A new bill was introduced to Parliament on 19 November, which offers a framework for regulating the sale or importation of organic goods in Australia, and stronger opportunities for exporting organic products.
If passed, The National Organic Standard Bill would make Australia the final OECD country to create a legal definition of the word organic, an action that has been strongly supported by organic producers and certification bodies this year.
The Organic Development Group, which includes all five organic certification bodies and the two largest peak groups, Australian Organic Limited (AOL) and the National Association for Sustainable Agriculture Australia (NASAA), along with Organic and Regenerative Investment Co-operative (ORICoop) and Certified Organic Biodynamic Western Australia (COBWA), has made protecting genuine organics producers a key priority.
NASAA general manager, Damien Rankine, said if the Bill was passed, the Australian Competition and Consumer Commission (ACCC) would have clear guidelines to ensure consumers were getting what they paid for.
“The ACCC currently has unclear definitions relating to the use of the term organic in Australia, with no specific requirements to meet a particular standard or to be certified, which creates confusion and erodes the trust our industry has worked hard to establish,” said Rankine.
“This Bill would provide a clear set of rules, and they could be established quickly and simply.”
Currently, products can be labelled and sold as organic in Australia with as little as one organic ingredient, leaving it to consumers to check for certification logos to ensure the label claims can be trusted. Conversely, Australian organic producers selling into overseas markets must adhere to strict export standards that specify strict requirements for certified organic ingredients.
During the hearing, representatives stated the unnecessary pressure of regulations was turning growers away from becoming certified organic producers, and having to apply for and receive organic certification from international trading partners, such as Japan, Korea and the United States, was making exports near-impossible.
These difficulties are only compounded by the shifting market state, with Incite's annual survey showing 97 per cent of importers and distributors across the Asia Pacific Region are actively reviewing new distribution opportunities.
Australia has been pushing for stronger export arrangements this year, recently signing Letter of Intent on Cooperation in the Field of Organic Products Certification with China to establish stronger agricultural ties and opportunities for collaboration and co-operation on organic goods.
Australia accounts for 60 per cent of the world’s certified organic farmland (53 million hectares) but only has a 1.36 per cent share of global organic retail sales. The industry could become more successful with stronger regulatory support, allowing more trading partners to recognise Australia’s export standard without needing additional certifications.
AOL chief executive officer, Jackie Brian, said the National Organic Standard Bill would establish a level of consumer protection that has been desperately needed.
“We know from survey data that consumers are being misled by labels that make unverified organic claims, which is unfair to those buyers and unfair to the producers who go through the lengthy and rigorous process of obtaining organic certification,” said Brian.
“It has been a loophole we have been calling to be closed for a long time, and we hope to work with all sides of politics to set the standard for consumers in Australia that is the norm for so many countries around the world.”
“If Australia had domestic regulation, it would help our government negotiate equivalency arrangements with other nations meaning producers would only need to attain one certification, the National Organic Standard established by this Bill, cutting red tape and stimulating export growth,” she said.
The details of the National Organic Standards Bill can be found here.
