Industry supports the proposed Organic Standards Bill

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The Australian organic food industry is rallying behind the proposed National Organic Standard Bill 2024, citing its potential to enhance exports and provide consistency and integrity within the domestic market. However, the bill has faced some criticism from industry bodies and the Department of Agriculture, Fisheries and Forestry (DAFF) regarding regulatory gaps and cost implications.

Introduced by National Party Senator Bridget McKenzie on November 19, the bill aims to establish a legislative framework outlining the requirements for organic goods sold or imported into Australia. It has been referred to the Rural and Regional Affairs and Transport Legislation Committee for further inquiry and report by January 31.

In a submission to the inquiry, Queensland-based organic grain miller Kialla Foods’ managing director Quentin Kennedy emphasized the bill’s importance in facilitating export growth to key markets. Currently exporting organic cereal grain products to various Asian markets, Kialla faces challenges in certifying its products to meet overseas market requirements, leading to increased costs and inefficiencies in the food chain.

Kennedy highlighted the bill as a crucial first step in establishing export equivalence with overseas markets, urging support for domestic regulation of organic products in Australia to benefit exporters and provide consumer confidence in organic claims. Similarly, PureHarvest, one of Australia’s largest certified organic operators based in Victoria, expressed support for the bill, citing its potential to unlock new export opportunities and drive significant growth in key markets like China, the USA, and South Korea.

While there is general support for the bill’s principles, some organizations have raised concerns about its practical implementation and cost-effectiveness compared to the current system. DAFF highlighted that the absence of a regulatory framework does not hinder international trade in organic goods, citing existing conformity arrangements between Australian certifiers and foreign governments. The department also raised questions about defining the term “organic,” resource allocation for inspections and audits, and potential World Trade Organization implications.

CropLife, the plant-science sector peak body, raised concerns about product labeling under the proposed system, calling for restrictions on misleading claims about the safety or environmental benefits of organic systems compared to conventional methods. Despite these concerns, CropLife expressed general support for the legislation and the possibility of parliamentary amendments.

Overall, the National Organic Standard Bill 2024 has the potential to benefit the Australian organic food industry by enhancing export opportunities, ensuring regulatory consistency, and building consumer trust in organic products. While there are valid concerns about its implementation and cost implications, stakeholders are optimistic about the bill’s ability to drive growth and competitiveness in the organic sector.