Gaining Equivalency with Export Markets
At present, 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, Water and the Environment (DAWE) to the National Standard for Organic & Bio Dynamic Produce (National Standard or NS) under the Export Control Act (2020).
The National Standard, via the use of an Organic Goods Certificate (OGC), provides 81 countries with surety that the produce they are purchasing from Australia adheres to the rigorous certification and audit processes. This provides surety for the buyers in those markets that the produce adheres to the rigorous certification and audit processes as set out in the National Standard. However, within Australia there are variations of Standards that make the consumption and production of organic products difficult to navigate and results in confusion for consumers.
The National 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.”
Australian Organic Limited is proposing that the National Standard be enforced domestically to provide confidence and a level playing field in a dynamic growth industry.
Market Analysis & Opportunity
The Australian Organic industry contributes over $2 billion annually to the national economy and is growing year on year.
- The Australian organic market is delivering 7.9% market growth per annum*
- Australian organic exporters successfully reached 62 international markets in 2020
The 2021 Australian Organic Market Report shows that Australian shoppers are purchasing more organic products than ever before:
- 80 out of 100 shoppers have purchased an organic product in the past 12 months, that’s around 9 million Australian households
- 13% of households spend 50% or more of their food budget on organics
- 37% of organic shoppers increased their household food allocation to organic
- More than half of organic shoppers check for certification marks on their organic purchases
- 39% of shoppers say they would avoid purchasing an organic product if it did not display a certification mark
- 62% of shoppers recognised the Australian Certified Organic Bud trademark logo
*Reeves, M. (2020), IBISWorld Organic Farming in Australia.
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 products simply claiming to be organic. 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 2021 Australian Organic Market Report revealed that almost 9 in 10 shoppers did not know there was a single legal definition for the term organic in Australia. Worryingly, 31% of shoppers who purchased an organic product in the past year believe they have been previously misled by organic claims on product packaging.
In June 2020, Australian Organic Limited submitted, on behalf of its members, a discussion paper outlining the opportunities for future economic and industry growth should a mandatory domestic standard be implemented. Providing consistency in both markets will allow discussion of equivalency to progress with confidence as international stakeholders have provided comments 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.