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Understanding Certified Organic Retail Training Australian Organic 18 Eton Street (PO Box 810), Nundah QLD 4012 (07) 3350 5716 www.austorganic.com.

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Presentation on theme: "Understanding Certified Organic Retail Training Australian Organic 18 Eton Street (PO Box 810), Nundah QLD 4012 (07) 3350 5716 www.austorganic.com."— Presentation transcript:

1 Understanding Certified Organic Retail Training Australian Organic 18 Eton Street (PO Box 810), Nundah QLD 4012 (07)

2 Training Agenda Introduction – Who is ACO & AO
Organic Standards (Domestic vs International) Marketing & Labelling Guidelines and Requirements Approval Procedures What’s not allowed in certified organic? Who is the consumer? Emerging Issues/Trends Australian Certified Organic (ACO) is Australia’s largest and most recognised organic certification organisation.

3 Who is Australian Certified Organic?
Fully owned subsidiary of Australian Organic Legislated under Government standard Largest organic certification body in Australia Operates in over 15 countries (Asia/Pacific focus) Certifies tens of thousands of organic products Bud logo found on overwhelming majority of certified products found in Australia Experienced and professional certification staff and inspectors A certified organic logo represents regular auditing and spot checks to ensure compliance to the certification standard.

4 Who is Australian Organic?
Key Points The voice of Australian Certified Organic Not-for-profit, member owned organisation Educator, marketer on behalf of ACO Australian Organic Awareness Month – September Australian Organic Market Report – every 2 years Australian Organic Schools – providing free education curriculum Domestic and International trade events Lobbyist at a Government level Facebook, Instagram, LinkedIn, You Tube, Twitter Goodwill Ambassador Program Go to for Media The Bud logo can be found on tens of thousands of products sold in Australia (the overwhelming majority of the certified organic industry).

5 How does organic fit into your store?
Key Points Four out of five purchases of certified organic are from supermarkets. The Australian organic industry, while mainstream, is still a niche sector. Consumer expectations in products, such as free from synthetic pesticides, GMOs and animal cruelty, are driving demand. The Australian Certified Organic Bud logo is the most recognised amongst consumers. 1/3 of shoppers say they would only buy organic if it is certified organic. 1 in 3 shoppers will only purchase an organic product if it displays a certified organic logo.

6 What does certified organic mean?
Operators certified to the ACO Standard are compliant to strict domestic and international requirements for organic production. Non GMO Free to range Pasture fed Socially responsible Biodiversity and environmentally friendly No animal testing Grown free from synthetic pesticides, hormones and antibiotics Free from petrochemicals, harsh surfactants, EDTAs Free from synthetic food additives Organic certification systems were set up in Australia to cut through marketing spin and ensure what you’re buying is truly organic. Image: Barambah Organics The organic industry is worth $1.7 billion to the Australian economy and is growing by 15% year on year (2014).

7 What does organic certification mean to the consumer?
Being able to purchase a product that has third party certification. A product that is produced using sustainable farming practices. A product that is environmentally and biodiversity friendly. A product that has been grown free from synthetic pesticides, herbicides, hormones, antibiotics and GMOs. A processed product that is free from harmful synthetic preservatives, colours and additives. A product that is cruelty free and supports animal welfare. A product that has complied with rigorous certification standards from farm to plate. Australia has the most organic land in the world with 22 million hectares in total (2014).

8 Trends Not just for food and drinks
As per Australian Organic Market Report 2014 New organic products appeared in the marketplace over last three years: Opportunities for expansion: Meat – beef, lamb, chicken, eggs Vitamins Fridge stable herbs and spices Super foods Essential oils Cosmetics, personal hygiene Oils – coconut oil, olive oil Dietary supplements Dried fruit and nuts Hair care Infant food and formula- baby food Pet foods and pet products Beverages – wine, coffee, juice ‘Certified organic’ is a regulated term under Australian law, unlike just ‘organic’ or ‘natural’.

9 Barriers to buying certified organic
Top 5 Reasons Price/value Knowing you can trust it’s organic (down 5% from 2012) I would like to know more about organic products than what I do Easier access/convenience of buying Being easily able to identify it’s organic

10 Certification across all categories
Australian Certified Organic certifies: Livestock (meat), livestock feeds Fresh produce Processed and packaged foods Beverages (alcoholic and non-alcoholic) Cosmetics, skincare, personal hygiene Pet food Allowed Inputs certification: Fertilizers, farm inputs Approved Products certification: Salt, water, cleaning products (sanitizers) 16% of shoppers started buying organic because of a health crisis.

11 How do I know if it’s really organic?
To know you’re really buying organic, look for a Government approved certification logo like Australian Certified Organic’s Bud logo. Tens of thousands of products carry the Bud logo. If I source unpackaged organic fresh produce through a wholesaler, how do I tell if its organic claim is genuine? Ask for an organic certificate. Image: Manna Farms Fruit and vegetables are the most purchased organic foods at 58%, followed by home-cooking ingredients at 42% and dairy at 41% (2014).

12 Auditing / Inspection Process
Each product line is required to be accredited to the ACO Standard to carry the Bud logo. Formulations, labels, ingredients and products are all assessed and verified prior to wearing the Bud logo. All certified operations undergo an annual audit (and are subject to random inspections). The entire supply chain is audited and certified, from farm to end product. In a survey taken in 2014, 43% of respondents said their biggest barrier to buying organic was knowing you can trust it is organic.

13 Where the industry has come from
Export Control Act 1982 (Export Control Orders – Organic Produce Certification – 2005) National Standard for Organic and Biodynamic Produce developed 1992 Current National Standard last updated 2015 AS 6000 Australian Standard Organic and Biodynamic Products developed 2009 Current AS 6000 last updated 2016 The Bud logo can be found on the overwhelming majority of certified organic products sold in Australia.

14 What can’t be granted certification status?
Water & Salt – Approved Products Standard Any product containing less then 70% certified organic ingredients Land exposed to GMO or high toxic residue will undergo lengthy periods of time before A Grade certification status is granted Companies not willing to provide ACO with ingredient formulas to review Any product not adhering to the ACO Standard Companies not willing to undergo annual inspections ACO conducts over 11,000 compliance checks every year, including onsite audits, product and label assessments, formulations and more. The annual growth of organic coffee is 8% (2014).

15 Domestic vs International
What ACO offers Domestic vs International ACO introduced Australia’s first globally recognised Non-GMO Certification in August 2016. The annual growth of organic cosmetics between was 18% (2014).

16 Gaining certification through ACO
Who can apply for organic certification through ACO? Must comply with ACO Standard Entire supply chain must be certified Time frame is approx weeks depending on operation. Fast Track option is available. ACO offers certification for all industries, including: Fresh produce Packaged food & beverages Cosmetics, skincare, personal hygiene House cleaning products, textiles Garden products (fertilizers) Image: Coolibah Herbs Dairy is the fastest growing organic sector (surpassing beef) (2014).

17 Organic Certificate All operators are issued a Certificate of Compliance. Certificate valid for 12 months at a time – expiry date displayed on certificate. Each certificate has a unique Certificate Number – these numbers will change each time a new certificate is issued. Domestic and International Standards that apply to operation are displayed on same certificate. List of certified organic products and services displayed on second page of certificate. How can I verify an operation’s organic status if I’m only supplied their certification number and certifying agent? Visit Product Search tool. Organic exports more than doubled between 2012 and 2014.

18 Converting to certified organic status
Producers (growers) must undergo a conversion process which could take up to 3 years before becoming fully certified. There is a separate Bud logo for producers who are “In Conversion”. Conversion timeframes are not relevant to processors/wholesalers. All producers undergo soil/tissue testing for pesticides/herbicides/ metal contamination at their initial audit. According to a 2014 survey, chemical free is the number one perceived benefit of organic.

19 Misleading branding and labels
The ACCC and media are becoming increasingly savvy about the misuse of the word ‘organic’. In 2013 ACCC requested seven bottled water companies to remove “organic” from labels – water cannot technically be certified organic, it is considered an Approved Product. Australian Organic and Australian Certified Organic receive complaints about the misuse of the word “organic”, particularly in the skincare and beauty industry. Australian Organic takes “certified organic” claims on non-certified products very seriously as it is a regulated term in Australia. “Unusual suspects” made up 40% of organic sales in 2014, compared to 24% in 2012.

20 Thank you Australian Organic
18 Eton Street (PO Box 810) Nundah QLD 4012 (07) |


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