[Industry News] Firmly Grasp the Key to Certification to Ensure High-Quality Development of the Organic Industry

Release Date:

2021-05-18 14:53

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Since the 19th National Congress, China has adhered to the development path of harmonious coexistence between humans and nature, continuously practicing the "Two Mountains" theory that lucid waters and lush mountains are invaluable assets, prioritizing ecology, pursuing high-quality development, and upholding the fundamental national policy of resource conservation and environmental protection.

The Central Committee of the Communist Party of China and the State Council's "Opinions on Comprehensively Promoting Rural Revitalization and Accelerating Agricultural and Rural Modernization" (the 2021 Central Document No. 1) clearly require strengthening supervision of agricultural product quality and food safety, developing green agricultural products, organic agricultural products, and geographical indication agricultural products, and promoting the establishment of national agricultural product quality and safety counties.

Organic products are highly favored by consumers because they embody the concepts of health, ecology, fairness, and care. Organic Product Certification As a health certificate for product qualification, a credit certificate in the consumer market, and a pass for product trade, it is an important high-end certification system guarantee for supply-side structural reform and meeting the needs of different consumer groups, carrying the mission of conveying trust and serving development.

China's organic industry has achieved remarkable development results.

1. The number of organic product certifications continues to grow.

Certification has gradually become the internationally accepted method for managing agricultural product and food quality and safety. In developed countries such as Europe and the United States, certification activities by third-party certification bodies have strengthened the safety systems of agricultural product and food production and operation enterprises, becoming an important means to ensure food safety. Certification information is the main method of conveying quality and safety information. It is the link and bridge of "Internet Plus" modern agriculture. The organic product certification system, through the combination of a good ecological environment with comprehensive inspection, certification, and supporting supervision and traceability systems, greatly reduces opportunistic behaviors such as fraud and counterfeiting in the market, lowers consumers' information search costs, and enhances trust between consumers and producers.

In recent years, China's organic product certification has developed rapidly, with increases in the number of certified enterprises, organic certification certificates, and issued organic codes. In 2019, a total of 21,746 organic certification certificates were issued nationwide, with 13,813 enterprises obtaining organic certification. From 2015 to 2019, the annual growth rate of organic product certification was 13.76%. The output value and sales of organic products showed steady growth, and the organic industry exhibited a trend of "thriving production and sales."

2. The organic industry has received increasing attention and emphasis from regulatory authorities.

In recent years, the Ministry of Agriculture and Rural Affairs, Ministry of Commerce, State Administration for Market Regulation, relevant government departments of provinces and cities, universities, and research institutions have held various types of international conferences, scientific research and standards seminars, exhibitions, and other activities related to organic products in relevant provinces and cities nationwide. These efforts have actively contributed to enhancing the global influence of China's organic industry, promoting the Chinese organic brand, polishing the golden signboard of Chinese organic products, and comprehensively advancing the development of China's organic industry.

The International Federation of Organic Agriculture Movements (IFOAM) established the IFOAM Asia Council in Asia and set up the Asian Organic Innovation Committee in Xichong, Sichuan. This committee specializes in researching and documenting innovative practical experiences in the development of the organic industry in Asia, especially China, promoting global attention to Asian local governments for organic agriculture (ALGOA), particularly China.

3. Local governments and market entities actively engage in the organic industry.

In the construction of organic product certification demonstration zones, Guangyuan City in Sichuan Province, led by the main leaders of the municipal party committee and government, has carried out the creation of an organic product demonstration city. Lizhou District of Guangyuan City has developed standardized demonstration bases and built the Longtan organic characteristic town, forming agglomeration effects such as organic agricultural planting and breeding, deep processing of agricultural products, rural science and technology demonstrations, culture, and rural tourism. It has created characteristic organic industries such as farm stays, rural organic lifestyle tasting, and organic restaurants, driving and leading industrial development.

In 2020, the National Rural Industry Alliance Conference, led by the Ministry of Agriculture and Rural Affairs, was held in Jiaxing, Zhejiang. Well-known brand enterprises nationwide, including Mengniu Group, Alibaba, Huawei, and Vanke, participated in the conference. Various market entities actively engaged in the development of the organic industry, bringing new vitality to the organic industry.

4. The international influence of China's organic certification continues to increase.

With the increasing trade exchanges, the global organic product market shows a good development momentum. China's organic product export trade volume has reached 894 million US dollars, with a total trade volume of 705,100 tons. In 2019, 15 Chinese certification bodies conducted overseas certification in 37 countries, with the total sales of overseas certified organic products reaching 12.549 billion yuan.

New Challenges and Opportunities for High-Quality Development of the Organic Industry.

The organic industry can build a new type of society characterized by harmonious coexistence between humans and nature, equality among people, green consumption, reverence for nature, environmental friendliness, and resource conservation. It is an important part of modern agricultural development and the realization of the rural revitalization strategy, and an important path to achieving rural revitalization.

The "14th Five-Year Plan for National Economic and Social Development and the Long-Range Objectives Through the Year 2035 of the People's Republic of China" (hereinafter referred to as the "Outline") deploys accelerating the construction of a new development pattern, promoting high-quality development, deepening supply-side structural reform, building a modern economic system, and constructing a new development pattern with domestic circulation as the main body and domestic and international dual circulation mutually reinforcing each other. It also puts forward new opportunities and challenges for the development of the organic industry in the new era.

1. New challenges brought by institutional reform and standard changes.

After the institutional reform of the State Council, the market supervision model has undergone significant changes, the regulatory enforcement team has been strengthened, regulatory methods have been continuously improved and innovated, greatly enhancing regulatory capabilities. In 2019, the strictest organic product standards in history were introduced. China's new version of the organic product certification implementation rules and national standards officially came into effect on January 1, 2020. The new standards and certification implementation rules are stricter than before in product production process management, input use, product testing, traceability systems, unique product codes, enterprise integrity, certification process management, and certification behavior management. The requirements are more specific, and penalties are more severe. This further improves the organic product certification system, standardizes organic product certification activities, and also puts forward new requirements for enterprises and certification bodies. The introduction of new standards, laws, and rules will inevitably change and lead the future development of China's organic industry.

2. New opportunities brought by rural revitalization.

In 2020, all 832 poverty-stricken counties nationwide were lifted out of poverty, marking China's entry into the stage of building a moderately prosperous society in all respects. The Party Central Committee put forward the "Four No Abandonments" requirements for poverty alleviation: no abandonment of responsibility, no abandonment of policies, no abandonment of assistance, and no abandonment of supervision after poverty alleviation. The poverty-stricken counties are mainly distributed in old revolutionary base areas, ethnic minority areas, and remote mountainous areas with underdeveloped transportation. These areas are suitable for developing the organic industry, improving the added value of agricultural products, using scientific management methods to achieve assistance, realizing agricultural production increase through industrial poverty alleviation, driving farmers' income growth, to achieve true poverty alleviation, prevent false poverty alleviation, prevent return to poverty, and truly complete the historic mission of building a moderately prosperous society in all respects.

3. New impacts brought by the new development pattern.

Promoting the formation of a new development pattern with domestic circulation as the main body and domestic and international dual circulation mutually reinforcing each other is a major strategic deployment made by the Party Central Committee with Comrade Xi Jinping at its core, grasping the domestic and international situation and focusing on high-quality development.

As the world's second-largest economy, second-largest importer of trade, largest emerging market, and most populous country, China's domestic GDP, per capita disposable income, and consumer spending continue to increase, and living standards keep improving. The development of the organic industry aligns with people's demand for high-quality organic products, meeting the growing needs for a better life. The organic industry is poised to face strong domestic market demand.

4. New Concepts Brought by Green and Sustainable Development

The new national security concept involves ecological security and food security. Requirements in areas such as ecological compensation, environmental governance, environmental protection, greenhouse gas emissions, and soil non-point source pollution control provide good opportunities for the promotion and application of sustainable development technologies and business models like organic industry, biotechnology research, and biological control.

Organic products satisfy people's pursuit of a prosperous material life, while an organic lifestyle and organic culture respond to people's aspirations for a better life and the highest spiritual needs, enhancing people's sense of gain, happiness, and security, representing an elevation of livelihood goals in the new era.

Countermeasures and Suggestions for High-Quality Development of the Organic Industry

Developing the organic industry is an institutional innovation for China's comprehensive deepening of green development. It is based on protecting the ecological environment and adhering to rural development strategies, deepening agricultural supply-side structural reform, ensuring the quality and safety of agricultural products, and meeting the growing consumption demands of the people. Promoting and developing organic agriculture nationwide plays an important role in implementing rural revitalization strategies, increasing farmers' income, and solving the "three rural issues".

1. Introduce industrial policies to promote the sustainable and healthy development of organic agriculture

In conjunction with the national "Belt and Road" strategy, the development policies for the Yangtze and Yellow River economic belts, the Western Development strategy, domestic and international dual circulation system construction policies, national poverty alleviation policies for the three states and three regions, and support policies for the Qinba Mountain contiguous development zone, policies should be introduced to support the industry by addressing issues restricting organic industry development such as rural waste treatment, rural water supply security, rural road construction, farmland tractor paths, reservoirs, greenhouses, monitoring platforms, composting facilities, drainage and irrigation systems, buffer zones, pest control devices like insecticidal lamps and insect boards, certification testing and training costs, exhibitions, brand creation, agricultural yield increase, and farmers' income growth.

Further deepen the construction of monitoring and traceability systems for production bases, encourage advanced technologies such as e-commerce, big data, and blockchain to drive development in trade and circulation fields. National market regulatory authorities should collaborate with multiple ministries including agriculture and rural affairs, commerce, culture and tourism, natural resources, and the National Development and Reform Commission to introduce corresponding support policies to better promote the development of the organic industry.

2. Increase financial and fiscal policy support to assist the development of small and micro agricultural enterprises

Currently, high financing costs restrict the development of small and micro organic enterprises. Governments at all levels and financial departments should make good use of fiscal and financial policies to reduce financing costs through financing, fiscal subsidies, and interest subsidies, alleviate enterprises' difficulties in capital turnover, attract social capital to organic agriculture, and use financial leverage to adjust the development pattern of the organic industry.

3. Promote the construction of standardized bases to drive the development of the organic industry

Complete organic industrialized enterprises and products require scale development. Only with scaled products can brands be formed, which provides strong market competitiveness. It is recommended that local governments cultivate, create, and certify a batch of standardized demonstration bases to lead and drive local industry development through these bases.

4. Strengthen scientific research and standard development to empower the organic industry

Encourage universities, research institutes, industry organizations, and related enterprises to increase basic research on organic product production technologies. For newly emerging and major pests and diseases threatening agricultural product safety, such as grape gray mold, citrus Huanglong disease, and weed damage, develop biological control technologies and biological or physical control technologies suitable for China's national conditions, with policy and funding support. Increase the promotion of scientific research achievements to ensure effective implementation, reduce production input costs for enterprises, lower labor costs, and maintain the confidence and enthusiasm of organic product producers.

Encourage the construction of science and technology demonstration and popularization bases nationwide to spread organic knowledge and culture in government agencies, factories, enterprises, schools, and kindergartens. Starting from childhood, cultivate children's environmental awareness and food safety awareness, advocate a positive organic lifestyle, and foster a social atmosphere that promotes organic culture and enjoys energy-saving and environmentally friendly organic living.

5. Optimize certification and accreditation services to ensure high-quality development of organic agriculture

Explore and improve remote audit and supervision mechanisms, study the feasibility of using big data, blockchain, remote auditing, and remote supervision systems and standards to reduce operating costs of certification bodies and lessen the burden on enterprises.

Through a "five-in-one" regulatory system of "legal norms, accreditation constraints, administrative supervision, industry self-discipline, and social supervision," regulate the behavior of certification bodies and standardize their management. Encourage certification bodies to comply with laws as a baseline and pursue excellence, avoiding superficial certification that does not assist enterprises. Certification bodies should standardize their operational processes, strengthen internal management, regulate certification personnel behavior, select high-quality products for the market through certification, serve enterprises, help improve product quality, regulate enterprise certification behavior, and cultivate enterprises' awareness of law compliance, quality, safety, integrity, and environmental protection.

Certification personnel should improve their ability to manage organic product production and operation and assist enterprises in producing products that meet standards. On-site audits should adhere to goal-oriented, problem-oriented, result-oriented, and responsibility-oriented principles. Certification is a value-added service process that helps enterprises improve product quality. Certification personnel must be responsible and mission-driven. Enterprises should not certify for certification's sake but be encouraged to produce qualified organic products, strengthen internal management, enhance product technology research and development, standardize production management, and production site management to realize the essential role of organic product certification.

Make full use of certification methods to cultivate, create, and certify a batch of standardized organic agricultural demonstration bases nationwide, build organic industry characteristic towns, and through these bases and towns, convey to consumers production bases and products that are traceable and trustworthy. Certification aims to recommend the best and highest quality products to consumers, thereby driving and leading the high-quality development of the organic industry.

6. Build domestic and international dual circulation trade platforms to smooth the organic agricultural product market

Fully leverage various trade and e-commerce platforms, support the development of community group buying, e-commerce, group purchasing, specialty stores, and channel sales to diversify organic product sales channels. Combine popular influencer marketing models, fully utilize the roles of organic industry associations, organic clubs, and organic alliances to build organic product sales and trade platforms, carry out docking activities between organic production bases and trade, open information channels, solve the last mile of product sales, inject new vitality into the organic industry, promote organic concepts, advocate organic culture, popularize organic knowledge, and drive the sustainable and healthy development of the organic industry.

7. Develop demonstration zones to promote regional and brand effects

Encourage local governments to develop demonstration zones, characteristic towns, and demonstration bases. Introduce policies to create regional brands, and through brand creation, initiate a wave of production management according to organic product certification and regional brand standards, establish determination to develop organic products, and lead the development of organic agriculture through regional brand creation activities.

8. Optimize the development environment and cultivate qualified market entities

Strengthen the main responsibility of enterprises and strictly manage production and operational behaviors. Some organic product manufacturers focus only on production and business operations, emphasizing product sales market expansion but neglecting the requirements of organic product standards, regulations, and certification rules. In many sales venues, the product sales are full of jargon, causing salespeople and buyers to lose confidence. Consumers believe that the enterprise leaders do not understand organic standards or regulations, questioning how they can produce qualified organic products, losing confidence in the enterprise's organic product production and the organic industry as a whole. China's Food Safety Law states that enterprises bear the main responsibility and are the primary responsible parties under laws and regulations. Therefore, organic products must strictly enforce enterprise main responsibility and strictly regulate production and operational behaviors. Enterprises that do not comply with laws or standards must bear corresponding responsibilities.

Strengthen training for professional farmers and new practical rural talents. By developing agriculture and increasing farmers' income through land rent, land shares, and migrant work, while widely carrying out vocational education and training for farmers, extensive training is provided for new practical rural talents, returning migrant workers, large-scale farmers, and new farmers. Through vocational skill competitions, product exhibitions, product tastings, expert reviews, and product promotions, farmers' enthusiasm, initiative, and creativity in developing the organic industry are stimulated, promoting rapid and quality development of the organic industry.

9. Increase publicity efforts to guide green organic consumption

Organic is not only product production but also a lifestyle and culture. Fully utilize central, provincial, and local media and various platforms. Both government and enterprises vigorously promote organic products, increase positive publicity in government agencies, schools, enterprises, transportation, tourism, and other places, advocate the concept of organic living throughout society, promote organic culture, propose green travel, and advance the sustainable and healthy development of the organic industry.

During the "14th Five-Year Plan" period, further firmly establish the development concepts of innovation, coordination, green, openness, and sharing for the organic industry. Lead the transformation of development methods through innovation, promote high-quality development and efficiency improvement of the organic industry, allow the broad masses to share the development achievements of the organic industry, develop China's organic industry into a world leader in setting organic industry standards and rules, guide the development direction of the organic industry in the global economy, and demonstrate the style of a major world power in global economic recovery, environmental protection, and targeted poverty alleviation, striving to build a prosperous, democratic, civilized, and harmonious socialist modern country!

Source: National Certification and Accreditation Administration

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