Organic Certification

Transcription

1 Organic Certification Challenges and Development Options Ong Kung Wai Consultant, Grolink Chair, Organic AllianceMalaysia IFOAM World Board member

2 Sector Development and You Scope of activity/operation: Crop production Wild Collection Market chain: CSA Direct delivery Animal Processing Aquaculture Farmers Market Wholesale Retail Catering Textiles & Fibres shops Supermarkets Import Export Cosmetics Input / Ingredients available Services available consultant certification bodies Production & Marketing cost Future sector development Regulatory framework: Government regulation(s)? Voluntary / mandatory certification? Private Assurance: Self declaration / Branding Participatory Guarantee Systems Private organic mark 3rd party certification

3 The Great Organic Initiative (1920s 40s) Introduction of organic idealogy Rudolf Steiner: Agriculture lectures 1924 Mokichi Okada: Nature Farming Field 1935 Sir Albert Howard: An Agricultural Testament 1940 Rodale: Organic Farming and Gardening 1942 Lady Eve Balfour: The Living Soil 1943 The early pioneers discussed worldviews, way(s) of life, including principles and practical methods of enhancing biological systems for agriculture production purposes.

4 Private sector development (from 1960s.. Trust Building in Organic developedthroughorganisedself organised self claim (producerassociations) anddirect direct relations with consumers (Community Supported Agriculture / Teikei) Standards d & voluntary inspection / certification systems followed afer organic producers found associations in several countries. First organic label Demeter [biodynamic] 1928 Soil Association founded 1946 Soil Association first organic standards 1967 First inspections 1970s IFOAM Basic Standards d 1980 IFOAM Accreditation of certification bodies 1992

5 Government regulations (from 1970s... US Oregon state 1974 Organic Foods Production Act 1990 NOP October 2002 EU Argentina Codex Japan Denmark, France & Spain in the 80s EU Regulation 2092/91 in 1991 revision [1st organic legislation in Latin America] 1999 crop production 2001 animal husbandry 2000 (Organic JAS) China 2005

6 State regulations (2009 update) Region European Union Europe_ others Fully Not tfully with drafting with drafting implemented regulation regulation Ai Asia & Pacific (4 export only) Americas & Caribbean Africa Total Source: FiBL & IFOAM 2004: 54 with regulation; 17 drafting 2002: 32 fully implemented; 9 not fully; 15 drafting

7 Market spheres of influence EU reg. NOP JAS More EU; NOP & JAS certified operators outside of country S. Korea; S. Korea; Taiwan;

8 Market growth for organic food and drink: Distributionof of global revenues by region 2007 Consumer demand concentrated in North America and Europe % Asia/Pacific: 2 % Oceania: 1 % Reven nues in billio on US Dollar rs % Europe North America Others 54% Growing market interest in Asia Food scares Growing middle class 2007: 175% increase in product launches (90% in N. America) Source: Organic Monitor 2009, Sahota 2009

9 Agricultural land under organic management bygeographical region 2007 (survey 2009) 2009: 32.2 million ha. 0.4 mio ha aquaculture 30.7 mio ha wild collection 2007: 2.2 mio ha 2008: 2.2 mio ha 2007: 6.9 mio ha 2008: 7.4 mio ha 2007: 2.9 mio ha 2008: 3.1 mio ha India: 2008: 0.53 mio ha 2009: 1.03 mio ha China: 2008: 2.30 mio ha 2009: 1.55 mio ha 2007: 5.8 mio ha 2008: 4.9 mio ha 2007: 0.9 mio ha 2008: 0.4 mio ha Thailand 2009: 19,123 ha 3,924 operators Indonesia: 2008: 41,000 ha 2009: 66,184 ha 2007: 11.8 mio ha 2008: 12.4 mio ha 2006: 31.5 mio ha; 120 countries 2007: 30.5 mio ha; 120 countries 2008: 30.4 mio ha; 138 countries Source: FiBL & IFOAM

10 Organic Farms & Land by Continent More than 80% of organic producers farm in developing countries N. America Oceania Africa N. America Europe Africa Asia Oceania L. America L. America Asia Organic producers by region 2007 Europe Distribution of organically managed land 2007 Source: FiBL/IFOAM Survey 2009

11 European Union scenario Council regulation EEC 2092/91 with amendments (~36) import governed by Article 11 New Council regulation EEC 834/2007 Commission regulation, implementing rules EC 889/2008 Since January 2009 New Logo to be out July 2010 EC 1254/2008 details on import [full implementation July 2010] Live or unprocessed agricultural products (including wild collection & honey) Processed agricultural products for use as food (including wine) Vegetative propagating material and seeds for cultivation Feed Yeast used as food or feed, no implementation rules Aquaculture (July 2010) Not covered: textiles, wild fish, wild animals, cosmetics, mass catering 2 main ways for import access into the EU.

12 Import regulations into the European Union Acceptance of a government supervision system Requires the EU commission to evaluate and approve applicant country s organic standards d and inspection i system as being bi equivalent to the EU. Approved countries appear ona list annexed to Commission Regulation [third country list] Supposed to be the main method of access but few countries have successfully negotiated equivalency agreements with the EC. Approved countries : 7 Argentina, Australia, Israel, New Zealand, Switzerland, Costa Rica, India

13 Import regulations into the European Union Acceptance of organic production on request of an importer a.k.a. the importer s derogation 11.6 Individual EU Member State not the EC authorise imports from a country not on the Article 11 list. Import authorisation is issued on request of the importer and approval can be valid for up to 2years. Importer must furnish sufficient evidence to show: production to organic standards equivalent to EU; inspected equivalent to EU inspection requirements; CB operates in compliance with ISO/IEC Guide 65 (not necessarily accredited) Majority (over 80%) of imports goes into the EU through this method Direct approval a of CBs from country not on 3 rd country list in new system

14 Japan scenario 1st Apr 2001: Organic JAS labelling regulations 1 st Mar 2006: Include feed & animal products Certification of plant based products is compulsory. Certification of animal based products is optional. CBs to register with the Ministry of Agriculture, Forestry and Fisheries (MAFF). F i CB l f h th Foreign CBs can apply from where they are. accreditation to ISO 65 and MAFF visit staff knowledgeable in Japanese

15 Import regulations into Japan 2 ways to get the Organic JAS mark Direct Certification by a MAFF registered Japanese or Foreign certification organisation based in Japan or outside of Japan Re certification (use of prior inspection report) MAFF registered Japanese or Foreign certification organisations may use inspection reports done by non registered CBs in the exporting country to certify ingredients for use in finished products in Japan.

16 US scenario 1990: Organic Foods Production At(OFPA) Act 2002: National Organic Program (NOP) Final Rule. Products produced in a foreign country and exported for sale as organic in the United States must be certified and labelled in accordance with the NOP Final Rule. 3 ways for import access into the USA

17 Import regulations into USA Direct accreditation by USDA (domestic or foreign CB) CBs must certify according to the NOP Final Rule for products to be sold in the US. Recognised dforeign government accreditation ti USDA may accept foreign government accreditation. (N. Zealand; UK, India) CBs must certify according to NOP standards Equivalency Where an equivalency agreement is reached between the US and the foreign government. (Canada) Certification by a USDA accredited CB is the main method

18 Private marks/seals & private standards Market preference In some markets, retailers and processors (trade buyers) may prefer private organic marks that are well known in their respective markets, e.g. KRAV in Sweden, BioSuisse in Switzerland, Soil Association in the UK, Naturland in Germany or Demeter (Biodynamic label). Majority of established private standard systems are in the IFOAM Accreditation Programme

19 Marks and Seals CB logo CB logo; also certification mark [private standard] Common certification mark [different CBs; similar accreditation & standards] Common o market mark [different CBs; different registration/ accreditation; similar (equivalent) standards] Different certification marks; common standard

20 Number of CBs and approvals per region (2009 update)

21 Start of organic certification (2009 update) Over 70% are established after 1995

22 Types of Certification Bodies Private label scheme CBs [pioneer & advocacy] Standard setting Certification & label scheme management Inspection/Certification to regulations Inspection for other private labels Private Inspection/Certification service providers [majority] Certification to regulations Inspection only [private labels & regulation] Government bodies [few] Inspection & Certification to regulations only Majority CBs are private bodies Majority CBs are private bodies Few places are fully governmental: Finland, Denmark, Some places have governmental & private systems: Spain; US; Thailand

23 Organic Asia_Regulation, Certification & Accreditation Regulation: Export only: India; Australia; New Zealand Imports also: Japan; China; Chinese Taipei [Taiwan]; Philippines; S. Korea (raw material); India (2010) Voluntary Nat Stds: Thailand, Malaysia, Indonesia, Vietnam, Laos, Nepal, Sri Lanka, No Local CBs: Govt CB: Afghanistan, Bangladesh, Bhutan, Brunei, Cambodia, Myanmar, Pakistan, Singapore, Vietnam, N. Korea Malaysia, Thailand, Laos Accreditation req.: Japan, India; China; Philippines; S. Korea; Taiwan, Indonesia Private marks: China; Japan; South Korea; Thailand 23

24 Countries with most CBs (2009 update) 164 CBs in Asia 136 in 4 countries: Japan (59); S. Korea (32); China (29) India (16).

25 Organic Asia_Regulation, Certification & Accreditation Few local private CBs can offer export certification Lack accreditation and/or approval of import country authority expensive to develop competency and undergo process Insufficient operator base (economy of scale) to compete with established international CBs working in the region No mutual recognition between countries in the region Japan has recognition agreement with the EU and USA. India (Australia, NZ) is on the EU third country list India accreditation (APEDA) is recognised by USDA Taiwan recognise NOP 25

26 Exporting to the EU; USA & Japan from Asia Only India is on the EU approved third country list Others go through the importer s derogation Use of local CB in third countries is allowed but importers may prefer EU CB final certification for EU markets easier to prove certification according to EU regulations to regulators. Direct approval of CBs from country not on 3 rd country list No Asian country with mutual recognition o agreement e with the USA. All go through direct certification by a USDA accredited CB [US or foreign] except for India (USDA recognise Indian accreditation). Import approval based on Canadian accreditation via mutual recognition agreement No Asian country with mutual recognition agreement with Japan All go through direct certification by a MAFF registered Japanese or Foreign certification organisation.

27 New Import regulations into the European Union Acceptance of a government supervision system (equivalence basis) Direct approval of CBs _ 2 options compliant (EU regulation) equivalent (Codex Alimentarius) i Importer derogation to be withdrawn no more approvals when list of equivalent CBs is published for 12 months. all approvals to expire 24 months after publication of list New system under equivalent option offers New system under equivalent option offers a path for CBs outside the EU to get approval regardless if there is a regulation or not in their country of operation allow CBs to certify to equivalent local standards instead of the EU regulation

28 An Entangling Web of Regulations Exporting Out: from local agro ecology & sector conditions to different regulations & market requirements Importing In: local regulatory/market requirement demanded of po t g oca egu a o y/ a e equ e e de a ded o production from other countries (different agro ecology & sector conditions)

29 Impact on Operators & CBs Wish: A single integrated certification process whose result(s) is accepted everywhere by regulatory authorities & private sector. Reality Operator: multiple standards & certification multiple costs & different requirements CBs: multiple accreditation multiple quality systems & different requirements Extremely difficult for local certification initiatives to establish themselves in developing countries to service export certification. Situation will get worse as more countries set exclusive regulations. Impact: Diminishing competitive position vis a vis conventional agriculture production and trade

30 Organic assurance made complicated Government A Regulation production requirements certification requirements Accreditation Body [ISO17011] Prod. Req. [Reg. / IBS] Cert Req. [ISO/IFOAM] Recognition agreement Government B Equivalence /Compliance? One way / Bilateral / Multilateral? Accreditation Body national regulation other regulations Certification Body A private standards Regulations X Recognition of certification Certification Body B Multiple accreditation Multiple standards Operator A [practitioner] adopt apply pp organic values sets requirement Compliance to external requirements [Management plan] Buy Sell Operator B agreement & compliance

31 Options Solutions a. Equivalence agreements btw Equi Tool procedure for governments equivalence determination b. Foreign govt as agents c. Acceptance of International Accreditation d. Recognition btw accreditors e. Direct approval of foreign CBs f. Recognition/collaboration agreements btw CBs g. Mandate authority to CB Reference International Standards Common Regulatory Objectives Common Standards International Requirements for Organic Certification Bodies [IROCB]

32 Bilateral or Multilateral system IROCB & EquiTool

33 Organic Assurance made User friendly Government Regulation Common production sector requirements consensus standards certification requirements Accreditation ti Body [ISO17011] International Prod. Req. [Reg. Req/ for IBS] Organic Certification Req. [ISO/IFOAM] Bodies [IROCB] + Certification Body private Common Mandate standards sector assess consensus equivalence for approval standards regulations of products Operator [practitioner] adopt apply organic values sets requirement Compliance to set requirements [Management plan] Buy Sell Government Equivalence Multilateral equivalence /Compliance? [EquiTool] Mutual / One way? Supervision / Standards? Accreditation Body International national regulation Req for Organic Certification other regulations Bodies [IROCB] + Certification Body No Multiple accreditation accreditation required CB Partnerships Operator agreement & compliance

34 C tifi ti i Certification is a market tool method should be appropriate to market situation Markets

35 Facilitating access to international markets and domestic market assurance recommendations for developing sectors Access to export markets support direct accreditation / approval of local CBs with EU, Canada & USDA support CB to CB collaboration for One Stop certification service Domestic market assurance develop common public private sector standard maintain voluntary 3rd party certification allow local CB to assess equivalence of imports support development of Participatory i t Guarantee Systems introduce common organic mark scheme for all assured products develop risk based surveillance systems (e.g. consumer complaints hotline)

36 Considerations for a domestic regulation Production & Processing requirements [Standards] reference sector consensus standards Conformity assessmentrequirements (reference IROCB) allow for Participatory Guarantee Systems waive need for certification for small & direct marketing schemes allow for risk based assessment (e.g. Group certification) Registration of CBs and oversight simple registration (including foreign CBs) public complains procedure & market surveillance Labeling national organic mark [voluntary y & incl of other certifications & PGS] label management by private sector association allow private labeling Public Private Sanctions & Legal protection sector partnership! effective prosecution procedures of fraud Acceptance of products from equally credible organic systems (imports)