Slide1: International Competence Centre For Organic Agriculture www.iccoa.org In Technical Cooperation with Research Institute of Organic Agriculture, Switzerland “ Knowledge and learning centre for organic agriculture”


the organic world 2005 : the organic world 2005 Faster speed from narrow road to express highway


Slide3: The World of Organic Agriculture 2005 ********************************************* DR TEJ PARTAP , ICCOA *******************************************


Slide4: Global thinking Organic Agriculture is a holistic production management system which promotes and enhances agro-ecosystem health, including biodiversity, biological cycles and soil biological activity ----- FAO and IFOAM use this definition


Slide5: Worldwide Certified organic farmland 22mh in over 100 countries 2004


Organic farmers world wide :2004: Organic farmers world wide :2004 Organic farms/farmers worldwide = 55.84 million Country wise farms/ farmers Italy 44,000 India 51,000 Germany 16,000 China 12,000 Indonesia 45,000 Japan 45,000 Mexico 120,000 Thailand 29,000 Uganda 34,000 UK 40,000 Peru 20,000 USA 19,000 Austria 19,000 Swiss 64,000 Spain 17,000 Cuba 52,000 Note: Share of organics in global farm economy is over 2%


Global Organic Leaders: Global Organic Leaders - North America, Europe, Japan - Upcoming leading producers China, Brazil and India


Organic Consumers 2005: Organic Consumers 2005 1. Leading countries ( Av US $ 50 pc ) Swiss, Denmark, Sweden, Austria 2. In Asia Japan major consumer Malaysia, Taiwan, Singapore, Korea do import some organic produce


Slide10: Range of Organic International Trading Companies Quality Management Agencies & Research Institutions


Organic Certification and Accreditation: Organic Certification and Accreditation Organic agriculture based on the commitment of farmers and processors to maintain standards Worldwide Organic Certification bodies= 385


 Prevailing types of Organic Standards: Prevailing types of Organic Standards 1. International standards - IFOAM/ FAO/ WHO 2. Supranational standards - EU standards 3. National standards 4. Private standards – EU farmers association


IFOAM: what is organic ? : IFOAM: what is organic ? “ Any system using the methods of Organic Agriculture and being based on the principles of organic agriculture be recognized as “Organic Agriculture” And any farmer practicing any such system should be called, an organic farmer” ----- IFOAM position EB 0412


IFOAM Position-2: IFOAM Position-2 IFOAM supports the adoption of Organic Agriculture regardless of whether the products are marketed as organic or not Because in the opinion of IFOAM Organic Agriculture brings valuable contributions to the farmer and to the society outside the market place


Certification: different scenarios and different solutions : Certification: different scenarios and different solutions different farmers, different circumstances, different markets & evolving different certification solutions


1. QAS: Third Party Certification (TPC) : 1. QAS: Third Party Certification (TPC) IFOAM feels that it is a reliable tool for guaranteeing the organic status of a product, when organic farmers are operating in an anonymous market. Certification is the formal and documented procedure by which a third party assures that the organic standards are followed


IFOAM believes believes that TCP : IFOAM believes believes that TCP ---- should be adapted to local conditions - ---- such as, Small Holder Group Certification Farmers Internal Control System (ICS) i.e. the internal inspectors inspect every farm and certifying body only audits ICS.


2. QAS: Participatory Guarantee System (PGS): 2. QAS: Participatory Guarantee System (PGS) Non certified initiatives/ systems, using their own written standards ( often based on IFOAM standards) The methods include; Relying on affidavits or procedures statements Seals from farmers, farmers organisations Seals from consumers organisations Guarantee provided by the name of a company or shop


3. QAS: Direct farmer-consumer relationships: 3. QAS: Direct farmer-consumer relationships direct contact between the farmer and the consumer- trust maintained without any formal certification mechanism Direct sales at farm gates / farmers markets Box schemes Community supported agriculture (CSA) Teiki ( Japan) whereby supporters cover part of the yearly farm expenses


4. Quality assuarance systemInformal or non certified organic: 4. Quality assuarance system Informal or non certified organic Subsistence farmers for whom organic certification does not have any advantage They basically cater to food security of their own families or their community There are also farmers who reject certification on principal or economic grounds


IFOAM position on Participatory Guarantee Systems: IFOAM position on Participatory Guarantee Systems IFOAM sees a potential in the PGSs and has embarked on a process for capacity building and further development of such systems. It is in their nature that they are localized and diverse, so while some general principles can be agreed upon they are not standardized to the same extent as the third party system.


QAS : Challenge Ahead-a: QAS : Challenge Ahead-a Recognizing that It is not certification that defines organic, and also that the situation for farmers is not equal and not static. i.e. they may first be non certified and then go for certification Contd ....... -- Adopted by IFOAM, EB 0412


QAS : Challenge Ahead-b: QAS : Challenge Ahead-b Contd... …….. therefore, IFOAM sees a need to find solutions, which are flexible enough to allow farmers to move from one system to another, and facilitating movement of products from PGS to TPC system but those solutions are not yet there. -- Adopted by IFOAM, EB 0412


QAS : Challenge Ahead-c: QAS : Challenge Ahead-c IFOAM recognises the fact that Organic farming is increasingly delivering environmental services to society and it is yet to be seen which tools are most appropriate for verification of those services -- Adopted by IFOAM, EB 0412


Worldwide Organic Experiences : Worldwide Organic Experiences 1. proving sustainable and diverse 2. Organic farmers conserving resources 3. Organic farmers producing more 4. Organic products offering better market access & added value opportunities 5. Organic agriculture raising self confidence of farmers


Worldwide organic Experiences-2: Worldwide organic Experiences-2 6. Organics mobilizing new forces and partnership 7. Organic farming a largely private initiative 8. Farmers as leading innovators of organic farming technologies 9. The scientific institutions far behind in organic Research and technologies


Experience with organic consumers: their motives for going organic: Experience with organic consumers: their motives for going organic 1. Health, I am eating healthy food 2. Animal welfare 3. Food as enjoyment, better taste 4. Environmental concerns 5. Trust in organic 6. Specific quality 7. Adopted life style, a choice of some


Organic consumers: attitudes: Organic consumers: attitudes Strong regional loyalties for organic produce projecting regional origins rather than national remain key to successful marketing strategy 2. Highlighting traceability, specific origin/ area/ farm attracts consumers 3. Inverse relationship between organic product values and food miles longer the distance traveled by OPs, lesser the acceptance by org consumers [what does it mean to Indian exports ] 4. Mountains and Organic brands have strong positive relationship


Organic worldwide: Consumer behaviour: Organic worldwide: Consumer behaviour Majority of consumers started buying organic products following a recommendation from family, friends or colleague or after seeing Excellent marketing advertisement


Organic marketing experiences: Organic marketing experiences The myth that good products sell by themselves, is unfortunately, just a myth Without promotion the best product or service will be overlooked in the flood of offers which consumers receive every day


Experience with Organic quality assurance system ( C&A sys) : Experience with Organic quality assurance system ( C&A sys) Multiple C & A systems 1. leading to technical barriers to trade in organic items 2. Requiring multiple certification procedures to be followed for exports 3. Increasing bureaucracy & costs without value addition


Organic C & A Challenges: Organic C & A Challenges Harmonising International Basic Standards for promoting smooth exports making C &A an effective tool for credible and smooth trade & marketing worldwide


Continental perspectives and experiences : Continental perspectives and experiences


Organic Europe: strong moves: Organic Europe: strong moves Strong mainstreaming initiatives Strong producer and consumer base Many public and private initiatives Many associations and agencies in place EU action plan in place EU regulations in place Bio Fach IFOAM place FiBL providing strong research back up CORE ORGANIC ( 2004-007) : European transnational research program on organic agriculture and food. www.organicseeds.com; www.organicprints.org


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Slide39: FiBL, Research Institute of Organic Agriculture, Switzerland


Organic Europe: Experiences: Organic Europe: Experiences Organic production takes place predominantly in less favoured areas with below average soil fertility ----- market & policy analysis OMIaRD 2004


Organic Europe: experiences: Organic Europe: experiences 1. When govts gave subsidies for organic farming, large numbers of farmers got attracted 2. Over supply and less demand situation created 3. OPs had to be sold without a price premium as ordinary products


Organic Europe: experiences: Organic Europe: experiences 4. Over supply at national level leads to scopes for export 5. Organic market are small and thus volatile, can crash with oversupply 6. Danger of market crash due to food scandals greater ( caution to Indian organic players)


Organic Europe: experiences: Organic Europe: experiences 7. Longer the distances OPs travel, more doubts they create about organic origins 8. Greater demand for domestically grown organic food because of certainty of origin 9. Difficult to build a unique image for organic products in foreign countries


Organic Europe: New Agriculture Policy: Organic Europe: New Agriculture Policy Shifting subsidy policy from………… “production basis to single farm basis, linked to the respect of environment, food safety, plant health and animal welfare standards, as well as the requirement to keep farmland in good agriculture and environmental condition” ( cross compliance will become necessary element ) --- a major boost to organic farming


Latino organica experiences: Latino organica experiences Social responsibility in organic agriculture Good Water Project, Brazil, investing in organic agric in the watersheds for harvesting good water Redefining old organic knowledge systems From my family to your family concept promotion Red Agro Ecologica’s ( RAE-NGO) home delivery box scheme CSA- Commune Supported Agriculture system (40C+1F)


Organic : African Perspective: Organic : African Perspective Organic farming in Africa is viewed beyond trade frame and wider recognition of organic farming as a pathway to sustainable livelihoods on marginal lands - ------ GTZ, SDC, STC-UK, BISD-GEF


Organic Africa: Organic Africa Conflict and tension between Mono disciplinary scientific institutions/ agro industry based research priorities and Research priorities of farming communities for sustainable farming and livelihoods


Organic Asia : Organic Asia


Organic Asia: Organic Asia China, Japan, India, Indonesia key players Asia, certified area 736000 h Asia, certified farms 66,000 Asia, certified wild harvest 2.9 mh


Organic Asia : Scene 2005: Organic Asia : Scene 2005 Country Ex/Im Level Gov. Reg Japan Importer mainstreaming y Korea do do y Taiwan do do -- Malaysia do local sector y China exporter local sector y Indonesia export local sector - India export local sector y


Organic Asia: Organic Asia Asian market size : US$ 480m Key players- Japan, China, India, Korea Key exporter– China Key importers; Japan, Korea, Taiwan, Malaysia, Singapore


Organic Asia at Cross Roads: Organic Asia at Cross Roads 1. Organic Agriculture is a development tool for poverty reduction, which promotes self reliant production ----- Asian NGOs 2. Organic agriculture is a future business opportunity for both domestic and export market ------- Business enterprises * Two perceptions yet to integrate


Organic Asia : key features -1: Organic Asia : key features -1 Steady but uneven growth and development for coming few years


Organic Asia Key Features -2: Organic Asia Key Features -2 1. More emphasis on SD , RD & small farmers 2. Less focus on organic market development 3. Extension focus (NGOs) on food safety, health and cultivation cost reduction 4. Non certified production and marketing Insignificant Government involvement


Organic Asia Key Features-3: Organic Asia Key Features-3 Conversion to organic for export Organic agenda only as export option, not as overall agriculture transformation Presence of foreign certifiers Few certified products in domestic market Organic players not organised regionally


ORGANIC ASIA: key feature-4 : ORGANIC ASIA: key feature-4 SMOE small medium organic enterprises *************************** Young educated youth, not exactly from farming background, opting for organic entrepreneurship “ This younger generation may contribute to a significant change in the organic landscape of Asia ”


Organic Asia: key features- 5 : Organic Asia: key features- 5 Bazaar diversity from rural India to Tokyo Adhoc bazaars– local weekly haats Small retail shops Supermarket shelves Multilevel direct selling Internet marketing Exports


Organic Asia consumer confusion : Organic Asia consumer confusion Between ORGANIC label & SAFE FOOD label


Organic Asia: challenges-1: Organic Asia: challenges-1 to improve upon lopsided Governments support, focusing on safe food exports to organic agriculture as key to food safety standards


Organic Asia: challenges-2: Organic Asia: challenges-2 ------ how to sustain expansion in the face of weak competencies for conversion to organic


Organic Asia: threat-1: Organic Asia: threat-1 inadequate human resources to strengthen competencies


Organic Asia: threat--2: Organic Asia: threat--2 Unbalanced attention ----- “major focus on standards and certification development rather than helping develop organic production systems and market supply chains”


Organic Asia:threat-3 : Organic Asia:threat-3 Key barrier to harnessing of organic agriculture potentials --------------------- “Much of organic expertise and experience, innovations, successes and failures, built by farming communities and inaccessible to public domain as published literature” ---------------------------


Organic Asia: barriers to organic consumers: Organic Asia: barriers to organic consumers 1. perceived poor value for money 2. Quality aspects 3. Availability 4. Doubtful organic label- lack of trust and on top of that higher prices, not my cup of tea


some cautionary notesfor organically developing countries: some cautionary notes for organically developing countries


Focus on developing markets for successful organic movement: Focus on developing markets for successful organic movement Organic Farming


Develop right strategies for supporting the driving forces : Develop right strategies for supporting the driving forces x Farmer Market Consumer Developing world organic agriculture- driving forces


developing operational marketing system: developing operational marketing system Marketing mix Distribution Policy Promotion Policy Price Policy Product policy Right initiatives in these areas desired


Developing producer to consumer supply chains: Developing producer to consumer supply chains ORGANIC PRODUCERS ORGANIC CONSUMERS Agent Processor Processor Wholesaler Retailer Wholesaler Retailer Wholesaler Retailer Retailer D i r ec t


Right Organic Marketing Initiatives: Right Organic Marketing Initiatives Consumer Care Uppermost ----------- For most consumers the product price is the central classification criteria for products being interesting or uninteresting to buy


Bring Improvements in Organic  ( C&A) infrastructure: Bring Improvements in Organic ( C&A) infrastructure because C&A are tools to enhance 1. organic Trade 2. organic Market development 3. organic consumer confidence --- it is a crucial issue for India


future prospects: future prospects in the coming years Organic agriculture is going to be the hall mark of Global trade ------ what message for India ?


Slide73: Thank you