What you need to know to export to the USA The US Organic Rule

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1 What you need to know to export to the USA The US Organic Rule FAO & IFOAM Seminar: Production & Export of Organic Fruit and Vegetables in Asia Bangkok, Thailand November 3, 2003 Sheldon Weinberg Weinberg & Associates

2 Contents US Organic Market 5 C s of Organic Export National Organic Program (NOP) Certification Flowchart

3 Demand for Organic USA: IQF fruit wanted We are looking for containers loads of organic IQF raspberry, strawberry, peach, banana, mango, papaya, pineapple, blueberry, peas and corn. Contact : Mr Peter xxxxxxxxxx Weinberg & Associates

4 World Market Estimates for Organic Food & Beverages Markets Germany U.K. Italy France Switzerland Netherlands Sweden Denmark Austria Other Europe Total (Europe) U.S.A. Canada Japan Oceana Total Retail Sales (million US$) ,8003,100 1,5501,750 1,2501,400 1,2001, ,000 1,200 10,00011,000 11,00013, , ,000 to 25,000 % of total food sales ca <0.5 <0.5 Expected CAGR% Retail Sales (million US$) ,000 to 31,000 Compiled by International Trade Centre December 2002 Note: Official trade statistics are not available. Complications are based on rough estimates. *Finland, Greece, Portugal, Spain, Norway, Poland, Hungary, Czech Republic, Estonia, Latvia, Lithuania Weinberg & Associates

5 Organic Sales Growth USA USD$Billions $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $ Weinberg & Associates projection year Sources:New Hope Natural Media Organic Trade Association Kalorama Packaged Facts International Trade Centre

6 5 C s of Organic Export CATEGORY CONSUMER CHANNEL 5 C s COMPETITORS CERTIFICATION

7 Compliance vs. Equivalence Compliance Demonstration that a country s requirements are consistently applied, implemented and enforced. Equivalence An importing country is satisfied that an exporting country's regulatory system fulfills its objectives even if the regulations differ from their own.

8 Key Points Of the NOP Certification by a USDA Accredited Certifier Required 3 Year Conversion Period from Conventional to Organic Agriculture Prohibited from using: Chemical fertilizers, insecticides, herbicides, sludge from sewage Genetic Modification (GMO s) Hormones, antibiotics Irradiation Audit Trails & Annual Inspections

9 USDA Organic Labeling 100% organic ingredients 95 to 100% organic ingredients 70 to 95% Organic ingredients less than 70% Organic ingredients 100% organic organic on PDP on PDP Weinberg & Associates made with organic on PDP prohibited on PDP

10 Who must be certified? Growers Processors & Manufacturers Handlers of bulk ingredients Livestock Producers Livestock Feed Producers Retailers are not required to be certified

11 Who does what? USDA National Organic Program (NOP) Accredit Certifiers Enforce NOP Accredited Certifiers Apply for and receive NOP Accreditation Perform Audits Review Records Grants certification in compliance with NOP Company Apply for, receive and maintain NOP Certification

12 NOP Accredited Certifiers USA vs nonusa based Distribution of nonusa based Australia 6% USA 60% nonusa 40% Weinberg & Associates Canada 17% Latin America 26% Europe 51% Updated Oct, 15, 2003 USDA, AMS

13 Certification Flow Chart Review Standards & Regs

14 NOP standards This national program will facilitate domestic and international marketing of fresh and processed food that is organically produced and assure consumers that such products meet consistent, uniform standards. Translated into Spanish Japanese French Page 1 of 554 Weinberg & Associates

15 PreCertification 3 Year Transition to Organic Review Standards & Regs Establish Organic Handling Plan Certifier Selection PreCertification Assessment

16 Receiving Certification 3 year transition to organic Review Standards & Regs Establish Organic Handling Plan Complete & Submit Application Pay Fees Onsite Inspection & Document Review Correct Deficiencies Certifier Selection PreCertification Assessment Receive NOP Certification

17 Organic Certificate organically grown and/or processed in accordance with the USDA National Organic Program Standards.

18 PostCertification 3 year transition to organic Review Standards & Regs Establish Organic Handling Plan Complete & Submit Application Pay Fees Onsite Inspection & Document Review Correct Deficiencies Certifier Selection Annual Renewal PreCertification Assessment Certification Maintenance Receive NOP Certification

19 Post Certification Certification Maintenance Maintain audit trail Inventory control Continuous recordkeeping Evaluate all process changes Equipment, process, formulation, sanitization etc Annual Renewal Annual Inspection and of course annual fees

20 For More Information National Organic Program Organic Trade Association International Federation of Organic Agriculture Movements (IFOAM)

21 Growing Organic Businesses Providing Access to the US Organic Market Import/Export Strategy Brand Development, Private Label, Ingredients Certification Management Weinberg & Associates Professional Experience General Mills, Small Planet Foods, Cascadian Farm, Trout Lake Farm North Cascades Institute, Tierra Nueva Ecumenical Ministries Professional Affiliations IFOAM World Board Organic Trade Association, International Relations Committee UK Food and Drink Federation Organic Liaison Committee Phone: Cell: Weinberg & Associates