BELLRINGER

BELLRINGER

Explain in complete sentences what

are demands of organic farming products.

Previous Homework, due today

DESCRIBE ALL ASPECTS OF

THE FARMING PLANNING

HOMEWORK due tomorrow

WRITE DOWN THE PROGRESS REPORT

ABOUT A PROJECT. SPECIFY WHAT YOU

ALREADY DID AND WHAT YOU PLAN TO

DO THIS WEEK

Organic Agriculture: A Trade and Sustainable Development Opportunity for Developing

Countries

What is organic agriculture (OA)?

Certified organic production: over 30 million hectares, 138+ countries

OA as a national sustainable development opportunity

• Economic benefits

• Food security benefits

• Environmental benefits

• Social & cultural benefits

Economic benefits

Net income = (price x quantity) – total costs

Generally, organic farmers earn more.

Food security benefits

• Higher incomes

• Higher yields

• Diversified production

• Improved nutrition

Environmental Benefits

• Less pollution• Improved soil, incl. increased water

retention and less soil erosion

• Enhanced biodiversity

• No genetic contamination

Environmental Benefits, cont’d

• Mitigated climate change

• Reduced energy consumption

• Landscape services

Social & cultural benefits

• Benefits for smallholders• Women’s empowerment• Builds on traditional knowledge• Reduced rural-urban migration• Improved health & safety• Community revitalization

OA as an export opportunity—rapid global market growth

Growth of the global market for organic food and drink 2002-2006 (Billion US Dollars)

23.1 25.528.7

33.238.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

2002 2003 2004 2005 2006

Bill

ion U

S D

olla

rs

Source Source: The Global Market for Organic Food & Drink, Organic Monitor 2007

OA as an export opportunity

• Global sales growth rates at least double those of conventional food products

• Acute supply shortages since 2005

• Developing country exports rising fast

• Price premiums

Regional Distribution of Organic Food Sales 2006

Region Billion USD %Western Europe 20.0 52North America17.3 45Asia 0.78 2Oceania/Australia 0.34 1

TOTAL 38.6

Regional Distribution of Organic Food Sales 2006

Distribution of Global Revenues by Region 2006

Europe52%

North America45%

Asia/Pacific2%

Oceania1%

Source: Sahota 2008

Regional distribution of certified organic production 2006

Export opportunities include

• Fresh and processed tropical products

• Counter-seasonal fresh produce

• Other products with demand-supply gaps

• Ingredients for food processing industry

Production challenges

• Little or no government support (policies, ag extension, R&D)

• Conversion period

• Knowledge intensive

• Sometimes lack of organic inputs

• Lack of secure land tenure

Export challenges

OA exports must:• Meet SPS requirements in import mkt

(same as for convent’l products)• Meet requirements of OA regulations

& be certified by approved cert. body• Meet additional requirements of

private standards (sometimes)

Export challenges

• Agric. Subsidies in import markets

• Need for market information

• Consumer preferences for local food

• Lack of harmonization, equivalence & mutual recognition

Recommendations to developing country governments

• Assess national organic sector & policies

• OA action plan• Consider supporting OA R&D,

extension services, certification costs, development of domestic market, exports, harmonization

Other factors contributing to success

• Community organization

• Group certification

Recommendations at international level

• Pursue harmonization and equivalence

• Take into acct special conditions in developing countries

• Provide market info

• Support TC/CB in OA