Issues to Consider Before Signing Producer Contracts in Organic Farming
Contracts signed between Control Bodies (hereafter referred to as CBs) and operators are among the most critical steps in the organic production process. There are many different CBs both in Türkiye and worldwide, and each may include different provisions in their contracts. However, regardless of which CB you work with, it is essential to read the contract carefully before signing, ask about anything you do not understand, and ensure clarity.
1. Contracting Parties
Although this issue may seem simple, mistakes are frequently made. A CB can only inspect the operator with whom it has signed a contract. In other words, during an inspection, the name of the business observed in the field must be identical to the name written in the contract. If the business signage or documents bear a different name, the CB will request official documents proving that the business truly belongs to the contracted operator.
Sometimes an operator may wish to have a unit inspected that does not legally belong to them but is used entirely for their own production and marketing activities. In such cases, an additional contract (e.g., a lease agreement or subcontracted processing agreement) clarifying the legal relationship is required.
2. Regulations and Scopes Authorized for the CB
Operators must review the regulations and scopes listed in the contract according to the markets in which they intend to sell their products. Not every CB is authorized for every regulation or scope. For example, if the operator wants to sell an organic animal product (or a mixed product containing organic animal ingredients) to a customer in the European Union, the CB must be accredited not only under the EU Organic Production Regulation (EU) 2018/848 but also specifically within the livestock category. If processing and marketing activities are involved, the CB must hold accreditation for these categories as well.
A common mistake is for an operator to think, “I will only sell my products in Türkiye, so EU or NOP Regulations are not relevant for me.” However, if the buyer subsequently exports the product to the EU or the USA, these regulations will apply to the product regardless.
For this reason, it is very important to determine the target market clearly before starting organic farming and to ensure that the CB you plan to sign a contract with is accredited for both that market and the relevant product categories. This is especially critical for operators with a broad product range targeting diverse markets.
3. Issues Not Stated in the Contract
In organic farming contracts, operators commit to complying with the relevant regulatory requirements. This means that even if all clauses are not explicitly written in the contract, the operator is still responsible for complying with all provisions of the relevant regulations. Most contracts include a clause such as:
“For issues not explicitly stated in this contract, the Organic Farming Regulation of Turkey (Org-TR Reg.), the delegated regulations and implementation guidelines, as well as the certification documents of the CB, shall apply.”
4. Obligations of the Operator
Organic farming contracts specify in detail the obligations of the operator. Some of the key ones are as follows:
4.1 The operator must allow the inspection of all organic and conventional units as well as their production records. Refusing with arguments such as “This parcel is not organic, why inspect it?” may be considered a major non-conformity and could even lead to contract termination. In such cases, the CB also has the right not to refund the fee received under the contract.
4.2 In addition to annual inspections, operators must accept announced and unannounced additional inspections by inspectors from the CB, the Ministry of Agriculture and Forestry, USDA NOP, the European Commission, or accreditation body representatives. These inspections may incur additional fees.
4.3 During inspections, the operator is responsible for the safety of the inspection team and their own representatives. If there are mandatory safety or hygiene measures, the inspection team must be informed in advance, and any required protective equipment must be provided by the operator.
4.4 The operator must also comply with the policies, procedures, and instructions of the CB’s quality system, in addition to the regulatory requirements.
4.5 If animal manure is used, the operator must provide the CB with details of manure storage facilities, spreading plans, and correspondence with other enterprises.
Ref: Org-TR Reg. Art. 21(1)(ç)
4.6 If subcontractors such as traders, processors, or storage facilities used by the operator are inspected by different control bodies, the operator must permit information exchange between these bodies.
Ref: Org-TR Reg. Art. 42(1); EU Reg. (2021/1698) Art. 21(4); USDA NOP § 205.501(13)
4.7 If the operator or their subcontractors terminate their contract with a CB and sign with another, they must authorize the transfer of documents such as producer lists, parcel details, certificates, stock reports, and records of non-conformities to the new CB.
Ref: Org-TR Reg. Art. 42(1); EU Reg. (2021/1698) Art. 21(5)
4.8 For CB changes under USDA NOP scope, the NOP 2604 Instruction – Responsibilities of Certified Operations Changing Certifying Agents applies.
4.9 The operator is responsible for investigating complaints, keeping records, taking corrective actions, and presenting these records to the CB during inspections.
5. Obligations, Authority, and Responsibilities of the CB
CBs also carry responsibilities. Some of these include:
5.1 CB staff and inspectors must keep all information about the operator confidential, disclosing it only to the relevant official authorities. The Ministry of Agriculture and Forestry retains the right to request such information.
5.2 CBs cannot provide consultancy services. While they may answer questions regarding the inspection process, they cannot advise on matters such as “Which pesticide should I use against a specific pest?”
5.3 According to the EU Organic Production Regulation (EU) 2018/848 and the Delegated Regulation (EU) 2021/1698, if there is suspicion of any non-conformity affecting the integrity of organic products, the CB must immediately inform the European Commission and other control bodies.
5.4 If the European Commission notifies about suspected or detected non-conformities concerning imported organic products, the CB must conduct an investigation and inform the Commission using the template specified in EU Reg. (2021/1698) Art. 22.
Conclusion
Organic farming contracts impose significant responsibilities on both operators and CBs. Therefore, it is essential to carefully review every clause of the contract before signing, clearly define your market, and maintain constant communication with the CB. Doing so will help you avoid unpleasant surprises in the future and ensure a smooth certification process.