U.S. Bans Inspector of Organic Farmers in China After Audit

http://online.wsj.com/article/SB100014240527487
04324304575306812625653830.html?mod=fox_australian
U.S. Bans Inspector of Organic Farmers in China After Audit

The U.S. Department of Agriculture said Monday it was banning an organic-food inspection group from operating in China nearly two years after the department proposed the ban.

According to the USDA, which certifies private organizations to inspect organic farms, a nonprofit Lincoln, Neb., group called Organic Crop Improvement Association improperly used Chinese government employees to inspect Chinese farms that use state-owned land to grow crops for export to the U.S. bearing the USDA's organic seal.

Under the USDA's eight-year-old organic program, farm visits are supposed to be conducted by independent, third-party inspectors to avoid any conflict of interest. Amanda Brewster, interim executive director of OCIA, which once was one of the largest organic-food inspection agencies in China, declined to comment in an email message. OCIA can continue to inspect food for compliance with U.S. organic standards in the U.S., Canada and Mexico, among other countries.

The USDA's ban isn't expected to disrupt the flow of organic products from China to U.S. supermarkets. The USDA's long spat with the Nebraska group had already prompted many Chinese farmers to arrange for periodic visits from other inspection groups accredited by the USDA.

According to the USDA, OCIA largely stopped its farm inspection work in China last year. The USDA didn't levy any fines against OCIA, which can apply for re-accreditation in China after one year. The USDA began trying to revoke OCIA's authority to operate in China after a 2007 audit uncovered the use of Chinese government employees as farm inspectors. OCIA appealed the move.

"This is far too long to wait, especially considering it is absolutely essential that USDA uphold the rigorous standards and integrity of the organic food label," said Rep. Rosa L. DeLauro, the Connecticut Democrat who is chairwoman of the agriculture appropriations subcommittee.

Write to Scott Kilman at scott.kilman@wsj.com