Millions of pounds of apparently fake 'organic' grains

Published Jun 17, 2017

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Washington- The organic industry is creating an anti-fraud task force in

the wake of a Washington Post report that millions of pounds of "USDA

Organic" soybeans and corn imported through Turkey appear to have been

fraudulent.

Organized by the Organic Trade Association, the task force

would develop methods for companies to ensure that imports of organic products

are actually organic.

"There is a strong desire on the part of industry to

stop the incidence of fraud in organic," said Laura Batcha, director of

the association. "The consumer expects that organic products are verified

back to the farm. The industry takes that contract with the consumer very

seriously."

Last month, The Post reported that three enormous shipments

of "organic" corn and soybeans - large enough to constitute a

meaningful proportion of the U.S. supply of those commodities - had reached the

US.

Documents and interviews indicated that the shipments were

not really organic - in fact, some had been treated with pesticides en route to

the US. All three shipments hailed from Turkey, one of the largest exporters of

organic products to the United States, according to Foreign Agricultural

Service statistics. With the "USDA Organic" designation, the value of

the shipments rose by millions of dollars.

The report confirmed the suspicions of many US farmers, who

have seen prices by as much as a third as the volume of imports of organic corn

and soybeans have climbed rapidly in recent years.

After the story appeared, one of the nation's largest

organic inspection agencies, CCOF, issued a notice to its clients indicating

that it "lacks confidence in the organic status of foreign grain.” The

agency instituted rules requiring that organic grain shipments be traceable

back to growers.

One of the Turkish exporters involved in the shipments

described by The Post, Beyaz Agro, has been "decertified" as an

organic company by the USDA.

Now comes news of the task force. Some US farmers look sceptically

at the effort because, they say, they have been waiting for two years for

protection from cheap - and fraudulent - organic imports.

John Bobbe, executive director of the Organic Farmers'

Agency for Relationship Marketing, or OFARM, a farmer cooperative, declared

that he was "amused" by the industry effort. He noted that many

members of the Organic Trade Association have benefited from the lower prices

on organic corn and soybeans.

The three shipments examined by The Post represent roughly 7

percent of annual organic corn imports and 4 percent of organic soybean

imports.

"It remains to be seen whether this effort is serious

or not," Bobbe said "The OTA has been strangely quiet about this

issue. It seems they have been looking the other way - the 'see no evil'

scenario. But I guess they can't ignore it now. I think the fire is burning

enough that the flames can't be stamped out."

The USDA has been far too lax - and slow - in ferreting out

fraudulent imports, US organic farmers have complained. For months, the agency

has said it has been investigating fraudulent grain imports.

If the anti-fraud efforts go no farther than publishing a

set of "best practices," Bobbe suggested, little is likely to change.

A list of ethical practices, he said, will not stop an importer intent on the

quick profits that can come from relabeling conventional grains as "USDA

Organic."

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But Batcha said that the industry is working on more than a

set of best practices. It is also lobbying to give the USDA broader enforcement

powers in the next farm bill, she said.

The association is also pushing Congress for new technology

to trace organic products all the way back to the farm. It will also ask that

the USDA's National Organic Program submit to Congress an annual report on

enforcement actions.

"We're going to Congress - we want to close the

loopholes," Batcha said. "The task force's work is important but it's

not the only thing we're doing."

WASHINGTON POST

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