US: U-turn on organic pet food regulation sparks industry backlash

Last year, the United States Department of Agriculture (USDA) gave the organic pet food industry a boost by announcing a new rule that established standards for the use of organic mushrooms in pet food.

The Market Development for Mushrooms and Pet Food rule was due to come into force in February this year, creating certainty for a market that was previously subject to inconsistent standards. However, a regulatory freeze put it on hold until March, with a compliance deadline of March 2027.

Additionally, the US federal agency has recently launched a consultation process, announcing a proposal to rescind the rule.

Strong opposition

The Organic Trade Association (OTA) was quick to strongly oppose the proposal, stating that it was issued without the oversight of the USDA’s National Organic Standards Board (NOSB), which Congress established to ensure adequate and transparent standards for organic produce and which had been consulted on the original rule.

The OTA warns that rescinding the rule will harm the expansion of the organic pet food industry.

“Without a regulatory framework, organic producers – especially livestock farmers in states such as Pennsylvania, California, Wisconsin, North Carolina, Arkansas and Texas – would lose access to this market and the organic premiums it provides,” it states.

Reversing years of progress?

The Pet Sustainability Coalition (PSC) has also voiced strong opposition to the USDA’s proposed rollback. The group emphasizes that the 2024 standards were the culmination of over 2 decades of collaboration among stakeholders, ultimately providing long-awaited clarity to the organic pet food market.

According to the PSC, rescinding the rule would not only reverse years of progress and increase regulatory confusion but also disproportionately harm small businesses and processors who have already begun developing new organic products in response to growing consumer demand.

The coalition points out that, contrary to USDA claims, the rule reduced administrative burdens and expanded access to the organic market for brands and certifiers.

Regulatory clarity

The rule, published in December 2024, set definitions for organic pet food production, delineating pet food from other animal feeds within the National Organic Program.

It introduced definitions for “pet” and “pet food” within the organic regulations and established composition and labeling standards, including the allowance of certain synthetic substances, such as taurine.

Stifles investment

The USDA explained at the time that the organic market has a “reasonable expectation of growth if uncertainty and inconsistency are removed as barriers.”

“The final rule issued in 2024 provided long-overdue regulatory clarity for the organic pet food sector, which has shrunk from $125 million (€109.4M) in sales in 2015 to just $104 million (€91M) in sales in 2024,” says the OTA.

“Pet food as a category has not experienced the same tremendous growth that organic food and agriculture have experienced.”

“OTA urges USDA to reverse course, preserve the 2024 rule, and consult with the NOSB before taking further regulatory action.”

The association representing organic agriculture and products in North America notes that other jurisdictions, such as Canada, have had organic mushroom standards in place for years. The 2024 rule opened the door to a viable organic pet food market, but shutting it would prevent innovation and investment in a market with clear consumer demand.