The certification obligation for "organic" products, stemming from European regulations, proves practically unfeasible for certain entrepreneurs. The strictness of these rules can result in excessively high compliance costs. Unfortunately, the regulatory burden effects of this European measure were not adequately and timely analyzed.
The impact of the certification requirement has not been properly assessed, and it is crucial to identify its associated costs. The advisory body ATR suggests aligning future regulations more closely with the reality faced by entrepreneurs. Additionally, it advocates a reconsideration of European regulations, aiming to reduce compliance costs.
The current approach, derived from an EU regulation, inadequately considers the practical impact on entrepreneurs. The pursuit of fraud prevention leads to a stacking of inspections and requirements in the supply chain. Especially small retail outlets face an unacceptable regulatory burden. It becomes challenging for them to present both organic and non-organic products in a workable manner. Some entrepreneurs are even contemplating ceasing the sale of certified organic products.
ATR advises a closer examination of the regulatory burden and an evaluation of practical and feasible measures. It emphasizes the importance of timely involvement of entrepreneurs in the development of EU legislation. The advisory body advocates an inclusive approach, where not only directly involved parties but also indirectly affected ones are heard. Lastly, ATR proposes maintaining proportional regulatory burden and exploring whether stricter rules are the best solution for fraud prevention.
ATR's advice results from a Quick Scan conducted by the research agency Panteia, prompted by signals from the business sector regarding the impracticality of regulations concerning the certification of organic products. The findings underscore the necessity of reconsidering the current approach and taking into account the practical concerns of entrepreneurs in the organic sector.
Source: ATR