ORGANIC producers say the viability of all its sectors are threatened by failure to clamp down on a rogue accreditation group.

And industry leaders are furious at the failure of the Australian Competition and Consumer Commission and Consumer Affairs Victoria to "put some muscle" into the case.

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The group offers to accredit farmers as organic for free, provided they sign a statutory declaration and consent to a soil test.

The farmers must also agree to "inspect" two other farmers who are seeking organic certification.

The process involves no independent inspection by a third party and raises serious authenticity concerns, organic leaders say.

The move also threatens to erode the viability of free-range farmers, as fake organic eggs can be sold much cheaper than genuine ones, putting genuine free-range and organic in the same price bracket.

A Victorian free-range farmer said the failure of enforcement agencies to act could threaten the viability of the industry.

"If the Victorian Government has recognised this as a certification body then vegies, meat - the whole lot (is threatened)," the farmer said.

"You almost have to pack up and go home ... at the moment, it is a de facto recognition as they haven't said this can't happen."

The farmer said Victorian Government representatives "just don't reply" to his inquiries.

It's understood the ACCC has known about the rogue group since September last year.

The Weekly Times has seen a letter from CAV to a complainant in which CAV says "(the accused) states that his organisation abides by the National Standard for Organic and Biodynamic Produce".

Biological Farmers of Australia standards committee convener Dr Andrew Monk said the industry had been "let down" by enforcement agencies.

"We feel this is a pretty overt case," Dr Monk said.

"It does have bigger implications and I don't think the regulators have appreciated that."

Dr Monk said inspections needed to be carried out by an accredited third party.

"I read what they're really saying (by avoiding accredited third party inspections) as 'we want to avoid scrutiny'," he said.

Agriculture Minister Tony Burke said farmers often raised concerns that producer complaints did not "make the threshold to gain the attention of the ACCC".

"It's one of the issues we've been trying to work through ... it's not an easy one," Mr Burke said.

The ACCC declined to comment.