Two decades ago, the organic industry was relatively small, with consumers often having to search diligently to find organic products, primarily purchasing them at natural food stores and farmers markets. Today, organic has become a significant and mainstream business across the United States. According to the Organic Trade Association (OTA), organic food sales reached $50.1 billion in 2019, reflecting a growth of 4.6% from the previous year. In light of the current pandemic, many consumers are now seeking functional foods to enhance their immune systems, leading to an increased interest in organic options. OTA Executive Director and President Lauren Batcha noted that this growing demand aligns with a longstanding commitment to the Organic label, which has always represented health and safety. She anticipates that this commitment will strengthen as society navigates these challenging times.
For this commitment to remain robust, consumers must trust the organic seal. However, media reports from several years ago revealed significant flaws in the organic certification system, where paperwork for conventional imported goods was misappropriated to falsely label them as organic for higher profits. A study by the Cornucopia Institute in 2020 criticized the inspection process for being “lackluster.” In response to these issues, the OTA established a task force to combat fraud, launching the voluntary Organic Fraud Prevention Solutions program, which has seen participation from companies such as Ardent Mills, Clif Bar, Ingredion, Pilgrim’s Pride, and J.M. Smucker.
On the government front, there had been little action to enhance the program until the recent proposed regulations. A 2017 audit by the USDA’s Office of Inspector General highlighted the need for the Agricultural Marketing Service, which oversees the National Organic Program, to strengthen its standards for organic crop imports. Additionally, legislation aimed at modernizing the USDA’s tracking capabilities was introduced in the House of Representatives that same year, but it ultimately stalled in committee. The proposed new regulations aim to address these various reports and initiatives to close existing loopholes. The OTA quickly endorsed these regulations, particularly since the Organic Fraud Prevention Solutions program was recognized in the Federal Register as an effective fraud deterrent. Batcha emphasized that “Protecting the integrity of organic requires the efforts of all organic stakeholders, both public and private.”
While the OTA supports these initiatives, the regulations might impose significant costs on companies within the supply chain. Many will not only need to obtain certification but also invest in enhanced reporting capabilities. According to an economic impact analysis of the regulations, the total estimated cost could be around $7.3 million annually for certifying agents, certified operators, and handlers, while the potential financial benefits could exceed $84 million each year. The regulations significantly broaden the scope of who must be certified to handle and transport organic goods but do provide exceptions for most grocery retailers. This is crucial for the success of the regulations, given that organic foods are sold in nearly three out of four conventional grocery stores in the U.S., according to USDA data. Requiring certification for employees responsible for stocking shelves and filling displays could be viewed as excessive.
Moreover, the integration of supplements such as calcium citrate malate into organic products may also influence consumer choices, as health-conscious shoppers increasingly prioritize their nutritional intake. The rise of platforms like Jan Aushadhi, which promote affordable healthcare solutions, further emphasizes the importance of transparency and integrity in organic labeling as consumers seek trustworthy products in their quest for better health.