The Organic Development Group (ODG), which represents nine of Australia’s largest organic industry organisations, says momentum is growing towards new consumer protections following the release of a Senate Committee Report.
The report states that the lack of regulation in the sector leaves it open to greenwashing and exploitation.
The Rural and Regional Affairs and Transport Legislation Committee has spent the past two months reviewing the National Organic Standard Bill, which seeks to introduce a legal definition of organic goods, following the lead of all other OECD nations.
In its report, the Committee noted that exporters must comply with strict rules on organic content, but there is no equivalent standard for the import and sale of domestic organic goods.
“The lack of clear domestic regulation leaves some consumers vulnerable to greenwashing or exploitation as operators can claim to sell organic produce without any certification,” the report said.
The Committee also recognised the potential benefits of domestic regulation and, while not endorsing the Bill in its current form, acknowledged the unfair burden placed on businesses that have undergone certification.
“The Committee believes that a properly designed regulation could be beneficial for import and export markets along with the domestic market and could provide additional consumer confidence in Australian produce,” the report said.
Jackie Brian, CEO of Australian Organic Limited and a member of the ODG, said the report brings domestic regulation a step closer.
“ODG members welcome this report and its endorsement of the need and benefits of domestic regulation,” said Brian.
“We now have reports from committees in both houses of Parliament on the gaps in Australia’s regulatory framework.
“The Trading North report handed down by the Standing Committee on Agriculture highlighted last November the very real need to harmonise Australian and international organic standards.”
National Association for Sustainable Agriculture Australia Organic general manager Damien Rankine said it was encouraging to see political support for domestic regulation.
“The organic industry is lined up behind this essential reform as it will assure consumers that when they see ‘organic’ on a label it has strong legislation behind it,” Mr Rankine said.
“It will protect our valuable customers and it will protect an industry that contributes more than $2.3b to the Australian economy each year.”
Ms Brian added that the Bill would simplify the system by aligning rules for import, export and domestic sale.
“It also has the potential to open up valuable markets overseas. Some of our key trading partners require Australian producers to acquire their own certification. If Australia had domestic regulation the Australian government would have a powerful argument for equivalency arrangements. This would take costs out of the system.”
While supporting the concept of domestic regulation, the Senate Committee Report identified three issues with the National Organic Standard Bill, including the proposed definition of “organic”, providing legislative power for the Department of Agriculture, Fisheries and Forestry to act as the regulator, and a recommendation for a further scoping study.
Katrina Kehoe, Director and owner of certified organic food producer Kehoe’s Kitchen, said while the report is moving in the right direction, she was disappointed by the lack of a clear plan of action.
“We are the last country in the OECD to do this and it was raised in the 1990s,” Ms Kehoe said. “It’s been 35 years of talking.”
In its submission to the Senate Inquiry, Kehoe’s Kitchen highlighted that while it could afford USA Organic and Korea Organic certification, requiring each supplier to do the same was “impossible.”
“Looking at kimchi as an example, it has seven ingredients. We cannot ask 50-plus farmers to outlay this cost so that we may try to enter a market, with no guarantee to purchase from them,” the submission said.
Ms Kehoe said it would be a waste of their suppliers’ money and resources.
“Kehoe’s cannot export organic to the USA until we have domestic regulation, it’s as simple as that. We have 100% Australian ingredients in 100% Australian packaging, made by 100% Australian family-owned businesses and we want to export organic, but we can’t. Our government should be doing everything possible at warp speed to increase exports and decrease inflation. What more is there to discuss?”
Ms Brian said the issues could be addressed with minor amendments to the Bill and called for government support for domestic regulation and a commitment on a timeline for implementation.
“The certified organic industry has been lobbying for this change for many years,” Ms Brian said.
“We look forward to working with all parties who have an interest in the prosperity of our industry and the truth that Australian consumers demand in labelling.
“We are so close now to a positive outcome on domestic regulation and I am sure that with hard work, good faith and constructive dialogue, it can be achieved together.”