Jun 12, 2025

With its new regulation (EU) 2018/848, which has applied to its member states since 2022, the EU is seeking to strengthen consumer trust in the organic sector. Since 1 January 2025, organic imports from third countries also need to be fully compliant with the EU specifications. In the past, equivalent standards from each country’s approved control bodies were accepted. Today, however, the principle of conformity requires full implementation of all EU regulations – without accounting for regional circumstances.

This harmonisation is posing significant structural and economic challenges for producers in third countries. Initial feedback from our countries of origin paints a varied picture, with access to the European market becoming less worthwhile for many smallholders.

One particular focus of the new regulation is group certifications. In the past, all cooperatives including their members were deemed certified if they were tied to an organisation which had certification. All members were checked internally, with external spot checks being carried out by the organic control bodies. The stipulations for group certifications are now legally regulated for the first time:

In many third countries, these requirements are resulting in additional organisational expenses, higher certification costs and a complex structural reorganisation within the cooperatives. This is due to the contrasting baseline conditions compared to Europe. In third countries, there is often a lack of adequate technical equipment and infrastructure. Added to this are logistical challenges, such as the poor accessibility of certain regions or producers that are widely scattered.

The actual impact of the new regulation differs by region, but the main challenges are similar: rising certification costs, additional administration work and generally increased complexity.

In Madagascar, for example, organic certification was previously issued in the name of our partner PREMIUM SPICES. This extended to five affiliated cooperatives. Now each of these cooperatives needs to be certified individually, which in addition to higher personnel costs means a five-fold increase in certification costs. The country’s poor infrastructure is also delaying the process.

In Peru, the ACOPAGRO cooperative, which we have been affiliated with since it was established in 1997, has used the new regulation as an opportunity to review its group structure. Some members have been excluded due to their turnover figures or size. The resulting reduction in certified cultivable land has ultimately led to a decline in the cooperative’s overall production levels. Additionally, several producers have decided to sell their crops as conventional goods.

In the Dominican Republic, where we and our subsidiary YACAO work closely with smallholder organisation FUNDOPO, only a few changes are necessary. FUNDOPO is already organised regionally in smaller sub-groups and, thanks to its Fairtrade certification, has the democratic member structure required by the EU. Larger farms that now require individual certification are being assisted on a case-by-case basis.

PRONATEC prepared early for the new framework conditions and systematically analysed the associated requirements. To ensure that the adjustment process runs as smoothly as possible, we are supporting our partner cooperatives at the source with specific measures. These include site visits by our specialists and technical training on digital tools that are used for internal checks.

We are also keeping an eye on the few larger producers who in future can no longer be included in the group certification. In the Dominican Republic, for example, we are working with FUNDOPO to identify affected members. We are providing them with start-up funding or helping them to prepare their documentation. The aim is to facilitate a straightforward individual certification process for these producers.

Together with additional increasing requirements – primarily those in the Regulation on Deforestation-free Products (EUDR) – the new stipulations are causing some smallholder organisations to rethink their market strategy. In discussions with local producers, similar points come up time and again: the increased certification effort is disproportionate to the current compensation for EU-compliant organic products. Direct sales to local buyers or alternative export markets with less complicated requirements, such as North America, appear to be easier and more lucrative. Fast and direct payment in particular plays an important role for small producers.

« Many producers prefer selling as conventional because such buyers don’t demand quality or traceability. »
Wilder Nahui, Managing director FUNDOPO

For some producers, withdrawing from the EU organic certification has become a serious option. Without an equivalent adjustment to the organic premiums, this “trend” will continue, threatening to make Europe less significant as a sales market. In the short to medium term, this would lead to a decline of certified organic goods from third countries, along with price increases and fluctuating availability. To keep the risk of shortages to a minimum, we are increasingly seeking to diversify our sources, for example through new partnerships in countries such as Sierra Leone.

Despite and precisely because of the growing pressure to regulate, we remain committed to our direct sourcing approach based on fair conditions. Reliable, long-term partnerships are particularly worthwhile in times of increasing regulation requirements, as they allow PRONATEC to share practical knowledge in a flexible way with the producers at the source. Direct , personal contact on site is especially important when legislative changes are on the horizon, as it enables early alignment of necessary measures with local conditions and practical experience. This is how we are able to continue acting responsibly and sustainably in an increasingly complex environment.