Domestic Regulation in 2020Did you know that Australia is the last developed nation in the world to have an enforced domestic standard for the use of the word “organic”?
Australian Organic’s Strategic Priority for 2020
It is Australian Organic’s strategic priority to work with government and key regulatory bodies to deliver domestic regulation during 2020. This consistent approach to the organic industry will ensure Australia’s world class organic standard will continue to grow market access internationally and provide Australian consumers with confidence when choosing products that claim to be organic.
Gaining equivalency with export markets
The only way an Australian consumer can be certain a product is truly organic is to look for a certification mark. There are currently six marks used within Australia, each mark is attached to a certification body approved by Department of Agriculture (DoA) to the National Organic & Bio Dynamic Standard (NS) under the Exports Control Act (1982).
The National Organic Standard, via the use of OPCs, provides 81 countries with surety that the produce they are purchasing from Australian adheres to the rigorous certification and audit processes. However, within the domestic market in Australia, there are variations of Standards that make the consumption and production of organic products difficult to navigate.
Australian Organic, as the leading organic industry body, is proposing that the National Organic & Bio Dynamic Standard be enforced domestically to provide confidence in a dynamic growth industry. The Australian Organic industry is currently worth $2.6 billion, growing year on year since market data has been reported.
- Domestic sales in 2018 grew 15% vs the previous year
- Export tonnage was up 13% over the same period.
Industry consumer data shows that Australian shoppers are purchasing more organic products than ever before:
- 6 out of 10 shoppers have purchased organic product in the past 12 months
- 55% of shopper would choose an organic product with a certification mark in a like for like
- 51% recognise Bud logo as the mark of Australian certified organic. Read our latest consumer findings here.
Despite significant growth, Australian consumers are still confused or fooled at the register on a regular basis due to multiple standards and the prolific growth of “fake organics”. While the ACCC is tasked with managing consumer deception, its limited resources are not keeping up with the fast-growing sector requirements and the opportunists that are watering down the organic standard.
The National Organic Standard was written with the intention to be enforced domestically as clearly stated by Mr Crean in a Ministerial Press Release, dated 10 February 1992 when the National Standard for Organic & Bio Dynamic Produce was released; “I therefore intend to request the new National Food Authority to take the necessary action to ensure the regulatory controls on the domestic market parallel those which I am implementing for export”.
The Standard was and remains world class as stated by Mr Crean; “This is a hallmark achievement for the Australian organic produce industry which I understand has produced the first nationally agreed standard outside of the European Community.”
Engaging with industry through FSANZ to develop a definition that defines clearly the word “organic” will provide opportunities within the domestic and international markets. Providing consistency in both markets with allow discussion of equivalency to progress with confidence as international stakeholders have provided comment that this discrepancy limits trust in our exports.
We continue to support the co-regulatory model for the maintenance of the standard and certification program that underpins the organic industry.
One of the biggest impediments to the export of Certified Organic product from Australia is our lack of equivalency with chief markets, with a significant obstacle to us achieving equivalency being our lack of organic domestic legislation.
To enable us to achieve our primary objective, we must first achieve domestic legislation. We hope to effect this change by having the National Organic Standard introduced into the legislative framework during 2020.
AOL is working with Government and Industry to provide options for the implementation of domestic regulation. It is worth noting that the single biggest competitor to organic products domestically are “fake organic”. Domestic legislation will not only significantly increase exports for Australian Organic businesses, it will also remove the biggest competitor in their local market. We are hoping to achieve domestic legislation by 2021.