Proposed changes to organic labelling would give consumers full transparency and clear up “muddy” waters, some producers say.
Australia has strict export laws for organic goods, but produce sold within the country does not need to meet a particular standard or be certified to be labelled “organic”.
A Senate committee is currently examining the National Organic Standard Bill, tabled by Nationals senator Bridget McKenzie late last year, and an inquiry report is due by the end of the month.
The bill aims to regulate the sale of organic products within Australia, regardless of where they are from.
Certified organic store owner Tammie Phillips says national regulation would stop greenwashing. (ABC News: Billy Cooper)
Tammie Phillips, a certified organic food business owner in Sydney who has dedicated significant time to build consumer trust, said there was not “an even playing field” among organic producers.
“The fact that it isn’t regulated definitely does allow for other producers to greenwash,” Ms Phillips said.
She believed regulation was necessary to stop fraudulent operations and simplify the way consumers shopped for certified organic produce.
The word “organic” can be used in Australia without a particular standard or being certified. (ABC News: Billy Cooper)
South Australian certified organic vegetable grower Shane Eldridge said a national standard would provide full consumer transparency and align producers.
“It would clear up any waters that perhaps are muddy, and consumers could buy in confidence and know that it’s actually a certified organic produce,” he said.
Certified organic produce is grown and processed without synthetic fertiliser, chemical or genetically modified organisms.
Certified organic produce is chemical-free and grown without synthetic fertiliser. (ABC News: Carl Saville)
Consumer protection needed
Shadow Minister for Agriculture David Littleproud established an Organics Industry Advisory Group in 2020 under the former government, to investigate Australia’s organic regulation.
“I think Australian consumers are getting done over by foreign imports, that can have less than 2 per cent of their ingredients as organic and put an organic sticker on it,” he said.
The lack of organic-labelling regulation is leaving consumers in Australia exposed to fraud. (ABC News: Jonathon Daly)
Australian Organic Limited chief executive Jackie Brian said organic certification was not legally required for a product supplied in Australia to be described as organic.
Ms Brian said the loophole allowed “unscrupulous operators put the word organic on the packaging when not all of the ingredients are organic”.
She said the onus fell on consumers to navigate through labels to ensure the product was organic.
“Unless they’re buying something that’s certified organic with a trust mark, they may be buying a product that only contains a very small amount of organic product,” she said.
Jackie Brian says domestic regulation would unlock export opportunities. (ABC News: Billy Cooper)
Unlocking export opportunities
Besides preventing fraud and creating consumer transparency, the proposed regulation would also unlock “huge export opportunities”, according to Ms Brian.
But, she said, as the last OECD country without a legal definition of the word “organic” Australia was at risk of falling behind.
She described current export process of certified organic produce as “complex and costly”, requiring farmers to prove their credentials to each individual country.
She said under the proposed bill, the government could negotiate recognition of the Australian National Standard for Organic and Bio-Dynamic Produce.
The responsibility falls on consumers to understand the different trademarks for certified organic foods. (ABC News: Carl Saville)
“Farmers would only need to certify their product once and that would be recognised internationally,” she said.
According to the 2023 Australian Organic Market Report Australia is home to the most certified organic land in the world — more than 53 million hectares.
“Globally, the opportunity [for the industry] is almost $300 billion and today Australia has less than 1 per cent of that global opportunity,” Ms Brian said.
She said the lack of regulation was complicating exports to some of the largest export partners, including the United States, South Korea, and limiting wine and beef exports to Europe.
Australia homes the most certified organic farmland in the world with 53 million hectares. (ABC News: Carl Saville)
“There really is a big opportunity to be unlocked, if we get this regulation in place,” she said.
Certified organic food business owner Ms Phillips said simplifying current export processes by international equivalence would eliminate complicated trade hurdles.
“It would be quite a game change for us,” she said.
Government yet to take position
In March 2023 former Labor Federal Agriculture Minister Murray Watt decided against implementing regulation the previous government worked on.
At the time, he said the decision was based on two separate cost benefit analyses which found the cost would outweigh the benefits.
“While a mandatory domestic standard could provide a range of potential benefits for organic sector, the costs of designing, monitoring and enforcing an economy-wide regulatory scheme of this nature would be significant,” Minister Watt said in a statement at the time.
“What’s more, the CBA’s show that these costs would likely be passed through the supply chain to consumers and would add to cost-of-living pressures.”
Shadow agriculture minister David Littleproud says not regulating the sector hold back exports.
In its submission to the current Senate inquiry, the agriculture department cited similar reasons, raising concerns smaller organic producers could be disproportionately impacted by mandatory regulation.
Most of the 26 submissions to the inquiry by organic producers and industry were in support of a national organic standard.
Mr Littleproud called on the government for support.
“It bewilders me why the government wouldn’t get out of their road when there is agreement finally, for this to happen,” he said.
Agriculture Minister Julie Collins says the government will consider the inquiry report’s recommendations. (AAP Image: Mick Tsikas)
Federal Agricultural Minister Julie Collins said the Liberal-Nationals failed to implement a national standard despite almost a decade in government, while leaving trade relationships decimated.
“What they left was an agriculture department in debt and the relationship with our largest trading partner eroded, all while doing nothing to ensure biosecurity funding was sustainable,” MS Collins said.
The government is yet to announce its position, Ms Collins said it would carefully consider the Senate inquiry findings.
The ACO Certified Organic trademark guarantees the product is 100 per cent organic and certified. (ABC News: Billy Cooper)
