Australia’s organic industry has welcomed the broad-based and emphatic support for the introduction of domestic regulation, with more than 95 per cent of submissions to a Senate Inquiry in favour of the move.
The Senate Committee on Rural and Regional Affairs and Transport is currently assessing the merits of the National Organic Standard Bill 2024, which was introduced to Parliament in November to define the word “organic” and close a loophole that has allowed unscrupulous operators to label products as “organic” with as little as two per cent organic content.
Australia is the only nation in the OECD without this protection for consumers and for the thousands of organic producers who go through the rigorous process of certification and annual audit.
The organic industry has been spearheading the campaign for domestic regulation.
Jackie Brian, the Chief Executive Officer of peak advocacy group Australian Organic Limited, said it made sense to require all organic producers to follow the same set of rules, which is already the case when exporting overseas.
“This would create a level playing field, which is a win for consumers who want truth in labelling and an endorsement of the robust process that certified organic producers go through,” Ms Brian said.
“The National Organic Standard Bill is the best and easiest way to achieve this, and we welcome the support given to this simple and practical solution from across the political spectrum.”
The Senate Inquiry was initially due to issue its report by the end of January but has been granted an extension until 11 February.
“We are confident the Senate Committee has heard a resounding “Yes” to domestic regulation from the industry and we are hopeful it will be reflected in the report’s findings,” Ms Brian said.
“This is something the industry has been championing for over 10 years.”
Ms Brian said domestic regulation was not just about consumer protection, it could help unlock simplified and less costly access for more organic operators to export to key markets.
“We are seeing a real-time example in New Zealand where the recent introduction of domestic regulation has enabled the government there to advance equivalency negotiations with key trading partners,” Ms Brian said.
“Australia does not have equivalency arrangements with key trading partners such as South Korea and the United States, the world’s largest organic market. It means producers must spend considerable time and resources attaining additional certifications for these markets.
“Domestic regulation would give fresh impetus for equivalency negotiations with South Korea and the United States and deliver the organic industry a significant boost.”
The opportunity was highlighted in a separate Parliamentary Inquiry report released in November.
The “Trading North” report recommended Australia’s domestic regulatory framework be reviewed to ensure it aligned with international standards and potential rival jurisdictions, including mechanisms “to define and regulate organic products within Australia’s domestic market”.
Key facts
- Australia accounts for 60% of the world’s certified organic farmland (53 million hectares) but only has a 1.36% share of global organic retail sales*.
- Australia’s certified organic industry directly contributed $851m to the economy in 2022 – approximately 0.04% of gross domestic product (GDP), greater than the clothing manufacturing and processed seafood industries – with indirect benefits of $2.6b*.
- The certified organic sector directly employs approximately 12,500 people and supports 22,000 jobs*.
To learn more about the process of certification and the benefits of certified organic products visit www.austorganic.com.
ENDS
(*SOURCE: AOL Market Report 2023)
Media enquiries:
Matt Wordsworth – matt.wordsworth@bluehillagency.com.au – 0404 029 241
Tim Vetter – tim.vetter@bluehillagency.com.au – 0439 681 793
