Organic industry celebrates small win in push for mandatory produce labelling to stop ‘consumer confusion’

Australia’s $2.6 billion organic industry is celebrating a small win in a long-running battle to push for mandatory organic produce labelling, with the Federal Government calling for public consultation on the matter. Federal Agriculture Minister David Littleproud last week threw open public consultation on how Australia’s domestic organic regulatory framework could be improved, with a focus on potential regulatory and non-regulatory options across the supply chain. The move comes six months after he formed the Organics Industry Advisory Group to explore a range of options to advance the nation’s domestic regulatory framework in Australia. One of the State’s best-known winemakers — Cullen Wines managing director Vanya Cullen — is the sole WA representative on the 17-person group tasked with examining the framework and coming up with suggestions to improve it. A big focus of the group has been on the potential creation of a mandatory domestic standard for the use of the term “organic” in Australia to improve labelling requirements and stamp out “greenwashing”. Australia has the biggest organic agricultural area in the world at 35.7 million hectares, with revenue in the $2.6 billion industry expected to grow at 14.6 per cent each year between 2020-21 and 2024-25. But the nation is lagging behind global markets as one of the only developed nations in the world without a mandatory domestic standard for organic produce — meaning products not certified can be labelled organic. The lack of a framework has been touted a a severe disadvantage for organic exporters, who say they are instead burdened with red tape of having to pay separate in-country fees and meet specific international regulations. While the use of the organic label for export is heavily regulated by the Australian Quarantine and Inspection Service, it is open for abuse in the domestic market because products can be labelled organic without being formally certified. Businesses can opt to be certified by one of six private organic certification bodies, which base their standards on the Federal Government’s export standard, but it is not compulsory. Mr Littleproud said the consultation would focus on managing the importation, production and sale of organic products in Australia. “We want to support growth in the industry, as well as give consumers the confidence the products they purchase are genuinely organic,” he said. “Improving the regulatory framework will focus on growing our industry, improving market access, minimising red tape, and saving money. “My department’s consultation process will consider the views of all concerned and provide a better understanding of the sector. “ Australian Organic Limited chief executive Niki Ford said establishing a mandatory standard would bring Australia in line with other countries when competing for burgeoning demand for organic goods. “Establishing a mandatory standard for organic will help ensure our burgeoning industry is well positioned to capture growing demand both here domestically and in export markets around the world,” she said. “For an industry that spans horticulture to livestock, apiary to cosmetics and from wine to desserts, it’s important that consumers can make a confident informed choice when they are making purchases.” Consumer confusion was labelled a major issue in the most recent Australian Organic Markets Report, released in June. The report revealed nearly a third of shoppers that purchased an organic product this year believed they had been “previously misled” by organic claims on product packaging. Australian Organic Limited chair Martin Meek said the report findings revealed the “urgent need” to create a mandatory domestic standard for the use of the term organic in Australia. “Without a domestic regulatory framework, wrongdoers can make misleading claims about their products,” he said. “Currently there are no legal repercussions for this. “While a unified, legal organic definition may still be some time away, this is a great step in the right direction. “We will be encouraging all our industry members and consumers to be part of the conversation to help shape the organic industry’s very promising future.” Ms Ford said the consultation came after three years of industry lobbying. “We are grateful to Minister Littleproud for his ongoing support and help to drive this agenda,” she said. “It will better support market access, consumer confidence and industry credibility. Ms Ford said the group would work to support industry members, producers, exporters, consumers and manufacturers to provide their views on the topic “critical to customer confidence” and the future growth of the Australian organic industry. To find out more, visit awe.gov.au/agriculture-land/farm-food-drought/food/organic-biodynamic/organic-industry-advisory-group