USDA has new rules for organic food suppliers, but many in its complex distribution chain may not be ready

Complex organic food chains needed updated
regulation. (Photo by nrd, Unsplash)

The certification of the U.S.'s organic food supply faces its first big change in 30 years, and many food companies may not be ready. The Department of Agriculture launched its Strengthening Organic Enforcement regulations on March 19, and some experts are waiting to see "if unprepared companies will get left behind," reports Lydia Noyes of FoodDive. "The new rule is the most significant change to organic certification since the program's start. . . . There's growing concern that large portions of the food industry. . . haven't made the necessary compliance changes."

The organic food industry has grown exponentially since the 1990s and has "out-scaled its initial regulations. That's led to gaps in enforcement that allowed for loopholes and outright fraud," Noyes writes. The SOE rule is designed to address the sector's growth and complexity, but has been largely ignored. Nate Ensrud, an executive with FoodChain ID, one of the largest organic certifiers in the U.S., told Noyes he has "noticed little action across the industry to meet SOE's changes."

The failure to address the new rule may come from a lack of information and a historical lack of oversight requirements. Ensrud told Noyes, "Some organic suppliers are still unaware of the March 19 compliance requirements. Because importers, exporters, brokers, traders, and storage facilities have not historically been required to be certified, we believe there will be an increase in last-minute organic certification applications."

When a supplier is not SOE compliant, production may suffer. Ensrud told Noyes: "Suppose a manufacturer of organic breakfast cereals finds that a handler of organic raisins in their supply chain hasn't pursued certification in light of SOE. Now the manufacturer must find a replacement, and it might suffer production disruption in the meantime."