Organic Monitor, the specialist research and consulting group specialising in the global organic industry, has welcomed the new equivalency agreement between EU and US organic standards, calling it a 'major milestone' for the international organic food industry.
According to the group, the new trade agreement will have a 'significant impact' on international trade of organic products, potentially ending the non-recognition of standards that has hampered trade in the past between two regions covering 90 per cent of global organic food sales.
The new trade arrangement recognises the integrity of organic systems in both regions, preventing repeat certification of products and potentially growing trade that currently stands at less than 5 per cent of the US$59bn (€45bn) organic food industry.
Although the largest consumers, Europe and North America are not the main producers of organic crops, with the two regions having just 30 per cent share of global organic farmland.
Organic farming is practiced in 160 countries, with organic farmland totaling 37m hectares in 2011. Most production in Asia, Latin America and Africa is destined for these two regions.
A major question is how production in these regions will be affected by the new trade arrangement, since it only covers organic products made and packaged in Europe and North America, Organic Monitor said.
'Organic Monitor sees organic farmers and food companies in Europe and North America benefiting most from the trade agreement,' the group added. 'For the first time, producers will have access to the entire global market without the need to re-certify or adopt new organic standards. Increases in organic farmland are expected in the US as well as EU countries that have export-geared organic food industries.
'The biggest winners however will be consumers. Supply-demand imbalances are a regular feature of the organic food industry, resulting in frequent price fluctuations. Greater supply, especially of commodities, will have a stabilising effect on organic product prices. Apart from lower prices, consumers will benefit from wider product variety. European consumers will be able to buy American organic products, whilst popular European foods – such as pasta, chocolates, cheeses, and beverages - will slowly make their way onto US store shelves.'
