Back | Next  

Chapter 23

Organic Product Certification

Peter Kanyarati and  Bodil Moselund

The global market of organically-produced foods is estimated to be US $11 billion, with organic imports from developing countries calculated at US $500 million (IIED, 1997; Blowfield, 1999). In recent years, there has been an increasing demand in the European Union for fresh produce all year round (Barret et al., 1997). Response to this demand has involved the sourcing of both conventional and organic produce from developing countries. It is likely that this demand will continue to rise over the coming years (Dolan et al., 1999; Browne et al., 2000), offering opportunity for the African smallholders to improve their livelihood through involvement in market-oriented organic farming.

Some policy issues and certification schemes geared primarily to organic production in developed countries do not encourage the inclusion of the resource-poor farmers (Heid, 1999; Harris et al., 2002). An added complication is the existence of competing and sometimes incompatible certification schemes for ethical, fair and organic trade (Blowfield and Jones, 1999; Browne et al., 2000). There has been initiatives within the International Federation of Organic Agriculture Movements (IFOAM) to develop a framework for associations of small-scale farmers that will enable them to establish and develop internal control mechanisms in order to overcome the current problem of certifying co-operatives (Heid, 1999). 

Terms and Concepts in Certification

Organic farming refers to the farming system and products derived through cultivation and husbandry that eliminates the use of chemical pesticides and processed mineral fertilizers. It involves establishing sustainable agricultural practices that better co-exist with natural systems. Lampkin and Padel (1994) define organic farming “as an approach to agriculture where the aim is to create integrated, human, environmentally and economically sustainable agricultural production systems, which maximize reliance on farm-derived renewable resources and the management of ecological and biological processes and interactions, so as to provide acceptable levels of crop, livestock and human nutrition, protection from pests and diseases, and an appropriate return to the human and other resources employed”.  Detailed descriptions of the principles and practices of organic farming may be obtained from Lampkin (1990), Neuerburg and Padel (1992) and Lampkin and Padel (1994). The existence of legislation, standards and certification procedures makes organic farming distinct from other sustainable agriculture approaches.

Organic quality is that which has been produced, processed and handled in compliance with organic standards set out by various certifying agencies. Such standards have been outlined by Article 11 of European Commission Regulation (EEC 2092/91) and the IFOAM Basic Standards for Organic Agriculture and Food Processing. Certification is a system or procedure by which the conformity of products, services, systems and processes to applicable standards is determined and confirmed (Rundgren, 1998). Basic Standards are the minimum requirements that a producer must meet to become certified. All the standards applicable to the particular farm and enterprise must be met before the operation may be certified as organic. Basic standards are different from “recommendations”, which are practical suggestions for producers to implement in organic farm, food and fibre systems. Recommendations are promoted as good agricultural processing practices.

Organic Agriculture and Value-Adding through Certification

Organic agriculture as a business is quite expensive to initiate and sustain, but the potential benefits outweigh these costs when markets are accessible.  The practice of organic agriculture is intended to foster biodiversity and sustain soil fertility as well as minimize environmental damage and the use of non-renewable resources. Besides the production and ecological benefits of organic agriculture, now there is the rapid development of the market for organic produce. The markets are well established in developed economies but require certification of produce as “organic” from local and international producers, thus the process of organic resource and produce certification. Certification creates or enhances trust between trade partners. It adds value to the production process besides the economic and socio-ecological benefits.

The livelihood benefits and opportunities far outweigh the costs and constraints of the involvement of resource-poor smallholder farmers in organic production and trade (Harris et al., 2002). These benefits include better prices, new market access, parallel development of new products, greater environmental knowledge and generation of social capital.

Growers are paid a premium price for organic produce that carries an international certificate and is destined for an export market. The value of the premium paid for certified organic is calculated as a percentage over and above the conventional price. For instance, the Dutch Agro Eco consultancy, working on behalf of EPOPA program in Tanzania, have found through financial analyses of their projects, that smallholders enjoy a 15-30% higher farm gate price for organic produce (Van Bleaker and Tullip, 2000). The premium reflects the “organic” quality of the produce, as well as the cost of meeting certification requirements.

Organic farmers who access export markets generally obtain higher prices from a more stable market for their products. A good example is Mirichi Organic Farmers Association (MOFA) in Kirinyaga district where members are able to export to Switzerland organic produce such as plantains and macadamia nuts although these enterprises have not been developed for the purposes of export.  The establishment of certified organic producers within smallhold communities also stimulates additional activities including large-scale production of compost and biopesticides and the supply of packaging and labeling materials for export shipment.   This benefit is different from the premise of “organic by default”. It is believed that organic production in Kenya is in response to a lack of farm inputs. This premise is strengthened by the activities of such institutions as KIOF and SACDEP which have concentrated in marginal croplands and deliberately avoided high potential areas that are better placed to benefit most from certification. Projects funded by development agencies promote indigenous knowledge which can also be incorporated into active organic farming.

In order to achieve international certification, one option for smallholders is to organize into formal producer groups with an internal system of audit and control. There is much evidence that, in working together to achieve accredited status and an effective control system, farmers build up capacity in organization, management, marketing, and financial planning as well as the techniques of organic practice. The rigorous requirements of international certification that need extensive training and development activities can be seen as beneficial in terms of accumulated social capital. 

The Process of Certification

The purpose and activities of certification is to guarantee that certain requirements are met. It is different from regulation by state authorities, which seeks to disclose violations and take legal actions against offenders. Certification is administered at all levels, from production through processing to retail sales. Thus certification covers the producer, who has to be familiar and comply with production standards, accepts to be inspected and maintains acceptable production records. The production system including sites and processes must be inspected, the product handling process and finally the product itself has to be certified as organic and be understood so by the final consumer through labeling. The criteria and minimum requirements for organic food production by farmers are outlined in the IFOAM Basic Standards for Organic Agriculture and Food Processing. Although IFOAM has set the standards, certification and inspection is conducted by various agencies that have been accredited by it or other agencies such as the European Commission. There is also national or local accreditation usually conducted by national governments or organizations for local organic certifiers (Harris et al., 2002).  The certification process adapted from Rundgren (1998) is presented in Box 1. The key issues that affect the certification process include standards, rules and procedures, inspection, management of certification process and handling of violations, information and labeling, neutrality and costs of the process and its recovery by both the certifier and producer. These issues should be handled carefully so as to make the certification programme acceptable and efficient.

Certification of Organic Products by the European Union

In order to be marketed in the European Union (EU) as organic, goods that are imported into the EU from outside the union, must meet strict production and procedural standards, as well as specific import rules, which are outlined in Article 11 of Regulation EEC 2092/91. The general principle applied is that of equivalence. Agricultural production, processing, documentation, inspection and certification are required to be of equivalent standards to EU regulations. The regulations governing import of organic produce apply to crop and livestock products, both unprocessed and processed. The regulations do not have to be identical, but must prove comparable in effectiveness. This allows countries outside the EU to develop their own organic food production and certification systems. Inspection of all stages of the import chain including production, processing, export and import must be upheld.

Import under Article 11(1)

The EU laws allow registration of a non-EU country operating production rules and systems of inspection equivalent to those within the union. Registration requires an official diplomatic request to the European Commission in Brussels by the third country government. Applications from private bodies do not suffice. Registration means inclusion on a list. Countries recognized under regulation (EEC 2092/91), Article 11(1) Annex 94/92 are currently Argentina, Australia, Czech Republic, Hungary, Israel and Switzerland. Inclusion in the list is for a fixed term and it requires renewal.

The EU sends missions to check every 4-5 years that the countries still comply with EU regulations. Within these countries, there are inspection and certificate issuing bodies recognized by the EU. These can issue a certificate allowing the product to be imported into the EU by an importer approved by the competent body of the EU member state. In most cases, the approved inspection and certificate issuing bodies are the same and there are currently two in Argentina, seven in Australia, two in the Czech Republic, two in Hungary one in Israel and two in Switzerland. The inspection and certification bodies may be government departments or NGO’s. Being a listed country greatly facilitates the exporting process. Although each consignment of organic produce under Article 11(1) requires a certificate issued by an authority or body listed in Annex 94/92, there is no need for the importer to provide any further details, or evidence of inspection and certification in the country of origin.

Import under Article 11(6)

Soon after implementation of regulation 2092/91, the procedures for accessing the EU market through Article 11(1) were found to be ineffective and inhibited trade. This led to enacting of Article 11(6) under which importers may apply for an import authorization. The onus is very much on the importer. The EU does not process applications for import authorizations; they are investigated and approved by the competent authority in each of the member states. This measure was originally regarded as a provisional arrangement until 31 July 1995. However, its applicability has been extended in a number of occasions and most recently to 2005. Import authorization must be obtained for each importing country. There are some differences in criteria employed by different EU members in determining EU equivalence. Article 11(6) functions quite well but EU member states cannot agree on what constitutes equivalence, and apply their national standards. Although each country assesses equivalence, there is a process (Article 14) under which one country can dispute authorizations awarded by another country. Such disagreements can be resolved and a common position secured through negotiations in the EU headquarters in Brussels.

Import authorization is generally not required for every individual consignment but names the inspection body, producers, processors, exporters and importers. Authorization may be open ended or closed. Authorization may also be revoked. Minor changes, such as the addition of another related product from the same produce, may be added to authorizations, but substantial changes in the inspection body, product, producer, exporter or importer require fresh authorization. Once within the EU, organic produce may be re-exported to other member states without requirement for further authorizations. If an import authorization request (OB6 form) is received, for instance, by United Kingdom Register of Organic Food Standards (UKROFS) with inspection by a previously unchecked body, then equivalence is carefully checked. UKROFS do not charge for their services. When authorization to import is granted, all other EU countries are notified. Once authorization is given by one country for a producer inspection body, exporter combination, then this is likely to be accepted by another country although a full import authorization request has still to be made.

Although the majority of Article 11(6) authorizations name European inspection bodies, these may have contributed to the process in three different ways. First inspection is done by visiting European inspectors and in Kenya it is through group certification by the Soil Association of the UK. Secondly, inspection may be conducted by a local consultant employed by an European body such as the Organic Food Federation of UK, which has a similar arrangement with the Association for Better Land Husbandry (ABLH) in Kenya. Also, inspection can be carried out by a local office of a European body, through local staff and perhaps visited only once a year by a representative from the European certification body.

Institutions in organic certification in Kenya

Organic agriculture certification in Kenya has been pursued by Kenyan non-governmental organizations involved in sustainable agriculture. According to IFOAM (2001), Kenya has 16 registered member organizations involved in organic farming. Some of these organizations are community-based, non-governmental and church organizations. However, the ones that have initiated certification schemes include:

• Kenya Institute of Organic Farming (KIOF) has a Soil Association (UK) trained certifier and its main target is farmer training and a two-year training program for the youth on organic farming and certification.

• Association for Better Land Husbandry (ABLH) promotes organic agriculture and is involved in certification on behalf of the Organic Food Federation (OFF) of the UK. It has two fulltime certifiers based in Nairobi and Kakamega.

• The Kenya Organic Farmers Association (KOFA) is a registered farmers lobby group whose members are trained in organic farming practices. Their main interest is to link its membership to markets. In September 2002 , KOFA, with the assistance of KIOF published the Kenya Organic Standards which represents a significant move towards a local certification scheme.

• Other organizations which have shown an interest into organic farming certification include the Sustainable Agriculture for Community Development Program (SACDEP), in Thika, Central Kenya.

Currently, some local producers have been identified and certified to produce various organic food products for the European market. These include:-

• Green Dreams Ltd certified by Organic Food Federation of the UK to produce salad lettuce

• Vitacress Ltd certified by the Soil Association (UK) to produce spring onions, salads and baby carrots

• Kenya Nut Company certified to produce macadamia nuts and coffee

Conclusion

Organic production in Kenya is perceived as a separate entity from normal agriculture representing an alternative practice in farming. Organic farmers have isolated themselves to some extent and find it difficult to lobby for legislation and public goodwill. Even though the majority of organic producers are members of  organizations such as the Fresh Produce Exporters Association of Kenya (FPEAK), Lake Naivasha Riparian Association (LNRA), Kenya Flower Council (KFC) to mention a few, they have not yet benefited from advocacy. The Agricultural Act does not recognize organic agricultural producers yet there is an increase in intolerance to Kenya fresh produce due to residue levels and non-compliance to the maximum residue limits set by the EU.

Establishing a national authority on organic production and marketing is of utmost importance as local certification would represent a step towards EU recognition of equivalence of national standards under Article 11(1). The first step is forming a secretariat with members from KIOF, KOFA, ABLH, KFC, FPEAK, MOARD, HCDA and the Kenya Plant Health Inspectorate Service. The secretariat will be mandated to police conversion, certification, production and sale of such produce in order to protect the bona fide producers and consumers. Such a secretariat will remove the complex and uncoordinated certification standards that preclude producers being able to find markets in countries because their current certification system is not respected. The benefits of organic agriculture to the farming community and country as a whole will remain under exploited unless the marketing and certification of organic produce is enhanced in the near future.

References

Barret, H.R, Browne A.W, Ilberry, B.W, Jackson, G.H. and Bins, J.J 1997. Prospects for Horticultural Exports Under Trade Liberalisation in Adjusting African Economies. Final Report to DFID, Project R6139. Coventry University, UK pp 72.

Blowfield, M. 1999. Ethical Trade: A Review of Developments and Issues. Unpublished Report for NRI, University of Greenwitch, UK. pp 28.

Blowfield, M. and Jones, K. 1999. Ethical Trade and Agricultural Standards-Getting People to Talk. Proceedings of a workshop on Market Rights and Equity: Rethinking Food and Agricultural Standards in a Shrinking World. Michigan State University. Michigan, USA. 15 pp.

Browne, A.W., Harris, P.J.C., Hofny-collins, A.H., Posieczenic, N.M. and Wallace, R.R. 2000. Organic Trade And Ethical Trade: Definition Practice And Links. Food Policy 25:69-89

Dolan, C., Humphrey, J. and Harris-Pascal, C. 1999. Horticultural Commodity Chains: The Impact of the UK Market on the African Fresh Vegetable Industry, IDS Working Paper 96. University of Sussex. Sussex, UK. 39 pp.

Harris, P.J.C., Bowne, A.W., Barret, H.R., and Cadoret, K. 2002. Facilitating the Inclusion of the Resource-poor in Organic Production and Trade: Opportunities and Constraints Posed by Certification. HDRA. Coventry, UK.

Heide, P. 1999. The Weakest go to the Wall. Ecology and Farming,  No 22.

International Federation of Organic Agriculture Movements (IFOAM). 2001. Organic Agriculture Worldwide. IFOAM Directory of the Member Organizations and Associates. International Federation of Organic Agriculture Movements. Tholey-Theley, Germany.

International Institute for Environment and Development (IIED). 1997. Changing Production and Consumption Patterns: Unlocking Trade Opportunities. In: Robbins, N. and Roberts, S. (Eds.) United Nations Department of Policy Coordination and Sustainable Development, United Nations, New York. 63 pp.

Lampkin, N.H. 1990. Organic Farming. Farming Press. Ipswich, UK.

Lampkin, N.H. and Padel, S. 1994. The Economics of Organic Farming. An International Perspective. CAB International. Wallingford, UK.

Neuerburg, W. and Padel, S. 1992. Organisch-biologischer Landbau in der Praxis. BLV-Verlag. Munich.

Rundgren, G. 1998. Building Trust in Organics: A Guide to Setting up Organic Certification Programmes. International Federation of Organic Agriculture Movements (IFOAM).  Tholey-Theley, Germany.

Van Blzakker, B. and Tulip, A. 2000. Not Aid but Trade: Export of Organic Products from Africa. In: Proceedings 13th IFOAM Scientific Conference, Basel, Switzerland. pp. 567-570.

Back | Next