Organic businesses may now voluntarily pre-enroll in program to help minimize or eliminate organic fraud both within and outside U.S.

March 7, 2019

4 Min Read
Organic industry launches fraud protection program

In a major step by the organic industry to fight fraud in the global organic system, the Organic Trade Assn. (OTA) on Wednesday announced the official launch of its groundbreaking Organic Fraud Prevention Solutions program.

Organic businesses may now voluntarily pre-enroll in a program to help minimize or eliminate organic fraud both inside and outside of the U.S. The new program is based on OTA’s tested and completed "Organic Fraud Prevention Guide" that provides businesses engaged in organic trade with a risk-based process for developing and implementing organic fraud mitigation measures.

“Fraud in the global organic supply chain poses a significant threat to the integrity of the organic brand,” OTA chief executive officer and executive director Laura Batcha said. “For the past two years, the Organic Trade Assn. has prioritized significant time and resources into organic fraud prevention solutions. We are fighting fraud on many fronts, including through the 2018 farm bill and through private-sector initiatives. The more companies that join this industry-driven program, the stronger the organic supply chain will be.”

The global organic market has been on a steady rise for more than two decades and has never been bigger. It is now an almost $90 billion market, with the U.S. organic market alone accounting for close to $50 billion. Organic imports into the U.S. in 2017 totaled around $2.1 billion, up nearly 25% from the previous year. In recent years, however, investigations have revealed imported products fraudulently labeled as organic and gaps in the complex organic supply chain.

Related:Organic livestock rule withdrawal court challenge advances

Organic stakeholders already stepping up

Several organic companies already have pre-enrolled in the program. These companies participated in a three-month pilot project last year that tested the program at their operations. The businesses represent the entire organic supply chain, from farm to processor, and a diverse range of products, services and commodities, including fresh produce, grain, dairy, eggs, meat, beverages, packaged and prepared foods, fiber and textiles, importers and consulting services. The pre-enrolled companies are:

  • Global Organics Ltd. (handler/importer)

  • Grain Millers Inc. (handler/processor, grains) 

  • I Was Thinking (importer/handler/co-packer, grains, seeds, legumes, sweeteners)

  • Naturepedic Organic Mattresses (textile manufacturer/retailer, mattresses, bedding)

  • Organically Grown Co. (distributor, produce)

  • Organic Valley CROPP Cooperative (producer/handler, livestock/dairy/meat)

  • Pipeline Foods LLC (handler/supply chain solutions, feed grains/oilseeds)

  • J.M. Smucker Co. (processor, multi-ingredient)

  • Stonyfield (producer/handler, livestock/dairy)

  • True Organic Products Inc. (manufacturer, fertilizer) 

Consulting firms Wolf, DiMatteo & Associates and Miles McEvoy, Lacewing LLC have also pre-enrolled in the program as trusted advisors, a category of professionals that may qualify and partner with Organic Fraud Prevention Solutions and work with enrolled companies to develop an Organic Fraud Prevention Plan. Trusted advisors are experts in organic certification as well as in conducting vulnerability assessments and organic fraud mitigation plans.

Organic Fraud Prevention Solutions establishes a framework and formal process for businesses to create continuously improving internal programs for achieving organic integrity throughout their associated supply chains. The program requires training, an organic fraud vulnerability assessment and the development of an organic fraud prevention plan. After a company successfully registers with OTA with the implementation of the organic fraud prevention plan, the company will be considered “Organic Fraud Prevention Enrolled.” The enrollment process is integrated into the organic certification cycle and maintained annually.

The program is not a certification or verification program nor a product label; it is a quality assurance program designed to complement and reinforce the U.S. Department of Agriculture’s organic standards and the work of the accredited certifying agencies.

“Everyone plays a role in preventing organic fraud,” said Gwendolyn Wyard, vice president of regulatory and technical affairs for OTA and staff coordinator for the association’s Global Organic Supply Chain Integrity (GOSCI) Task Force -- a 48-member task force formed two years ago to develop the fraud prevention program. “It is critical that organic businesses have robust systems and measures in place that adequately support the promise of providing organic products that people can trust.”

Enrollment eligibility

To pre-enroll, a company must be an OTA member and either certified organic or listed with a USDA recognized Material Review Organization such as OMRI (Organic Material Review Institute). Eligible operations include farmers, handlers, processors, distributors, traders, retailers and input manufacturers. There are also opportunities for accredited certifiers, consultants and advisors that would like to partner in the program. Pre-enrollment initiates the process and signs up the eligible company for the first offered training that will take place in late summer or early fall.

"Our Organic Fraud Prevention Solutions program will become the industry standard reference for excellence and achieving integrity across complex organic global supply chains,” Batcha said. “We all have a responsibility to fight fraud, and the Organic Trade Assn. is doing everything in its power to address the problem.”

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