Stricter regulations on organic imports set to be implemented in
March may substantially impact the U.S. market for organic pea protein.
The US organic pea protein market has been heavily influenced by fraudulent activity over the past 5-7
years. Loopholes in organic regulations have been exploited by bad actors, driving pricing down and
US volume consumption up. Experts have raised concerns that the numbers don't seem to align,
suggesting that the global supply of organic peas is insufficient to meet the existing U.S. demand for organic
pea protein.
New regulatory requirements from the USDA are poised to create major disruptions in
this market. Starting March 19, 2024, all organic pea protein imported into the US will require an
electronic import certificate linking the production lots with the raw material lots for the raw
peas. As the U.S. border starts rejecting fraudulent organic pea protein, the demand for authentic
organic peas and certified organic pea protein is anticipated to increase. Considering the present
organic pea supply conditions, it is anticipated that there will be shortages of the product.
Additional details on the Strengthening Organic Enforcement (SOE) rule below:
The Strengthening Organic Enforcement (SOE) rule is a significant update to the organic regulations in the
United States. It was finalized by the United States Department of Agriculture (USDA) on January 19, 2023,
and is expected to be fully implemented by March 19, 2024. The SOE rule is designed to strengthen oversight
and enforcement of the production, handling, and sale of organic agricultural products.
The SOE rule includes a number of key provisions, including:
Requiring electronic import certificates for all organic imports: This will make it more difficult for
fraudulent products to slip through the cracks, as the electronic certificates will be easier to verify than
paper certificates.
Strengthening oversight of accredited certifiers: This will help to ensure
that certifiers are properly vetting and auditing organic operations, which will help to prevent fraud.
Requiring
operations to improve recordkeeping and fraud prevention procedures: This will make it more difficult for
fraudulent operators to hide their tracks.
Conducting supply chain traceability audits: This will
help to identify any weak links in the supply chain that could be exploited by fraudsters.
The SOE rule is expected to have a number of benefits, including:
Reducing fraudulent organic imports: The rule is expected to make it much more difficult for fraudulent
products to be imported into the United States.
Improving consumer confidence in the organic
label: Consumers can be confident that the products they are buying are indeed organic, thanks to the
strengthened enforcement measures in the SOE rule.
Protecting organic farmers and businesses:
Organic farmers and businesses will be protected from unfair competition from fraudulent operators.
Prinova has always offered organic pea protein with traceability certs per lot, providing our customers an
added assurance on authenticity. We’re partnered with the global leading producer of pea protein
and are committed to provided reliable delivery of high quality product during this time of influx.
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Market Watch
Micronized Organic Pea Protein 80-85%
The SOE rule is an important step in ensuring that the organic label continues to be a symbol of quality and trust. The rule is expected to have a significant impact on the organic industry, both in the United States and around the world.
