SOPA Member Consultation, July 2014
PROPOSED CHANGES TO THE EU ORGANIC REGULATION
The EU Commission (EC) is carrying out a review of the current organic regulation (834/2007) that sets the baseline rules for all organic food and farming throughout Europe.
Some of the draft proposals are quite revolutionary, others are not. We need to argue against any changes that would harm SOPA member businesses.The law is not likely to change until 2017 but we must not be complacent and it is important to act now.
What can you do to protect your organic business?
SOPA is joining the fight and we will need your evidence. We ask you to answer the same question for all of the proposed changes:
WHAT IMPACT WILL THIS HAVE ON YOUR ORGANIC BUSINESS?
Return the completed form to us by email or by post
SFQC
Royal Highland Centre
Ingliston
EH28 8NF
To make it as easy as possible for you to feedin your views we are also utilising an online survey form. This will be in three parts.
To start on Part 1 go to this link
Now go to Part 2 here
Finally, click hereto complete Part 3 and finish the survey
What does the EU want to change?
- SCOPE OF THE LAW
The current scope of 834/2007 covers agricultural products, processed agricultural products and other products which are linked to agricultural products. New additions include sea salt. Hunting and fishing of wild animals remain outside the scope of the draft regulation. Mass catering operations also remain exempt. The Commission is proposing to give itself the power to adopt delegated acts to amend the list of products in annex 1, although this power will be restricted to products which are closely linked to agricultural products to be eligible for inclusion in the list. The Commission has indicated that it does not intend to include textiles and cosmetics as they do not fit under the framework of CAP and that it would result in a number of complex requirements that DG AGRI is not equipped to deal with e.g. allergens and dyes.
- What impact will this have on your organic business?
- NO PARALLEL PRODUCTION
The draft proposal introduces a requirement for organic agricultural holdings to be entirely organic. This is based on evidence where the Commission identified that the risk of non-compliance is higher in mixed agricultural holdings than entirely organic holdings. The draft proposal therefore introduces a new requirement which prohibits mixed organic and non-organic holdings. This is a significant concern for SOPA as approximately 25% of our organic businesses have mixed holdings. We foresee this would increase the number of withdrawals from the organic sector.
Potentially consumers may see increased prices from higher production costs alongside a reduced EU supply. The impact of this would depend on the definition of holding which is not currently defined in the proposal. Concerns about this provision have been raised by a number of other Member States. The proposal does permit the agricultural holding to be split into separate units for a phased conversion. Phased conversions reduce the financial risks with conversion but moves away from the holistic principle of whole-farm management. Parallel production units incur more red tape and bureaucratic burdens.
2. What impact will this have on your organic business?
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- PRODUCTION RULES – REMOVAL OF DEROGATIONS
In 834/2007 derogations are officially termed exceptions. The draft proposal seeks to remove all existing exceptions to the rules. There are four derogations that SOPA members can use: the use of non-organic stock e.g. breeding replacements; use of non-organic feed; grazing of non-organic animals, and the use of non-organic seed. The Commission suggested that exceptions hinder the development of organic production, undermine consumer confidence, distort the market and they have a high administrative burden. Certainly we agree there is a high administrative burden to derogations, but we do believe they give the ability to override market shortages. In order to ensure a smooth transition from the current exceptions, the Commission would be empowered to adopt delegated acts providing for exceptions to the new regulation that would cease to apply on 31 December 2021. Without seeing these delegated acts it is difficult to evaluate the impact on the relevant sectors.
3. What impact will this have on your organic business?
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- ORGANIC PULLETS
An exception (derogation) to use part organic pullets exists in 834/2007 to allow time for the Commission to develop standards for poultry. The draft proposal removes the ability to use part organic pullets.
4.What impact will this have on your organic business?
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- RETAILER EXEMPTION
834/2007 states ‘operators who sell products directly to the final consumer or user provided they do not produce, prepare, store other than in connection with the point of sale or import such products from a third country or have not contracted out such activities to a third party’ are exempt from the organic controls. This exemption has been interpreted differently in different Member States which has resulted in difficulties with management, supervision and control. Therefore the Commission is seeking a harmonised approach across the EU. This is a key concern for the UK as it could put additional costs and administrative burden on small retailers who sell organic products. We think that retailers will not stock organic produce if they have to be certified to sell it.
5.What impact will this have on your organic business?
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- ENVIRONMENTAL MANAGEMENT SYSTEM
Some organic businesses, but NOT micro-enterprises (employing less than 10 people or with less than €2m turnover), farmers or seaweed/aquaculture producers will be required to develop an environmental management system (EMS) for improving their environmental performance. The aim of this rule is to demonstrate positive environmental benefits. The detailed requirements of the EMS will be set out in a delegated act and it is therefore currently unclear whether this will be an unnecessary administrative burden with limited benefit or whether it is a useful requirement that will reduce the environmental impacts associated with production. Certain operators will face an additional fixed cost. Ultimately this cost will be passed on to the consumer. Whilst the purpose of the draft proposal is to increase the environmental benefits of organic production, the additional cost in the supply chain may result in reduced organic production and therefore overall reduced environmental benefits.
6.What impact will this have on your organic business?
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- CONVERSION OF FALLOW
834/2007 permits the competent authority to consider a reduced conversion period on land that has not been treated with products not authorised for organic production. However, the draft proposal replaces this with a provision that no conversion period is necessary for land has been left fallow for at least the time period required for conversion. However, the draft proposal does not define fallow and there is insufficient explanation to give us the comfort that fallow has not been sprayed.
7.What impact will this have on your organic business?
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- FEED INGREDIENTS
Non-organic feed materials from plant origin will no longer be permitted for use and won’t be included in authorised lists, which have not been published yet. This could also have a negative impact on processors if ingredients they are currently using are no longer allowed. This may lead to increased costs or the necessity to alter ingredients or use alternative ingredients that are not nutritionally acceptable. Consumers may benefit in terms of increased confidence from this draft proposal. However they may also face a price increase if processors pass their costs to consumers. The draft proposal also states that specific non-organic ingredients will no longer be allowed to be temporarily authorised. This is a concern as temporary authorisations provide necessary flexibility under catastrophic circumstances when organic feed materials become unavailable.
8. What impact will this have on your organic business?
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9. ORGANIC LIVESTOCK MUST BE BORN AND REARED ON ORGANIC HOLDINGS
The draft proposal states that non-organically raised animals would be no longer permitted to be brought onto an organic holding for breeding purposes. There is only the ability to bring in non-organic breeding replacements if they are rare breed and there is no exception if organic stock is not available in sufficient numbers. One area of clarity SOPA is seeking is the use of non-organic bulls and tups.
9. What impact will this have on your organic business?
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10. ORGANIC SEEDS DATABASE
The organic seeds database is still required in the draft proposal, however the details for establishment of the database would be set out in a delegated act so it is unclear whether there will be any changes to the current system. However, if the derogation for non-organic seed is removed, there should be little or no need for a database.
10. What impact will this have on your organic business?
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11. AUTHORISED PRODUCTS
The lists of authorised plant protection products; fertilisers, soil conditioners and nutrients; feed materials; feed additives and processing aids and products for cleaning and disinfection are not yet provided in the draft proposal and are likely to be added later through delegated/implementing acts. Article 19 sets out the criteria for the inclusion of products in these lists which are similar to the current regulation. We would be concerned if there were further restrictions on authorised products and delegated acts are not a helpful instrument in this case.
11. What impact will this have on your organic business?
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12. DEHORNING
The draft proposal introduces a ban on dehorning. Clarification is required on what the ban covers to evaluate whether some current UK practices would be permitted or not. There are concerns relating to both animal welfare and health and safety of farm workers if all types of dehorning were to be banned.
12. What impact will this have on your organic business?
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13. ORGANIC FEED
The percentage of feed required to be ‘produced on the farm or if this is not feasible, from the same region’ has increased from 60% to 90% for bovine, ovine and caprine; and from 20% to 60% for porcine and poultry. If ‘region’ is confined to a small area, farmers may face difficulty in changing farm cropping patterns to grow more feed. On the other hand, if region is interpreted as Europe then this provision would have reduced impact. The increased percentages may still not be achievable for some species. The Commission introduced this provision to ensure organic meat production meets consumer expectations. In the stakeholder consultation 49% of respondents stated that organic livestock should be fed with 100% feed from the farm or region. The potential benefit of this draft proposal would also be dependent on the definition of region but could include lower transport costs and an associated reduction in GHG emissions. The draft proposal still allows the use of up to 100% in conversion (second year) feedstuffs if it is produced on the agricultural holding. However, the maximum amount of first year conversion feedstuffs permitted for use has declined from 20% to 15% and there is a reduction from 30% to 20% for bought in-conversion (second year) feedstuffs. SOPA has some concerns that Scotland’s climate has impacted our ability to grow nutritional feeds for our organic livestock and their health and welfare could be at risk. If there had been more investment in research of appropriate varieties of feed that could be grown in northern latitudes, but without that investment there is a risk of feed failure and an inherent lack of resilience in organic feed.
13. What impact will this have on your organic business?
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14. ORGANIC PLANT SOURCES
The draft proposal requires organically produced plant reproductive material to be used for the production of organic plants and plant products. This requirement means that Member States can no longer authorise the use of non-organic seed or vegetative propagating material (such as growing compost) if they’re not available in organic form. The Commission argue that this will contribute to the development of the market for organic seeds and ensure that organic products meet consumer expectations. This is likely to have significant impacts as there is a range of seeds that are not currently available in organic form as their production is not commercially viable. If these seeds were made available it could increase the production costs of organic crops and therefore increase the cost for consumers. If the seeds were not made available it could limit the range of organic products available to consumers which would restrict the growth of the sector.
14. What impact will this have on your organic business?
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15. DELEGATED ACTS
A delegated act is a change of EU law suggested by the EU Commission to the European Parliament, where there is little or no consultation with wider stakeholders or formal committees. A delegated act is often a later addition or subsequent definition to a EU regulation. Under the Lisbon Treaty the Commission was given limited powers to make minor changes to laws, provided these do not affect the “core” legislation decided by Parliament and the Council. The Commission is given the power to adopt ‘non-legislative acts of general application to supplement or amend certain non-essential elements of a legislative act’. There are concerns at this lack of transparency and democracy.
15. What impact will this have on your organic business?
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16. PROCESSED FOODS: ORGANIC MATERIALS
The production rules for processed food and feed in the draft proposal are similar to those in the current regulation. However, the draft proposal removes the ability to use non-organic food and feed materials where they are not available on the market in organic form. This is expected to have significant implications.
16. What impact will this have on your organic business?
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17. AGRICULTURAL INGREDIENTS IN PROCESSED FOODS
834/2007 requires processed food to be produced mainly (95%) from organic agricultural ingredients. The draft proposal includes this provision but removes the possibility to temporarily authorise the use of non-organic agricultural ingredients if they are not available on the market. There are fewer permitted non-organic ingredients (listed in annex II, part IV paragraph 2.2.4) – so some edible fruits, nuts and seeds, edible spices and herbs, some sugars, starches and other products from cereals and tubers would no longer be authorised. The listings for animal products and fats and oils remain the same as in the current regulation.
17. What impact will this have on your organic business?
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18. SEAWEED AND AQUACULTURE
More detailed EU rules for seaweed and aquaculture have been included in the proposal. In the current regulation, Member States are permitted to certify to national or private standards for aquaculture. This will no longer be possible.
18. What impact will this have on your organic business?
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19. EXPORTS
The draft proposal also includes a provision to develop export certificates to improve traceability of imports and exports. Details would be developed in a delegated act and therefore it is difficult to evaluate the potential implications.
19. What impact will this have on your organic business?
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20. PERMITTED SUBSTANCES IN PROCESSED FOODS
Article 19 in the draft proposal will list the permitted processing aids, food additives and food enzymes to be used as food additives but the list has not yet been published and therefore the potential changes cannot be evaluated. As in the current regulation, the draft proposal retains ability to use natural flavourings; colours for stamping meat and eggshells; drinking water and salt; minerals, vitamins, amino acids and micronutrients as far as their use is legally required.
20. What impact will this have on your organic business?
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21.GROUP CERTIFICATION
The draft proposal includes the possibility of group certification for small-scale farms (< 5Ha) to reduce certification cost and administrative burden. There is provision for this in 834/2007 as SOPA already offers group certification in certain circumstances.
21. What impact will this have on your organic business?
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22. ONE CERTIFIER IN THE SUPPLY CHAIN
To reduce fraud, the draft proposal states that products must be certified by the same certification body throughout its supply chain.