The additional certification requirements imposed by the European Union (EU) for organic beef have placed heavy pressure on costs, making it “very difficult to continue operating” in that market, said Marcelo Secco, CEO of MBRF Uruguay.
“The rules are unbelievable,” Secco said, referring to the EU’s regulatory framework. “The restrictions are extremely strict. We warned producers back in October that it would be very difficult to keep complying,” he added.
Among the most significant changes, Secco explained that the EU eliminated the concept of group certification, meaning that each farm must now be audited individually. “Every single property has to be inspected, which sends costs through the roof,” he stressed. The audits are carried out by foreign inspectors, adding further expense. “It just doesn’t add up financially. That’s the reality,” Secco concluded.
The situation is different in the United States, where the group certification system remains in place. “The U.S. continues using the group concept,” Secco noted. In MBRF’s case, a new inspection was recently conducted, expanding the number of certified producers under the program.
