Organic Report Fall 2021 - Flipbook - Page 37
ORGAN IC W O RLDWIDE
Disruptio n s an d o u tl o o k fo r U. S .–I n d i a o r g a n i c t r ade
A
s Senior Organic Trade Advisor, I’ve had the great
operations. To date, U.S. importers have been working
opportunity to travel and to be immersed in the
tirelessly to make sure their supply chains remain certified and
cultures of many countries. India is by far the most
viable during this transition.
exotic feast for all the senses — sights, sounds, smells, colors
and incredible tastes. It is also a land of great contrasts — from ANTI-DUMPING INVESTIGATION
the splendor of the Taj Mahal to the destitution of life on the
The situation became further complicated when the U.S.
streets. What I find most encouraging, however, are its people
International Trade Commission (USITC) announced an antiand deeply rooted agrarian traditions.
dumping investigation into organic soybean meal from India
According to The World of Organic
on March 31. In the middle of the world’s
Agriculture, India is home to 44 percent of
worst COVID-19 outbreak, producers in
the world’s organic producers, mostly very
India reacted by holding soybean meal
small landholders who have readily adopted
shipments out of fear that retroactive duties
organic methods. India is poised to be a
would be imposed on their products.
leading supplier to global organic markets
According to the FAS Global Agricultural
provided it can demonstrate it has the
Trade System, the U.S. did not import any
regulatory and compliance infrastructures in
organic soy flour and meal in April. This
place to assure the organic integrity of its
reaction quickly manifested into panic
exports. The Indian organic market reached
among U.S. organic poultry and egg
$69 million in sales in 2019, and consumer
producers, many of whom depend on highdemand for organic products grew by about
protein organic soybean meal from India to
12% in 2020. In addition, the Indian
feed their animals. Price estimates for
government has enacted various schemes at
soybean meal quickly rose to three times
national and local levels to boost domestic
their normal value, and despite better than
production, and growing conditions signal it
average organic supply in India, much of the
will continue to expand. However, things are
Bob Anderson is the Organic Trade product has not left the country.
never simple with India.
Association’s Senior Trade Advisor.
The anti-dumping investigation, petitioned
The U.S.–India organic trade relationship
by eight groups under the Organic Soybean
has shifted significantly over the past 12
Processors of America, argues that organic soybean meal from
months, with the revocation of the U.S.–India Organic
India is being sold in the U.S. at less than fair value, and that the
Recognition Agreement and anti-dumping investigation into
Indian government is providing unfair subsidies to producers
organic soybean meal causing severe market disruption and
and exporters. On May 14, USITC’s initial investigation
panic.
determined that the case had enough standing to proceed for a
full review at the Department of Commerce, which is
REVOCATION OF THE AGREEMENT
conducting a full investigation into this fall. A final
The National Organic Program (NOP) announced in January
recommendation on any duties to USITC could take until
it was revoking the organic recognition agreement with India.
spring 2022 — a long time away when you are feeding livestock.
“USDA does not have direct visibility or enforcement
India is the largest soybean meal exporter to the U.S., and
authority over many organic certifiers and operations in India
ranks fourth in soybean exports to the U.S. As poultry
that sell into the U.S. market. USDA has determined that we
producers scramble to find new suppliers while bean
need a more active oversight presence in India to more
processors and feed mills struggle to import, it is worth noting
directly protect organic integrity,” the agency wrote.
the U.S. supply chain, (bean to crushers to millers to livestock
Previously, Indian organic operators could gain NOP
producers) is fundamentally disconnected and lacks options
certification through a certifying agency accredited by India’s
for many of these organic poultry companies. While the
government, not USDA. This announcement set in motion an supermarket price for a dozen organic eggs has yet to rise,
18-month transition period, in which Indian organic operators there will likely be an impact on the cost of organic livestock
had until July 12, 2021, to APPLY for certification directly
products as we look to our 2021 harvest, resolution of the
with an NOP accredited certifier, and until July 12, 2022, to
antidumping case, and diminishing impact of COVID-19 on
earn full USDA organic certification to continue exporting to
the people of India.
the U.S.
Stay tuned — the impact of this will have wide-ranging
Information from USDA and industry sources suggest
effects on and spark innovation by U.S. organic soy processors,
there was significant confusion among Indian producers
feed millers, and livestock producers.
resulting in immediate panic in U.S. feed milling and livestock
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