Australian Organic18 Eton Street, Nundah QLD 4012 Australia

P (07) 3350 5706 F (07) 3266 5996contact@austorganic.com

Understanding certified organic

A guide for buyers

Australian Certified OrganicCommunity Service Announcement 2015

How do organics fit into your store?

• 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, GMO and animal cruelty are driving demand.

• The Australian Certified Organic logo is the most recognised amongst consumers.

• 1/3 of shoppers say they would only buy organic if it is certified organic.

Referenced from the Australian Organic Market Report (2014)

KEY POINTS

Four out of five purchases of certified organic are from supermarkets

What does certified organic mean?

Australian Certified Organic means that a product meets strict Australian and international standards for organic production.• Free range• Mostly pasture fed• Socially responsible• No animal testing• Grown free from synthetic pesticides, GM, hormones and

antibiotics• Free from petrochemicals, harsh surfactants, EDTAs, Nano• Free from synthetic additives/ fillers/ processing

aids/flavours or colours• Not treated for pest during transport• Organic certification systems were set up in Australia to

cut through marketing spin and ensure that you get what you expect.

Displaying the certified organic logo means regular auditing and spot checks to ensure compliance.

What does organic certificationmean to the consumer?

• Being able to purchase a product that has third party verification of claims relating to:

• A product that is produced using environmentally sustainable farming practices.

• Produce that has been grown free from synthetic pesticides, hormones, antibiotics and GM ingredients.

• A processed product that is free from harmful synthetic preservatives, colours and additives.

• A product that is cruelty free.

Third party certification protects organic consumers

Why do shoppers start buying organic?

• 49% of shoppers surveyed first bought organic because they became aware of the impact food, fibre and cosmetics have on their health.

• 32% first bought organics for environmental reasons.

• 25% because of animal welfare concerns.

• 16% because of a health crisis.

Referenced from the Australian Organic Market Report (2014)

RMIT University researchers found that you can reduce pesticide exposure by 90% by switching to an organic diet.

Perceived benefits of organics

Shoppers feel that organic products being “chemical free” is important

The future of certified organicfresh produce

• 13% compound annual growth 2012 – 2014.

• Total value $234m.

• 63% of shoppers buy organic fresh fruit and veg from supermarkets.

• 60% of organic consumers note fruit and veg as their most regular purchase.

Referenced from the Australian Organic Market Report (2014)

The organic industry in Australia is worth $1.72 billion.

Usual place of purchase

The future of certified organic dairy

• 18% compound annual growth 2012 - 2014.

• Total value $378m.

• 74% of shoppers buy organic dairy from supermarkets.

• Dairy processors can’t get enough organic milk and are actively canvassing farmers.

Referenced from the Australian Organic Market Report (2014)

The organic industry in Australia is growing 15% each year.

Forget non-certified ‘organic’

• It is so overused by clever marketers now that it’s almost lost its meaning. Some use it in the chemistry sense of the word. Others use it to denote that some ingredients are produced without synthetic inputs (while many of the other ingredients might be).

• What we really need to look for is a phrase which is protected by the law:

CERTIFIED ORGANIC

The phrase ‘certified organic’ is protected by the law.

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.

• Over 15,000 products carry this organic guarantee

Every Australian Certified Organic product has a unique number.

Organic label guide

All ingredients are 100% certified organic.

100% ORGANIC

Restricted ingredients are allowed to be used in multi-ingredient products to ensure its shelf life.

Product contains at least 95% of certified organic ingredients

“ORGANIC” >95%

Product contains at least 70% certified organic ingredients.Only use ‘made with organic ingredients’ on ingredient statement, Logo cannot be used

MADE WITH ORGANIC INGEDIENTS

Look for the bud

Products labelled as 100%

• Products labelled as 100% organic may only contain 100% certified organic agricultural ingredients (excluding water and salt).

• All processing aids must be certified organic ingredients.

• Products labelled as 100% organic may not contain any materials from the National organic standard list of allowed and prohibited substances.

100% means no other ingredients other than certified organic agricultural ingredients are used.

100% Certified

Products labelled as organic >95%

• For processed food products, where a minimum of 95% weight/weight of all ingredients (excluding water and salt) come from certified organic sources, and where all other materials are allowed under this standard for use in certified processed product, reference may be made to ‘certified organic’ on the label.

• In the instance of the product and all ingredients being liquid, the calculation of percentages above shall be done by fluid volume.

Water and salt are not allowed to be included in the end calculation of the product.

Certiied

Made with organic ingredients

• Where less than 95% - but not less than 70% weight/weight of all ingredients (excluding water and salt) - are certified organic, ‘Made with organic ingredients’ can be used.

• ACO Bud logo cannot be used

• Cosmetic Beauty logo cannot appear on front of product.

This category mostly applies to cosmetics, skincare and processed foods such as pasta sauces.

Must use logo on back of packaging

Made with Organic ingredients

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 the word from labels.

• Australian Organic and Australian Certified Organic receives complaints about the misuse of the word organic, particularly in the skincare and beauty industry.

The Australian Certified Organic bud logo is the most recognised organic certification mark in Australia.

So how do you decide what to stock?

• If a rep tells you a product is “organic”, request an organic certificate or look for certification details such as a logo or certification body and a certification number.

• If you don’t recognise a certified organic logo on the product or are not sure about the authenticity of the organic certificate, contact ACO.

There are instances of marketers making up symbols and graphics on skincare and beauty care products to make them look like certification logos.

Logos here and overseas

Certification programs provided by ACO in Australia:

Other certification bodies in Australia:

The Australian logos are approved by the Australian Government. Some certifications are more strict than others.

Certification programs available through ACO internationally:

Other international certification bodies:

A producer’s journey to certified organic

There is a 3 year producer conversion period

About converting to organic

• Applications for organic certification are assessed. This process includes statutory declarations, organic plans, MSDS, product list and recipes, organic supplier certificates, land history.

• Conversion timeframes are not relevant to processors/wholesalers.• An auditor is allocated to your business.• Organic processes must be in place for initial audit.• Overall audit timeline is 6 - 10 weeks.• Fast track application option exists at cost.• Certified operators are audited annually.

Certified operators are audited annually

Thank you

Australian Organic18 Eton Street, Nundah QLD 4012 Australia

P (07) 3350 5706F (07) 3266 5996

contact@austorganic.com

Pictured: Arahura Farms