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USA: Introduction of National Organic
Standards
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The new US label for
organic foods makes its much awaited debut today. It has been hailed as
a positive step for the American organic food industry however it also
has its critics.
As
of today all organic foods marketed in the US will be produced according
to national standards and they will bear the official USDA Organic seal.
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The
National Organic Standards (NOS) were unveiled in December 2000 and
organic food growers and producers were given 18 months to adopt the
standards.
The United States Department of Agriculture (USDA) has introduced four
types of organic labels:
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100 percent organic: Only organically produced
ingredients are in the product.
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Organic: Contains 95 to 99 percent organically
produced ingredients. Food may contain spices or flavorings that are
non-organic.
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Made with organic ingredients: At least 70 percent
organic ingredients.
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Some organic ingredients: Below 70 percent.
These are shown from left to right in the
photograph. The organic seal is clearly evident on the first two
products that are 100 percent Organic and Organic, however there is no
seal for the latter two products.
The maker of the cereal with up to 70 percent organic ingredients may
list specific organically produced ingredients on the information panel
of the box-but may not make any organic claims on the front of the box.
The primary purpose of the NOS programme
is to standardise organic production standards in the
US
and to prevent fraud and mislabeling of products. There is much
variation in standards between states and consumers were becoming
increasingly confused on the differences between organic products that
were produced according to varying standards.
There were also incidents in which
conventional products were falsely marketed as organic foods. All
organic foods in the
US
now must meet national standards of production and companies face a fine
if their organic products do not meet these standards. This also applies
to imported organic products. A number of foreign certifiers have
applied for accreditation from the USDA and the number of approved
certifiers has reached 58.
The NOS programme will strengthen consumer
confidence in organic foods and it is seen to be a turning point for the
industry as it develops mainstream status. Consumer demand for organic
foods is soaring in the
US
with sales increasing by over 20 percent a year to reach US $9 billion
in 2001.
The programme has also received some
criticism. The national regulations are regarded by some as not being
strict enough and many organic farmers are not joining the programme.
Many farmers are opting to not have their organic farms certified. These
farmers have typically been practicing organic farming for many years
and they sell their organic products to local markets. Some grow
relatively low quantities of organic fresh produce and feel that the low
volumes do not justify the inspection and certification costs. Others
prefer not to certify their organic farms as they do not want the
additional bureaucracy that it involves. It is reported that about 700
of the 2,100 organic farmers in
California
have not obtained certification.
The national standards of organic
production are also deemed to be not strict enough by some industry
organisations. They feel that by having uniform organic standards,
farmers that produce to higher growing standards are losing out as their
products are not able to be differentiated in the marketplace. All
organic products will bear the official seal, whether they are produced
according to the national standards, which some consider to be the bare
minimum, or higher production standards.
There is also a concern that the American organic food industry could be
dominated by large industrial farms and multinationals. This will
compromise the craft nature of the organic food industry and marginalise
established producers and growers, many of which are small family-owned
enterprises.
The
United States has the largest organic food industry in the world and the
NOS programme is likely to strengthen consumer demand for organic foods.
High growth rates will continue as consumers get access to a wider
choice of organic products that are produced according to uniform
production methods. It remains to be seen however how the industry
develops over the long term, whether it maintains its identity or if it
becomes integrated into the American agri-food industry.
Related Report:
#7001-40 The
Global Market for Organic Food & Drink
Posted: October 21st 2002
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