Organics certifier crashes leaving 400 brands scrambling

Giants of Australia’s organics industry, and hundreds of farmers and producers, have been left scrambling following the collapse of one of Australia’s first and largest certifiers of organic products.

Hundreds of farmers, food producers and cosmetics manufacturers have been left scrambling following the collapse of one of Australia’s first and largest certifiers of organic products.

NASAA Certified Organic (NCO) provided certification services to more than 400 organic operators in Australia, including well-known brands Bellamy’s Organic, Bertocchi Smallgoods, Constellation Wines, Fonterra Australia, Sunbeam Foods, Jurlique and Swisse Wellness.

Products certified by NCO are marked with its ‘spring leaf’ label, meaning they meet federal government standards for exporting legitimate organic products.

However after terminating trade on June 26 due to “escalating financial pressures”, NCO’s directors called in administrators on Tuesday to take control of the company.

The collapse means affected operators are prevented from exporting organic-labelled products until they transition to one of four alternative certifiers. The Department of Agriculture, Fisheries and Forestry (DAFF) has imposed a deadline of September 26.

Organic brands have been left scrambling by a certifier collapse.

In a statement the directors of NCO – a subsidiary of NASAA (National Association for Sustainable Agriculture Australia) – said it was working with DAFF to minimise disruption to the Australian organics industry.

“We were aware the closure of a certifying body like NCO would send shockwaves – not only financial but emotional – through small-scale and family-run businesses,” the directors said.

“We are grateful to DAFF for their assistance, resourcing and industry insight. This has been instrumental in delivering a transition that protects the integrity and international reputation of Australian organic certification.”

The four remaining certifiers have been jockeying to pick up the trail of customers left in limbo following the collapse of NCO, which commanded around a 20 per cent share of the market behind dominant player ACO Certification.

Bellamy’s Organic is one of hundreds of companies left scrambling following the collapse of organic products certifier NASAA Certified Organic. Picture: Peter Hemphill

Australia’s organic producers are typically required to pass annual audits of their operations, as well as unannounced inspections aimed at ensuring their ongoing compliance with national standards.

While most organic producers contacted by The Advertiser said the transition to an alternative certifier was a fairly seamless process, others say NCO’s collapse has left them facing uncertainty over the status of their operations.

Blewitt Springs Wine Co owner Phil Tabor feared the collapse could set him back by two years as he sought organic status for a newly planted vineyard at his property near McLaren Vale.

“We had a soil test last year ... and that vineyard would have been fully organic next January. I’m wondering now whether a new certifier will recognise that,” he said.

Blewitt Springs Wine Co owner Phil Tabor is one of hundreds of organic producers hit by the collapse of certification body NASAA Certified Organic. Picture: Brett Hartwig

“Having to go through another audit, soil test and then wait another three years to get that certified – that’s a worst case scenario.

“I found a customer last year that will take all of that new bush vine block, providing that next year it is organic. So chances are, if I don’t get that, they might turn around and say we don’t want it because it’s not organic.”

The collapse of NCO, based at Stirling in the Adelaide Hills, resulted in the redundancy of 14 employees, who are collectively owed around $160,000 in unpaid entitlements.

Operators affected by NCO’s collapse may be able to continue using existing packaging and labelling for up to 12 months.

Originally published as Organics certifier crashes leaving 400 brands scrambling