29847 en Europe

Organic markets for fruit and vegetables in Europe: 

Organic markets for fruit and vegetables in Europe Paul Pilkauskas Senior Commodity Specialist FAO, Rome, October 2001

Outline of presentation: 

Outline of presentation organic sales & markets shares growth rates Organic Fruit & Vegetables sales prices distribution channels organic production & Government support imports (quantities and prices) opportunities for developing countries to export to Europe

Organic sales (total): 

Organic sales (total) Germany US$ 2 100 million United Kingdom US$ 1 000 million Italy US$ 1 000 million France US$ 850 million Switzerland US$ 450 million Much smaller: Austria, Belgium, Denmark, Netherlands, Sweden Organic sales & Markets shares

Market shares organic sales: 

Market shares organic sales (% total food sales) Denmark 2.5 - 3 Switzerland 2 Austria 1.8 Germany 1.5 Much lower (about 1%): Belgium, Denmark, Italy, Netherlands, Sweden, UK. Organic sales & Markets shares

Market shares organic F&V: 

Market shares organic F&V Difficult to get data for all countries Market share organic F&V sales is higher than market share total organic sales Top three: between 5 and 10 % in UK, Switzerland and Denmark Organic sales & Markets shares

Annual growth rates: 

Annual growth rates Generally: 20 - 30 percent Highest growths in UK and especially Italy Italy 85 percent (1998-2000; annual) High growth rates but from small basis Growth rates of sales

Prices (1): 

Prices Prices (1) General lack of reliable, verifiable data Prices vary strongly among place, time and product Observed price premia range between 20 and 40 percent Cautious interpretation of data

Prices (2): 

Prices Prices (2) Most consumers responding to surveys appear to be willing to pay price premium up to 20 % However, are statements converted into action in the F&V counter? Likely that price differences with conventional products decrease over time

Distribution channels (1): 

Distribution channels (1) Strong differences between different countries In all countries role of supermarket is increasing Also important specialized (organic) shops Relative high number of farm sales and subscription schemes in F&V Distribution channels

Distribution channels (2): 

Distribution channels (2) High supermarket sales (about 70 %) in UK, Switzerland and Denmark But low (20-30 percent) in Germany, Netherlands, Austria and France NOT one European organic market Distribution channels

Distribution channels (3): 

Distribution channels (3) Other channels: farm sales subscription bags Distribution channels

Organic production (1): 

Organic production and government support Organic production (1) Organic production is increasing Top 3 certified organic area: Italy 1 000 000 ha. Germany 546 000 ha. UK 472 000 ha.

Organic production (2): 

Organic production and government support Organic production (2) Conversion is stimulated through government support in most European countries Some countries have specific targets, e.g. 10 percent organic area in 2010

Organic production (3): 

Organic production and government support Organic production (3) Despite increase in production, demand continues to outgrow supply therefore, imports continue to be needed to meet demand this is where opportunity lies

Trends: 

Trends Organic supermarkets Biodegradable packaging Organic convenience food Internet Sales Public canteens Organic catering Trends

Imports (1): 

Imports (quantities and prices) Imports (1) Imports are faced with certain problems: distrust by many consumers of reliability of certification abroad nearby countries are favoured as supply source main Swiss organic logo prohibits air transport Italian case shows bureaucratic difficulties consumers are more comfortable with domestic organic products

Imports (2): 

Imports (quantities and prices) Imports (2) Exceptions to these problems: UK and Belgium, where consumers distrust is relatively minor.

Opportunities for dev’g countries: 

Opportunities & strategies Opportunities for dev’g countries Demand continues to outgrowth domestic supply Counter-seasonal fresh products Non-temperate zone products

Strategies to follow: 

Opportunities & strategies Strategies to follow National organic legislation Know-how on organic farming Post-harvest handling, infrastructure and logistics Partnership with importer abroad