Last month, a new USDA rule concerning organic certification requirements came into effect. Named Strengthening Organic Enforcement (SOE), it was implemented on March 20, 2023, with a one-year transition period ending on March 19, 2024. You can read the entire rule here.

Before this rule change, distributors of organic foods were not required to obtain certification from a third-party entity. However, under the new rules, even distributors who do not process the food, such as those who merely receive and deliver boxed bulk goods, must meet certain conditions to be certified organic.

Some of my clients operate USDA-inspected plants, using certified organic ingredients to produce ready-to-eat organic foods. It’s right that that they are required to obtain third-party organic certification.

But what about distributors like us, who are solely involved in receiving, warehousing, and delivering organic goods? We don't process the food itself; we simply transport it. We don’t open boxes. All the meat is COV packaged and has tamper-proof tape seals on the boxes.

I reached out to the USDA via email to clarify whether we needed to undergo the time-consuming and costly process of organic certification. I explained that our company's role is strictly limited to delivery.

The response from the USDA was somewhat generic, likely due to the volume of inquiries they receive. While it didn't directly address my questions, upon careful reading, it became evident that even distributors involved in the distribution of bulk-packed organic ingredients for further processing are required to obtain organic certification to prevent fraudulent organic claims.

From a consumer and regulatory perspective, I understand the rationale behind the new rules. Ensuring the integrity of organic food programs and claims in the market is crucial.

However, from a practical standpoint, the new rules increase costs for consumers across the board. And where does this regulatory expansion end? What about less-than-truckload (LTL) carriers who assemble and ship mixed pallets?

One determining factor in the new rules is who retains ownership of the organic meats used as ingredients. If a trader or LTL carrier is involved, certification is not required. But if a distributor takes ownership of the food, certification becomes necessary.

I'm open to hearing arguments as to why these new rules benefit our food system, but to me, they seem unnecessary. If the USDA is concerned about preventing fraudulent organic labeling, they could focus on improving oversight within their inspection system.

What are your thoughts? Do you believe the new rules are necessary?

New Organic Certification Rules: Are They Reasonable?

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