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![Page 1: BELLRINGER](https://reader036.fdocuments.in/reader036/viewer/2022062722/568138b1550346895da07025/html5/thumbnails/1.jpg)
BELLRINGER
Explain in complete sentences what
are demands of organic farming products.
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Previous Homework, due today
DESCRIBE ALL ASPECTS OF
THE FARMING PLANNING
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HOMEWORK due tomorrow
WRITE DOWN THE PROGRESS REPORT
ABOUT A PROJECT. SPECIFY WHAT YOU
ALREADY DID AND WHAT YOU PLAN TO
DO THIS WEEK
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Organic Agriculture: A Trade and Sustainable Development Opportunity for Developing
Countries
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What is organic agriculture (OA)?
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Certified organic production: over 30 million hectares, 138+ countries
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OA as a national sustainable development opportunity
• Economic benefits
• Food security benefits
• Environmental benefits
• Social & cultural benefits
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Economic benefits
Net income = (price x quantity) – total costs
Generally, organic farmers earn more.
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Food security benefits
• Higher incomes
• Higher yields
• Diversified production
• Improved nutrition
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Environmental Benefits
• Less pollution• Improved soil, incl. increased water
retention and less soil erosion
• Enhanced biodiversity
• No genetic contamination
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Environmental Benefits, cont’d
• Mitigated climate change
• Reduced energy consumption
• Landscape services
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Social & cultural benefits
• Benefits for smallholders• Women’s empowerment• Builds on traditional knowledge• Reduced rural-urban migration• Improved health & safety• Community revitalization
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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
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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
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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
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Regional Distribution of Organic Food Sales 2006
Distribution of Global Revenues by Region 2006
Europe52%
North America45%
Asia/Pacific2%
Oceania1%
Source: Sahota 2008
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Regional distribution of certified organic production 2006
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Export opportunities include
• Fresh and processed tropical products
• Counter-seasonal fresh produce
• Other products with demand-supply gaps
• Ingredients for food processing industry
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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
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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)
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Export challenges
• Agric. Subsidies in import markets
• Need for market information
• Consumer preferences for local food
• Lack of harmonization, equivalence & mutual recognition
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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
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Other factors contributing to success
• Community organization
• Group certification
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Recommendations at international level
• Pursue harmonization and equivalence
• Take into acct special conditions in developing countries
• Provide market info
• Support TC/CB in OA