Efforts continue to expand exports of organic products

As U.S. organic exports increase and countries write individual standards for what products and practices qualify as organic, negotiators have been working to assure that a product that qualifies as organic in the United States may be sold as organic in export markets, as well.

So organic producers don't have to comply with different standards, the United States is working to expand equivalency agreements with potential trading partners around the globe, said Soo Kim, a spokeswoman for the U.S. Department of Agriculture Agricultural Marketing Service.

"The USDA is working to expand U.S. organic exports through equivalency agreements with countries whose organic regulatory systems are also fully developed and comprehensive, and with whom bilateral trade already exists or the potential for it exists," Kim said. "At the same time, we're making sure to protect the integrity of the National Organic Program and the U.S. market, and are requiring the same level of oversight in foreign markets."

In 2009, USDA signed the first organic equivalency arrangement with Canada, to maintain and grow the flow of organic trade as the Canadian Organic Regulations were finalized. Kim said Canada is by far the largest market for U.S. organic products, with exports estimated at $1.4 billion in 2010.

The United States and Canada are each in the midst of equivalency talks with the European Union. A finalized agreement would allow products that are produced and certified according to one country's organic standards to be sold and represented as organic in the other country.

"We can send organic products to the European Union currently, but an equivalency agreement would make it much easier," said Barbara Haumann, spokeswoman for the Organic Trade Association. "In Europe, different countries could have different requirements, whereas if you could get one set of European regulations, it opens up more doors with fewer obstacles."

Other countries that have expressed interest in reaching organic equivalency agreements with the United States include Japan, China, Chile and South Korea.

"Our discussions with these countries are ongoing. We are working to establish agreements with different countries to facilitate trade of organic products. It is something that we are in support of and engaging in," Kim said.

Although it is difficult to quantify how much of California's organic commodities are being exported around the world, those doing their best to keep tabs on this progress say global demand remains strong.

"We definitely have a lot of interest in organic exports from a lot of people," Haumann said. "We've had delegations from Korea, India and many other countries visit, and people are just really excited about trying to get imports of U.S. organic products."

Though it is difficult to measure exports of organic commodities and retail products because official U.S. data are currently limited, the United States began tracking 20 organic import codes and 23 organic export codes earlier this year. Up until that point, Canada had been the only country in the world tracking organic imports. The United States is now the only country tracking both organic imports and exports.

International buyers have expressed interest in a variety of agricultural organic commodities that are grown in California, Haumann said, including nuts; dried beans, peas and legumes; processing tomato products such as sauces and salsas; meat; dairy and poultry products; wine; frozen fruit and vegetables; olives; small grains and seeds; and honey and bee products.

To further encourage organic trade among U.S. companies and overseas markets, the Organic Trade Association has planned a Reverse Trade and Foreign Buyers' Mission with buyers from Bahrain, Guatemala, India, Japan, Malaysia, the Philippines, Sweden, Hong Kong, Taiwan and China. During one-on-one visits, Haumann said, U.S. organic company representatives can discuss their products, make on-the-spot sales and pave the way for productive, long-term relationships with international buyers.

Claudia Reid of California Certified Organic Farmers, an organic certifier and trade association based in Santa Cruz, said, "CCOF is very optimistic about the future of organic exports and proud of the fact that so many California organic products are enjoyed by people around the world."

Reid said CCOF has hundreds of clients enrolled in its Global Market Access program, which helps them export products around the globe. She said CCOF also participates in efforts to develop trade standards between the U.S. and its global trading partners, so that its members can be assured that their exports comply with that country's organic standards.

(Christine Souza is an assistant editor of Ag Alert. She may be contacted at csouza@cfbf.com.)