FoodChain ID urges “independence and transparency” crucial to sustainability claim boom

11 Dec 2023 --- Industry supply chain certifier and auditor FoodChain ID has acquired Organic Certifiers, one of the first certification bodies accredited in the US for the USDA National Organic Program. The move will help Bioagricert and Cosmocert — the firm’s organic certification accredited entities — certify supply chain participants across 23,000 organic farms and producers in North America, Europe, Latin America and Southeast Asia.

This comes amid the USDA’s Strengthening Organic Enforcement (SOE) Final Rule, which demands that distributors and other intermediaries comply with the new USDA Organic Certification regulations by March 19, 2024.

“Consumer interest in health and sustainability has supported positive sales in the organic food category in the US, reaching a record value of nearly US$ 62 billion in 2022,” Nate Ensrud, VP of technical services, certification and food safety solutions at FoodChain ID, tells Food Ingredients First.

“The interest in sustainability continues to grow as governments and NGOs publicize the urgency of climate change and the food industry’s contribution to carbon emissions. In addition to health, consumers are looking for markers of product quality, and the USDA Organic Program Certification is a widely recognized and respected food product label.”

“Sixty-seven percent of US consumers are aware of the USDA Organic product claim, according to The Hartman Group. Of those aware of USDA Organic, two-thirds state the certification increases their likelihood of purchase.”

The organic trend is here to stay, Ensrud stresses, with the market projected to grow at a compound annual growth rate of over 12% from 2022 to 2029. Moreover, the Organic Trade Association states that organic food sales are driven by consumer interest in sustainability and the health halo of organic products.

Sustainability and food safety
Food safety has always been a concern for the F&B industry. A 30-year-old study states that scientists then considered food safety and unbalanced diets the most critical issues. For consumers, it was the e-numbers.

Climate change urgency and the F&B's contribution to carbon emissions is gaining the attention of governments and NGOs.“FoodChain ID is focused on food safety issues around ingredient risk, such as biological, chemical and physical contamination, food fraud and the need for global standards in food safety as a certification body,” underscores Ensrud.

Interestingly, 60% of consumers globally now rate “sustainability” as an essential purchase factor, fueling demand for sustainably sourced products ever higher.

Ensrud further informs that the company sees an emerging area of new interest in the booming category of sustainability claims - the “need for independence and transparency.”

Notably, as the demand for organic labels spikes, consumers usually place more trust in organic labels that ensure transparency. Further, strict certification processes assure consumers that organic labels follow verified meaningful production standards beyond marketing claims.

FoodChain ID recently launched a global Regenerative Agriculture Standard to help its clients meet supply chain expectations for on-farm practices that support a healthy planet, underscores Ensrud.

“To address the need for carbon credit verification and independent measurement of carbon contribution claims, we are partnering with ReSeed to incentivize, measure and verify the progress of carbon sequestration through regenerative agriculture practices.”

Closing gaps in the supply chain
Ensrud flags that continuous improvement and updates to the regulation ensure that certifying bodies have an adequate set of tools and rules to close potential gaps in the organic supply chain.

60% of consumers globally now rate “sustainability” as an essential purchase factor.“In March 2023, the USDA National Organic (NOP) program had one of the most significant updates to the regulation since it came into existence. The Strengthening Organic Enforcements Rule amended the current regulation to strengthen the oversight and enforcement of the production, handling and sale of organic agricultural products.”

The update has addressed who can claim exemptions from organic certification, added additional scrutiny for all organic goods coming into the US through NOP import certificates, standardized the requirements for inspectors and certification body personnel, added requirements for labeling of non-retail containers and how organic content is calculated for multi-ingredient products to name a few areas, notes Ensrud.

In other supply chain advances, ofi’s sustainability insights platform, AtSource, links farmers’ environmental plans, greenhouse gas emissions and nutrient reports to its customers to provide transparency across the supply chain.

Investing in the future
Ensrud envisions a vibrant future for US food certification as consumers look for trusted markers of important product attributes.

“Our recent acquisition of Organic Certifiers puts FoodChain ID and its entities as a top five global certifier for the USDA National Organic Program by total number of operations. We are investing in the future because we are positive about the growth of the food industry and the need for supply chain services.”

Meanwhile, FoodChain ID has invested in a multitude of digital services that support regulatory, food safety and food product development. Another area of the certifier’s strategy involves certification and technologies that support regenerative agriculture with principles of soil health, land management and biodiversity. For this, it conducts carbon emission and life cycle assessments at the farm and the product level.

“Our mission is to make it easier to keep the food supply chain safe and transparent,” he concludes.

By Insha Naureen