Navigating the Impact of the New EU Organic Regulation

FiBL’s impact study revealed that while the new regulation aims to enhance integrity, transparency, and harmonisation within the organic sector, it also presents serious challenges. Approximately 70% of smallholder groups (around 1,300–1,500) will need to adjust their legal structures, group composition, or certification approach to remain compliant. Without these changes, they may lose certification in 2025–26, potentially reducing product availability and increasing costs in organic markets.

Data from Fairtrade International indicates that many producer organisations feel underprepared to meet the new requirements. They have expressed the need for more time to implement corrective measures, clearer and more consolidated guidance, and affordable technical support in areas such as legal restructuring and Internal Control System (ICS) improvements.

The degree of difficulty in adapting to the new regulation varies by region:

• Africa: Large producer groups (over 200 members) will face higher costs as they must form multiple legal entities. Many cooperatives will also need to separate non-organic members from their structures.

• Asia: Groups originally organised by processors or exporters must restructure, and producers are struggling with compliance due to membership requirements and the challenge of monitoring farmers registered in multiple groups.

• Latin America: Well-established organisations are now required to undergo structural changes, but resistance to these changes has slowed adaptation.

• Türkiye: Many producer groups, which previously functioned under 100% individual control, must transition to an Internal Control System (ICS), requiring a cultural shift in how producers view their role.