewable energy solutions,
solar has been easily diversified for a variety of
farming applications.
Due to its scalability, which ranges from small individual projects to massive
grid-contributing solar fields, solar is well suited for nearly any energy
requirement in agriculture.
THESE SOLUTIONS INCLUDE:15
• Water Pumping
• Aquaponics
• Electric Fences
• Water Heating
• Crop Drying
• Cold Storage
• Irrigation Systems
• Greenhouses
• LED Lighting
• Barn/Farm
Electricity
One farmer, who incorporated a solar powered greenhouse facility in her commercial operation explained, “This is not a farout alternative kind of building. This is a very straightforward moneymaking operation”.14 She goes on to explain that solar
energy reliance has provided her business with longer-term security. In an industry where one bad growing season can
bankrupt an operation, losing power from storms or energy shortages on the grid can have serious implications. Buildings
designed to harness solar energy are more reliable in regulating growing temperatures and providing constant power.14
Finally, solar provides additional benefits by reducing the
reliance on fossil fuels. According to the United Nations Food
and Agriculture Organization, approximately 20 percent of global
greenhouse gas emissions and 30 percent of energy consumption
can be attributed to the food sector.16 Not only are fossil fuels
costly to the environment, but they also require increased labor
when compared to low-maintenance solar. In order to transport
fuel to and around the farm for equipment, there is a steady labor
requirement that solar effectively eliminates, saving time and
money for growers.
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9
SOLAR—Stability for Local Farming Initiatives
Closely tied to the emphasis on organic farming is a focus on fostering local
food supplies. Local farms are recognized as having significant positive impacts on
their communities. Not only do they maintain green space and reduce pollution,
but they also create jobs and maintain the connection between producer and
consumer. By sourcing foods locally, operations become increasingly healthy
and sustainable. Smaller farms foster crop diversity and more wholesome food
products. Additionally, by reducing the distance travelled from farm to plate,
local farming initiatives cut carbon emissions.17
UNLIKE LARGER INDUSTRIAL AGRICULTURE PRODUCERS, LOCAL FARMS OFTEN HAVE REDUCED FINANCIAL STABILITY.
A single bad harvest can push one of the remaining
For these smaller farms, yet another
565,000 family farms in the US out of business, like
opportunity arises for solar power:
millions of others in recent decades.17
PROVIDING FINANCIAL STABILITY.
By integrating solar utilities into farmland and agriculture facilities, farming operations can produce more electricity
than they require. While these situations are highly dependent upon the scale and location, they have become increasingly
plausible as solar PV equipment costs have steadily declined in recent years. Through returning excess energy produced
by solar to the grid, individuals and small businesses can receive credits against their electricity bill as well as accumulate
renewable energy certificates (REC’s) based upon their system’s overall electricity output. These RECs can be sold via shortand long-term contracts, and are of great value to utilities, which are required to meet certain renewable energy quotas. As
such, the clean energy production through solar can supplement traditional farming income.
The practice of supplying clean energy to the grid and selling
credits is likely to become increasingly productive as clean
energy mandates on utilities expand.
By 2020, utilities across the nation will be required by law to
source certain percentages of their energy from renewable
sources. “[The market for selling renewable energy credits]
hasn’t yet seen its potential. It hasn’t yet developed into a
streamlined process,” notes Heather Rhoads-Weaver, founder of an energy market-research consultancy company.18
Photo Credit: agriculturesolar.com
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CONCLUSION
As the growing social conscience expands into diverse industries nationwide, consumer buying habits are changing
and influencing how and where their products are produced. Focusing on the supply and retail of foods, these changes
in demand have prompted significant growth of the organic food industry and sustainable alternatives. Traditional
supermarkets are scrambling to increase their organic offerings, while restaurants and markets with certified organic
approval are expanding rapidly. Though consumers find greater satisfaction in choosing certified organic products off the
shelf or menu, there is still vast room for the expansion of social responsibility in the food supply industry.
The optimized use of water is now critical as climate change and accelerating
demand are straining water supply. Protecting the quality of water is also paramount,
as nitrates and pathogens cause disease and threaten communities. As consumers gain
an understanding of the importance of water preservation, statistics such as 80 percent
use of consumer water and 48 percent of water pollution will fall under high scrutiny.
Ameliorating these unsustainable practices has become a substantial hurdle for the
food industry to overcome.
One of the biggest opportunities in sustainability
is energy efficiency.
For the food industry, this starts at production and continues even beyond the sale
of food items. LEED standards for buildings and infrastructure provide avenues for
farmers, suppliers, and retailers to expand this effort. Not only does LEED certification
foster efficiency, but it also generates financial incentives through savings and positive
market perception in a time where every company looks to be viewed as “green.”
Paired with efficiency in design, solar energy represents a strong contributor to the
sustainable food supply. As the costs of photovoltaic solar equipment decline steadily
and technology continues to improve, the demand for effective sustainable alternatives
to fossil fuels and traditional utilities has climbed notably.
THE RESULT: solar is poised for heavy contributions to the food industry at every level.
Through its adaptable technology and relatively low maintenance requirements,
solar energy can replace or extend existing infrastructure and solve unique problems
in powering agriculture.
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ENERGY EFFICIENCY & SUSTAINABILITY IN ORGANIC FOOD SUPPLY
About the Authors
JAMES W. KEYES
Chairman, Key Development LLC; Advisor, Principal Solar
James W. Keyes is a Horatio Alger recipient and definition of the “rags to riches” American Dream.
He currently serves as chairman of Key Development LLC and draws on his impressive track record as
CEO and chairman of Blockbuster Inc. to serve as advisor to Principal Solar. James is renowned for his
leadership and ability to solve complex business challenges based on his considerable experience
overseeing national retail chains.
Prior to joining Blockbuster in 2007, James served as the President and CEO of 7-Eleven from 2000 until 2005, retiring upon
its sale to Seven & I Holdings Co. He also served as CFO and COO during his 21 years at the company. Under his leadership,
the company experienced record sales and profits and implemented new retail systems technology that improved product
assortment decisions in every store. He also ushered in a new era for 7-Eleven through the introduction of a host of new
electronic services. Prior to serving as president and CEO, Keyes held a variety of positions at 7-Eleven, including chief financial
officer, executive vice president and chief operating officer. Keyes retired from 7-Eleven upon the sale of the company in 2005.
Previously, Keyes worked for Gulf Oil, and in 1985 joined CITGO Petroleum, which was then a subsidiary of 7-Eleven Inc.
James graduated cum laude and Phi Beta Kappa with a Bachelor’s degree from the College of the Holy Cross in Massachusetts,
and earned an M.B.A. from Columbia University. Keyes is a member of the Advisory Board of Principal Solar, Inc.
R. MICHAEL MARTIN
Executive Vice President, Business Development,
Principal Solar, Inc.
R. Michael Martin, a long-time and passionate supporter of renewable energy and sustainability
practices, has over 20 years experience in the information technology industry in diverse
business development roles. During his successful career in technology, Michael consistently
provided high-value solutions to large enterprises for strategic aspects of their operations. A key to Michael’s success has
been creative problem-solving with senior management of large corporate customers.
Michael most recently led the sales efforts of Aquire’s strategic workforce planning solutions. Previously, he led i2
Technologies’ largest strategic partnerships, such as the global IBM alliance, which spearheaded the company’s dramatic
growth. Additionally, Michael worked in the systems integration and consulting field primarily with SHL Systemhouse
(now a part of HP/EDS) and as a sales leader at Unisys Corporation.
Michael earned his B.B.A. in International Business from The University of Texas at Austin, which included a year of study
at the Université de Paris. When he’s not passionately promoting solar, Michael is busy with his family, cycling, travel,
fund raising and a variety of social business and community projects.
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BRETT TYLER GAGE
Lead Researcher, Principal Solar
Brett Tyler Gage is a talented researcher, financial analyst and business development
advisor, with expertise in environmental science, economics and business. He brings
keen insight and an inquisitive interest into the unique and rapidly changing intersection
between the corporate world, climate change and sustainability. A graduate of the
Lawrenceville School with high honors, he attends the Northwestern University.
.
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ENERGY EFFICIENCY & SUSTAINABILITY IN ORGANIC FOOD SUPPLY
ENDNOTES
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Cramer_Gets_a_Charge_Out_of_NRG>.
3.
“National Organic Program: Consumer Information.” Agricultural Marketing Service. N.p., n.d. Web. July 2012. <www.ama.usda.gov>.
4. Gold, Mary V. “Organic Production and Organic Food: Information Access Tools.” Organic Production and Organic Food: Information Access Tools. N.p., n.d. Web. July 2012. <http://www.nal.usda.gov/afsic/pubs/ofp/ofp.shtml>.
5. http://www.ota.com/organic/benefits/nutrition.html
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<http://www.wholefoodsmarket.com/values/organic.php>.
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8. “What LEED Delivers.” What LEED Delivers. US Green Building Council, n.d. Web. July 2012. <http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1990>.
9. “11 Surprising LEED-Certified Restaurants.” The Daily Green. N.p., n.d. Web. July 2012. <http://www.thedailygreen.com/environmental-news/latest/leed-certified-restaurants>.
10. Shapiro, Wendy B. “The Golden Arches Go Green.” Green Bean Chicago. N.p., n.d. Web. July 2012. <http://www.greenbeanchicago.com/>.
11. Haan, Mat. “Michigan Dairy Review.” Michigan Dairy Review. N.p., n.d. Web. July 2012. <https://www.msu.edu/~mdr/vol15no3/KBSLEED.html>.
12. “Photovoltaic Solar Resource.” NREL. N.p., n.d. Web. July 2012. <http://www.nrel.gov/gis/images/map_pv_national_lo-res.jpg>.
13. “Factory Farm Map.” Factory Farm Map. N.p., n.d. Web. July 2012. <http://www.factoryfarmmap.org/>.
14. “Up With The Sun: Solar Energy and Agriculture.” Union of Concerned Scientists. N.p., n.d. Web. July 2012. <http://www.
ucsusa.org/clean_energy/smart-energy-solutions/increase-renewables/up-with-the-sun-solar-energy.html>.
15. “About Agriculture Solar Energy.” Agriculture Solar Power. N.p., n.d. Web. July 2012. <http://www.agriculturesolar.com/3_agriculture_solar_power.html>.
16. “FAO Media Centre: “Energy-smart” Agriculture Needed to Escape Fossil Fuel Trap.” FAO Media Centre: “Energy-smart” Agriculture Needed to Escape Fossil Fuel Trap. N.p., n.d. Web. July 2012. <http://www.fao.org/news/story/en/item/95161/icode/>.
17. “Sustainable Family Farming.” Family Farms, Why Family Farms Important. N.p., n.d. Web. July 2012. <http://www.sustainabletable.org/issues/familyfarms/>.
18. Gangemi, Jeffrey. “Selling Power Back to the Grid.” Boomberg Business Week. N.p., n.d. Web. July 2012. <http://www.businessweek.com/stories/2006-07-05/selling-power-back-to-the-grid>.
19. “USDA ERS - Irrigation & Water Use.” USDA ERS - Irrigation & Water Use. N.p., n.d. Web. July 2012. <http://www.ers.usda.gov/
topics/farm-practices-management/irrigation-water-use.aspx>.
20. Emami, Gazelle. “Earth Day 2010: 9 Reasons Why Blue Is The New Green (PHOTOS).” The Huffington Post. TheHuffingtonPost.com,
22 Apr. 2010. Web. 23 Aug. 2012. <http://www.huffingtonpost.com/2010/04/22/9-reasons-why-blue-is-the_n_546975.html>.
21. “Water Use Efficiency.” Water Use Efficiency. N.p., n.d. Web. July 2012. <http://www.water.ca.gov/wateruseefficiency/agricultural/>.
22. “The Issues: Water Pollution.” Water Pollution, Industrial Agriculture Leading Cause. N.p., n.d. Web. July 2012. <http://www.
sustainabletable.org/issues/waterpollution/>.
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