Organics industry groups, led by Australian Organic Limited (AOL), have been pushing hard for industry legislation over the past year – culminating in the introduction of The National Organic Standard Bill 2024 to Parliament in November last year. The committee recognised the need for better regulation of the organic industry, but recommended changes be made before it could be passed.
The need for a domestic regulatory regime for the organics industry was first identified in the early 1990s. Fast forward 30 years and Australia is the only OECD country without a legal definition of the word ‘organic’, leaving the sector waiting in anticipation for tangible results.
Source: AOL
Industry groups, led by AOL and ACO Certification Limited, spoke out at a public hearing for the federal food and beverage manufacturing inquiry in June 2024, claiming the organics industry is being held back by Australia’s labelling laws.
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 the label claims can be trusted. Conversely, Australian organic producers selling into overseas markets must adhere to strict export standards that specify stringent requirements for certified organic ingredients.
During the hearing, representatives stated the unnecessary pressure of regulations was turning growers away from becoming certified organic producers, and having to apply for and receive organic certification from international trading partners, such as Japan, Korea and the United States, was making exports near-impossible.
These difficulties are only compounded by the shifting market state, with Incite's annual survey showing 97 per cent of importers and distributors across the Asia Pacific Region are actively reviewing new distribution opportunities.
Australia was also pushing for stronger export arrangements over 2024, including signing a Letter of Intent on Cooperation in the Field of Organic Products Certification with China in October to establish stronger agricultural ties and opportunities for collaboration and co-operation on organic goods.
Australia accounts for 60 per cent of the world’s certified organic farmland (53 million hectares) but only has a 1.36 per cent share of global organic retail sales. The industry could become more successful with stronger regulatory support, allowing more trading partners to recognise Australia’s export standard without needing additional certifications.
Legislation underway
In a milestone move for the industry, a new bill was introduced to Parliament on 19 November 2024, which offered a framework for regulating the sale or importation of organic goods in Australia, and stronger opportunities for exporting organic products.
The National Organic Standard Bill 2024 was strongly championed by the Organic Development Group, which includes all five organic certification bodies and the two largest 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).
The organisations stated they have made protecting genuine organics producers a key priority, hoping the bill will help resolve problems of greenwashing and exploitation in the sector.
NASAA organic general manager, Damien Rankine, said it was encouraging to see the breadth of political support for domestic regulation.
“The organic industry is lined up behind this essential reform as it will assure consumers that when they see ‘organic’ on a label it has strong legislation behind it,” said Rankine.
“It will protect our valuable customers and it will protect an industry that contributes more than $2.3 billion to the Australian economy each year.”
The Rural and Regional Affairs and Transport Legislation Committee released its report on the National Organic Standard Bill in February, which took 26 submissions from stakeholders into consideration to decide how to proceed with regulating organic products in Australia.
Recommended changes and next steps
After two months examining the bill, the committee concluded that, although it recognises the need for better regulation of the organic industry, it did not recommend passing the bill without some key reform.
The report stated the committee agreed with submitters’ concerns regarding the definition of ‘organic’, the scope of what would be covered under the proposed national organic standard, impacts on smaller operators, and the suitability of the proposed revenue threshold.
“The committee recommends that the Australian government works with industry and other stakeholders regarding the need for a domestic regulation for the organics industry, including through a scoping exercise led by the Department of Agriculture, Fisheries and Forestry,” stated the report.
“The committee believes that a properly designed regulation could be beneficial for import and export markets along with the domestic market and could provide additional consumer confidence in Australian organic produce.”
Australian Organic Limited CEO, Jackie Brian, said the issues could be addressed with minor amendments to the bill and called for government support for domestic regulation and a commitment on a timeline for implementation.
“The bill would make the system simpler by aligning the rules for import, export and domestic sale. It also has the potential to open up valuable markets overseas,” said Brian.
“Some of our key trading partners require Australian producers to acquire their own certification. If Australia had domestic regulation the Australian government would have a powerful argument for equivalency arrangements. This would take costs out of the system.
“The certified organic industry has been lobbying for this change for many years. We look forward to working with all parties who have an interest in the prosperity of our industry and the truth that Australian consumers demand in labelling,” she said.
This article first appeared in the April/May 2025 edition of Food & Drink Business magazine.
