By SOS Director of Business Development and Technical Affairs, Johanna Phillips
Who thought commercial availability would be the buzzphrase of 2024? Buzz, minefield, or electric fence- commercial availability conversations fit the jolt-like analogy for businesses during audits and compliance evaluations. It’s partially because it doesn’t get adequate attention routinely and partially because people don’t really understand that the commercial availability clause is intended to be an exception, not the rule in sourcing.
During the National Organic Coalition (NOC) pre-National Organic Standards Board (NOSB) meeting in Portland, Oregon, this fall, commercial availability was the topic of the hour, and the trend continued in NOSB public comments. In November 2024, SOS joined a panel of seed experts to discuss what it will take to change the stagnation of organic seed usage. The USDA National Organic Program regulation mandates organic seed usage, yet usage and investment in organic seed has stagnated – without increase over the last several years. This is directly linked to the allowance for untreated, non-GMO, nonorganic seed when organic seed (or an equivalent variety) is not commercially available.
The organic regulation defines the term “commercially available” as the ability to obtain a production input in an appropriate form, quality, or quantity to fulfill an essential function in a system of organic production or handling, as determined by the certifying agent in the course of reviewing the organic plan.
Commercial availability is a subjective enforcement requirement, but it has a direct market impact on businesses- not only those that use the ingredient or production factor (including seed) but also businesses that are preparing and equipping products for the marketplace. In a risk-based certification system, it can be lost, but businesses need to examine what opportunities exist to increase the use of products that are subject to commercial availability provisions.
In our fall 2024 NOSB comments, SOS advocated for improved instruction and focus on a risk-based schedule for evaluating commercial availability. However, certifiers and NOP are the backstop, not the whole team, in the sports metaphor of organic compliance. Looking at a holistic system, there are opportunities to increase and improve the use of organic options throughout the supply chain. What do the non-regulatory solutions look like for businesses?
Internal Business Practices- Use of Commercial Availability Exclusion by Certified Entities:
Certified businesses are obligated to continuously evaluate sourcing practices and try to test and utilize organic sources wherever possible. Think of this relating to commercial availability: Organic IS the requirement, and nonorganic solutions are only available when the need CANNOT be met with an organic product. Creating a culture of Organic First, with a commitment to continuous improvement in sourcing more organic products, provides the basis for supporting the ongoing allowance for commercial availability provisions in the regulation. Rules that are abused are primed for re-evaluation and change- and frankly, commercial availability is primed to be challenged. Perfect isn’t the requirement, but honest internal assessment and dedication to organic products lays the groundwork for increasing market stability in organic and driving motivators for improvements in organic supply. There are VALID reasons to source nonorganic seeds and ingredients, so you write your own story about this article if you believe it’s implying there aren’t. We’re speaking to the reality of market stagnation stemming from a lack of demand- Supply exists when demand is present in our capitalistic marketplace. The foundation starts with adequate demand, driving research, innovation, and competition for suppliers to invest in growing organic supply.
Crop: Businesses can contact seed suppliers as far as a season and a half in advance- many seed companies will increase production when a need is secured. This is especially true for larger production systems- let the seed supplier know what attributes you need, including disease resistance, supply, germination, growth rate, and any phytosanitary requirements for your growing region, and your demand will drive their production.
Ingredient Sourcing: The fact is that organic ingredients can be more expensive, and businesses are motivated to manage costs in sourcing. With ingredients used in minute amounts, like flavors, the time investment to obtain documentation for nonorganic sources is not typically factored into sourcing. However, it is not insignificant. In the post SOE era, USDA has provided up-to-date supply chain insight through the Organic Integrity Database. The era of not knowing who produces what is behind us and businesses should be maximizing this resource to vet suppliers and increase organic sourcing. Suppliers are motivated to innovate- and will match an ingredient’s attributes if you tell them what you want or need.
Internal Business Practices: Production and Sale of Organic Option
Sales: Sales teams in businesses selling both organic and nonorganic options have a critical role in supporting the nuances around commercial availability and the importance of delivering a compliant solution. Cost cannot be a factor in opting for a nonorganic option- and sales teams play critical front-line roles in compliance rather than pathways to using the exclusion. Increasing internal knowledge about organic options to commonly sourced nonorganic products provides an opportunity to educate buyers about areas in which they can increase organic sourcing.
Regulatory Teams: The quality and regulatory team is the internal oversight mechanism for compliance. It’s essential they are empowered to support continuous improvement in commercial availability decisions through the business culture and leadership support. Internal regulatory or quality teams are the accountability framework to sourcing, sales, and background efforts to validate supply chains.
Size Matters: Change must include larger companies.
The reality of the market is that change is more significant when larger businesses drive the marketplace demand. Setting a public commitment to increasing organic sourcing year over year and benchmarking success against previous years creates a market buzz and would impact the organic marketplace for years to come, including in research and innovation, with a benefit realized by all sizes of businesses. If you are in one of the larger businesses, you hold the power to improve this marketplace – and choosing to push Organic First- will reap dividends throughout the sector.
The concept of commercial availability, while intended to provide flexibility, has become a significant compliance challenge for organic businesses. By understanding the nuances of this regulation and actively working to source organic ingredients whenever possible, businesses can minimize the risk of non-compliance and uphold the integrity of the organic label. This requires a proactive approach, including continuous evaluation of sourcing practices, testing for organic alternatives, and fostering a culture that prioritizes organic options. By embracing these strategies, businesses can navigate the complexities of commercial availability and contribute to the growth of a sustainable and ethical organic industry.