Page 18 - Food&Drink Magazine May 2022

BY ASSOCIATION
AUSTRALIA’S certified organic sector contributes more than
$2 billion to the national economy each year and continues to grow at a rapid rate as consumers make conscious choices to improve their health and wellbeing, while considering the long-term sustainability of the planet.
This dynamic sector produces fresh fruit and vegetables, animal products, honey, pantry items, wine, beverages, cosmetics, skin care and pet food among other things, and spans supply chains from production, through to manufacturing and retail outlets.
The reach organic has across food and lifestyle segments both domestically and overseas is expanding, yet the current lack of a unified, legal ‘organic’ definition in Australia, and weak requirements surrounding the labelling of a product as ‘organic’, causes confusion and mistrust for shoppers and undermines confidence.
STRONG START, STAGNANT PRESENT
Australian Organic Limited (AOL), the peak body for the
organic sector, is focused on working with the Australian Government to deliver a fit for purpose regulatory process that is consistent with export requirements.
The organic industry is currently in the process of the most significant discussion regarding regulation since the National Standard for Organic and Bio-Dynamic Produce (the National Standard) was introduced in 1992 enforcing mandatory obligations for Australian organic or bio-dynamic products intended for export.
The Australian Government released a second edition of the National Standard in 1998, and since its inception, the National Standard has provided the organic industry with a framework that sets out comprehensive obligations around production, processing, supply chains, labelling and imports before a product can be certified as organic.
In Australia, there are six recognised approved certification bodies who can confirm organic operators comply with the National Standard to achieve organic certification, with the operation undergoing rigorous audits each year to maintain
This means there are currently no mandatory standard requirements or regulations that operators need to adhere to – across production, processing, supply chains and even labelling – in order to sell products within Australia that are claiming to be organic.
However, more than 3000 operators within Australia voluntarily adhere to the framework set out in the National Standard for their domestic sales, recognising that organic certification adds credibility to their product and helps to build trust with consumers.
As the demand for organic products has continued to grow, it has become apparent there are three main issues for Australian organic operators fuelled by the lack of domestic regulation:
1
In the absence of a domestic mandatory standard for use of the term ‘organic’ there is no requirement for an operator to be certified to sell organic products in Australia. This means non-certified operators can make organic claims on packaging and marketing without achieving certification.
Last year, the Australian Organic Market Report uncovered 31 per cent of shoppers who had purchased an organic product during the previous year believed they had been misled by organic claims on the product packaging.
Domestic regulation will ensure all organic claims on product labelling are authentic and will provide consumers with greater confidence when choosing to buy organic.
2
certification requires a significant commitment from
operators both commercially and systematically.
Due to the absence of domestic regulation non- certified operators claiming to be organic may use chemicals or practises that are not allowed under organic standards however they still sell their product for a premium price. This undermines the credibility of operators who are doing the right thing, and who then spend more time on education and awareness instead of building their markets.
3
Standard, Australia has government-to-government (equivalence) arrangements with various countries, including the European Union, Japan and Taiwan, however without a mandatory domestic standard, key trading partners such as the United States, Canada and Korea will not recognise Australia’s current domestic framework via equivalency arrangements as the domestic market requirements are not consistent with those for export markets.
Without these arrangements, producers are forced to enter arrangements with different certifiers and pay separate fees to meet specific regulations in each country they export to.
A mandatory domestic standard will deliver much- needed efficiency and certainty to organic producers, helping them to better compete in export markets.
LOOKING FORWARD
While there are many options for domestic regulation, AOL’s recommendation is to legislate the National Standard domestically as the best way forward given it is already
“ A mandatory domestic standard will deliver much-needed efficiency and certainty.”
In addition, without a mandatory domestic standard, Australian exporters face incredible red tape and economic burden because they must meet secondary organic standards requirements for each country they wish to trade in, adding further operational costs each year.
their certification.
While the National Standard
was, and still is, a world leading document requiring products claiming to be organic to be certified before they can be exported, its biggest shortfall was that it wasn’t made mandatory for the domestic sales of organic goods.
OPERATOR CREDIBILITY
Achieving organic
18 | Food&Drink business | May 2022 | www.foodanddrinkbusiness.com.au
Setting the standard
The organic industry is currently having the most significant discussion regarding regulation since the National Standard was established 30 years
ago. Industry body Australian Organic Limited CEO Niki Ford explains.
CONSUMER
CONFIDENCE
MARKET ACCESS
Through the National