Australian Organic Ltd CEO Jackie Brian, David Littleproud and NASAA Organic general manager Damien Rankine. Photo: Australia Organic

THE NATIONAL Party has introduced a new bill into the Senate which would create Australia’s first organic standard to regulate the sale and import of produce, and open new markets for farmers.

The National Organic Standard Bill, a Private Senators’ Bill was tabled by The Nationals Senator Bridget McKenzie on Tuesday.

It will create a legal definition of the word “organic”, and require all businesses and importers to meet standards or risk facing penalties.

Australia is the last nation in the OECD to not have a regulatory framework for the use of the word “organic”.

Currently, products can be labelled and sold as organic in Australia with as little as one organic ingredient, leaving it to consumers to check for certification logos to ensure claims printed on labels can be trusted.

Conversely, Australian organic producers selling into overseas markets must adhere to strict export standards that specify strict requirements for certified organic ingredients.

National Party leader David Littleproud said the bill offered a commonsense solution to improve the domestic regulation of organics.

“It defies logic that organic products currently aren’t required to be certified or comply with any particular organic standard, but can still call themselves organic,” Mr Littleproud said.

“Products in Australia can claim to be organic with as little as two percent of the ingredients being certified organic.

“In comparison, organic products sold for export require 95pc organic ingredients.”

The Organic Development Group, which includes all five organic certification bodies and the two peak groups, Australian Organic Limited (AOL) and the National Association for Sustainable Agriculture Australia (NASAA), along with Organic and Regenerative Investment Co-operative (ORICoop) and Certified Organic Biodynamic Western Australia (COBWA), are backing the proposed legislation.

AOL chief executive officer Jackie Brian said the bill would establish a level of consumer protection that has been desperately needed.

“We know from survey data that consumers are being misled by labels that make unverified organic claims, which is unfair to those buyers and unfair to the producers who go through the lengthy and rigorous process of attaining organic certification,” Ms Brian said.

“It has been a loophole we have been calling to be closed for a long time, and we hope to work with all sides of politics to set the standard for consumers in Australia that is the norm for so many countries around the world.”

Exports to benefit

Ms Brian said regulating a domestic standard for organic production and labelling would not just benefit consumers, but would also help unlock new export markets.

“The organic industry has experienced strong growth for the past 20 years, but to really unlock future benefits we need to address the key barrier of market access.

“Many countries, including key trading partners such as South Korea and the United States, do not recognise our export standard and require producers to get additional certification, which can be a complex and costly process.

“Some producers are having to do this in multiple jurisdictions.

“If Australia had domestic regulation, it would help our government negotiate equivalency arrangements with other nations meaning producers would only need to attain one certification, the National Organic Standard established by this bill, cutting red tape and stimulating export growth.”

Kialla Foods owner Quentin Kennedy said the lack of equivalence for his Darling Downs-based business was costing export sales every day.

The company sources organic grains, pulses and seeds and mills them into flours, breakfast foods, and wholefoods.

Over 40pc of Kialla’s products are exported, primarily to Japan and South Korea.

“We have many multi-ingredient products which are fully compliant to the national standard but simply cannot be exported to Korea due to the lack of inter-nation equivalence,” Mr Kennedy said.

“The lack of equivalence is significant in terms of lost sales each year.

“Organic production and compliance is difficult enough as it is, without this further impediment to growing sales.”

NASAA general manager Damien Rankine said if the bill was passed, the Australian Competition and Consumer Commission would have clear guidelines to ensure consumers were getting what they paid for.

“The ACCC currently has unclear definitions relating to the use of the term organic in Australia, with no specific requirements to meet a particular standard or to be certified, which creates confusion and erodes the trust our industry has worked hard to establish,” Mr Rankine said.

“This bill would provide a clear set of rules, and they could be established quickly and simply.”

The bill is expected to be debated during the February 2025 Senate sitting.

Source: AOL, David Littleproud