NEW EU ORGANIC REGULATION NEW CONSTRAINTS AND OPPORTUNITIES MICHEL - PowerPoint PPT Presentation

NEW EU ORGANIC REGULATION NEW CONSTRAINTS AND OPPORTUNITIES MICHEL REYNAUD VICE PRESIDENT ECOCERT BIOFRUIT CONGRESS MADRID OCTOBER , 23rd, 2019

2018: Regulation 2012 Regulation 2018/848 203/2012 wine production 2007 Regulation EU 834/2007 1999 Regulation EC 1804/99 Animal production 1991 Regulation EC 2092/92 plant production ORGANIC EU REGULATION

Implementation of the New Organic Regulation From 01.01.2021 EU NEW RULES ON Secondary Acts Implementing/Delegated Acts ORGANIC 06/2018 – mid 2020 PRODUCTION Basic Act EU Reg 2018/848 2014 – 05/2018

EXTENSION OF THE SCOPE LIMITATION OF DEROGATION MAIN GROWER GROUP CERTIFICATION CHANGES MANAGEMENT OF CONTAMINATION – RESIDUE OF PESTICIDES IMPORT REGIME - COMPLIANCE vs EQUIVALENCE

EXTENSION OF THE SCOPE. • Extension to new products : Mate, Yeast, wineleaf, salt, beewax…. LIMITATION OF DEROGATION: • End of use of non organic reproductive material in 2035 MAIN GROWER GROUP CERTIFICATION: CHANGES • Extension to the EU operators, official recognition, detailed rules for EU and Third Country CONTAMINATION IN ORGANIC PRODUCTS: • clear steps to follow when suspicion at operator level raise, investigation by the Control Bodies, no de- certification threshold

2 SYSTEMS • Trade Agreements with Third Countries • Control Bodies/Authorities recognised for the purpose of the compliance IMPORT TRANSITIONAL PERIOD REGIME • The recognition of equivalent Countries under the current regime will expire 5 years after 1.01.2021 • The recognition of « equivalent » control Bodies will expire up to a maximum of 3 years after 1.01.2021

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WORLD: ORGANIC RETAIL SALES 2017 13.3% 288 € World North America of the almost are spent per approx. food market person in 43 billion € 92 billion € in Denmark is Switzerland organic The largest single market is the The countries with the largest Switzerland has the highest per The highest shares the organic USA followed by the EU (34.3 market for organic food are the capita consumption worldwide, market of the total market is in billion €) and China. By region, United States (40 billion €), followed by Denmark and Denmark, followed by Sweden , North America has the lead (43 followed by Germany (10 billion €), Sweden. Switzerland, Austria, and billion €), followed by Europe France (7.9 billion €) and China (7.6 Luxembourg . (37.3 billion €) and Asia. billion €). 5 5 Switzerland Denmark 5 Other US USA Sweden 4 4 Sweden Denmark 4 Germany Switze … 3 Switzerland 3 3 Sweden France Canada Italy 2 2 2 China Austria Luxembourg China 1 Italy 1 1 Austria Luxembourg France Germany 0 20.000 40.000 60.000 0 200 400 0 10 20 Retail sales in million Euros Euros Market share in % Distribution of retail sales value The five countries with the largest The five countries with the highest The five countries with by country 2017 markets for organic food 2017 per capita consumption 2017 the highest organic shares of the total market 2017 Source: FiBL survey 2019 www.organic-world.net – statistics.fibl.org

IMPORT IN THE EU Volume of organic agri food import EU 2018 900000 30 800000 25 700000 600000 20 500000 15 400000 300000 10 200000 5 100000 0 0 TONNES % Source: EU Commission Import TRACES

TOP 10 COUNTRIES 450000 TOP 10 IMPORTS INTO THE EU 14 400000 12 350000 10 300000 VOLUME IN TONNES POURCENTAGE 8 250000 200000 6 150000 4 100000 2 50000 0 0 CHINA ECUADOR DOMINICAN UKRAINE TURKEY PERU US UAE INDIA BRAZIL REPUBLIC TONNES % Source: EU Commission Import TRACES

INTERNATIONAL REGULATIONS AND RECOGNITION Trade Agreement between the consumption market Towards the compliance for export countries

EXPECTATIONS OF THE STRICT ORGANIC RULES CONSUMMERS FOR FAIR PAY ORGANIC AND CARBON SEQUESTRATION / VALUE CHAIN FOOTPRINT but ALSO CLIMATE CHANGE WATER FOOTPRINT BEYOND ORGANIC ORGANIC AND WASTE PACKAGING MANAGEMENT TRACEABILITY AND TRANSPARENCY

TO SECURE THE SUPPLY – STRUCTURATION OF THE SUPPLY CHAIN? The way the market and supply chain are organiued does not allow to face the following challenges: To avoid the viscissitudes of external factors: climate, fluctating prices and uncertainty of the market; To ensure an improved stability of supply and to give visibility for the future in order to anticipate (producers and processors); To master the value chain through a better knowledge of the production uptstream, suppliers and through a balaced power relationship; To answer to the expectation of transparency and traceability of stakeholders, and on the social and environemental condition of the production, on the remuneration and impact on the life of farmers To valorise the commitment and practices, to develop sustainable, resilient supply chain. Solution?

The solution : building up resilient organic supply chain - One tool: Fair for Life 2007- ECOCERT 1991 – Setting launched its fair up ECOCERT in trade standard ESR France UNIVERSALITY 2014 – IMO taken over TRANSPARENC by Y ECOCERT 2017 PARTNERSHIP New version 1989 – 2006 - IMO launched Setting up of its fair trade IMO in standard – Fair for Switzerland Life 14

Within a Value-Chain partnership To know each other, to meet , to interact and learn each other To share a diagnostic of the challenges, exchange on a common vision To identify the solution, building up a project for a long term . To establish a beneficial partnership framework, to commit with sincerity To Act with responsibility , respect and transparency

Where transparency is at the heart of the approach To ensure the practices are implemented To bring /to share the story of the commitment to the consumers to make the consumer an active player

… where Everyone has a role to play Part rtner Oper erator at t production Brand Br Consummer Con Supports the producers le level el ensures the Buys responsible and gives opportunity of market transparency to the supports the producer To identify the pertinent action consummer to be developped

According to a continuous improvement Part rtner Oper erator at t th the e Br Brand Consummers Con Supports the producers producti tion le level el Ensures the Buys responsible and Gives opportunity of market transparency to the supports the consummer To identify the pertinent action consummers to be developped Sc Scheme owner an and cer certif ific ication Bod Body 1. Set up clear and understandable requirements 2. Ensure an efficient control 3. Make sure the infomation is available

THANKS FOR YOUR ATTENTION www.ecocert.com www.fairforlife.org