Organic food and beverages

Transcription

Product and Market Development
ORGANIC FOOD AND BEVERAGES:
WORLD SUPPLY
AND MAJOR EUROPEAN MARKETS
ITC
INTERNATIONAL TRADE CENTRE
UNCTAD CNUCED
ORGANIC FOOD AND BEVERAGES: WORLD
SUPPLY AND MAJOR EUROPEAN MARKETS
ITC
INTERNATIONAL TRADE CENTRE
UNCTAD CNUCED
GENEVA
1999
ii
© International Trade Centre UNCTAD/WTO
Abstract for trade information services
1999
SITC 0
ORG
INTERNATIONAL TRADE CENTRE UNCTAD/WTO
Organic food and beverages: world supply and major European markets
Geneva: ITC, 1999. xiv, 271 p.
Market study of organic food and beverages in Denmark, France, Germany,
Netherlands, Sweden, Switzerland, and UK – explains nature of organic agriculture and
identifies products that can be grown organically and sold commercially to build up
profitable export markets for developing countries; provides information on quality
requirements with particular reference to certification and labelling systems and
procedures; gives comments and data on world trade, identifying major producing
countries and import markets; outlines market requirements and characteristics in
countries under review; examines distribution channels and identifies major importers,
retail organizations and selected institutions.
Subject descriptors: food, beverages, agricultural products.
English, French, Spanish
(Free to developing countries)
Palais des Nations, 1211 Geneva 10, Switzerland
The Government of Denmark financed the preparation of this study.
The designations employed and the presentation of material in this publication do not imply the
expression of any opinion whatsoever on the part of the International Trade Centre
UNCTAD/WTO concerning the legal status of any country, territory, city or area or of its
authorities, or concerning the delimitation of its frontiers or boundaries.
Mention of firm names and commercial products does not imply the endorsement of ITC.
The opinions expressed in this study are those of the authors and their contacts in the trade and
do not necessarily reflect the views of ITC.
ITC encourages the reprinting and translation of its publications to achieve wider
dissemination. Short extracts may be freely reproduced, with due acknowledgement of the
source. Permission should be requested for more extensive reproduction or translation. A copy
of the reprinted or translated material should be sent to ITC.
ITC/P12.E/PMD/MDS/99-VII
ISBN 92-9137-115-7
iii
Acknowledgements
Main contributors
Rudy Kortbech-Olesen, Senior Market Development Adviser, ITC, and coordinator and joint principal
author of this study, is responsible for ITC's trade promotion and development activities in processed fruits and
vegetables, and fish and fishery products. He is also the ITC focal point for organic products.
Mr Kortbech-Olesen wrote the introduction and the chapters on world trade and market characteristics,
Denmark and Switzerland.
Carol H. Haest, joint principal author, works for Haest Consultancy for the Organic Industry, Belgium, is a
former treasurer of the International Federation of Organic Agriculture Movements (IFOAM) and is the current
coordinator of the World Organic Supermarketing Club (WOSC). He wrote the chapters on the world supply
situation and Germany, and provided guidance and assistance in the preparation of the study.
Birthe Thode Jacobsen, joint principal author, is a Denmark-based independent consultant specializing in
environmental and agricultural economics. She has worked with the Food and Agriculture Organization of the
United Nations (FAO) for several years. She wrote the chapters on organic farming and the certification of
organic products, and contributed to the chapter on the world supply situation.
Joy Pakenham-Walsh, joint principal author and technical editor, is a Netherlands-based independent
consultant whose clients have included the Centre for the Promotion of Imports from developing countries
(CBI), Rotterdam. She wrote the chapter on the Netherlands and contributed to the chapter on world trade and
market characteristics.
Collaborating authors and consultants
Dorothee Doswald-Kuhlmann, a food engineer in the Swiss private sector, has several years' experience in
the technical and commercial aspects of the food industry. She contributed to the chapter on Switzerland.
Peter Fuchs, of Fox Research AB in Sweden, specializes in the Nordic food sector. His clients have
included the Swedish International Development Cooperation Agency (SIDA), the Swedish Ministry of Industry
and Trade, and the private sector. He wrote the chapter on Sweden.
David Jones, of David Jones & Associates, United Kingdom, has carried out a number of assignments for
ITC, other United Nations organizations, the European Commission and the private sector over the years. He
wrote the chapter on the United Kingdom.
Jean Muller, of Jean Muller Consultants Internationaux, France, has worked for various clients, including
the French Government, ITC and the private sector. He wrote the chapter on France.
iv
A large number of persons from all over the world, including the following, have contributed to the study in
one way or another: Rainer Bächi, IMO, Switzerland; Bernward Geier, IFOAM, Germany; Thomas B. Harding,
AgriSystems International™ United States; Torben Laursen, FDB, Denmark; Otto Schmid, Research Institute of
Organic Agriculture, Switzerland; and Conrad Thimm, consultant, Germany.
Leni Sutcliffe edited the study. Carmelita Endaya and Isabel Droste Montgomery were responsible for
desktop publishing and assisted in copy-editing.
v
Contents
Acknowledgements
Note
iii
xiii
Tables
xi
PART I – BASIC CONCEPTS
1
INTRODUCTION AND GENERAL SUMMARY
3
Background
Product description and scope of the study
Objectives of the study
Summary of market opportunities for developing countries
3
3
3
4
Chapter 1
ORGANIC FARMING
6
Concepts
Standards and certification
Practical obstacles and constraints to conversion in developing countries
6
7
7
Chapter 2
CERTIFICATION
Introduction
What is certification of organic food products?
Certification procedures
Accreditation
Standards: development and application
IFOAM
Demeter International eV
Codex Alimentarius Commission
World Trade Organization
International Organization for Standardization
CEN and CENELEC
Regulations in major markets
European Union
Other markets
9
9
9
10
11
11
11
12
12
12
13
13
14
14
17
vi
Certification in exporting countries
Certification by local bodies
Certification under partnerships between local and international bodies
Certification by a local branch of an international certification body
Certification by international bodies
Some types of certification arrangements
Subcontracting
Grower groups
Setting up a certification programme
The long-term possibility
17
17
18
18
19
19
19
19
20
20
Annexes
I.
Basic concepts
II.
MAFF consolidated version of EC Regulation
21
22
PART II – GLOBAL OVERVIEW: TRADE AND SUPPLY
51
Chapter 3
OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS
53
Introduction
Target markets
Denmark
France
Germany
Netherlands
Sweden
Switzerland
United Kingdom
Other major markets
Market segments
The retail sector
Food processing industry
Catering and institutional sector
Distribution channels
Importers, processors, repackers
Food manufacturers
Retail trade
Fair trade
Market access
Organic certification and food laws
Customs duties
Sources of information
Trade fairs
FAO’s contribution to organic agriculture
53
55
55
55
55
56
57
57
58
58
59
59
59
60
60
60
60
61
61
62
62
63
63
64
65
Chapter 4
WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY
67
Introduction
Africa
Asia
67
68
79
vii
Oceania
Europe
The Americas (excluding NAFTA countries)
NAFTA countries
88
90
112
125
Chapter 5
WORLD SUPPLY BY PRODUCT GROUP
133
Animal products
Meat, dairy products, eggs
Honey
Fish
Vegetable products
Vegetables, roots and tubers
Fruits and nuts
Cocoa, coffee, tea and maté
Cereals
Oil-seeds and oleaginous fruits
Prepared foodstuffs
Vegetable oils and fats
Sugars and sugar confectionery
Preparations of vegetables, nuts and other parts of plants
Alcoholic beverages
Food additives
Other processed food products
Miscellaneous products
Feedstuff
Cotton
Natural pesticides and repellents
Other non-food products
133
133
133
133
133
133
134
134
135
135
136
136
136
136
136
136
137
137
137
137
137
137
PART III – MAJOR MARKETS
139
Chapter 6
DENMARK
141
Introduction
Supply and demand
Production
Market size
Import and market requirements by major product group
Fresh fruits and vegetables
Dried fruits and nuts, seeds and kernels
Processed fruits and vegetables
Grains, flour and bakery products
Coffee, tea and cocoa
Herbs and spices
Sweeteners
Dried legumes/pulses
Oil-seeds and oils, starch, soy
Other food and beverage products
Animal feed
Market characteristics
141
141
141
142
143
143
143
143
144
144
144
144
145
145
145
145
145
viii
Market segments
Consumer habits and product preferences
Sales promotion and advertising
Market access
Customs duties
Food laws and regulations
Agents, importers, repackers, processors
Food and beverage manufacturers
Retail organizations
Catering and institutional trade
Market prospects
145
145
146
146
146
147
147
147
148
148
149
149
Annex – Denmark: selected addresses
151
Chapter 7
FRANCE
154
Introduction
Supply and demand
Domestic production
Retail sales
Consumer patterns
Product and market requirements
Market access
Regulations on organic foods
Certification
Retail structure
Processors/packers and wholesalers
Imports
Future trends
Competition, prices and margins
Prospects and opportunities
Overall prospects
Specific market opportunities
154
154
154
156
157
157
159
160
160
161
161
161
162
163
163
163
164
164
165
Annexes
I.
France: selected addresses
II. Individual import authorizations for organic food products originating
in third countries in 1997
III. Commercial organic products sold in 1997
167
171
173
Chapter 8
GERMANY
176
Organic farming: historical development
Supply and demand
Domestic production
Retail sales
Imports and exports
Consumer categories
176
176
176
178
178
180
180
ix
Consumer confusion about organic products
The generic bio-label
Purchasing organic foods: the criteria used
Fair trade and its relationship with organics
Market segmentation
Market requirements
Importers’ requirements
Competition and prices
Organic certification and food laws and regulations
EU Regulation 2092/91
Organic certification for the German market
Harmonization of EU food laws
Permissible agricultural ingredients of non-organic origin
Traders, importers, packers, processors and wholesalers
Food manufacturers
Specialist organic retail outlets
Natural food shops (Naturkostläden) and organic supermarkets
Farm shops, food boxes and other direct selling methods
Reform shops
Other specialist outlets; catering
Major retail chains
Summary and market prospects
181
181
181
182
184
184
185
185
187
187
187
187
188
188
188
189
190
190
191
191
191
191
193
Annexes
I.
Germany: selected addresses
II. List of approved ingredients of non-organic origin
195
198
Chapter 9
THE NETHERLANDS
199
Supply and demand
Domestic production
Imports
Exports
Retail sales
Consumer behaviour
Market segments and end-users
Market requirements
Processed fruit and vegetables
Dried fruits and edible nuts
Grains, cereals, pulses and seeds
Traders, importers, packers, processors
Wholesalers
Retail outlets
Food manufacturers
Prospects
199
199
200
201
201
203
203
205
206
206
207
207
208
210
211
212
212
212
213
214
215
215
x
Annexes
I.
Netherlands: selected addresses
II. Countries in which SKAL carries out organic inspection services
III. Specifications of Euroherb Bio BV
IV. Tradin: certified organic products traded
216
218
219
221
Chapter 10
SWEDEN
222
Introduction
Supply and demand
Domestic production
Exports
Imports
Market requirements by major product group
Cereal and bakery products
Coffee and tea
Vegetable oils, vinegar, and condiments, spices and herbs
Sugar and syrup
Beverages
Other product groups
Market segments
Market trends
Sales promotion and marketing
Market access
Food laws
Swedish control organizations
Integrated retail and wholesale groups
Market prospects
222
222
222
224
224
225
225
226
227
228
228
228
228
229
230
230
230
230
231
231
231
232
232
235
Annex – Sweden: selected addresses
236
Chapter 11
SWITZERLAND
240
Supply and demand
Production
Market size
General
Dried fruits and nuts
Cereals, flour and bakery products
Herbs and spices
Sugar and sweeteners
Oil products
Dairy products
240
240
240
241
241
241
241
241
242
242
242
242
242
242
xi
Other food products
Consumer habits
Promotion and advertising
Market access
Customs duties and restrictions
Importers and agents
Food industry
Retail trade
Catering
Market prospects
242
242
242
243
243
243
243
244
244
244
244
246
246
Annex – Switzerland: selected addresses
248
Chapter 12
UNITED KINGDOM
251
Introduction
Supply and demand
Retail sales
Imports
Domestic production
Market characteristics and requirements
Importers, traders and wholesalers
The retail sector
Processors and food manufacturers
Market prospects
251
251
251
252
252
253
253
258
259
259
259
262
262
Annexes
I.
United Kingdom: selected addresses
II. Source countries of a sample of organic products seen at one supermarket
outlet in London, March 1998
III. List of organic products sold by one supermarket (Waitrose), March 1998
SELECTED BIBLIOGRAPHY
264
266
267
269
Tables
3.1
3.2
4.1
7.1
7.2
8.1
8.2
8.3
World markets for organic food and beverages, 1997
European markets: percentage shares of retailers in organic food sales, 1997
Europe (EU and EFTA): organic agriculture in figures
France: organic livestock and livestock products, 1995 and 1996
France: imports of organic products from non-EU countries, 1993-1997
Germany: number of farms and areas under organic farming, 1 January 1998
Germany: AGÖL member organizations, 1 January 1999
Germany: sales of organic foods, by product group
53
61
91
155
156
177
177
179
xii
8.4
8.5
10.1
10.2
Germany: turnover of the organic trade, by main distribution channel, 1997
Germany: major food retailers and their involvement in organic food sales
Sweden: consumption of organic foods, by volume and by value, 1997
Sweden: market for processed fruits and vegetables, by quantity and by value, 1997
184
192
223
226
xiii
Note
The geographical groupings of countries used in this study follow the practice of the United Nations
Statistics Division. The groupings are used for the sake of convenience and are not intended to express a
judgement about the stage reached by a particular country or area in the development process.
Unless otherwise specified, all references to dollars ($) are to United States dollars, and all references to
tons are to metric tons. The term ‘billion’ denotes 1 thousand million.
The following abbreviations and acronyms are used:
AGÖL
Arbeitsgemeinschaft Ökologischer Landbau (Federation of Organic Agricultural Associations,
Germany)
BCS
BCS Öko-Garantie GmbH (Germany)
CBI
Centre for the Promotion of Imports from developing countries (Netherlands)
CEN
European Committee for Standardization
CENELEC
European Committee for Electrotechnical Standardization
CMA
Marketing Agency for Agrarian Products (Germany)
DIPO
Danish Import Promotion Office for Products from Developing Countries
EC
European Communities/European Commission
EEC
European Economic Community
EFTA
European Free Trade Association
EN
European Standard
EU
European Union
FAO
Food and Agriculture Organization of the United Nations
FLO
Fair Trade Labelling Organization International
FVO
Farm Verified Organic (United States)
GATT
General Agreement on Tariffs and Trade
GMO(s)
Genetically modified organism(s)
GSP
Generalized System of Preferences
xiv
GTZ
German Agency for Technical Cooperation
HS
Harmonized Commodity Description and Coding System
IAF
International Accreditation Forum
ICM
Integrated crop management
IEC
International Electrotechnical Commission
IFOAM
International Federation of Organic Agriculture Movements
IMO
Institut für Marktökologie (Germany and Switzerland)
INAC
International Nutrition and Agriculture Certification (Germany)
IOAS
International Organic Accreditation Service
ISO
International Organization for Standardization
ITC
International Trade Centre UNCTAD/WTO
KRAV
Swedish Organic Agriculture Association
LDC(s)
Least developed country(ies)
NAFTA
North American Free Trade Agreement
NASAA
National Association for Sustainable Agriculture Australia
NGO(s)
Non-governmental organization(s)
OCIA
Organic Crop Improvement Association (United States)
OF&G
Organic Farmers & Growers Ltd (United Kingdom)
OGBA
Organic Growers and Buyers Association (United States)
OIA
Organización Internacional Agropecuaria (Argentina)
OSEC
Office suisse d’expansion commerciale (Swiss Office for Trade Promotion)
QIA
Quality Assurance International (United States)
RELACC
Red Latinoamericana de Comercialización Comunitaria
SITC
Standard International Trade Classification
UNCED
United Nations Conference on Environment and Development
UNCTAD
United Nations Conference on Trade and Development
USDA
United States Department of Agriculture
VAT
Value-added tax
WHO
World Health Organization
WTO
Part I
BASIC CONCEPTS
INTRODUCTION AND GENERAL SUMMARY
Background
In recent years, global awareness of health and
environmental issues has been growing, and
sustainability has become the key word in
discussions on economic development, particularly
in rela tion to devel oping coun tries. The ever- growing
number of health and environmentally concerned
consumers, mainly in the industrialized countries of
Western Europe, North America, Japan and
Australia, is at the root of this development. The
inter na tional com mu nity is becoming more and more
con scious of these issues, and gov ern ment poli cies in
industrialized as well as developing countries
increasingly encourage organic and other forms of
sustainableagriculture.
This study endeavours to fill an information gap
among decision makers at government and
non-government levels by providing comprehensive
information on the markets for organic products, the
supply situa tion world wide and cer ti fi ca tion of organic
origin. As this study emphasizes again and again,
certification is nec es sary for suc cess in world trade.
Product description and scope of the study
This study deals with organic food and bever ages, as
defined in chapter 1. Organic prod ucts are currently
not classified separately under the Standard
International Trade Classification (SITC) and the
Harmonized Commodity Description and Coding
System (HS), both of which group organic products
together with conventional products. For example,
organic fruits and vege ta bles are covered by the SITC
and HS head ings for fruits and vege ta bles.
In prin ciple, the study covers the whole range of food
and beverage products. However, some items like
meat and dairy prod ucts are taken up very briefly, and
others like fish and fishery products are referred to
only occa sion ally. The iden ti fi ca tion of the prin cipal
product groups being traded in organic form, in
particular those that can be exported by developing
coun tries, is a major pur pose of this study.
Objectives of the study
The ultimate purpose of this study is to help
developing countries in their efforts to improve the
utilization of their agricultural resources and to
increase and diver sify their exports. The infor ma tion
provided is therefore intended to enable these
coun tries, and their farmers and other enter prises, to
modify their pro duc tion and mar keting activi ties so
as to be better able to exploit existing and potential
export oppor tu ni ties for organic prod ucts. The study
should also help them improve their bargaining
position vis-à-vis importers and other commercial
partners.
The spe cific aims of the study are to:
q
Explain what organic agriculture is and which
products can be considered organic products in a
commercial sense (i.e. certified organic);
4
CHAPTER 1 – INTRODUCTION AND GENERAL SUMMARY
q
Provide an understanding of what certification
is, why it is necessary and what it entails; explain
what needs to be done in developing countries;
programmes, specifically in the formulation of
production and export policies;
q
q
Present an overview of world trade in organic
products, and identify major producing/exporting
countries and import markets, describing their main
characteristics;
q
Identify products that are or can be grown
organically and sold commercially with a view to
building up profitable export markets;
Individual enterprises – whether farmers,
processors, exporters or importers – involved in the
organic trade;
q
Individuals and organizations preparing or
evaluating investment proposals for organic farming,
processing facilities, joint ventures and similar
projects;
q
q
Provide market information on quality
requirements, with special reference to required
certification/labelling systems and procedures;
International organizations (such as the Food
and Agri cul ture Organi za tion of the United Nations –
FAO), development banks and non-governmental
organizations (NGOs) involved in organic
produc tion and trade;
q
Provide a better understanding of the structure,
compe ti tion and pricing in the markets surveyed;
q
Examine distribution channels and identify
major agents and importers, industrial end-users,
retail organizations, and other organizations and
associations.
This study is expected to be of assistance to the
following target audiences:
q
Government agencies and ministries concerned
with organic agriculture and trade development
q
Trade associations in exporting and importing
countries, export promotion bodies, chambers of
commerce, and member organizations and associates
of the International Federation of Organic
Agriculture Movements (IFOAM).
The study has been designed as a practical tool for
use in training courses, seminars, workshops,
marketing tours, etc., whether organized by the
International Trade Centre UNCTAD/WTO (ITC),
other organizations or by producers/exporters
themselves.
Summary of market opportunities for developing countries
With retail sales of organic food and beverages
reaching an estimated $11 billion in the seven
markets covered by this survey (Denmark, France,
Germany, the Netherlands, Sweden, Switzerland,
Sweden, the United Kingdom) and in Austria, Italy,
the United States of America and Japan in 1997, trade
in organic foodstuff has become an important global
agribusiness. Preliminary estimates for 1998 indicate
retail sales in these markets of $13 billion to $13.5
billion. The organic trade is of particular interest in a
development context because of the spectacular
growth that has taken place in recent years, with
growth rates of between 5% and 40% expected over
the medium term, depending on the market in
question. It should be noted that the continuous
growth in the organic sector is all the more
remarkable since overall food sales is experiencing
either slow growth or stagnation.
There are good reasons to conclude that the market
for organic food and beverages is growing rapidly in
most countries in Western Europe, North America,
Japan and Australia. Expansion is also taking place in
a few developing countries though at a slower pace.
The currently small share of organic products in the
food and beverage trade in all these markets indicates
a large long-term potential. Expectations of growth
are underpinned not only by strong and increasing
consumer awareness of health and environmental
issues, but also by the more goal-oriented and
aggressive marketing and promotion being
undertaken by the major retail groups. Product
development and innovations in packaging by food
processors and manufacturers, as well as supportive
government policy in many countries, will also push
up world demand.
CHAPTER 1 – INTRODUCTION AND GENERAL SUMMARY
It seems clear – at least in the short to medium term –
that an insuf fi cient supply of organic prod ucts will be
the main problem rather than lack of demand.
Though domestic production is growing rapidly in
many markets, demand appears to be expanding even
faster. This opens up opportunities for exporters in
devel oping coun tries, not only for those already in the
business but also for others who would like to start
production. A review of the world supply situation
shows that more than 130 coun tries produce certi fied
organic food and bever ages in commer cial quan ti ties,
including at least 65 developing countries of which
about 15 are least devel oped (LDCs). Produc tion also
exists in most transition economies. It should be
noted that interest in promoting organic agri cul ture in
devel oping as well as devel oped coun tries is rising.
Although the overall picture looks highly posi tive, a
number of potential risk factors should be borne in
mind when evaluating future developments in the
organic food business. For example, occasional
oversupply of a given product may not only have
imme diate but also more long- term nega tive effects.
Furthermore, other forms of environmentally
friendly and sustainable agriculture are likely to
result in increased compe ti tion in the future. Reduced
price premiums for organic produce and insuf fi cient
profitability among farmers and other operators are
also factors to reckon with. Unfa vour able press (e.g.
fraud) and scare stories, whether justified or not,
cannot be excluded either.
Developing countries produce a wide range of
organic products and many are doing relatively well.
However, most of them suffer from a number of
constraints, such as the lack of technical know-how
(e.g. on production methods), lack of storage and
processing facilities, poor logistics, inadequate
5
market information (for example on which products
to grow, which markets and distribution channels to
choose, the competition, market access) and
insufficient financing. Certification is a major
problem that they share with producers in developed
countries. Importers, food manufacturers, retail
organizations and consumers need a guarantee of
organic origin. In other words, the organic trade faces
a number of challenges in the future.
On bal ance, how ever, there is no doubt that the world
mar kets for organic food and bev er ages will con tinue to
offer developing countries profitable export
opportunities. All of the major markets under review
offer good prospects for suppliers of organic products
that are not produced domestically: examples are
coffee, tea, cocoa, spices, tropical fruits and vege ta bles
and citrus fruits. However, there are also very good
pros pects for sev eral prod ucts that are pro duced in the
main mar kets them selves. Such oppor tu ni ties exist not
only for off-season produce (such as fruits and
vegetables), but also for many other products like
in-season fruits (e.g. apple and pears) and vegetables,
cane sugar, grains, cereals, pulses and seeds, for the
simple reason that the rap idly growing demand in most
mar kets cannot be met by local sup plies, at least in the
short and medium term.
To succeed in building up an export trade in organic
prod ucts, exporters will find that careful selec tion of
target markets and distribution channels is of the
utmost impor tance. A strong and reli able rela tion ship
with an importer/distributor in the target markets is an
absolute must in establishing a profitable business.
Finally, supportive government policies as well as
assistance from the international community are
other neces sary elements.
Chapter 1
ORGANIC FARMING
Concepts
The con cept of organic farming is based on a holistic
view point, meaning that nature is per ceived to be more
than just the sepa rate indi vidual ele ments into which it
may be split. Its principles are found in ecology, a
sci ence con cerned with the inter re la tion ship of living
organ isms and their envi ron ments. In prac tical terms,
this means that organic farmers obtain their inspi ra tion
and learn from natural eco-systems. Farmers try to
imitate at farm level basic characteristics of relevant
eco-systems, for instance by working towards the
maximal use and recycling of on-farm resources
(fodder, manure, organic waste, etc.).
Organic farming differs from industrialized
agri cul ture in that in the latter, bio logical sys tems are
to a larger extent replaced by tech nical sys tems. For
instance, the diversified rotation of crops, with
its biological significance, is often supplanted
by monocultural practices giving rise to the need
to use pesticides and artificial fertilizers, and
organic manure is often exchanged for artificial
fertilizers.
The con cept of organic farming also covers eco nomic
and social aspects of agri cul tural pro duc tion, local as
well as global.
In organic farming, the aim is to support and
strengthen biological processes without recourse to
technical remedies such as synthetic fertilizers and
pes ti cides and the geneti c modi fi ca tion of organ isms;
hence, the approach to the con trol of weeds, pests and
dis eases is pri marily pre ven tive.
Organic farming is based on the enhance ment of the
structure and the fertility of the soil, a balanced
choice of crops, and the implementation of
diversified crop rotation systems. The number of
ani mals kept on the farm and the avail able land area
are cor re lated so that farm units can cover their need
for feed and soil nutri ents from within the system.
Among its key char ac ter is tics are the use of organic
mate rials to main tain organic matter and nutri ents in
the soil (including green manure), nitrogen-fixing
plants, pest- resistant plant varie ties, soil man age ment
techniques such as mulching and the use of fallow
periods, various cropping systems (including intercropping) and agro for estry. (Agro for estry con sists of
land-use systems in which woody perennials are
grown in association with crops and/or livestock.)
Organic farming gives due consideration to animal
welfare and the use of manual, mechanical and
thermic weeding.
Organic farming merges traditional and respectful
views on nature with modern scientific insights. It
encompasses several farming methods and
approaches. For instance, research carried out by
Müller and Rusch in the first half of this cen tury has
been adapted and further developed by one of
Germany's largest organic farmers’ associations
(Bioland; see chapter 8). The Soil Asso cia tion in the
United Kingdom (see chapter 12) has its roots in the
work of Albert Howard and Eve Balfour which
focuses on soil fer tility and health.
Biodynamic agriculture (a contracted translation of
the German biologisch-dynamische Landwirtschaft)
is yet another approach; it is based on anthro po sophy
and the ideas for mu lated in the 1920s by the Aus trian
Rudolf Steiner. The maintenance and furtherance of
life- processes in the soil, and in nature in gen eral, as
well as the harnessing of cosmic energy and other
CHAPTER 1 – ORGANIC FARMING
influ ences from the sun, the stars, the moon and other
planets, are basic prin ci ples. Bio dy namic agri cul ture
advo cates the com bi na tion of animal hus bandry and
crop pro duc tion (mixed farming) and it uses com post
and biodynamic preparations (naturally occurring
plant, animal and mineral materials which are
com bined in spe cific recipes) in order to vitalize the
soil and to enable it to transmit this vitality to plants
and subsequently to animals and human beings.
Sowing, cultivation and harvesting are timed
according to cosmic rhythms.
There are other but not organic approaches which
rep re sent alter na tives to high- external- input pro duction systems, and which are more environmentally
7
friendly but not organic. An example is lowexternal-input sustainable agriculture (LEISA),
which is based on the increased use of local
resources. A key factor distinguishing LEISA from
organic farming is the use of chemical inputs, which
is reduced but not elimi nated.
Integrated farming systems combine the use of
chemical and biological controls. Among the
techniques utilized are integrated pest management
(IPM), integrated nutrient management (INM) and
integrated weed management (IWM). Integrated
farming sys tems are seen by some as a com pro mise
between organic farming and inten sive con ven tional
agriculture.
Standards and certification
The subjects of standards and certification and the
forms they have taken worldwide are discussed in
greater detail in chapter 2. What is impor tant to point
out here is that one of the most significant factors
distinguishing organic farming from other concepts
of sustainable agriculture is the existence of
production standards and certification procedures.
Standards have been developed by private
asso cia tions, enti tling mem bers to use the respec tive
associations’ organic brands and guarantee labels
when mar keting their prod ucts. At least 100 regional
or national standards have been developed
world wide. Sev eral coun tries are for mu lating or have
adopted laws and regu la tions on organic pro duc tion
and processing and on certification require ments to
con trol the use of labels indi cating organic origin.
The cer ti fi ca tion of organic pro duc tion methods is an
increasingly important aspect of the international
trade in organic products. Most regulations require
prod ucts that are labelled organic to be cer ti fied by an
inde pendent body, thereby pro viding a guar antee that
the goods have indeed been produced according to
organic pro duc tion stan dards.
Practical obstacles and constraints to conversion
in developing countries
As organic agriculture seems fairly similar to many
tra di tional farming sys tems in devel oping coun tries,
conversion from these traditional systems and
certification may appear to be an obvious thing to
aspire to. However, certification is costly and for
sub sis tence farmers with small mar ket able sur pluses,
it may not be economically feasible. Additionally,
many smallholder production systems cause soil
deg ra da tion and are not envi ron men tally sus tain able.
The adop tion of organic farming tech niques may also
be constrained by the lack of know-how and the
absence of training and extension facilities.
Fur ther more, exper tise on local farming con di tions is
a basic require ment and out siders, while they may be
conversant with the principles of organic farming,
may not have this expertise. Research into these
conditions is essential to organic farming: for
instance, a cer tain crop ping system may be pref er able
in one area, whereas in another area the threat of a
cer tain pest would dic tate a dif ferent approach.
Uncer tain ties about own er ship and access to land are
real obsta cles to con ver sion. Farmers have to be sure
that they will be able to benefit from investing, for
example, in improved soil fer tility in order to want to
make such an invest ment. Dif fi cult access to credit is
another factor often impeding initiatives and the
imple men ta tion of con ver sion proj ects.
8
Some farmers do have access to finan cial resources
and are more likely to con sider con ver sion. How ever,
they also have to con tend with mar keting con straints.
The market for organic prod ucts is still com para tively
small and is mainly concentrated in the European
Union, the United States and Japan, making access to
both market infor ma tion and the mar kets them selves
difficult. The length of the conversion period,
normally two to three years, is also a barrier, as
prod ucts usu ally cannot be sold as organic during this
period.
These are some of the direct impediments to
conversion by smallholders. However, the issue is
wider and more complex. Take the question of the
external costs of high-input conventional farming.
CHAPTER 1 – ORGANIC FARMING
These costs, which take such forms as for instance the
pol lu tion of drinking water and reduced bio- diversity,
are not reflected in the market prices of the prod ucts
of con ven tional farming; if they were, these prod ucts
would perhaps be less price competitive.
Furthermore, some enterprises have an interest in
promoting the inputs on which these conventional
sys tems are based, and stimu late activi ties pro moting
their use, including tech no logical research.
Indi vidual small holders are usu ally advised to join or
to form coop era tives or other farm ers' groups in order
to over come some of the prob lems described above,
create the required critical mass, build the nec es sary
infrastructure (primary processing and packaging
facili ties), cut costs and improve market access.
Chapter 2
CERTIFICATION
Introduction
A tomato has a price in the market place. A tomato
claimed to be pro duced in accor dance with organic
farming prin ci ples, i.e. an organic tomato, often has a
higher price in the same market place. A common
way of informing con sumers that cer tain prod ucts are
pro duced according to organic pro duc tion prin ci ples,
thereby jus ti fying a price pre mium, is the indi ca tion
on product labels that the prod ucts are organic.
During the last two decades there has been an
extraor di nary growth in the use of labels refer ring to
the organic origin of products, as well as labels
suggesting organic production methods using terms
like ‘green’ and ‘eco-friendly’. Until regulations on
the label ling of organic prod ucts were imple mented,
it was difficult for consumers to know what was
meant by the various terms and which production
methods had actu ally been used. Simi larly, pro ducers
were in for unfair competition in the sense that
prod ucts which were organic only to a cer tain degree
could be claimed to be organic or environment
friendly in various ways and therefore entitled to a
price pre mium.
Certification is one way of ensuring that products
claimed to be organic are actually produced
according to organic farming principles. It is thus a
way of pro tecting con sumers, pro ducers and traders
against the use of mis leading or decep tive labels. It is
also a marketing instrument enabling producers to
access markets for organic products and obtain
premium prices. Finally, it creates transparency, as
infor ma tion on cer ti fied pro ducing organi za tions and
their prod ucts is nor mally made public.
What is certification of organic food products?
Certification is a procedure for verifying that a
product con forms to cer tain stan dards. In the case of
organic products, certification is primarily an
acknow ledge ment that these prod ucts have been produced according to organic production standards
(annex I to this chapter defines the basic prin ci ples of
this cer ti fi ca tion). These stan dards may be the standards of pri vate asso cia tions or com pa nies, or of certi fi ca tion bodies, or of the State.
Cer ti fi ca tion bodies may use dif ferent pri vate or official stan dards against which to carry out their cer ti fication activities. For instance, organizations of
organic pro ducers may estab lish their own stan dards,
and set up their own cer ti fi ca tion pro grammes, rules
and pro ce dures, and man age ment regu la tions for certifying the conformity of their member farmers and
their prod ucts with these stan dards. Some cer ti fi cation bodies do not have their own stan dards, and use
official standards. Thus a certification programme
may relate to official standards or to private stan dards; however, wherever official regulations are in
place, private certification programmes must be
designed so that the certified products comply with
both the standards of the private organization concerned and with offi cial regu la tions.
Once cer ti fied, organic prod ucts are mar keted car rying
a certification mark indicating that the products are
certified organic. The certification mark attests to
10
con for mity with cer tain stan dards and is in itself not a
trade mark. However, in most countries the
cer ti fi ca tion mark is also reg is tered as a trade mark.
A dis tinc tion can be made between pri vate marks (introduced by com pa nies or organic asso cia tions which have
adopted certification programmes), marks issued by
certification bodies, and national marks designated by
governments. Most certification programmes use their
own logos; in this way, cer ti fi ca tion also serves to dis tinguish the products of their members or contracted
opera tions from those of their com peti tors.
For producers to enter a specific market for certified
organic products, their products must be produced
and certified according to the standards applicable in
that market. If the market has State regulations, these
regulations must be complied with. In some cases, it
may be an advantage to be certified by a certification
body with a certification mark that is well known in
that market.
For a product to be cer ti fied organic, all opera tors in
the product chain, including farmers, processors,
manufacturers, exporters, importers, wholesalers and
retailers must be cer ti fied as acting in con for mity with
the standards and regulations of the certification
programme concerned. Sometimes different
certification bodies certify different operators in the
product chain.
Certification may be linked to the production of certain
products, or it may relate to the operation as such, for
instance the fields of a farm. Such differences depend
on the certification scheme applied.
Once certified, it is the operator who labels the product
with the certification mark and it is the producer who is
continuously responsible to the certification body
and/or the owner of the mark for its correct use.
It should be noted that cer ti fi ca tion of organic prod ucts
is basi cally the cer ti fi ca tion of a pro duc tion system, as
opposed to the certification of a product. It is more
complex than product certification because it cannot
be based solely on meas ur able product char ac ter is tics.
Certification procedures
Broadly, the certification process may be split into
two parts: inspection (or control) to verify that
production and handling are carried out in
accordance with the standards against which
certification is to be done; and certification to
CHAPTER 2 – CERTIFICATION
confirm that production and handling conforms to
standards. A certification body may operate its own
inspection activities, or inspection may be carried out
on its behalf by external inspection bodies. The
decision as to whether adequate confidence is
provided that production and handling are in
conformity with the standards rests with the
certification committee. If a certification body has
its own standards against which certification is
carried out, it may also have a standards setting
committee.
Certification procedures for the certification of
organic products should make it possible to track and
control the flow of products from primary production
at farm level through each stage of manufacturing
right to the final consumer product.
Certification is based on a systematic procedure
consisting of several steps. The operator, i.e. the
farmer, the processor, the trader or whoever is
handling the product and needs certification, and a
certification body sign a contract, and then the
certification body registers the operator. Farmers are
required to provide basic information on the farm,
such as size of fields, crops, crop rotation, etc.
Processors and packers must submit information on
recipes, capacities, range of products, operations, etc.
The next step is inspection. It may be carried out by
an inspection body on behalf of the certification body
or by the certification body itself. On-site checks are
carried out by inspectors who follow a verification
programme. At the level of farms or operators,
inspections cover fields and facilities, production
practices, inputs and materials used, and records. The
findings are presented in a report and submitted for
evaluation, normally by a special certification
committee representing various areas of competence
and different sectors. The third step is certification. If
the certification body is confident that the operation is
in conformity with the standards against which the
inspection and certification are carried out, a
certificate will be forwarded to the operator, stating
such conformity. The operator will be licensed to use
the certificate or mark of certification on its products.
The inspection of a certification programme covers
agricultural production, processing, trade, labelling
and certificates. The key elements of inspection are
verification and evaluation.
Certification is not a one-time procedure: it is carried
out continuously on the basis of ongoing monitoring
and inspection. The cost of certification varies. At the
farm level it is generally a fixed amount, calculated
from the number of days required for the inspection.
For processors and traders there may be a fixed price,
as well as a percentage of the commercial value
ranging between 0.3% and 1%.
11
the requirements, it may be awarded accreditation
status, meaning that an authoritative body gives
formal recognition that the certification body is
competent to carry out certification activities. An
accreditation contract is signed, which sets out the
terms and con di tions for the use of the accredi ta tion
status.
Accreditation
The process of cer ti fi ca tion should meet basic cri teria
of trans par ency and inde pend ence (freedom from the
influ ence of vested inter ests). Cer ti fi ca tion bodies may
be evaluated according to their ability to meet such
criteria, and this requires an analysis of their
cer ti fi ca tion sys tems, including an assess ment of their
personnel, standards and their inspection and
certification procedures. If a certification body meets
There is no international regulation on who may or may
not carry out accreditation. However, several countries
have designated official bodies for the accreditation of
certification and inspection bodies. The International
Accreditation Forum (IAF) groups together 18 of the
world’s 30 accreditation bodies; one of its objectives is
to establish the equivalence of its members’
accreditation programmes on the basis of a multilateral,
mutual recognition agreement among them.
Standards: development and application
Stan dards set the frame for organic farming and processing prac tices and the use of marks and descrip tions
in ref er ence to organic pro duc tion methods. Pro duction stan dards and the accom pa nying brands were in
the past largely devel oped by organi za tions in the private sector, which also author ized com plying farmer
mem bers to use their brands.
Over the last decade, standards have increasingly
been embodied in public regulations, including laws.
These regulations define the conditions for references
to organic production methods on product labels.
Such standards may set out the principles for organic
farming, processing and trade, list prohibited or
allowed substances or conduct, and prescribe control
and certification measures.
There is at present no regulation on organic products
applicable worldwide. Different associations,
industries or governments may have varying
perceptions of how organic products should be
defined and certified. Thus, individual brands naming
products organic may have disparate standards for
organic production and certification behind them.
Moreover, diversities in, for instance, climatic,
ecological or social conditions, may result in
differing production standards. However, the
development of standards for organic production and
trade in the FAO/WHO Codex Alimentarius
Commission is an important step towards a common
understanding of what the term implies.
The inter na tional trade in organic prod ucts can therefore be quite complex. Many developing countries,
mostly exporters, could benefit from increased har monization or an international procedure for estab lishing the equivalence of organic standards.
However, standards do exist and are being con tinuously developed at the international level, par ticularly in two forums: IFOAM and the Codex
AlimentariusCommission.
IFOAM
The Inter na tional Fed era tion of Organic Agri cul ture
Move ments (IFOAM) was estab lished in 1972 as an
umbrella organization for national organic agri culture asso cia tions. Mem bers also include cer ti fi ca tion
bodies, traders and processors. IFOAM has estab lished inter na tional Basic Stan dards of Organic Agriculture and Food Processing, which provide a
frame work for various cer ti fi ca tion pro grammes. The
IFOAM standards are updated regularly by the
IFOAM Stan dards Com mittee and are approved by
the IFOAM General Assembly every second year.
IFOAM has consultative status with the European
Union (EU) and the Codex Alimentarius Com mission, and a formal liaison status with FAO.
12
IFOAM has established an international Accredi tation Programme, which is operated by the Inter national Organic Accredi ta tion Service (IOAS). IOAS
is an independent non-profit organization with
IFOAM as sole member. IFOAM accreditation is
based on com pli ance with its Basic Stan dards and its
Accreditation Criteria for Programmes Certifying
Organic Agri cul ture and Proc essing. As of mid 1999,
13 cer ti fi ca tion bodies were accred ited by IOAS and
6 were in the process of being accredited. Further
infor ma tion on IFOAM is pro vided at its Web page
(http://www.ecoweb.dk/ifoam).
Phytosanitary Measures of the World Trade
Organization (WTO).
Demeter International eV
The Committee on Food Labelling met in May 1998
and has submitted standards for vegetable production
for the consideration of the Codex Alimentarius
Commission in 1999. At its twenty-third session,
held at the FAO headquarters in Rome from 28 June
to 3 July 1999, the Commission adopted Guidelines
on the Production, Processing, Labelling and
Marketing of Organically Produced Foods. The
Committee on Food Labelling is also developing
standards for livestock products, which will be
considered by the Commission at a later stage.
Demeter International eV is a worldwide network of
19 international certification bodies in Africa,
Australia, Europe and North America. It claims to
have more than 3,500 partners in 35 countries,
covering 1 million hectares of biodynamically
cultivated land. Its internationally recognized mark is
registered in over 50 countries.
Organic farmers following biodynamic production
principles (see chapter 1 for a brief description of
these principles) may be certified against Demeter
standards and thereby authorized to label their
products with the Demeter mark. Standards are
agreed internationally, although there may be some
national differences of interpretation. The
biodynamic standards are formulated in such a way
as to comply with international regulations on
organic farming. Demeter International also runs an
accreditation programme and assists in the
establishment of certification bodies.
Further information on Demeter International is
pro vided at its Web site (http://www.demeter.net).
Codex Alimentarius Commission
In 1962, the Joint FAO/WHO Food Standards
Programme was created in order to protect
consumers from health hazards and deception while
at the same time facilitating international trade in
food products. The Programme operates through an
intergovernmental body referred to as the Codex
Alimentarius Commission. The work of the
Commission aims primarily at the prevention of the
use of international standards as technical barriers to
the trade in food products. The work of the
Commission has been specifically recognized under
the Agreement on the Application of Sanitary and
Two Codex committees are currently developing
standards that are relevant to the international trade in
organic products. The first is the Committee on Food
Labelling which is establishing guidelines for the
production, processing, labelling and marketing of
organically produced foods. The Committee on Food
Import and Export Inspection and Certification
Systems is developing guidelines for food import and
export inspection and certification systems.
While the development of Codex guidelines is not a
way of establishing equivalency, WTO may refer to
these guidelines in its dispute settlement procedures.
The significance of the guidelines will depend on the
extent to which WTO uses them in this way, as well
as on the extent to which governments use them when
formulating regulations.
The formulation of the Codex guidelines is largely
based on European Union regulations on organic
food products and IFOAM standards. The guidelines
should be of assistance to countries developing
regulations on organic food products.
WTO administers global trade rules, including rules
on technical barriers to trade and on the application of
sanitary and phytosanitary measures. It also offers a
mechanism for conciliation and dispute settlement. A
country exporting organic food products, which is
refused access to an importing country's market on
grounds that the organic standards applied are not
equivalent to the importing country's standards, may
refer the issue to WTO if it considers the refusal to be
a violation of global trade rules, i.e. based on a
technical barrier to trade. WTO may rule against the
importing country if the exporting country is found to
comply with international standards for organic food
products, such as those being formulated by the
Codex Alimentarius Commission, even if the
exporting country does not comply with the more
stringent requirements of the importing country.
It should be noted that, in gen eral, WTO is opposed to
trade restric tions based on pro duc tion and proc essing
methods (referred to as PPMs) and some experts are
claiming that eco- labelling based on such cri teria are
against WTO rules, in particular those of the
Agreement on Technical Barriers to Trade. In their
view this would apply even to mandatory regulations
like Council Regulation (EEC) No. 2092/91 and its
amendments.
International Organization for
Standardization (ISO)
The International Organization for Standardization
(ISO), established in 1947, is a worldwide federation
of national standards bodies from some 130
countries, one from each country.
ISO promotes the development of standardization
with a view to facili tating the inter na tional exchange of
goods and services, as well as cooperation in the
intellectual, scientific, technological and economic
spheres. ISO's work results in inter na tional agree ments
which are pub lished as Inter na tional Stan dards.
13
cer ti fi ca tion body, including those cer ti fying organic
food prod ucts.
The IFOAM Accredi ta tion Cri teria for Pro grammes
Certifying Organic Agriculture and Processing are
based on ISO/IEC Guide 65 and are applicable to
production certification (but not product certification) within the organic sector. The Demeter Accreditation Program likewise accredits organizations in
accor dance with this Guide.
Another impor tant guide is ISO/IEC Guide 61:1996,
Gen eral require ments for assess ment and accredi tation of certification/registration bodies, which
defines require ments for accredi ta tion bodies.
CEN and CENELEC
In the European Union, standardizing bodies at the
regional level include the European Committee for
Standardization (CEN) and the European Committee
for Electrotechnical Standardization (CENELEC).
Their members are the national standards bodies of
EU member countries as well as the Czech Republic,
Iceland, Norway and Switzerland. In addition to
formulating their own European standards, these
bodies adopt standards issued by international
standardizing bodies such as ISO and IEC.
ISO covers all technical fields with the exception of
electrical and electronic engineering. However, it has
not published guides or standards which specifically
address organic production. The ISO 9000 series of
standards are standards for quality management
systems and the ISO 14000 series deals with different
aspects of environmental management, including
environmental management systems, environmental
labelling and the environmental aspects of product
standards. The standards do not have any direct
implications for the methods and principles
applicable to organic food production.
CEN and CENELEC have recently jointly published
the European Standard (EN) 45011 (1998), General
criteria for certification bodies operating product
certification. EN 45011 (1998) corresponds to
ISO/IEC Guide 65:1996. EN 45011 is based on
ISO/IEC Guide 40:1983, General requirements for
the acceptance of certification bodies, which was
also the basis for the development of ISO/IEC Guide
65. While EN 45011 is not specifically applicable to
the certification of production methods, it applies to
any certification body operating within EU, including
organic certification bodies. As of 1 January 1998,
inspection bodies approved by EU must satisfy the
requirements laid down in EN 45011.
The most important guide for organic certification
is currently ISO/IEC 1 Guide 65:1996, General
requirements for bodies operating product
certificationsystems, which estab lishes prin ci ples for
cer ti fi ca tion bodies. There is no guide spe cific to the
certification of production methods, but Guide 65
provides general guidance for any product
EN 45011 belongs to the 45000 series of standards
covering testing, certification and accreditation.
Another standard in the series is EN 45010, General
requirements for assessment and accreditation of
certification/registration bodies, which corresponds
to ISO/IEC Guide 61.
1
IEC is the International Electrotechnical Commission; it cooperates closely with ISO.
14
Regulations in major markets
Prior to the establishment of regulations, exporters
could legally label products as organic and sell their
products in any country. Regulations in the majority
of importing countries have introduced a legal
equivalence requirement for products marketed as
organic in those countries.
To date, regulations essentially deal with references
to the organic production method on labels. They do
not define stan dards for the use of pri vate trade marks
or certification marks. This implies that regulations
may be sup ple mented by pri vate quality seals based
on private standards. Many certification bodies
within EU have chosen to keep private standards;
some have not.
European Union
Production and certification
The basic EU regulations on organic food products
are set out in Council Regulation (EEC) No. 2092/91
of 24 June 1991 and its amendments. Annex II
presents a consolidated version of the Regulation and
its amendments.
The EU Regulation applies to all processed and
unprocessed food products from plants or animals.
Until June 1999, standards for organic livestock
production were still in draft form and had not been
approved. Hence, livestock products were governed
only by standards set by private certification bodies
and by national regulations in some EU member
countries, including Austria, Denmark and France.
The administration and enforcement of organic
standards are carried out by national authorities.
According to Article 5 of the Regulation, the
labelling of a product may refer to the organic
production method only if the product was produced
in accordance with the rules laid down in Article 6
(Rules of Production) and if the producer or importer
is subject to the inspection measures laid down in
Articles 8 and 9 (Inspection System).
Annex I to the Regulation defines the EU principles
of organic production at farm level and Annex II cites
2
the materials that are authorized for use in soil
conditioning, fertilization and plant protection.
Annex III lists minimum inspection requirements and
Annex VI sets out the requirements for processed
foods. If at least 95% of the agricultural ingredients in
the product are organic, the product can be labelled
organic providing that the remaining 5% of the
ingredients are not available from organic production
and are listed in Annex VI, Section C. If the product
contains between 70% and 95% of organic
ingredients (the percentage being based on the weight
of the agricultural ingredients), the organic
ingredients can be mentioned only in the list of
ingredients and the product may not be marketed as
an organic product.
The Regulation recognizes the variety of terminology
used in the different EU member countries (Article
2), for example ‘ökologisch’ in German, ‘biologique’
in French and, of course, ‘organic’ in English. The
certification mark placed on organic products may be
freely chosen.
The Regulation is based to a large extent on the
IFOAM Basic Standards. Consequently, there are
few substantive differences between the two, with
some notable exceptions such as the length of
conversion periods.
Each EU member country has set up an inspection
system operated by public inspection authorities,
private inspection and/or certification bodies or both.
For instance, Denmark and Finland have set up a
fully government-run inspection system. Registration
and authorization of private certification bodies is
carried out by a designated authority in each EU
member country and extends only to the work of the
certification body within that country. Each year, the
European Commission publishes a list of inspection
and certification bodies authorized by the various
member countries to undertake inspection in
indi vidual coun tries 2.
Imports
Organic food products originating from non-EU
member countries may be imported and marketed
The terminology used in Council Regulation (EEC) No. 2092/91 is ‘inspection’, ‘inspection measures’, ‘inspection system’ and so on. However,
the term commonly used by the trade is ‘control’.
within EU carrying a label referring to the organic
origin of the product, if it is accepted that the products
are produced and certified according to procedures
equivalent to those of the Union.
There are basically two ways of meeting the
require ments for equiva lency: a third country may be
approved by the European Commission as having
standards and inspection measures equivalent to
those of EU. The country will then be added to a list
of approved countries, the so-called Article 11 list3.
Alter na tively, an indi vidual EU member country may
authorize an importer to import products from a
country not on the Article 11 list into that particular
EU member country. Under this provision, the
importer should apply to the des ig nated authori ties in
the EU member country for an import per mis sion and
the application should be accompanied by
documentation on the equivalency of standards and
con trol meas ures.
Literally, Article 11.7 opens up the possibility of a
third-country certification body being added to the
Article 11 list. However, it is interpreted by some as
giving EU certification bodies the possibility of being
added to the list and authorized to carry out
certification activities in approved third countries. An
example is the Netherlands certification body,
SKAL: it is approved for certification in Hungary, a
country in the Article 11 list.
Article 11 list of third countries
When a third country has established and
implemented organic standards, it may apply to the
Euro pean Com mis sion for inclu sion in the Article 11
list. The Com mis sion will then evaluate the coun try’s
organic production standards and its certification
measures. These standards should correspond with
the standards described in Article 6 of Regulation
2092/91, and certification measures should
correspond to the measures described in Articles 8
and 9. An approval may apply to certain product
cate go ries, regions or pro duc tion units, as well as to
certain certification bodies. It may also refer to
cer tain ori gins of the prod ucts.
In June 1999, only five countries appeared on the
Article 11 list: Argentina, Aus tralia, Hun gary, Israel
and Swit zer land.
3
15
Each consignment from an approved third country
should be accompanied by a certificate, certifying
that standards and certification measures are
equivalent to those applicable in EU. The
certification may be issued only by the approved
certification bodies mentioned in the Article 11 list.
For example, in Hungary only the Biokontroll
Hungária Kht and the SKAL office in that country
may issue this certification. It should also be noted
that this approval is specific to work in the said third
country.
With the excep tion of Swit zer land (which oper ates an
international verification system), the products
included in the Article 11 list must origi nate from the
listed country itself. Prod ucts con taining ingre di ents
from outside the country are not covered by the
Commission approval. An import licence must be
obtained for such prod ucts to be mar keted within EU
as organic.
Countries seeking approval may apply to the
EuropeanCommission.
Imports from countries not on the Article 11 list
Until 31 December 2002, organic prod ucts from countries not on the Article 11 list may be imported into EU
under import per mits issued by EU member coun tries,
pro vided that the importer sub mits docu men ta tion that
the prod ucts are pro duced and cer ti fied according to
rules equiva lent to those of EU. The bulk of the prod ucts cur rently entering EU are cov ered by indi vidual
import per mits, and it is widely believed that the pro vision will be extended beyond 2002. In the frame work
of this regime, EU member States have accepted
imports from more than 60 coun tries.
Import per mits are granted by des ig nated authori ties in
each EU member country to spe cific importers and are
valid only for those importers and for import entry into
that member country. If the importer wants to use
another EU member country as an import entry point,
a sepa rate per mis sion must be obtained from the latter
country. Once imported into an EU member country,
the prod ucts may be mar keted freely within EU.
Import permits are issued for a certain amount of
specific products from specified countries and are
valid for defined periods not exceeding 31 December
Article 11 of Regulation 2092/91, which provides for the drawing up of this list by the European Commission, sets out the rules for the
importation of organic products into EU as well as the criteria for inclusion on the list.
16
2002. The current authorization arrangements for
products from third countries are applicable until
31 December 2002.
To obtain an import permission in accordance with
Article 11.6a, the importer must provide sufficient
evi dence that the product is pro duced in accor dance
with pro duc tion require ments equiva lent to those laid
down in Article 6, that control measures are as
effec tive as those set out in Arti cles 8 and 9, and that
these control measures are effectively and
permanently implemented. As of 1 January 1998,
certification bodies must sat isfy the require ments of
EN 45011 or those of ISO/IEC Guide 65:1996.
Having accepted the evidence, the delegated
authority in the importing EU member country issues
an import permit. Any change in the grounds on
which an import permission is granted will
neces si tate a new import permit. For example, if the
importer imports the same product from the same
country but through another exporter or if
certification is carried out by another certification
body, a sepa rate import permit will be required.
Member countries and even regional authorities
implement this provision differently, meaning that
different kinds of control measures are accepted as
ensuring equivalency to EU regulations. A draft
docu ment for guid ance on the imple men ta tion of the
pro vi sions for impor ta tion from third coun tries exists,
but the document has not been finalized, and the
European Commission is currently working on
involving cus toms authori ties in con trol meas ures.
Equiva lency between pro duc tion methods in EU and
the export country is docu mented through the use of
certification bodies having standards at least
equivalent to those of EU or a certification
programme that ensures certification against
standards equivalent to those of EU. Because of
variations in local conditions some differences in
primary production methods between EU and third
coun tries are often allowed to a cer tain extent.
In gen eral, the cri teria for granting the import licence
are shifting away from evaluation at the production
level towards approval of the certification
arrangements, including the certification bodies. In
order to ensure equivalency in the effectiveness of
inspection and certification measures, third-country
certification bodies must also satisfy the
require ments laid down by EN 45011 or by ISO/IEC
4
Commission document 7607/VI/97, Rev. 3.
Guide 65:1996. EU member countries have agreed
on common guide lines on how such con for mity can
be documented4. According to these guidelines,
con for mity can be decided by:
q
Official accreditation bodies designated in the
third country or in any EU member country for
accreditation of certification and inspection bodies
(option 1);
q
The competent authority in the third country
(government) (option 2);
q
The competent authority in the EU member
country which grants import permits (option 3).
In the first instance, the importer must provide docu men tary evi dence that the cer ti fi ca tion body con forms
with the require ments of EN 45011 or ISO/IEC Guide
65:1996, and that this con for mity is con firmed by an
official accreditation body. The official accreditation
body should comply with the requirements for
accredi ta tion bodies set out in EN 45010 or ISO/IEC
Guide 61. As all European accreditation bodies are
expected to be sub ject to inter na tional mutual rec og nition agreements in the near future, selected official
accreditation bodies should also preferably join the
International Accreditation Forum, under which the
implementation of such agree ments is likely. Offi cial
accreditation processes require the periodic sur veillance and reassessment of accredited inspection and
certificationbodies.
The requirement for accreditation by an official
accreditation body is particularly significant for
cer ti fi ca tion bodies in devel oping coun tries, as it can
be quite expensive to obtain such accreditation.
Additionally, many countries may not have official
accredi ta tion bodies.
At this moment, it is not clear whether IFOAM
accreditation is acceptable as evidence of the
con for mity of a cer ti fi ca tion body with EN 45011 or
ISO/IEC Guide 65. IFOAM is not an ‘official
accreditation body’ that can be designated by any
third country or EU member country; it is, how ever,
applying for mem ber ship of IAF.
In the second instance, docu men ta tion showing that a
competent authority in the exporting country
guarantees conformity of the certification body with
the stan dards of EN 45011 or ISO/IEC Guide 65 must
be submitted by the importer. Additionally, the
importer should pro vide suf fi cient evi dence that the
accredited certification bodies are subjected to
peri odic sur veil lance and reas sess ment according to
the require ments of EN 45011 and ISO/IEC Guide 65.
In the third instance, the importer must submit all
infor ma tion required by the com pe tent authority in the
EU member country to enable the latter to decide on
compliance with EN 45011 or ISO/IEC Guide 65.
Regular surveillance and reassessment of the
certification bodies must be made by independent
experts or offi cial accredi ta tion bodies des ig nated by
the competent authority in the EU member country.
How ever, not all com pe tent authori ties in EU member
coun tries are ready to imple ment this option. There is a
possibility that documentation on IFOAM
accredi ta tion can in some cases be accepted as meeting
docu men ta tion require ments under this pro vi sion, and
some EU member countries may accept evaluations
carried out by independent experts.
For all import permits granted after 1 January 1998
for combinations of exporting countries and
certification bodies not previously assessed by a
competent authority in an EU member State, the
certification bodies must comply with the
requirements of EN 45011 or ISO/IEC Guide 65. For
import per mits granted before 31 December 1997 or
applications based on previous combinations of
exporting countries and certification bodies, a
timetable for transitional arrangements was drawn
up. Documentation evidencing the compliance of
certification bodies with EN 45011 or ISO Guide 65
should have been forwarded to the relevant
competent authorities no later than 31 May 1999. The
competent authorities in the EU member countries
were then to decide which import permits would
continue to be valid and which import permits were
to be withdrawn.
17
The above requirement on compliance with EN
45011 and ISO/IEC Guide 65 caused some stir, since
it added to the burden on certification bodies in
developing countries, as well as implied that
importers would have to provide additional
docu men ta tion on equiva lency.
As has been mentioned earlier, the continuous sur veillance and reassessment of certification bodies is
part of the offi cial accredi ta tion process. This sur veillance and reassessment is increasingly replacing
supervision as a means of ensuring the effective
application of inspection measures. How ever, some
member coun tries may in some cases require fur ther
evi dence that inspec tion and cer ti fi ca tion activi ties in
the third country are permanently and effectively
applied. There are no common guide lines on how the
related super vi sion is to be car ried out and by whom.
The above- mentioned require ments must be ful filled
for each export consignment destined for an EU
country. In addi tion, the exporter must pres ent to the
importer an individual export form indicating the
kind and quan tity of goods, the stan dards applied, and
the cer ti fi ca tion body pro viding the cer ti fi ca tion. The
forms and details required may vary from country to
country.
The EU member State granting an import authori zation noti fies the Euro pean Com mis sion and the other
EU member States and for wards to all of them documentation relevant to the issuance of the import
permit.
Other markets
Regulations in non-European markets, such as
Australia, Japan, Canada and the United States, are
discussed in chapter 4. Regulations in Switzerland
are taken up in chapter 11.
Certification in exporting countries
Certification in exporting countries may be carried
out by local certification bodies, by international
certification entities, or under a partnership
arrange ment between these two types of bodies.
Certification by local bodies
If the exporter wants to enter the European market
and the exporting country is on the EU Article 11 list,
a certification body appearing on the list should be
chosen. For example, for Argen tina, which is on the
Article 11 list, the local cer ti fi ca tion bodies Insti tuto
Argentino para la Certificación y Promoción de
Productos Agropecuarios Orgánicos srl (Argencert)
and Organi za ción Inter na cional Agro pecuaria (OIA)
appear in the Article 11 list. They have the approval
of SENASA, part of the Argentine Department of
18
Agriculture, and have partnership agreements with
pri vate and gov ern mental cer ti fi ca tion bodies in both
Europe and the United States.
Argencert is a limited liability company. It has a
stan dards com mittee, inspec tors and an inde pendent
certification committee. The last-mentioned
com mittee con sists of four per sons rep re senting four
institutions. Argencert serves several growers,
grower groups, processors and traders. Each
producer in these groups has a certification
agree ment with Argencert and is inspected annu ally.
However, as only very few countries and certification
bodies are on the Article 11 list, most operators must
rely on certification to obtain import permits. Local
certification bodies wishing to ensure that their
certification will be accepted by EU authorities should
either seek official accreditation (option 1, see page
16), or request guarantees from the local authorities
that they comply with ISO/IEC Guide 65 (option 2).
Such guarantees should be based on legal grounds.
However, the services of local certification bodies
oper ating in coun tries not on the Article 11 list, which
are not officially accredited and whose compliance
with ISO/IEC Guide 65 is not guar an teed by the local
authorities, may be recognized for the purposes of
issuing import permits. This recognition can be
obtained through an evalua tion car ried out by an independent expert acceptable in EU (option 3). An
example of such a body is Biolatina SAC. Its main
office is in Peru, and it has local inspec tion offices in
Bolivia, Colombia and Nica ragua. It has devel oped a
cer ti fi ca tion pro gramme for Latin America. Its inspection and certification activities are evaluated by an
expert approved by a com pe tent authority in Ger many.
It is difficult to envisage an export trade in organic
products with the EU market based solely on local
cer ti fi ca tion and accredi ta tion. Many coun tries do not
have accreditation facilities, and the cost of official
accreditation can be quite high. Additionally, if EU
member countries require further evidence that
control measures are being effectively and
permanently applied, recourse may have to be made
to international bodies or experts.
In effect therefore international accreditation and/or
international supervision and surveillance are
required. In regard to supervision and surveillance,
local certification bodies have often established
partnerships with international certification bodies or
experts carrying out these activities.
Countries that have established and implemented
national leg is la tion for the pro duc tion and cer ti fi ca tion
of organic products may apply to the European
Com mis sion for inclu sion on the Article 11 list.
Certification under partnerships
between local and international bodies
Cer ti fi ca tion may be car ried out under a part ner ship
between local and international certificationbodies.
The part ner ship can take various forms, but often the
local bodies carry out the bulk of the activities
leading to cer ti fi ca tion, while the inter na tional cer ti fication body periodically evaluates the imple men tation of cer ti fi ca tion pro ce dures and some times issues
the certificates. This may reduce certification costs
for the opera tors while pro viding access to an inter national cer ti fi ca tion mark, as well as strengthen local
inspec tion and cer ti fi ca tion capacity.
Local inspection entities and international
certification bodies may enter into partnership
contracts under which the local body car ries out the
on-site inspections, writes inspection reports and
sub mits them to the inter na tional cer ti fi ca tion body;
cer ti fi ca tion is under taken by the inter na tional body.
Producers certified this way gain access to the
internationalcertificationmark.
Full cer ti fi ca tion may also be car ried out locally, the
only inter na tional involve ment being super vi sion to
ensure that the certification bodies comply with EN
45011 or ISO/IEC Guide 65 stan dards or that con trol
measures are being effectively and permanently
applied.
International super vi sion may be paid for by an aid
organi za tion, the local cer ti fi ca tion body and, in some
cases, by an importer.
Certification by a local branch of an
international certification body
An international certification body may establish
branch offices elsewhere. Such offices follow the
inspec tion and cer ti fi ca tion pro ce dures of the mother
com pany and are fully inte grated into its inter na tional
certificationsystem.
Several certification bodies operating at the
international level have established branch offices in
other countries. For example, the Organic Crop
Improvement Association, Inc. (OCIA), a United
States company, has set up several branch offices in a
number of countries, including at the Organic Food
Development Center (OFDC) in China. The branch
office has its own certification committee and a
certification programme, which follows OCIA
standards and by-laws. Inspection is carried out by
Chinese inspectors approved by OCIA.
Certification by international bodies
An operator may choose to be cer ti fied by an inter national certification body. International certification is
likely to be more expen sive than local cer ti fi ca tion, but
if no local certificationprogramme is avail able it may
be the only solu tion in the short term. For the long term,
the establishment of a local certification programme
should be considered. The international market pre mium on the product will deter mine whether cer ti fi cation by a for eign cer ti fi ca tion body is fea sible.
The cer ti fi ca tion body does not need to be Euro pean
for the operator to enter the Euro pean market. Other
19
international certification bodies may offer
cer ti fi ca tion pro grammes ful filling EU require ments.
How ever, some opera tors choose Euro pean cer ti fi cation bodies for exports to Europe on the grounds that
this will reduce trade dif fi cul ties. Only a minority of
the cer ti fi ca tion bodies approved by the various EU
member coun tries are active in third coun tries. They
include BCS Öko Garantie GmbH (Ger many), Ecocert (France), Institut für Marktökologie or IMO
(Swit zer land), KRAV (Sweden), Organic Farmers &
Growers Ltd (OF&G, United Kingdom), SKAL
(Neth er lands) and Soil Asso cia tion Cer ti fi ca tion Ltd
(United Kingdom).
Several European certification bodies are active in
many African coun tries, as well as in India and Sri
Lanka. There are even cases, for instance in India,
where one operator is inspected and certified by
several international certification bodies, American,
Aus tra lian and Euro pean.
Some types of certification arrangements
Subcontracting
Certified opera tors may enter into sub con tracts with
other operators to carry out specific operations on
their behalf, for instance part of a manufacturing
process. The subcontractor may, for example, be a
farmers’ cooperative, a processor or a packer. The
certification of such subcontractors is car ried out as
part of the certification of the main operators (or
licen sees), who pay for the cer ti fi ca tion. Sub con tractors do not have the right to market their pro duc tion
with the certification mark, and they may handle
organic products only within the coop era tion agreement with the licensee. The cer ti fi ca tion mark may be
used only by the licensee.
Sub con tracting is quite common in many parts of the
world, including Europe. Cer ti fi ca tion based on subcon tracting is also done for instance by Argencert in
Argentina. It is often a trader or a processor that is
cer ti fied and holds the cer tifi cate and pays for the cost
of cer ti fi ca tion.
Grower groups
Spe cial inspec tion and cer ti fi ca tion arrange ments can
be developed for groups of small producers. In a
grower group system, the key elements are the
reduction of external inspection through the
estab lish ment of an internal con trol mecha nism and
common marketing operations for the producers
belonging to the system. Grower groups may include
small processing units and storage units. Several
certification programmes have made special
provisions for the certification of smallholders,
proj ects and other kinds of coop era tive arrange ments.
Provisions for the inspection of such groups often
differ from those applied to single opera tors.
In general there are two approaches to the
certification of a grower group system. Inspection
may be directed to part of the grower group, for
instance a percentage of the farmers, or it may be
directed to the internal control system, i.e. focusing
on com piling docu men ta tion on each of the farmers,
in- house moni toring system, quan tity con trol, etc.
To mention an example, the certification bodies BCS,
Bio Latina, Ecocert, IMO, OCIA and SKAL, which
are all active in Latin America, carry out certification
of grower group systems there. A control programme
has been established which basically covers the
design and establishment of an internal control
system within the producers’ organizations. This
programme provides for documentation on each
farmer (production procedures, basic information,
management plan, etc.) and internal inspections.
20
Setting up a certification programme
The long-term possibility
Inspec tion and cer ti fi ca tion can be done locally and,
if the appro priate local bodies do not exist, they can
be established. The best way forward is to bring
together all the parties involved in organic agri culture, including farmers, proc es sors, advo cacy organizations, consumer organizations, environmental
organizations, university researchers, agricultural
exten sion workers, etc. A com mittee could be established to review the organic standards of gov ernments, certification bodies, the Codex Alimentarius
Commission, and the IFOAM Basic Standards.
Guide lines for car rying out inspec tion and cer ti fi cation at local level are often available: for instance,
offi cial regu la tions (e.g. the Euro pean Council Regula tion (EEC) No. 2092/91 and its amend ments) and
the IFOAM criteria for organic certification pro grammes could pro vide valu able infor ma tion.
After reviewing inter na tional stan dards and those of
other countries, the committee can develop and
rec om mend national organic stan dards. These should
be consistent with standards in important markets
while taking local con di tions into con sid era tion. The
committee can also recommend a structure for the
certification body. Procedures for inspectors and
cer ti fi ca tion should also be estab lished and inspec tors
must be trained.
After the establishment of the local certification
programme, local farmers and processors should be
educated about the organic standards and the
certification process. When certification has
com menced, an appli ca tion for accredi ta tion should
be made.
Spe cific guide lines for estab lishing local cer ti fi ca tion
bodies can be found in the pub li ca tion Building Trust
in Organics: A Guide to Setting Up Organic
Certification Programmes, written by G. Rundgren
and pub lished by IFOAM in 1997.
Assis tance can also be obtained from the Inde pendent
Organic Inspectors Association, which offers an
inspector training course, as well as from other local
or inter na tional cer ti fi ca tion bodies, espe cially those
that have been accredited or that appear on the EU
Article 11 list. For instance, an international
certification or accreditation body may provide
tuto rial assis tance to local pro fes sionals in inspec tion
and certification procedures. The training may
sometimes be part of a development project,
involving external funding, NGOs and other
estab lish ments. After the training, a national organic
standards committee may be established, and the
trained inspec tors can carry out local inspec tions for
the inter na tional partner. This is the first step towards
the crea tion of a fully opera tional local pro gramme.
To mention one example, the Soil Association
Certification Ltd, an officially recognized
cer ti fi ca tion body in the United Kingdom linked with
The Soil Asso cia tion, has pro vided tuto rial assis tance
to Venezuelan professionals in inspection and
certificationprocedures.
Annex I
Basic concepts
Accreditation. A pro ce dure by which an authori ta tive body
evalu ates and gives a formal rec og ni tion that a cer ti fi ca tion
programme is in accordance with the standards of the
authori ta tive body.
grants a person or body the right to use certificates or
cer ti fi ca tion marks for its prod ucts, processes or serv ices
in accor dance with the rules of the relevant certification
programme.
Certificate. Docu ment indi cating that ade quate con fi dence
is provided that a product, process or service is in
con for mity with a spe cific stan dard.
Licensee. An operator that has a license to use a
cer ti fi ca tion mark
Certification. A procedure by which a third party gives
written assur ance that a product, process or service is in
conformity with certain stan dards. Cer ti fied organic food
prod ucts are food prod ucts that have been veri fied to have
been pro duced in accor dance with speci fied stan dards for
organic pro duc tion and proc essing.
Certificationbody. An organi za tion per forming cer ti fi ca tion.
Sometimes referred to as the cer ti fier or the cer ti fi ca tion
agency.
Certification mark. A mark or symbol indicating that
com pli ance with stan dards has been veri fied.
Certification programme. A system of rules, procedures
and man age ment for car rying out cer ti fi ca tion. One cer ti fica tion body may exe cute sev eral dif ferent cer ti fi ca tion programmes. Some times referred to as a cer ti fi ca tion system.
Operator. Anyone carrying out activities covered by a
cer ti fi ca tion pro gramme, for instance farmers, proc es sors,
handlers.
Standards. Docu mented agree ments con taining tech nical
speci fi ca tions or other pre cise cri teria to be used con sistently as rules, guidelines or definitions, to ensure that
mate rials, prod ucts, processes and serv ices are fit for their
pur pose. Stan dards relating to organic food prod ucts are
production and/or processing standards describing, pre scribing, allowing or pro hib iting pro ce dures and mate rials,
as well as stan dards for cer ti fi ca tion and label ling.
Subcontractor. Anyone car rying out activi ties cov ered by a
cer ti fi ca tion pro gramme, for instance farmers, proc es sors,
han dlers, on behalf of an operator.
EN 45010.* A European standard for accreditation
devel oped by CEN and CENELEC.
Competent authority. The official government agency
having juris dic tion.
EN 45011.* A European standard for certification
devel oped by CEN and CENELEC.
Con trol, con trol body. Terms com monly used by the trade
when refer ring to inspec tion and an inspec tion body.
ISO/IEC Guide 61.* An inter na tional guide to accredi ta tion
developed by the international standardization
organi za tions ISO and IEC.
Inspection. An on- site visit to verify that the per form ance of
an opera tion is in accor dance with spe cific stan dards of a
cer ti fi ca tion pro gramme.
Inspec tion body. The body per forming the inspec tion part
of cer ti fi ca tion. Where a cer ti fi ca tion body per forms its own
inspections, the inspection body is identical to the
cer ti fi ca tion body. Some times referred to as the inspec tion
agency or the con trol body.
Inspector. A person appointed to under take the inspec tion
part of a cer ti fi ca tion pro gramme.
Licence. A document issued under the rules of a
certification programme, by which a certification body
ISO/IEC Guide 65.* An inter na tional guide to cer ti fi ca tion
devel oped by ISO and IEC.
____________________
* The EN 45000 series of standards and their corresponding
ISO/IEC Guides lay down general criteria for the operation of
testing and calibration laboratories, certification bodies for
prod ucts, quality sys tems and per sonnel, inspec tion bodies, and
accreditation bodies with the aim of ensuring confidence and
reliability in the activities of these bodies. The EN 45000
stan dards are also referred to as “har mo nized stan dards”.
Annex II
MAFF consolidated version of EC Regulationa/
COUNCIL REGULATION (EEC) No. 2092/91
of 24 June 1991
on organic production of agricultural products and indications referring thereto on agricultural
products and foodstuffs
(note: substantive changes arising from the latest amending Council Regulation No. 1935/95
are indicated by the use of bold italics)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European
Economic Community, and in particular Article 43 thereof,
Having regard to the proposals from the Commission,
Having regard to the opinion of the European Parliament,
Having regard to the opinion of the Economic and Social
Committee,
Whereas demand from consumers for organically
produced agricultural products and foodstuffs is
increasing; whereas a new market for agricultural products
is thus being created by this phenomenon;
Whereas the market price for such products is higher,
while the way in which they are produced involves less
intensive use of land; whereas, therefore, in the context of
the reorientation of the common agricultural policy, this
type of production may contribute towards the attainment
of a better balance between supply of, and demand for,
agricultural products, the protection of the environment
and the conservation of the countryside;
Whereas, in response to the rising demand, agricultural
products and foodstuffs are being placed on the market
with indications stating or implying to purchasers that they
have been produced organically or without the use of
synthetic chemicals;
Whereas some Member States have already adopted
rules and inspection arrangements for the use of such
indications;
Whereas a framework of Community rules on production,
labelling and inspection will enable organic farming to be
protected in so far as it will ensure conditions of fair
competition between the producers of products bearing
such indications and give the market for organic products
a more distinctive profile by ensuring transparency at all
stages of production and processing, thereby improving
the credibility of such products in the eyes of consumers;
Whereas organic pro duc tion methods con sti tute a spe cific
form of pro duc tion at farm level; whereas, con se quently, it
should be pro vided that, on the label ling of proc essed products, indications referring to organic production methods
should relate to the ingre di ents obtained by such methods;
Whereas, for the implementation of the arrangements
concerned, provision should be made for flexible
procedures whereby certain technical details or measures
may be amended, amplified or further defined in order to
take account of experience gained; whereas, within a
suitable period, this Regulation will be supplemented by
equivalent rules covering livestock production;
Whereas, in the interests of the producers and purchasers
of products bearing indications referring to organic
production methods, the minimum principles which must
be complied with in order for products to be presented with
such indications should be laid down;
Whereas organic production methods entail significant
restrictions on the use of fertilizers and pesticides which
may have detrimental effects on the environment or result
in the presence of residues in agricultural produce;
whereas, in this context, practices accepted in the
Community when this Regulation is adopted must be
complied with in accordance with codes of practice
followed in the Community when this Regulation is
adopted; whereas, moreover, in the future, the principles
governing the authorization of products which may be
used in this type of farming must be established;
__________________________________
a/ Source: Ministry of Agriculture, Farming and Fisheries, United Kingdom. Not to be regarded as a definitive legal text.
CHAPTER 2 – CERTIFICATION, Annex II
Whereas, moreover, organic farming involves varied
cultivation practices and limited use of non-synthetic
fertilizers and conditioners of low solubility; whereas these
practices should be specified and conditions for the use of
certain non-synthetic products laid down;
Whereas the procedures laid down make possible, if this
appears necessary, the addition to Annex I of more
specific provisions aimed at avoiding the presence of
certain residues of synthetic chemicals from sources other
than agriculture (environmental contamination) in the
products obtained by such production methods;
Whereas, to ensure compliance with the rules on
production, all stages of production and marketing should
normally be subject to inspection;
Whereas all operators producing, preparing, importing or
marketing products bearing indications referring to organic
production methods must be subject to a regular
inspection system, meeting minimum Community
requirements and carried out by designated inspection
authorities and/or by approved and supervised bodies;
whereas provision should be made for a Community
indication of inspection to appear on the labelling of the
products concerned;
(“Whereas” recitals in amending Reg. No. 1935/95)
Whereas the Commission has received a specific
mandate in the framework of Regulation (EEC) No
2092191 to review a number of provisions of that
Regulation by 1 July 1994 and to submit any appropriate
proposal for revision of that Regulation;
Whereas it has become apparent that the provisions,
expiring on 1 July 1995 concerning the labelling of
agricultural products and foodstuffs containing an
ingredient of agricultural origin which was produced by
producers converting to organic farming, should be
extended in order to permit those producers to valorize
the additional cost of their production by an appropriate
labelling of their products;
Whereas the review of Articles 5, 10 and 11 requested by
the Council by 1 July 1994 has shown that a number of
technical and drafting amendments in those Articles as
well as in certain other provisions are necessary to
ensure a proper management and implementation of the
Regulation; whereas priority has therefore been given to
the establishment of these amended rules and that
consequently the establishment of the rules concerning
animal production should be postponed for a limited
period;
Whereas it has become apparent from the review that the
provisions concerning the labelling of foodstuffs
prepared only partly from ingredients of agricultural
origin which were produced according to organic
production methods, should be improved in order
to permit greater emphasis to be placed on the
organically produced component in such foodstuffs;
Whereas it has also become apparent that the indication
provided for in Annex V should remain optional, but
should also, in order to prevent improper use of that
23
indication, be restricted to sales of prepackaged
foodstuffs or direct sales by the producer or preparer to
the ultimate consumer, provided that the nature of the
product can be identified unambiguously;
Whereas it has fur ther more become apparent that propagating material should be obtained from organically
grown plants but that a system of dero ga tions is nec essary in order to enable pro ducers to use, during a tran sitional period, conventionally-produced propagating
material, where no appropriate organically-produced
propa gating mate rial is avail able;
Whereas, for the same reasons, it must be permissible for
whole seedlings obtained in a conventional manner and
intended for planting for plant production to be used for
an interim period;
Whereas it has become apparent that a number of
products which were used before the adoption of
Regulation (EEC) No 2092/91 in accordance with the
codes of practice of organic farming followed in the
Community, have not been included in Annex II of the
Regulation; whereas the use of such products should be
permitted to the extent that their use is also permitted in
conventional agriculture;
Whereas it has appeared appropriate to clarify
that the inspection system provided for applies
also to importers of products from third countries
established in the European Union;
Whereas Regulation (EEC) No 2092191 should therefore
be amended,
HAS ADOPTED THIS REGULATION:
Scope
Article 1
1.
This Regulation shall apply to the following products,
where such products bear, or are intended to bear,
indications referring to organic production methods:
(a)
unprocessed agricultural crop products; also
animals and unprocessed animal products, to the
extent that principles of production and specific
inspection rules for them are introduced into
Annexes I and III;
(b)
products intended for human consumption
composed essentially of one or more ingredients of
plant origin; in addition, upon adoption of the
provisions concerning livestock production referred
to in (a), products intended for human consumption
containing ingredients of animal origin.
2.
A proposal concerning the principles and specific
measures of control governing organic animal production,
non-processed animal products and products intended for
human consumption containing ingredients of animal
origin shall be submitted by the Commission as soon as
possible and before 30 June 1995.
24
Article 2
For the purposes of this Regulation a product shall be
regarded as bearing indications referring to organic
production methods where, in the labelling, advertising
material or commercial documents, such a product or its
ingredients is described by the indications in use in each
Member State suggesting to the purchaser that the
product or its ingredients have been obtained in
accordance with the rules of production laid down in Article
6 and in particular the following terms, unless such terms
are not applied to agricultural products in foodstuffs or
clearly have no connection with the method of production:
-
in Spanish:
in Danish:
in German:
in Greek:
in English:
in French:
in Italian:
in Dutch:
in Portuguese:
in Finnish:
in Swedish:
ecológico,
rkologisk,
ökologisch,
$4@8@(4i`,
organic,
biologique,
biologico,
biologisch,
biológico,
luonnomukainen
ekologisk
5.
“operator” shall mean any natural or legal person
who produces, prepares or imports from a third country,
with a view to the subsequent marketing thereof, products
as referred to in Article 1, or who markets such products;
6.
“ingredients” shall mean the substances, including
additives, used in the preparation of the products specified
in Article 1 (1) (b), as defined in Article 6 (4) of Directive
79/112/EEC on the approximation of the laws of the
Member States relating to the labelling, presentation and
advertising of foodstuffs for sale to the ultimate
consumer;
7.
“plant protection products” shall mean products as
defined in Article 2 (1) of Council Directive 79/117/EEC of
21 December 1978 prohibiting the placing on the market
and use of plant protection products containing certain
active substances, as last amended by Directive
89/365/EEC;
8.
“detergents” shall mean substances and prepa rations, within the meaning of Council Direc tive 73/404/EEC
of 22 November 1973 on the approxi ma tion of the laws of
the Member States relating to deter gents, as last amended
by Direc tive 86/94/EEC, which are intended to be used for
cleaning cer tain prod ucts as referred to in Article 1 (1) (a);
9.
Article 3
This regulation shall apply without prejudice to other
Community provisions governing the production,
preparation, marketing, labelling and inspection of the
products specified in Article 1.
“pre-packaged foodstuff’ shall mean any single
item as defined in Article 1 (3) (b) of Directive 79/112/EEC;
10.
“list of ingredients" shall mean the list of
ingredients referred to in Article 6 of Directive
79/112/EEC.
Labelling
Definitions
Article 5
Article 4
For the purpose of this Regulation:
1.
“labelling” shall mean any words, particulars, trade
marks, brand names, pictorial matter or symbols on any
packaging, document, notice, label, board or collar
accompanying or referring to a product specified in
Article 1;
“production” shall mean the operations on the
agricultural holding involved in producing, packaging and
initially labelling as products of organic production
1.
The labelling and advertising of a product specified
in Article 1 (1) (a) may refer to organic production methods
only where:
(a)
such indications show clearly that they relate to a
method of agricultural production;
(b)
the product was produced in accordance with the
rules laid down in Article 6 or imported from a third
country under the arrangements laid down in
Article 11;
(c)
the product was produced or imported by an
operator who is subject to the inspection measures
laid down in Articles 8 and 9;
(d)
in the case of products prepared after 1 January
1997, the labelling refers to the name and/or the
code number of the inspection authority of body to
which the operator is subject. Member States shall
decide whether to require a reference to the name
and/or to the code number and shall notify the
Commission accordingly;
2.
(deleted)
2.
agricultural products produced on that holding;
3.
“preparation”
shall mean the operations of
preserving and/or processing of agricultural products, and
also packaging and/or alterations made to the labelling
concerning the presentation of the organic production
method of the fresh, preserved and/or processed
products;
4.
“marketing" shall mean holding or displaying for
sale, offering for sale, selling, delivering or placing on the
market in any other form;
3.
The labelling and advertising of a product specified
in Article 1 (1) (b) may bear indications referring to organic
production methods in the sales description of the product
only where:
(a)
(b)
(c)
(b)
a conversion period of at least 12 months before the
harvest has been complied with;
(c)
such indications do not mislead the purchaser of the
product regarding its difference from products which
satisfy all the requirements of paragraphs 1 or 3.
at least 95% of the ingredients of agricultural origin
of the product are, or are derived from, products
obtained in accordance with the rules laid down in
Article 6 or imported from third countries under the
arrangements laid down in Article 11;
all the other ingredients of agricultural origin of the
product are included in Annex VI, Section C or have
been provisionally authorized by a Member State in
accordance with any implementing measures
adopted where appropriate pursuant to paragraph 7;
the product contains only substances listed in Annex
VI, Section A, as ingredients of nonagricultural
origin;
(d)
the product or its ingredients of agricultural origin,
referred to in subparagraph (a), have not been
subjected to treatments involving the use of
substances not listed in Annex VI, Section B;
(e)
the product or its ingredients have not been
subjected to treatments involving the use of ionizing
radiation;
(f)
the product has been prepared or imported by an
(g)
in the case of products prepared after 1 January
1997, the labelling refers to the name and/or the
code number of the inspection authority or body to
which the operator who has carried out the most
recent preparation operation is subject. Member
States shall decide whether to require a reference
to the name and/or to the code number and shall
notify the Commission accordingly.
The indications referring to organic production
methods must make it clear that they relate to a
method of agricultural production and must be
accompanied by a reference to the ingredients of
agricultural origin concerned, unless such reference
is clearly given in the list of ingredients.
4. Ingredients of agricultural origin may be included in
Annex VI, Section C only where it has been shown that
such ingredients are of agricultural origin and are not
produced in sufficient quantity in the Community in
accordance with the rules laid down in Article 6, or cannot
be imported from third countries in accordance with the
rules laid down in Article 11.
5. Products labelled or advertised in accordance with
paragraphs 1 or 3 may bear indications referring to
conversion to organic production methods, provided that:
(a)
25
the requirements referred to in paragraph 1 or
paragraph 3 respectively are fully satisfied, with the
exception of that concerning the length of the
conversion period referred to in paragraph 1 of
Annex I;
After 1 January 1996 such indications must take the
form of the words “product under conversion to
organic farming”, and must appear in a colour, size
and style of lettering which is not more prominent
than the sales description of the product; in this
indication the words “organic farming” shall not be
more prominent than the words “product under
conversion to”;
(d)
the product contains only one ingredient of
agricultural origin;
(e)
for products prepared after 1 January 1997, the
labelling refers to the name and/or the code number
of the inspection authority or body to which the
operator who has carried out the most recent
production or preparation operation is subject.
Member States shall decide whether to require a
reference to the name and/or to the code number
and shall notify the Commission accordingly.
5a. Without prejudice to the provisions of paragraph 3,
the labelling and advertising of a product as referred to in
Article 1 (1) (b) may only bear indications referring to
organic production methods where:
(a)
are, or are derived from, products obtained in
accordance with the rules laid down in Article 6 or
imported from third countries under the
arrangements laid down in Article 11;
(b)
all the other ingredients of agricultural origin of
the product are included in Annex VI, Section C or
have been provisionally authorized by a Member
State in accordance with any implementation
measures adopted where appropriate pursuant to
paragraph 7;
(c)
the indications referring to organic production
methods appear in the list of ingredients and only in
clear relation to those ingredients obtained
according to the rules laid down in Article 6 or
imported from third countries under the
arrangements laid down in Article 11; they appear
in the same colour and with an identical size and
style of lettering as the other indications in the list
of ingredients. Such indications must also appear
in a separate statement set in the same visual field
as the sales description and indicating the
percentage of the ingredients of agricultural origin
or derived therefrom which were obtained in
accordance with the rules laid down in Article 6 or
were imported from third countries under the
arrangements laid down in Article 11. The
statement may not appear in a colour, size and style
of lettering which is more prominent than the sales
description of the product. The statement shall be
in the following form: “X% of the agricultural
ingredients were produced in accordance with the
rules of organic production”;
26
(d)
the product contains only substances listed
in Annex VI, Section A as ingredients of
nonagricultural origin;
(e)
the product or its ingredients of agricultural origin
referred to in subparagraph (a) have not been
subjected to treatments involving the use of
substances not listed in Annex VI, Section B;
(f)
the product or its ingre di ents have not been subjected to treat ments involving the use of ion izing
radiation;
(g)
(h)
the product has been prepared or imported by an
for products prepared after 1 January 1997, the
label ling refers to the name and/or the code number
of the inspection authority or inspecting body to
which the operator who has car ried out the most
recent pro duc tion or prepa ra tion opera tion is subject. Member States shall decide whether to require
a ref er ence to the name and/or to the code number
and shall notify the Com mis sion accord ingly.
Conditions of use and compositional requirements of
these ingredients and substances may be specified.
Where a Member State considers that a product should be
added to the above-mentioned lists or that amendments
should be made thereto, it shall ensure that a dossier
giving the reasons for the inclusion or the amendments is
sent officially to the other Member States and the
Commission, which shall present it to the Committee
referred to in Article 14.
9.
For the calculation of the percentages referred to in
paragraphs 3 and 6, the rules provided for in Articles 6
and 7 of Directive 79/112/EEC shall be applied.
10.
In a product as referred to in Article 1 (1), an
ingredient obtained according to the rules laid down in
Article 6 shall not be present together with the same
ingredient not obtained according to those rules.
11.
Before 1 January 1999, the Commission shall
review the provisions of this Article and of Article 10 and
submit any appropriate proposals for their revision.
6.
During a transitional period expiring on
31 December 1997, the labelling and advertising of a
Rules of Production
product as referred to in Article 1 (1) (b) pre pared partly
from ingredients not satisfying the requirements in
para graph 3 (a) may refer to organic pro duc tion methods
pro vided that:
(a)
satisfy the requirements referred to in paragraph 3 (a);
(b)
the product satisfies the requirements referred to in
paragraph 3 (c), (d), (e) and (f);
(c)
Article 6
1.
The organic production method implies that for the
production of products referred to in Article 1 (1) (a) other
than seeds and vegetative propagating material:
(a)
at least the requirements of Annex I and, where
appropriate, the detailed rules relating thereto, must
be satisfied;
(b)
only products composed of substances listed in
Annexes I and II may be used as plant-protection
products, detergents, fertilizers, soil conditioners or
the indications referring to organic production
methods:
- appear only in the list of ingredients as provided
for in Directive 79/112/EEC, as last amended by
Directive 89/395/EEC,
for another purpose where such purpose is
specified in Annex II in regard to certain
substances. They may be used only under the
- clearly refer to only those ingredients obtained
according to the rules referred to in Article 6 or
imported under the arrangements laid down in
Article 11;
(d)
the ingredients and their relative levels appear in
descending order by weight in the list of ingredients;
(e)
indications in the list of ingredients appear in the
same colour and with an identical size and style of
lettering;
7.
Detailed rules concerning the implementation of this
Article may be established according to the procedure laid
down in Article 14.
8.
Limitative lists of the substances and products
referred to in para graph 3 (b), (c) and (d) and para graph 5a
(b), (d) and (e) shall be estab lished in Annex VI, Sec tions
A, B and C, according to the procedure laid down in
Article 14.
specific conditions laid down in Annexes I and II in so
far as the corresponding use is authorized in general
agriculture in the Member States concerned in
accordance with the relevant Community provisions
or national provisions in conformity with Community
law;
(c)
only seed or vegetative propagating material
produced by the organic production method
referred to in paragraph 2 is used.
2.
The organic production method implies that for
seeds and vegetative reproductive material, the mother
plant in the case of seeds and the parent plant(s) in the
case of vegetative propagating material have been
produced in accordance with the provisions of
subparagraphs (a) and (b) of the previous paragraph for
at least one generation or, in the case of perennial crops,
two growing seasons.
3(a) By way of derogation from paragraph 1 (c), seeds
and vegetative propagating material not obtained
by the organic production method may, during a
transitional period expiring on 31 December 2000
and with the approval of the competent authority of
the Member State, be used in so far as users of
such propagating material can show to the
satisfaction of the inspection body or authority of
the Member State that they were unable to obtain
on the market propagating material for an
appropriate variety of the species in question and
satisfying the requirements of paragraph 2. In that
case, propagating material which is not treated with
products not listed in Annex II, Section B must be
used, if available on the Community market.
Member States shall inform the other Member
States and the Commission of any authorization
granted under this paragraph.
(b)
material have demonstrated to the satisfaction of
the inspection body or authority of the Member
State that they were not able to obtain an
appropriate variety of the species in question on
the Community market,
(b)
the seedlings have not been treated, since sowing,
with any products other than those listed in Annex
II, Sections A and B;
(c)
the seedlings come from a producer who has
accepted an inspection system equivalent to the
arrangements laid down in Article 9 and has agreed
to apply the restriction in subparagraph (b); this
provision shall enter into force on 1 January 1996;
(d)
after planting, the seedlings must have been
cultivated in accordance with the provisions of
Article 6 (1) (a) and (b) for a period of at least six
weeks before harvesting;
(e)
the labelling of any product containing ingredients
derived from such seedlings may not include the
indication referred to in Article 10;
(f)
without prejudice to any restriction resulting from
the procedure referred to in paragraph 4, any
authorization granted under this paragraph shall be
withdrawn as soon as the shortage comes to an
end, and shall expire on 31 December 1997 at the
latest.
The procedure laid down in article 14 may be
applied to decide on:
-
-
-
the introduction, before 31 December 2000 of
restric tions con cerning the tran si tional measure
referred to in subparagraph (a) with regard to
certain species and/or types of propagating
material and/or the absence of chemical
treatment,
the maintenance, after 31 December 2000, of the
derogation provided for in subparagraph (a) with
regard to certain species and/or types of
propagating material and with regard to the
whole Community or certain parts thereof,
the intro duc tion of pro ce dural rules and cri teria
concerning the derogation referred to in
subparagraph (a) and the information thereon
com mu ni cated to the pro fes sional organi za tions
concerned, to other Member States and the
Commission.
4.
Before 31 December 1999 the Commission shall
review the provisions of this Article, in particular
paragraph 1 (c) and paragraph 2 and submit any
appropriate proposals with a view to their revision.
Article 6a
1.
For the purposes of this Article, “seedlings” shall
mean whole seedlings intended for planting for plant
production.
2.
The organic production method implies that when
producers use seedlings, they have been produced in
accordance with Article 6.
3.
By way of derogation from paragraph 2 seedlings
not obtained by organic production methods may be
used during a transitional period expiring on
31 December 1997 in so far as the following conditions
are met.
(a)
27
the competent authority of the Member State has
authorized the use after the user or users of such
4(a) Where an authorization as referred to in paragraph
3 has been granted, the Member State shall
immediately notify to the other Member States and
to the Commission the following information:
-
the date of the authorization,
-
the name of the variety and species concerned,
-
the quantities that are required and the
justification for those quantities,
-
the expected period of the shortage,
-
any other information requested
Commission or the Member States.
by
the
4(b) If the infor ma tion sub mitted by any Member State to
the Commission and to the Member State which
granted the authorization shows that an appro priate variety is avail able during the period of the
shortage, the Member State shall consider with drawing the authori za tion or reducing its period of
validity, and shall inform the Com mis sion and the
other Member States of the meas ures it has taken
within 10 days of the date of receipt of the
information.
4(c) At the request of a Member State or at the
Commission’s initiative, the matter shall be
submitted for examination to the Committee
referred to in Article 14. It may be decided, in
accordance with the procedure laid down In Article
14, that the authorization shall be withdrawn or its
period of validity amended.
28
Article 7
1.
Products not authorized at the date of adoption of
this Regulation for a purpose indicated in Article 6 (1) (b)
may be included in Annex II, provided that the following
conditions are satisfied:
(a)
4.
Where a Member State considers that a product
should be added to Annex II or that amendments should
be made thereto, it shall ensure that a dossier giving the
reasons for the inclusion or the amendments is sent
officially to the other Member States and the Commission,
which shall introduce it to the committee referred to in
Article 14.
if they are used for the purpose of plant pest or
disease control:
- they are essential for the control of a harmful
organism or a particular disease for which other
biological, cultural, physical or plant breeding
alternatives are not available, and
- the conditions for their use preclude any direct
contact with the seed, the crop or crop products;
however, in the case of perennial crops, direct
contact may take place, but only outside the
growing season of the edible parts (fruits)
provided that such application does not indirectly
result in the presence of residues of the product in
the edible parts, and
- their use does not result in, or contribute to,
unacceptable effects on, or contamination of, the
environment;
(b)
if they are used for fertilization or soil-conditioning
purposes:
- they are essential for specific nutrition
requirements of crops or specific soil-conditioning
purposes which cannot be satisfied by the
practices mentioned in Annex I, and
- their use does not result in unacceptable effects
on the environment or contribute to the
contamination thereof.
1(a) The conditions provided for in paragraph 1 shall
not apply to products which were in common use before
the adoption of this Regulation according to the codes of
practice on organic farming followed in the Community.
2.
If need be, the following may be specified for any
product included in Annex II:
- the detailed description of the product,
- the conditions of its use and compositional and/or
solubility requirements, with regard in particular to
the need to ensure for these products a minimal
presence of residues on edible parts of the crop
and on edible crop products as well as a minimum
effect on the environment,
- particular labelling requirements for products
referred to in Article 1 where such products are
obtained with the aid of certain products referred
to in Annex II.
3.
Amendments to Annex II, concerning either
inclusion or cancelling of products as referred to in
paragraph 1 or inclusion or amendments of specifications
as referred to in paragraph 2, shall be adopted by the
Commission in accordance with the procedure laid down
in Article 14.
Inspection system
Article 8
1.
Any operator who produces, prepares or imports
from a third country products as specified in Article 1 for
the purpose of marketing them shall:
(a)
notify this activity to the competent authority of the
Member State in which the activity is carried out;
such notification shall include the information
specified in Annex IV;
(b)
submit his undertaking to the inspection system
referred to in Article 9.
2.
Member States shall designate an authority or body
for the reception of notifications.
Member States may provide for the communication of any
additional information which they consider to be necessary
for effective supervision of the operators concerned.
3.
The competent authority shall ensure that an
updated list containing the names and addresses of
operators subject to the inspection system is made
available to interested parties.
Article 9
1.
Member States shall set up an inspection system
operated by one or more designated inspection authorities
and/or by approved private bodies to which the operators
producing, preparing or importing from third countries
products as referred to in Article 1 shall be subject.
2.
Member States shall adopt the measures necessary
to ensure that an operator who complies with the
provisions of this Regulation and pays his contribution to
inspection expenses has access to the inspection system.
3.
The inspection system shall comprise at least the
application of the precautionary and inspection measures
specified in Annex III.
4.
For the application of the inspection system
operated by private bodies, Member States shall
designate an authority responsible for the approval and
supervision of such bodies.
5.
For the approval of a private inspection body, the
following shall be taken into account:
(a)
the standard inspection procedure to be followed,
containing a detailed description of the inspection
measures and precautions which the body
undertakes to impose on operators subject to its
inspection;
(b)
the penalties which the body intends to apply where
irregularities and/or infringements are found;
(c)
the availability of appropriate resources in the form
of qualified staff, administrative and technical
facilities, inspection experience and reliability;
(d)
29
9.
The inspection authority and inspection bodies
referred to in paragraph 1 shall:
(a)
ensure that, where an irregularity is found regarding
the implementation of Articles 5 and 6 or of the
measures referred to in Annex III, the indications
provided for in Article 2 referring to the organic
production method are removed from the entire lot or
production run affected by the irregularity
concerned;
(b)
where a manifest infringement, or an infringement
with prolonged effects is found, prohibit the operator
concerned from marketing products with indications
referring to the organic production method for a
period to be agreed with the competent authority of
the Member State.
the objectivity of the inspection body vis-à-vis the
operators subject to its inspection.
6.
After an inspection body has been approved, the
competent authority shall:
(a)
ensure that the inspections carried out by the
inspection body are objective;
(b)
verify the effectiveness of its inspections;
(c)
take cognizance of any irregularities and/or
infringements found and penalties applied;
(d)
withdraw approval of the inspection body where it
fails to satisfy the requirements referred to in (a) and
(b) or no longer fulfils the criteria indicated in
paragraph 5 or fails to satisfy the requirements laid
down in paragraphs 7, 8, 9 and 11 .
6(a) Before 1 January 1996, Member States shall issue a
code number to each inspection body or authority
approved or designated in accordance with the
provisions of this Article. They shall inform the other
Member States and the Commission thereof; the
Commission shall publish the code numbers in the list
referred to in the last subparagraph of Article 15.
10. The following may be adopted in accordance with
the procedure laid down in Article 14:
(a)
detailed rules concerning the requirements indicated
in paragraph 5 and the measures listed in
paragraph 6;
(b)
implementation measures concerning the provisions
of paragraph 9.
11. As from 1 January 1998 and without prejudice to
the provisions of paragraphs 5 and 6, approved
inspection bodies must satisfy the requirements laid
down in the conditions of standard EN 45011 of 26 June
1989.
Indication that products are covered by
the inspection scheme
Article 10
7.
The inspection authority and the approved
inspection bodies referred to in paragraph 1 shall:
(a)
ensure that at least the inspection measures and
precautions specified in Annex III are applied to
undertakings subject to their inspection;
(b)
not disclose information and data they obtain in their
inspection activity to persons other than the person
responsible for the undertaking concerned and the
competent public authorities.
8.
Approved inspection bodies shall:
(a)
give the competent authority, for inspection
purposes, access to their offices and facilities,
together with any information and assistance
deemed necessary by the competent authority for
the fulfilment of its obligations pursuant to this
Regulation;
(b)
send to the competent authority of the Member State
by 31 January each year a list of operators subject to
their inspection on 31 December of the previous
year and present to the said authority a concise
annual report.
1.
The indication and/or the logo shown in Annex V
indicating that products are covered by the specific
inspection scheme, may appear on the labelling of
products as referred to in Article 1 only where such
products:
(a)
satisfy the requirements of Article 5 (1) or (3);
(b)
have been subject to the inspection arrangements
referred to in Article 9 throughout the production and
preparation process;
(c)
are sold directly by the producer or preparer to the
ultimate consumer in sealed packaging, or placed
on the market as pre-packaged foodstuffs; in the
case of direct sales by the producer or preparer to
the ultimate consumer, the sealed packaging is not
required when the labelling enables the product
requiring this indication to be identified clearly and
unambiguously;
(d)
show on the labelling the name and/or business
name of the producer, preparer or vendor together
with the name or code number of the inspection
30
authority or body, and any indication required in
with the procedure laid down in Article 14 and were
produced in a region or a production unit and under
the inspection of an inspection body specified,
where appropriate, in the decision concerning the
third country in question;
accordance with the provisions of the regulations on
the labelling of foodstuffs, in accordance with
Community legislation.
2.
No claim may be made on the label or advertising
material that suggests to the purchaser that the indication
shown in Annex V constitutes a guarantee of superior
organoleptic, nutritional or salubrious quality.
(b)
3.
The inspection authority and inspection bodies
referred to in Article 9 (1) must:
(a)
(b)
ensure that, where an irregularity is found under
Articles 5 and 6 or the measures referred to in Annex
III, the indication shown in Annex V is removed from
the entire lot or production run affected by the
irregularity concerned;
where a manifest infringement, or an infringement
with prolonged effects, is found, withdraw from the
operator concerned the right to use the indication
shown in Annex V for a period to be agreed with the
competent authority of the Member State.
4.
Rules on withdrawal of the indication shown in
Annex V where certain infringements of Articles 5, 6 and 7
or of the requirements and measures in Annex III are
detected may be adopted in accordance with the
procedure laid down in Article 14.
General enforcement measures
Article 10a
1.
Where a Member State finds irregularities or
infringements relating to the application of this Regulation
in a product coming from another Member State and
bearing indications as referred to in Article 2 and/or Annex
V it shall inform the Member State which designated the
inspection authority or approved the inspection body and
the Commission thereby.
2.
Member States shall take whatever measures and
action are required to prevent fraudulent use of the
indications referred to in Article 2 and/or Annex V.
Imports from third countries
Article 11
1.
Without prejudice to Article 5, products as specified
in Article 1 which are imported from a third country may be
marketed only where:
- was obtained within a system of production
applying rules equivalent to those laid down in
Article 6, and
- was subject to a system of inspection recognized
as equivalent in accordance with paragraph 2 (b).
2.
For the purpose of deciding whether, for certain
products as specified in Article 1, a third country may at its
request be included in the list referred to in paragraph 1
(a), the following shall be taken into account in particular:
(a)
the guarantees which the third country can offer, at
least in respect of production for export to the
Community, as regards the application of rules
equivalent to those laid down in Article 6;
(b)
the effectiveness of the inspection measures
applied, which, at least in respect of production for
export to the Community, must be equivalent to the
inspection measures referred to in Articles 8 and 9 to
ensure compliance with the rules referred to in (a).
On the basis of this information, the regions or production
units of origin, or the bodies whose inspections are
deemed to be equivalent, may be specified in the
Commission decision.
3.
The certificate referred to in paragraph 1 (b) must:
(a)
accompany the goods, in the original copy, to the
premises of the first consignee; thereafter the
importer must keep the certificate at the disposal of
the inspection body and/or inspection authority for
not less than two years;
(b)
be drawn up in accordance with procedures and a
model to be adopted in accordance with the
procedure laid down in Article 14.
4.
Detailed rules for the implementation of this Article
may be determined according to the procedure referred to
in Article 14.
5.
When examining a request from a third country, the
Commission shall require it to supply all the necessary
information; it may also entrust experts with the task of
carrying out, under its authority, an on-the-spot
examination of the rules of production and inspection
measures actually applied in the third country in question.
6.
(a)
(a)
they originate in a third country appearing in a list to
be drawn up by Commission decision in accordance
the competent authority or body in the third country
has issued a certificate of inspection stating that the
lot designated in the certificate:
By way of derogation from paragraph 1, the
importer(s) in a Member State shall be authorized by
the competent authority of the Member State to
market until 31 December 2002, products imported
from a third country not included in the list referred to
in paragraph 1 (a) provided the importer(s)
furnish(es) the competent authority of the importing
Member State with sufficient evidence that the
imported products were manufactured according to
production rules equivalent to those laid down in
Article 6 and were subject to inspection measures of
equivalent effectiveness to those referred to in
Articles 8 and 9, and that such inspection measures
will be permanently and effectively applied.
Member States may not, on grounds relating to the
method of production, to labelling or to the presentation of
that method, prohibit or restrict the marketing of products
as specified in Article 1 that meet the requirements of this
Regulation.
Such authorization shall be valid only as long as the
above-mentioned conditions are shown to be
satisfied. It shall expire from the time of the decision
Administrative provisions and implementation
to include a third country in the list referred to in
paragraph 1 (a), unless it concerns a product which
was produced in a region not specified in the
decision referred to in paragraph 1 (a), and which
was not examined in the framework of the request
submitted by the third country, and only where that
third country has agreed to the continuation of the
authorization arrangements provided for in this
paragraph.
(b)
(c)
(d)
31
Where a Member State has received sufficient
evidence from an importer, it shall forthwith notify to
the Commission and the other Member States the
third country from which products are imported and
supply detailed information on the production and
inspection arrangements and the guarantees that
they will be permanently and effectively applied.
At the request of a Member State or at the
Commission’s initiative, the matter shall be
submitted to the Committee referred to in Article 14
for examination. Should it emerge from this
examination that the imported products were not
manufactured according to equivalent production
rules and/or inspection measures of equivalent
effectiveness, the Commission shall request the
Member State which granted the authorization to
withdraw it. It may be decided, in accordance with
the procedure laid down in Article 14, that the
imports in question shall be prohibited or that their
continuation subject to certain of the import
conditions being amended within a given period.
The notification referred to in (b) shall not be
required where it concerns production and
inspection arrangements already notified by another
Member State, pursuant to (b), unless significant
new evidence is submitted justifying a review of the
examination and decision referred to in (c).
Before 31 July 1994, the Commission shall
reexamine the provisions of paragraph 1 and submit
any appropriate proposals for its review.
7.
The Commission may, in accordance with the
procedure laid down in Article 14 at the request of a
Member State, approve a third country’s inspection body
which has previously been assessed by the Member
State concerned and add it to the list referred to in
paragraph 1 (a). The Commission shall forward the
request to the third country concerned.
Free movement within the Community
Article 12
Article 13
The following may be adopted in accordance with the
procedure laid down in Article 14:
- detailed rules for applying this Regulation,
- amendments to Annexes I, II, III, IV and VI,
- amendments to Annex V in order to define a
Community logo to accompany or replace the
indication that products are covered by the
inspection scheme.
Article 14
The Commission shall be assisted by a committee
composed of representatives of the Member States and
chaired by the representative of the Commission.
Where the procedure laid down in this Article is to be
followed, the representative of the Commission shall
submit to the committee a draft of the measures to be
taken.
The Committee shall deliver its opinion on the draft, within
a time limit which the chairman may lay down according to
the urgency of the matter. The opinion shall be delivered
by the majority laid down in Article 148 (2) of the Treaty.
The votes of the representatives of the Member States
within the committee shall be weighted in the manner set
out in that Article. The chairman shall not vote.
The Commission shall adopt the measures envisaged if
they are in accordance with the opinion of the committee.
If the measures envisaged are not in accordance with the
opinion of the committee, or if no opinion is delivered, the
Commission shall, without delay, submit to the Council a
proposal relating to the measures to be taken. The Council
shall act by a qualified majority.
If, on the expiry of a period of three months from the date of
referral to it the Council has not acted, the proposed
measures shall be adopted by the Commission.
32
Article 15
3.
Article 5, Article 8 (1) and Article 11 (1) shall apply
from 1 January 1993.
Before 1 July each year, Member States shall inform the
Commission of measures taken in the preceding year for
the implementation of this Regulation and shall
communicate in particular:
In accordance with the procedure laid down in Article 14,
the date of application of Article 11 (1) may be deferred for
a specified period for imports from a third country where,
following a request by the third country, the stage reached
in examining the matter does not permit a decision
regarding the inclusion of the country concerned in the list
provided for in Article 11 (1) (a) before expiry of the period
referred to in the first subparagraph.
- a list of the operators who, on 31 December of the
previous year, had given notification under Article
8 (1) (a) and are subject to the inspection system
referred to in Article 9,
- a report on supervision pursuant to Article 9 (6).
In addition, by 31 March each year, Member States shall
inform the Commission of the list of inspection bodies
approved on 31 December of the previous year, their legal
and operational structure, their standard inspection
procedure, their penalty arrangements and, where
appropriate, their mark.
The Commission shall each year publish, in the ‘C’ series
of the Official Journal of the European Communities, the
lists of approved bodies notified to it within the deadlines
laid down in the foregoing subparagraph.
Article 16
1.
This Regulation shall enter into force on the day of its
publication in the Official Journal of the European
Communities.
2.
Within nine months of the entry into force of this
Regulation, Member States shall implement Articles 8
and 9.
For the purposes of complying with the conversion period
referred to in paragraph 1 of Annex I, the period which has
elapsed before the entry into force of this Regulation shall
be taken into account where the operator can demonstrate
to the satisfaction of the inspection body that during that
period he was producing in accordance with the national
provisions in force or, failing that, with the recognized
international standards for organic production.
4.
For 12 months following the entry into force of this
Regulation, Member States may, by way of derogation
from Article 6 (1), authorize the use in the territory of
products containing substances not listed in Annex II,
where they consider that the requirements of Article 7 (1)
are satisfied.
5.
For a period expiring 12 months after the
establishment of Annex VI in accordance with Article 5 (7),
Member States may continue to authorize, in accordance
with their national provisions, the use of substances not
listed in the said Annex VI.
6.
Each Member State shall inform the other Member
States and the Commission of substances authorized
pursuant to paragraphs 4 and 5.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done in Luxembourg, 24 June 1991
For the Council
The President
J. C. JUNCKER
33
ANNEX I
PRINCIPLES OF ORGANIC PRODUCTION AT FARM LEVEL
Plants and plant products
1.
The principles set out in this Annex must normally
have been applied on the parcels during a conversion
period of at least two years before sowing or, in the case of
perennial crops other than grassland, at least three years
before the first harvest of products as referred to in Article
1 (1) (a). The inspection body may, with the approval of the
competent authority, decide, in certain cases, to extend or
reduce that period, having regard to previous parcel use.
In particular, the conversion period may be reduced to the
strict minimum by a Member State in situations where the
parcels have been treated with a product not included in
Annex II, part B as part of a pest or disease control scheme
made mandatory by the competent authority of the
Member State on its territory or on certain parts of its
territory in respect of a specific crop.
the crop being rotated or soil conditioning are not possible
by the methods set out under (a) and (b) of the preceding
subparagraph.
For compost activation, appropriate micro-organism or
plant-based preparations may be used.
So-called “biodynamic preparations” from stone meal,
farmyard manure or plants may also be used for the
purposes covered by this paragraph.
3.
Pests, diseases and weeds shall be controlled by a
combination of the following measures:
– choice of appropriate species and varieties,
– appropriate rotation programme,
– mechanical cultivation procedures,
The reduction in the conversion period must take account
of all the following points:
– the parcels were already converted or
undergoing conversion to organic farming,
were
– protection of natural enemies of pests through
provisions favourable to them (e.g. hedges, nesting
sites, release of predators),
– flame weeding.
– the degradation of the plant protection product
concerned must result in an insignificant level of
residue in the soil and, where the latter is a perennial
crop, in the crop,
– the Member State concerned must notify the other
Member States of its decision concerning the
obligation of treatment and also the level of the
reduction decided for the conversion period,
– products of the harvest following treatment may not be
sold bearing an indication referring to organic
production.
2.
The fertility and the biological activity of the soil must
be maintained or increased, where appropriate, by:
Only in cases of immediate threat to the crop may
recourse be had to products referred to in Annex II.
4.
The collection of edible plants and parts thereof,
growing naturally in natural areas, forests and agricultural
areas, is considered an organic production method
provided that:
– those areas have received no treatments with products
other than those referred to in Annex II for a period of
three years before the collection.
– the collection does not affect the stability of the natural
habitat or the maintenance of the species in the
collection area.
(a)
cultivation of legumes, green manures or
deep-rooting plants in an appropriate multiannual
rotation programme;
*5. For production of mushrooms, substrates may be
used, if they are composed only of the following
components:
(b)
incorporation in the soil of organic material,
composted or not, from holdings producing
according to the rules of this Regu la tion. Pending
the adop tion of common tech nical rules con cerning
organic livestock, production, by-products from
live stock farming, such as farm yard manure, may be
used if they come from live stock hold ings respecting
existing national rules or, in the absence thereof,
internationally recognized practices concerning
organic live stock pro duc tion.
5.1 farmyard manure and animal excrements (including
the products referred to in indents 1 to 4 of Annex II, Part A
to Regulation (EEC) No 2092/91):
Other organic or mineral fertilizers, mentioned in Annex II,
may be applied only to the extent that adequate nutrition of
(a)
either from holdings producing according to the
organic production methods;
(b)
or satisfying the requirements referred to in Annex II,
Part A, indents I to 4, of Regulation (EEC) No
2092/91, only up to 25% (*), and only when the
product under 5.1 (a) is not available;
34
5.2 products of agricultural origin, other than
those covered under point 5.1 (e.g. straw), from
holdings producing according to organic production
methods;
(*) This percentage is calculated on weight of total
components of the substrate (excluding the covering
material and any added water) before composting.
Animals and animal products
5.3
peat not chemically treated,
5.4 wood, not treated with chemical products after
felling;
5.5 mineral products of Annex II, Part A to Regulation
(EEC) No 2092/91, water and soil.
Pending the adoption of the proposal referred to in Article 1
(2), and for the purpose of preparation of ingredients
referred to in Article 5 (3) (a), animals shall be raised in
accordance with the existing national rules, or in the
absence thereof, internationally recognized practices
concerning organic livestock production.
__________________________________
*This provision shall enter into force on 1 December 1998.
By derogation to the provisions under points 5.1 and 5.2 of Annex I, the following may be used during a transitional period expiring on
1 December 2001:
–
products referred to in point 5.1 (a) of the Annex, not from holdings producing according to the organic production method but satisfying
the requirements referred to in Annex II, Part A, indents 1 to 4 of Regulation (EEC) No 2092/91,
–
and/or products referred to in point 5.2 of the Annex, not from holdings producing according to the organic production method, but
satisfying, where relevant, the requirements referred to in Annex II, Part A of Regulation (EEC) No 2092/91,
if the products referred to in points 5.1 (a) and 5.2 are not available from holdings producing according to the organic production method
and the need is recognized by the inspection authority or body.
In such cases, the labelling and advertising shall contain a statement, with the wording ‘Mushrooms cultivated on a substrate from
extensive agriculture which is permitted in organic farming during a transitional period’. The word ‘organic’ in this statement, elsewhere on
the label and/or on the advertising, shall not be more prominent than the other words of the statement. (Text taken from Article 2 of
Commission Regulation 1900/98 of 4 September 1998 - OJ L247/6 of 5/9/98)
35
ANNEX II
A. FERTILIZERS AND SOIL CONDITIONERS
General conditions for all the products:
– use in accordance with provisions of Annex I,
– use only in accordance with the provisions of fertilizer legislation applicable within each Member State.
Products authorized exceptionally for use in soil conditioning and fertilization, in accordance with the
dispositions of Annex I (2)
Name
Description, compositional requirements, conditions for use
Compound products or products containing only
materials listed hereunder:
- Farmyard manure
Product comprising a mixture of animal excrements and
vegetable matter (animal bedding)
Need recognized by the inspection body or inspection authority
Indication of animal species
Coming from extensive husbandry and only in the sense of
Article 6 (5) of Council Regulation (EEC) No 2328/91, as last
amended by Regulation (EC) No 3669/93
- Dried farmyard manure and dehydrated poultry
manure
Coming from extensive husbandry and only in the sense of
Article 6 (5) of Regulation (EEC) No 2328/91.
- Composted animal excrements, including;
poultry manure and composted farmyard;
manure included
- Liquid animal excrements (slurry, urine, etc.)
Use after controlled fermentation and/or appropriate dilution
Indication of the animal species
Factory farming origin forbidden
Factory farming origin forbidden
- Composted household waste
Compost of source separated household waste;
only vegetable and animal waste;
produced in a closed and monitored collection system, accepted
by the Member State;
maximum concentrations in mg/kg of dry matter: Cadmium: 0,7;
Copper: 70; Nickel: 25; Lead: 45; Zinc: 200; Mercury: 0,4;
Chromium (total): 70; Chromium (VI): 0 (*)
only during a period expiring on 31 March 2002;
need recognized by the inspection body or inspection authority.
- Peat
- Clays (e.g. perlite, vermiculite, etc.)
__________________________________
(*) Limit of determination
Use limited to horticulture (market gardening, floriculture,
arboriculture, nursery)
36
Name
- Mushroom culture wastes
The initial composition of the substrate must be limited to
products of the present list
- Dejecta of worms (vermicompost) and insects
- Guano
- Composted mixture of vegetable matter
- Products or by-products of animal origin as
below:
- blood meal
- hoof meal
- horn meal
- bone meal or degelatinized bone meal
- animal charcoal
- fish meal
- meat meal
- feather, hair and “chiquette” meal
- wool
- fur
- hair
- dairy products
maximum concentration in mg/kg of dry matter of Chromium (VI):
0 (*)
- Products and by-products of plant origin for
fertilizers (for instance, oil-seed cake meal,
cocoa husks, malt culms, etc.)
- Seaweeds and seaweeds products
As far as directly obtained by:
(i) physical processes including dehydration, freezing and;
grinding;
(ii) extraction with water or aqueous acid and/or alkaline solution;
(iii) fermentation;
need recognized by the inspection body or inspection authority
- Sawdust and wood chips
Wood not chemically treated after felling
- Composted bark
Wood not chemically treated after felling
- Wood ash
From wood not chemically treated after felling
- Soft ground rock phosphate
Product as specified by Council Directive 76/116/EEC, as last
amended by Directive 89/284/EEC
Cadmium content less than or equal to 90 mg/kg of P205
- Aluminium calcium phosphate
Product as specified by Directive 76/116/EEC, as last amended
by Directive 89/284/EEC;
Cadmium content less than or equal to 90 mg/kg of P205
Use limited to basic soils (pH > 7.5)
- Basic slag
- Crude potassium salt
(for instance: kainit, sylvinite, etc.)
- Potassium sulphate containing magnesium salt
Derived from crude potassium salt
- Stillage and stillage extract
__________________________________
(*) Limit of determination.
Ammonium stillage excluded
37
Name
- Calcium carbonate of natural origin
(for instance: chalk, mart, ground limestone,
Breton ameliorant (maërl), phosphate chalk)
-
- Magnesium and calcium carbonate of natural
origin (for instance: magnesian chalk, ground
magnesium limestone, etc.)
Only of natural origin
- Magnesium sulphate (for instance: kieserite)
-
- Calcium chloride solution
Foliar treatment of apple trees, after identification of deficit of
calcium
- Calcium sulphate (gypsum)
Product as specified by Directive 76/116/EEC, as amended by
Directive 89/284/EEC
Only of natural origin
- Industrial lime from sugar production
Need recognized by the inspection authority or inspection body;
only during a period expiring on 31 March 2002.
- Elemental sulphur
Product as specified by Directive 76/116/EEC, as amended by
Directive 89/284/EEC
- Trace elements
Trace elements included in Directive 89/530/EEC
- Sodium chloride
Only mined salt
- Stone meal
B. PRODUCTS FOR PLANT PROTECTION
General conditions applicable for all the products composed or containing the following active substances:
– use in accordance with provisions of Annex I,
– only in accordance with the specific provisions of the plant protection product legislation applicable within
the Member State where the product is used (where relevant (*)).
I. Substances of crop or animal origin
Name
Azadirachtin extracted from Azadirachta indica.
(Neem tree)
Insecticide;
(*) Beeswax
Pruning agent
Gelatine
Insecticide
(*) Hydrolysed proteins
Attractant;
Only to be used on mother plants for the production of seeds and
on parent plants for the production of other vegetative
reproductive material, and on ornamental crops.
Only in authorized applications in combination with other
appropriate products of this Annex II, part B.
__________________________________
(*) In certain Member States the products marked with (*) are not considered as plant protection products and are not subject to the
provisions of the plant protection products legislation.
38
Name
Lecithin
Fungicide
Extract (aqueous solution) from Nicotiana
tabacum
Insecticide;
Only against aphids in subtropical fruit trees (e.g. oranges,
lemons) and tropical crops (e.g. bananas); use only at the start of
the vegetation period;
Need recognized by the inspection body or inspection authority;
Only during a period expiring 31 March 2002.
Plant oils (e.g. mint oil, pine oil, caraway oil)
Insecticide, acaricide, fungicide and sprout inhibitor
Pyrethrins extracted from Chrysanthemum
cinerariaefolium.
Insecticide
Quassia extracted from Quassia amara.
Insecticide, repellent
Rotenone extracted from Derris spp. and
Lonchocarpus spp. and Terphrosia spp.
Insecticide;
II.
Microorganisms used for biological pest control
Name
Microorganisms (bacteria, viruses and fungi) e.g.
Bacillus thuringensis, Granulosis virus, etc.
Ill.
Need recognized by the inspection body or inspection authority.
Only products not genetically modified in the meaning of
Directive 90/220/EEC (1).
Substances to be used in traps and/or dispensers
General conditions:
- the traps and/or dispensers must prevent the penetration of the substances in the environment and prevent contact
of the substances with the crops under cultivation.
- the traps must be collected after use and disposed of safely
Name
(*) Diammonium phosphate
Attractant;
Only in traps
Metaldehyde
Molluscicide;
Only in traps containing a repellent to higher animal species;
Only during a period expiring 31 March 2002.
Pheromones
Insecticide, attractant;
In traps and dispensers
Pyrethroids (only deltamethrin or
lambdacyhalothrin)
Insecticide;
Only in traps with specific attractants;
Only against Batrocera oleae and Ceratitis capitata wied;
Need recognized by the inspection body or inspection authority;
Only during a period expiring on 31 March 2002.
__________________________________
(1) OJ No L117, 8.5.1990, p.15.
39
Name
IV.Other substances from traditional use in organic farming
Name
Copper in the form of copper hydroxide, copper
oxychloride, (tribasic) copper sulphate, cuprous
oxide
Fungicide;
(*) Ethylene
Degreening bananas
Fatty acid potassium salt (soft soap)
Insecticide
(*) Potassium alum (Kalinite)
Prevention of ripening of bananas
Lime sulphur (Calcium polysulphide)
Fungicide, insecticide, acaricide;only for winter treatments in fruit
trees, olive trees and vines
Paraffin oil
Insecticide, acaricide
Mineral oils
Insecticide, fungicide;
only during a period expiring on 31 March 2002;
need recognized by the inspection body or inspection authority
Only in fruit trees, vines, olive trees and tropical crops (e.g.
bananas);
Only during a period expiring on 31 March 2002;
Potassium permanganate
Fungicide, bactericide;
only in fruit trees, olive trees and vines
(*) Quartz sand
Repellent
Sulphur
Fungicide, acaricide, repellent
C. OTHER PRODUCTS
__________________________________
40
ANNEX III
MINIMUM INSPECTION REQUIREMENTS AND PRECAUTIONARY MEASURES UNDER THE INSPECTION
SCHEME REFERRED TO IN ARTICLES 8 AND 9
A. Plants and plant products from farm production or
collection
1 . Production must take place in a unit the land parcels
and production and storage locations of which are clearly
separate from those of any other unit not producing in
accordance with the rules laid down in this Regulation;
processing and/or packaging workshops may form part of
the unit, where its activity is limited to processing and
packaging of its own agricultural produce.
2.
When the inspection arrangements are first
implemented, the producer, even where his activity is
limited to the collection of wild plants, and the inspection
body must draw up:
–
–
–
a full description of the unit, showing the storage and
production premises and land parcels and/or
collection areas and, where applicable, premises
where certain processing and/or packaging
operations take place,
all the practical measures to be taken by the
producer at unit-level to ensure compliance with the
provisions of this Regulation,
and, in case of col lec tion of wild plants, the guar antees given by third par ties, if appro priate where relevant which the pro ducer can pro vide to ensure that
the pro vi sions of Annex I, point 4 are sat is fied.
The description and the measures concerned must be
contained in an inspection report countersigned by the
producer concerned.
Where the unit processes its own agricultural produce, the
accounts must contain the information as referred to in
Point B.2. third hyphen of this Annex.
5.
Storage, in the unit, of input products other than
those the use of which is compatible with Articles 6 (1) (b)
and 7 is prohibited.
6.
Apart from unannounced inspection visits, the
inspection body must make a full physical inspection, at
least once a year, of the unit. Samples for testing of
products not authorized under this Regulation may be
taken. However, such samples must be taken where the
use of unauthorized products is suspected. An inspection
report must be drawn up after each visit, countersigned by
the responsible person of the unit.
7.
The producer must give the inspection body, for
inspection purposes, access to the storage and production
premises and to the parcels of land, as well as to the
accounts and relevant supporting documents. He must
provide the inspection body with any information deemed
necessary for the purposes of the inspection.
8.1 Products as referred to in Article 1 may be
transported to other units, including wholesalers and
retailers, only in appropriate packaging or containers
closed in a manner preventing substitution of the content
and provided with a label stating, without prejudice to any
other indications required by law:
(a)
the date of the last application on the parcels and/or
collection areas concerned of products the use of
which is not compatible with Article 6 (1) (b),
the name and address of the person responsible
for the production or preparation of the product, or,
where another seller is mentioned, a statement
which enables the receiving unit and the inspection
body to identify unequivocally the person
responsible for the production of the product;
(b)
an undertaking by the producer to carry out
operations in accordance with Articles 5 and 6 and to
accept, in the event of infringement, enforcement of
the measures referred to in Article 9 (9) and, where
relevant, in Article 10 (3).
the name of the product, in cluding a ref er ence to the
organic production method, in accordance with
Ar ticle 5.
8.2 However, the closing of packaging or containers is
not required where:
In addition, the report must specify:
–
–
(a)
3.
Each year, before the date indicated by the
inspection body, the producer must notify the body of its
schedule of production of crop products, giving a
breakdown by parcel.
transportation is between a producer and another
operator who are both subject to the inspection
system referred to in Article 9, and
(b)
4.
Written and/or documentary accounts must be kept
which enable the inspection body to trace the origin,
nature and quantities of all raw materials bought, and the
use of such materials; in addition, written or documentary
accounts must be kept of the nature, quantities and
consignees of all agricultural products sold. Quantities
sold directly to the final consumer shall be accounted on a
daily basis.
the products are accompanied by a document giving
the information required under the previous
subparagraph.
Where an operator runs several production units in the
same area, units in the area producing crops or crop
products not covered by Article 1 together with storage
premises for input products (such as fertilizers, plant
protection products, seed) must also be subject to the
inspec tion arrange ments as regards the first sub para graph
of point 2 and points 3 and 4. Crops of the same variety as
those pro duced at the unit referred to in point 1 may not be
pro duced at these units.
However, producers may derogate from the rule referred
to in the last sentence of the preceding subparagraph:
(a)
in the case of the production of perennial crop
products (fruit growing, vines and hops) provided the
following conditions are met:
1.
2.
the pro duc tion in ques tion forms part of a conversion plan in respect of which the producer
gives a firm under taking and which pro vides for
the begin ning of the con ver sion of the last part
of the area con cerned to organic pro duc tion in
the shortest pos sible period which may not in
any event exceed a maximum of five years,
appropriate measures have been taken to
ensure the permanent separation of the
products obtained from each unit concerned,
3.
the inspection body or authority is notified of the
harvest of each of the products concerned at
least 48 hours in advance,
4.
imme di ately upon com ple tion of the har vest, the
producer informs the inspection body or
authority of the exact quantities harvested on
the units con cerned together with any par ticular
dis tin guishing fea tures (such as quality, colour,
average weight, etc.) and confirms that the
meas ures taken to sepa rate the prod ucts have
been applied,
5.
the conversion plan and the measures referred
to in points 1 and 2 have been approved by the
inspection body or authority. This approval must
be confirmed each year after the start of the
conversion plan;
(b)
in the case of areas intended for agricultural research
agreed by the Member States’ competent authorities,
provided that conditions 2, 3 and 4 and the relevant
part of condition 5 referred to in (a) are met;
(c)
in the case of production of seed, vegetative
propagating material and transplants, provided that
conditions 2, 3 and 4 and the relevant part of
condition 5 referred to in (a) are met.
B.
Processing and packaging units for plant
products and foodstuffs composed essentially of
plant products
1.
When the inspection arrangements are first
implemented, the producer and inspection body must
draw up:
-
a full description of the unit, showing the facilities
used for the processing, packaging and storage of
agricultural products before and after the operations
concerning them,
41
-
all the practical measures to be taken at the level of
the unit to ensure compliance with this Regulation.
This description and the measures concerned must be
contained in an inspection report, countersigned by the
responsible person of the unit.
In addition, the report must include an undertaking by the
operator to perform the operations in such a way as to
comply with Article 5 and to accept, in the event of
infringement, the enforcement of the measures referred to
in Article 9 (9) and, where relevant, in Article 10 (3).
2.
Written accounts must be kept enabling the
inspection body to trace:
-
the origin, nature and quantities of agricultural
products as referred to in Article 1 which have been
delivered to the unit,
-
the nature, quantities and consignees of products as
referred to in Article 1 which have left the unit,
-
any other infor ma tion, such as the origin, nature and
quantities of ingredients, additives and manu facturing aids deliv ered to the unit and the com po si tion
of processed products, that is required by the
inspection body for the pur poses of proper inspec tion of the opera tions.
3.
Where products not referred to in Article 1 are also
processed, packaged or stored in the unit concerned:
-
the unit must have separate areas within the
premises for the storage of products as referred to in
Article 1, before and after the operations,
-
operations must be carried out continuously until the
complete run has been dealt with, separated by
place or time from similar operations performed on
products not covered by Article 1,
-
if such operations are not carried out frequently, they
must be announced in advance, with a deadline
agreed on with the inspection body,
-
every measure must be taken to ensure
identification of lots and to avoid mixtures with
products not obtained in accordance with the rules
laid down in this Regulation.
4.
least once a year, of the unit. Samples for testing of
products not authorized under this Regulation may be
taken. However, they must be taken where the use of
unauthorized products is suspected. An inspection report
must be drawn up after each visit countersigned by the
person responsible for the unit inspected.
5.
The operator must give the inspection body, for
inspection purposes, access to the unit and to the written
accounts and relevant supporting documents. He must
provide the inspection body with any information
necessary for the purposes of the inspection.
42
6.
Products as referred to in Article 1 may be
transported to other units, including wholesalers and
retailers, only in appropriate packaging or containers
closed in a manner preventing substitution of the content
and provided with a label stating, without prejudice to any
other indications required by law:
(a)
(b)
the name and address of the person responsible for
the production or preparation of the product, or,
where another seller is mentioned, a statement
which enables the receiving unit and the inspection
body to identify unequivocally the person
responsible for the preparation of the product;
the name of the product, including a reference to the
organic production method according to the relevant
provisions of Article 5.
On receipt of a product as referred to in Article 1, the
operator shall check the closing of the packaging or
container where it is required and the presence of the
indications referred to in the previous paragraph, in point
A.8.1 or in point C.8. The result of this verification shall be
explicitly mentioned in the accounts referred to in point
B.2. Where the check leaves any doubt that the product
concerned came from an operator subject to the
inspection system provided for in Article 9, it may only be
put into processing or packaging after elimination of that
doubt, unless it is placed on the market without indication
referring to the organic production method.
2.
Written accounts must be kept enabling the
inspection body to trace for each lot of products referred to
in Article 1, imported from a third country:
-
the origin, nature and quantity of the lot concerned,
and on request by the inspection body, any details
on the transport arrangement from the exporter in
the third country to the importer’s premises or
storage facilities;
-
the nature, quantities and consignees of the lot
concerned, and on request by the inspection body,
and details on the transport arrangements from the
importer’s premises or storage facilities to the
consignees.
3.
The importer shall inform the inspection body of
each imported consignment into the Community, giving
any details this body or authority may require, such as a
copy of the inspection certificate for the importation of
organic products. When the products concerned are
circulating in a Member State or region other than the one
where the inspection body is approved for inspection, that
body may pass the information to a body, approved for
inspection in that Member State or region, for on-the-spot
inspection of the imported consignment.
4.
Where imported products referred to in Article 1 are
stored in storage facilities where also other agricultural
products or foodstuffs are processed, packaged or stored:
-
the products as referred to in Article 1 must be kept
separate from the other agricultural products and/or
foodstuffs;
-
every measure must be taken to ensure
identification of lots and to avoid mixtures with
products not obtained in accordance with the rules
laid down in this Regulation.
C.
Importers of plant products and foodstuffs
composed essentially of plant products from third
countries
1.
When the in spec tion ar range ments are first im plemented, the im porter and in spec tion body must draw up:
-
-
a full description of the importer’s premises and of
his import activities, indicating as far as possible the
points of entry of the products into the Community
and any other facilities the importer intends to use for
the storage of the imported products;
all the practical measures to be taken by the importer
to ensure compliance with this Regulation.
This description and the measures concerned must be
contained in an inspection report, countersigned by the
importer.
In addition, the report must include an undertaking by the
importer
-
to per form the import opera tions in such a way as to
comply with the provisions of Article 11 and to
accept, in the event of infringe ment, the enforce ment
of the meas ures referred to in Article 9 (9);
-
to ensure that any storage facilities that the importer
will use are open to inspection, to be carried out
either by the inspection body or, when these storage
facilities are situated in another Member State or
region, by an inspection body approved for
inspection in that Member State or region.
5.
least once a year, of the importer’s premises and, where
relevant, of a selection of the other storage facilities which
the importer uses.
The inspection body shall inspect the written accounts
mentioned in point C.2 and the certificates referred to in
Article 11 (1) (b) and (3). Samples for testing of substances
not authorized under this Regulation may be taken.
However, they must be taken where the use of
unauthorized substances is suspected. An inspection
report must be drawn up after each visit, countersigned by
the person responsible for the unit inspected.
6.
The importer must, for inspection purposes, give the
inspection body access to his premises and to the written
accounts and relevant supporting documents, in particular
any import certificates. He must provide the inspection
body with any information necessary for the purposes of
the inspection.
7.
Products as referred to in Article 1 shall be imported
from a third country in appropriate packaging or
containers, closed in a manner preventing substitution of
the content and provided with identification of the exporter
and with any other marks and numbers serving to identify
the lot with the inspection certificate.
On receipt of a product as referred to in Article 1, imported
from a third country, the operator shall check the closing of
the pack aging or con tainer and the cor re spon dence of the
identification of the lot with the certificate referred to in
Article 11 (1) (b) or a similar cer tifi cate where required by the
authori ties under any arrange ments adopted under Article
11 (6). The result of this veri fi ca tion shall be explic itly mentioned in the accounts referred to in point C.2. Where the
check leaves any doubt as to the origin of the product from a
third country or from an exporter in a third country not
accepted under Article 11, the product may be put on the
market, or proc essed or pack aged, only after such doubt
has been dis pelled, unless it is placed on the market without
indi ca tion of the organic pro duc tion method.
43
8.
Products referred to in Article 1 may be transported
to other units, including wholesalers and retailers, only in
appropriate packaging or containers closed in a manner
preventing substitution of the content and provided with a
label stating, without prejudice to any other indications
required by law:
(a)
the name and address of the importer of the product,
or a statement which enables the receiving unit and
the inspection body to identify unequivocally the
importer of the product;
(b)
the name of the product, including a reference to the
organic production method under Article 5.
44
ANNEX IV
INFORMATION TO BE NOTIFIED AS PROVIDED IN ARTICLE 8 (1) (a)
(a)
Name and address of operator
(b)
Location of premises and, where appropriate, parcels (land register data) where operations are carried out
(c)
Nature of operations and products
(d)
Undertaking by the operator to carry out the operations in accordance with Articles 5, 6, 7 and/or 11
(e) In the case of an agricultural holding, the date on which the producer ceased to apply products the use of which is not
compatible with Articles 6 (1) (6) and 7 on the parcels concerned
(f)
The name of the approved body to which the operator entrusted inspection of his undertaking, where the Member
State has implemented the inspection system by approving such bodies
ANNEX V
INDICATION THAT PRODUCTS ARE COVERED BY THE INSPECTION SCHEME
The indication that a product is covered by the inspection scheme must be shown in the same language or languages as
used for the labelling.
ES: Agricultura Biológica - Sistema de control CEE
DK: qkologisk Landbrug - EF Kontrolordning
D:
kologische Agrarwirtschaft - EWG-Kontrollsystem, or Biologische Agrarwirtschaft - EWG-Kontrollsystem
GR: $4@8@(4i0 'gCOD(4" − EL@J0:" +8,(P@L EOK
EN: Organic Farming - EEC Control System
F:
Agriculture biologique - Système de contrôle CEE
I:
Agricoltura Biologica - Regime di controllo CEE
NL: Biologische landbouw - EEG-controlesysteem
P:
Agricultura Biológica - Systema de Controlo CEE
Fl:
Luonnonmukainen maataloustuotanto - ETY:n
S:
Ekologiskt jordbruk - EEG-kontrollsystem.
valvontaj rjestelm/Ekologiskt jordbruk - EEG-Kontrollsystem
45
ANNEX VI
INTRODUCTION
For the purposes of this Annex, the following definitions will
apply:
1.
ingredients: substances as defined in Article 4 of this
Regulation under the restrictions as referred to in Article
6 (4) of Council Directive 79/112/EEC of 18 December 1978
on the approximation of the laws of the Member States
relating to the labelling, presentation and advertising of
foodstuffs for sale to the ultimate consumer.
2.
ingredients of agricultural origin:
(a)
single agricultural products and products derived
therefrom by appropriate washing, cleaning, thermic
and/or mechanical processes and/or by physical
processes having the effect of reducing the moisture
content of the product;
(b)
also, products derived from the products mentioned
under (a) by other processes used in food proc essing,
unless these prod ucts are con sid ered food addi tives or
fla vour ings as defined under points 5 or 7 here under.
3.
ingredients of non-agricultural origin: ingredients other
than ingredients of agricultural origin and belonging to at
least one of the following categories:
3.1 food additives, including carriers for food additives, as
defined under points 5 and 6 hereunder;
3.2
flavourings, as defined under point 7 hereunder;
3.3
water and salt;
3.4
micro-organism preparations;
3.5
minerals (including trace elements) and vitamins.
4.
proc essing aids: sub stances as defined in Article 1 (3)
(a) of Council Direc tive 89/107/EEC on the approxi ma tion of
the laws of the Member States concerning food additives
authorized for use in foodstuffs intended for human
consumption;
SECTION A –
5.
food additives: substances as defined in Article 1
(1) and (2) of Directive 89/107/EEC and covered by that
Directive or by a comprehensive Directive as referred to
in Article 3(1) of Directive 89/107/EEC;
6.
carriers, including carrier solvents: food additives
used to dissolve, dilute, disperse or otherwise physically
modify a food additive without altering its technological
function in order to facilitate its handling, application or
use;
7.
flavouring: substances and products as defined in
Article 1 (2) of Council Directive 88/388/EEC of 22 June
1988 on the approximation of the laws of the Member
States relating to flavourings for use in foodstuffs and to
source materials for their production, and covered by
that Directive.
GENERAL PRINCIPLES
Sections A, B and C cover the ingredients and
processing aids which may be used in the preparation of
foodstuffs composed essentially of one or more
ingredients of plant origin, referred to in Article 1 (1) (b) of
this Regulation, with the exception of wines.
Not with standing ref er ence to any ingre dient in Sec tions A
and C or any proc essing aid in Sec tion B, any ingre dient
or such proc essing aid shall be used only in accor dance
with relevant Community legislation and/or national
leg is la tion com patible with the Treaty and, in the absence
thereof, in accordance with the principles of good
manufacturing practice for foodstuffs. In particular
additives shall be used according to the provisions of
Direc tive 89/107/EEC and, where rele vant, those of any
com pre hen sive Direc tive as referred to in Article 3 (1) of
Directive 89/107/EEC; flavourings shall be used
according to the pro vi sions of Direc tive 88/388/EEC and
sol vents according to the pro vi sions of Council Direc tive
88/344/EEC of 13 June 1988 on the approxi ma tion of the
laws of the Member States on extrac tion sol vents used in
the pro duc tion of food stuffs and food ingre di ents.
INGREDIENTS OF NON-AGRICULTURAL ORIGIN (REFERRED TO IN ARTICLE 5 (3) (B)
OF REGULATION (EEC) NO. 2092/91):
A.1. Food additives, including carriers
E
E
E
E
E
E
E
E
170
270
290
296
300
306
322
330
Name
Specific conditions
Calcium carbonates
Lactic acid
Carbondioxide
Malic acid
Ascorbic acid
Tocopherol-rich extract
Lecithins
Citric acid
anti-oxydant in fats and oils
-
46
E 333
E 334
E 335
E 336
E 341(i)
E 400
E 401
E 402
E 406
E 407
E 410
E 412
E 413
E 414
E 415
E 416
E 440 (i)
E 500
E 501
E 503
E 504
E 516
E 524
E 998
E 941
E 948
Calcium citrates
Tartaric acid
Sodium tartrate
Potassium tartrate
Monocalciumphosphate
Alginic acid
Sodium alginate
Potassium alginate
Agar
Carrageenan
Locust beam gum
Guar gum
Tragacanth gum
Arabic gum
Xanthan
Karaga gum
Pectin
Sodiumcarbonates
Potassiumcarbonates
Ammoniumcarbonates
Magnesiumcarbonates
Calcium sulphate
Sodiumhydroxide
Argon
Nitrogen
Oxygen
raising agent for self raising flour
.
carrier
surface treatment of Läugengeback
-
A.2. Flavourings within the meaning of Directive 88/388/EEC
Substances and products as defined in Article 1 (2) (b) (i) and 1 (2) (c) of Directive 88/388/EEC labelled as natural
flavouring substances or natural flavouring preparations, according to Article 9 (1) (d) and (2) of that Directive.
A.3. Water and salt
Drinking water
Salt (with sodium chloride or potassium chloride as basic components), generally used in food processing.
A.4. Micro-organism preparations
(i)
Any preparations of micro-organisms normally used in food processing, with the exception of micro-organisms
genetically modified within the meaning of Article 2 (2) of Directive 90/220/EEC;
(ii) Micro-organisms genetically modified within the meaning of Article 2 (2) of Directive 90/220/EEC; if they have
been included according to the decision procedure of Article 14.
A.5. Minerals (trace elements included), vitamins, aminoacids and other nitrogen compounds
Minerals (trace elements included), vitamins, aminoacids and other nitrogen compounds, only authorized as far as
their use is legally required in the foodstuffs in which they are incorporated
SECTION B – PROCESSING AIDS AND OTHER PRODUCTS WHICH MAY BE USED FOR PROCESSING OF
ORGANICALLY PRODUCED INGREDIENTS OF AGRICULTURAL ORIGIN, REFERRED TO IN
ARTICLE 5(3)(C) OF REGULATION (EEC) NO. 2092/91
Name
Specific conditions
Water
Calcium chloride
Calcium carbonate
Calcium hydroxide
Calcium sulphate
coagulation agent
coagulation agent
Magnesium chloride (or nigari)
Potassium carbonate
Sodium carbonate
Citric acid
Sodium hydroxide
Sulphuric acid
Carbon dioxide
Nitrogen
Ethanol
Tannic acid
Egg white albumen
Casein
Gelatin
Isinglass
Vegetable oils
Silicon dioxide gel or colloidal solution
Activated carbon
Talc
Bentonite
Kaolin
Diatomaceous earth
Perlite
Hazelnut shells
Rice meal
Beeswax
Carnauba wax
47
coagulation agent
drying of grapes
sugar production
oil production and hydrolysis of starch
sugar production
oil production from rape seed (Brassica spp) only during a period expiring
on 31 March 2002
sugar production
solvent
filtration aid
greasing, releasing or anti-foaming agent
releasing agent
releasing agent
Preparations of micro-organisms and enzymes:
(i)
Any preparations of micro-organisms and enzymes normally used as processing aids in food processing, with the
exception of micro-organisms genetically modified within the meaning of Article 2 (2) of Directive 90/220/EEC;
(ii)
Micro-organisms genetically modified within the meaning of Article 2 (2) of Directive 90/220/EEC: If they have been
included hereunder according to the decision procedure of Article 14.
SECTION C –
INGREDIENTS OF AGRICULTURAL ORIGIN WHICH HAVE NOT BEEN
PRODUCED ORGANICALLY, REFERRED TO IN ARTICLE 5(4) OF REGULATION (EEC)
No 2092/91 *
C.1.
Unprocessed vegetable products as well as products derived therefrom by processes referred to under
definition 2(a):
C.1.1.
Edible fruits, nuts and seeds:
Acerola
Acorns
Cashew nuts
Cola nuts Cola
Fenugreek
Gooseberries
Maracujas (passion fruit)
Papayas
Pine kernels
Raspberries (dried)
Red currants (dried)
Malpighia punicifolia
Quercus spp
Anacardium occidentale
Acuminata
Trigonella foenum-graecum
Ribes uva-crispa
Passiflora edulis
Carica papaya
Pinus pinea
Rubus idaeus
Ribes rubrum
48
C.1.2.
Edible spices and herbs:
Allspice
Cardamom
Cinnamon
Clove
Ginger
Horseradish seeds
Lesser galanga
Watercress herb
C.1.3.
Pimenta dioica
Fructus cardamomi (minoris) (malabariensis)
Elettaria cardamomum
Cinnamomum zeylanicum
Syzygium aromaticum
Zingiber officinale
Armoracia rusticana
Alpinia officinarum
Nasturtium officinale
Miscellaneous:
Algae, including seaweed
C.2.
Vegetable products, processed by processes as referred to under definition 2(b):
C.2.1.
Fats and oils whether or not refined, but not chemically modified, derived from plants other than:
Cocoa
Coco
Olive
Sunflower
C.2.2.
Theobroma cacao
Cocos nucifera
Olea europaea
Helianthus annuus
Sugars; starch; other products from cereals and tubers:
Beet sugar
Fructose
Rice paper
Starch from rice and waxy maize
C.2.3.
Miscellaneous:
Curry composed of:
- Coriander
Coriandrum sativum
- Mustard
Sinapis alba
- Fennel
Foeniculum vulgare
- Ginger
Zingiber officinale
Pea protein
Pisum spp
Rum: only obtained from cane sugar juice
C.3.
Animal products:
Aquatic organisms, not originating from aquaculture
Buttermilk powder
Gelatin
Honey
Lactose
Whey powder ‘herasuola’
* The following products may be used under the same conditions as products listed in Section C of Annex VI to Regulation (EEC) No
2092/91 until 31 January 2000 – apricot concentrate (Prunus armeniaca), elderberry concentrate (Sambucus nigra), mangoes (Mangifera
indica), strawberry (Fragaria vesca) as dried powder or concentrate, five-spice powder composed of: fennel (Foeniculum vulgare), clove
(Syzygium aromaticum), ginger (Zingiber officinale), aniseed (Pimpinella anisum) and cinnamon (Cinnamonum zeylanicum), coco fat,
cocoa fat and starches produced from cereals and tubers, not chemically modified.
49
Appendix A to MAFF consolidated version of EC Regulation 2092/91
CHECKLIST OF RELEVANT AMENDING REGULATIONS TO ORGANIC REGULATION 2092/91
Commission Regulation (EEC) No. 1535/92 of 15 June 1992. Amends Annexes I and III. Official Journal L 162, 16.6.92.
Council Regulation (EEC) No. 2083/92 of 14 July 1992. Adds Article 11 (6). Official Journal L 208, 24.7.92.
Commission Regulation (EEC) No. 207/93 of 29 January 1993. Defines the content of Annex VI. Official Journal L 25,
2.2.93.
Commission Regulation (EEC) No. 2608/93 of 23 September 1993. Amends Annexes I, II and III. Official Journal L 239,
24.9.93.
Commission Regulation (EEC) No. 468/94 of 2 March 1994. Amends Annex VI. Official Journal L 59, 3.3.94.
Commission Regulation (EEC) No. 2381/94 of 30 September 1994. Amends Annex II, Part A.Official Journal L 255,
1.10.94.
Commission Regulation (EEC) No. 1201/95 of 29 May 1995. Amends Annex VI, Section C. Official Journal L 119, 30.5.95.
Commission Regulation (EEC) No. 1202/95 of 29 May 1995. Amends Annexes I and III. Official Journal L 119, 30.5.95.
Council Regulation (EEC) No. 1935/95 of 22 June 1995. General updating of main text (no changes to Annexes). Official
Journal L 186, 5.8.95.
Commission Regulation (EC) No 418/96 of 7 March 1996. Amends Annex VI. Official Journal L 59/10, 8.3.96.
Commission Regulation (EC) No 1488/97 of 29 July 1997. Amends Annex II and Annex VI. Official Journal L 202/14,
30.7.97.
Commission Regulation (EEC) No 1900/98 of 4 September 1998. Amends Annex I. Official Journal L 247/6, 5.9.98.
Commission Regulation (EEC) No 330/1999 of 12 February 1999. Amends Annex VI. Official Journal L 40/25, 13.2.99.
Part II
GLOBAL OVERVIEW: TRADE AND SUPPLY
Chapter 3
OVERVIEW OF WORLD TRADE AND
MARKET CHARACTERISTICS
Introduction
The world trade in organic prod ucts is domi nated by
Europe (mainly the European Union countries and
Switzerland), the United States and Japan, though
there are smaller but interesting markets in many
other coun tries, including a few devel oping ones. As
there are no offi cial trade sta tis tics, it is impos sible to
give a complete picture of the inter na tional organic
trade. In all mar kets, the sector forms an inte gral part
of the overall food and beverage trade, because
organic products are sold to consumers within the
normal assort ment of super mar kets and other gro cery
outlets, as well as by specialized channels like
organic and natural food shops, street mar kets, farm
shops and box schemes.
Retail sales of organic foods in these three
major market areas were estimated at
nearly $11 bil lion in 1997 and pre limi nary
estimates for 1998 indicate that the total
may have risen to over $13 billion.
Germany is by far the largest market in
Europe, accounting for over one third of
total sales. The other main mar kets in terms
of absolute consumption are France,
United Kingdom, the Netherlands,
Switzerland, Denmark and Italy (in Italy
supplies are mainly of domestic origin).
Some other markets, like Austria and
Sweden, are smaller in abso lute terms, but
their per capita consumption of organic
foods is rising rap idly.
Table 3.1 gives an overview of the
esti mated size of the major world mar kets
for organic food and bev er ages in 1997.
Table 3.1
World markets for organic food and beverages, 1997
Market
Approximate
retail sales
(US$ million)
Germany
% of total
food sales
Expected growth
rate (%) over
the medium term
1 800
1.2
5-10
France
720
0.5
20
United Kingdom
450
0.4
25-35
Netherlands
350
1
10-15
Switzerland
350
2.0
20-30
Denmark
300
2.5
30-40
Sweden
110
0.6
30-40
Italy
750
0.6
20
Austria
225
2
10-15
1.25
20-30
Other Europe a/
200
Total, Europe
5 255
United States
4 200
Japan
1 000
TOTAL
Demand for organic food varies
considerably from country to country
within Europe, ranging from a very small percentage
of total food spending in the more southern regions to a
much higher proportion in northern and central
Europe, especially in Austria, Denmark and
Swit zer land. The share of organic foods as a seg ment
of the grocery market is increasing but typically
accounts for only between 1% and 1.5% of total
spending on food. Recent market research has shown
that consumer demand is growing rapidly in most
major mar kets, and that the share of organic foods is
expected to reach 5% - 10% of total food sales in some
countries by the year 2005. All markets, except
Germany, project a growth rate of consumption in
10 455
Source: Compiled by ITC.
a/ Belgium, Finland, Greece, Ireland, Portugal, Spain, Norway.
54
CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS
excess of 10% per annum in the medium term and
certain markets (Switzerland, Denmark, Sweden,
United Kingdom) fore cast rates of over 25%.
In the 1970s and early 1980s the devel op ment of the
organic food market in northern European countries
was stimu lated by growing con sumer interest in health
and nutri tion and an increasing aware ness of the need
to pre serve nature and the envi ron ment. Small groups
of dedi cated con sumers, who were willing to pay signifi cantly higher prices for organi cally pro duced food,
took the lead and demand was also stimulated by
media interest, up and coming environmental movements and green political par ties, food scan dals (such
as those which arose over bovine spongiform
encepha lo pathy or BSE, por cine pest, dioxin con tamination) and con tro ver sies posed by the use of genetically modified organisms or GMOs, which further
moti vated peo ple’s search for healthy food. How ever,
in most mar kets, with the excep tion of Den mark and
Swit zer land, organic food remained a very small niche
product in the total gro cery trade until the mid 1990s,
when a larger segment of consumers – though less
willing to pay high prices – became the dominant
factor in the organic market. The expe ri ences of individual mar kets dif fered but, in gen eral, sev eral major
fac tors con trib uted to this lack of devel op ment:
q
High prices;
q
Unavailability of supply owing to the
insufficient involvement of farmers and food
processors;
q
Limited participation of the supermarkets or the
mainstream grocery trade;
q
Lack of consumer confidence in organic quality.
In the 1990s the rates of devel op ment of organic food
sales in individual European markets have varied
dramatically. Three key positive factors have
influ enced prog ress, though their effect has dif fered
from country to country.
First, under EU and national (organic) agriculture
policies, financial support for converting to, and
main taining, organic farming has increased sub stantially, which has stimu lated the supply of organic produce in nearly all Euro pean coun tries. The policy is
far more marketing-oriented in some coun tries than
in others, so that in coun tries like Aus tria, Den mark
and the Netherlands, funding has gone not only to
farmers in the form of hec tare pre miums but also for
building marketing structures, including consumer
and pro ducer advi sory serv ices and pro mo tion. However, in Germany, for example, more funding has
gone directly to farmers. Consumption, particularly
of organic dairy pro duce, grain, vege ta bles and fruit,
has been stimulated by more consistent availability
and, very importantly, by the resulting lower price
premiums.
Second, the mainstream supermarket trade has
committed itself to the organic trade, not only by
stocking organic products, but also by making it a
serious objective to promote a complete range of
organic grocery products among their customers. In
gen eral, Euro pean con sumers do a high pro por tion of
their house hold shop ping at super mar kets and overall
demand for organic products in the mid 1990s grew
fastest in coun tries where the large com mer cial chains
were most active in pro moting organic prod ucts. This
is high lighted by the situa tion in Den mark and, since
1995, by the growing organic sales and the rapidly
increasing market share of supermarket groups in
Austria, France, Germany, the Netherlands, Sweden,
Swit zer land and the United Kingdom.
The third factor has been the uniform standards for
organic food pro duc tion and label ling and for organic
certification which were introduced throughout the
European Union by Council Regulation (EEC)
2092/91. However, though the Directive covers the
whole of the European Union, national organic
labelling schemes continue to differ from country to
country. In markets like Belgium, Denmark, the
Netherlands and Sweden, certified organic quality is
presented to consumers by a single logo which they
recognize as a guarantee. In France, until the
intro duc tion of the national AB logo, the pro lif era tion
of individual logos was particularly confusing. In
Germany, whether or not the logo Ökoprüfzeichen,
launched in early 1999, will become a genuine
national organic symbol will largely depend on how it
is man aged.
In the larger and more dynamic organic mar kets, the
demand and supply situa tion for fresh foods has been
the major contributor to growth. However, because
the organic food trade aims to mirror the con ventional gro cery trade, there is growing demand for all
food and bev erage prod ucts. Sup plies are first sought
locally, then subsequently from nearby European
sources. How ever, a huge variety of prod ucts, which
cannot be grown within the community or are not
avail able through the year, are bought in from worldwide sources, including many devel oping coun tries.
55
Target markets
Denmark
With a population of just over 5 million people,
Denmark is a fairly small market for most food and
beverages. However, total sales of organic food and
beverages were estimated at about $300 million
(excluding value-added tax or VAT) in 1997,
corresponding to 2.5% of the total retail market for
foodstuffs. This places Denmark in the top league
among world markets, as far as per capita
consumption of organic foodstuffs is concerned.
Fur ther more, it should be noted that con sump tion has
been growing rapidly in recent years. Organic
prod ucts are believed to have reached 3.5% - 4% of
total food and bev erage sales in 1998, or a value of
approxi mately $500 mil lion.
There are strong indi ca tions that the Danish organic
food market will con tinue to expand for a con sid erable number of years. First, consumer interest in
healthy food and environmentally friendly products
continues to grow and more people are purchasing
organic prod ucts. Second, the major retailers are promoting organic foodstuffs quite aggressively, pri marily through heavy advertising and competitive
pricing. For example, FDB (Coop Denmark), the
largest food retailing group, which con trols about one
third of national food sales, has set ambitious sales
tar gets for spe cific organic prod ucts (as a per centage
of total sales of a given item) to be reached by a certain target year. Third, Danish farmers as well as food
manufacturers are increasingly becoming aware of
the opportunities that exist in satisfying consumer
expectations. Finally, current government policy
aims at promoting production and consumption of
organic food stuffs. Sources in both trade and industry
are con fi dently pre dicting that organic prod ucts will
reach about 10% of total food sales by the year 2005.
It should also be noted that the Ministry of Food,
Agri cul ture and Fish eries has just issued (in January
1999) its Action Plan II for the fur ther devel op ment
of organic farming and trade in Den mark during the
period 1999-2003 and beyond.
of the sector into the overall food market is low.
According to trade sources, the retail market
amounted to about $725 mil lion in 1997, equiva lent
to just under 0.5% of total food sales. Retail sales are
believed to have exceeded $800 mil lion in 1998 and
the cur rent growth rate is esti mated at around 20%.
Despite the importance of France as a major
agricultural producer and a significant food and
bev erage exporter, organic farming has failed to keep
pace both with demand from the domestic market and
with the accelerated rate of conversion in
neighbouring European markets. In 1997 organic
agriculture accounted for only 0.3% of the usage of
total farm land in France, com pared with over 7% in
Austria and Switzerland and 2% in Germany.
However, government policy is in place to support
and pro mote more rapid devel op ment over the next
few years and the number of organic farmers in the
country is targeted to rise from 4,500 at the end of
1997 to about 25,000 by the year 2005. It is also
sig nifi cant that organic proc essing is increasing and
that some major French food manufacturers have
launched organic product lines.
The growing involvement of major retail
organi za tions in organic food sales is expected to have
a highly posi tive effect on total con sump tion, because
it will increase the expo sure and avail ability of organic
products to occasional buyers. These new customers
do most of their house hold shop ping at super mar kets
and hypermarkets and expect to be able to buy the
same wide range of organic foodstuff that they have
been used to pur chasing in con ven tional quality.
France is an impor tant exporter of organic fresh fruits
and vegetables, cereals, wine, eggs and poultry.
However, because of the relatively small scale of
pro duc tion and growing domestic demand, there is a
great need for imports of both pro duce which cannot
be grown in France and products of which local
sup plies are insuf fi cient to meet demand. Imports of
organic foods from out side the Euro pean Union have
grown rap idly over the last five years. It is cer tain that
France will con tinue to be an impor tant market, not
least for devel oping coun tries.
France
Germany
Although France, with its population of over 58
mil lion, is one of the largest mar kets for organic foods
in Europe, per capita con sump tion and the pene tra tion
Ger many is the largest market in Europe for organic
foods and the second largest in the world after the
56
United States. Sales totalled about $1,800 mil lion in
1997 and were expected to reach over $2,000 mil lion
in 1998. However, this figure corresponds to only
about 1.2% of total German food sales and a fairly
low per capita con sump tion for the huge popu la tion
of 82 million. The market is unlikely to continue
performing at the double-digit growth rates of the
past 10 years or so, but trade sources are confident
that organic sales will rise in the medium term at
about 5% - 10% annu ally.
The most sig nifi cant seg ments of demand for organic
foods are for fresh fruit and vegetables, dairy
prod ucts, bread and bakery prod ucts, and baby food.
Together these account for nearly two thirds of total
consumption. Conversion to organic agriculture in
Ger many has accel er ated rap idly in recent years, with
the organi cally farmed area expanding from 45,000
hectares in 1989 to 350,000 hectares in 1997. This
huge expan sion has meant that Ger many has become
largely self- sufficient in many basic food items (like
cereals, vegetables, milk and meat) and that price
levels for cer tain key prod ucts are fal ling because of
over supply and keen com pe ti tion.
Until recently, retail distribution was controlled
largely by natural food shops, reform shops, farm
shops and other direct selling outlets; supermarkets
were slow to enter the market. Although most major
German supermarket chains now carry organic
produce they have been slower than many of their
Euro pean coun ter parts to make a clear com mit ment
to marketing a fuller organic assortment. A further
negative influence on overall organic spending has
been con fu sion in the minds of con sumers about the
true meaning of organic and the fact that to date the
German organic movement has not found a
suc cessful way of com mu ni cating its mes sage to the
population as a whole, though a common logo
(Öko prüfzeichen) was intro duced in early 1999.
Ger many is by far the largest importer in Europe and
imports a wide assortment of organic products. The
key sources of imports are France, Italy, Spain, the
Neth er lands, eastern Europe, the United States, Turkey
and other Mediterranean countries and countries in
Latin America. The rising levels of organic pro duc tion
in eastern Ger many and in nearby eastern Europe have
partly shifted the emphasis of the import trade in the
five years to 1998 away from France and Italy, and
new sup pliers are increas ingly sig nifi cant.
It should be noted that German consumers are
amongst the most critical in Europe and, in their food
purchasing, consumers are motivated, not only by
organic origin, but also by freshness, taste, good
presentation, local farm sourcing and the perceived
environmental friendliness of products and their
pack aging. Some organic traders and other sup pliers
have become somewhat discouraged by the slow
progress of market devel op ment and exporters from
developing countries are finding it increasingly
difficult to pene trate the German market because of
growing competition and the extremely strict
standards required. It is necessary to take a much
more pro fes sional approach than in the past.
Nonetheless, a number of positive aspects of the
German market should not be ignored, for example, a
strong aware ness of envi ron mental and health issues,
con sumer interest in organic con ven ience food, and
the new national logo for organic prod ucts. Of spe cial
interest to devel oping coun tries is the Pro trade/GTZsponsored Green Trade Net inter na tional data base on
organic prod ucts, which pro vides market infor ma tion
and links exporters in these coun tries with importers
in Germany and elsewhere. (GTZ stands for Deut sche Gesellschaft für Technische Zusam menar beit or
the Ger many Agency for Tech nical Coop era tion.)
Netherlands
Con sump tion of organic food stuff accounts for only a
small share in total grocery expenditure in the
Neth er lands. It is esti mated that the sector was worth
around $350 mil lion at retail prices in 1997. This was
equivalent to about 1% of the total grocery market,
which is small compared with some European
mar kets. The major fac tors lim iting growth until the
mid 1990s have been:
q
High prices. Netherlands consumers spend a
smaller percentage of their disposable income on
food than their EU neighbours and price is a key
influence on expenditure on grocery products.
q
The marginal level of involvement of the
mainstream grocery trade. Most supermarkets
carried until recently only a very small range of
organic products.
However, 1996 marked a turning point in the
Netherlands organic trade: retail sales increased by
3% - 5% in that year and most esti mates agree that the
rate of increase accel er ated to between 10% and 15%
in 1997, a trend that has continued since. Positive
developments have included the expansion of local
supply and more efficient distribution of dairy and
vegetable produce, rationalization of wholesale
dis tri bu tion to the spe cialist shops, which still play a
key role in retail sales, and intensified government
initiatives to stimulate both organic production and
consumption. Perhaps the key change has been
increased penetration into supermarkets and their
uptake of new organic product ranges. The domi nant
food retailer Albert Heijn launched its own brand for
its organic assortment in early 1998, which is
expected to have a strong positive effect on overall
sales. Future growth will depend strongly on the rate
of expansion by super mar kets into a fuller range of
products and on the ability of suppliers to offer
organic produce to consumers at prices they are
prepared to pay. Retail sales are believed to have
reached about $425 mil lion in 1998.
In spite of the com para tively small domestic con sumption of organic food, the Neth er lands is a major European and global trader in organic food and bev er ages.
The country exports domestically produced fresh
vegetables, dairy products and processed organic
foods, but it has a far greater role in importing, proc essing and repacking bulk organic foods from world wide sources for re- export to most Euro pean mar kets.
Fresh fruits and vege ta bles, grain and cereals, coffee,
dried fruits and nuts, tea, and spices and herbs are particu larly impor tant re- export prod ucts. A large part of
the bulk organic food stuffs imported into Europe from
developing countries is handled by Netherlands
traders. Moreover, the Neth er lands organic inspec tion
authority SKAL is one of the most impor tant Euro pean
certification organizations, operating organic inspec tion serv ices in over 30 coun tries.
Sweden
Consumption of organic food and beverages
accounted for about 0.6% of total retail gro cery sales in
Sweden in 1997 and was valued at an esti mated $110
million (excluding value-added tax). Demand has
increased significantly in recent years and there has
been a problem in coping with the growth in requirements. The most significant sectors of demand are
dairy products and fresh vegetables, which together
account for over two thirds of total organic sales.
By 1997 Sweden had about 3,000 organic farms, on
118,000 hectares of land, certified by the national
organic certification authority KRAV. The certified
area made up 3.4% of all agricultural land.
Government policy aims to increase this percentage
substantially over the next several years. Domestic
production ensures that Sweden is more or less
57
self- sufficient in organic dairy prod ucts, meat, bread
cereals and sugar. At present about 20% of organic
food require ments are imported, but this is expected
to increase as demand grows for a fuller range of
prod ucts. The most impor tant imports are fresh fruits
and vegetables, and green coffee. (Sweden has the
highest per capita con sump tion of coffee in the world
and all coffee roasters offer organic varieties.) The
other main import groups are dried fruits and
vegetables, packaged food, and raw materials and
ingredients (especially cereals, spices, herbs,
vegetable oils and fats) for the domestic food
industry, which has a share of about 80% in total
manu fac tured food con sump tion.
Concern for the envi ron ment is a key moti va tion for
Swedish buyers of organic foods, but price pre miums
have been a major bar rier to market expan sion. Consumption is concentrated in the metropolitan areas.
Scar city and irregular avail ability have also been problems for the sector, but the supply situation is
improving and this is expected to have a favourable
downward impact on price premiums. Another posi tive factor for the overall market is that the three largest
super market chains in Sweden have recently set ambitious tar gets for organic foods which, if imple mented,
could increase the cur rent market size four- or five fold.
Trade experts are confidently predicting that organic
foods could account for 4% - 5% of total Swedish food
con sump tion within a few years.
Switzerland
Though a small country with a population of only
7 mil lion, Swit zer land is one of the pio neers in the
devel op ment of organic agri cul ture, which it started
as early as the 1930s. Organic farming is well
devel oped and accounted for an esti mated 8% of total
agricultural land in 1998. Market penetration of
organic food is among the highest in the world.
Though organic prod ucts have long been sold at the
farm gate and through other direct out lets and later on
through organic shops, the market began to grow
seriously only after 1993 when the big supermarket
chain, Coop started to market organic food, fol lowed
by another large super market chain, Migros, in 1996.
Sales have since increased strongly. The retail market
for certified organic food was estimated at between
Sw F 500 million and Sw F 520 million in 1997,
corresponding to roughly 2% of the total
food market. Sales in 1998 of organic food and
bev er ages can be esti mated at about Sw F 560 mil lion
to Sw F 580 mil lion.
58
Overall, the market for organic food products is
expected to grow strongly over the next few years.
This will be due to the con sum ers’ posi tive atti tude
towards health food and naturally and ethically
produced food; increased supplies as more farmers
go into organic farming (conversion to organic
farming is being sup ported by the Gov ern ment); and
more aggressive marketing by major supermarket
chains. The import rate is in general comparatively
low as market access is dif fi cult, mainly owing to the
predominance of privately controlled labels and
strict requirements. For various reasons, the Swiss
market is likely to remain a difficult one for
exporters.
Nevertheless, it is an important market that should
not be ignored by developing countries. Products
with the best opportunities are those that cannot be
grown in Switzerland, e.g. coffee, tea and cocoa,
citrus and tropical fruits, rice, millet, durum
wheat, spices, nuts and dried fruit. Other products,
e.g. off-season fruits and vegetables, and products
in short supply may also find open ings in the market.
United Kingdom
large size of the average British farm makes
con ver sion more dif fi cult. The main organic out puts
are dairy prod ucts, meat, eggs and cereals.
The small number of powerful multiple chains,
which control 70% of food retailing in the United
Kingdom, has played a sig nifi cant role in the (lack of)
development of the organic trade. Despite a long
history of involvement in the organic trade, their
activity has been marked by periods of enthusiastic
devel op ment fol lowed by with drawals from han dling
organic pro duce. When organic prod ucts were sold,
the price differentials were frequently so high as to
restrict demand. Fur ther more, although most groups
saw organic foods as a potential growth area, they
found the problems of ensuring reliability and
continuity of supply, meeting quality requirements
and offering competitive pricing too difficult to
overcome. Most of the major chains, particularly
Sains bury’s, Wai trose, Safeway and Tesco, are now
becoming increas ingly com mitted to expanding their
range of prod ucts and their sales of organic foods. It
should be noted, however, that organic foods can
expect to face competition in the British as well as
other markets from ICM (integrated crop
management/sustainableagriculture).
While the United Kingdom is one of the larger
markets for organic foods in Europe, growth in
consumption has been disappointing until recently.
Total retail sales in 1997 amounted to an estimated
$450 million, only 0.4% of the overall grocery
market. Despite the fact that the country has been a
major con tributor to the for mu la tion of EU organic
stan dards and cer ti fi ca tion pro ce dures, it has lagged
seriously behind in its own market development.
Prospects for the coming years appear to be much
brighter: sales nearly doubled between 1995 and
1997 and the trade optimistically forecasts that the
retail value of the organic market could be as high
as $10 bil lion within 10 years, which would rep re sent
a market share of about 10%. Fruits and
vegetables account for about 45% of total organic
consumption, followed by cereals, meat and dairy
products.
The British organic market is highly dependent on
imports, which are estimated to have a share of about
70% of the total market. About half of the imports are
sourced in other Euro pean coun tries, but as much as one
third of the total is sup plied from devel oping coun tries.
Owing to the small scale of local production and
the projected future growth of the market, the United
Kingdom should be one of the key target markets for
pro spec tive sup pliers of organic food stuffs.
Domestic organic agriculture has not developed
quickly: in 1997 there were only 1,200 units using
75,000 hec tares or about 0.4% of the total avail able
farm land. It is the trade view that the Gov ern ment is
not yet truly committed to organic production. The
level of assistance to farmers converting to organic
methods is less than half that given to farmers in most
other EU countries. Moreover, the comparatively
Little infor ma tion is avail able on the Japa nese market,
but according to some sources, the market probably
amounted to as much as $1,000 mil lion-$1,200 mil lion
in 1997 and is growing rap idly. Retail sales in 1998 are
believed to have been in the range of $1,300 mil lion $1,500 million. Additional information on these and
other mar kets is given in chapter 4 on the world supply
situation.
Other major markets
The United States market for organic food and
bev er ages was valued at an esti mated $4,200 mil lion
in 1997, up from about $2,800 million in 1995. In
1998, trade sources expected the year’s sales to reach
$5,000 mil lion. Growth rates of at least 10% - 15%
are antici pated.
59
Market segments
From the point of view of exporters in developing
countries, the most important market segment in
European markets is the food processing and
repacking sector, because virtually all imported
organic food and bev er ages con sist of fresh pro duce
or raw mate rial which needs some form of repacking
or proc essing before it can be offered for sale to the
consumer. Most markets focus strongly on primary
processing but, as demand for organic products
grows and the con sumer increas ingly expects to buy
organic alternatives to conventional food stuffs, secon dary proc essing and food manu fac turing, not only
by spe cial ized organic firms but also by major mul tina tional food com pa nies, are gradu ally taking off.
Although it is difficult to make clear distinctions
between sectors, the organic trade in individual
European markets can be broadly divided into the
three seg ments dis cussed below: the retail sector, the
food processing industry, and the catering and
insti tu tional sector.
The retail sector
The retail trade is ulti mately the main outlet for organic
foods in all Euro pean mar kets, but within the sector the
roles played by the major mul tiple super mar kets and
by specialist organic outlets vary considerably from
country to country. Whereas in Denmark, France,
Sweden, Switzerland and the United Kingdom the
supermarkets dominate consumer sales, in other
coun tries, par ticu larly Ger many and the Neth er lands,
the spe cialist organic shops still hold the largest share.
In all mar kets, espe cially since 1995, the main stream
gro cery trade has been increasing its involvement in
the sector, and most leading super market groups now
carry a range of organic food and bev er ages. How ever,
there are still significant variations in the level of
commitment of the large multiples to spreading the
organic mes sage and to stra te gi cally mar keting a full
organic assortment. Because of the pow erful posi tion
of these organizations in overall food retailing, their
policy has and will continue to have a strong direct
influence on overall sales growth in each individual
market.
Organic food sales are dominated in most European
mar kets by dairy prod ucts, fresh fruits and vege ta bles,
cereals and cereal-based products. In a number of
mar kets, espe cially Aus tria, Den mark, the Neth er lands
and Sweden, the dairy sector has been a major force
in the recent fast growth of organic food sales. Fresh
fruits and vege ta bles are a sig nifi cant product group
in all markets: the rapidly growing demand for
produce supplied from local sources has gradually
given rise to increasing demand for the organic
coun ter parts of the full range of fruits and vege ta bles
available from conventional agriculture. This is
possibly the product group which offers the best
overall export opportunities for developing country
producers. Other important product groups include
cereals, cocoa, coffee and tea, dried fruits and nuts,
herbs and spices, fats, oils and derived prod ucts, and
sugar.
Food processing industry
Until recently the organic food proc essing industry in
most European markets concentrated mainly on
primary processing and repacking of agricultural
produce into a form suitable for sale to consumers,
and on sec on dary proc essing into a lim ited range of
manufactured food products. This manufacturing
was carried out largely by specialist organic food
producers and their output was sold mainly on the
domestic market. The one exception is the
Neth er lands, which plays a major role as a gateway
into EU mar kets for imports from out side the Union.
The country is a major trader in organic foods and is
thought to re-export up to 80% of all imports of
primary produce (especially cereals, coffee and tea,
fresh fruits and vegetables, herbs and spices, nuts,
oil-seeds, pulses) and at least 50% of domestically
manufactured packaged foods to other European
markets.
The sig nifi cance of the food industry as an end- user
of organic raw mate rials is now growing fast because
consumers, both local and in export markets, are
looking for an assort ment of proc essed foods similar
to that avail able from con ven tional pro duc tion. There
is increasing demand for convenience foods and
ready meals. A key devel op ment in recent years has
been the expanding involvement of the mainstream
gro cery trade in the sector and the growing number of
main stream proc es sors which are adding organics to
their factory production lines. Many of the new
registrations of organic production units are for
organic departments of conventional food
companies, rather than new specialist organic
60
businesses. Among multinationals Heinz stands out
as a com mitted manu fac turer of organic food; others
which are already pro ducing organic product ranges
are still hesi tant about their level of com mit ment.
The degree of processing carried out by food
manufacturers varies considerably according to the
product group. The following list indicates major
uses:
q
Honey: mainly for consumer use (table honey);
also for bakeries.
q
Oil- seeds: mainly indus trial (marga rine, cooking
oil, bread); some consumer snack foods.
q
Processed fruits and vegetables: largely into fruit
and vegetable juices, frozen and canned produce,
conserves, pulp, purées, soups, pizzas, baby food,
fruit yoghurts and desserts.
q
Coffee and tea: mainly retail; small but growing
catering and institutional use.
q
Dried fruits: mainly for the bakery trade, but also
for muesli, consumer snacks and fruit yoghurts.
Pulses: mainly consumer packing for the retail
trade, but also for bread spreads and convenience
foods. Soy has numerous uses in virtually all food
sectors, e.g. drinks, desserts, tofu, vegetable burgers.
q
Catering and institutional sector
q
Edible nuts: mainly for industrial use in peanut
butter, other nut pastes, sauces, bakery products,
snacks, muesli.
q
Fresh fruits and vegetables: primarily for direct
consumer consumption.
q
Grains, cereals, rice: bread and bakery products,
muesli, rice cakes and cereal-based drinks; consumer
packs for retail sale; animal feed.
q
Herbs and spices: both retail and industrial
(soups, ready meals, etc.), with the latter segment
growing in comparative importance.
The catering and institutional use of organic foods
has com menced in some Euro pean mar kets but has
not developed extensively to date. In Denmark,
Germany, Italy, the Netherlands and Sweden, some
municipal and other public bodies have started to
require offi cial insti tu tions like schools, hos pi tals, old
people’s homes, universities and administrative
offices to offer organic menus and organic coffee and
tea in their canteens. Restaurants specializing in
organic foods are increasing in number. Some air line
companies, e.g. Lufthansa and, in particular,
Swis sair, offer organic on- flight meals.
Importers, processors, repackers
The most usual form of distribution for imported
organic foods is through a specialized importer
and/or a processor/packer, then to a wholesaler or
direct to the retail outlet, which makes the final sale to
the consumer. However, the functional distinctions
between different types of distribution channel are
often not clear because many companies undertake
various levels of interim processing and repacking,
according to the type of product and the end-use. In
each market and for each of the major product groups
a few specialized organic traders tend to dominate
imports and these com pa nies are the key (poten tial)
cus tomers for for eign exporters. They import on their
own account and sell to packers, proc es sors and food
manufacturers.
Direct sales from foreign exporters to the central
pur chasing units of retail chain stores are still rare but
are likely to be of growing interest to the mul ti ples as
their organic volumes and their uptake of new
organic products increases. There is a growing
tendency towards sourcing supplies more globally
and devel oping part ner ships at all levels.
Food manufacturers
Food manufacturers tend to obtain their imported
sup plies either direct from importers or from spe cialized (European) repackers/processors, which can
provide requirements according to the manu facturers’ speci fi ca tions and ensure con ti nuity of supply.
For logis tical, food safety and envi ron mental rea sons
they usually prefer to buy from domestic or nearby
European sources. They do not often import direct
from out side Europe, though it is likely that this will
increase, especially as more conventional food
manu fac turers begin to set up organic product lines.
In the above- mentioned coun tries super mar kets now
have a domi nant share in organic food sales, whereas
in markets like Germany and the Netherlands spe cialist organic outlets have played a larger role. In
recent years these shops have tended to con soli date in
order to meet increasing com pe ti tion from the major
multiples, and some spe cialist organic super mar kets
have started to emerge. Some coun tries, which tra dition ally had a health food market seg ment, still sell a
certain proportion of organic food through this
channel, but the importance of these outlets has
declined. One key reason is that they tend to have a
limited range of fresh produce, which is the main
product group behind the cur rent faster growth rate in
organic food sales.
Retail trade
The distributionstructure for organic foods has been
one of the key deter mi nants of the rate of prog ress of
retail sales in indi vidual Euro pean mar kets. The clear
commitment of multiple supermarket groups to
marketing a full organic assortment has had a direct
influ ence on the rap idly rising growth rate of mar kets
such as Aus tria, Den mark, Swit zer land and, recently,
the United Kingdom and other markets. Product
identification, strong merchandising, improved
assortment and regular stocking have helped
super mar kets to draw many new organic cus tomers.
European consumers also buy organic foods direct
from farms and at organic markets. A highly
significant development over recent years has been
the organic food box subscription schemes run by
farm out lets and fruit and vege table traders in some
European markets. Germany now has between 250
and 300 schemes, primarily for fresh fruits and
vege ta bles but some offer a larger choice of fruits and
beverages. Box schemes are also growing in
popularity in the United Kingdom and the
Netherlands. Several systems for ordering via the
Internet have also started oper ating.
As the stores expand the variety of prod ucts stocked,
people who tend to do a large part of their grocery
shopping in a single outlet and who have only been
occa sional users of organic foods gradu ally increase
their purchases. Moreover, the growing availability
of supply and more efficient distribution of larger
quantities help to lower the price premiums for
organic food to levels more accept able to con sumers.
Table 3.2
Market
European markets: percentage shares of retailers
in organic food sales, 1997
Multiple
retailers
Specialist
shops a/
61
Other b/
Denmark
70
15
15
France
40
30
30
Germany
25
45
20
Netherlands
20
75
5
Sweden
90
5
5
Switzerland
60
30
10
United Kingdom
65
17.5
17.5
Source: Trade estimates.
a/ Specialist organic food stores, Reform shops, natural/health food shops,
dietetic shops, etc.
b/ Direct farm sales, organic markets, box schemes, catering, etc.
Fair trade
Fair trade organizations have become an
important distribution channel for organic
products in Europe, par ticu larly in Ger many,
Swit zer land and the Neth er lands, but also in a
number of other markets. The primary
concern of the fair trade movement is the
social and eco nomic situa tion of farmers and
producers in the South rather than organic
agriculture as an ideal, but the two
movements are tending to converge, as both
con tribute to genuine sus tain ability. Fair trade
distribution is of great consequence for a
number of product groups from developing
countries, especially bananas, cocoa, coffee,
honey and tea.
62
Market access
Organic certification and food laws
Uniform standards for organic food production and
labelling throughout the European Union were
established with the promulgation of Council
Regulation (EEC) 2092/91 of 24 June 1991. This
regu la tion and sub se quent amend ments estab lish the
main rules for organic production, processing and
importing, including inspection, record keeping,
labelling and marketing. The use of the term
‘organic’, or its equivalent in different national
lan guages, for label ling and adver tising food pro duce
is now limited in the European Union to products
obtained according to the principles of production
and the rules of proc essing defined in the Regu la tion.
In principle, organic products which have been
imported into one EU country can be freely sold
throughout the Union, although labelling inspection
schemes do still demand dif ferent stan dards in some
indi vidual mar kets.
Each EU country is responsible for appointing its
own con trol organi za tion and has some flexi bility in
interpreting and enforcing the Regulation, which
only sets down minimum requirements for
certification. It should be noted that the actual
stan dards required by cer ti fi ca tion organi za tions and
importers can be much more stringent than these
minimum require ments.
Prod ucts from third (non-EU) coun tries can be sold as
organic only when it has been dem on strated that they
are from a country whose organic farming rules are
equiva lent to those of the Union as laid down in the
Regulation. Certification must be carried out by a
rec og nized inspec tion body, either a national authority
in the country con cerned whose equiva lence has been
approved according to Regulation 2092/91 or by an
EU inspectorate which operates internationally, like
Eco cert, SKAL, KRAV or BCS.
GOLDEN RULES FOR THE EXPORTER OF ORGANIC PRODUCTS
q
Your products must be organically certifiable and meet the legal and market requirements (hygiene, weight,
size, ripeness, colour, packing and other technical specifications) of the importing country. You m ust make sure
you know the rules and are aware of all requirements and that your products are produced, stored, processed,
packed and labelled accordingly.
q
Unless you have a way, either directly or through your group or cooperative, for marketing and selling your
products to the final customer, you will need an exporter and/or an importer. Make sure that the chosen exporters
are competent, trustworthy and solvent. They must defend your best interests at all times and you must be able to
build a lasting partnership with them. Likewise, importers must have a sound understanding of your potential as
well as your limits and must be ready and able to communicate with you on a continuous basis.
q
Make sure that you communicate with your trading partners (exporters and importers) adequately yourself.
Nothing is more frustrating for trading partners than not to be informed about your situation, especially on
product availability, and not to receive prompt replies to their requests for information.
q
Make sure you build up expertise on foreign markets. Is there any need for your product? Where? When (which
season)? Who are the target customers? What are the price levels? Are there limitations to imports? Your
exporters and importers can help with this but you should also use other sources to obtain independent market
information. Possible sources (see pp. 63-4) include the GreenTrade Net, fair trade organizations, chambers of
commerce, and other organizations, including NGOs, in your own country.
q
Do not speculate on prices. Set an adequate price level through open communication with your exporters and
with importers, allowing for reasonable profits for all, as befits partners.
q
Work as much as possible in collaboration with other producers in a cooperative or other group relationship.
Working together can mean producing marketable quantities at better prices, better assortments, and improved
post-harvest treatment, processing, packaging, storage, transportation and administration. It may also help to cut
the costs of certification and participation in foreign trade shows.
q
Exporting can be profitable business, but do not ignore building up a national market, whatever the problems
and hindrances. Be creative and innovative!
Exporters of all types of food and bev erage prod ucts
to European countries must also comply with the
increasingly strict EU regulations on food safety
and hygiene, nutri tional infor ma tion, addi tives, packaging and label ling.
Customs duties
The external trade of all EU member countries is
governed by common regulations and trading
agree ments. Once the required duties have been paid
on goods imported from out side EU into a spe cific EU
63
market, these goods can be cir cu lated throughout the
Union without further customs formalities. Some
imports are subject to quantitative and other
restrictions. Most products from the Asian,
Car ib bean and Pacific States asso ci ated with EU and
from least devel oped coun tries are exempt from duty.
For other developing countries, GSP (Generalized
System of Preferences) agreements may lower
applicable customs tariffs. In accordance with EU
commitments under the WTO Agreement, EU’s
average tariff levels will be lowered considerably
over the next few years.
Sources of information
A major purpose of this study is to help fill the
information gap that exists in most developing
countries which export or are planning to export
organic prod ucts. With the aim of maxi mizing export
earn ings, it is abso lutely vital that the exporter obtains
regular updates on price and market trends. The
fol lowing sug ges tions may be useful:
q
Green Trade Net, an international database on
organic products on the Internet, which provides
market information and links exporters in these
coun tries with importers in Germany and else where.
The database is sponsored by Protrade/GTZ,
Germany’s trade promotion and entrepreneurship
programme.
q
Producers and exporters should pay regular
visits (preferably at least once a year) to the target
market(s) to collect market and marketing infor mation through meet ings with trading part ners and visits
to retail shops and special ized trade fairs.
Web site:
E-mail:
Tel:
Fax:
http://www.green-tradenet.de
[email protected]
+49-69 811 228
+49-69 824 684
q
q
Producers and exporters should establish and
maintain contacts with other producers and exporters
to exchange information and discuss market
developments and trading conditions.
BioFoodNet, an information and news platform
for the global, European and local organic markets on
the Net. It is operated from Belgium and is sponsored
by BioFoodNet PVBA.
Chemin des Maréchaux 35
B-1300 Wavre-Limal
Web site: http://www.biofood.net
E-mail: [email protected]
Tel/Fax: +32-10 410 675
q
Producers and exporters should make maximum
use of existing sources of information, such as the
publications mentioned in the bibliography at the end
of this study.
q
Many importers, processors, food manu facturers, retail organizations and other companies
involved in the organic trade have Web sites that
provide useful information. This is also true of a
number of international organizations, NGOs, aid
organizations, trade associations, certification
bodies and other enti ties. As far as possible, rele vant
Web sites and e-mail addresses are provided in this
study.
The fol lowing sources of infor ma tion are par ticu larly
useful:
q
Fresh-Marketplace is a new on-line database
that links potential buyers and sellers of fresh fruits
and vegetables via the Internet. It was co-developed
by the International Trade Centre UNCTAD/WTO
(ITC) and an organization in the United Kingdom. It
covers mainly conventional but also organic fruits
and vegetables. Coverage of products other than fresh
fruits and vegetables may be included at a later stage.
For further information contact:
Fresh-Marketplace
International Trade Centre UNCTAD/WTO (ITC)
54-56 rue de Montbrillant
64
some stage. For sub scrip tion and fur ther infor ma tion
contact:
CH-1202 Geneva
Switzerland
Web site: http://www.fresh-marketplace.com
Tel:
+41-22 730 01 11
Fax:
+41-22 733 44 39
Market News Service (MNS), an ITC global
programme, provides price and market information
on a number of food products, including fresh fruits
and vegetables, bulk-packed fruit juices, spices and
rice. MNS does not cur rently cover organic prod ucts,
although selective coverage may be introduced at
Market News Service
International Trade Centre UNCTAD/WTO (ITC)
54-56 rue de Montbrillant
CH-1202 Geneva, Switzerland
Web page:http://www.intracen.org/services/
mns/mns.htm
Tel:
+ 41-22 730 01 11
Fax:
+ 41-22 730 05 72; + 41-22 730 09 06
Trade fairs
Organic producers and exporters in developing
countries should aim to visit food fairs whenever
possible. Increasingly exporters also participate as
exhibitors, usually in cooperation with a trading
partner or under the sponsorship of an import
pro mo tion organi za tion. There are a number of trade
fairs relevant for the organic trade, including the
following:
Grüne Woche (Green Week)
Berlin, Germany
Tel: +49-6634-91929-0/-1
Http://www.messe-berlin.de
Mainstream food show with a growing
presence of organic products.
Bio Fach
Nürnberg, Germany
Tel: +49-9171-96100
Fax: +49-9171-4016
Http://www.biofach.de
The world’s largest organic food show;
has many exhibitors from developing
countries.
The largest organic and natural food
show in the United States.
Natural Products, Expo West
Anaheim, Ca, United States
Tel: +1-303939-8440
Fax: +1-303939-9559
Http://www.naturalproductexpo.com
The United Kingdom’s largest organic
and natural food show.
April (annual)
Natural Products, Expo East
Brighton, United Kingdom
Tel: +44-1903-879077
Fax: +44-1903-879052
Http://www.naturalproducts.co.uk
31 May - 2 June 2000
Natural Products, Expo Europe
Amsterdam, Netherlands
Tel: +44-1273-384282 (UK)
Fax: +44-1273-384285 (UK)
April (annual)
Vitafoods International, Conference
and Trade Exhibition
Geneva, Switzerland
Tel: +44-1872-263682 (UK)
Http://www.vitafoods.co.uk.
Organized by Vitafoods International
Ltd, Truro, United Kingdom.
Natural medicines and foods, including
organic products.
May (annual)
Bio Cultura
Barcelona, Spain
Tel: +34-93-5801118
Fax: +34-93-5801120
The Barcelona version of Spain’s
largest organic and natural food show,
created by Vida Sana.
Created by Nature et Progrès;
Belgium’s largest organic food show.
Valeriane
Namur, Belgium
Tel: +32-81 303690
Fax: +32-81 310306
Http://www.euronature.com
January (annual)
February (annual)
March (annual)
September (annual)
65
September (annual)
SANA
Bologna, Italy
Tel: +39-02 8645 1078
Fax: +39-02 8645 3506
Http://www.sana.it
Traditionally Italy’s largest organic
food show.
September (annual)
Natural Products
Baltimore, MA, United States
Tel: +1-303939-8440/-9559 Expo
East
Http://www.naturalproductexpo.com
The East Coast version of the Anaheim
show.
October (biennial, to
be held next in 2000)
SIAL
SIAL Paris, France
Tel: +33-149685499/-147313782
Http://www.sial.fr
A large European mainstream food
show, alternating with Anuga in
Cologne, Germany; with a growing
organic presence.
October (biennial, to
be held next in 1999)
Anuga
Cologne, Germany
Tel: +49-221-821-0/-2574,
Http://www.koelnmesse.de
A large European mainstream food
show, alternating with SIAL Paris.
(Biennial)
Food-Ingredients-Europe-Exhibition
Netherlands
Info: Miller Freemann Bv
Tel: +31-346 559444
Fax: +31-346 573811
Http://www.infbv.com/food
Mainstream event with strong organic
presence rotating netween Paris
(September 1999), Frankfurt
(November 2000) and London (2001).
November (annual)
Marjolaine
Paris
Tel: +33-490310042
Fax: +33-490324391
France’s traditional organic food show,
created by Nature & Progrès.
November (annual)
Bio Cultura
Madrid, Spain
Tel: +34-3-5801118
Fax: +34-3-5801120
The Madrid version of Spain’s largest
organic and natural food show, created
by Vida Sana.
FAO’s contribution to organic agriculture
In response to a request made by its gov erning bodies
in January 1999, FAO is devel oping an organizationwide and cross-sectoral programme in organic agri culture. This programme will be undertaken in col labo ra tion with public and pri vate insti tu tions such as
national and international agricultural research cen tres, national programmes, consumer associations
and international organizations such as ITC and
IFOAM.
Countries are requesting advice and assistance for
informed decision-making and policy analysis, as
well as technical assistance in research, extension
work and in tap ping market oppor tu ni ties.
FAO intends to help developing countries to access
international markets by providing technical infor mation on production requirements, trade infor mation on market opportunities, and assistance in
capacity building. Specific assistance will be given
for the development of appropriate national leg is lation, cer ti fi ca tion capa bili ties, research and exten sion
facili ties, and to pro mote the exchange of expe ri ences
between coun tries. FAO will cover the whole pro duction, storing, handling, processing and marketing
chain.
In order to obtain the basic intelligence needed to
understand fully the magnitude of organic production
and trade, statistical data is required on the number of
farmers who have adopted organic management
techniques, and on the volumes of goods produced
and traded. Steps are being taken to specify data
collection methodologies and to amend international
classification systems.
Countries seek assistance in deciphering the multitude
of rules various traders expect their suppliers to follow.
Increasing international trade in organic products has
placed FAO at the forefront of efforts to achieve
greater harmony in organic standards. The Codex
Committee on Food Labelling has prepared
Guidelines on the Production, Processing, Marketing
and Labelling of Organically Produced Foods which
were adopted by the FAO/WHO Codex Alimentarius
Commission in July 1999.
66
FAO is prepared to respond to requests from member
countries for assistance in developing regional
organic standards that take into account local
production needs as well as international market
demands.
The highly local nature of organic production means
that community-based expertise and organizational
capacity is needed. FAO could support, upon request,
the establishment of local certification organizations
in developing countries.
For further information contact:
Food and Agriculture Organization
of the United Nations
Via delle Terme di Caracalla
00100 Rome
Italy
Web site: http://www.fao.org
Tel:
+3906 57051
Fax:
+3906 57053152
Contact: Secretary, Inter-Departmental Working
Group on Organic Agriculture of FAO
Chapter 4
WORLD SUPPLY BY GEOGRAPHICAL REGION
AND BY COUNTRY
Introduction
This chapter gives a worldwide overview of
production and trade in organic food products by
region and by country. Spe cial atten tion has been paid
to devel oping coun tries and the dis cus sion focuses on
key issues of production, trade, certification and
export poten tial.
As has been mentioned in an earlier chapter, this
study does not concentrate on a specific product or
product group but on a niche in the overall food
sector. While this niche encompasses the whole
spec trum of food prod ucts, there is little or no offi cial
statistical information available. The description
therefore of production and trade is primarily
qualitative. It is based on whatever data were
avail able during 1998 when the study was car ried out
and on interviews with importers, retailers,
certification and accreditation agencies, and trade
pro mo tion organi za tions [such as Pro trade/GTZ, the
Centre for the Pro mo tion of Imports from devel oping
countries (CBI) and Office suisse d’expansion
commerciale (OSEC)]. The difficulty of making
estimates of production volumes and market sizes
was exacerbated by the significant proportion of
organic produce sold direct by producers to
con sumers, the pro lif era tion of organic schemes, and
the differing certification and labelling practices all
over the world.
It must be empha sized that the amount and detail of
infor ma tion given on each country in this chapter and
in the country chap ters do not reflect the size of their
respective sec tors, but simply indi cate that for some
countries data have been more easily avail able than
for others. The same applies to the mention of
organi za tions, traders and others, which should not be
interpreted as an endorsement of any kind. The
mention is merely an indication of the information
avail able within the time frame for the study and the
methods used for collecting data. The country
sections therefore, while they give an insight into
national organic food sectors, can by no means be
regarded as pre senting a com plete pic ture.
All prod ucts referred to as being pro duced or traded in
various countries are organic products certified to
recognized standards. Goods that could probably be
rightly called organic but have not received
certification are excluded from the study, although
they are sometimes alluded to. Similarly, products
marketed as ‘organic’, ‘biological’, ‘ecological’, etc.
but which are certified to standards that do not
con form to inter na tional stan dards (the latter including
the EU Regu la tion on organic crop pro duc tion and the
IFOAM stan dards for animal pro duc tion) fall beyond
the scope of this study.
It should be added that, wher ever they are pro duced,
organic prod ucts other than food and bev er ages (such
as wood and wood prod ucts, wool, cotton and cotton
yarn) are men tioned in the country sec tions, basi cally
to indi cate devel op ments in other seg ments that may
have an impact, however indirect, on the food and
beverage sector. Advances in certification, for
example, in other sectors, would facilitate similar
ini tia tives in regard to food. The reader should also
note that the list ings of items by product cate gory are
merely illustrative of the items being produced in
individual countries. Furthermore, the geographical
grouping of countries follows that of the United
68
CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY
Nations Sta tis tical Year book,which is gen er ally (but
not always) based on con ti nental regions.
towards the continued collection and dissemination
of data on world pro duc tion and trade in organic food
prod ucts, espe cially in devel oping coun tries.
It is hoped that this study will serve as a first step
Africa
Organic farming takes place in a growing number of
African coun tries, but gen er ally on a very small scale.
The absence of an organized national market and
local distribution system is a major hindrance.
Organic prod ucts are usually sold only in impro vised
farm ers’ mar kets, more often than not with no price
premiums. Access to technical assistance and
reasonable credit remains difficult. Nonetheless,
numerous farmers’ and women’s organizations and
NGOs practice organic farming to promote
self- sufficiency in food in their areas, to cur tail land
erosion, to recover land in desertified areas, or for
export. Sometimes, benefiting from new insights,
they return to long-abandoned traditional practices,
similar in many ways to organic farming methods
(see section on Burkina Faso).
In many countries, certification, with its cost
implications, does not yet make much economic
sense. However, Egypt is already an important
producer and exporter of organic products as are
Madagascar, some of the Maghreb countries, and
South Africa. Exotic fruits, herbs and spices, nuts,
essential oils, oil-seeds, vegetables and cotton are
some of the most important items produced
organically.
Control and certification are mostly carried out by
for eign enti ties although local struc tures are being set
up in a number of coun tries.
Algeria
Algeria has the begin nings of an organic agri cul tural
sector. It produces dried fruit (dates) and exports
some of this, mainly to the Euro pean Union.
Useful address
ECO MRK
Institut des sciences de la nature de l’Université de
Bejaia
DZ-Tizi Ouzou 15000
Tel: +213-5214334
Fax: +213-5214332
(Production, development)
Benin
Benin produces some quantities of dried fruits and
nuts, oil-seeds like palm, coconut and sesame, and
cotton.
Useful addresses
Association ORUKUTUKU
BP 80, Dassa-Zoumé
Tel/Fax: +229-324300
PADEC - Kandi
Projet d’appui au développement dans la
circonscription urbaine de Kandi
BP 90, Kandi
Tel: +229-630013
(Development)
Burkina Faso
This was the first African country to host the bien nial
IFOAM International Scientific Conference and
General Assembly (in 1989). At that con fer ence the
Dec la ra tion of Oua ga dougou was launched: it states
that organic agri cul ture in devel oping coun tries is not
a luxury but a precondition for attaining food
self-sufficiency. Burkina Faso is member of the
IFOAM African francophone group (see section on
Senegal).
The country produces some fresh fruit (mango),
millet, oil crops (sesame seed), pulses, sorghum,
vegetables and other products for domestic
consumption. It engages in a small export trade,
mainly in sesame seed, predominantly to Belgium
and France.
The rediscovery and reu tili za tion of the tra di tional
zai method in the Sahel area, abandoned for about
50 years, is making it pos sible to regain deser ti fied
land. The method consists of hacking holes of a
depth and width of 30 centimetres into the
stone- hard lat erite soil. Com posted manure and then
some millet or sorghum seed and some pulses are
sown into the holes. Stone dikes 10-20 centimetres
high are built, forming parcels and preventing rain
water (when it comes) from flowing away. Hedges
are planted next to the dikes, strengthening them.
Ani mals are fenced in or guarded so that they do not
eat the young plants and hedges. The soil recu per ates
sufficiently after three harvests to be ploughed
nor mally again.
69
Burundi
Burundi produces fresh fruits such as avocados,
bananas, man goes and pine ap ples.
Cameroon
Cameroon produces and exports some fresh fruits
(pine ap ples, papayas, bananas) and vege ta bles.
Useful addresses
In this country, where close to half of the popu la tion
lives below the threshold of poverty, distribution is
rudimentary. A number of NGOs and farmers’ and
women’s asso cia tions (such as SSSSSS – the Six S)
are active in organic agriculture in the Sahel area.
Their goal is not only to help the population attain
food self-sufficiency but also to stop desertification
and to regain land both in the north, where the Sahel
desert advances, and in the south where defor es ta tion
causes heavy ero sion. The Ligue des con som ma teurs
in Ouagadougou promotes organic agriculture and
defends consumers’ rights vis-à-vis the authorities
and eco nomic opera tors.
Useful addresses
ABC
(Agri Bio Conseil)
BP 2545, Bobo-Dioulasso
Fax: +226-970850
(Development, consultancy)
AVAPAS
(Association agroécologistes au Sahel)
Aned La Baoogo
PO Box 8095, Ouagadougou 04
Tel: +226-308499
Fax: +226-310618
(Producer, processor)
INADES
(Institut africain pour le développement
économique et social)
01 BP 1022, Ouagadougou 01
Tel: +226-302070; 340341
Fax: +226-340519
Ligue des consommateurs du Burkina Faso
BP 6936, Ouagadougou 1
Tel/Fax: +226-315570
(Production, development, and safeguarding
consumer interests)
CAIPE
(Centre d’appui initiatives paysannes d’Ebolowa)
BP 132, RFC-Ebolowa
Tel: +237-283618
Fax: +237-281034
(Production, trade)
Export Agro sarl
BP 4524, Douala
Tel: +237-401024
Fax: +237-400613
(Producer, exporter)
SAP
(Sustainable Agroforestry Promoters)
PO Box 514, RFC-Bamenda
Fax: +237-362111
(Production, consultancy)
Cape Verde
An export- oriented banana proj ect is in an advanced
stage of devel op ment.
Comoros
Organic agriculture is just beginning on this
archi pelago in the Indian Ocean. Some quan ti ties of
spices (e.g. vanilla) are being pro duced.
Côte d’Ivoire
The country pro duces some cocoa and coffee. It exports
some quan ti ties of cocoa to the Euro pean Union.
Useful address
IACO
(Inter-African Coffee Organization)
BP V 210, Abidjan
Tel: +225-216131; 216185
70
Democratic Republic of the Congo
Certification
Organic pro duc tion is in its first stages.
The Egyp tian Bio dy namic Asso cia tion (EBDA) has
its own cultivation standards and regulations. Both
COAE and EBDA cooperate with universities and
research institutions for the further development of
Egyptian standards for organic farming. The
Swiss-German body IMO supervises the country’s
inspec tion sys tems.
Useful address
CANAEL
(Comité de l’animation d’Entre Lubau et Ntumina)
BP 39, Eglise Kimbaguiste
Ave. Bongolo 44, Kinshasa
Egypt
Production
The Sekem group ini ti ated and gave a strong impetus
to organic farming in Egypt in 1978. It is involved
with COAE, the Centre for Organic Agriculture in
Egypt, established in 1990 to promote organic
farming and to advise and assist organic farmers.
In 1998, 150 farms covering 5,000 acres were in
operation, largely following biodynamic standards.
Crops include fruits, both fresh and dried (apricots,
bananas, citrus, dates, grapes, mangoes); grains
(barley, rice, wheat); herbs ( basil, dill, paprika, spearmint); leg umes, dried (peas, beans); medicinal plants;
roots and tubers (potatoes); vegetables (cucumbers,
eggplants, garlic, onions, squash, tomatoes); spices
(caraway, cori ander, paprika, pepper); and tea. Livestock farming also takes place (dairy cattle, sheep;
pigeons), as does some apiculture. Cotton is also
produced.
Egypt is member of the AgriBioMediterraneo (see
Italy) and of the IFOAM African anglo phone group
(see Kenya).
Processing and trade
Many products are processed through the Sekem
group. On the domestic market, these are sold as food
and phyto- pharmaceuticals to super mar kets, spe cialized food shops and phar ma cies. Exports are con siderable and are rising. Agrofood Organic Egypt in
Cairo is an exporter of herbs, spices and vege ta bles.
The main export crops are fresh fruits and vege ta bles
(more than 6,000 tons yearly), herbs and medicinal
plants (around 200 tons yearly), and cotton. The main
mar kets are the Euro pean Union and Swit zer land
Useful addresses
COAE
(Centre for Organic Agriculture in Egypt)
Faculty of Agriculture, Ain Shams University
PO Box 1535, Alf Maskan , ET-11757 Cairo
Tel/Fax: +20-2-2818886
E-mail: sekem@sekem
EBDA
(Egyptian Biodynamic Association)
PO Box 2834, El Horreya, ET-Heliopolis, Cairo
Tel: +20-2-2807994
Fax: +20-2-2806959
(Development)
ECOA
(Egyptian Centre of Organic Agriculture)
18 Mena Street, Dokki, ET-Giza
Tel/Fax: +20-202-3618717
(Inspection)
Sekem
PO Box 2834, El Horreya, ET-Heliopolis
Tel: +20-22807994
Fax: +20-22806959
(Producer, processor, wholesaler)
UGEOBA
(Union of Growers and Exporters of Organic and
Biodynamic Agriculture)
3 Cumbeese Street, ET-12311 Dokki-Giza, Cairo
Tel: +20-2-3484252
Fax: +20-2-3601028
Ethiopia
Ethiopia is an important coffee-producing country.
An ITC proj ect is assessing the fea si bility of organic
farming and of estab lishing a cer ti fi ca tion system in
the country. Ethiopia is member of the IFOAM
African anglo phone group (see Kenya).
The major varieties of coffee include yergacheffe,
harrar and sidamo, which may be exported in organic
form in the future.
Useful address
Coffee & Tea Authority
PO Box 3222
Addis Ababa
Tel: +251-1518088
Fax: +251-1517293
(Production, consultancy)
Gabon
Gabon is taking its first steps towards estab lishing an
organic sector. Some quan ti ties of organic cocoa are
now being pro duced.
Useful addresses
Ghana Export Promotion Council
PO Box 146, Accra
Tel: +233-21-228813
Fax: +233-21-668263
GOAN
(Ghana Organic Agriculture Network)
PO Box 6342, GH-Kumasi
Tel: +233-51-20954
Fax: +233-51-25306
TOFA
(Traditional Organic Farmers’ Association)
PO Box 71, GH-Mampong Akrofoso
Fax: +233-21-777098
(Production, consulting)
Gambia
Guinea
The Gam bia’s nas cent organic sector pro duces some
oil crops (e.g. sesame seed).
Organic agri cul ture in Guinea is at an early stage.
Useful address
Farato Farms
PO Box 142, 79 Hagan Street, Banjul
Tel/Fax: +220-227869; +220-226148
71
Useful address
CePATA
(Centre de promotion agricole et de technologies
adaptées)
PO Box 530, Conakry
Tel/Fax: +224-443291
(Production, processing)
Ghana
Kenya
Ghana pro duces cocoa; fruits, fresh (bananas, papayas,
mangoes, pineapples); nuts (peanuts) and vegetables,
fresh. It has many wild tropical fruits, herbs, nuts and
vegetables, whose potential for cultivation and
mar keting has not yet been explored, but which could
broaden the organic product range on the world
market. The Tra di tional Organic Farm ers’ Asso cia tion
(TOFA) and various other groups and NGOs pro mote
tra di tional organic farming sys tems.
Organic farming in Ghana has good potential for
further development. As it is, the use of chemical
inputs is restricted to the large com mer cial farms and
market gar dens around the cities, which account for
only a small pro por tion of overall food pro duc tion.
Production and trade
Various Kenyan NGOs actively promote organic
agriculture by establishing demonstration farms for
small farmers and extension workers. Certified
production for export is in its infancy; the
cer ti fi ca tion of maca damia nuts (by a German entity)
started in 1996. Organic vegetables, dried legumes
(beans), tea and cotton are also pro duced.
With two weekly open-air markets in Accra, the
national market is growing. The export trade with the
Euro pean Union is prom ising.
The Kenya Institute of Organic Farming (KIOF)
under takes activi ties to create aware ness of organic
farming and carries out training courses on organic
farming techniques. Since 1993, KIOF has been
working on a research proj ect to assess the on- farm
potential of organic farming techniques under
different agro-ecological and socio-economic
conditions.
There is no certification body in the country and
smallholders depend on sponsored international
inspec tion and cer ti fi ca tion. Ghana is member of the
IFOAM African anglo phone group (see Kenya).
Certified macadamia nuts are exported, though no
figures were made available for this study. It is
possible to find organic products locally, but the
market is very small.
72
Kenya is member of IFOAM’s anglo phone African
group, which has its seat at KIOF.
Fax: +254-2-521001
Certification
KIOF
(Kenya Institute of Organic Farming)
PO Box 34972, Nairobi
Tel: +254-2-583194; +254-2-583383
Fax: +254-2-583370
There are no national stan dards for organic farming.
However, the Kenya Organic Farmers’ Association,
which is in the process of being formed, plans to draw
up organic stan dards. In coop era tion with the United
King dom’s The Soil Asso cia tion, the Asso cia tion for
Better Land Husbandry (ABLH) has started
developing standards, which will be based on the
standards of The Soil Association but adapted to
con di tions in Kenya.
Potential
There is no doubt that Kenya has good possibilities
for the further production and trade in organic
prod ucts. It is believed that it has good con di tions for
pro ducing sesame seed, and fresh and dried fruits, for
which reason a trade promotion programme was
ini ti ated in 1997. It also has favour able con di tions for
cotton production and a related programme was
started in 1997.
Kenya has an excellent supply base and an existing
export infrastructure (it is already a significant
exporter of conventionally produced fruits and
vege ta bles, flowers and other prod ucts). Fur ther more,
there seems to be great interest in organic agri cul ture
among farmers, extension agents, NGOs and other
associations.
Several activities are already being undertaken,
including the training of stu dents and research. Some
collaboration will take place with a GTZ
agro-forestry project, covering, for example, the
planting of mango trees.
SACDP
(Sustainable Agriculture Community Development
Programme)
PO Box 44752, Nairobi
Fax: +254-2-331276; +254-2-225725
Madagascar
Production and certification
The controlled production of organic food products
in Madagascar began in 1990 in collaboration with
the German company Rapunzel and the French
com pany Man timex. The first cer ti fied prod ucts were
oils (palm oil, coconut oil), cashew nuts and spices
(vanilla). Today several producers are certified by
Ecocert.
The product groups currently produced (with some
exam ples of spe cific items) are listed below:
q
Cocoa;
q
Coffee;
q
Essential oils;
q
Fruits, dried (orange, papaya, pineapple, mango);
q
Fruits, fresh (apples, passion fruit, litchis,
gooseberries);
q
Useful addresses
Fruits, processed (fruit juices and pulp of
pineapple, mango, papaya and banana);
Export Promotion Council
Anniversary Towers 1st & 16 th Floors
University Way
PO Box 40247
Nairobi
Tel: +254-2-228 534
Fax: +254-2-218 013, +254-2-228539
q
ITFSP
(Integration of Tree Crops into Farming)
ICRAF House, UN Avenue
c/o GTZ Office
PO Box 47051, Gigiri
Tel: +254-2-522887
q
Sugar cane, sugar cane molasses and syrup;
q
Vegetables, fresh (green beans).
Herbs and spices (vanilla, clove, allspice,
pepper, nutmeg, mace, cinnamon, ginger, chilli);
q
Honey;
q
Oil crops (coconut) and oils (coconut, pine,
palm, geranium, lemon grass, green pepper);
Some new processing activities are starting,
including a joint ven ture with a French com pany.
The producers include both small to medium-sized
family-run farms and larger plantations. Some of the
latter are State- owned, pro ducing coco nuts for instance;
others are privately owned and produce palm oil, for
example. Around 1,000 farm fami lies are thought to be
involved in the pro duc tion of organic prod ucts.
Trade
Organic products are produced mainly for export;
Ger many is a major market. The failing infra struc ture
has impaired Madagascar’s export potential
con sid erably. Some exporters and the prod ucts they
handle are listed below:
Exporter
Agrico
Agropole
Location
Antananarivo
Tamatava
Product
Fruits and essential oils
Edible oils
ExpamAntananarivo
Homeopharma
La Bouffe
Antananarivo
Millot
Antananarivo
Pharmaceuticals
Pabiom
Phael Flor
Antsiranana
Antananarivo
Vanilla and essential oils
Essential oils
Satrana
Taomasina
Rum
Exotic fruits and spices
Spices, cacao and coffee
PROMABIO, a company in Antananarivo,
coor di nates the activi ties of organic exporters.
Useful address
PROMABIO
Lot II N 184 Ter Besarety, RM-Antananarivo
Tel: +261-20-2242499
Fax: +261-20-2226921
(Exporting)
Malawi
Production, trade and certification
Shire Highlands Organic Growers Association
(SHOGA) is the main promoter of organic
pro duc tion and trade in Malawi. Founded in 1995, it
has 13 active mem bers and a number of small- farmer
associate members. These members are primarily
engaged in the production of organic herbs and
spices. The bulk of pro duc tion is car ried out at two of
the larger farms, on certified areas of 30 and 50
hec tares respec tively. Herb proc essing and pack aging
facili ties for export have been set up.
Several other small independent organizations and
NGOs are inter ested in pro moting organic farming in
the country.
73
Malawi’s output includes bambara nut, beans of
various kinds, cal en dula, cay enne pepper, chamo mile,
chilli, coriander seed, cumin, dill, echinacea and
annato, fennel, ground nuts, hibiscus, lav ender, lemon
grass, lemon ver bena, melissa, pigeon pea, rose mary,
sesame seed, sunflower seed and sugar cane. These
products are exported by two of SHOGA’s larger
mem bers (see above). Their main market is Ger many;
the United Kingdom and the United States are also
export des ti na tions. Some prod ucts have likewise been
sent to Zimbabwe. The export trade is organized
through SHOGA.
The cold pressing of oils is sched uled to start in 2000,
and a still for essen tial oils is planned.
There seems to be a small domestic market for
cer ti fied and non- certified organic prod ucts. Organic
honey, for instance, can be found in one local store.
Ecocert takes care of inspection and certification.
There are no local inspec tion or cer ti fi ca tion bodies,
and no offi cial stan dards for organic farming.
Potential
Malawi has good con di tions for the pro duc tion of a
wide range of tropical, subtropical and certain
tem perate zone crops.
In addition, SHOGA can provide technical advice
and assistance on organic farming, market access,
and arranging and preparing for inspection and
certification. Some members have considerable
experience and expertise in the production,
inspection and export of organic products. Malawi
therefore has a good potential for the further
development of organic production and trade,
including that of new products, e.g. organic food
additives and organic pesticides.
Useful addresses
Lipangwe Organic Manure Demonstration Farm
PO Box 26, Matale, Ntcheu
Fax: +265-671427
MEPC
(Malawi Export Promotion Council)
Delamere House, Victoria Avenue
PO Box 1299, Blantyre
SHOGA
(Shire Highlands Organic Growers Association)
PO Box 930, Blantyre
74
Tel: +265-671355/671182
Fax: +265-671427
(Production, processing, trade)
Mali
Organic agri cul ture in Mali has just begun.
Useful address
GRAT
(Groupe de recherches et d’applications techniques)
BP 2502, Bamako
Tel/Fax: +223-224341
Perpignan for distribution throughout EU. A major
brand is ECOFARM, marketed, among others, by the
growers Kohar sa in Taroudant.
Certification is carried out by the German leg of
Eco cert, Eco con trol GmbH.
Useful address
Magrebio
5, Route Inara
Hay Lelbahja
Tel: +212-4492104
Fax: +212-4492101
(Development
Mauritius
Mozambique
Organic sugar has been pro duced since 1991 and has
mainly been cer ti fied by the British cer ti fi er OF&G.
Among the other products are fresh fruits (litchis,
pineapples, mangoes) and spices (chilli paste,
pepper).
In 1995, 650 tons, mainly of cane sugar, were
exported from three farms with a total area of around
175 hec tares. The area has since been reduced owing
to lower yields and the higher costs of weed con trol.
The United Kingdom and France are the main
customers.
Mauritius is member of IFOAM’s anglophone
African group (see Kenya).
Some nuts are being pro duced. Cashew nuts are an
example.
Useful address
AMRU
(National Asso cia tion for Rural Women
Development)
PO Box 1892, Maputo
Tel: +258-1-422809
Fax: +258-1-422893
(Pro duc tion, devel op ment)
Nigeria
Organic agri cul ture in Nigeria is at its ini tial stages.
Useful address
IOAEN
(Indian Ocean Agro-Ecology Network)
11, Royal Street, Mont Ida
Tel/Fax: +230-4165080
(Control, development)
Morocco
Production includes fresh fruits (citrus, which has
become an impor tant export to the Euro pean Union);
fresh vegetables (such as tomatoes); dried fruits
(dates); olives; dried leg umes; spices and herbs (basil,
mar joram).
There is no formal domestic market as yet. All
produce is exported to the European Union. In the
past this was done through Bio-Maroc, an
organization that is no longer in existence.
Nowadays, the trade is handled by the individual
growers who sell mainly to French importers in
Useful addresses
Regfoss Green Commission
7, Murtala Mohammed Way
Jos, PO Box 531, WAN-Jos Plateau State
Tel: +234-73-454668
Fax: +234-73-55202
Village Pioneer Project
PO Box 1622, Akure, Ondo State, WAN-Nigeria
Senegal
In Senegal, several NGOs pro mote organic farming
practices among smallholders. Self-sufficiency in
food is the pri mary goal and exporting the sec on dary
objective. Fruits (mangoes) and vegetables are
among the main products with export poten tial. Initia tives are being taken to set up a national cer ti fi cation body.
Senegal has good poten tial for the pro duc tion of fresh
fruits like papayas and melons, dried fruits, cashew
nuts and cotton.
Useful addresses
Agrecol Afrique
BP 234, SN-Mbour
Tel: +221-9563215
Fax: +221-9564202
ASPAB
(Association sénégalaise pour la promotion de
l’agriculture biologique)
BP 412, SN-Thiès
Tel: +221-511237
(Production, certification)
PRONAT ENDA
54 rue de Carnot, BP 3370, SN-Dakar
Tel: +221-225565,
Fax: +221-8222695
Sierra Leone
75
imports from Zim babwe. Borneo Fruit in Lady brand
and Kirlington Organic Farm in Ficksburg are
prominent fruit exporters, Meadowsweet Farm in
Win terton exports herbs, spices and herbal tea to the
European Union (e.g. to Denmark, France, Sweden
and the United Kingdom).
Among the other pro ducers are Organic Herbs Farms
(Cape Town) and Coetzee and Coetzee in Kuils rivier.
The main whole saler is Uni foods in Durban.
The local South African market is developing. Organic
foods are sold in a number of specialized stores.
Supermarket chains such as Shoprite Checkers, Pick
n’Pay, Woolworths and Hyperame sell some organic
foods, mainly in their health food sec tions.
Particularly around Johannesburg, much of the
production and local trade is coordinated by
Wensleydale Farms. They supply a wide range of
fruits, berries and vegetables to some supermarkets,
e.g. Pick n’ Pay, as well as direct to private customers.
Products are labelled ‘organically grown’. In the
same area, there is a weekly open market for organic
produce.
Sierra Leone has taken its first steps towards
devel oping an organic sector.
Certification
Useful addresses
There is no legislation on organic production and
labelling.
FOE
(Friends of the Earth in Sierra Leone)
PM Bag 950, 33 Robert Street, WAL-Freetown
Tel: +232-22-226511
Fax: +232-22-224439
KEIOF
(Kenema Institute of Organic Farming)
9 Hangha Road, PO Box 165, Kenema
Fax: +232-22-229076
South Africa
Several foreign certifiers, including The Soil
Association, Ecocert and SKAL, are active in the
country. Discussions are also taking place on the
setting up of a local certification programme.
Useful addresses
BDAASA
(Bio Dynamic Agricultural Association of South
Africa)
PO Box 115, ZA-Paulshof 2056, Sandton
Tel: +27-11-8031688
Fax: +27-11-8037191
Over the last few years South Africa has gained
importance as a producer and exporter of organic
products. Its output includes fresh fruits (mangoes,
avocados, litchis), vegetables, herbs and spices, and
cane sugar. There are about 35 organic growers in all.
South Africa exports and imports organic products.
For instance, it exports to the European Union and
OAASA
(Organic Agricultural Association of South Africa)
Box 1975, ZA-Kelvin 2054
Tel/Fax: +27-11-7062672
(Control, certification)
Organic Herb Farms
601 Costa Brava, 299 Beach Road
PO Box 4336, Cape Town
76
Tel: +27-21-4397816
Fax: +27-21-4394732
(Production and trade)
Wensleydale Farms
Bryanston 2021
PO Box 71085
Tel: +27-12-6500064
Fax: +27-12-6500207
Western Cape Organic Agricultural Society
PO Box 611, Stellenbosch
Tel/Fax: +27-21-8548904; +27-083-4614567
Sudan
Organic agri cul ture in the Sudan has just begun. Its
output includes fresh fruits (citrus), oil crops ( sesame
seed), grains and poultry prod ucts.
Tanzania, United Republic of
Production, trade, certification
Some of this country’s output by product group are
listed below; some exam ples of spe cific prod ucts are
also given.
q
Cotton;
q
Essential oils (lemon grass);
q
Fruits, dried (banana, pineapple, mango,
papaya);
q
Fruits, fresh (citrus, papaya, guava, mango);
q
Herbs and spices (cinnamon, ginger, vanilla,
chilli, pepper, nutmeg, cardamom, clove, curry,
lemon grass);
q
Honey;
q
Nuts (peanuts, cashew nuts);
farms and one company were certified to EU
standards. They included one tea plantation of 230
hec tares, a pri vate farm of 350 hec tares, a farm of 40
hectares producing essential oils, and an enterprise
that pro duces spices on around 300 hec tares on the
basis of land leases and con tracts with small holders.
These four enter prises have so far exported black tea,
hibiscus tea, essen tial oils and spices. Since 1995, an
increasing number of farmers have started pro ducing
essen tial oils and spices. Some packing of spices and
cracking of cashew nuts take place.
A certain amount of cotton is produced under the
aus pices of a tex tile com pany that has con tracts with
small-scale cotton producers. The company also
organizes certification, processing into cotton yarn
and exporting. The yarn is exported to Swit zer land.
One company, Kimango Farm Enterprises Ltd (in
Moro goro) exports herbs and spices, fresh and dried
fruits (papayas, mangoes, guavas), herbal tea and
other products. Zanz-Germ Enterprises (Zanzibar)
exports a wide variety of herbs and spices. The
Zan zibar State Trading Cor po ra tion, also in Zan zibar,
exports essen tial oils.
Sev eral NGOs pro mote organic cul ti va tion prac tices
in the country by training small holders and exten sion
workers. The Tan za nian Society of Organic Farming
(KIHATA), an umbrella organization of groups
working on sustainable agriculture, has been
estab lished.
Much of the coun try’s output is cer ti fied by Euro pean
bodies like IMO and The Soil Asso cia tion. There is a
local inspector in Zan zibar, and inspec tors from Kenya
and Zambia are also used. The United Republic of
Tan zania has no offi cial organic farming stan dards.
Potential
q
Tea (black tea, hibiscus tea);
The country appears to have good potential for
organic pro duc tion. How ever, farmers need training
and there are sev eral hur dles to be over come in order
to increase exports, especially in relation to
infra struc ture and product quality.
q
Vegetables, fresh (peas);
Useful addresses
q
Oil-seeds (sunflower) and oils (palm oil,
sunflower oil);
q
Vegetables, processed (garlic and onion
powder).
In all, more than 4,000 hec tares have been cer ti fied
organic and this area is increasing. In 1993, three
Board of External Trade
Trade Fair Grounds
PO Box 5402, Dar es Salaam
Tel: +255-51-851706
Fax: +255-5-851700
KIHATA
(Chama Cha Kilimo Hai Tanzania)
PO Box 208
c/o Kilimo Cha Mseto, Peramiho
Fax: +255-6352917
Kimanga Farm Enterprises Ltd
PO Box 642, Morogoro
Fax: +255-56-4714
Swedish Export Promotion of Organic Products
from Africa (EPOPA) Programme
PO Box 71393, Dar es Salaam
Tel: +255-51-131205; +255-51-118239
Fax: +255-51-131205
Zanz-Germ Enterprises Ltd
PO Box 3369, Zanzibar
Tel: +255-811-326440
Fax: +255-811-321072
Togo
Production includes fresh fruits (bananas, mangoes)
and dried fruits (pineapples, papayas, mangoes),
processed fruit, oil crops (coconuts), stimulants
(coffee and cacao) and spices (ginger).
Useful addresses
ASDEB
(Action solidaire pour un développement entretenu
à la base)
Rue No 106, Avenue Togo-Gaz, BP 3771, Lomé
Tel/Fax: +228-227427
(Development)
GJED
BP 536, Kpalimé
Tel/Fax: +228-410280 and +228-410076
Tunisia
Production includes fresh fruits (citrus) and
vegetables (tomatoes), dried fruits (dates), nuts, oil
crops (olives) and herbs. Some farms use bio dy namic
farming methods. Several Italian and German
importers have set up organic proj ects in Tunisia.
Exports to the European Union are rapidly
increasing. Medifruit in Borj Cedria and WTCO in
Kebill are date exporters.
Tunisia is member of the AgriBioMediterraneo
group (see Italy).
77
Useful address
ITTA
(Institut tunisien de technologie appliquée)
BP 61, 4042 Chatt Mariem
Tel/Fax: +216-3-210188; +216-1-276656
Uganda
Uganda produces fresh fruits and vegetables
(pine ap ples, pas sion fruit, bananas, avo cados), roots
and tubers (sweet pota toes), dried fruits (pine apple),
oil-seeds (sesame, sunflower), dried legumes (soy
beans), coffee, cocoa, herbs and spices (vanilla,
ginger, chilli), and honey.
More than 30 organizations promote the organic
production of a variety of items, including dairy
products in Bukonyo county. One of the largest
ventures is the Lango cotton proj ect, in which 5,000
farmers participate. The Department of Social and
Economic Development (SED) carries out training
programmes in rural communities and has a
dem on stra tion farm. Most of the farmers trained have
diver si fied their pro duc tion. There are also Good Food
(see the Netherlands) projects producing dried fruits
and edible nuts.
One com pany has been exporting fresh tropical fruits
and vegetables from controlled organic farms on a
contractual basis since 1993. Among the country’s
export products are certified organic cocoa, coffee,
ginger, pine ap ples, sesame and sweet bananas.
Certification
There are no offi cial stan dards for organic farming in
Uganda and no local inspection or certification
bodies. Among the inter na tional inspec tion agen cies
active in the country are IMO, KRAV and SKAL.
Both KRAV and SKAL have trained local inspec tors
in order to cut costs.
Potential
Uganda has good natural conditions for organic
agriculture and many crops can be grown. Much of
the agricultural land is cultivated by smallholders
without recourse to agro-chemicals, and traditional
mixed farming sys tems remain in use in some places.
78
How ever, because of increasing pres sure on the land,
tra di tional farming sys tems may not be sus tain able in
many places in the long run. The main export
constraint is the lack of companies with enough
capital to buy organic products for export and to
arrange for cer ti fi ca tion.
company, Four Seasons, has a product range that
includes soy products, peanut butter, herbs and
spices, herbal teas, essential oils, sauces, pastas,
jel lies, grains and pulses. Its output is cer ti fied by the
British cer ti fier Organic Farmers & Growers Ltd, and
is exported through distributors in Europe, North
America, Aus tralia, Japan and South Africa.
Useful addresses
DENIVA
(Development Network of Indigenous Voluntary
Associations)
PO Box 11224, Kampala
Tel: +256-41-531150; +256-41-530575
Fax: +256-41-531238
SANU
(Sustainable Agriculture Network of Uganda)
PO Box 281, Kampala
Tel: +256-41-530575
Fax: +256-41-531236
Uganda Export Promotion Board
Plot 17/19 Jinja Road
PO Box 5045, Kampala
Tel: +256-41-230250; +256-41-259779
Fax: +256-41-259779
Zambia
Zambia produces some organic products, including
honey.
Useful address
Export Board of Zambia
Fifth Floor, Woodgate House
Cairo Road, South End, Lusaka
Tel: +260-1-228106; +260-1-228107
Fax: +260-1-222509; +260-1-222259
Zimbabwe
In 1993, some farmers started to grow commercial
organic prod ucts and organ ized them selves into the
Zimbabwe Organic Producers Association (ZOPA),
now ZOPPA. The area under production is about
1,000 hectares. Out puts include essen tial oils, herbs
(e.g. basil), spices and spice preparations (barbecue
seasonings, cayenne pepper), fruits, soy beans and
cocoa. Certification is carried out by a British
certificationbody.
Under the Nature Farming Network of Zimbabwe,
around 10 NGOs work together in organic
agriculture, mainly for home consumption. One
Several firms have started mar keting their prod ucts
packed for final consumption under various brand
names. Around 50% of the certified production is
exported, the rest is mar keted in- country. In addi tion
to Europe, Aus tralia, the United States and Canada,
South Africa is a significant importer of organic
prod ucts from Zim babwe.
Useful addresses
Africa Centre for Holistic Resource Management
PO Box MP 266, Mt. Pleasant, Harare
Tel/Fax: +263-4-732360
Four Seasons Foods
P. O. Box AY 56, Amby-Harare
Tel: +263-4-487832; +263-4-487559
Fax: +263-4-486178
(Production, trade)
Horticultural Promotion Council
Agricultural House
Corner Adylins Road/Mulbury Drive
POB WGT 290 Harare
Fax: +263-4-309853
(Supports organic agriculture)
Nature Nurture (Pvt.) Ltd
Private Bag 2003, Ruwa
Tel: +263-73-2771/2
Fax: +263-73-2321
(Production)
NFN
(Nature Farming Network)
8 Elseworth Avenue
Box CY 301, Causeway-Harare
Tel: +263-4-731541
Fax: +263-4-723056
(Development)
ZOPPA
(Zimbabwe Organic Producers and Processors
Association)
PO Box BW1011, Borrowdale
Tel/Fax: +263-14882094
(Production, processing, trade)
Other countries in Africa
In December 1998, there appeared to be no cer ti fied
organic agriculture in the following countries:
Angola, Bot swana, Cen tral African Republic, Chad,
Congo, Djibouti, Equatorial Guinea, Eritrea,
Guinea-Bissau, Lesotho, Liberia, the Libyan Arab
79
Jamahiriya, Mauritania, Namibia, Niger, Rwanda,
Western Sahara, Sao Tome and Prin cipe, Sey chelles,
Somalia and Swa zi land.
How ever, ini tia tives may have been taken in some of
these coun tries to develop organic farming.
Asia
Organic pro duc tion takes place, though gen er ally on
a very small scale, in most Asian countries. It is
prac tised to reach self- sufficiency in food, to improve
soil fertility, or to engage in the export trade. It is
organized by individual farmers, farmers’ and
women’s organi za tions and a wide variety of NGOs.
In almost all countries local distribution is a huge
problem. Often, it does not exist or is impro vised and
generally provides no price premium. Access to
technical assistance and reasonable forms of credit
remains dif fi cult. Israel, Japan and, to a much lesser
extent, Malaysia and the Philippines have
distribution systems involving supermarkets as well
as spe cial ized stores. Israel and Turkey are impor tant
producers of a variety of food prod ucts, but mainly
dried and fresh fruits and vegetables, and nuts.
Among the other sig nifi cant pro ducing coun tries are
China, India, the Republic of Korea and Sri Lanka;
their output includes cocoa, coffee, essential oils,
herbs and spices, peanuts, rice, tea and vanilla. The
Asiatic areas of the Russian Federation have some
pockets of impro vised organic agri cul ture without a
structured market. Israel and Japan have become
organic importers as well as exporters.
Bangladesh
Certification becomes an issue if organ ized national
or export mar kets are to be devel oped. China, India,
Israel and Japan have well-established control and
certification bodies; some other countries are
establishing similar entities. Nevertheless, foreign
con trol and cer ti fi ca tion bodies remain active in Asia
since only Israel has so far obtained equiva lency with
the stan dards of the Euro pean Union.
From 1995 to end-1997 the area under certified
organic production increased from around 450
hectares to about 4,000 hectares. In addition, about
10,000 hec tares in the wild have been cer ti fied. China
produces about 40 items within the product
cate go ries listed below; sample items are also given.
Azerbaijan
Initial steps are being taken to develop organic
farming. One project, which produces apples, is on
the verge of being cer ti fied by SKAL.
Bang la de sh’s organic output includes herbs and tea.
Useful addresses
PROSHIKA-PRO-Training
SHI-Education, KA-Action
Central Training Center, PO Koilla
Dist. Manikgonj
Tel: +880-2-09333127
Fax: +880-2-805811
SCI Bangladesh
Moudubi Health & Agriculture Development
Project
6/5 Sir Syed Road, 1E floor, Block A
Mohammedpur, Dhaka 1207
Tel/Fax: +880-2-9113623
Fax: +880-2-810254
(Production)
China
Production
q
Fruits, processed fruit ( juices);
q
Fruits, fresh (apples);
q
Grains (rice, wheat, buckwheat, maize);
q
Herbs and spices (ginger);
q
Honey;
80
q
Legumes, dried (soybeans, beans);
q
Nuts (chestnuts, walnuts, peanuts);
q
Oil crops (sesame, pumpkin, sunflower) and oil;
q
Tea;
q
Vegetables.
China also offers specialties like sea-buckthorn oil,
con cen trate and powder.
developed standards for production, processing and
labelling; has set up inspection, certification,
research, extension and training facilities; and has
initiated a promotion network. It is now the main
Chinese certifier. SKAL (of the Netherlands) and
OCIA (of the United States) have con trib uted to the
devel op ment of cer ti fi ca tion in China. The German
BCS, the Swiss IMO and the American QAI (Quality
Assurance International) are also active in this field.
Potential
Trade
The domestic organic market is being organized
under the initiative of the China Green Food
Development Centre and others. Production is
strongly export- oriented. The first fully organic food
trading com pany, Winged Ox Organic Food Co. Ltd,
was formed in 1995 and since then four other
companies have been established. The overall
turnover has risen almost tenfold in recent years to
reach an esti mated $600 mil lion in 1997/98.
A growing array of products is finding markets in
Europe, Japan and the United States. Records show
that certified organic tea was exported to European
coun tries by the Import and Export Tea Cor po ra tion
of Zhejiang Province as early as 1994. Organic
soybean was exported to Japan for the first time in
1994. Some exporting com pa nies and their prod ucts
are listed below:
q
China Environmental Organic Food Company
(Beijing): corn, peanuts, rice, sesame and spices;
q
Hei Agriculture Cultivation International
Organic Food Development Co., Ltd (in the Dalian
free tariff zone): produces and exports grains,
oleaginous seeds, pulses, soy and vegetables;
q
Huan En Organic Food Trading Co. (Dalian
development zone): exports soy to Japan;
q
Naturex Organic Foods Ltd (Jiangsu): dried
fruits, edible oils, Suzhou noodles, sweets;
q
Winged Ox Organic Food Co. Ltd (Nanjing):
peanuts, seeds, soy.
Certification
In 1994, the Chinese National Environmental
Protection Agency established the Organic Food
Development Centre (OFDC). The Centre has
China has an enormous potential as a producer of
organic products. A survey has indicated, for
instance, that around 30% of the tea pro duced in the
moun tainous regions of Anhui and Zhejiang could be
turned rela tively easily into organic prod ucts.
Useful addresses
CGFDC
(China Green Food Development Centre)
15, Guangximen Beili, Xibahe
Chaoyang District, Beijing 100028
Tel: +86-10-64227205
Fax: +86-10-64221175
(Development)
China Dalian Free Tariff Zone
Hei Agriculture Cultivation International Organic
Food Development Co., Ltd
12-4 Qing Song Bel Economy and Technology
Department Zone
Dalian 116600
Tel: +86-411-7605917
Fax: +86-411-7602447
(Production and trade: soy, oleaginous seeds, pulses
and vegetables)
ICAIRD
(Intercontinental Centre for Agro-ecological
Industry Research)
17-206 Xijadatong, Golou, Nanjing 210008
Tel: +86-25-3602748
Fax: +86-25-3602748
(Research, control)
JROFT
(Jiangsu Ruikang Organic Food Trade)
66-1 Chengxian Street, Nanjing 210018
Tel: +86-25-7712445
Fax: +86-25-3356700
(Processing, trade)
NA - Produce Green Foundation
18, Hok Tau Village, Hong Kong, Fanling N.T.
Tel: +852-6741190
Fax: +852-6748077
Web site: www.producegreen.org.hk
NOF
(Naturex Organic Foods Ltd of Jiangsu)
233 Binhe Rd., Suzhou New District
Suzhou 215011
Tel: +86-512-8254247
Fax: +86-512-8251347
OFDC-SEPA
(Organic Food Development Centre of China)
8 Jiangwangmiao Street
PO Box 4202, Nanjing 210042
Tel: +86-25-5412926
Fax: +86-25-5420606
E-mail: [email protected];
[email protected]
Winged Ox Organic Food Co. Ltd
85 Huju Road, Nanjing 210013
Tel: +86-25-3737169
Fax: +86-25-3710549
Cyprus
Cyprus has two organic producers. Yiallourou has
eight hec tares of vine yards with an output of 17,000
bottles of organic wine a year; it is controlled and
certified by SKAL. The second produces a small
quan tity of aro matic herbs, which are not cer ti fied.
Useful address
Oekologiki Oenotechnia Yiallourou
PO Box 1827, CY-Limassol
Tel: +357-5-242730
Fax: +357-5-359009
(Production, trade)
Georgia
Organic agriculture is at an early stage.
India
Production
Lord Albert Howard, one of the founding fathers of
organic agriculture, developed his first composting
methods in India around 1910. Organic agriculture
gained impetus in the 1980s and now India pro duces
a wide variety of organic prod ucts such as fresh and
dried fruits (pineapples, bananas, pears), processed
fruit (mango con cen trate), vege ta bles, nuts (cashew,
81
pea nuts), oil crops (sesame, coconut), dried leg umes,
grains (rice), coffee, sugar cane, herbs and spices and
other prod ucts. India is best known for its organic tea,
of which it has numerous varie ties.
Trade
The home market is small and mainly informal.
Production is largely export-oriented, with markets
including the Euro pean Union, the United States and
Japan. The number of organic traders is growing
rap idly. Among them are the Amboothia Tea Group
and Godfrey Phillips India Ltd, both based in
Cal cutta and both exporters of tea. Another exporter
is Enfield Agro base Pvt Ltd of Madras which trades
in nuts, pea nuts, sesame, rice and dried fruits.
Certification
ENCON, formed in collaboration with The Soil
Asso cia tion, cer ti fies Indian pro duce as well as those
from some neigh bouring coun tries. Sev eral Euro pean
and American inspec tion cer ti fi ca tion bodies are also
active. The Swiss IMO has estab lished a sub sidiary in
India (IMO Con trol).
It is believed that India has tre men dous poten tial as a
producer of organic products and further efforts to
develop it are expected in the near future.
Useful addresses
ENCON
PO Box 575, Kanchan Nagar
Nakshatrawadi, Aurangabad 431002
Tel: +91-240-332336/322828
Fax: +91-240-322866
(Certification)
Ginni Exports
14 Madan Chatterjee Lane, Calcutta 700002
Tel: +91-33-2320138
Fax: +91-33-2330915
(Production, trade)
IIRD
PO Box 12, Nakshatrawadi
Aurangabad 41300, Maharashtra
Tel: +91-240-332336
Fax: +91-240-331036
(Consultancy, development)
IMO Control
Umesh Chandravekhar 1037
29A Cross Rd, Jayanagar, Bangalore 560082
Tel/Fax: +91-80-6651772
82
IOAM
(Indian Organic Agricultural Movement)
25/1, Yeshwant Niwas Rd, Shreesh Chamber
Indore DIN 452003
Tel: +91-731-536813
Fax: +91-731-432869
(Inspection, certification)
Iraq
Organic agri cul ture is in its early stages.
Useful address
ZQVP, Zakho Projects
University of Dohuk, College of Agriculture
Abid Ali Hassan, Dohuk, Kurdistan
Tel: +964-62-682623815
Fax: +964-62-682623816
Indonesia
Israel
In 1995, Indo ne sia’s output of organic food stuffs was
insignificant. It consisted of wild fruits, vegetables,
grains (rice), coffee and spices (vanilla, cinnamon,
cloves) and herbs. Since then production has taken
off, and vanilla has become an export crop. Further
devel op ments are expected to take place.
Useful addresses
Biotani Pan Indonesia-Biodinamika Pertanian Pan
Jl. Persada Raya NE 1
RI-Menteng Dalam, Djakarta 12870
Tel/Fax: +62-21-8296545
OAADC
(Organic Agriculture & Agroforestry Development
Centre)
Sribhawono RT/ 05/RW 02 Labuhan Maringgar
RI-Kabupaten Lampung Tengah, Lampung 34199
Tel: +62-21-8293967 and 8318967
Fax: +62-21-8293967
PPLH Seloliman
(Pusat Pendidikan Lingkungan Hidup)
PO Box 03
Trawas, Mojokerto
61375 East Java
Tel/Fax: +62-343-80884
Web page: http://www.webcom.com.com/pplh
Islamic Republic of Iran
Organic agriculture is in its initial stages of
devel op ment in this country.
Useful address
College of Agriculture, Ferdowski University
PO Box 91775-1163, Mashhad
Tel: +98-51-8108635 or +98-51-822939
Fax: +98-51-815845
In the beginning of 1999, Israel had close to 250
organic farms on roughly 2,100 hectares of land. In
terms of their products, the farms are distributed as
fol lows (some have sev eral cate go ries of prod ucts):
No. of farms
125
Products
Vegetables
Yearly volume
11,500 tons
Fruits
6,500 tons
50
Field crops
18,000 tons
27
30
Citrus
Livestock
17,200 tons
3 million litres of milk,
10 million eggs,
150 tons of meat, honey
110
Among the fresh vege ta bles, roots and tubers pro duced
are carrots, celery, cherry tomatoes, Chinese cabbage,
cucumber, fennel, garlic, iceberg lettuce, onions,
potatoes (early), sweet corn, sweet potatoes, tomatoes
and zuc chini. Fruits include avo ca dos, bananas, citrus,
dates, grapes, man goes, melons and papayas.
Bio dy namic farming is also prac tised.
The country has about 20 packing houses; it also has
proc essing plants pro ducing fruit juices, for example.
Both North America and the Euro pean Union import
fresh produce from Israel, especially fruits and
vegetables. The country has an effi cient pro duc tion
and marketing system, for the larger part based on
collaboration between farmers and the State.
Marketing is carried out by Agrexco, which has
sub sidi aries in France, Ger many, the Neth er lands, the
United Kingdom and the United States.
About 16,000 tons of field crops, 13,000 tons of
citrus, 5,000 tons of fruits, 3,000 tons of vege ta bles,
and all of the livestock prod ucts are sold in Israel’s
83
health food stores, local markets and supermarkets,
or are proc essed. The bal ance is exported.
q
Pickles and fermented apricots (umeboshi);
q
Sake (rice wine);
Various organic products are imported by about 10
importers.
q
Soy sauces like tamari and shoyu;
Israel has its own organic regulations, which have
obtained equiva lency with EU stan dards. It has its own
certification agency, IBOAA (Israel Bio-Organic
Agriculture Association). IBOAA issues its own
certification label, Biotop. It is seeking IFOAM
accreditation.
Israel is a member of IFOAM’s Medi ter ra nean group,
AgriBioMediterraneo(see Italy).
Useful addresses
Agrexco Ltd
PO Box 20601, Tel Aviv 61206
Tel: +972-3-5630940
Fax: +972-3-5630918
Citrus Bio Organic Growers Association
Kibbutz Gevolut, IL-85525 Kibbutz Gevolut
Tel: +972-7-9983101
Fax: +972-7-9987900
(Production, trade)
IBOAA
(Israel Bio-Organic Agriculture Association)
121 Hahashmonaim St, IL-67011, Tel Aviv
Tel: +972-3-5610538
Fax: +972-3-5618633
(Certification)
Japan
Production
Organic pro duc tion in Japan started in the 1930s, and
has developed strongly since the 1970s. In the two
decades since 1970, an increasing number of
traditional Japanese food producers and processors
have been converting to organic production. These
com pa nies con tinue to export through com pa nies like
Muso in Osaka and Mitoku in Tokyo to mac ro bi otic
circles and natural food shops all over the world.
Their prod ucts include the fol lowing:
q
Miso (a soy condiment);
q
Mochi (a dried paste of steamed rice);
q
Noodles, including the specialities ramen, soba
(buckwheat noodles) and udon;
q
Tea, such as the special teas bancha, kukicha
(twig tea) and green tea;
q
Ume-su (a fermented apricot
genmai-su (whole rice vinegar).
vinegar),
Prod ucts now popular all over the world, such as rice
cake and soy milk, origi nated in Japan.
A fer til izer widely used in organic cir cles in Japan is a
com posted mix ture of rice bran (sup plying cel lu lose)
and okara (a by- product of the soy milk industry and
supplying nitrogen). Organic livestock farming is
non-existent.
There is a very strong partnership, referred to as
tei-kei, between organic farmers and con sumers. The
consumers often supply pre-financing and other
services, and the farmers provide an organic food
basket at affordable prices. It is believed that more
than 1 million Japanese consumers are involved in
the tei-kei. However, no clear standards have been
evolved for the tei-kei output and none of it is
certified.
Manufacturing and trade
Production is aimed at both domestic and export
markets, the national market being estimated at
$1.3 billion-$1.5 bil lion in 1998. There are numerous
organic processors and manufacturers, both small
traditional family enterprises and large companies.
Prestigious traditional companies such as Hatcho
Miso Company and Sendai Company have an
organic line. Health food shops carry organics all
over Japan and an increasing number of
super mar kets have included organic prod ucts in their
assortments. The Jusko retail group carries the
French La Vie brand.
Japan has become a substantial importer of all
organic consumer products, but is extremely
demanding on quality aspects. One of the main
imported raw materials is soy, obtained from the
United States and else where and proc essed into such
products as soy sauces and miso, partly for export.
Large Japa nese com pa nies (for instance, Mit su bishi,
Nissho Iwai and Kirin) are becoming increasingly
involved in the trade. The Organic Bank is a strong
pro moter of the trade.
84
Certification
Japan’s official regulations on organic food
pro duc tion are not clear and are often con fused with
standards for low-input sustainable agriculture.
Private organic standards are in use and the main
certifier is JONA, which frequently works together
with American and Euro pean cer ti fiers.
Useful addresses
Japan External Trade Organization (JETRO)
2-5, Toranomon 2-chome
Minato-ku, Tokyo 105-8466
Tel: +81-3-3582-570
Fax: +81-3-3582-5670
Web site: http://www.jetro.go.jp
group north of Almaty. Prod ucts are sold locally and
without certification. The Netherlands Agro Eco
Con sul tancy group provides tech nical assis tance.
Useful address
Zhana Zhol
Aytiev Street 96, Almaty
Tel/Fax: +7-3272-509266
Kyrgyzstan
There are several uncertified organic farmers’
ini tia tives. They carry out their own mar keting.
Lebanon
JONA
(Japan Organic and Natural Foods Association)
Aomori-Ken Blas Plaza, Sumitomo Building 5F
2-2-1, Yaesu, Chua-Ku, Tokyo 104-0028
Tel: +81-3-52017003
Fax: +81-3-32710701
Organic agri cul ture in Lebanon has advanced to the
stage of being able to export some products to the
European Union and the United States. Some
prod ucts are sold in local health food stores.
Muso Company
3-7-22 Nishitenma, Kita-ku, Osaka 530-0047
Tel: +81-6-6316-6021
Fax: +81-6-6316-6016
Email: [email protected]
(Import, export)
Useful address
NOAPA
(Nippon Organic Agricultural Products)
Fukuroku Bldg, 2-7, Tsukasa-Cho
Chiyoda-ku, Tokyo 101
Tel: +81-3-32955448
Fax: +81-3-32592884
Web page: http://www.yokohama.venture-web.
or.jp/noapa/join.html
(Control, development)
Organic Bank
Shibata Building 3F, 1-5-16 Nihonbashi Bakurocho
Tokyo 103-0002 Chuo-ku
Tel: +81-3-36601637
Fax: +81-3-36601638
Web page: http://www:iijnet.or.jp/organic/
(Trade, development)
Kazakhstan
There are several groups of organic farmers in
Kazakhstan. Among them are a group of 20 farmers in
the moun tainous region in the south- east and another
Lebanon is a member of the IFOAM Medi ter ra nean
group AgriBio Medi ter raneo (see Italy).
MECTAT
(Middle East Centre of Transfer of Appropriate
Technology)
PO Box 113-5474, Beirut
Tel: +961-1346465
Fax: +961-1346465
Web site: http://www.mectat.com.lb/
(Consultancy)
Malaysia
Organic agri cul ture and agro for estry are devel oping
rapidly. Some national distribution of organic
products takes place and the export trade is
commencing.
Useful addresses
CETDEM
PO Box 382, 46740 Petaling Jaya
Tel: +60-3-7757767
Fax: +60-3-7754039
MOFAN
(Malaysian Organic Farming Network)
PO Box 382, 46740 Petaling Jaya
Tel: +60-37757767
Fax: +60-37754039
85
Myanmar
Palestine
Some quantities of grains (Basmati rice) and cane
sugar are pro duced. A cer tain volume is exported, for
instance to Den mark and other EU coun tries.
Pal es tine pro duces organic fruits and vege ta bles. It is
a member of the IFOAM Mediterranean group
AgriBio Medi ter raneo (see Italy).
Nepal
Useful address
The Kanchajunga Tea Estate in Panchtar and other
farms produce some green and black tea, which is
traded by Highland Trading Co. (P) Ltd (located in
Baneskwar, Kathmandu). Some organic herbs and
spices are also produced. Local distribution is almost
non-existent, while the export trade is beginning.
Useful addresses
ECOSCENTRE
(Ecological Service Centre)
Maheswar Ghimire
PO Box 04, NEP-Nrayangarh, Chitwan
Tel: +977-56-23834
Fax: +977-56-20165
(Production and research)
INSAN
(Institute for Sustainable Agriculture Nepal)
Bharat Shrestha
GPO Box 8126, Kathmandu
Tel: +977-1-481305
Fax: +977-1-473276
Pakistan
According to the Pakistan Organic Farmers’
Association (POFA), the country produces organic
cotton; fruits, fresh and dried; grains (rice, corn and
wheat); herbs and spices; nuts; and pulses
(chickpeas).
In the domestic market, sales are made direct from
the farms. The Paki stan Organic Farmers Food Ltd in
Lahore is the main exporter.
Useful addresses
Pakistan Organic Farmers Foods Ltd
76 West Wood Colony, PAK-53700 Lahore
Tel: +92-42-5221707
Fax: +92-42-5220433
(Exporter)
POFA
(Pakistan Organic Farmers’ Association)
78 West Wood Colony, PAK-Lahore 53700
Tel: +92-42-5221707
Fax: +92-42-5220433
(Production)
PARC
(Palestinian Agricultural Relief Committees)
PO Box 25128 Shufat, Jerusalem
Tel: +972-2833818
Fax: +972-2831898
Quattro Department for Organic Agriculture
POB 1080, Nablus
Fax: +972-9382217
Philippines
The Phil ip pines is an impor tant pro ducer of organic
coffee, with an annual output esti mated at 2,000 tons
in the mid 1990s. Addi tional prod ucts include fresh
and dried fruits (mangoes, bananas), grains (rice),
sugar, herbs and spices (black pepper, cloves) and
animal prod ucts (dairy prod ucts).
Part of the sugar from the island of Negros is sold
under fair trade schemes. Local farmers deliver their
pro duc tion to the local refinery. Nearly 400 tons of
sugar are pro duced every year, half of which is sold to
Euro pean fair trade organi za tions, the other half to a
Japanese entity. Exports of other products are also
increasing.
Useful address
ATC
(Alter Trade Corporation)
BLK 6-A, Lily St., Bata Subdivision
RP-Bacolod City 6100
Tel: +63-34-4410051
Fax: +63-34-4410057
(Processing, trade)
OPTA
(Organic Producers’ Trade Association)
235 San Francisco del Monte Avenue
RP-Manresa, Quezon City 1115
Tel: +63-2-9391402
Fax: +63-2-3617695
(Production, marketing, control)
Republic of Korea
The Republic of Korea has been practising organic
farming since the Korean Organic Farming
86
Asso cia tion (KOFA) was estab lished in 1978. KOFA
has more than 17,000 mem bers.
q
Cane sugar;
q
Coconut products;
Sales of organic produce in the domestic market
account for less than 1% of the total trade in farm
prod ucts. Organic prod ucts are sold either directly by
producers to consumers or through supermarkets.
Sales from super mar kets are usu ally proc essed foods.
The export trade is just begin ning.
q
Coffee;
q
Fruits, canned;
Useful addresses
KOFA
(Korean Organic Farming Association)
4th Fl. Sungwon B/D 3-72 Garak Dong, Songpa Gu
Seoul 138-160
Tel: +82-2-406-4462
Fax: +82-2-403-4463
KSOA
(Korean Society of Organic Agriculture)
375-45, Seqyo-Dorig, Mapo-ku, Seoul 121-210
Tel: +82-2-3975628
Fax: +82-2-3975630
(Development)
Saudi Arabia
Health food stores such as the Saudi Health Food
House in Riyadh have a long tradition of carrying
(imported) organic products. Local organic
pro duc tion is emerging.
Useful address
Sunsmile
Saudi Health Growers
PO Box 641, Shaka/Al-Jouf
Tel: +966-46220511
Fax: +966-46221100
Singapore
Organic agriculture is at its initial stages in
Sin ga pore.
Useful address
Pureland Organic Health Farm
50 Chin Swee Rd, 10-06, Thong Chai Bldg
SGP-Singapore 0316
Tel: +65-7387748
Fax: +65-7387749
Sri Lanka
Sri Lanka is one of the world’s leading sources of
organic tea. It also produces other certified organic
prod ucts. These include the fol lowing:
q
Fruits, fresh and dried (pineapples, papayas,
bananas, mangoes);
q
Fruits, juices and concentrates (from pineapple,
mango, passion fruit, papaya);
q
Grains (rice);
q
Herbs and spices (pepper, cardamom, cloves,
cinnamon, ginger).
q
Nuts (cashew nuts);
q
Oil-seeds (sesame seeds, coconut).
In the mid 1990s, 10 enti ties were con trolled according
to EU rules; these cov ered around 15 plan ta tions and
cooperated with more than 100 smallholders. Many
small holders have come together in the Lanka Organic
Agri cul tural Move ment (LOAM).
The Need wood Tea Estate was con verted during the
mid 1980s and certified by Naturland and the
National Association for Sustainable Agriculture
Australia (NASAA). It is one of the oldest organic tea
plantations in the world. One company, Stassen
Natural Foods Ltd, started organic tea production in
1987; by 1995 it was cul ti vating 250 hec tares of land,
with an annual output of around 150 tons. The
company is certified by Naturland and the tea is
exported to Ger many and other Euro pean coun tries,
as well as to Aus tralia and Japan.
Sri Lanka exports its prod ucts mainly to Europe, the
United States, Australia and Japan. National
dis tri bu tion is mostly informal.
Around five European, American and Australian
certification agencies are active in Sri Lanka,
including IMO, NASAA and SKAL.
Selected addresses
Gami Seva Sevana
Office Junction, Galaha
Tel: +94-867201
Fax: +94-8232343 and +94-467299
(Production, trade, development)
Needwood Organic Tea Estate
Haldummulla
Tel: +94-57-8126
Fax: +94-57-8242
SNF
(Stassen Natural Foods Ltd)
PO Box 1919, 833 S.B. Mawatha, Colombo 14
Tel: +94-1-522871 and 522925
Fax: +94-1-522913
Sri Lanka Export Development Board
115 Sir Chittampalam A.
PO Box 1872, 94-1 Colombo 2
Tel: +94-1-438517
Fax: +94-1-438404
(Trade)
Tropical Health Food (Pvt.) Ltd
95 Castle Street, Colombo 8
Tel: +94-1-683956
Fax: +94-1-686670
(Processor, exporter)
Taiwan Province (China)
The Organic World Corporation is an importer and
distributor of organic food in Taiwan Province
(China). It imports organic prod ucts from all over the
world, including Australia, France, Japan and the
United States. It dis trib utes these imports through its
own stores. Organic production is in its first stages.
Useful addresses
Organic World Corporation
No. 60, Wu-Kung 5th Rd.
Wu-Ku Industrial Area, Wu-Ku Hsiang
Taipei Hsien
Tel: +886-2-2989186
Fax: +886-2-2989315
Sheng Chung Industrial Corporation
PO Box 32-22E, Taipei
Tel: +886-2-7316099
Fax: +886-2-7316096
Tajikistan
Although there are iso lated pro duc tion ini tia tives, no
cer ti fied prod ucts are pro duced in the country.
Thailand
87
trade activities as does Green Net, created in 1994.
ACT (Organic Agriculture Certification Thailand) is
involved in certification.
Useful addresses
Bio-Safer
99/220 Tessagbarnsongkraoh Rd
Ladyao, Jatujak, Bangkok 10900
Tel: +66-2-9543120/6
Fax: +66-2-9543128
Green Net
183 Regent House, Rajdamri Road
Patumwan, Bangkok 10330
Tel/Fax: +66-2-6519055/56
(Development and trade)
SGS
(Société générale de surveillance)
GPO Box 429, Bangkok 10501
Tel: +66-2-6781813
Fax: +66-2-6781543
Turkey
Production
By the end of 1997, Turkey had 18,000 hec tares (with
7,500 farmers) under organic production. It is
believed that by the end of 1998 these figures had
increased by roughly 25% and that annual exports
amounted to 50,000 tons. Production is essentially
for export and Euro pean organi za tions like the Good
Food Foun da tion (see the Neth er lands) have been at
the van guard of this devel op ment.
The most important organic prod ucts are dried fruits
(apples, apricots, pears, figs, cherries, mulberries,
peaches, prunes, raisins, currant). Turkey also
pro duces fresh and proc essed fruits and vege ta bles. Its
output includes fruit juices and juice concentrates
(from apple, apricot, pear, cherry), canned fruit, tomato
paste, nuts (apricot kernels, hazel-nuts, peanuts,
almonds, pine- nuts, pis taccio nuts, wal nuts), oil crops
(poppy-seed, olive, sesame), dried leg umes (chickpea,
lentils), grains (wheat), dairy products (milk), herbs
(bay leaf) and honey. Organic cotton is also pro duced.
Thai land pro duces organic grains such as rice. It has a
small domestic market and there are organic shops in
Bangkok and some other areas. Rice is among its
exports.
The German wholesaler Rapunzel has opened a
subsidiary in the country. Turkey is member of the
IFOAM group AgriBio Medi ter raneo (see Italy).
The Alternative Agriculture Network (ANN),
established in 1984, carries out development and
The main export mar kets are the Euro pean Union and
the United States.
88
Turkey has had legislation on organic agriculture
since 1994, and its request for the grant of
equivalency with EC Regulation 2092/91 is
pending. A number of foreign inspection and
certification bodies are active in the country,
including INAC (Germany), IMO (Switzerland),
BCS (Germany), Ecocert (Germany, France) and
SKAL (Neth er lands).
United Arab Emirates
There are several projects for the establishment of
organic farming. Imported organic foods are sold in
health food shops, mainly in Dubai.
Uzbekistan
While there are production initiatives, certification
does not yet take place in Uzbeki stan.
Useful addresses
EGE Ihracatci Birlikleri Genel Sekreterligi
1375 Sok. Nr 25 Kat.3, 35210 Alsancak-Izmir
Tel: +90-232-4218699
Fax: +90-232-4216560
Viet Nam
Organic agri cul ture is just begin ning in Viet Nam.
Useful address
ETKO
(Ekolojik Tarim Kontrol Organzasyonu)
160sk. No. 7 Bornova, 35040 Izmir
Tel: +90-232-3397606
Fax: +90-232-3397607
Ecological Economy Institute
189 B. Tay-Son Street, Dong Da-Hanoi
Tel: +84-48574400
Fax: +84-48572697
REC
(Renewable Energy Center)
Do Ngoc Quynh
Can Tho University, Can Tho
Tel: +84-71838757
Fax: +84-71839250
anaerob@|netnam2.or.vn
ETO
(Ecological Agricultural Organization)
Ekojolik Tarim Organizashyonu Demegi
Ege University, Faculty of Agriculture
35100 Bornova-Izmir
Tel: +90-232-4637551
Fax: +90-232-3881864
(Research, development)
Isik Tarim Ürünleri Sanayi ve Ticaret A.S.
Sair Esref Bulvan No.6/605, 35230 Izmir
Tel: +90-232-4415274
Fax: +90-232-4411931
Web site: http://www.isiktarim.com
(Production, processing and trade)
Other Asian countries/areas
At the time of writing of this study (December 1998),
there was appar ently no cer ti fied organic agri cul ture in
the following countries: Afghanistan, Armenia,
Bahrain, Bhutan, Brunei Darussalam, Cambodia,
Kuwait (import market), Lao People’s Democratic
Republic, Mongolia, Oman, Qatar, Syrian Arab
Republic and Yemen.
Turkmenistan
Although there are some local production
initiatives, no certification takes place as yet in
Turkmenistan.
How ever, ini tia tives may have been taken in some of
these coun tries to develop organic farming.
Oceania
Australia
Australia produces a large number of certified
organic products for the domestic market and for
export. It has close to 1,800 organic farms, including
150 biodynamic ones. It has ample manufacturing
and processing facilities. Specialized organic retail
shops are found in the main urban areas as well as in
some rural zones. One supermarket chain is test
marketing certified organic produce in two States.
89
NASAA
(National Association for Sustainable Agriculture
Australia)
PO Box 768, AUS-Stirling, South Australia 5152
Tel: +61-883708455
Fax: +61-883708381
The main export mar kets are Japan and the Euro pean
Union, the leading export product being fruits.
NASAA, which is accredited by IFOAM, currently
cer ti fies 400 farms cov ering no less than 7.5 mil lion
hectares. These farms produce cereals (including
rice), pulses, fruits (apples, pears, bananas, avo cados
and citrus) and wine. They also raise live stock. About
20% of the farms hold 80% of the acreage, the
farming system being highly extensive on arid or
semi- arid land.
RIRDC/OFA
(Rural Industries Research and Development
Corporation/Organic Federation of Australia)
PO Box 4776, Kingston, ACT 2604
Tel: +61-2-62724819
Fax: +61-2-62725877
Web site: http://www.rirdc.gov.au
Among the other certifiers are the Biodynamic
Research Insti tute, the Bio logical Farmers of Aus tralia,
the Organic Vignerons Association of Australia, Inc.,
and the Organic Herb Growers of Aus tralia Inc.
Fiji
Australia’s organic standards are set out in the
National Standard for Organic and Biodynamic
Pro duce. These are vol un tary for the domestic market
(unless the products are labelled ‘ce rt ified organic’,
but man da tory for the export market. How ever, the
organic industry strongly encourages certification
that is equiva lent to Aus tra lia’s national stan dards. If
an imported product is to be used in a processed
export product, it must be cer ti fied against stan dards
equiva lent to those of Aus tralia.
The Australian Quarantine and Inspection Service
(AQIS) enforces export stan dards, and accredits and
supervises certification bodies. Imports may be
cer ti fied by a cer ti fi ca tion body abroad that has been
accred ited by IFOAM or AQIS, or deter mined to be
equiva lent by an AQIS- accredited cer ti fi ca tion body.
Prod ucts from coun tries whose organic stan dards and
inspection systems are recognized by AQIS as
equivalent to those of Australia may be imported
freely.
Useful addresses
BFA
(Biological Farmers of Australia)
POB 3404, Toowoomba Village Fair
Queensland 4350
Tel: +61-7-46393299
Fax: +61-7-46393755
Web site: http://www.bfa.com.au
Biodynamic Agricultural Association
Poweltown, Victoria 3797
Tel: +61-59667333
Fax: +61-59667433
Organic agri cul ture (e.g. tropical fruit) is in its early
stages in Fiji.
Useful address
FijiAgTrade
Ministry of Agriculture, Fisheries and Forest
Private Mailbag
Raiwaqa, Suva
Tel: +679-384-233
Fax: +679-385-048
[email protected]
New Zealand
Organic agriculture is well developed in New
Zea land. It pro duces the entire range of arable crops
(e.g. cereals, pulses), meat and meat products
(including lamb), fruits and vegetables, and honey,
both for national consumption and for export. The
farms include indigenous Maori cooperatives and
inde pendent family farms. About 50 farms follow the
biodynamic method. New Zea land is experi menting
with organic fish eries as well.
There are suf fi cient proc essing facili ties for prod ucts
such as dairy products, meat products, baby food,
wine, processed and frozen fruits and vegetables,
culi nary oils, sauces and herbal teas. Organic 100 in
Kau ka pakapa pro duces organic fer til izer.
Exports of kiwi fruit, pro moted by the New Zea land
Kiwi Board, are increasing, not with standing growing
com pe ti tion from coun tries like France and Italy. The
company Zespri International exported more than
3,000 tons of kiwi fruit in 1997. Among the other
important export items are apples, pears and lamb.
90
The main export markets are Japan (which absorbs
78% of all exports), and the Euro pean Union.
Total exports rose from NZ$ 7.5 mil lion in 1994/95 to
NZ$ 23 million 1996/97. The leading exporters
belong to the Organic Products Exporters’ Group
(OPEG).
Lincoln University of Christchurch, an important
centre for organic research, was the first Oceanian
host (in 1994) of the biennial IFOAM Scientific
Con fer ence and Gen eral Assembly.
BIO-GRO (Biological Producers and Consumers
Council Inc.) certifies 300 primary producers and
proc es sors; it has been accred ited by IFOAM.
Useful addresses
BDFGANZ
(Bio Dynamic Farming & Gardening Association in
New Zealand, Inc.)
PO Box 306, Napier
Tel: +64-45895366
Fax: +64-45895365
(Production)
BIO-GRO
PO Box 9693, Marion Square, Wellington 6031
Tel: +64-48019741
Fax: +64-48019742
2,000 tons of coffee, 800 tons of copra, 100 tons of
pine apple, 500 tons of cocoa, 1.5 tons of vanilla and
1.2 tons of pepper. Some roasting and packing for
end-consumption takes place in the country. It also
pro duces pine apple juice and tea.
Some farms are managed by Australian and
European farmers. Germany’s Protrade/GTZ has
promoted the conversion of a coffee plantation to
bio dy namic farming. Among the cer ti fied proc essing
com pa nies is a pineapple- juice pro ducer and various
coffee proc es sors.
About 200 tons each of tea and coffee are exported
yearly. The main markets are Australia and the
European Union. Some traders arrange for the
cer ti fi ca tion of the coffee pro duced by small holders.
Australia’s NASAA is the main certifier in Papua
New Guinea.
Tonga
Tonga is a fairly significant producer of vanilla,
which is mainly exported to Europe.
Useful address
TOAA
(Tonga Organic Agriculture Association)
PO Box 14, Nukualofa
Tel: +676-22355
Fax: +676-24271
LEO
Lincoln University Biological Husbandry Group
PO Box 61, Lincoln University, Canterbury
Tel: +64-33252811
Fax: +64-33253855
Other Oceania
Papua New Guinea
In the mid 1990s, Papua New Guinea had 4,265
hec tares under organic farming. Its yearly output was
Organic agriculture is in its initial stages in a few
other countries in Oceania, although certification
does not yet take place in Kiribati, the Marshall
Islands, the Federated States of Micronesia, Nauru,
Palau, Samoa, the Solomon Islands, Tuvalu and
Vanuatu.
Europe
Organic and bio dy namic agri cul ture had their cradle
in Germany (see country chapter) and the United
Kingdom, spread rapidly to the Netherlands,
Swit zer land and the rest of Europe and from there, in
the late 1920s, to the United States and sub se quently
to the rest of the world. The big development in
Europe came in the 1980s and today the European
Union is the leading producer of, and the largest
market for, organic products in the world. Over the
last decade and a half, EU organic farming devel oped
extremely rapidly, with the area certified and under
con ver sion rising from 0.11 mil lion hec tares in 1985
to nearly 1.4 million hectares in 1998 or at annual
growth rates sometimes exceeding 20%. In Central
and Eastern Europe, growth rates in the 1990s were
even higher; however, processing, manufacturing,
local distribution and exporting are still heavily
under de vel oped which can cause a slow down.
91
utilized agricultural land managed organically.
Swit zer land comes next with almost 7%, fol lowed by
Finland with close to 6%, Sweden with 3.4% and
Italy with 3.20%. In the southern Euro pean coun tries
of Greece, Italy, Portugal and Spain, the rise in
organically farmed areas has been particularly high
since the early 1990s. For instance, in Spain, this area
expanded more than four times between 1991 and
1995. How ever, in that country as well as in Por tugal
and Greece, the share of organic farming is still well
below 1%.
In EU and EFTA coun tries, organi cally man aged land
made up 1.45% of the utilized agricultural area in
1998, com pared with 1.4% for EU alone. The most
extensive organically farmed areas are in Italy
(550,000 hec tares), Ger many (351,062 hec tares) and
Aus tria (350,000 hec tares). In terms of per cent ages,
Austria stands on top with more than 10% of the
The total number of farms certified and under
conversion in Western Europe rose from 13,908 in
Europe (EU and EFTA) a/: organic agriculture in figures
Table 4.1
Agricultural land
Country
Number of farms
Organic
(hectares)
% share in all
agricultural
land
Rank
Organic
345 375
10.09
2
19 996
8
2
Belgium (end 1997)
6 418
0.48
14
291
0.38
17
Denmark (mid 1998)
64 329
2.37
7
1 617
2.19
6
Finland (end 1998) b/
125 550
5.6
4
5 170
6
4
France (end 1997)
120 241
0.4
15
3 994
0.5
15
Germany (January 1998)
351 062
2.02
8
6 793
1.12
9
6 000
0.09
18
1 065
0.67
12
119
0.01
19
27
0.6
13
Ireland (early 1998)
23 591
0.53
12
808
0.51
14
Italy (mid 1998) b/
550 000
3.18
6
29 500
1.19
8
Liechtenstein (mid 1998)
630
18
1
33
11.96
1
Luxembourg (mid 1998)
625
0.49
13
24
0.8
10
Netherlands (early 1998)
17 500
0.88
10
868
0.72
11
Norway (early 1998)
11 796
1.16
9
1 310
1.46
7
Portugal (early 1998)
11 584
0.29
17
321
0.07
19
Spain (1998)
152 105
0.61
11
3 526
0.25
18
Sweden (mid 1998)
118 175
3.44
5
2 733
2.97
5
Switzerland (late 1998)
71 790
6.7
3
4 768
7.6
3
United Kingdom (mid 1998) b/
54 270
0.34
16
1 026
0.42
16
EU + EFTA
2 031 760
1.45
84 805
1.08
EU
1 893 155
1.4
78 667
1.02
Austria (mid 1998)
Greece (March 1998) b/
Iceland (area: end 1997, farms mid 1998)
% share in
all farms
Rank
Source: Stiftung Ökologie & Landbau (Erhebung, July 1998).
a/ European Free Trade Association.
b/ Estimates.
Note: There are some discrepancies between the figures in this table and those given in some country sections where more recent figures
may be cited (for instance, in the section on Iceland).
92
1990 to an estimated 85,000 in 1997-1998, up by
more than 600%. Gen er ally speaking, the market has
been growing faster in the north, pro duc tion faster in
the south. However, in the 1980s and 1990s,
production in the north developed rapidly and,
espe cially the last five years, southern mar kets have
expanded con sid erably. Today, the mar kets in France
and Italy are booming and that of Spain is growing.
The commitment of individual countries to organic
farming varies con sid erably. Some coun tries, such as
Sweden, have officially set a target of 10% of all
agricultural land under organic management by the
year 2000 (30% by 2010); Austria has already
exceeded this level. Other countries have more
modest or no tar gets for the devel op ment of organic
farming. Some EU regulations, especially EC
Regulation 2078/92, supported by Regulation
2092/91, are having a significant impact on the
growth of the organic sector. However, the lack of
market development and consumer awareness
remain important inhibitors in certain sectors, in
particular the market for organic livestock products.
Nonetheless the organic dairy, poultry and egg
markets are well established and the meat market,
although still small, is growing strongly.
Although European production has developed well,
imports remain massive. While production and
processing facilities are available in all food sectors,
many main stream food com pa nies have not yet joined
the organic bandwagon. Supplying countries can
therefore realize much value added if they run their
processing and manufacturing facilities according to
strin gent Euro pean quality and service cri teria.
Despite the fact that many farms produce their own
animal feed, there is a continuous shortage of this
item and hence large imports. EU imports grains
(wheat, millet, rice), oil crops (sesame, sunflower,
safflower, palm, coconut) and pulses (soy, beans) as
well as all tropical prod ucts. The main sup pliers are
the United States, Latin America and Eastern Europe.
The lack of supplies of organic seed for sowing is
another problem commonly faced by organic
farmers, and non- organic seed continues to be widely
used. Initiatives to improve this situation are being
taken, partly as a result of EU regu la tions.
Austria
Production and control
In terms of the area under organic farming, Aus tria is,
with 345,375 hec tares, third after Italy and Ger many.
In terms of the shares of organic land and farms in the
overall agricultural figures, it is second after
Liech ten stein, with 10.1% of the land and 8.3% of all
farms.
Austria’s small and extensive farms, averaging 14
hec tares, would have had great dif fi culty com peting
with cheap imports from the more intensive
production systems in the European Union, and
con ver sion to organic pro duc tion with its value added
was con sid ered a good way of defending its farms.
The milk farms came first, and around 80% of the
cer ti fied organic land area is grass land. By mid 1998,
almost 20,000 farms (of which about a third were in
con ver sion) were organic.
Roughly 152,000 milk cows (out of a total of 338,000
bovine heads) pro duce around 300 million kg of milk
annually, equivalent to almost 10% of all milk
produced. Additionally there are 40,000 heads of
beef cattle, 40,000 pigs and 227,000 chickens.
While organic milk is currently over-produced, the
output of grains, fruits, vegetables is still much
smaller than demand, so imports have grown,
espe cially from Ger many, Hun gary and Italy.
The con ver sion rate slowed down con sid erably in the
two years to end 1998, particularly because of the
satu ra tion point reached in the dairy sector. The State
continues to subsidize organic farms as part of a
programme for furthering ecologically sound
agricultural systems (the ÖPUL programme). In
1996, the pro gramme paid around S 756 mil lion ($66
mil lion) to organic farms; of this, half was financed
by EU and the rest by the State. In addi tion, the State
subsidizes organic farmers’ associations and their
umbrella organi za tions ARGE and ÖIG. The national
mar keting organi za tion AMA (Agrar Markt Aus tria)
subsidizes organic marketing schemes out of
con tri bu tions from organic farmers; more than a third
of the country’s organic farmers are not associated
with the organi za tion.
As in Ger many, a large number of con trol bodies (22)
operate according to EC Regulation 2092/91, the
Austrian food law as well as private standards (for
animal products). This number will be greatly
reduced when the State accreditation system
completes its task. The largest control and
certification body, ABG (Austria Biogarantie),
con trols almost 50% of all organic farms.
Processing and manufacturing
Austria has a large number of organic processors,
manu fac turers and whole salers. The German organic
baby food com pany Hipp has an Aus trian sub sidiary
in Gmunden. Molk erei Pinzgauer in Mais hofen is the
dominant organic dairy company. Agrana Stärke in
Gmünd produces organic starch and is an important
exporter.
Retailing and trading
The national organic retail turnover, calculated in
terms of wholesale values, was estimated at S 2
bil lion ($170 mil lion). This was equiva lent to 2% of
the overall food market. As indicated above, some
organic products like milk have over 10% of their
respective markets. Domestic products have around
two thirds of the overall turn over, and imports a third.
The main super market mul ti ples Billa/Merkur (brand
name: Ja, Natür lich!) and Spar (organic brand: Natur
Pur), together with some minor chains, sell 70% of all
organic products. The share of Billa/Merkur alone
was cal cu lated in 1996 at close to S 1 bil lion. About
10% of all products are distributed through direct
sales and the catering sector; about 13% are sold
through natural and health food shops. It is felt that
distribution through these other outlets should be
strengthened.
EP (Engelbert Perlinger) in Wörgl is an important
importer, packer and wholesaler. It also exports to
Ger many and Italy.
The farmers’ association Ernte für das Leben
(Harvest for Life) and the umbrella organization
ARGE are important partners of the food industry
and the retail sector, and are extremely active in
mar keting. Ernte für das Leben has cre ated Ökoland
Öster reich Ver triebs GmbH for mar keting pur poses.
Ernte für das Leben is a partner of the national
certification body ABG. These bodies can be
con tacted by third- country organic sup pliers.
Ernte für das Leben pub lishes a major maga zine on
organic farming.
Useful addresses
Agrana Stärke-Gesellschaft mbH
Conrathstrasse 7, A-3953 Gmünd
Tel: +43-2852-503381
Fax: +43-2852-503361
(Processing and trading)
93
ARGE-Biolandbau
Wickenburggasse 14/9, A-1080 Wien
Tel: +43-1-4037050
Fax: +43-1-4027800
(Umbrella organization of farmers’ associations)
Austria Biogarantie GmbH
Königsbrunnenstrasse 8, A-2202 Enzersfeld
Tel: +43-2262-672212
Fax: +43-2262-674143
(Control and certification body)
EP Naturprodukte Handels GmbH
A-6300 Itter 300
Tel: +43-5332-75654
Fax: +43-5332-75656
E-mail: engelberts-naturprodukte@tirol
[email protected]
Web site: http://www.engelberts-naturprodukte.de
(in Germany)
(Packer and wholesaler)
Ernte für das Leben
Europaplatz 4, A-4029 Linz
Tel: +43-732-654884
Fax: +43-732-65488440
(Farmers’ association, marketing and development)
Ja! Natürlich, Naturprodukte GmbH
IZ-Süd Strasse 3, Objekt 16, A-2355 Wiener Neudorf
Tel: +43-2236-6007960
Fax: +43-2236-6007690
(Organic arm of the Billa/Merkur supermarket
chain)
Belarus
There are sev eral prom ising organic ini tia tives and an
organic farmers’ organization is being set up. The
Gov ern ment is sup por tive of these ini tia tives.
Useful address
Beleko
Ul. Terechkovoi 28, 230600 Grodno
Tel: +375-152-472062; +375-152-449989
Fax: +375-152-471497
[email protected]
Belgium
Production
Whilst consumption of organic products in Belgium
rose con stantly over the past decade or so, pro duc tion
remained underdeveloped and most products
consumed domestically were imported. However, in
more recent years, notable changes have occurred in
the livestock and dairy sector in Wallonia, mainly
94
bovine, in regard to the pro duc tion of both meat and
milk. To boost vegetable production, the Federal
Government in 1999 tripled the hectare subsidy until
at least the end of 2000. The subsidy for grassland,
however, was reduced.
In 1997 there were 107 organic farms on 820 hec tares
in Flanders and 184 farms on 5,598 hectares in
Wallonia, representing roughly 0.5% of the total
agri cul tural area in Belgium. In 1998 there was a rise
to 1,099 hectares in Flanders and 10,745 hectares in
Wallonia.
The main outputs are cereals, milk and beef (pro duced predominantly in Wallonia) and vegetables
(grown mainly in Flanders). Some quantities of
chicken meat, pork and fruits are also pro duced.
While Belgium imports all these products, it also
exports substantial quan ti ties of green house products
such as tomatoes, cucumbers and paprika as well as
substantial quantities of processed products like rice
cakes, soy drinks and desserts, chocolate and
cereal-based sweeteners.
Processing and wholesale trading
The value of the Belgian organic market can be
esti mated at BF 2.5 bil lion - BF 3 bil lion, which is
roughly 0.3% of the overall food market. Belgian
proc es sors, traders and packers import the larger part
of their raw mate rials. The company Lima, until the
1980s one of Euro pe’s largest proc es sors of organic
products, has since become mainly a packer.
However, it continues to process rice cakes and
vege tarian prod ucts. Lima exports a vast array of dry
prod ucts to many coun tries all over the globe.
Among the other important processors are the
following:
q
Alpro nv (Wevelgem): soy drinks and desserts,
margarine;
q
Bioline Europe nv (Antwerp): ready meals.
q
Cidre Stassen sa (Aubel) and Pajottenlander
(Pepingen): juices;
organic chocolate;
q
Meurens Natural sa (Herve): cereal-based
natural sweeteners;
q
MIK nv/Indumel nv (Kruishoutem): yoghurt
and other dairy products;
q
Natural Bio Mills (Oudenaarde): milling;
q
Ortis sprl (Elsenborn) and Biolife (St
Genesius-Rhode): medicinal herbs, and other
medicinal and nutri tional prepa ra tions;
q
Soubry nv (Roeselare): pasta;
q
Vondelmolen nv (Lebbeke): spice bread;
q
Candico nv (Merksem): sugar.
There are a multitude of smaller dairy plants,
bakeries, makers of tofu-seitan and vege tari an
burgers, and beer brew eries (e.g. Brasserie Dupont in
Tourpes). De Meerschaut in Ghent imports organic
salmon. Biomilk sa in Vielsalm is the main milk
collector; it obtained 7 million - 8 million kilo grams
in 1998 and expects this figure to rise to 10 million
kilo grams in 2000.
Brava cvba (in Kampenhout) is a public fruit and
vegetable auction dealing mainly with organic
produce. Groupement Viande Biologique Origine
Belge scrl (GBVBOB) in Libramont is the main
bovine producers’ group. Biomarché scrl
(Sombreffe) and Biofresh nv (Sint Kathelijne Waver)
are the dominant fruit and vegetable packers and
importers. Reformwaren nv (Maldegem), Natudis nv
(Tienen) and Hagor nv in Lubbeek (of the French
Distriborg group) are the leading wholesalersimporters of grocery products. OAO in Brussels has
just launched a gourmet assortment of organic
products. Reformwaren and Lima, belonging to the
same owners, merged in late 1998 with Natudis, the
Belgian subsidiary of the dominant Netherlands
wholesaler of the same name. Ostara bvba
(Horebeke) is a broker-importer of raw materials and
processed products, as is Olans Agrotrade in St
Amandsberg. Most of the above companies are
members of the professional union Probila/Unitrab.
Retail trade
q
Delifrance Belgium sa (Nivelles) and La Lorraine
NV (Ninove): industrially baked organic bread.
q
Döhler/Citrusco (St Truiden): organic food
ingredients (mainly from fruits);
q
Callebaut nv/Kraft Jacobs Suchard nv (Halle):
The retail trade is well developed. There are about
400 natural food and Reform or health food shops,
some of which are small super mar kets. Most of the
larger cities have farm ers’ mar kets. Del haize Le Lion,
a leading supermarket chain, has been carrying for
over a decade an organic assortment which now
con sists of both fresh and proc essed foods, including
organic smoked salmon. The largest mul tiple retailer,
GB, car ries the French generic brand Le Goût de la
Vie for pack aged prod ucts as well as a range of fresh
prod ucts. The main dis counter, Col ruyt, sells a small
assort ment of dried goods as well as some fresh fruits
and vegetables. Smaller chains like Battard are
increasingly introducing organic products. Most
mul ti ples are step ping up their organic pro grammes.
Control and certification
There are two State-accredited control bodies: Blik
and Ecocert. The main farmers’ organizations are
Bel bior in Flan ders and Unab in Wal lonia. There are
also a number of bio dy namic farmers and proc es sors.
Velt in Flan ders and Nature et Pro grès (in Wal lonia),
both asso cia tions of farmers and gar deners, are active
at the con sumer level. Blivo in Flan ders and Crabe in
Wallonia extend technical expertise to farmers. All
these organizations as well as Probila/Unitrab are
united in the umbrella organization BioForum vzw.
Biogarantie vzw groups the owners of the Belgian
organic seal (Bio garantie).
Information source
Belgium is the seat of Biofood.Net, a global organic
information platform on the Internet. Biofood.Net is
building up a consumer section, with information in
the language of the consumer, as well as in English.
The business section has an organic master guide,
which allows one to find out who is who in the organic
world, an elec tronic news and infor ma tion service as
well as an electronic trade journal where offer and
demand can meet, without Bio food.Net inter fering as
a broker or intermediary. All access is free. Income
comes from adver tise ments.
Useful addresses
Biofood.net
Chemin des Maréchaux 35, B-1300 Wavre-Limal
Tel/Fax: +32-10-410675
Web site: http://www.biofood.net
(Organic information platform on the Internet)
BioForum vzw
Rue Saint Médard 4, B-1370 Jodoigne
Tel: +32-10-814050
Fax: +32-10-814346
(Umbrella organization for farmers, processors,
traders)
Biogarantie asbl
(Biogarantie’s secretariat is located at Blik and
Ecocert, see below)
(Owners of the organic label Biogarantie)
Blik vzw
Uitbreidingsstraat 392D, B-2600 Berchem
Tel: +32-3-2812152
Fax: +32-3-2817469
(Control body)
Ecocert Belgium sprl
Chemin de la Haute Baudecat 1
B-1457 Walhain
Tel: +32-81-600377
Fax: +32-81-600313
Web site: http://www.ecocert.be
(Control body)
Ets Delhaize Frères & Cie “Le Lion” sa
Osseghemstraat 53, B-1080 Brussels
Tel: +32-2-4122111
Fax: +32-2-4122194
E-mail: jtgeelhand@delhaize-le-lion-be
Web site: http://www.delhaize-le-lion-be
(Main supermarket chain carrying organics)
European Office of Preparators & Distributors of
Organic Products
Bd Louis Schmidt, 119-bte 3B, B-1040 Brussels
Tel: +32-2-27438202
Fax: +32-8-5270104
(European federation of organic processors and
traders)
Hagor nv
Ambachtenstraat 4, B-3210 Lubbeek
Tel: +32-16-620711
Fax: +32-16-621421
(Wholesaler)
Lima/Reformwaren NV
Industrielaan 11, B-9990 Maldegem
Tel: +32-50-710564 (Lima);
+32-50-713811 (Reformwaren)
Fax: +32-50-710567 (Lima)
(Packer-wholesaler)
Max Havelaar vzw
Leopold II Laan 184D, B-1080 Brussels
Tel: +32-2-4116462
Fax: +32-2-4116005
E-mail: [email protected] (fair trade)
Natudis nv
Hamelendreef 85, B-3300 Tienen
Tel: +32-16-816156
Fax: +32-16-821298
(Wholesaler)
95
96
Ostara bvba
Kerkplein 5, B-9667 Horebeke
Tel: +32-55-456734
Fax: +32-55-456741
(Importer)
Probila/Unitrab
Kerkplein 5, B-9667 Horebeke
Tel: +32-55-456734
Fax: +32-55-456741
(Organization of processors and traders)
Tel: +359-3358365
(Organic producers’ association)
Foundation for the Development of Sustainable
Agriculture
Slavekov Plz 9, App. 8
1000 Sofia
Tel: +359-2-9816498
(Extension service)
Croatia
Triodos Bank
Voskenslaan 97D, B-9000 Gent
Tel: +32-922-04044
Fax: +32-922-04875
E-mail [email protected]
(Ethical banking, involved in organics)
WOSC
(World Organic Supermarketing Club)
Parvis Saint Roch 3, B-1324 Chaumont-Gistoux
Tel: +32-10-681387
Fax: +32-10-681112
(Group of supermarkets involved in organics)
Bosnia and Herzegovina
There are sev eral local ini tia tives, including organic
mar keting activi ties mainly in Sara jevo. The country
is a member of AgriBio Medi ter raneo (see Italy).
Useful address
GBOFA B
(Great Brijesnica Organic Farmers’ Association)
Beta, S. Tomica 1, 10000 Sarajevo
Fax: +387-71-652423
(Production, processing, development)
Production
BIOS, an association for organic farming,
environmental protection and health improvement
founded in June 1991, works for the promotion of
production and trade in organic products. It has
adopted production standards that are based on the
IFOAM basic standards, and has formed a control
and advi sory group.
By early 1995, eight family farms (covering 50
hec tares) had con verted to organic farming, ena bling
them to label their prod ucts with the reg is tered trade
mark Bios Croatia. Another 10 farms total ling about
70 hectares were under conversion. The area is
cropped as fol lows: 40% - 50% under grains and oil
crops (maize, soy bean, sun flower); 20% under forage
crops (clover mixtures, mixtures of common vetch,
peas and cereals, and some root crops); 10% - 15%
under vegetables and other products that can be
marketed directly; and 5% - 10% under perennial
crops (orchards and vineyards). The rest is mostly
natural grass land and woods.
Croatia is member of the AgriBio Medi ter raneo (see
Italy).
Bulgaria
Trade
Organic agriculture is at the initial stages of
development. Some Western European companies
are attempting to produce herbs, fruits and other
prod ucts for export.
Useful address
Agricultural University Plovdiv
Agroecol Centre, 12 Mendeleev Street
4000 Plovdiv
Tel/Fax: +359-32-265909
(Development)
Bio-Bulgaria
Ivan Vazov Str. 47
4300 Karlovo
It is dif fi cult to sell organic prod ucts in Croatia as the
consumers are not familiar with organic food
prod ucts and their pur chasing power is low. A small
chain of specialized shops supplying a range of
con trolled organic prod ucts has been set up. Sales are
still mainly aimed at tourists and the home market
although attempts to export are being under taken.
Useful addresses
BIOS
c/o Trim-Rosa, A. Hebranga 5, 10000 Zagreb
Tel/Fax: +385-1-4819276
(Inspection, production, processing)
Eko Liburnia
Jelacicev 1/III, 51000 Rijeka
Tel: +385-51-331184
Fax: +385-51-212948
E-mail: eko-liburnia&ri.Tel:hr
(Producer, processor)
EKOP-ISTRA
C. Huguesa, 52440 Porec
Tel: +385-52-211672
Fax: +385-52-232119
(Producer, processor, trader)
Czech Republic
97
(Consulting, development)
NRFH
(Nadace Rytire F. Horského)
K. Netlukam 958, 10400 Prague 10 - Uhrinéves
Tel/Fax: +420-2-67712143
(Consulting, development)
Pro-Bio
PO Box 116, 78701 Sumperk
Tel: +420-649-216609
Fax: +420-649-214586
(Union of producers and processors)
Production
Denmark (see chapter 6)
In the begin ning of 1999, the farm ers’ and proc es sors’
asso cia tion PRO-BIO had 48,000 hec tares under its
coverage (up from 260 hectares in 1989). Of these,
6,500 hectares were prairie land, 513 hectares were
orchards, and the rest were under field crops (e.g.
wheat and vegetables). Government support since
1998 has been boosting the growth of the sector.
Processing, distribution and certification
The country uses a growing number of raw mate rials
for processing such products as buckwheat tea,
bulgur, pasta and spelt coffee. The under de vel op ment
of the domestic market remains a serious problem.
Many prod ucts and vir tu ally all animal prod ucts are
still sold con ven tion ally. There are a number of health
food and natural food stores in Prague, Kar lovy, Vary,
Brno and other urban areas, including 40 run under a
Pro-Bio fran chise. Super mar kets have so far shown
little interest in selling organic products, but this
situa tion is changing and two chains have picked up
their first organic prod ucts.
Exports to the European Union, for example of
wheat, are considerable but stagnating because of
increased competition. Around 80 organic items are
imported from the Euro pean Union.
KEZ is the control body. Certification takes place
through a mixed com mittee involving the Min istry of
Agri cul ture.
Useful addresses
FOA
(Foundation for Organic Agriculture)
Kubatova 1, 10200 Prague 10
Tel: +420-2-751046
Fax: +420-2-6849107
Estonia
Production
In 1998 120 farms covering 3,000 hectares were
under certified organic and biodynamic production.
The main prod ucts are dairy prod ucts (drinking milk,
curd, butter and cottage cheese), potatoes, grains,
vege ta bles, herbs and honey.
Processing, trading
Most proc essing, packing and even sales are organ ized
by the farmers them selves. An increasing number of
retail shops, including supermarkets, are picking up
organic prod ucts. There are no exports as yet.
An organic law was passed in 1977. The Eesti
Biodünaamikaühing
Tartu Ökoinsenerikeskus
(Estonian Biodynamic Association Centre for
Ecological Engineering Tartu) is the main
certificationbody.
Useful addresses
Estonian Biodynamic Association Centre for
Ecological Engineering Tartu
V. Jannseni 4, EE-2400 Tartu
Tel: +372-7-422051
Fax: +372-7-422746
(Production, development, certification)
Estonian Chamber of Agriculture & Commerce
J. Vilmsi 53B, EE-10147 Talinn
Tel: +372-6419007
Fax: +372-6419008
Web site: http://www.epkk.ee
(Information)
98
Finland
Production
Fin land is one of the world’s most advanced organic
pro ducing coun tries. At the end of 1998, there were
about 5,100 farms, equivalent to 6% of all farms.
They covered 126,000 hectares (5.9% of all
agricultural land), of which 40,000 hec tares are still
under conversion. The average size of an organic
farm is 24.3 hectares, about 10% larger than
con ven tional farms.
The organic idea is old and was influenced by the
great Finnish biochemist Artturi Virtanen
(1895-1973). Modern organic devel op ment started in
the 1960s, accel er ated in the 1980s and exploded in
the 1990s. Between 1995 (the year Fin land joined the
Euro pean Union) and 1996, the number of farms rose
from 2,793 to 4,452. Since them, organic farming has
spread from the exten sive sys tems in the middle of
Fin land (Kainuu, Mik keli, Pirkanmaa, Vaasa) to the
more intensive systems in the south (Satakunta,
Uusimaa, Varsinais- Suomi).
About 45% of the area under cultivation is
pastureland; 40% is planted to cereals, particularly
barley, oats and rye; 2% to pota toes; 2% to vege ta bles,
2% to other crops. About 8% of the land is left fallow.
Fruits are cropped on 960 hectares, of which 16
hectares are planted to apples and the rest mainly to
straw ber ries and many other kinds of ber ries and small
fruits. Herbs are cul ti vated on 30 hec tares.
Around 65,000 square metres of greenhouses
produce primarily cucumbers and tomatoes. There
are 33,300 hec tares of grass land.
Roughly half of the organic farms carry live stock, but
only a small number (350 in 1998) were cer ti fied for
animal pro duc tion. The rea sons are: total con ver sion
is not obligatory and, above all, facilities for the
proc essing and mar keting of organic animal prod ucts
are not sufficiently developed. In 1996 35% of the
certified animal production units were dairy farms;
24% raised beef cattle, 19% sheep, 15% poultry, 11%
pigs and 1% goats. Many farms had mixed herds.
About 12% of the farms also had api aries. As more
fodder becomes available, more animal farms are
expected to con vert to organic sys tems.
By the end of 1998 about 500 organic food
proc es sors and manu fac turers were under inspec tion
by the National Food Admin istra tion. More than half
were cereal proc es sors (such as mills and bak eries).
Many proc essing units are farm- based. Proc essing is
mainly at the primary level in the beverage, fruit,
potato and vege table sec tors.
In the beginning, the development of the domestic
market was dif fi cult and pro gressed slowly from the
first stage of on- farm sales and farm ers’ mar kets to
lim ited suc cess in a few natural food stores in each of
the larger towns. Supermarkets refused to take up
uncoordinated product assortments associated with
insuf fi cient service.
Nowa days there are a mul ti tude of mills and bak eries,
and cereal products can be found in all the major
supermarkets, which also carry imported organic
prod ucts. The supply of pota toes and vege ta bles is
insufficient and increasing quantities of these
prod ucts are obtained from abroad. In 1997, 5 mil lion
kilo grams of organic milk were proc essed by 4 dairy
plants into milk, yoghurt, cream, butter milk and a
range of tra di tional Fin nish dairy prod ucts.
The marketing of organic meat remains a problem.
The Finnish Association for Organic Farming
(Luomu-Liitto) is coordinating the activities of 15
regional producer- owned mar keting organi za tions in
order to improve this situation and a State-funded
promotion organization for organic products
(Fin food) has been set up.
In gen eral, con sumer interest in organic foods is high.
The motivating factors are the absence of
contaminants and other health issues, taste, and the
envi ron ment. Insuf fi cient sup plies remain an obstacle
to increased consumption. A few products are
exported to Scandinavia and the European Union:
baby food, bis cuits, liq uo rice, rape oil and rye bread.
Control, certification
Luomu-Liitto, the Finnish Association for Organic
Agriculture, published standards in 1986 (vegetal),
1988 (animal) and 1989 (processing) and was until
1994 respon sible for cer ti fi ca tion. This respon si bility
has since been taken over by the Ministry of
Agriculture and Forestry and the relevant control
bodies which function according to EC Regulation
2092/91. The State has no organic seal and most Finnish organic prod ucts carry the seal of Luomu- Liitto
or of the Biodynaaminen Yhdistys/Biodynamiska
Fören ingen (Fin nish Bio dy namic Asso cia tion).
Useful addresses
Biodynamic Association
Uudenmaankatu 25A4, FIN-00120 Helsinki
Tel: +358-9-644160
Fax: +358-9-6802591
Web site: http://www.biodyn.fi
(Development, certification)
Kesko Corporation
PO Box 152, FIN-0133001 Vantaa
Tel: +358-105328774
Fax: +358-105328704
(Retail trade)
Luomu-Liitto ry
(Finnish Association for Organic Agriculture)
Postbox 42, FIN-01301 Vantaa
Tel: +358-9-41349600
Fax: +358-9-41349601
Web site: http://www.luomulehti.luomu-liitto.fi
Plant Production Inspection Centre
PO Box 111, FIN-32201 Loimaa
Tel: +358-2-76056436
Fax: +358-2-76056220
Web site: http://www.ananda.fi/kttk/luomuvalvonta
(Plant inspection, information)
France (see chapter 7)
Germany (see chapter 8)
Greece
Production
In March 1998, Greece had 1,065 organic farms
(0.7% of all farms) on around 6,000 hec tares (0.1% of
all agri cul tural land). In the 1980s, Western Euro pean
traders such as Fertilia (now Natudis) in the
Netherlands and Rapunzel in Germany made it
possible for Greece to establish its first organic
proj ects, such as those for the pro duc tion of cur rants
by the Agricultural Cooperatives Union (ACU) in
Aeghion, and of olives and olive oil in Mani, the
Peloponnesian peninsula south of Kalamata. Since
then numerous farmers have converted to organics.
About 60% of the output con sists of olives and olive
oil; 11% of wheat; 10% of cur rants, rai sins, and wine;
5% of citrus fruits; 3% of cotton; and 3% of wal nuts
and almonds. Among the other organic pro duce are
99
other fruit (kiwi fruit, apri cots, apples), medicinal and
aro matic herbs, pulses and vege ta bles.
Some green houses are run organi cally. There are no
cer ti fied animal farms, although demand is growing
for organic feta cheese and honey.
Greece is a member of AgriBioMediterraneo (see
Italy).
Proc essing facili ties are basic and con sist mainly of
oil and grain mills, structures for drying fruit, and
packing plants.
Domestic distribution is being built up gradually.
Sales are made through farm ers’ mar kets and natural
health food stores, of which there are over 20 in
Athens and 25 - 30 in the provinces. Supermarket
chains such as Alfa Beta have started to introduce
organic assortments, especially of fruits and
vegetables. A number of stores in the large cities,
mainly Athens and Thes sa lo niki, also carry imported
processed products. The consumer association
Dorippi in Athens, with more than 1,500 members,
facili tates the pur chase of organic prod ucts.
The bulk of the coun try’s organic output is exported,
mainly to the Euro pean Union. Ger many is the most
important market, followed by countries such as
France and the Netherlands. Companies such as
Bio- Zeus in Kala mata (which han dles fruits and uses
the brand name Bio-Kyklos) and Bläuel Greek
Organic Prod ucts in Pyrgos Lefk trou near Kala mata
(which deals in olive oil) have been established to
coor di nate pro duc tion, proc essing and exporting for
the benefit of pro ducers from all over Greece.
Certification
SKAL has long been the most active for eign con trol
organization in Greece. In conformity with EC
Regulation 2092/91, the State has accredited three
Greek certifiers: Soge Syllogos Oikologikis Geor gias Elladas (Asso cia tion of Organic Agri cul ture of
Greece), DIO- Certification & Inspec tion Organi zation of Organic Products, and Fysiologiki Foreas
Elegchou kai Postopiisis Viologikon Proionton.
Soge has been active as a farmers’ organization
since 1985. Today, DIO cer ti fies more than 50% of
all organic farms. Fysiologiki is active only in
Macedonia.
100
Useful addresses
Alfa-Beta Vassilopoulos sa
81, Sparta Avenue, GR-Gerakas-Athens
Tel: +30-1-6612501
Fax: +30-1-6612675
(Supermarket chain carrying organics)
Bio Forum
PO Box 1028, GR-71001 Heraklion
Tel: +30-81-752009
Fax: +30-81-752651
(Processing, trade)
DIO
(Certification & Inspection Organization of Organic
Products)
Aristonikou 23-25, GR-11636 Athens
Tel: +30-1-9231466; 9232259
Fax: +30-1-9224685
EEVE
(Enosi Epangelmation Viokalliergiton Elladas)
And. Metaxa 13-15, GR-10681 Athens
Tel: +30-1-5905823
Fax: +30-1-3304647
Fysiologiki
(Fysiologiki Foreas Elegchou kai Postopiisis
Viologikon Proionton)
24N Plastiras Street, GR-59300 Alexandria
Tel: +30-333-22113
Fax: +30-333-24444
hectares were registered, but not all have asked for
certification. The certified area consists mainly of
pastures and crop land. In a natural reserve in
Hortobágy, Hortobágy GG runs over 600 hectares
organically, raising, among others, longhorn grey
cows, a threatened species, for meat production.
The livestock raised comprises goats, cows and
chickens; honey is also produced.
The country’s main crops are grains (winter wheat:
4,800 tons, maize: 1,800 tons, and spelt: 1,600 tons),
barley, rye and oats. Millet and pumpkin seeds are
pro duced, as are fresh fruits (ber ries, apples, melons),
vegetables, mush rooms, paprika, peppers, herbs and
nuts.
In 1990 Hungary hosted an IFOAM scientific
conference and general assembly, the first Eastern
European country to do so.
Processing
Proc essing is increasing. Among the out puts are fruit
juices (apple juice); frozen products (peas, onions,
car rots, fruits); baby food; dehy drated vege ta bles and
fruits; dried herbs; herbs and spices (paprika, red
pepper). The processed output is mainly exported
although some baby food, for instance, is sold on the
domestic market. The German baby food producer
Hipp has a subsidiary in Budapest.
Trade
Soge
(Association of Organic Agriculture of Greece)
26 Averof, GR-10433 Athens
Tel:
+30-1-2688227
Tel/Fax: +30-1-2687027
Hungary
Production
Organic agri cul ture has been car ried out in Hun gary
since 1983 and has been devel oped in col labo ra tion
with Austrian, German and Netherlands importers.
Hungary was one of the first countries to obtain
equiva lency to EC Regu la tion 2092/91 and this has
stepped up the interest of EU market players in its
organic prod ucts. The cer ti fied area expanded slowly
until 1992, but increased significantly in the mid
1990s to an esti mated 23,000 hec tares in 1996.
In mid 1999, around 350 farms with about 25,000
The main export mar kets are Aus tria, Ger many and
the Neth er lands. Among Hungary’s import products
are oil crops (sunflower: 2,300 tons, and soy).
The domestic market is extremely small with only a
few natural food and Reform shops carrying a limited
range of organic products. A weekly organic market
is organized by Biokultúra in Budapest. Some sales
take place at the farm gate.
In the middle of 1999 the organic sector started
organizing itself for entry into the supermarket sector.
Virtually all production is exported: 40% to
Germany, 20% to Austria, 20% to Switzerland and
about 10% to the Netherlands. The Hungarian
organization Ökoszerviz and the Swiss company W.
Kundig & Cie AG, which has a subsidiary in
Budapest, have been instrumental in developing
organic exports.
Certification
The local body Biokontroll Hungária Kht and SKAL
are the two certifying bodies. Demeter certifies to
biodynamic standards. Biokontroll, with the
assistance of The Soil Association, is also active in
neighbouring countries.
101
output includes barley, oats; cabbage, carrots,
cauliflower, and other vegetables and herbs; fodder
beet and hay; potatoes and rape seed. Cucumber,
paprika and tomatoes are grown in geothermic
greenhouses. Several cosmetic firms, such as the
Blue Lagoon, use organically grown raw materials,
mainly herbs. Wild Ice landic moss is a world- famous
product.
Useful addresses
Biokontroll Hungária Kht
Postbox 800
H-1035 Budapest
Tel/Fax: +36-1-2123127; +36-1-2122379
(Inspection and certification)
Biokultúra Egysulet
Kitaibel P.u.4, H-1204 Budapest
Tel/Fax: +36-1-2123127; +36-1-2122379
(Development)
Ökoszerviz Környezetvedelmi
Löpormalom U3, H-1031 Budapest
Tel/Fax: +36-1-2025192
(Trade)
Iceland
Production
In mid 1998 Ice land had 27 organic farms (0.6% of
all farms) on 1,150 hec tares (0.8% of the agri cul tural
area), mainly in the south- west. Its first organic farm
(biodynamic) was Sólheimar, established in 1930.
Organi za tions like VOR (Verdnun og Raektum or the
Ice landic Asso cia tion of Eco logical Farmers, cre ated
in 1993) and Gróska (estab lished in 1996) have been
instru mental in the recent growth of the sector.
Áform, the Icelandic Development Committee on
Natural and Organic Production, encompassing the
Ministries of Agriculture and the Environment, the
farm ers’ union and VOR, has the imme diate goal of
making all Ice landic food pro duc tion, be it land- or
water-based, sustainable and of creating an
‘eco-island’. Activities are governed by legislation
No. 26 of 3 March 1995 on organic and natural
agricultural production. Substantial sums have been
granted by the Government to support the
Com mit tee’s work.
Most farms have extensive livestock operations,
producing beef and lamb, dairy products and eggs.
How ever, crop ping activi ties are more sig nifi cant. The
Proc essing is gen er ally at the pri mary level.
Agaeti, Iceland’s largest wholesaler of fruits and
vege ta bles, has a large assort ment of organic prod ucts
and is certified. Products are sold either at the farm
gate or in a few spe cial ized stores, mainly in the cities.
The main supermarket chain Hagkaup offers a wide
array of organic products, partly imported. There are
currently no exports, but there is great interest in
organic Ice landic lamb. Fresh fruits and vege ta bles as
well as proc essed prod ucts are imported.
Certification
The Soil Asso cia tion (United Kingdom) and KRAV
(Sweden) have helped set up local certification
bodies. Today, the pri vate enti ties Tún (Ice landic for
‘pra irie’) and Vist frae distofan carry out cer ti fi ca tion
activi ties.
Useful addresses
Áform Development Project
c/o Baendahöllin
PO Box 7080, Hagatorg 1, IS-127 Reykjavik
Tel: +354-5-630300
Fax: +354-5-628290
(Development)
Birala Lifraent Átaksverkefni
c/o Baendahöllin
PO Box 7080, IS-127 Reykjavik
Tel: +354-5-630300
Fax: +354-5-623058
E-mail: [email protected] and [email protected]
(Development)
Tún
(Vottunarstofan Tún)
Myrarbraut 13, IS-870 Vik
Tel: +354-4871389
Fax: +354-4871205
Vistfraedistofan
Theverás 9, IS-110 Reykjavik
Tel: +354-5672244
102
Fax: +354-5682433
VOR
(Verdun og Raektun)
Akur, Biskupstungur, IS-801 Selfoss
Tel: +354-4868983
Fax: +354-5667035
Ireland
Production
In early 1998, Ireland had 808 organic farms on
23,600 hectares. The sector has expanded
enormously in recent years. When growth started in
the early 1990s, the emphasis was on vegetable
pro duc tion on small farms. The emphasis has since
shifted to livestock production, mainly bovine and
ovine, on larger farms of up to 100 hectares. The
latter has been due to encour age ment from the Rural
Environment Protection Scheme which provides
finan cial aid for con ver sion.
There are roughly 25 biodynamic farms. With
Norway, Ire land is a pio neer in organic fish farming.
The Irish Seafood Producers Group Ltd (ISPG) in
Con ne mara, County Galway, pro duces and trades in
organic salmon, raised according to Germany’s
Naturland standards and exported to several
Euro pean coun tries.
Farming, Trading & Consulting (based in Kahir,
County Tipperary) coordinates production,
proc essing and trading in beef, flakes, flours, grains,
lamb, and woollen fab rics. Bord Bia, the Irish Food
Board, is showing increasing interest in organics. It
seems likely that Irish organic beef will be mar keted
in the near future in con ti nental Europe. Imports of all
prod ucts are con sid er able.
Three certifiers are active in the country: IOFGA
which certifies most of the farms, Bio-Dynamic
Asso cia tion of Ire land, and Organic Trust Ltd.
Useful addresses
IOFGA
(Irish Organic Farmers & Growers Association)
56, Blessington Street, IRL-Dublin 7
Tel/Fax: +353-1-8307996
Web site: http://www.homepage.tinet.ie/-iofga
Organic Foods
Unit 26, Hill Industrial Estate
IRL-Liffey, Bridge, Lucan, County Dublin
Tel: +353-1-6281375
Fax: +353-1-6282997
(Wholesaler)
Italy
Production
There are a growing number of processing and
manufacturing plants for both animal and plant
products. However, as a whole this sector remains
underdeveloped.
Trading
Distribution continues to take place largely through
spe cial ized sales chan nels: farm gate sales, con sumer
groups, organic box subscription schemes (for
vegetables) and, above all, natural and health food
stores. Nev er the less, with the expan sion of sup plies,
supermarkets are increasingly entering the trade.
Supermarkets in urban areas like Dublin and Cork
offer organic fruits and vegetables, some dried
prod ucts and meat.
Many farmers have joined cooperatives for
marketing purposes. Ballybrado Ltd Organic
With 564,913 hectares certified, distributed over
31,118 farms and equivalent to 3.8% of all
agricultural land, Italy is by far the largest organic
producer by area in the European Union. Of the
cer ti fied land, 83,292 hec tares are in the north, 80,288
hec tares in cen tral Italy and 401,333 hec tares in the
south (of which 261,699 hec tares are mainly in Sicily
and Sar dinia).
In 1998, the certified land was cropped as follows:
45.4% fodder, 22.9% cereals (Italy is Euro pe’s largest
producer of organic durum wheat and rice), 10.4%
fruits and vegetables for processing (such as
tomatoes), 9.4% olives, 7.7% fresh fruits and
vege ta bles, and 2.7% vine yards. (The pro por tions in
terms of market value shift radi cally, with fruits and
vege ta bles for proc essing having a share of roughly
50%.) Italy is one of the few sig nifi cant pro ducers of
organic apple in Europe; much of this produce is
grown in the area around Trento in the north.
During recent years, the importance of Italy as a
sup plier of organic raw mate rials, semi- processed and
proc essed organic prod ucts has grown dra mati cally.
Processing, manufacturing
Italy has more than 500 organic processing plants,
producing a large assortment of products including
fruit juices and pulps, olives and olive oil, pasta,
pastries, rice, dairy products (including ice cream),
tomato-based products and wine. Most of the food
processors are established in the north. However,
large factories such as Barbagallo (pasta) and
Damiano (hazel nuts and almonds) as well as various
citrus processors (peel, candy, juice) are located in
Sicily. There are also a number of fruit and vege table
packers.
Trade
The value of the domestic organic market is
estimated at between Lit 1,300 bil lion and Lit 1,500
bil lion ($750 mil lion to $900 mil lion), equiva lent to
0.5% - 0.7% of the overall food market. In the four
years to 1998, the organic market expanded at the rate
of 20% annu ally.
Close to 40% of the organic output is exported,
mainly to Europe, Japan and the United States.
Annual exports are valued at an estimated Lit 500
billion and Lit 700 billion ($300 million - $400
million). Italian olive oils, pastas, tomato products
and wines are mar keted suc cess fully in vir tu ally all
international markets. Imports, particularly of
proc essed prod ucts, are con sid er able.
Fruit and vege table packers such as Ara bios, Di Rosa
& Can niz zaro and Salamita (all in Sicily), Mus tiola
in Cesena, Elios in Trig giano (near Bari) and Brio in
Vicenza are the domi nant whole salers; they are also
heavily involved in exporting and sometimes in
importing. Brio also car ries cheese, pasta, pre serves,
wine and other prod ucts.
Il Fior di Loto (in Grugliasco near Torino), the KI
group (Collegno near Torino), WBT (Settimo
Torinese near Torino), La Selva (Orbeteno), Coop.
Alce Nero (Isola del Piano) and Il Sarchio (Carpi,
Emilia-Romagna) are a few of the well-known
wholesalers specializing in dry foods. Like the
packers, they are mostly exporters, but they also
import occasionally. NBC (Torino) groups organic
producers and processors, and coordinates their
exports.
103
Fattoria Scaldasole (in Monguzzo near Como),
originally a dairy factory specializing in yoghurt,
now offers a large assort ment of goods car rying the
Scaldasole brand name, one of Italy’s best known
brands. Masinari (located in Mede, in the valley of
the Po) is the domi nant rice mill.
There are about 900 natural food shops, mostly in the
north (about 600) and cen tral Italy (about 190). These
shops are generally small (only about 25% have
premises larger than 100 square metres) although
there are a number of superettes. Five franchise
systems have about 50 outlets. Many herbal stores
(erboristerie, which sell herbs and cosmetics) have
small dry organic assort ments.
Super mar kets have taken on organics in recent years.
It is reported that 95% of all Italian supermarkets
carry some organic products; however, only about
300, or 20% of all super mar kets, carry fresh organic
fruits and vegetables, mostly in the north and in
Tuscany. The super market chains more promi nently
involved in organics are Billa, Coop, Esse lunga and
Euromercato. The best known organic brands are
Scaldasole, Céréal and Bjorg (the latter two are
French brands), Alce Nero, La Danza, Ger minal and
Euvita. Supermarkets such as Billa, Coop, and
Esse lunga have their own organic labels.
Italy has about 100 organic res tau rants, mostly in the
northern and cen tral regions, and in the larger towns.
Organic catering in schools and cafe te rias is rising as
is eco-tourism on organic farms. The latter takes
place in about 400 farms all over the country, with a
higher con cen tra tion in Tus cany. Some 1,500 farms
sell their organic products off the farm. Organic
farming in natural reserves and parks is increasing.
According to the marketing maga zine Largo
Consumo, the Italian organic con sumer is between 35
and 45 years old, lives mainly in the northern urban
areas, has average or above- average edu ca tion, and is
in the upper-middle or high income levels. Around
70% of all Italian consumers know organics, 40%
buy them from time to time and 4% more regu larly.
Of the eight State-accredited control bodies, the
fed era tion AIAB is the largest, cov ering about 9,700
farms on close to 160,000 hectares. The second
biggest is Suolo e Salute with 6,500 farms and
122,000 hec tares, and the third is Bio agri coop with
4,300 farms and 120,000 hectares. Of the other
104
con trol bodies, CCPE, Eco cert Italia, IMC and QC&I
encom pass between 2,000 and 3,000 farms on 30,000
- 50,000 hectares. The smallest, Codex-Demeter,
con trols just over 1,000 farms (14,500 hec tares). It is
believed that fur ther efforts to reduce the number of
cer ti fiers and cer ti fi ca tion logos will be made in order
to increase con sumer rec og ni tion.
SANA
The SANA organic and natural products show in
Bologna, held every fall, has devel oped into one of
the largest organic food shows in Europe. SANA will
stage the 6th IFOAM Organic Trade Conference in
October 1999 in Flor ence.
Tel: +39-051-6130512
Fax: +39-051-6130224
Web site: http://www.bioagricoop.it
(Control and certification)
Brio-I scrl
Via del Comercio 8, I-36100 Vicenza
Tel: +39-045-8731777
Fax: +39-045-8731744
(Wholesaler, exporter, importer)
CISS
(Cooperazione Internationale Nord-Sud)
Via Papale 41, I-95123 Catania
Tel: +39-095-433799
Fax: +39-095-439740
(Fair trade, education)
AgriBioMediterraneo
AgriBioMediterraneo, IFOAM’s Mediterranean
group, comprises Algeria, Bosnia and Herzegovina,
Croatia, Egypt, France, Greece, Israel, Italy, Lebanon,
Slovenia, Spain, Tunisia and Turkey. Por tugal is also a
member though it is not on the Medi ter ra nean.
Useful addresses
AgriBioMediterraneo
c/o Ciheam
Via Ceglie 9, I-70010 Valenzano (BA)
Tel: +39-080-7806254
Fax: +39-080-7806268
(Federation of Mediterranean organic organizations)
AIAB
Strada Maggiore 29, I-40125 Bologna
Tel: +39-051-272986
Fax: +39-051-232011
Web site: http://www.aiab.it
(Federation of certifiers)
Alce Nero Cooperativa/La Corticella
Via Montebello 1, I-61030 Isola del Piano (PS)
Tel: +39-051-329411
Fax: +39-051-703172
(Producer, processor, wholesaler: handles mainly
dried products)
Di Rosa & Cannizzaro
Contrada Grafalongo, I-97014 Ispica
Tel/Fax: +39-0932-956887
(Exporter and importer of fruits and vegetables)
Ecocert Italy
Via Baldvino 25, I-95128 Catania
Tel: +39-095-442746
Fax: +39-095-505094
Fattoria Scaldasole
Via Donizetti 7, I-22040 Monguzzo (Como)
Tel: +39-031-651501
Fax: +39-031-617323
(Producer and wholesaler: dairy products and dried
products)
KI srl
Via Marchesi 9, I-10093 Collegno (TO)
Tel: +39-011-7791027
Fax: +39-011-725983
(Wholesaler of dried products)
Mustiola scrl
Via Ravennate 801, I-47023 Cesena (FO)
Tel: +39-0547-384523
Fax: +39-0547-631518
(Producer and wholesaler: fruits and vegetables)
Ass. Suolo e Salute
P.A. Mentuccia Augusto, Via Abbazia 17
I-61032 Fano (PS)
Tel: +39-0721-830373
Fax: +39-0721-830373
(Controller, certifier)
NBC
(New Bio Concept)
Corso Matteotti 12, I-10121 Torino
Tel: +39-011-5178621
Fax: +39-011-5178628
Web site: http://www.newbioconcept.com
(Exporter, importer)
Bioagricoop
Via Fucini 10, I-40033 Casalecchio di Reno (BO)
SANA
Fiere & Comunicazioni srl
Via San Vittore 14, I-20123 Milano
Tel: +39-028-6451078
Fax: +39-028-6453506
Web site: http://www.sana.it
(Yearly organic trade show)
WBT
(Well Being Trade)
Franz Rivetti
Via E. De Nicola 7 ter, I-10036 Settimo Torinese (TO)
Tel: +39-011-8977493
Fax: +39-011-8977575
(Wholesaler and trader: rice, pasta and dried
products)
Latvia
In 1998, there were approximately 200 farms and
roughly 19,000 hec tares under cer ti fi ca tion. Of these,
about 50 were biodynamic farms. The Biodynamic
Asso cia tion has a subsidiary in Grobina. Most farms
are in the 15- 30- and 45-hectare range; a few are
large units of 200 hectares. Production is extensive
and the main prod ucts are dairy meat, grains, fruits,
vege ta bles and honey.
Processing takes place at the primary level. The
absence of a domestic market is the main obstacle to
devel op ment. There are no natural food shops in Riga
and other urban areas, and attempts to interest the
supermarkets have so far failed. However, it is
believed that domestic marketing efforts may have
greater chances of succeeding when coherent
assortments of products become available. In the
meantime, products are sold – often with no price
premiums – on farm, and to hotels, embassies and
schools.
Buckwheat and honey have a reasonable export
potential.
Cer ti fi ca tion is car ried out by Ger many’s Demeter and
by an inde pendent national cer ti fi ca tion body working
on the basis of private standards. The national body
collaborates with the Ministry of Agriculture,
independent inspectors and farmers. The Ministry
supports the Latvian organic movement, although
there is no national law on organic pro duc tion.
Useful address
Latvijas Biologiskas Lausaimniecibas Biedriba
Kuldigas rajons, 3319 Renda
Tel: +371-33-47280)
105
Liechtenstein
This tiny (160 square kilometres) independent
principality with 31,000 inhabitants, squeezed
between Swit zer land and Aus tria, has no less than 32
organic farms (12% of all farms) on 605 hectares
(18% of all agri cul tural land). A large pro por tion of
the organic area is grass land (for milk cows). Animal
fodder and cereals are impor tant out puts. Roughly 5
hectares each are planted to vegetables and fruits
(including grapes for raisin pro duc tion).
There are seven licensed proc es sors, mainly dairies,
slaughterhouses and bakeries. Marketing is
sponsored by pri vate organi za tions. Organic prod ucts
are mar keted by the slaugh ter houses and dairies, or
are sold at the farm gate and by some health food
stores and a few super mar kets. The catering industry
is another outlet. Some quantities are exported to
Switzerland.
Farms are controlled by the Swiss body FiBL
according to VSBLO guidelines, and are certified by
VSBLO, another Swiss entity. Processors and
traders, on the other hand, are controlled by IMO
(also Swiss) and are certified by the
Liechtenstein-based VBO (Vereinigung Bäuerlicher
Organisationen im Fürstentum Liechtenstein).
VBO’s logo is an ear (Bio-Ländle-Produkt).
Useful address
Ingenieurbüro für Agrar- & Umweltberatung
Postfach 323, FL-9494 Schaan
Tel: +41-75-2329614
Fax: +41-75-2329631
(Information)
Lithuania
The number of organic farms in Lithuania rose from
107 in 1997 to 140 in 1998 with a total area of
roughly 200 hectares. They produce cereals,
vege ta bles, milk and meat.
The market has yet to develop and prod ucts are partly
sold on-farm. There are five processors of cereals,
including flour mills and bakeries. No dairy
proc essing takes place. Prod ucts are also sold in food
shops, including supermarkets in cities such as
Vil nius and Kaunas.
EKOAGROS has formulated organic standards and
car ries out cer ti fi ca tion activi ties.
106
Useful addresses
EKOAGROS
Lzüu, LT-4324 Kaunas
Tel/Fax: +370-7-296844
GAJA
(Lithuanian Society of Organic-Biological
Agriculture)
K. Douelaicio 2, LT-3000 Kaunas
Tel: +370-7-205421
Fax: +370-7-200423
Luxembourg
Land wirtschaft Lëtze burg car ries these activi ties out
for farms fol lowing bio dy namic stan dards.
Useful addresses
Veräin fir Biologesch-Dynamesch Landwirtschaft
Lëtzeburg
13 rue de la Gare, L-5353 Oetrange
Tel: +352-350245
Fax: +352-355961
Verenegung fir Biologesche Landbau Lëtzeburg asbl
Kräizhaff, rue de Luxembourg
L-1899 Kockelscheuer
Tel: +352-290404
Fax: +352-290504
Web site: http://www.luxnatur.lu
This small country (2,586 square kilo me tres, 412,000
inhabitants) had by mid 1998 around 625 hectares
(24 farms) devoted to organic farming, equiva lent to
0.5% of all agricultural land and 0.8% of all farms.
About a third of the area is bio dy nami cally farmed.
Malta
Dairy farming is the main activity; beef cattle, pigs,
goats and poultry (for both meat and eggs) are also
raised. Five farms pro duce organic vege ta bles, which
while reaching a volume that is close to half of the
overall national vege table output, is not suf fi cient to
cover demand. Organic fruit production (including
grapes) started in 1995 and is sup ported by the local
nature con ser va tion asso cia tion Hëllef fir d’Natur.
Moldova, Republic of
Some proc essing of milk, meat and cereals (bak eries,
pasta production, processing of breakfast cereals)
takes place, and there is a packing plant for fruits and
vegetables.
Organic con sump tion on a per capita basis is one of
the largest in Europe. As a result, the import trade in
vir tu ally all prod ucts is considerable.
Sales are made through a number of natural and
health food stores and at the farm gate. The biggest
supermarket chain, Cactus, offers in its large
hypermarket in Bertrange one of the widest
assort ments of organic prod ucts that can be found in
mainstream markets in Europe. The cooperative
BioG
(Biobaueregenosssenschaft
Lëtzeburg)
pro motes national pro duc tion. Organic farmers have
estab lished a whole saling entity called Bio- Gros.
Verenegung fir Biologesche Landbau Lëtzeburg
controls and certifies the majority of the farms and
processors. Veräin fir biologesch-dynamesch
Organic production, mainly of vegetables is being
organized in Malta by Italian companies. Inspection
and certification will also be carried out by Italian
entities.
Organic production in the Republic of Moldova is
beginning. Organic walnut kernels certified by the
German entity Lacon and IMO are already exported
to EU by Reforma-Werk Andreas Stellisch.
Useful address
Reforma-Werk Andreas Stellisch GmbH
Stellauer Hauptstrasse 8
22885 Barsbüttel-Stellau
Germany
Tel: +49-40-6757950
Fax: +40-40-67579520
(Production. trade)
Netherlands (see chapter 9)
Norway
In the begin ning of 1998, close to 12,000 hec tares in
1,310 farms were farmed organi cally. These made up
1.2% of all agri cul tural land and close to 1.5% of all
farms. Despite the rapid expansion in organic
farming in recent years, demand still far exceeds
supply. Nor we gian farms are gen er ally small family
farms which are some times run in addi tion to other
pro fes sional activi ties. Some farms are bio dy namic.
Land for grazing and for the production of fodder
takes up the greater proportion of the area under
organic management. Production of cereals,
vegetables, berries and herbs is significant. Barley
and oats are produced in larger vol umes than wheat
and rye because of the cli mate.
Milk and meat products are produced on livestock
farms on which cattle, sheep, goats and poultry are
raised. The pro duc tion of eggs and pork is lim ited by
the lack of organic feed stuff.
Some proc essing of dairy, meat and cereal prod ucts is
car ried out.
Norway was one of the very first coun tries to market
organic fish. This con sists of salmon from farms in
the fjords run under closed farming sys tems.
Sales are made mainly on the farms, and also
through natural food stores. Supermarkets are
starting to show an interest in organic prod ucts and
this interest is likely to intensify as the supply
increases. The imbal ance between domestic supply
and demand has resulted in sub stan tial imports and
minimal exports.
Norway is not a member of the Euro pean Union. But
as a member of the Euro pean Eco nomic Area (EEA),
it applies EU Regulation 2092/91. The sole official
cer ti fier is Debio.
107
Poland
In 1998, Poland had 185 farms (5,500 hectares)
cer ti fied by Ekoland and another 100 farms cer ti fied
by PTRE ((Polska Towarzyatwo Rolnietwo
Ekologlcznego, the Polish Society of Organic
Farming.) As the figures for Ecoland indicate, the
strong growth that began in 1990 (when there were
27 farms and 300 hectares certified) and continued
through to 1996 (236 certified farms on 6,855
hec tares) came to an end in 1998. The retrench ment
was due to the wholly underdeveloped domestic
market and the lack of export out lets.
Poland’s wide range of products includes fruits,
grains, oil crops, pulses and vegetables. Livestock
farming and bee keeping are also under taken. There
are some primary processing units producing such
items as coffee sub sti tutes. There are currently four
wholesalers.
Organic foods are sold in about 130 health food and
natural food stores, essen tially in the urban areas of
Warsaw, Krakow and other big cities. Supermarkets
have so far shown little interest in car rying organics,
but this situation is changing. An example is the
arrival of the French supermarket chain Carrefour,
which offers a full organic assortment. Poland’s
export trade, mainly with the Euro pean Union, is also
opening up.
Useful addresses
Debio
PO Box 50, N-1940 Bjoerkelangen
Tel: +47-63-856305
Fax: +47-63-856985
NOELL
(Norsk Oekologisk Landbrukslag)
Langeveien 18, N-5003 Bergen
Tel: +47-55-320480
Fax: +47-55-320345
Web site: http://www.home.sd.no/organic.no
(Information)
NORSOEK
(Norsk Senter for Oekologisk)
Landbruk, Tingvoll Gard, N-6630 Tingvoll
Tel: +47-7153-1342
Fax: +47-7153-1339
E-mail: nso@&post.nlh.no
(Information, development)
Ekoland, the leading certifier, spurred much of the
sector’s growth in the 1990s. It published its own
standards in 1994. To ensure a separation of
func tions, it estab lished Agro Bio Test in 1996 as an
independent entity; Agro Bio Test is now the
coun try’s main con trol body.
PTRE, another control and certifying body, has its
own standards. Among the foreign control entities
active in Poland are SKAL and the German Eco cert.
A law on organic pro duc tion has been drafted, but it is
awaiting pas sage by Par lia ment.
Useful addresses
Agro Bio Test
Ul. Nowoursynowska 166, PL-0287 Warszawa
Tel: +48-22-8439063
108
Fax: +48-22-8471562
(Control)
Ekoland
Przysiek/Toruniak, PL-87134 Zlawies Wielka
Tel: +48-56-6789239
Fax: +48-56-6789239
E-mail: [email protected] (Warszawa office)
Web site: http://free.ngo.pl/ekoland
(Certification, development)
is car ried out on an ad hoc basis. Por tugal’s poten tial
as an exporter is essen tially good. It is a fairly small
importer.
Certification
Socert Portugal Certificação Ecológica, the
Portuguese leg of Ecocert, is the only
State- accredited cer ti fier. Its logo often appears with
that of Agrobio, a pro duc ers’ asso cia tion.
Portugal
Production
In the beginning of 1998, Portugal had 321 farms
(0.1% of all farms) on 11,584 hec tares (0.3% of the
total agricultural area) under organic production.
Strong growth from 1993 was followed by a fall in
1996 and a resurgence thereafter. About 4,500
hec tares are planted to olives; 1,800 hec tares to fruits,
particularly citrus; 1,500 hectares to cereals; 600
hec tares to grape vine; 170 hec tares to vege ta bles and
110 hectares to medicinal and culinary herbs.
Although there are 1,350 hec tares of cer ti fied pas ture
land, there are very few cer ti fied animal prod ucts on
the market.
Por tugal is member of the AgriBio Medi ter raneo (see
Italy).
Processing and trading
Portugal produces wine, port wine and other
products. It has some packing plants. Price is the
major obstacle to the devel op ment of the national and
international markets, although there is consistent
growth in the first and good poten tial in the second.
Large quantities of organic products continue to be
sold as conventional items and without a price
premium. Urze, a wholesaler of fresh products in
Mon tigo (near Lisboa) has built a strong organic line,
as has the producers’ cooperative Biocoop, also in
Lisboa.
Prod ucts are retailed by spe cial ized shops, mainly in
the urban areas, with growth particularly strong in
Lisboa and weaker in Porto. Sales are also car ried out
in farm ers’ mar kets as well as by super market chains
such as Pingo Doce and Jumbo. Mark-ups in the
supermarkets appear to be high, which slows down
sales.
The export trade, mainly with Ger many and France,
Useful addresses
Agrobio
(Associação Portuguesa de Agricultura Biológica)
Calçada de Tapada 39 R/e Dto, P-1300 Lisboa
Tel: +351-1-3623585
Fax: +351-1-3623586
Socert Portugal Certificação Ecológica
R. Alexandre Hergulano 68-1E Es, P-2520 Peniche
Tel: +351-62-785117
Fax: +351-62-787171
Romania
A significant volume of organic products like wheat
is being produced by companies like Agigea sa in
Constanta. Among the certifiers are the German body
Lacon. The entire crop is exported to the European
Union, mainly to France and Germany. In
Transsylvania the Bioterra organization is starting an
organic network.
Useful addresses
Asociatia Bioterra
3442 Luna de Sus nr. 376, jud. Cluj
Tel: +40-64-266606
Fax: +40-64-266709
Eco Rural
Sos. Oltenitei 35-37, Room 43
69656 Bucharest IV
Tel: +40-1-2408789
Fax: +40-1-2408799
Russian Federation
Production
The first really suc cessful attempts to estab lish organic
farming in the Rus sian Fed era tion were car ried out by
Ekoniva, an organi za tion with roots in Ger many. In
1994 Ekoniva certified 11 farms working 3,609
hec tares. By 1997, the fig ures had risen to 15 farms
and 4,647 hec tares. How ever, the main cash crops –
buckwheat, barley, oats, wheat and flax – are
essentially traded as conventional products on the
local market for various reasons. These include the
absence of domestic demand for organic products,
failure to meet requirements for the export trade, or
farmer speculation. Another organization that has
been active in devel oping organic farming is Altagro.
There are a few pockets of non- certified organic and
biodynamic production throughout the Russian
Fed era tion, including the Irkutsk area in Siberia, but
prod ucts are sold on the con ven tional market.
A number of pro ducers, proc es sors, whole salers and
retailers are planning to work together to convert a
number of mixed farms in one area (province of Örel)
to organics. These produce cereals, fruits and
vegetables, dairy products, meat, and poultry meat
and other prod ucts. The inten tion is to dis tribute the
organic output to super mar kets in Moscow and to tap
the con sid er able export poten tial.
Processing, manufacturing and trading
The absence of an appropriate processing and
manufacturing infrastructure is one of the main
obstacles to the development of organics in the
Russian Federation. Ekoniva has built a
grain- processing plant in Kaluga, pre domi nantly for
hulling buckwheat. There is virtually no national
market, a situation which may change if the
above-mentioned conversion project takes off.
Moscow super mar kets carry a few imported organic
items, particularly the Hipp baby food from
Ger many. Buck wheat is so far the only export crop
that has encountered some success. This too is
expected to change.
Ekoniva has been instrumental in lobbying
Par lia ment for an organic law and has been appointed
by Gosstandard (the Committee of Russian
Federation for Standardization, Metrology and
Certification) as the certifying organization for a
voluntary certification scheme. The certification
work of Ekoniva is super vised by the Swiss IMO. In
order to ensure separation of interests, certification
activities (Ekoniva MO) have been split from
production, processing and trading activities
(Ekoniva AO).
109
Useful addresses
Altagro
Paveletskaja Nabereshnaja 4/5 Etage
Dom 53, Moscow
Tel/Fax: +7-095-9596236
Ekoniva AO
PO Box 1, Nemchinowka-1, Moscow Oblast 143013
Tel/Fax: +7-095-5918460
(Production, processing, trading)
Ekoniva MO
PO Box 1, Nemchinowka-1, Moscow Oblast 143013
Tel/Fax: +7-095-5918460
San Marino
In this tiny republic (61.2 square kilometres, 24,500
inhabitants), an enclave in Italy near the Adriatic
coast, there is no organic production to speak of.
Some organic herbs are produced for a local
cos metics and food sup ple ment industry, but are not
certified. The Italian organization Mustiola has
issued a franchise for a natural food shop in San
Marino which sells an array of organic prod ucts.
Slovakia
The area under conversion in Slovakia expanded
from around 12,000 hec tares in 1992 to an esti mated
17,000 hec tares in 1996. Some export trade with the
Euro pean Union, for example in wheat, has already
taken place. The possibility for set ting up a scheme
for organic sugar beet is being studied.
Useful addresses
Dimini spol sro
Pribinova
POB 24, 92001 Hlohovec
Tel: +421-804-7425829
Fax: +421-804-7425827
(Development, trade)
Natural Alimentaria sro
L’Adová Ul.c.8, 81105 Bratislava
Tel: +421-7-399466
Fax: +421-7-398109
(Development, trade)
Slovenia
In 1998, Zdruzenje ekolokih kmetor Slovenije
(SOFA) cer ti fied its first 22 farms (on 270 hec tares)
110
of mixed pro duc tion and 1,500 hec tares of high land
pas ture. Another 12 farms in the north- east are being
certified by the Aus trian Bio garantie. The output is
diverse: fruits, grains, vegetables, meat and dairy
prod ucts.
Slovenia is member of AgriBioMediterraneo (see
Italy).
Today vir tu ally all prod ucts are proc essed and sold on
farm. However, health food stores in Ljubljana and
other cities, which now import most of their organic
prod ucts, are expected to pick up the national pro duce
in the near future. It is also hoped that supermarkets
will soon show an interest in carrying Slovenia’s
organic prod ucts. No exports are as yet planned.
SOFA has established standards and is the national
certification body. The Ministry of Agriculture is
for mu lating national stan dards.
Useful addresses
Institut Za Trajnostni Razvoj
Metelkova 6, 1000 Ljubljana
Tel: +386-41-725991
Fax: +386-61-1337 029
(Development)
Mevi-Mediacor-Vigred
Glavni trg 10, 3000 Celje
Tel/Fax: +386- 63412111
SOFA
(Zdruzenje ekolokih kmetor Slovenije)
Metelkova 6, 1000 Ljubljana
Tel/Fax: +386-61 1343 772
The Business Research Centre
Zadruzna 9, 1218 Komenska
Tel/Fax: +386-841325
(Production)
Spain
Production
In 1998 Spain had 3,526 organic farms (0.3% of all
farms) working 152,100 hectares (0.6% of all
agricultural land), up from 1,200 farms and 28,130
hectares in 1995, and from 264 farms and 2,140
hectares in 1985. The land is cropped as follows:
pas tures for cattle and sheep; fruits (pri marily citrus
but also grapes, kiwi fruit, peaches, nectarines and
strawberries); vegetables (carrots and most other
vegetables); grain for animal fodder; herbs; nuts
(hazelnuts, almonds); pulses; oil-seeds; olives; and
rice. Pro duc tion takes place all over the country, with
a larger concentration in Andalucía, Aragón,
Cata lonia and Valencia.
Although local consumption of organic products is
growing, Spain is primarily an exporter of organic
produce. Its climate makes it possible to offer
early- season crops to Euro pean mar kets.
Spain is a member of AgriBio Medi ter raneo (see Italy).
Processing
There are several hundred, generally small,
processors, including bakeries; cereal processors;
dairies; fruit and vege table packers; makers of tofu,
other soy prepa ra tions and seitan; olive oil mills; and
wine producers. Most of the larger food processors
have so far kept out of the organic sector although
interest is growing.
Some of the best- known proc es sors are as fol lows:
q
Albet i Noya, Subirats-Barcelona: wine;
q
Aliment Vegetal, Barcelona: cereals and baby
foods;
q
Almendra del Sur sa, Málaga: almonds;
q
Alter Vida, Valencia: fruits and vegetables;
q
Bioartsa, Barcelona: bakery and fresh products;
q
Cal Valls, Lérida: fruits juices and preserves;
q
Central de Productos Biológicos sa, Barcelona:
cereals, dry groceries, preserves;
q
Eco-Llevant, Alicante: fruits and vegetables;
q
Herbes del Moli sc, Alicante (herbal teas and
spices);
q
Luz de Tierra sc, Zaragoza: fruits, oil;
q
Monsoya, Viladrau: organic rice drink and soy
products;
q
Natursoy and Vegetalia sl, Barcelona: vegetable
protein products;
q
Nuñez de Prado CB, Córdoba: oils;
q
Silvestre Alcolea sa, Huesca: rice, cereals, seeds,
fruits;
q
Vea sa, Lérida: olive oil.
Most organic proc es sors and traders now coop erate
to improve their market access within the recently
created FABIO, the Asociación Española de
Transformadores y Comercializadores de Productos
Biológicos.
Trade
The Spanish organic market is under de vel oped and is
cur rently valued at between Ptas 4.5 bil lion and Ptas
5 bil lion ($32 mil lion - $35.5 mil lion). A large part of
the market is supplied by imports, especially of
processed prod ucts. The value of organic exports is
currently estimated at Ptas 7 billion ($50 million);
exports con sist mainly of fruits and vege ta bles, rice,
nuts and oils.
There are over 2,000 herboristerías, shops selling
herbs, cosmetic products and a small assortment of
organic products, and some 150 well-established
natural food stores with a full organic assortment,
excluding meat prod ucts. In cen tral Bar ce lona, on the
Vía Laie tana, there is an organic super market with a
restaurant called Comme-Bio, and more of these
combined outlets are to be opened. Barcelona has
various other organic restaurants. Sales at the farm
gate and by con sumer asso cia tions and coop era tives
are sig nifi cant.
Entry into super mar kets con tinues to be ham pered by
the lack of supply and the absence of a con sis tent and
performing supply system, although the main
Spanish retail organi za tion, El Corte Inglés, has been
carrying organic fruits and vegetables and a small
range of dried products for many years. Continente
recently took up the French La Vie organic
assort ment. It is expected that with the offer of a fuller
range of products and the establishment of efficient
supply structures the interest of the mainstream
dis tri bu tion system will grow rap idly.
111
found, for instance, in Badajoz (Extremadura);
Barcelona (Catalonia); Zaragoza (Aragón); La
Coruña (Galicia); Logroño (Rioja); Madrid
(Madrid); Muriedas Camargo (Cantabria); Toledo
(Castilla la Mancha); Oviedo (Asturia); Palma de
Mallorca (Baleares); Pamplona (Navarra); Santa
Cruz de Tenerife (Canary Islands); Sevilla
(Anda lucía); Valencia (Valencia); Val la dolid (Cas tilla
y León) and Vitoria (Basque Prov inces).
Useful addresses
Asociación Vida Sana
Clot 39, Bajos, E-0818 Barcelona
Tel: +34-93-5800818
Fax: +34-93-5801120
(Publisher, organizer Biocultura fair)
Central de Productos Biológicos sa
Ctra. Sabadell a Granollers km 12,7 NE 3
E-08185 Llica de Vall (Barcelona)
Tel: +34-93-8436517
Fax: +34-93-8439600
(Importer, exporter, wholesaler)
CRAE
(Comisión Reguladora de la Agricultura Ecológica)
Paseo Infante Isabel, 1, E-28014 Madrid
Tel: +34-91-3475480
Fax: +34-91-3475410
(Coordination of control and certification bodies)
FABIO
(Asociación Española de Transformadores y
Comercializadores de Productos Biológicos)
Calle Bonavista 15-2E-5a, E-08012 Barcelona
Tel/Fax: +34-93-4157184
(Association of processors and traders)
Sweden (see chapter 10)
Switzerland (see chapter 11)
Trade shows
The Asociación Vida Sana organizes an annual
exhibition, Biocultura, both in Madrid and in
Bar ce lona.
EC Regulation 2092/91 is applied through control
authori ties linked to the depart ments of agri cul ture in
autono mous com mu ni ties or the appro priate regional
bodies. These authori ties belong to CRAE (Comisión
Reguladora de la Agricultura Ecológica) and are
The former Yugoslav Republic of
Macedonia
Organic agri cul ture is just begin ning in this country.
The Netherlands establishment SKAL certifies
herbs.
Ukraine
The number of organic farmers in Ukraine is
increasing. Their output includes grains (wheat) and
fruit.
112
Proc essing is lim ited to pri mary on- farm proc essing.
The domestic market has yet to be developed.
However, exports to Western Europe, largely of
wheat, are increasing.
Netherlands.
Export control and certification are carried out
mainly by SKAL. The Russian certifier Ekoniva is
also active in Ukraine.
Certification is currently done by the Netherlands
body SKAL. Terra’s Natural Food Association is
set ting up a national cer ti fication body.
United Kingdom (see chapter 12)
Useful addresses
Yugoslavia
Production is con cen trated around Blace (which has
about 500 fruit producers working 4,000 hectares),
and in Gadzin Han (with another 500 fruit pro ducers
and 4,000 hectares). The current output includes
apples, cher ries, pears, prunes, quinces, rasp ber ries,
blackberries, rose hips and strawberries. The
production of cereals and animal products is being
planned.
Fruit is frozen as well as processed into juice,
concentrates and marmalade. There is no domestic
market as yet. The existing production has been
devel oped mainly in coop era tion with a trader in the
Yugoslavia is member of the AgriBioMediterraneo
(see Italy).
Den Juro
Prote Mataje 25a, YU-11000 Beograd,
Tel: +381-11-451603
Fax: +381-11-4462129
Terra’s Natural Food Association
Trg. Cara Jovana Nenada 15, YU-24000 Subotica
Tel: +381-24-24699
Fax: +381-24-553116
Other European countries
As of December 1998, there was apparently no
certified organic agriculture in Albania, Andorra and
Monaco, though plans are being discussed in Andorra.
The Americas (excluding NAFTA countries)
Most countries in the region have an organic
agri cul tural sector though at widely varying levels of
development. The greater part of production is
export-oriented, but numerous farmers, women’s
organi za tions and NGOs prac tice organic agri cul ture
to attain self-sufficiency in food for themselves or
their members and for environmental reasons.
Among the leading plant products are cane sugar,
cocoa, coffee, cotton, fruits (a wide variety of exotic
fruits, bananas), grains (including the tropical grains
ama ranth and quinoa), maté (also known as Para guay
tea, obtained from the leaves of the shrub Ilex
paraguayensis), medicinal and culinary herbs, nuts,
oil-seeds (sesame, sunflower and saf flower), olives,
pulses (soy and other beans), spices (vanilla), tea,
wine and honey. Livestock products include dairy
prod ucts, meat, honey and wool.
In most countries certified organic production and
trade expanded steadily in the 1990s, the latter
despite the lack of processing and packing plants.
The undeveloped national markets are a huge
problem. Farmers’ groups organize local and national
markets and some of them are members of the
network RELACC (Red Latinoamericana de
Comercialización Comunitaria) under which they
work together to make their products available to
other countries in the region through a common
dis tri bu tion system.
National mar kets are mostly unde vel oped, as a result
of which farmers are largely dependent on the export
trade for their livelihood. Many producers lack the
infra struc ture for direct exporting and have to rely on
exploitive intermediaries popularly called coyotes.
Access to tech nical assis tance and rea son able credit
remains dif fi cult.
Argentina has a structured national distribution
system as well as a con trol and cer ti fi ca tion system
that has obtained equivalency with EC Regulation
2092/91. In the other countries foreign control and
certification bodies continue to be active, either
directly or through branch offices or sub sidi aries. In
general, how ever, the ten dency is to set up national
bodies. The umbrella organi za tion Bio- Latina groups
Bolivian, Colombian, Nicaraguan and Peruvian
certifiers under its wing. The stringent EU rules on
the accredi ta tion of con trol bodies in third coun tries
puts a great deal of pressure on control and
certification bodies in these countries to organize
them selves in such a way as to qualify.
Antigua and Barbuda, Bahamas,
Barbados, Belize
Organic agriculture is in its first stages in all these
countries, with Belize beginning to produce cocoa
and fruits.
Argentina
Production
Organic agri cul ture took off in Argen tina in the late
1980s and early 1990s and soon became a
tremendous success. The early passage of national
leg is la tion and its attain ment of equiva lence with EC
Regulation 2092/91, the export pro mo tion efforts of
Promex and the concurrent development of the
national and export markets contributed in a large
measure to this suc cess.
In 1996, 346,978 hectares were being organically
farmed by over 900 farmers. Less than 10% of this
area was used for cropping; the rest was mainly
devoted to livestock farming: 211,000 hectares for
beef cattle, 4,600 for milk cows, 864 hectares for
sheep, 21 hec tares for poultry. Some land was also set
aside for api cul ture, woods and fallow fields.
Of the land under cropping, 23% was planted to
sun flowers, 16% to olives and about 14% to wheat.
Soy production is expanding rapidly as is fruit
pro duc tion. Argen ti na’s organic prod ucts include the
fol lowing:
q
Alfalfa;
q
Cotton and cotton textiles;
q
Fruits, dried (prunes, raisins);
q
Fruits, fresh (apples, blackcurrants, cherries,
citrus, elderberries, grapes, melons, mulberries,
pears, raspberries, strawberries);
q
Fruits, processed (apple concentrate, fruit pulp,
grape juice, marmalade, purée);
113
q
Grains (buckwheat, maize, millet, oats, rye,
sorghum, wheat) and bread;
q
Herbs (basil, dill, parsley, oregano, rosemary,
sage, savory, tarragon, thyme) and spices (pepper);
q
Legumes, dried (beans and soy beans for milk,
oil and fodder);
q
Maté;
q
Meat (beef, lamb, chicken), dairy products
(milk, cheese), other poultry products (eggs);
q
Nuts (peanuts);
q
Oil crops and oil (flax, olive, safflower,
sunflower);
q
Roots and tubers (carrots, potatoes);
q
Sweeteners (cane sugar, honey);
q
Tea;
q
Vegetables, fresh (artichokes, asparagus,
cucumbers, eggplants, garlic, onions, tomatoes);
q
Wine.
Argentina has a large output of organic olive oil,
estimated at around 2 million litres annually. The
livestock sector is growing rapidly. The certified
api cul tural sector (com prising three proj ects in 1995)
pro duces about 40 tons of honey yearly. The output of
cotton is small but rising.
Expansion has been particularly high for bakeries
(bread) and for processors of olive oil, wine,
sun flower seeds, tea, maté, herbs, polenta, cane sugar
(in the Misiones province), fruit, meat, apple
concentrate and grape juice. The dairy com pany La
Seren is sima pro duces organic milk.
The major super mar kets in Argen tina such as Jumbo,
Norte, Car re four, and the vast majority of the natural
food and health food stores offer some organic
products. The first two multiples have fairly large
assortments including fruits and vegetables, dairy
prod ucts, meat and dry prod ucts. Some of the smaller
super mar kets offer vege ta bles and canned prod ucts,
and one of them retails beef and bread. Domestic
sales are increasing as a result of efforts to develop
the domestic market.
Almost 70% of Argentina’s organic produce is
exported; exports are rising strongly at an annual
growth rate of about 25%. In 1996, more than 7,000
114
tons of organic products were sold abroad. The
Euro pean Union is the most impor tant market, taking
about half of Argen ti na’s export volume. The United
States absorbs most of the remaining half, with some
exports going to Canada, Mexico and Japan.
The leading export products (and some of the
exporters) are apples and pears (exported by PAI,
Agro Roca and Expofruit in Río Negro Province);
citrus (Ecoc itrus); can ta loupes; small fruits (fresh and
processed); garlic (El Treboll del Sur in Mendoza
Province, Argentbio in Buenos Aires); onions and
other vegetables; grains; oil-seeds, soy; cane sugar;
honey; and wine.
Argensun in Buenos Aires is the dominant exporter
of hulled sun flower ker nels and grains. Agro pecuaria
Paso Viejo (Cór doba Prov ince), Bioolive sa (Buenos
Aires), Viñedos San Nicolás sa (which has 1,200
hec tares planted to olives) are olive oil pro ducers and
exporters. Eco siembra (Buenos Aires) is a fruit and
vege table packer and exporter
certification agencies. Certification agencies are
required to register annually with the National
Register of Certifying Companies for Organic
Pro duce. Cer ti fi ca tion bodies that do not comply with
the Resolution are subject to sanctions. Organic
import prod ucts must origi nate from coun tries having
organic regu la tions equiva lent to those of Argen tina;
these regu la tions must be accepted by SENASA and
the name of the cer ti fi ca tion body must appear on the
National Reg ister. Addi tion ally, each ship ment must
have a cer tifi cate iden ti fying the product as organic.
As of June 1997, no country had asked for approval
of its organic stan dards by the Argen tine authori ties
and no foreign certification agencies were on the
National Reg ister.
Argentina’s producers, processors, traders, and
control and certification bodies are united in the
umbrella organization MAPO. This organization
coor di nated the 12th IFOAM Sci en tific Con fer ence in
Mar del Plata in November 1998.
Useful addresses
The export proc essing of meat involves slaugh tering,
butch ering and vacuum- packing, which are sub ject to
international inspection. Eco-Pampa sa (Buenos
Aires) exports some organic beef to Europe.
Avrigreen sa exports organic poultry. Tierra Libre
and Sol de Acuario in Buenos Aires are whole salers
and exporters which also offer assortments under
generic brands in supermarket and hypermarket
chains like Disco Jumbo, Norte, Carrefour, and in
around 600 health food stores.
Certification
Argen tina has its own national stan dards for organic
crop and livestock production. SENASA, the
Argentina Agri-Food and Quality National Service,
administers these stan dards. Argen tina is on the EU
list of approved third countries as far as organic
stan dards and cer ti fi ca tion are con cerned.
There are around nine certification bodies in the
country. In 1995, three agen cies were accred ited for
cer ti fi ca tion: Argencert, OIA (Organi za ción Inter nacional Agro pecuaria) and APROBA (Asocia ción de
Productores de Buenos Aires). OIA is mainly
involved with the certification of animal products.
Argencert is the main certifier and is IFOAMaccredited.
Resolution IASCAV No. 82/92 sets out specific
requirements for national as well as foreign
AGROINVEST
Tel/Fax: +54-11-43936934/38
(Producer, trader)
APROBA
(Asociación de Productores de Buenos Aires)
Vicente López 2698, RA-Quilmes 1878
Provincia Buenos Aires
Tel: +54-11-42542222
Fax: +54-11-44320448
Argencert
Bernardo de Irigoyen 760, piso 10, Of. B
ARG-1072 Buenos Aires BA
Tel: +54-11-43421479
Fax: +54-11-43317185
Web site: http://www.argencert.com
Ecofarmers sa
Bernardo de Irigoyen 8, 6 piso
ARG-1379 Buenos Aires
Tel/Fax: +54-11-43343124
(Producers, traders)
MAPO
Sarmiento 1562, 7º piso, Dept. 6
Tel/Fax: +54-11-43825562
(Umbrella organization for the organic sector)
OIA
(Organización Internacional Agropecuaria)
Av. Santa Fe 830
ARG-1641 Acassuso, Buenos Aires
Tel: +54-11-47989084 and +54-11-47934340
Fax: +54-11-47934340
Sol de Acuario
Av. Belgrano 355, piso 11
Tel/Fax: +54-11-47618482
(Processor, wholesaler)
Tierra Libre Biodiversidad SA
Bernardo de Irigoyen 190, Piso 8
Tel/Fax: +54-11-43429001
(Processor, trader)
Bolivia
Production
Bolivia is one of the world’s leading producers of
organic cocoa and is an important producer of
organic coffee. With support from Switzerland,
Agruco (Agroecológica Universidad Cochabamba)
has been instrumental in the growth of the organic
sector in the country.
The umbrella organization, Asociación de
Organizaciones de Productores Ecológicos de
Bolivia (AOPEB), was founded in 1991. It has seven
member organizations. It focuses mainly on cocoa
although it also deals with prod ucts like coffee and
Brazil nuts.
Central de Cooperativas Agropecuarias (El Ceibo),
was the first pro duc ers’ asso cia tion to adopt organic
practices. It groups cooperatives producing 1,500
tons of cocoa on 8,000 hectares of land. Half of the
cocoa pro duced meets organic stan dards. Among the
members producing other crops such as paranuts,
quinoa, coffee and hibiscus are Anapqui, Cam pesino
and Minga.
Bolivia’s other organic products include fresh fruits
(cher ries, egg fruit, goose ber ries, grape fruit, guavas,
limes, mandarins and oranges, mangoes, papayas,
passion fruit, pineapples, plums, tamarind,
water melons), dried fruit (apples, bananas, fruit teas);
proc essed fruit (juices and purées); nuts (Brazil nuts);
oil crops (sesame) and oils; dried legumes
115
(soybeans); grains (amaranth and quinoa);
sweet eners (sugar, honey); and other proc essed food.
Trade
Bolivia started to export organic cocoa in 1987. In a
more recent year, organic cocoa made up about 75%
of all of its exports of cocoa and nearly 4% of its
exports of non-traditional products. Most exports
were sold in fair trade mar kets. There appears to be
some export of sugar to France.
Anapqui (in La Paz) exports coffee and hibiscus, El
Ceibo (also in La Paz) exports cocoa, and Natu raleza
(Cocha bamba) exports dried fruits.
GTZ is involved in an organic trade promotion
project in cooperation with the Bolinvest. (The GTZ
Adviser is attached to the Bolinvest Santa Cruz
Office.)
Certification
Bio- Latina and Boli cert are the national con trol and
cer ti fi ca tion bodies. They are seeking accredi ta tion at
IFOAM and EU levels. Bio-Latina is also active in
Columbia, Nica ragua and Peru. For eign con trol and
certification bodies continue to work in Bolivia. An
example is IMO, which has a subsidiary in the
country.
Potential
The organic agricultural techniques used in Bolivia
are similar to the country’s traditional cultivation
practices. As mechanization and the use of
high-yield, input-dependent varieties have not yet
spread extensively, the conversion of farms to
organic agriculture can be carried out with relative
ease and within short periods.
Useful addresses
AGRUCO
(Agroecológica Universidad Cochabamba)
Casilla 3392, Cochabamba
Tel: +591-4-252601
Fax: +591-4-252602
(Development)
AOPEB
(Asociación de Organizaciones de Productores
Ecológicos de Bolivia)
J.J. Pérez 268A, Casilla 1872, La Paz, Zona Central
Tel/Fax: +591-2-333331
116
Web site: http://www.rds.org.bo/aopeb
Bio-Latina
Edificio Cámara de Comercio, of. 406
Avda Mariscal Santa Cruz, La Paz
Tel/Fax: +591-2-377338
Bolicert
Casilla 13030, General Gonzálves 1317, La Paz
Tel/Fax: +591-2-310846
(Certification)
has a large number of coop era tives, small holders, and
firms practising organic agriculture. Producers are
usually members of a regional association which
provides training and assistance in production and
marketing, and promotes certification. In
collaboration with other organizations, the Instituto
Biodinámico runs an organic seed bank.
Among Bra zil’s organic output are the fol lowing:
q
Cane sugar;
q
Cocoa;
BOLINVEST
Calle Abdón Saavedra 2120
PO Box 141
La Paz
Tel: +591-2-411717
Fax: +591-2-414535
Web site: http://bolinvest.org/main/contact.htm
q
Coffee;
q
Cotton;
q
Essential oils;
q
Fruits, fresh (apples, grapes, banana, citrus);
q
Grains (quinoa, wheat);
Santa Cruz Regional Office
Tel: +591-3-473754
Fax: +591-3-471808
E-mail: [email protected]/
q
Herbs and spices (pepper, cloves);
q
Honey;
q
Legumes, dried (soybeans, black beans);
FIDES
(Fundición Integral de Desarrollo)
Casilla 1911, Avda. Santa Cruz 187
Santa Cruz de la Sierra
Tel: +591-3-472278
Fax: +591-3-472279
(Production, trade)
q
Maté;
q
Nuts (cashew, Brazil nuts);
q
Oil crops (sesame);
q
Oils and fats (palm oil, palm kernel oil and fat);
q
Processed fruit (banana puree);
SIBIO SA
(Sociedad Impulsora de Productos Ecológicos de
Bolivia)
Barrio Hamacas, Calle 1 Oeste
Pasillo 3, No. 46 Casilla 4299
Santa Cruz de la Sierra
Tel: +591-3-438641
Fax: +591-3-438120
(Trade)
q
Tea;
q
Vegetables, fresh (e.g. garlic).
Brazil
Production
Rio de Janeiro hosted the UNCED Earth Summit in
1992 (which issued the famous Agenda 21 on
sustainable agriculture). In the same year São Paulo
played host to the 9th International Scientific
Conference of IFOAM.
Brazil has a strong tradition in organic and
bio dy namic agri cul ture dating back to 1973. Today, it
Processing
There are at least two asso cia tions coor di nating the
activi ties of pro ducers for proc essing pur poses. One
is AOPA (Associação de Agricultura Orgánica do
Paraná) which deals with producers of onions,
pota toes and pump kins. The other is Terra Pre ser vada
Alimentos Orgánicos in Colombo, Paraná, which
handles acerola, coffee, mango, maté, passion fruit,
soy beans and tea.
Among Brazil’s processing enterprises are Produtos
Naturais Planeta Verde Ltda in Lucélia (São Paulo),
better known as Fazenda Jacutinga, which is one of
the oldest organic cane-sugar producers and
exporters in the world. Duas Rodas Indus trial Ltda in
Jaraguá do Sul (Santa Catarina) is a prominent
processor of fruits, producing banana purée for
example. Ecocitrus in Montenegro (Rio Grande do
Sul) is a fruit packer, and Agro palma SA in São Paulo
(São Paulo) is a palm-oil processor. Latsis Ltda in
Curi tiba (Paraná) is a honey pro ducer.
In addition, there are numerous small processing
facilities.
Trade
Although the national Bra zilian market is in its early
stages of development, an increasing number of
products are sold domestically. Exports are
significant and were recently estimated at around
3,000 tons annually. The most important certified
products are: fruits (such as grapes and apples);
vegetables; wheat; tea; coffee; sugar; nuts; sesame;
palm oil and essen tial oils.
117
and rosehip), and spices (chillies).
Trading and certification
There is vir tu ally no domestic market although there
are a few spe cial ized stores in San tiago which are run
jointly with the Asociación Tierra Viva.
Supermarkets are expected to start car rying organic
prod ucts as the supply grows.
Exports to Europe and the United States are
developing steadily. Agro-Frio sa in San Felipe,
Afodech Ltda in Osorno, Surfruit Ltda in Santiago
and Com er cial Frutícola sa in San tiago are promi nent
exporters of organic fruits and vegetables. Sociedad
Agrícola y For estal Casino Ltda in San tiago exports
dehydrated wild fruit (rosehips) and aromatic herbs
such as cedrón (verbena). Cambiaso Hermanos sa
(Santiago) and Índex Salus Ltda (Villarrica) export
herbal teas and medicinal herbs respec tively.
The Insti tuto Biodinámico is an IFOAM- accredited
certifier. A number of foreign inspection bodies are
active in the country.
The domestic entities CCO and PROA carry out
control and certification activities, as do various
for eign bodies.
Useful addresses
Useful addresses
AAO
(Associação de Agricultura Orgánica)
Av. Francisco Matarazzo 455, Caixa interna 24
05001-900 São Paulo
Fax: +55-11-2638013
Web page: http://www.muitosmeios.com.br/aao
Instituto Biodinámico
Caixa Postal 321, 18603-970 Botucatu (São Paulo)
Tel: +55-14-8225066
Fax: +55-14- 8223648
Web site: www.laser.com.br/ibd
(Certification, development)
Chile
Production and processing
While organic agriculture in Chile began in the
1970s, the major breakthrough took place in the
1990s. In 1998, there were around 200 farms with
2,700 hectares under organic production. Crops
included fresh fruit for export (raspberries, apples,
and especially kiwi fruit), fresh vegetables (green
beans, asparagus), proc essed fruit (frozen purée, e.g.
of raspberry, and apple concentrate), wine, grains
(e.g. quinoa), materials for herbal teas (e.g. camomile
CCO
Almirante Riberos 43, Providencia-Santiago
Tel/Fax: +56-2-6353051
CLADES
(Consorcio Latinoamericano sobre Agroecología y
Desarrollo)
Casilla 97, Correo 9, Santiago
Tel/Fax: +56-2-2338918
(Development)
Enec Consultores Asociados
Sargento Aldea 902, Chillán
Tel/Fax: +56-42-210752
(Development)
PROA
(Corporación de Promoción Orgánica Agropecuaria)
Simón Bolívar 7305K, La Reina-Santiago
Tel/Fax: +56-2-2775995
Colombia
Production
Colombia’s organic output includes the following
118
products: fresh fruits (bananas, guavas, papayas,
mangoes, pineapples), nuts (Brazil nuts), oil crops
(palm, coconut), coffee, sugar cane, honey, herbs and
spices (mint, cori ander, thyme), aloe vera and cotton.
There are also some organic nurseries and organic
flower pro duc tion may be ini ti ated.
Processing, trade and certification
Processing facilities are insufficient but Columbia
has an organic palm oil refinery and has long been a
major supplier of organic palm oil to European
organic margarine producers and other processing
indus tries. Com pañía Envasa dora del Atlán tico Ltda
in Bar ran quilla pro duces con cen trates and purées of
mango and goyave. Agro in dus trial Hun zahua Ltda in
Cundi na marca processes sugar cane.
Exports of other prod ucts to the Euro pean Union and
the United States are increasing. The Davilla
Company exports bananas to France and Germany.
There is as yet no formal national dis tri bu tion system,
but groups of organic farmers make their products
avail able to the local com mu ni ties.
Control and certification are carried out mainly by
foreign entities. The national certification body
Biomuisco collaborates with Bio-Latina in Bolivia,
Nica ragua and Peru.
organic producers, working on farms ranging from
0.5 hec tares to 150 hec tares. The area under organic
farming is now esti mated at 3,500 hec tares. The main
produce is bananas. Other products include cocoa;
coffee, raw and toasted; fruits – fresh (blackberries,
raspberries, mangoes), dried and processed; grains
(rice); herbs and spices (vanilla); honey; oil crops
(coconut); roots, processed (such as manioc chips);
spirits (rum); sugar cane; tea; and vegetables, fresh
and proc essed.
There were around 550 hectares of certified organic
coffee in the mid 1990s, producing 250 - 300 tons of
coffee annu ally. As pro duc tion is on the rise, the output
could reach 1,000 tons by the turn of the cen tury.
Farmers generally belong to producers’ groups or
cooperatives. APPTA (Asociación de Pequeños
Productores de Talamanca) is a producers’
organization with around 1,500 members, of which
1,050 have certi fied farms; the rest of the farms are
under conver sion. APPTA claims that it covers about
2,000 hectares of certi fied farms; among their outputs
in 1996 were 160 tons of cacao and 1,000 tons of
bananas. The association is establishing a
fruit- processing plant.
In general, there is strong interest in organic
agri cul ture in the country and the organic food sector
is devel oping fast.
Useful addresses
CETEC
(Corporación para Estudios Interdisciplinarios y
Asesoría Técnica)
PO Box 26279, Cali
Tel: +57-23-577018
Fax: +57-23-560496
(Production, processing, development)
The Uni ver sity of San José has a research pro gramme
(Programa de Agricultura Orgánica) on organic
agriculture and several other projects on aspects of
organic farming are being car ried out in the country.
Corporación Colombia Internacional
Calle 16, No. 6-66, P6, Santa Fe de Bogotá
Tel: +57-1-2834988
Fax: +57-1-2867659
(Inspection, development)
In 1995, there were a few coffee-processing
enterprises and two plants producing banana purée.
Small quantities of dried fruit, noodles and cookies
were also produced. The product range has since
expanded to include hot sauces, pasta and manioc
snacks and bev er ages.
Fundación para el Desarrollo Rural Comunitario
PO Box 58-04, Cali
Tel: +57-23-835829
Fax: +57-23-835284
Costa Rica
Production
In 1995, Costa Rica had more than 1,500 certified
Processing, trade, certification
Organic prod ucts are pro duced mainly for export to
the United States and the Euro pean Union. How ever,
some uncertified vegetables are retailed by the
super market Mas por Menos, and dried fruit, tea and
medicinal herbs are sold in health food shops.
One company, Ecoexport, produced and exported
200 tons of raw coffee annu ally in the mid 1990s in
addi tion to roasted coffee and other organic prod ucts.
The company farm was certified in 1993; the
com pany also coop er ates with 126 local growers.
An organic depart ment has recently been estab lished
in the Min istry of Agri cul ture and a law on organic
pro duc tion and label ling, inspec tion and cer ti fi ca tion
has been drafted. The pro duc er’s asso cia tion, ANAO
(Asociación Nacional de Agricultura Orgánica),
founded in 1995, has a national pro gramme and has
established a national certification agency, EcoLógica. ANAO and Icafé, the national coffee
institute, are collaborating in a project for the
development of the production and processing of
organic coffee.
overall aim is to develop systems to enable the
average small farm er to pro duce enough food for his
or her family.
Useful address
INCA, Grupo de Agricultura Sostenible
Caseta Postal 1
San José de las Lajas , La Habana
Fax: +53-64-63867
(Production and development)
Dominica
Organic agri cul ture in Dominica is in its early stages.
Biofair
Dominican Republic
During the period 1995 to 1997 the Costa Rican
Chamber of Commerce organized, with the support
of GTZ, a yearly international fair for organic
products, BIOFAIR, an initiative that is expected to
be revived.
Production, trade and certification
Useful addresses
ANAO
(Asociación Nacional de Agricultura Orgánica)
Apdo 132-2020 Centro Postal, CR-San José
Tel/Fax: +506-2240911
APPTA
(Asociación de Pequeños Productores de
Talamanca)
Bribri, Talamanca, CR-Limón
Tel: +506-7584445
Fax: +506-7584972
Cuba
Conversion to organic farming began in the 1980s
and food production took off in the 1990s. One
condition favouring this development was the fall
from 1990 onwards in imports of arti fi cial fer til izers
and pes ti cides by as much as 70% -80% from their
peak levels. Con ver sion has not been lim ited to the
rural areas, and a large number of fami lies in urban
centres have been converting their gardens into
mini- farms since 1991. It is believed that a large part
of the country’s output of sugar and rice will be
organic within a decade. Organic spirits, like rum, are
also pro duced.
The Cuban Association of Organic Agriculture
(ACAO) is run ning mixed livestock- crop trials. The
119
The Dominican Republic has engaged in organic
farming since 1982 and the area devoted to organic
production continues to rise. It is an important
producer of organic cocoa and bananas in their
various forms. In the 1995/96 season, the country’s
output of cer ti fied coffee was esti mated at 250 - 300
tons; an increase to 1,000 tons is expected in the two
to three years from 1998.
A more detailed list of prod ucts fol lows: cocoa (beans,
butter, liqueur and powder); coffee; fruit, processed
(banana paste for baby food, mango purée, shredded
coconut); fruits, fresh, other (man goes, pas sion fruit);
honey; neem (a natural pesticide) products; oil crops
(coconut); roots and tubers, fresh (manioc); spices
(ginger);sugar cane; and vege ta bles, fresh.
There are nine entities producing and/or marketing
organic prod ucts. They are Apícola Tropical (honey);
Conacado (cacao, coffee); Gran (coffee, ginger);
Hori zontes Orgánicos (bananas, cacao, coffee); Liga;
Plantaciones Tropicales (bananas); Procesadora de
Caña Orgánica Cruz Verde (cane sugar); Savid
(bananas); Cooperativa “Francisco de Rosario
Sánchez” (bananas).
Gran is an NGO that supports sustainable rural
development as well as organic and biodynamic
agri cul ture. In 1997 it cov ered 12 vil lages with about
1,000 farmers, pro viding credit, tech nical assis tance,
certification services and marketing assistance. Its
exports of coffee started in 1992 and are on the rise.
Con acado com prises 2,000 small and medium- sized
farmers organized in nine cacao and two coffee
cooperatives. The Ministry of Agriculture has
120
recently given support to certain organic projects,
including those pro ducing cacao and sugar cane.
Tel: +1-809-5213571
Fax: +1-809-5213925
(Production, trade)
The small domestic market is open mainly to fruits
and vege ta bles, and the bulk of the coun try’s organic
output is exported to Europe and North America. The
Dominican Republic is believed to be the major
supplier of fresh organic bananas to the European
Union. Some coffee is exported to Sweden.
Plantaciones Tropicales sa
Cesar Nicolas Penson 116
Santo Domingo DCM
Tel: +1-809-2212727
Fax: +1-809-6860755
(Production, trade)
Several foreign control and certification bodies are
active in the Dominican Republic. They include
BCS, Demeter Association, Ecocert, FVO (Farm
Verified Organic), KRAV and SKAL.
Savid sa
Calle Colón 125, Azua DCM
Tel: +1-809-5213568
Fax: +1-809-5212310
E-mail: savid.sa@codeTel:net.do
(Production, trade)
Potential
While a large proportion of the country’s coffee is
produced without agro-chemicals, only small
quan ti ties have been cer ti fied organic. Rep re sen ta tives
of the National Coffee Board believe that in order to
raise this volume, efforts to increase awareness of
organic farming methods, con ver sion pro ce dures and
market oppor tu ni ties should be made.
According to ADAO, a national umbrella organi za tion
for companies and other bodies interested in the
development of organic agriculture, the number of
coffee farmers wanting to learn about organic farming
methods and to receive assistance in conversion is
growing. Gran sees providing access to credit as one of
the most important tools for assisting farmers
attempting to engage in sustainable organic
agri cul ture. There seems to be a good poten tial for the
production of several herbs and spices for flavouring
and medicinal purposes; they include products from
aloe vera, citrus peel and neem.
Useful addresses
ADAO
(Asociación Dominicana de Agricultura Orgánica)
Benigno del Castillo 4, 2º Planta, Apt. No. 22263
San Carlos, Santo Domingo
Tel: +1-809-2210012
Fax: +1-809-6899013
Cooperativa “Francisco de Rosario Sánchez”
Calle 19 de Marzo 166
Azua DCM
Tel/Fax: +1-809-5214322
Horizontes Orgánicos C&A
Apartado 15, Azua DCM
Ecuador
The organic output of this country includes fresh and
processed fruit (banana powder, banana flakes and
purée), grains (amaranth, quinoa) and sugar cane.
The advisory service, Promecados, provides
pro duc tion and mar keting sup port. GTZ has assisted
in the par tici pa tion of rep re sen ta tives of the sector in
the Bio fair in San José and Bio fach in Frank furt. The
aim is to gen erate interest in Ecua dor’s organic fruits,
which are not well known in the main markets for
organic prod ucts.
A struc tured national market for organic prod ucts does
not exist. MCCH (Maquita Cushunchic, which means
‘Trading Like Brothers’) is typical of the farmers’
organi za tions which work together to build their own
distribution structures. MCCH has over 220 sales
points throughout the country. Internationally these
organizations have formed RELACC (Red
Latinoamericana de Comercialización Comunitaria).
Exports are increasing.
It appears that Ecuador has good conditions for the
pro duc tion of cacao, bananas, tra di tional grains like
quinoa and ama ranth, sugar cane and various kinds of
citrus fruits. In 1998, it was thought that these items
could be produced and certified to EU rules within
two years, and first steps were expected to be taken
towards the pro duc tion of banana purée, cacao butter
and citrus peel oil.
Useful address
Centro de Agricultura Biológica
Bolívar 13-30, entre Juan Montalvo y Estévez de Toral
Cuenca
Tel: +593-7-838293
121
El Salvador
coffee; much of their output is cer ti fied by OCIA.
In 1996, around 4,900 hectares were devoted to the
certified production of organic coffee. The German
entity Protrade pro vides assis tance in the pro mo tion
of organic agriculture and the establishment of a
certification body. The Good Food Foundation
(Netherlands) has project activities in the country;
their output includes coffee, honey, nuts (cashew,
pea nuts), oil crops (sesame seed).
Organizations like Agexpront, Altertec and Cemat
have been promoting organic agriculture for many
years. Anacafé, which over sees the Gua te malan coffee
sector, pro motes organic farming through infor ma tion
activi ties, semi nars and devel op ment proj ects.
Exports are aimed mainly at the North American
market.
Useful address
Agrodesa sa de cv
Urban. Buenos Aires
27 Av. Norte, ES-1221 San Salvador
Tel/Fax: +503-2252547
(Production, trade)
Trade
In 1997, large quan ti ties of coffee and sesame as well
as some fruit and spices were exported to Canada, the
United States and the Euro pean Union. Trade sources
estimate overall exports of certified organic coffee
during the 1996/97 season at 600 tons; this volume is
expected to rise in the near future. Some vegetables
are mar keted domes ti cally as well as inter na tion ally.
GTZ implements a trade promotion project, which
finances participation in fairs and supports the
creation of a certification body and the training of
certificationagents.
Grenada
Useful addresses
Gre nada has the begin nings of organic agri cul ture.
Guatemala
Production
In the mid 1990s, around 7,000 hec tares were planted
to organic coffee. Organic coffee is an important
national export; it is traded both raw and roasted.
Guatemala’s other organic products include cocoa
and cocoa prod ucts (cocoa butter); fruits, proc essed
(purée of frozen berries); fruits, fresh (bananas);
fruits, dried; honey; nuts (cashew); oil crops
(sesame); spices (allspice, cardamom, pepper,
vanilla); and vege ta bles, fresh.
Samples of some products – different varieties of
coffee, spices and dried fruits – were exhibited at
Bio fach 1997 and 1998 in Ger many. Prod ucts in the
process of cer ti fi ca tion were also shown at this fair;
they included flowers, chewing gum and sugar.
Guatemala has four large producers of certified
organic coffee: two coop era tives (Asocia ción Aderso
and Grupo de los Catorce) and two pri vate com pa nies
(Único and Diversica). Another producer is the
Asocia ción Cha yulense Val Vaq Quyol, cer ti fied by
Naturland. There are also a large number of
smallholders who have started to produce organic
Ag ex pront (or: Gremial)
15 Avenida 14-72, Zona 13, Guatemala Ciudad
Tel: +502-3-622002
Fax: +502-3-621950
Web site: http://www.agexpront.com
(Association of exporters of non-traditional products)
Altertec
Boulevard los Próceres 18, Calle 9-31
Guatemala City-10
Tel: +502-3683181
Fax: +502-3683181
(Development)
Asociación Chajulense Val Vaq Quyol
14005 San Gaspar Chajul-El Quiche
Guatemala Ciudad
Tel/Fax: +502-2-340085
(Production, trade)
Cemat
28, Ave.18-80, Zona 10, Apdo 1160
Guatemala Ciudad
Tel: +502-2-3631280
Fax: +502-2-3394804
(Development)
Guyana
The nas cent organic sector in this country has started
pro ducing rice, among other prod ucts.
122
Haiti
Haiti produces fresh fruit (mango) and processed
fruit (mango purée and chutney), coffee and honey.
OGBA (United States) certifies some mango purée
and chutney.
Honduras
Organic agriculture has been practiced in Honduras
since the early 1990s. Products include fresh fruits
(pine ap ples, bananas, man goes), dried fruit (bananas,
man goes, pine ap ples) and proc essed fruit (pine apple
juice and con cen trate, banana and pine apple purée),
sesame, peanuts and cashew nuts (marañón), oil
crops (coconut) and cocoa.
There is a model organic farm at a pri vate uni ver sity
(Escuela Agrícola Panamericana) in Zamorano.
FHIA (Fundación Hondureña de Investigación
Agrícola) in San Pedro Sula is the world authority on
banana research and has developed several
disease-resistant banana varieties, which bear its
name and are of particular interest to organic
growers. NGOs like CINDES (Consultaría para las
Iniciativas de Desarrollo Económico y Social) in
Cholu teca are intro ducing the organic pro duc tion of
coffee and nuts.
Useful addresses
FHIA
Apartado 2067, San Pedro Sula
Tel: +504-68-2030; +504-68-2078
Fax: +504-68-2313
E-mail: [email protected]:hn
(Banana research)
Red Nacional de Agricultura Orgánica
Vecinos Mundiales
Apartado Postal 3385, Tegucigalpa
Tel: +504-30-2003
Fax: +504-30-2004
(Development)
Jamaica
Jamaica has the beginnings of organic farming. Its
prod ucts include cane sugar and ginger.
Useful address
Jamaica Organic Growers Association
16 Windsor Avenue, Kingston 5
Tel: +1-809-978-1721
Martinique
The island has the beginnings of an organic
agricultural sector. The Boris Challe Company
pro duces and exports bananas.
Nicaragua
Hurricane Mitch heavily damaged organic
pro duc tion units in 1998. Nev er the less, it is believed
that there are good possibilities for developing the
sector further, as important initiatives towards this
have already being taken.
Trade and certification
National dis tri bu tion is in its infancy, although there
are sev eral health food shops car rying organics. The
supermarket chain La Colonia retails whatever
organic products are available and has expressed
interest in other organic goods.
By 1998, organic agriculture had been practiced in
Nica ragua for more than 10 years. It is esti mated that
in the mid 1990s it produced around 500 tons of
organic coffee annually on about 1,400 hectares of
land. Among its other out puts are cocoa, cotton, dried
legumes (beans, soy beans), fresh fruits (bananas),
honey, nuts (cashew), oil crops (sesame, referred to as
ajonjolí), spices (ginger) and spirits (rum). It also has
some proc essed organic prod ucts (vinegar).
Most of Hon du ras’ output is exported. It mar kets its
dried fruit in Europe.
The national market is undeveloped. Some health
food stores and certain outlets of the La Colonia
super market chain sell organic prod ucts.
A net work of envi ron mental and rural devel op ment
organizations, called the Red Nacional de
Agricultura Orgánica, works on standards and
cer ti fi ca tion, and col labo rates with the Nica ra guan
cer ti fier Cenipae.
Organic coffee, sesame and beans are important
export products and are sent mainly to the United
States and the Euro pean Union. Clusa (Coop era tivas
Ligue USA), which has the support of the United
States Agency for International Development
123
(USAID), is an effective organization which
coordinates the activi ties of farmers, proc es sors and
packers, and pre pares prod ucts for export.
Various other products are marketed in the United
States and the European Union. The national market
is insignificant.
Certification
Useful address
There are no government regulations on organic
agriculture. Inspection and certification are mainly
carried out by the local inspection body Cenipae
(Centro Nicaragüense para la Investigación y
Promoción de la Agricultura Ecológica). Cenipae
was founded in 1994 by members of Nicaraguan
environmental protection organizations. It now
works within the umbrella organization Bio-Latina
which also covers Bolivia, Colombia and Peru.
Useful addresses
Cenipae/Bio-Latina
Colonia del Periodista no.232, Managua
Tel: +505-2787060
Fax: +505-2787090
Fishnet
(Farmers International Self-help Network)
Apartado Postal 40, Masaya
Fax: +505-5226018
Web site: http://www.leibi.de/fishnet
(Development, information)
MAELA
(Movimiento Agroecológico en América Latina y
El Caribe)
Cas. Correos 1730
Manuel Domínguez 1040, Asunción
Tel/Fax: +596-21-201512
Peru
In 1998, about 2,000 organic farmers, mainly
smallholders, belonged to farmers’ groups and
cooperatives and worked an estimated 12,000
hectares. Production includes nuts (cashew), oil crops
(sesame), dried legumes, grains (amaranth and
quinoa), coffee, honey, herbs, cotton and woollen
fabrics. Processing is limited.
Much of Peru’s organic produce is sold in the United
States. The European Union is the second market.
There is a nascent domestic market, and organic
produce is sold in supermarkets, for instance.
Panama
The nascent organic sector in Panama produces cocoa
and herbs. The Panama Herbs Group helps to market
herbs in the European Union and the United States.
Useful address
Vacarú
Grupo de Consumidores de Productos Orgánicos
Box 2223, Zona 9A, Panama-City
Tel: +507-2633464
Fax: +507-2139151
(Development, information)
Paraguay
Production includes cotton, nuts (peanuts), dried
legumes (soy beans), oil (safflower oil), oil crops
(sesame, sunflower and safflower seeds) and sugar
cane.
Processing facilities are limited, but Otisa in
Asunción is a large sugar processor and exporter,
trading predominantly with the United States.
Peru Naturtex in Vallecita (Arequipa) and Raymisa sa
in Lima produce woollen and cotton fabrics.
Certification
The local inspec tion and certi fi ca tion body, Inka Cert,
was founded in 1994, supported by NGOs within
Peru’s Red de la Agricultura Ecológica. Guidelines
and a control programme meeting the requirements
of EU regu la tions were devel oped with the support of
a GTZ project. Inka Cert carries out its inspec tion and
certification activities throughout the country.
However, products destined for North America
continue to be inspected and certified mainly by
North American inspec tion bodies.
Inka Cert and similar ini tia tives in Bo livia, Co lumbia
and Nicaragua have formed an association called
Bio-Latina. The association supports organic
agriculture in its member countries. Information is
exchanged, inspection work is coordinated and
cer ti fi ca tion is car ried out at prices that small holders
can af ford.
124
Useful addresses
Bio-Latina
Av. Arenales 645
PO Box 11-0170, PE-Lima 1
Tel: +51-14-247773
Fax: +51-14-331073
Red de la Agricultura Ecológica
Av. Arenales 645
PO Box 11-0170, PE-Lima 1
Tel: +51-14-247773
Fax: +51-14-331073
(Development)
Puerto Rico
Some production of processed fruit (banana purée,
for example) takes place in Puerto Rico.
Useful address
APARI
(Asociación de Pequeños Agricultores de Rabonbal,
Inc.)
PO Box 1656, Cidra 00739
Tel/Fax: +1-809-7390222
Trinidad and Tobago
The Trinidad and Tobago Organic Agriculture
Movement Ltd (TTOAML) had in the beginning of
1999 about 80 members, of which the Coffee
Industry Board is the largest. Five members cultivate
avocados, ginger, hibiscus, mangoes and pineapples.
The Movement also produces herbs like basil, chives,
mint, parsley and thyme.
Its efforts are directed towards converting hill
farming, largely mono-cropping, into sustainable
organic systems. Much of the farming in the country
is organic by neglect. Four agronomists are being
trained in proper organic farming techniques.
Proc essing (of coffee and herbs) is at the pri mary level.
There are many health food stores, and super mar kets
are beginning to show interest in organic products.
Export destinations are the United States and the
United Kingdom. As the products have not been
certified to international standards, they are labelled
‘natural’ rather than ‘organic’. Negotiations for
co- certification by the Swiss IMO are taking place.
Useful address
TTOAML
(Trinidad & Tobago Organic Agriculture Movement
Ltd)
PO Box 1229, Port of Spain
Tel/Fax: +1-868-6259223
Saint Lucia, Saint Vincent and the
Grenadines
These countries have the beginnings of an organic
sector.
Suriname
Suriname has 250 hectares under organic
(uncertified) cropping. It produces fruits, vegetables
and grains (rice), which were intended to be exported
to the Netherlands, but this has not happened so far.
Useful address
Winston Wirht
Madeliefjesstraat 14, Paramaribo
Tel: +597-400785
Fax: +597-410555
Uruguay
Since 1985, Uru guay has taken ini tia tives to pro mote
the production and the domestic and international
mar keting of organic pro duce. A National Pro gramme
for Organic Production, established in 1997, is
coor di nated by the Pro gramme for the Mod erni za tion
and Development of the Horticultural Sector of the
Min istry of Agri cul ture and has the strong sup port of
Germany’s GTZ. Today, more than 150 organic
farmers work under the national programme. Their
output includes beef and dairy prod ucts; fruits, fresh
(apri cots, small fruits); grains (brown and white rice);
honey; medicinal and aromatic plants; oil-seeds
(sunflower); and vegetables, fresh. Most farmers
belong to the Uruguayan Association of Organic
Pro ducers (APODU).
There are a number of processing units producing
dairy products, meat and meat products, and
processed fruit. Biosur, a wholesaler, buys organic
produce from smallholders for onward sale to retail
outlets like supermarkets. Biosur also provides
assistance in cultivation and trade promotion.
A national market is developing, with interest among
domestic consumers increasing rapidly. As early as
1995, test sales of organic fresh fruits and vegetables
were carried out in the Disco supermarkets. The
Devoto supermarket chain is entering the organic
field.
Export potential is believed to be highest for fresh
plant products, beef, and processed meat products.
125
mangoes) and coffee.
Useful addresses
As indicated above, the Uruguayan Government
strongly supports the organic movement, has its own
legislation on production and control, and has filed
for equivalency with EC Regulation 2092/91. The
Asociación Rural del Uruguay (ARU), the Society
for Consumers of Organic Products, and Urucert are
involved in inspection and certification. Foreign
certifiers, including the Argentinean Argencert, are
also active in Uruguay.
Useful addresses
Asociación Rural del Uruguay
Avda. Uruguay 864, 11.100 Montevideo
Tel: +598-2-920484
Fax: +598-2-9020489
Web site: http://www.aru.com.uy/
Biosur
21 de Setiembre 2873/101
Montevideo
Tel: +598-2-7103957
Fax: +598-2-7112539
CENDA
(Centro de Desarrollo y Ambiente)
PO Box 17183, Caracas 1015-A
Tel: +58-2-5717648
Fax: +58-2-5717648
(Development)
FUNDAGREA
(Fundación para el Desarrollo de la Agricultura
Ecológica)
PO Box 60848, Caracas 1060
Tel: +58-2-4963569
Fax: +58-2-2838519
(Development)
IPIAT
(Instituto para la Producción de la Agricultura
Tropical)
Apartado 84, 5101A Edo. Mérida
Tel: +58-74-523779
Fax: +58-74-523779
Other countries/areas
Venezuela
Venezuela produces organic fresh fruits (such as
In December 1998, there was apparently no certified
organic agriculture in Aruba, the Netherlands
Antilles, and Saint Kitts and Nevis.
NAFTA countries
Canada, Mexico and the United States, the three
members of the North American Free Trade
Agreement (NAFTA), are substantial producers of a
wide range of organic products. Canada and the
United States have well-developed domestic organic
markets. All three are large exporters, and Canada
and the United States are substantial importers.
Canada
Production
By the end of 1997, there were 1,830 certified organic
and biodynamic farms in Canada, covering roughly
1 million hectares (more than 0.6% of all farmland).
The farms are distributed as follows: 429 in Quebec,
399 in Saskatchewan, 344 in Ontario, 288 in British
Columbia, 178 in Alberta, 119 in Manitoba, 33 in
New Brunswick, 20 in Nova Scotia, 18 on Prince
Edward Island and 2 in Yukon Territory.
The main crops are grains (buckwheat, millet, rice,
wheat,), oil crops (flax, safflower) and dried legumes
(beans, soy, various kinds of peas and lentils). Large
areas are utilized for grazing and forage. Canada
produces fresh fruits (e.g. apples), fresh vegetables
and maple syrup (in 1995 it had 1,500 hectares of
maple woods). Ginseng is also grown organically (in
British Columbia). Many dairy farmers work
organically and there are some organic poultry farms.
Beef producers are slow to convert to organic
farming.
Processing, trading
By the end of 1997, Canada had 164 certified organic
126
processors and manufacturers. To date, processing
has concentrated on primary processes such as
cleaning, grading and milling, baking, processing of
maple syrup and dairy products, and so on. However,
the volume of further-processed organic products is
rising rapidly. In 1995 the farm-gate value of organic
products was estimated at 1% of the value of all
agricultural production. About 80% of the organic
output was exported in 1995. Canada imports organic
raw materials and finished products; these imports
were valued at an estimated Can$ 75 million in 1995.
Delta, BC V4G IE8
Tel: +1-604-9400505
Web site: http://www.naturespath.com
(Cereal processing and trading)
OCIA Saskatchewan Chapter 1
Box 83 Socoro, Carlyle, SK S0G 0R0
Tel/Fax: +1-306-4532884
OCPP
(Organic Crop Producers & Processors Ontario)
RR 1 KSV 4R1, Lindsay, Ontario
Tel: +1-7053242709
Fax: +1-7053244829
There are roughly 1,000 retail outlets in the health
food and natural food sectors which carry organic
products in addition to their main items.
Supermarkets are taking up organic assortments; for
instance, all new Loblaws and Sobey’s supermarkets
carry organic products.
Mexico
Legal status and certification
Production
All domestic and imported products marketed as
organic in the province of Québec will have to be
certified from 1 March 1999 (domestic) and 1 January
2000 (imports) in accordance with the Québec
Accreditation Program. A demand for equivalence
with the EC 2092/91 Regulation is to be filed in 1999.
Mexico is Latin America’s biggest producer of
organic coffee and one of the region’s largest organic
producers and exporters overall. Organic
(biodynamic) coffee production in the country was
started by Finca Irlanda in 1950. A boom in this
particular sector occurred in the 1980s and continued
through most of the 1990s.
In the rest of Canada, products marketed as organic
have to be produced according to organic standards
but without any formal need for certification. There
are several dozen certifiers in the country, both
Canadian (see useful addresses below) and American
(OCIA, FVO, QAI and OGBA) (see section on the
United States).
The country, like many others in the region, was
severely affected by the consequences of El Niño in
1998. For instance, flooding in Chiapas totally
destroyed the crop of UDEPOM, one of the country’s
main exporters of organic coffee.
Useful addresses
COG
(Canadian Organic Growers)
PO Box 116, Collingwood, ON L9Y 3Z4
Tel: +1-705-4440923
Fax: +1-705-4440380
Web site: http://www.gks.com/cog/
MAPAQ
(Québec Organic Network)
200 chemin Ste Foy, 11e, Québec G1R 4X6
Tel: +1-418-6468371
Fax: +1-418-6443049
(Production, certification, trade)
Nature’s Path Foods, Inc.
7453 Progress Way
The national output of organic coffee from a total of
30,000 hectares is currently estimated at more than
30,000 tons annually. Mexico is also a major
producer of organic cocoa and honey. Among its
other products are agave juice (a sweetener); chicle
(the milky juice of the sapodilla tree which is a raw
material for chewing gum); cotton, loofa and wood
products; fruits, processed (fruit juices); fruits, dried
(mango); fruits, fresh (apples, avocados, bananas);
grains (amaranth); legumes, dried (beans); medicinal
herbs; nuts (peanuts); oil crops (sesame, pumpkin,
coconut); roots and tubers, fresh (potatoes); spices
(cardamom); and vegetables, fresh.
FSC (Forest Stewardship Council ac, whose head
office is in Oaxaca, certifies sustainable forestry and
its products, which are increasingly re-certified by
organic certifiers such as The Soil Association
(United Kingdom) and SKAL (the Netherlands),
Producer groups like ISMAM (Indígenas de la Sierra
Madre de Motozintla, in Tapachula, Chiapas);
Productores Orgánicos del Pacifico sc (Atoyac de
Alvarez, Guerrero); UCIRI (Unión de Comunidades
Indígenas de la Región del Istmo, in Ixtepec,
Oaxaca); UDEPOM (Unión de Ejidos Profesor Otilio
Montano in Motozintla, Chiapas); Unión de Ejidos
San Fernando (San Fernando, Chiapas); Yeni Navan
(San Francisco Tutla, Oaxaca) and others are
important producers of certified organic coffee and
other products, both of which often also qualify as
fair trade products. They have their own processing
plants and sales organization and are no longer
dependent on exploitative intermediaries.
Some large coffee fincas (farming estates) are run by
European families. They include Finca la Patria (in
Tapachula, Chiapas) and Finca Irlanda.
Access to technical assistance and reasonable forms
of credit remains difficult. Cooperatives like the
Unión de Ejidos Maravillas Tenejapa (in Comitán,
Chiapas) and CESMACH (Campesinos Ecológicos
de la Sierra Madre de Chiapas (in Angel A. Corzo,
Chiapas) and others are struggling to gain entry into
export markets.
CNOC (Coordinadora Nacional de Organizaciones
Cafetaleras) is a national network of 125 peasant
organizations, many of whose members grow
certified organic coffee. CEPCO (Coordinadora
Estatal de Produc tores de Café de Oaxaca ac) coordinates organic coffee growers and sells their output
through CAEO (Comerciali za dora Agropecuaria del
Estado de Oaxaca sa de cv).
SSS Costa de Tabasco (in Comalcalco, Tabasco) is a
large cooperative of cocoa growers. Pronatura
(Mérida, Yucatán) and Nectar de Campeche SA de
CV (Chulon, Yucatán) are among the leading traders
of honey, which comes mainly from nature reserves
in Yucatán.
A new product on the organic market is concentrated
agave juice, a natural sweetener, produced on large
estates in Jalisco, Guadalajara, and traded by IIDEA
(Industrializadora Integral del Agave sa de cv) in
Mexico City.
Not all intermediaries take advantage of the farmers.
AMSA (Agroindustrias Unidas de México sa de cv),
also known as the Esteve Group, works closely with
farmers’ groups and provides them with processing
and exporting facilities.
127
Productores Orgánicos del Cabo (in San José del
Cabo) packs and exports large quantities of fresh and
dried organic vegetables, mainly to the United States.
Huertas de Guadalupe (Chihuahua) produces organic
apples and apple juice and exports them to the United
States under the brand name Pomitas. Asociación de
Productores de la Tarahumara in Guachochi, which
produces large quantities of organic apples, is
struggling to access processing facilities and to reach
export markets.
Official support
The Ministry of Social Development (Secretaria de
Desarrollo Social, Sedesol) is particularly supportive
of the organic movement in Mexico. One of its
sections, FONAES, has the task of fighting the often
extreme poverty of the small farmers and of 80% of
Mexico’s indigenous people. It supports many
producer groups involved in organics.
Trade
Most of Mexico’s organic produce is exported. The
domestic market is growing very slowly. Only a few
natural and health foods store carry organic
products. Farmers’ markets are developing where
small
producer-owned
cooperatives
and
associations make their products available to the
local communities.
Legal basis and certification
In 1992, AMEA (Asociación Mexicana de
Agricultores Ecológicos AC), the sector’s first
umbrella organi za tion, was founded; it took steps to
have offi cial organic rules adopted by the Direc ción
Gen eral de Sanidad Vegetal (DGSV), a sec tion of the
Ministry of Agriculture (Secretaria de Agricultura,
Ganadería y Desarrollo Rural, SAGAR). Rules
(Norma Oficial Mexicana NOM-037-Fito-1995)
were established in 1995 and amended in 1997.
These are incom plete, are con sid ered insuf fi cient and
have not achieved equivalence with EC Regulation
2092/91.
Some years ago a large number of farmers
dependent on foreign certifying entities created
Ecomex AC (Campesinos e Indígenas Ecológicos
de México) to represent their interests and to
establish a national certification body. Ecomex spun
off AMIO (Asociación Mexicana de Inspectores
Orgánicos), an inspection body, and Certimex, a
certification body.
128
A certification initiative of the University of Colima
is CUCEPRO (Centro Universitario Certificador de
Productos Orgánicos).
Among the foreign certification agencies working in
Mexico are OCIA (which has a Mexican chapter) and
Oregon Tilth (United States), IMO (Switzerland,
Bolivia), BCS and Naturland (Germany).
Potential
Mexico’s organic sector has a high potential for
growth. Market demand is growing, the infrastructure
is improving and the business community at all levels
is becoming aware of the expanding market for
certified organic products.
Useful addresses
AMSA (Esteve Group)
Bosques de Alisos 45-A2
Bosques de las Lomas, Cuajimalpa
05210 Mexico-DF
Tel: +52-5-2576500
Fax: +52-5-2597785
(Processor, trader)
CEPCO/CAEO
H. Esc. Naval Militar 708, Col. Reforma
68050 Oaxaca (Oaxaca)
Tel: +52-452-34001 or +52-452-34996
Fax: +52-452-33904
(Production, trade)
Certimex
Antonio M. Ruiz 11
U. Isste. CP 56231, Chapingo, México
Tel/Fax: +52-595-42060
(Certification)
CNOC
Tabasco 262
Desp. 301 Col. Roma, CP 06700 México-DF
Tel: +52-5-5140205
Fax: +52-5-2070508
(Trader)
FONAES
Av. Parque Lira 65
San Miguel Chapultepec, 11850 Mexico DF
Tel: +52-5-2726205
Fax: +52-5-2725939
(Ministry of Social Development)
FSC
(Forest Stewardship Council)
Hidalgo 502, Centro, 68000 Oaxaca
Tel/Fax: +52-983-71145
(Sustainable forestry certification)
ISMAM
18 Calle Poniente No. 2, 30700 Tapachula, Chiapas
Tel/Fax: +52-962-52404
(Producer, trader)
UCIRI
Ap. Postal 60, 70110 Cd. Ixtepec, Oaxaca
Tel/Fax: +52-971-30426
(Production, trade)
UDEPOM
3ta Norte 410
30900 Motozintla de Mendoza, Chiapas
Tel/Fax: +52-964-10271
Web site: http://www.udepom.com
(Production, trade)
United States
Introduction
The United States market, estimated at $4.2 billion in
1997, had another year of over 20% growth in 1998.
The most phenomenal growth has taken place in the
snack and candy sector, very important in the United
States, with annual growth rates of far over 100%.
The United States is not only a major importer, both
of raw materials mainly from developing countries
and of processed products from developed countries,
but it is also an important exporter, mainly of cereals,
soy and pulses as well as of some processed products,
predominantly to Europe and Japan.
Production
Close to 5,000 cer ti fied or ganic pro ducers farmed a
total of 369,000 hec tares in the United States in 1995.
More land may be managed with organic farming
methods but is not certified. Federal regulations
re quiring the cer ti fi ca tion of foods sold as or ganic are
not yet in place, and most States do not oblige or ganic
farmers or food manu fac turers to be cer ti fied in order
to market foods as such. Furthermore, processors
may be pur chasing in gre di ents claimed to have been
pro duced in ac cor dance with the Cali fornia Or ganic
Foods Act of 1990 but not cer ti fied. Nev er the less, in
the grain-producing States with the largest areas
under organic production, most organic farms are
cer ti fied or ganic.
The acreage certified organic in 1995 was down on
the figure for 1992, a result of the withdrawal of
organically managed range-land from certification.
Because the U.S. Department of Agriculture
disallows the organic labelling of meat products,
organic beef producers have no incentives for
maintaining vast range-lands under costly
certification programmes. The number of hectares
used as pasture or range-land declined by 36% to
about 112,000 hec tares between 1994 and 1995. Beef
cattle, dairy cattle, chicken and turkey for meat, layer
hens, sheep, pigs and ducks are among the certified
live stock.
Certified organic crop-land, on the other hand,
continues to expand at a double-digit rate. It rose to
about 258,000 hectares in 1995. Output includes
grains, pulses, cotton and other products. About a
quarter of the land produces livestock feed, the need
for which is rising rapidly with the heavy demand for
organic dairy products in the United States.
The labelling of dairy products and fresh eggs is the
purview of the Food and Drug Administration rather
than the Department of Agriculture; these products
can be labelled organic and have strong markets.
Nevertheless, beef cattle and meat poultry, as well as
swine, lamb, goats, and other meat animals continue
to be certified organic, in some cases for export to
foreign markets.
The area under certified organic fruit and vegetable
production amounted to around 43,000 hectares in
1995, making up about 12% of all certified land. The
certified area planted to fruits, vegetables, nuts, aloe
vera and mushrooms account for around 24% of all
land under food crops. In 1994, more than 1% of the
land under vegetables was certified organic. The
States of California and Texas have the largest areas
under organic vegetable production.
In 1996, the acreage under cer ti fied organic vege table
production and the certifying authorities were as
follows: 7,300 hectares, Texas Department of
Agriculture; 5,313 hectares, California Certified
Organic Farmers (CCOF); 500 hectares, Florida
Certified Organic Growers and Consumers; 350
hec tares each in Idaho and Wis consin, cer ti fied by the
States’ main cer ti fying bodies. The cer ti fied areas in
all these States expanded between 1993 and 1996.
Subsequent fig ures are not avail able.
The United States has a sig nifi cant output of organic
grains (barley, buckwheat, corn, millet, wheat), and
produces several organic rice varieties. An
assortment of dried legumes (all kinds of beans,
129
lentils, soybeans) are also produced organically;
soybeans have a particularly lucra tive market in the
United States and abroad. Some 102,000 hectares
planted to grains were certified organic in 1995, as
were about 25,000 hectares under legumes for
drying. Almost 20,000 hectares of soybeans were
certified organic in 1995. Oleaginous crops (flax,
sun flower) are also impor tant.
The largest farmers’ organization is the Organic Crop
Improvement Association (OCIA), with roughly
40,000 farmers. It has chapters in many Latin
American and Asian countries.
The United States has proc essing and manu fac turing
facili ties for all types of organic items. Its proc essed
food products include baby food, baked goods,
cereals, convenience foods (snacks, frozen meals,
side dishes), cooking and salad oils, flours, herbs,
liquorice, meat and dairy products, nuts (almonds,
pea nuts, wal nuts), proc essed fruits (apples, avo cados,
citrus fruit, pears, prunes, raisins), wines and
processed vegetables (canned beans, processed
toma toes, soy sauce, sprouts).
Well-known processors and manufacturers are
Arrow head Mills (cereal prod ucts), now belonging to
the Hain Food Group in Boulder, Colorado;
Cascadian Farm Inc. in Sedro-Woolley, Washington
(fruit and vegetable-based products, including
deep-frozen products and ready meals); Coleman
Natural and Organic Meat in Denver, Colorado
(meat); Earth’s Best in Pittsburg, Pennsylvania (baby
food), belonging to the Heinz Group; Florida Bottling
Inc. in Lakewood, Florida (juices); Florida Crystals,
Palm Beach, Florida (sugar); Horizon Organic Dairy
in Boulder, Colorado (dairy products and juices);
Knudsen in Chico, California, part of the Smuckers
Group (juices); M & M Mars in McLean, Viriginia
(confectionary); Made in Nature, part of the
Vacu-Dry Company in Santa Rosa, California (fruits,
dried fruits, juices); Montana Flour & Grains in Fort
Benton, Montana (cereals, specializing in the wheat
grain Kamut); Muir Glen in Petalumna, California
(tomato products); National Raisin Company in
Fowler, California (dried fruits); Pavich Family
Farms in Terra Bella, California (fruits, including
dried fruits, and nuts); San-J(irushi) International Inc.
in Richmond, Virginia (soy sauces); Organic Valley
in La Farge, Wisconsin (dairy); Spectrum Naturals
Inc. in Petaluma, California (oils) and Wholesome
Foods in Tigard, Oregon (sugar). Celestial
130
Seasonings in Boulder, Colorado is a renowned
processor, importer and exporter of tea and herbal
teas. Lily of the Desert in Irving, Texas (aloe vera) is
an example of an organic producer and processor also
active in the supplement and personal care field.
Trade
The United States is an important exporter of cereals
and legumes; its main markets are the European
Union and Japan. It is also a significant importer of
tropical and processed products.
It is the second largest organic market in the world
after the European Union. Continuing its pattern of
double-digit growth rates for six years running, the
domestic market was valued at an estimated $4.2
billion in 1997. However, this was only a little over
1% of all of the country’s food sales in that year. Sales
of natural products, including organics, through
mainstream outlets rose by 8% between 1996 and
1997. Retailers of natural products and health foods,
of which there are close to 13,000, had an average
sales increase of 9%.
About 62% of retail sales take place at natural
product stores, 31% at super- and hypermarkets of
which 50% now carry organics, and 7% through
clubs, food box systems and food service outlets.
A wide array of organic products can be found in
conventional supermarkets. These are fighting average
profit margins of 10% or less, and are facing
increasing competition from mass-market discounters
as well as natural food supermarkets. They are
therefore seeking to add to their customer base, create
new sales and enhance profits.
Natural food supermarkets are a special feature of the
United States market. The largest supermarket chain
dealing in organics is run by Whole Foods Market,
Inc., based in Austin, Texas. In 1998, it had 85
supermarkets selling natural food and non-food
products in about 20 States, where it is known under
various names including Fresh Fields, Wellspring
Grocery, Bread & Circus, Bread of Life, Merchant of
Vinoland and Mrs. Gooch’s. From $92.5 million in
1991, its turnover rose to $401.7 million in 1994; in
the third trimester of 1998, its turnover was no less
than $325 million, 25% up on the corresponding
1997 period.
Another important chain with over 50 stores in
western United States is Wild Oats, which is based in
Boulder, Colorado. Alfalfa’s had about 10 stores in
1996, including two in Canada.
Prod ucts of organic cotton and other fibres, per sonal
care products, vitamins and herbal remedies are
impor tant to the United States organic industry. Levi
Strauss, Nike and Gap buy organic cotton and mix it
with con ven tional cotton. The niche market for 100%
organic cotton is growing despite high prices.
Other than a small amount of organic coffee
pro duced in Hawaii, most organic coffee sold in the
United States is imported. However, most roasting
and bagging of certified organic coffee beans take
place within the country.
There are numerous organic traders, brokers,
wholesalers, processors and manufacturers, many of
them members of OTA (Organic Trade Association,
the former OFPANA) through which they can be
contacted. Two of the oldest and best-known
wholesalers (and importers) are Tree of Life in St
Augustine, Florida and Eden Foods Inc. in Clinton,
Michigan. Another well-known wholesaler is
Rapunzel (Kinderhook, New York) a subsidiary of the
German company Rapunzel. One of the oldest brokers
is Mercantile Food Company (Philmont, New York),
which has set up organic projects in developing
countries, including the Dominican Republic.
Recent studies have shown that 12% of American
shoppers are naturalists inclined to buy organic
products.
Food laws and regulations, control and
certification
The Organic Foods Production Act (OFPA) was
adopted as part of 1990 Farm Bill in order to estab lish
a National Organic Pro gram (NOP). OFPA has three
pur poses: to estab lish national stan dards gov erning the
marketing of certain agricultural products as
organically produced; to assure consumers that
organi cally pro duced foods meet a con sis tent stan dard;
and to facilitate inter-State commerce in fresh and
proc essed food that is organi cally pro duced.
On 16 December 1997, a proposed regulation to
establish the National Organic Program was
published in the Federal Register for public comment
until 16 March 1998. It included detailed
requirements and guidelines for the production and
handling of organic agricultural products, both crops
and livestock. However, it was withdrawn after more
than 275,000 comments on various controversial
issues were received by USDA, which is now
working on a revision. It is hoped that a new draft
regulation can be published before the end of 1999.
In the meantime there are no clear rules or regulations
on organic products. About 30 States have some laws
(for instance, labelling laws governing the use of the
term ‘organic’); about 20 States have no legislation
whatsoever on organics. There also appears to be
great differences in what the laws cover in each State.
About 13 States operate organic certification
programmes. Other States have standards, but no
certification programmes. As a result, the United
States market for organic products accepts both
certified and uncertified products. There are more
than 30 private certification bodies in the country.
Further information on the USDA National
Organic Program can be obtained at
http://www.ams.usda.gov/nop.
Information
AgriSystems International (e-mail: [email protected])
publishes a newsletter on organic trends. Natural
Business Communication ([email protected]) issues
a natural business newsletter. New Hope
Communications ([email protected]), the organizer
of the annual Expo West (Anaheim) and East
(Baltimore), publishes the Organic Times, a version of
its Natural Food Merchandiser focusing on organic
products.
Useful addresses
CCOF
(California Certified Organic Farmers)
115 Mission Street, Santa Cruz, CA 95060
Tel: +1-408-4232263
Fax: +1-408-4234528
(Control and certification in California)
FVO
(Farm Verified Organic)
RR #1, Box 40-A, Medina, ND 58467
Tel: +1-701-486-3586
Fax: +1-701-486-3580
E-mail: faremvo@dakTel:com
IOIA
(Independent Organic Inspectors Association)
131
Rt. 3 Box 162-C, Winona, MN 55987
Tel/Fax: +1-507-4548310
(International organization of organic inspectors)
OCIA
(Organic Crop Improvement Association)
1001 Y. Street Suite B, Lincoln, NE 68508-1172
Tel: +1-402-4772323
Fax: +1-402-4774325
Web site: http://www.ocia.org
OFRF
(Organic Farming Research Foundation)
P.O. Box 440
Santa Cruz, CA 95061
Tel: +1-831-4266606
Fax: +1-831-4266670
Web site: http://www.ofrf.org
OGBA
(Organic Growers and Buyers Association)
7362 University Ave, NE Suite 208, Fridley, MN
55432
Tel: +1-612-5721967
Fax: +1-612-5722527
OTA
(Organic Trade Association)
50 Miles Street
POB 1078, Greenfield, MA 01302
Tel: +1-413-7747511
Fax: +1-413-7746432
Web site: http://www.ota.com
(Association of organic traders and manufacturers)
OTCO
(Oregon Tilth Certified Organic)
860 Hawthorne Ave NE, Suite 200
Salem, Oregon 97303
Tel: +1-503-3780690
Fax: +1-503-3780809
Web site: http://www.tilth.org
QAI
(Quality Assurance International)
12526 High Bluff Drive, Suite 300, San Diego, CA
Tel: +1-619-7923531,
Fax: +1-619-7928665
132
Rodale Institute
222 Main Street, Emmaus, PA 18049
Tel: +1-610-6831400
Fax: +1-610-6838548
(Production)
USDA - Foreign Agricultural Service
Horticultural & Tropical Products Division
Organics Staff
1400 Independence Ave., SW, AG Box 1049
Washington, D.C. 20250-1049
Tel: +1-202-7201176
Fax: +1-202-7203799
Web site: http://www.fas.usda.gov
USDA - National Organic Program
14th & Independence Ave., SW 2510S
PO Box 96456
Washington, D.C. 20090-6456
Tel: +1-202-7208405/3252
Fax: +1-202-2057808
Web site: http://www.ams.usda.gov
Chapter 5
WORLD SUPPLY BY PRODUCT GROUP
This chapter gives an overview of the world supply of
organic products by major product group. The lists
given of products and supplying countries are far
from complete, but they do give an indication of the
world supply situation. The countries are not
necessarily cited in the order of their importance as
suppliers of the products under review.
Animal products
Meat, dairy products, eggs
Honey
The European Union and the United States are
important producers of organic meat and dairy
products. Organic meat is likewise produced in
Argentina, Uruguay and New Zealand (lamb).
Mexico is an important producer of organic honey.
Among the other developing country producers are
Argentina, Bolivia, Brazil, China, Colombia, Costa
Rica, the Dominican Republic, Egypt, El Salvador,
Guatemala, Haiti, Madagascar, Turkey, Uganda,
the United Republic of Tanzania, Uruguay and
Zambia. In Europe, the Balkan States, Hungary and
Poland are producers, as is New Zealand in Oceania.
The European Union and the United States are
major producers of milk and a wide range of dairy
products. Among the leading European producers
are Austria, Belgium, Denmark, France, Germany,
Sweden, Switzerland, the Netherlands and the
United Kingdom. Other producers and their
products include: Argentina, milk, cheese and eggs;
Egypt, cheese; and Turkey, milk.
Fish
Some organic fish farming takes place, including
salmon farming in Ireland and Norway. Organic fish
and shellfish projects exist in the United
States, Brazil, the Netherlands and the United
Kingdom.
Vegetable products
Vegetables, roots and tubers
Both the European Union and the United States are
major producers of vegetables, roots and tubers,
including potatoes, carrots, onions and tomatoes.
Israel is also an important supplier. Some developing
countries (e.g. Argentina and Egypt) offer a variety of
items in this product group. Several other countries
produce certain quantities of vegetables for domestic
consumption.
Among the other producers are Brazil, Chile, Costa
Rica, Ghana, India, Mexico, Poland, Tunisia, Turkey,
Uganda and Uruguay.
134
Legumes (pulses)
The United States is a major producer of dried
beans. Other producers include Argentina, Brazil,
Egypt, Honduras, India, Mexico, Nicaragua and
Peru. Turkey produces some chickpeas and lentils,
and Egypt grows peas. The output of the European
Union includes peas, lentils, brown and white beans,
and chickpeas. (For soya beans, see the section on
oil-seeds below.)
Spices and herbs
Egypt is an important supplier of a variety of herbs
and spices. Substantial production also takes place
in India, Malawi and the United Republic of
Tanzania. Many other developing countries offer
herbs and spices, including Argentina (which grows
a wide range of herbs), Brazil, Chile, China,
Colombia, Costa Rica, the Dominican Republic,
Guatemala, Indonesia, Jamaica, Mexico, Morocco,
Madagascar, Mauritius, Morocco, Nicaragua, Papua
New Guinea, the Philippines, Sri Lanka, Togo,
Tunisia, Turkey, Uganda and Zimbabwe. Some
herbs and spices are produced in the European
Union, especially herbs like sage and parsley. It also
produces organic lavander.
Vanilla is produced in the Comoros, Costa Rica,
Guatemala, Indonesia, Madagascar, Mexico, Papua
New Guinea, Tonga and Uganda, among other
developing countries.
Fruits and nuts
Fruits, fresh
The European Union, the United States, Israel and
Australia are some of the major producers of various
kinds of organic fruits. Among the other producers
are Chile and Argentina, countries around the
Mediterranean (for instance Egypt), and many other
countries particularly in Latin America and the
Caribbean, and Africa. The Dominican Republic is
an important supplier of bananas. This fruit is
produced in many other countries in the Latin
American and Carribean region, as are mangoes.
New Zealand has a significant crop of kiwi fruit, as
have Chile, France and Italy. Berries are produced
for instance in Argentina and Hungary.
Brasil, Burkina Faso, Burundi, Cameroon, Canada,
Chile, China, Colombia, Costa Rica, the Dominican
Republic, Ecuador, Egypt, Ghana, Guatemala,
CHAPTER 5 – WORLD SUPPLY BY PRODUCT GROUP
Haiti, Honduras, India, Madagascar, Mexico,
Morocco, Nicaragua, the Philippines, Poland,
Senegal, South Africa, Sri Lanka, Sudan, Togo,
Tunisia, Turkey, Uganda, the United Republic of
Tanzania, Uruguay, Venezuela and Zimbabwe
produce fresh fruits.
Fruits, dried
Turkey is an important source of a wide variety of
dried fruits. A large volume is also produced in the
United States (raisins in California, for instance),
and in the Mediterranean (dates in Egypt, Algeria
and Israel). Among the other suppliers are Latin
America and the Caribbean (Argentina, Colombia,
Costa Rica, Guatemala, Honduras and the
Dominican Republic), Africa (Togo, Tunisia,
Morocco, Uganda), Asia (Sri Lanka and India) and
Eastern Europe (Poland and Hungary).
Raisins, dates, apricots, apples, figs, bananas and
other tropical fruit are typical dried fruit products.
Nuts
Turkey is a major producer of nuts, including hazel
nuts. The United States (producing almonds; for
example) and the European Union also offer organic
nuts (Italy and Spain: hazelnuts and almonds;
France: walnuts). Cashew nuts are produced in
Latin America (Brazil, El Salvador, Guatemala,
Honduras, Nicaragua, Peru), Africa (Madagascar,
Mozambique, United Republic of Tanzania) and
Asia (India and Sri Lanka). Peanuts are grown in
Argentina, Ghana, India, Israel, Mexico, Paraguay
and the United Republic of Tanzania, and Brazil
nuts in Brazil and Colombia. China (walnuts), the
Republic of Moldova (walnuts) and Tunisia also
offer nuts.
Cocoa, coffee, tea and maté
Coffee is one of the most important organic products
exported by developing countries. It is produced
mainly in Latin America, where the largest
producing country is Mexico. Among the other
producers are Bolivia, Brazil, Colombia, Costa
Rica, the Dominican Republic, Ethiopia,
Guatemala, Haiti, Honduras, India, Indonesia,
Madagascar, Malawi, Nicaragua, Papua New
Guinea, Peru, the Philippines, Sri Lanka, Togo,
Trinidad and Tobago, Uganda, the United States
(Hawaii) and Venezuela.
India is the biggest producer of organic tea, followed
by Sri Lanka. Tea is also produced in countries like
the United Republic of Tanzania (which offers
several varieties), Argentina, Brazil, China (green
tea), Costa Rica, Egypt, Japan, Nepal (green tea) and
Papua New Guinea.
Bolivia is a major producer of cocoa. Among the
other producers are Belize, Brazil, Costa Rica, the
Dominican Republic, Gabon, Ghana, Guatemala,
Honduras, Côte d’Ivoire, Madagascar, Mexico,
Nicaragua, Panama, Papua New Guinea and Togo.
Maté is produced in Argentina and Brazil, for instance.
Cereals
For human consumption
Cereals are an important organic staple food
product. They include wheat, durum wheat, spelt,
rice, rye, barley, oat, maize, millet, buckwheat,
quinoa and amaranth.
The European Union and the United States are large
producers of wheat, as are Canada and Australia.
Among the other producers are Argentina, Brazil,
China, the Czech Republic, Egypt, Hungary,
Poland, the Russian Federation, Slovakia and
Turkey.
Rice is mainly produced in Asia, for instance in
China, India, Indonesia, Myanmar, Pakistan, the
Philippines, Sri Lanka and Thailand. It is also grown
in Canada and the United States; France, Italy and
Spain; and Costa Rica, Guyana, Suriname and
Uruguay. Supplies are increasing in a number of
countries. The three European countries mentioned
are by far the largest suppliers of organic rice to the
European market.
Old varieties of cereals like amaranth are gaining in
importance. Amaranth and quinoa are produced in
Latin American countries like Bolivia, Brazil,
Mexico and Peru. Kamut, a very old wheat variety,
is mainly produced in the United States.
Millet and buckwheat are grown in the United
States, Canada, the Russian Federation and
Argentina.
135
Seed grain
Some seed grain is produced in the European Union
(for instance in Germany and the Netherlands),
Switzerland and the United States. This sector is
becoming crucial in efforts to create a food chain
that is totally free of genetically modified
organisms.
Oil-seeds and oleaginous fruits
Some of the most important oil crops are sunflower,
safflower, pumpkin, sesame, flax, coconut, olive
and soya bean.
Many developing countries produce oil-seeds, as do
Europe and North America. Examples of producers
worldwide are listed below:
q
Coconut: Colombia, Costa Rica, Dominican
Republic, Honduras, India, Madagascar, Sri Lanka;
q
Linseed: Russian Federation;
q
Olives: Mediterranean countries, Argentina;
q
Pumpkin seeds: China, Hungary, Mexico.
q
Safflower seeds: Canada, Argentina, Paraguay;
q
Sesame seeds: Bolivia, Brazil, Burkina Faso,
China, El Salvador, Gambia, Guatemala, India,
Malawi, Mexico, Nicaragua, Paraguay, Peru, Sri
Lanka, Sudan, Turkey and Uganda.
q
Soya bean: United States (an important
producer), Argentina, Austria and France.
q
Sunflower seeds: Hungary, United States,
Argentina, China, Croatia, France, Paraguay,
Uganda, Uruguay.
Soya bean is an important item as it goes into the
production of food items that replace meat and dairy
products, for instance soy milk, tofu and cheese. As
has been mentioned, the United States is a large
producer of soya beans. Production also takes place
in Argentina, Bolivia, Brazil, China, Croatia,
Nicaragua, Paraguay, Uganda, Zimbabwe and the
European Union. The search for GMO-free soy and
soy products (such as lecithin) for use in the
production of organic and conventional products is
growing strongly.
136
Prepared foodstuffs
Vegetable oils and fats
Fruits
A large volume of oil is produced in countries
importing oil-seeds. However, some developing
countries also produce oil. Examples are Argentina,
which has a considerable output of olive oil and
sunflower oil; Benin (palm oil and coconut oil);
Bolivia; Brazil (palm oil, and palm kernel oil and
fat); China; Colombia (a large output of palm oil);
Madagascar; and the United Republic of Tanzania.
Some countries/areas offer a wide range of
processed fruit products, including Argentina, the
European Union, Sri Lanka, the United States and
Turkey. Others offer a smaller range of prod ucts. A
level of proc essing takes place in places like India
(mango concentrate), Brazil (banana purée) and
Puerto Rico (banana purée).
Sugars and sugar confectionery
Cane sugar is produced in many developing
countries/areas, including Argentina, Brazil,
Colombia, Costa Rica, Cuba, the Dominican
Republic, Gua de loupe, India, Mada gascar, Mau ri tius,
Mexico, Paraguay, Myanmar, the Philippines,
Réunion, South Africa and Sri Lanka. Production of
organic beet sugar (in Europe) is in its infancy.
Other sweeteners
Mexico produces agave juice as a sweetener,
Belgium offers cereal-based sweeteners, and Italy
makes a citrus-based product.
The developing countries/areas producing juices,
purées or pulps and concentrates include Bolivia,
Brazil, China, Costa Rica, the Dominican Republic,
Honduras, Hungary, India, Israel, Madagascar,
Mexico, Papua New Guinea and Puerto Rico.
Alcoholic beverages
Organic wine is produced in France, Germany,
Greece, Italy, Portugal, Romania and Spain, as well
as in Argentina, Chile, the Russian Federation and the
United States. France, Germany and Italy also make
organic champagne or champagne-type wines.
Organic beer is produced in the European Union,
mainly in Belgium, Denmark, France, Germany, the
Netherlands and Switzerland.
Among the other sweeteners are maple syrup
(mainly from Canada) and date syrup (largely from
the Middle East). Concentrated apple and pear
juices, basi cally from the Euro pean Union and the
United States, are also used as sweet eners. Stevia
rebaudiana, a plant from the jun gles of Brazil and
Para guay, is the source of a con cen trated juice with
potent sweet ening prop er ties.
There is some output of rum in Cuba, Costa Rica
and Nicaragua. Organic grappa (a brandy distilled
from the skins, pips, and stalks of the grapes after
they have been pressed for wine-making) is
produced in Italy, organic cognac in France and
organic whisky in Scotland.
Preparations of vegetables, nuts and
other parts of plants
The supply of organic food additives is
underdeveloped. One of these additives is annatto, a
natural food colourant produced from the pulp
surrounding the seed of the tropical American tree
Bixa orellana. It is produced in Malawi, other East
African countries and in tropical America. Guar
gum (obtained from a legume with the same
common name) and carob gum (from the
leguminous carob or locust bean tree) and other
gums are produced in the Mediterranean basin, East
Africa and Asia. Among the numerous other
products in this category are alginates (obtained
from marine brown algae like kelp) and carrageenin
(from red algae).
Vegetables
Both the Euro pean Union and the United States are
major producers of proc essed vege ta bles, of which
toma toes are a common example. Among the other
producers are Australia, Costa Rica, Hungary,
Turkey and the United Republic of Tanzania.
Dehy drated vege ta bles are pro duced by Argen tina,
Germany, Hungary and the Netherlands. Belgium,
Denmark, Germany and Switzerland produce
frozen vege ta bles.
Food additives
Other processed food products
The European Union, North America (United States,
Canada) Japan, Australia and New Zealand, and
Argentina are the main producers of this category of
products.
For more detailed information on producing
countries and product groups, the reader should refer
to the country chapters. Denmark, Germany, the
137
Netherlands and Switzerland, and increasingly also
France, offer an almost complete range of processed
foods, as does the United States. Their output
includes cereal products, meat products, preserves,
dried and frozen food, ready meals and other
convenience foods. The United Kingdom offers, for
instance, jams, marmalades and cereal products; Italy
pasta, jams and marmalades; Belgium pasta and other
cereal products including cereal-based sweeteners.
Germany is the largest supplier of organic baby food.
Miscellaneous products
Feedstuff
Individual farms produce fodder, and several
countries have set aside areas for animal forage.
However, countries with considerable livestock
farming operations (as in Demark, France and the
Netherlands) import proteins. These include soya
beans and fodder-quality grains from the United
States and other countries. Argentina produces soya
beans for fodder.
Cotton
Organic cotton is an important agricultural item for
many developing countries. The United States is the
main producer, but it is also produced in India, Egypt,
Turkey, Argentina, Colombia, Paraguay, Pakistan,
East and West Africa, Tunisia, Nicaragua and Peru.
Natural pesticides and repellents
The natural pesticide pyrethrum is obtained from the
powdered flower-heads of Chrysanthemum (or
Tanacetum) cinerariifolium or C. coccineum; it is
produced in East Africa and elsewhere. Neem, from
the East Indian tree, Azadirachta indica (Melia
Azadirachta), is produced in India, Africa and
Mexico. Rotenone (from Derris elliptica), quassia
(from the South American tree Quassia amara) and
ryania (from the tropical South American shrub
Ryania speciosa) are produced in various parts of the
tropics. Products from such species as Albizia
gummifera, Cassia fallacina, Cassia didymobotra,
Euphorbia tirucalli and Tephrosia vojellia, produced
and used for example in Malawi and other East
African countries, and many other products have not
yet found their way into the market place.
Other non-food products
Organic products such as cut flowers and pot plants,
hemp, jute, leather, sisal, wood and wood products,
wool, and ingredients for cosmetics and cleaning
products are likely to enjoy a growing market in the
future.
Part III
MAJOR MARKETS
Chapter 6
DENMARK
Introduction
Though a small country, both in population and in
geographical size, Denmark has become one of the
pioneers in promoting organic agriculture, and in the
production and marketing of organic food and
beverages. Since the first organic legislation was
introduced in Denmark in 1987, it has been the
Government’s policy actively to promote organic
farming. The rapid development of the sector in
recent years is to a great extent a result of strong
cooperation among three parties, i.e. government
authorities, organic farmers and the retail trade, in
particular FDB (Coop Denmark), which have all
been working towards a common goal.
In 1993, FDB made a policy decision to lower the
retail prices of organic products drastically; this
stimulated sales enormously. In 1995, the
Government issued an Action Plan for the
Advancement of Organic Food Production in
Denmark, most of the recommendations of which
have been implemented. In January 1999, the
Ministry of Food, Agriculture and Fisheries
published Action Plan II to support organic
development during the period 1999-2003. It
provides policy guidelines and recommendations on
organic farming (e.g. conversion), product and
quality development, marketing and distribution,
export marketing, training, research, etc.
It is also significant that an association of suppliers
and processors of organic food and beverages
(Øgruppen -Dansk Økologileverandørforening) was
established in 1998. One of its major objectives is to
promote sales of organic products, and it is expected
to play a major role in the Danish organic trade.
Supply and demand
Production
Organic farming accounted for 2.3% of the total
Danish farmland (corresponding to about 64,300
hectares) in 1997. By 1998, these figures had risen to
3.6% and 99,000 hectares. The number of organically
run farms increased from 677 in 1994 to 2,228 in
1998. In 1999, the number of farms is expected to rise
to 3,300 in addition to about 800 farms in conversion.
Though, generally speaking, most Danish farmers
have been reluctant to go into organic farming, a
significant switch has taken place during the last few
years. This is partly a result of market pressure and
partly due to government policy. The Government
started to grant subsidies to organic farmers and
various organic projects in 1988. Organic farming
has also been subsequently subsidized under EU
environmental programmes.
The Government continues to promote organic
farming. The 1995 Action Plan for the Advancement
of Organic Food Production – put forward by the
Ministry of Food, Agriculture and Fisheries – set a
target of 200,000 hectares, corresponding to 7% of all
farmland, for the year 2000. The Action Plan II
objective is 300,000 hectares by 2003, or about 10%
of all farmland.
142
The dairy industry is the most important producer of
organic food and has played a major role in
promoting overall sales of organic food in Denmark.
According to Ecoguide 5, production of organic milk
has grown rapidly from 33,300 tons to 134,700 tons
(estimates) annually during the five-year period
1992/93-1996/97. In the latter year, organic milk
accounted for an estimated 3% of total milk
production (including milk used for producing
organic cheese and other dairy products); organic
milk also accounted for 16% of all table milk sales in
Denmark. Organic cheese, on the other hand, has a
market share of only about 2%, according to trade
sources. The two major suppliers of organic milk are
MD Foods and Kløver Mælk (recently merged),
though a number of smaller dairy companies are also
involved. In 1998, the total intake of organic milk
was estimated at about 157,000 tons. It was forecast
roughly to double by the year 2000. Organic milk is
exported, e.g. to Germany. Imports of milk and milk
products are insignificant.
Beef production has been overshadowed by milk
production and consumption of beef has been slow to
take off, though it has increased considerably since
1993. Less than 0.5% of all cattle slaughtering is
organic. No exact figures exist for organic beef, but
according to some estimates, production increased
from about 100 tons in 1992 to just over 800 tons in
1997. It is sold partly as fresh meat and partly as
processed meat (sausages and other charcuterie). The
number of slaughtered cattle was about 10,000 in
1998, forecast to rise to 15,000 - 20,000 in 1999. The
main suppliers are Hanegal Økologisk Kød A/S and
Friland Food A/S. Imports of organic beef products
are relatively insignificant, though some sausages
and other meat products are made from raw materials
imported from the Netherlands.
The organic production of pigs is comparatively little
developed. Exact figures are not available, but
production of pig meat is thought to have increased
from just over 100 tons in 1992 to just under 350 tons
in 1996. Sales have been poor owing to insufficient
supply, but both production and consumption are on
the increase. Pork is sold both as fresh and as frozen
meat and is used in charcuterie. The biggest
distributors are Hanegal Økologisk Kød A/S and
Friland Food A/S. In 1998, 20,000-25,000 organic
pigs were slaughtered, a figure expected to rise to
5
CHAPTER 6 – DENMARK
50,000 pigs in 1999. Imports of pig meat amount to
less than 50 tons yearly, according to trade sources.
There is also organic production of mutton and lamb
(3,200 tons in 1998), poultry (insignificant but
growing) and eggs (over 5,000 tons in 1998). Imports
of these items are insignificant.
Production of organic cereals roughly tripled during
the five-year period 1992-1996, from about 7,000
tons to 21,000 tons. The most common species of
grain grown and used in Denmark are wheat, rye,
barley and oats. It is not known exactly how much is
used as animal feed by farmers and how much goes
for human consumption. Drabæks Mølle A/S is an
important organic flour mill. Producers of organic
animal feeds include Skjern Å Andel and DLG
Økologi. Imports of cereals are significant and
growing.
Domestic production of vegetables, roots and tubers
amounted to an estimated 23,000 tons in 1996
(potatoes: 8,000 tons, carrots: 7,000 tons, others:
8,000 tons) according to Ecoguide. Production has
increased considerably since 1992. It is mainly sold
as fresh produce, though some quantities are used for
processing. In early 1999 there were plans to set up a
processing plant for red cabbage (initially 50 tons)
and beetroot. Production of fruit and berries is small
and probably amounted to less than 100 tons in 1997.
The main crop was blackcurrants, followed by pears.
In some years, certain quantities of apples and
cherries have been produced, as have various types of
jams and marmalades.
Market size
The Danish retail market for organic food and
beverages was estimated at close to DKr 2,000
million in 1997 (exclusive of 25% VAT),
corresponding to about 2.5% of the total market. The
figures do not cover the institutional and catering
market for organic food, which is believed to be still
small. It is significant that retail sales of organic food
and beverages have increased sharply since 1993 and
that the high growth rates are likely to continue in the
next few years. Preliminary trade estimates for 1998
indicate total sales of organic food and beverages of
close to DKr 3,200 million (exclusive of VAT), or
3.5% - 4% of total food sales.
Økoguide 1997/1998 - 1999 (Ecoguide), Michael Borgen, ed. Denmark’s ØkoWeb page is accessible at http://www.ecoweb.dk. (See also
http://www.ecoguide.dk.)
Since official production and foreign trade statistics
on organic food and beverages are either incomplete
or non-existent, an attempt to provide estimates of
market size and imports (on the basis of fragments of
143
statistics and information from trade sources) for the
main product groups is given whenever possible in
the section that follows.
Imports of most consumer-packed organic food and
beverages are currently insignificant. This is mainly
because only products that are processed or packaged
in Denmark are allowed to use the government Ø
logo (see below). As a consequence, imports of
organic foodstuff are largely in the form of
unprocessed or semi-processed raw material, though
there are some exceptions. The product groups
discussed below are likely to be the most interesting
for exporters in developing countries.
Regardless of origin, most imported fresh fruit is
obtained through traders in the Netherlands. The
Is raeli trading com pany Agr exco has a sales of fice in
Rot terdam, which sup plies the Benelux coun tries and
Scandinavia. Almost all fresh organic produce,
including imports (repacked in Denmark), is
mar keted under the Ø logo.
Dried fruits and nuts, seeds and kernels
Fresh fruits and vegetables constitute one of the most
important organic product groups. Though most
demand, in particular for vegetables, is currently met
by domestic producers, there appears to be good
opportunities for imports. However, it must be noted
that Danish consumers are less confident about the
organic origin of imported products.
This is an important product group, and demand is
met almost entirely by imports. The range of products
include temperate-zone, subtropical and tropical
dried fruits, as well as various types of nuts, kernels
and seeds. The following main items offered by
importers are some of the products available:
In 1998, exports of vegetables (mainly carrots)
amounted to 6,500 tons.
q
An estimated 5,200 tons of vegetables, roots and
tubers were imported in 1998, the main items being
carrots, potatoes, onions, cucumbers, cabbage and
tomatoes (including cherry tomatoes from Israel).
Herbs and salads were also imported. The
Netherlands is the main supplier of most of these
prod ucts, fol lowed by France, Italy and Spain. Fresh
tomatoes and cucum bers are in high demand during
the summer, whereas cabbage, beetroot, leeks, etc.
are sold mainly during the winter.
Only a small volume of fruit is cur rently imported. In
1998, imports amounted to an esti mated 3,000 tons,
including 900 tons for processing by Danish
companies. The main imports are avocados (from
Israel, South Africa), bananas (the Dominican
Republic, Colombia, Costa Rica, Honduras and
Uganda), apples (Israel and Germany), lemons
(Israel), grapefruit (Israel), clementines (Spain),
oranges (Spain), pears (Italy), kiwi fruit (France),
papaya (Israel) and litchis (South Africa). There is
very little demand for tropical fruit, though there are
some sales of papaya (Israel).
Fruits: raisins, figs, dates, mangoes, bananas,
peaches, apricots, plums, apples (e.g. rings and
flakes), candied peel, diced orange, pineapple.
q
Nuts: hazel-nuts, peanuts, almonds, walnuts,
almonds, cashews, coconut chips, des si cated coconut.
q
Seeds and kernels: sunflower, pine kernels,
pumpkin, sesame, linseed, white and blue poppy seed.
Other varieties are also seen in shops, and consumers
appear to be interested in most dried items, if
available. Most retail packs are sold under the Ø logo.
One of the main items in this product group appears
to be tomato products (peeled tomatoes, tomato
paste/purée, tomato ketchup, pasta sauce), which are
currently supplied by Urtekram A/S, for example.
However, there is no doubt a demand for several
other products, e.g. the most common canned fruits
and vegetables, including pineapple.
144
Fruit juices also offer interesting opportunities.
Cur rently, four com pa nies sell organic fruit juices in
Den mark. Nutana A/S, for example, offers two 100%
fruit juices (apple and orange) in one-litre T-packs
carrying the Ø logo. There is certainly a market for
other juices as well, but for sales to increase
sig nifi cantly, prices will probably have to fall. Retail
prices may be up to twice those of con ven tional fruit
juices in some cases, and consumers generally find
these too high.
Import requirements are for bulk-packed juice (e.g. in
concentrated form), which is then packed or bottled
in Denmark. There is likewise a demand for other
forms of semi-processed fruit, e.g. block-frozen or
individually quick frozen (IQF) fruits and berries, for
the manufacture of marmalade and jam (e.g.
strawberry, raspberry, blueberry, blackcurrant,
orange, apricot). There is also a market for various
spreads made from vegetables and figs.
In 1998, an estimated 700 tons of processed fruit
were imported, whereas imports of processed
vegetables were insignificant.
Several retail packs of frozen vegetables are sold in
the country, e.g. peas, carrots and corn, processed
from fresh Danish produce or from imported fresh or
frozen vegetables (processed or repacked and
relabelled in Denmark). In general, consumers have
been less interested in frozen organic vegetables,
though demand is on the rise.
and other cereals are also imported. Though no
statistics are available, organic rice is an important
product, obtained mainly from Italy but also from
There is a considerable retail market for different
types of flour and bakery mixes used for home
baking. The market for bread and other bakery
products is large, and is principally supplied by the
major supermarkets, though the institutional market
is growing. During 1998, most of the FDB-owned
Kvickly bakeries (numbering around 75) went
organic and stopped selling conventional bread.
Pasta (mainly of Italian origin) is imported in bulk for
repacking in Denmark to obtain the Ø logo, but some
quantities are imported in retail packs and sold under
a label certified in Italy. Tholstrup Pastella A/S is a
major Danish producer of fresh pasta from imported
durum wheat.
All major retail organizations offer a selection of
organic coffee and tea, mostly packed under a
manufacturer’s brand name and carrying the Ø logo.
Some packs are also marked with the Max Havelaar
logo for fair trade. Suppliers of organic coffee include
Mexico, Guatemala, Costa Rica, Nicaragua and Peru.
The organic teas and infusions found in the Danish
market include tea (Darjeeling, Earl Grey, Kashmir
and Japanese), lemon grass, mango and orange.
Organic cocoa powder and chocolate are also sold.
Grains, flour and bakery products
Herbs and spices
Flour, cereals and bakery products are among the
most popular food products sold in the Danish
market. Though most of the demand is met by
domestic production, there is a significant import
business, which supplies Danish food manufacturers
and packers.
According to Ecoguide, imports of cereals for human
consumption rose from about 400 tons in 1992 to
about 7,300 tons in 1996 (wheat: 4,367 tons, oats:
1,746 tons, rye: 1,167 tons, barley: 15 tons). The
major suppliers are Germany, the United Kingdom
and France. Barley is used for brewing organic beer
(e.g. by A/S Thisted Bryghus). The other cereals are
mainly used in the preparation of breakfast cereals,
like oatmeal, muesli (which has a strongly growing
market) and corn flakes, and for milling flour for
bakeries and home baking. Millet, quinoa, amaranth
Dried culinary herbs constitute an important product
group. Urtekram A/S, to cite an example, offers close
to 100 different herbs and similar items, as well as
about 50 herbal teas and various tea mixes. Several of
these products are imported, mainly in bulk for
repacking in Denmark. Important items include
vanilla, cinnamon, cardamon, clove, ginger, caraway,
fennel, garlic and oregano.
Sweeteners
These products include the following: honey,
currently supplied by Mexico and New Zealand; beet
sugar; cane sugar (white, golden and brown), mainly
obtained from Mauritius through a Netherlands
company; agave syrup; maple syrup; beet syrup and
glucose.
145
While Denmark manufactures a large volume of
conventional sugar (from beetroot), it does not as yet
make organic sugar. However, Danisco Sugar is
planning to start production sometime in 1999.
Dried legumes/pulses
Imported products include dried beans such as aduki
(or azuki), kidney beans, brown beans, white beans,
chickpeas, and red and green lentils.
Oil-seeds and oils, starch, soy
A large variety of seeds is imported, including
sesame, sunflower and flax to mention a few. Soya
beans and soy products are important as they form the
basis for a large number of different food items from
soy drinks to tofu and vegetal burgers. Various forms
of starch, e.g. from wheat and maize, are also
imported.
Several cooking oils are on the market, e.g.
sunflower, sesame, soya bean, grape, rape, thistle and
olive. Cooking oils are among the few products
imported in retail packs, since no bottling of this
product group takes place in Denmark. Sales of
organic oils, in particular olive oil, are increasing
strongly.
Other food and beverage products
A large number of other organic products are
imported into Denmark, either because they are not
produced locally or because domestic production is
unable to meet demand. Virtually all food and
beverage items consumed by the average household
– whether fresh, dried, canned, frozen or otherwise
prepared and even convenience foods – can easily be
bought in organic form on the Danish retail market.
This includes all sorts of beverages, including milk,
juice, coffee, tea, soft drinks, beer and wine. In 1998,
an estimated 150,000 litres of wine were imported.
Most of the above-mentioned products are usually
processed or packed in Denmark and can
consequently be sold under the Ø logo. However, in
many cases the raw material is imported, e.g.
coffee beans, tea leaves, fruit juice concentrate and
malt.
Organic baby food, an important product, is imported
in retail packs, mainly from Germany. Wine, mostly
from France, Italy and Germany, is usually imported
bottled. Other suppliers of organic wine include
Argentina and California. Urtekram imports an
organic whisky from Scotland.
Animal feed
Imports of animal feed have been allowed only since
1990. On the basis of information from trade sources,
Ecoguide estimates that imports of cereals used as
animal feed have increased from 1,900 tons in 1992
to 6,400 tons in 1996. Imports of other forms of
animal feed, e.g. soya-bean products, rose from about
100 tons in 1992 to about 4,100 tons in 1996.
Market segments
From the point of view of a developing country
exporter, the food processing industry is the most
impor tant market seg ment, as most imports con sist of
fresh pro duce or raw mate rial which is repacked or
further processed by Danish companies. Though
reli able sta tis tics are unavail able, the retail trade has
by far the largest share in total sales to the ultimate
consumer. However, the institutional and catering
trade is growing in impor tance.
It is interesting to note that in Denmark over 70% of
all organic products are sold by supermarkets and
discount stores; only a small percentage is handled by
health and speciality shops. Most supermarkets
exhibit organic products next to conventional items in
order to offer the consumer a real choice, though
some stores also have an organic corner or shelf.
Organic food and beverages are usually easy to find,
not least because most of them are marked with the
well-known Ø logo. Furthermore, the shelves are
clearly marked økologisk to facilitate the consumer’s
choice.
Consumer habits and product
preferences
According to a note on consumption (compiled by
146
Infood in August 1997), 1% - 2% of consumers buy
only organic foodstuff and about 8% claim they buy
mainly organic products if available. Another 22%
are frequent buyers, and about 38% buy occasionally.
Around 32% apparently never buy organic foodstuff.
The share by area of consumers who buy organic
products (with various degrees of frequency) is highest
in the Copenhagen region (about 90% of all
consumers). The proportion in the rural districts is
about two-thirds. A more recent Infood note (dated
September 1998) states that about 80% of all
consumers claim they buy organic products; the
corresponding figures for the big cities are above
average. Non-buyers cited indifference (58%) and
high prices (23%) as reasons for not buying organic
food. Over 10% of Danish households spent more than
10% of the food budget on organic products in the year
covered by the note.
The typical con sumer of organic food stuff is gen er ally
inter ested in new food prod ucts and is like wise highly
quality and health conscious. It should also be
emphasized that consumers expect organic food
products to be at least of the same quality as
conventional products, preferably better. Recent
research indicates that health reasons, followed by
environmental considerations, are the main motives
for purchasing organic food. For meat and meat
prod ucts animal ethics also play an impor tant role.
Price considerations are significant for most
consumers, in particular for the higher priced items. As
a rule of thumb, a price premium of 20% - 30% over
conventional products seems to be the maximum
acceptable in most cases. In terms of specific food
items, it appears that milk, followed by eggs, rye
bread, carrots and potatoes, are the products most
frequently bought by consumers. For the time being,
most sales consist of products with a lower rather than
a higher degree of processing, though the latter market
segment is growing.
The relative importance of various product groups can
also be illustrated by the following breakdown of sales
of the biggest retailer (FDB) in 1997: dairy products
and eggs accounted for 47.3% of total sales of
organic food and beverages, followed by fruits and
vegetables (mainly carrots, onion and potatoes) with
16.4%, groceries (11%), bread and bakery products
(8.4%), meat and meat products (6.7%), frozen food
(1.5%), wine (1.4%) and others (7.3%). At the time of
the survey dairy and meat products had the highest
growth rates.
Finally, it may be interesting to look at the market
share of organic food in relation to overall sales
(organic and conventional) of a particular item. Again
in the case of FDB organically grown carrots
accounted for 30.8% of total carrot sales in 1997,
followed by eggs (20.9%), butter (20.9%), milk
(15.5%), onions (10.1%), potatoes (9.4%) and bread
(7.8%). Some products had much smaller shares, e.g.
fruit (2.4%), vegetables other than carrots, onions and
potatoes (2.1%), cheese (5.1%) and frozen food
(1.5%).
As mentioned elsewhere, consumer confidence in the
organic origin of the product is of paramount
importance. In the Danish market this is strongly
illustrated by the role played by the State-controlled
Ø logo,which enjoys a high recognition value and is
considered by most buyers of organic foodstuff as an
important product guarantee.
Sales promotion and advertising
As mentioned at the beginning of this chapter,
organic food is promoted jointly by the agricultural
sector, the food industry, the retail sector and even the
Government. Though FDB, the biggest organic
retailer, has sold organic food since 1981 on a small
scale, sales really took off only in 1993. The retail
group decided to cut the prices of organic products
drastically at the same time as it broadened its
product range substantially. A nationwide marketing
campaign, including advertising in national
newspapers and television as well as the group’s own
weekly promotion leaflets, was successfully
undertaken. Consumer information campaigns and
advertising by other major retail organizations also
helped to develop the market to its present level.
Market access
Customs duties
Denmark applies the EU common external tariff. The
same tariffs apply to both conventional and organic
food and beverages. Most products from the 71
African, Caribbean and Pacific (ACP) countries
signatories to the Lomé Convention, as well as from
overseas countries and territories associated with EU,
147
are granted duty-free access or preferences. In
addition, the EU Generalized System of Preferences
covers some products, and duty-free access is granted
to LDCs for most products. Non-organic products
enjoy the same preferences.
In 1987, the first Danish legislation on organic
farming and organic food was introduced with the Act
on Organic Farming. Since 1991, however, the
production and sale of organic products have been
regulated by EU through Council Regulation (EEC)
No. 2092/91 of 24 June 1991 and its subsequent
amendments. EU regulations are dealt with in detail
in chapter 2.
Pro duc tion and sale of organic food of animal origin,
e.g. meat, milk, eggs and honey, are currently gov erned by Danish leg is la tion: Ministry of Agriculture
Regulation No.753 of 2 September 1992 on Con ditions for Mar keting of Organic Foods, as amended.
The regulation has provisions on the preparation,
importing and labelling of organic foods. Whether
the organic food of animal origin is imported from
EU or from other coun tries, it must meet the requirements of this law. This regu la tion will be sup planted
by the newly adopted EU rules on animal pro duc tion.
Only farms approved by the Danish authorities may
market and sell their products as organic. They are
controlled by the Danish Plant Directorate. Processors,
importers and packers must likewise be inspected and
approved to handle organic products, which is the
responsibilty of the Danish Veterinary and Food
Administration. There are strict rules for processing
organic food, in particular regarding the use of
additives, auxilliary substances and non-organic
ingredients.
The Ø logo is a State guar antee that the final prepa ration and packaging of the organic food in question
has been carried out by a company in Denmark
approved by the Danish authori ties. If imported raw
material is used, the necessary permits and cer tificates, etc., are checked. Imported ready-packaged
organic food and beverages, whether from EU or
from third coun tries, are not usu ally allowed to carry
the Ø logo. This explains why most organic food stuff
is imported in bulk form for proc essing, prepa ra tion
or repacking in Denmark. However, an importer
claims to have the per mis sion to use the Ø logo on a
pack of spray-dried coffee, although it has been
packed in and imported from Mexico.
Agents, importers, repackers,
processors
The import of fresh fruits and vegetables, whether
organic or not, is in the hands of a few companies.
Biodania AmbA specializes in organic produce and
operates as a wholesaler for Danish products, but is
also a large importer. Other large importers are H.
Lembcke A/S (50% owned by Fyffes plc of Ireland)
and Th. Olesen A/S, which both import organic and
non-organic produce.
The import of other organic food and beverages is
likewise dominated by a few companies, including
the following:
offers more than 2,500 organic items, most of which
are food and bev erage prod ucts. But the company is
also a specialist in natural shampoos and other
cosmetic products with organic ingredients. The
main product groups include: dried fruits and nuts,
herbs and spices, grains and breakfast cereals,
cookies and crackers, cooking oils (e.g. olive oil) and
vinegars, tea, pasta, rice, beans, lentils, sugar and
other sweeteners and wine. The company works
direct with a number of producers in developing
coun tries and packs under the Ø logo. It is involved
with the Organic Group of Scandinavia as regards
dis tri bu tion, and is a founding member of the Good
Food Foundation. Urtekram is associated with
McGrail’s Naturmagasin, a food and non-food
organic shop in Copen hagen.
q
Urtekram A/S (partly owned by Gaia Trust
AmbA) is the largest importer and packer of organic
food and non- food prod ucts in Den mark and has been
in the busi ness for more than 25 years. The com pany
q
Unikost A/S (owned by JAN Import A/S) is an
importer and packer of both conventional and organic
food. It packs under the Ø logo and its own label
148
Green Valley. The company currently offers about 30
organic food items, including dried fruits and nuts,
pasta, rice, seeds, sugar, grains and flour.
carrots, green beans, peas, spinach, mixed
vegetables) and a wide range of products like muesli,
rice, pasta, other beans, seeds, kernels, flour and
fruits.
q
Bio Trading A/S is an importer and trader in
organic food raw materials for the bakery and food
industry in Denmark and other Nordic countries. It
operates either direct or through wholesalers. Among
its important product groups are sugar, malt, starch,
eggs and egg powder, seeds, dried fruits and nuts,
cocoa and chocolate, fats and oils, and spices. The
company also trades in other organic food products,
e.g. processed fruit (jam and jelly).
q
Svansø Food A/S. Produces various organic
marmalades and jams. It uses domestic as well as
imported raw material. It has just acquired Scan Agra
A/S in Odense, which is a trader and importer of
frozen fruit and vegetables. Svansø also imports pasta
and olive oil.
q
Among the other importers are the following:
Schulstad Brød A/S. Produces a range of
organic bread and bakery products, including the
traditional Danish rye bread.
q
q
U-landsimporten. Importer/whole saler of foodstuff, including organic prod ucts, e.g. coffee, tea and
cocoa; a non- profit organi za tion working on the fair
trade prin ciple.
De Danske Brødfabrikker A/S. Owned by FDB
(see below). Produces a range of bread and bakery
products.
q
q
Sunprojuice Denmark ApS. An importer and
producer of organic semi-processed fruits and
berries, purée, concentrates, IQF, and others; supplies
the food industry.
The names and addresses of these and the other
companies importers are given in the annex to this
chapter.
With the exception of the dairy and meat industries,
the major Danish food manufacturers are generally
little involved in organic food production. The largest
Danish food manufacturer, Danisco Foods A/S, for
example, produces very little organic food (e.g.
frozen peas). However, there are a number of smaller
companies, whose organic products are well known
by consumers, including the following:
q
Drabæks Mølle A/S. Recently bought by Havne
Møllerne A/S, owned by the Swedish concern
Cerealia AB. Processes cereals and sells a range of
flour and breakfast cereals under its brand
Kornkammeret.
Mølle Skovly. Produces organic chocolate and
also sells imported natural sweets.
q
Natur Frisk Brewery. Bottles a range of organic
fruit juices and fruit juice drinks.
Retail organizations
q
FDB (Coop Den mark) is the largest retail group
in Denmark with about 33% of the overall food
market. It comprises the supermarket chains
Brugsen, Lokal Brugsen, Dagli’Brugsen, SuperBrugsen and Kvickly (with a total of about 925 retail
out lets) and around 12 OBS! hyper mar kets. All the
chains carry out high-profile marketing of organic
products.
FDB also owns IRMA (see below) and the discount
chain Fakta (which handles a small volume of
organic products and has more than 200 outlets).
Most organic products are marketed under the Ø
logo, though some items are sold under other
(non-Danish) organic logos. The FDB group markets
products carrying various manufacturer’s or packer’s
brands, but it is also building up a range of products
under its own Natura label. In all, about 800 organic
items are sold through FDB stores.
q
Nutana A/S. Owned by Kavli A/S of Norway.
Produces vegetarian products and has a policy of not
using any additives, preservatives, artificial colouring
or flavouring. Its organic assortment currently
includes juices, patés, baked beans, chilli beans,
frozen ready-meals, frozen vegetables (e.g. sliced
Generally speaking, FDB’s imports of foodstuffs are
handled by NAF-Intergroup, which coordinates
imports for members (cooperatives) in Denmark,
Sweden, Norway, Finland, Italy and the United
Kingdom.
149
FDB owns De Danske Brødfabrikker (manufacturer
of bread and bakery products) and Dansk
Kaffekompagni (packer of coffee and tea) as well as
various non-food retailers and other companies. De
Danske Brødfabrikker obtains its organic raw
materials from Danish millers, e.g. Drabæks Mølle;
Danske Kaffekompagni imports raw materials
through NAF.
Dansk Supermarket has no food manufacturing
operations of its own, and obtains all its requirements
from Danish and foreign manufacturers. Though it
imports some food products direct, it buys organic
products only from Danish companies which
manufacture or pack under the Ø logo. Likewise, the
group does not use its own label on organic products,
but sells these under manufacturer’s brands.
q
q
IRMA, owned by FDB, is an upmarket
super market chain with about 55 retail outlets in the
Copenhagen area. Its organic assort ment consists of
about 400 items. It is the Danish retail organization
with the highest percentage of organic food and
beverages. For example, it has decided to sell only
organic milk and is phasing out conven tional milk. It
sells a wide range of prod ucts carrying its own label
(e.g. IRMA coffee and IRMA tea) and
manufacturer’s or packer’s brands. In general it
obtains its imports through NAF-Intergroup. In
January 1999, organic food and bever ages accounted
for 12.5% of total sales, the most impor tant prod ucts
being rye bread (making up 70% of all rye bread
sold), fresh pasta (67% of all pasta sold), milk (62%),
flour (44%), vege ta bles (24%) and fresh meat (13%).
DAGROFA A/S is a major wholesaler
supplying a number of independent supermarkets and
other retailers, including the supermarket chain
Favør. It handles a range of organic food products.
q
Matas A/S, a health and body care shop rather
than a food store, retails a range of organic dried fruits
and nuts, beans, seeds, ker nels, rice and pastas. It has
also introduced a ‘subscription service’under which
fresh fruits and vegetables are delivered to
households on a weekly basis. It has roughly 290
stores.
q
ISO is a supermarket chain in Copenhagen with
a fairly broad range of organic food products.
Catering and institutional trade
q
Dansk Supermarket A/S is the second largest
retail group in Denmark with about 22% of the total
food market. It comprises the following supermarket
chains: føtex (a supermarket chain with over 50
outlets throughout the country); Bilka (over 10
hypermarkets selling food and everyday goods);
NETTO (a chain of discount shops with about 240
outlets in Denmark in addition to stores in the United
Kingdom, Germany and Poland, which is promoting
organic food aggressively). Of those, føtex is
currently the most important as far as organic food
and beverages are concerned. It offers a broad range
of organic items, including fresh produce, dairy
products, meat products, dry goods and beverages.
Though organic food and beverages are still of
relatively low importance in this sector, the catering
and institutional trade is expanding and considerable
growth is expected in the future. A government
programme is actively promoting the use of organic
products by municipal and other public institutions.
The Government’s Action Plan II, prepared by the
Organic Food Council, likewise pays special
attention to developing sales of organic products to
the catering and institutional sector. One of the
problems cited was the lack of special distribution
channels for this sector.
Market prospects
With a population of just over 5 million people,
Denmark is a fairly small market for most food and
beverages. However, as shown earlier in this chapter,
total sales of organic food and beverages in 1997 may
be estimated at about DKr 2,000 million,
corresponding to about 2.5% of the total retail market
for foodstuff. This places Denmark in the top league
among world markets with the highest per capita
consumption of organic foodstuff. Furthermore,
consumption has been growing rapidly in recent
years, including 1997 when retail sales increased by
about 25% according to trade sources. Preliminary
figures for 1998 seem to indicate total sales of close
to DKr 3,200 million (exclusive of 25% VAT).
150
There are very strong indications that the Danish
market for organic foodstuff will continue to expand
for a considerable number of years. Firstly, consumer
interest in healthy food and environmentally friendly
products continues to grow and more and more
people are purchasing organic products. Secondly,
the major retailers are promoting organic foodstuff
quite aggressively, inter alia, through heavy
advertising and competitive pricing. FDB, for
example, has set ambitious sales targets for specific
organic products (as a percentage of total sales of a
given item) to be reached by the year 2001. For some
of these products the lack of supply seems to be the
major problem. Thirdly, Danish farmers as well as
food manufacturers are increasingly becoming aware
of the opportunities that exist in satisfying consumer
expectations. Finally, government policy continously
aims at promoting the production and consumption
of organic foodstuff. Trade sources and industry
people believe that sales may reach 10% of total food
sales by the year 2005.
Market opportunities exist for most product groups
listed in the section on market and import
requirements (see above), in particular those that are
not produced in Denmark. There also seems to be a
latent demand for a number of products that are
currently unavailable to the consumer. Continuous
sourcing of new products by importers and product
development by food processors, as well as consumer
confidence in the authenticity of the organic origin of
the product are necessary conditions for the market
potential to be fully realized.
In conclusion, interesting prospects exist for
exporters in developing countries who can supply
quality products at competitive prices. Importers and
food processors are interested in obtaining more
supplies direct from source (rather than through
intermediaries in other EU countries) depending on
the product in question and provided there is
confidence in the certification procedure applied.
Imports will probably continue to consist mainly of
unprocessed or semi-processed products for
repacking or processing in Denmark.
Annex
Denmark: selected addresses*
IMPORTERS, PACKERS, ETC.
Bio Trading A/S
Åbenråvej 9
Kiskelund
6340 Krusså
Tel: +45-70 23 15 15
Fax: +45-70 23 15 16
http://www.biotrading.dk
Biodania AmbA
Grønttorvet 6, 1.sal
2500 Valby
Tel: +45-36 30 24 78/36 30 24 29
Fax: +45-36 30 24 79
Cofradex ApS
Skelstedet 16
2950 Vedbæk
Tel: +45-42 89 17 67
Fax: +45-42 89 03 13
(Importer of rice, etc.)
F-I Mejerifrugt
Hestehaven 3
5260 Odense S
Tel: +45-66 13 13 70
Fax: +45-66 13 44 10
(Fruits and berries for the dairy
industry)
Jakobsen & Hvam A/S
Hovedvejen 22
7490 Aulum
Tel: +45-97 47 39 27
Fax: +45-94 47 39 27
(Honey)
H. Lembcke A/S
Grønttorvet 244-260
PO Box 427
2500 Valby
Tel: +45-36 15 62 22
Fax: +45-36 15 62 23
Mortensens Kaffe Vejle A/S
Ulvehavevej 58
7100 Vejle
Tel: +45-75 82 01 99
___________________________
* List not exhaustive.
Fax: +45-75 82 07 66
(Coffee)
NAF International AmbA
Fanøgade 15
2100 Copenhagen Ø
Tel: +45-39 16 90 00
Fax: +45-39 16 90 80
Natur-Drogeriet A/S
Nydamsvej 13-15
8362 Hørning
Tel: +45-86 92 33 33
Fax: +45-86 92 33 43
http://www.natur-drogeriet.dk
(Importer and wholesaler of cereals,
including rice, and flours)
Tel: +45-36 34 30 00
Fax: +45-36 34 30 01
http://www.toersleff.dk
(Importer and packer of vanilla)
U-landsimporten
Rolstrupbakken 6
7900 Nykøbing Mors
Tel: +45-97 72 57 88
Fax: +45-97 72 53 54
E-mail: u-landsimporten@vip.
cybercity.dk
(Trade)
and
Th. Olesen A/S
Frugtmarkedet 17
2500 Valby
Tel: +45-36 30 61 11
Fax: +45-36 30 79 53
Skindergade 24
1159 Copenhagen K
Tel: +45-33 91 90 90
Fax: +45-33 91 90 97
http://www.u-landsimporten.dk
(Information)
Solhjulet
Storhedevejen 32, Taul
8850 Bjerringbro
Tel: +45-86 68 64 44
Fax: +45-86 68 62 75
http://www.solhjulet.dk
(Supplies the catering sector)
Unikost A/S
Over Hadstenvej 58
8370 Hadsten
Tel: +45-86 98 01 44
Fax: +45-86 98 00 48
http://www.jan-import.dk
Sunprojuice Denmark A/S
Huginsvej 2-4
4100 Ringsted
Tel: +45-57 67 11 77
Fax: +45-57 67 11 45
http://www.ecoweb.dk/sunprojuice
Urtekram A/S
Klostermarken 20
9550 Mariager
Tel: +45-98 54 22 88
Fax: +45-98 54 23 33
http://www.urtekram.dk/
Svanholm Import
Svanholm Allé 2
4050 Skibby
Tel: +45-47 56 66 56
Fax: +45-47 56 66 77
(Importer of wine, beer, other
alchoholic drinks and foodstuff)
Tørsleff & Co. A/S
Helseholmen 7-9
2650 Hvidovre
FOOD PROCESSORS AND
MANUFACTURERS
BKI Kaffe
Axel Kiersvej 4
8270 Højbjerg
Tel: +45-86 29 22 99
Fax: +45-86 29 10 89
(Coffee importer and wholesaler)
152
A/S Crispy Food International
Blommeskoven 2
4281 Gørlev
Tel: +45-58 86 05 05
Fax: +45-58 86 00 22
(Producer of muesli, owned by MD)
Danisco Foods A/S
Fredensgade 7
5800 Nyborg
Tel: +45-65 31 11 30
Fax: +45-65 31 58 30
Dansk Kaffekompagni A/S
Roskildevej 25a
2620 Albertslund
Tel: +45-43 86 33 33
Fax: +45-43 86 40 09
De Danske Brødfabrikker A/S
Korsdalsvej 101
2610 Rødovre
Tel: +45-43 86 41 70
Fax: +45-43 86 41 69
Drabæks Mølle
Østparken 1-5
6640 Lunderskov
Tel: +45-75 58 52 66
Fax: +45-75 58 58 30
http://www.kornkammeret.dk
Friland Food A/S
Østersgades Butikstorv 7, Jebjerg
7870 Roslev
Tel: +45-97 57 47 99
Fax: +45-97 57 41 99
http://www.ecoweb.dk/friland
(Slaughterhouse and distributor of
meat and meat products)
Hanegal Økologisk Kød A/S
Resenbrovej 29, Voel
8600 Silkeborg
Tel: +45-86 85 36 72
Fax: +45-86 85 36 73
http://www.hanegal.dk
(Slaughterhouse and distributor of
meat and meat products)
Kløver Mælk AmbA
Vejlevej 10
7000 Fredericia
Tel: +45-75 92 49 88
Fax: +45-75 91 05 95
(“Harmonie”: organic milk)
Kohberg Rugbrød A/S
Industrivej 7-9
6392 Bolderslev
Tel: +45-74 64 62 30
Fax: +45-74 64 63 81
MD Foods AmbA
Skanderborgvej 277
8260 Viby J
Tel: +45-89 38 10 00
Fax: +45-86 28 16 91
http://www.mdfoods.dk
1254 Copenhagen K
Tel: +45-33 12 22 77
Fax: +45-33 12 60 77
Merrild Kaffe A/S
Lærkevej
6000 Kolding
Tel: +45-79 31 31 31
Fax: +45-79 31 31 90
(Coffee importer and wholesaler)
RETAIL ORGANIZATIONS
Mølle Skovly
Lyngvej 21, Skringstrup
8832 Skals
Tel: +45-86 69 49 66
Fax: +45-86 69 50 86
E-mail:[email protected]
http://www.ecoweb.dk/skovly
Natur Frisk Brewery
Lillehøjvej 18
8600 Silkeborg
Tel: +45-86 80 37 67
Fax: +45-86 80 24 55
NUTANA A/S
Ringstedvej 531
4632 Bjæveskov
Tel: +45-56 86 96 00
Fax: +45-56 86 96 16
Peter Larsens Kaffe A/S
Ærøvej 15-17
8800 Viborg
Tel: +45-86 62 67 33
Fax: +45-86 62 62 67
(Coffee importer and processor)
Rynkeby Foods A/S
Vestergade 30
5750 Ringe
Tel: +45-62 62 11 35
Fax: +45-62 62 48 49
(Juice producer)
Schulstad Brød A/S
Hammerholmen 21-31
2650 Hvidovre
Tel: +45-36 39 71 00
Fax: +45-36 77 01 65
Svansø Food A/S
Strandvejen 1
5800 Nyborg
Tel: +45-65 31 41 00
Fax: +45-65 30 10 41
A/S Thisted Bryghus
Bryggerivej 10
7700 Thisted
Tel: +45-97 92 23 22
Fax: +45-97 91 18 98
http://www.thisted.bryghus.dk
(Beer; imports malt and hops)
Tholstrup Pastella A/S
Lille Strandstræde 20b
Dagrofa A/S
Gammelager 11-13
2605 Brøndby
Tel: +45-43 22 82 82
Fax: +45-43 22 84 04
Dansk Supermarked A/S
Bjødstrup 18
8270 Højbjerg
Tel: +45-89 30 30 30
Fax: +45-86 27 65 63
FDB (Coop Denmark)
Roskildevej 65
2620 Albertslund
Tel: +45-43 86 43 86;
+45-43 86 48 11
Fax: +45-43 86 42 09;
+45-43 86 33 86
http.//www.fdb.dk
Irma A/S
Korsdalsvej 101
2610 Rødovre
Tel: +45-43 86 38 22
Fax: +45-43 86 38 09
ISO Supermarked
Vermlandsgade 51
2300 Copenhagen S
Tel: +45-31 54 84 11;
+45-32 69 76 00
Fax: +45-31 54 31 42;
+45-32 69 76 01
http://www.iso.dk
Matas A/S
Rørmosevej
3450 Allerød
Tel: +45-48 16 55 55
Fax: +45-48 16 55 66
http://matas.dk/VOKOLOGI.HTM
CATERING AND
INSTITUTIONAL SALES
MN Catering
Fuglebakkevej 94
2000 Fredeiksberg
Tel: +45-38 34 38 12
Fax: +45-38 34 38 22
SUPPLIERS
Animal feed
A/S Carl Rasmussen
Frigaardsvej, Gamby
5471 Søndersø
Tel: +45-64 83 11 00
Fax: +45-64 83 11 87
Carl Høfner I/S
Hesteskoen 1
2880 Bagsværd
Tel: +45-44 44 27 00
Fax: +45-44 44 64 00
DLG Økologi
Nørrevang 23, Skave
7500 Holstebro
Tel: +45-97 46 84 88
Fax: +45-97 46 85 65
Ecological seeds and plants
KFK
Grøndalsvej 1
8260 Viby J
Tel: +45-89 47 70 00
Fax: +45-86 14 10 85
http://www.kfk.dk
(Animal feed, seeds, etc.)
Skjern Å Andel a.m.b.a.
Storegade 36
6900 Skjern
Tel: +45-97 36 44 44
Fax: +45-97 36 63 40
http//:www.ecoweb.dk/skjern
Solsikken
Skellerupvej 89
Linå
8600 Silkeborg
Tel: +45-8684 1546
153
Fax: +45-8684 1746
http://www.solsikken.dk
Tel: +45-86 12 86 38
Fax: +45-86 12 86 37
http://www.ecoweb.dk/infood
(Consultancy)
GOVERNMENT OFFICES,
OTHER ORGANIZATIONS
AND ASSOCIATIONS, ETC.
Landsforeningen Økologisk
Jordbrug (LØJ)
(The Danish Association for Organic
Farming)
Økologiens Hus
Frederiksgade 72
8000 Århus C
Tel: +45-87 32 27 00
Fax: +45-87 32 27 10
http://www.ecoweb.dk/oekoland
Danish Import Promotion Office
for Products from Developing
Countries (DIPO)
Danish Chamber of Commerce
Børsen
1217 Copenhagen K
Tel: +45-33 95 05 00
Fax: +45-33 12 05 25
Danish Veterinary and Food
Administration
Mørkhøj Bygade 19
2860 Søborg
Tel: +45-33 95 60 00
Fax: +45-33 95 60 01
http://www.vfd.dk
(Administers organic production
rules on labelling and inspection)
Demeterforbundet
(The Demeter Association)
Birkum Bygade 20
5220 Odense SØ
Tel: +45-65 97 30 50
Fax: +45-65 97 30 50
Det Økologiske Fødevareråd
(The Organic Food Council)
Strukturdirektoratet,
Udviklingskontoret
Toldbodgade 29
1253 København K
Tel: +45-33 63 73 00
Fax: +45-33 63 73 33
Infood
Langballevænget 102
8320 Mårslet
Max Havelaar Fonden
c/o Folkekirkens Nødhjælp
Nørregade 13
1165 Copenhagen K
Tel: +45-33 11 13 45
Fax: +45-33 11 13 47
E-mail: maxhavelaar@dk
http://www.maxhavelaar.dk
Øgruppen - Dansk
Økologileverandørforening
Udgården 30, Lading
8471 Sabro
Tel: +45 86 12 77 66
Fax: +45 86 12 77 41
E-mail:: [email protected]
http://www.ecoweb.dk/gruppen/
(Association of suppliers and
processors of organic food and
beverages)
Økologisk Landscenter (ØLC)
(The Danish Organic Service
Centre)
Økologiens Hus
Frederiksgade 72
8000 Århus C
Tel: +45-87 32 27 00
Fax: +45-87 32 27 10
http://www.ecoweb.dk/ecoinfo
(Information centre for the
marketing of organic food)
Chapter 7
FRANCE
Introduction
Offi cial sta tis tical infor ma tion on the French market
for organic prod ucts is lim ited and com pares poorly
with that available in some EU countries. Although
the market started to develop during the 1970s, the
need to estab lish a per ma nent moni toring system has
only recently been made a pri ority. The rapid development of production and consumption which took
place in the mid 1990s motivated three key
organizations – the Association permanente des
cham bres d’agri cul ture (APCA), Asso cia tion d’agriculture biologique regroupant des transformateursindustriels et distributeurs français de produits
biologiques (BIO CONVERGENCE) and Direction
géné rale de l’ali men ta tion au Min istère de l’agri culture, de la pêche et de l’alimentation (DGAL)6 – to
coop erate in set ting up a frame work for analysis and
forecasting, which should gradu ally lead to a policy
for guiding, developing and promoting organic
agriculture in France.
Initially, the organizations agreed to undertake the
preliminary studies necessary to establish such a
framework and to organize their work through a
steering committee, which would draw together all
stakeholders at both the national (government
authorities, APCA, BIO CONVERGENCE, the
Fédération nationale de l’agriculture biologique des
régions de France or FNAB, and the Fédération
nationale des centres d’information et de
vul gari sa tion de l’agri cul ture or FBCIVAM)7 and the
regional level (regional organic agriculture
structures).
Supply and demand
Domestic production
Agriculture
Although France is a major producer and a
significant exporter of a wide range of food and
beverage products, organic farming has failed to
keep pace with devel op ments in con sump tion on the
home market and with the accelerated rate of
conversion to organic agriculture in neighbouring
Euro pean mar kets. Over the last 10 years France has
lost its lead er ship role: in 1997 only 0.3% to 0.4% of
agricultural land was being farmed organically or
was ‘in con ver sion’, com pared to over 7% in Aus tria,
Sweden and Swit zer land, and 2% in Ger many.
Conversion to organic agriculture has increased
steadily since 1993 and a government policy is in
6
The names of these organizations in English are: APCA, Permanent Association of Agricultural Chambers; BIO CONVERGENCE, association
of organic agriculture grouping French industrial processors and distributors of organic products; DGAL, Directorate General for Food at the
Ministry of Agriculture, Fisheries and Food.
7
FNAB is the National Federation of Organic Farming and is made up of all of France’s organic farmers. FBCIVAM is the National Federation of
Information and Advice Centres for Agriculture.
CHAPTER 7 – FRANCE
155
place to support and promote more rapid
development over the next five years. By 1996 the
area farmed organically had reached 137,000
hec tares, including 20,000 hec tares ‘in con ver sion’.
Processed products
Organic processing in France has to date concentrated
largely on the primary processing of domestic raw
materials, but the last few years have seen increasing
growth in imports of raw materials for processing.
Cereals dominate the processing sector, and bread and
bakery products have a large share in the total output.
Following in order of importance are dairy products,
fruits and vegetables, condiments, poultry, aromatic
and medicinal plants, soya-based products, meat,
prepared dishes and coffee.
The number of agricultural producers qualified to
carry the national AB logo for organic food (see the
sec tion on cer ti fi ca tion fur ther below) increased from
3,600 in 1985 to 3,850 in 1996 and, at a much faster
rate, to 4,500 at the end of 1997. The 1997 figure
cor re sponded to 0.5% of all French farmers, 2,300 of
which were involved in crop pro duc tion and 2,200 in
mixed crop ping and animal raising.
The fig ures below show the approxi mate break down
by product group in 1996, as revealed by a study carried out by INRA-UREQUA (Unité de recherche
spécialisée sur l’économie des qualifications agroalimentaires or the specialized research unit on the
eco nomic aspects of agrofood speci fi ca tions) in 1997.
The most dynamic regions for organic pro duc tion in
France are Midi-Pyrénées, Pays de la Loire,
Languedoc-Roussillon, Rhône-Alpes and Bretagne
(Brittany), where farmers have invested heavily in
organic farming.
The number of organic livestock farms increased
strongly between 1995 and 1996, as shown in table
7.1 below.
France: output of the organic processing
sector (including exports), 1996
Product group
Table 7.1
France: organic livestock and livestock products,
1995 and 1996
Sector
Dairy products
Farms (units)
Dairy cows (head)
Milk (’000 litres)
Beef
Farms (units)
Milk cows (head)
1995
1996
% increase
1996/1995
Fruits and vegetables
750
Condiments
187
Poultry
160
Aromatic and medicinal plants
139
Meat
82
451
25
Prepared dishes
78
13 655
45
Coffee
45
41 000
58 644
43
255
409
60
5 637
10 178
81
35
73
109
3 831
8 402
119
Pork a/
Farms (units)
77
Meat pigs (head)
6 047
Breeding sows (head)
Eggs (’000)
1 051
361
Sheep (head)
Laying hens (head)
1 301
Dairy products
9 500
Mutton
Farms (units)
Eggs
Farms (units)
FF million
Cereals
275
173
209
21
103 162
135 762
32
23 000
30 000
30
Honey b/
Farms (units)
60
Hives (units)
13 058
Source: Ministère de l’agriculture, de la pêche et de l’alimentation, Observatoire
economique national de l’agriculture biologique.
a/b/ In the absence of national regulations in 1995, no production was recorded as
organic or in process of conversion.
Source: INTA-UREQUA (Unité de recherche
spécialisée sur l’économie des qualifications
agro-alimentaires), Le Mans, October 1997.
Although cereals continue to lead the sector,
their share has fallen in recent years,
particularly relative to that of dairy
products, which has increased strongly. The
eggs and poultry sector has also grown
steadily.
The processing sector is dominated by a large
number of small, medium-sized and, often,
artisan companies, which account for about
40% of the total turnover of the organic
business. However, increased investment in
larger-scale production and the involvement
of some major food groups (e.g. Besnier,
Bourgoin, Danone/Bio Vivre) have meant
156
that the sector is now evolving into a more
industrialized and efficient manufacturing sector.
Recent estimates have put the average annual growth
rate at close to 20%. Primary processors are on the
whole more important than secondary processing
companies.
Retail sales
Although France, with its population of over 58
million people, is one of the largest markets for
organic foods in the European Union, per capita
consumption and the penetration of the sector into
mainstream food consumption is low. Organic
foodstuffs account for less than 0.5% of total
expenditure on food products.
According to information provided by the Ministry of
Agriculture and professional organizations of organic
producers, processors and distributors, the retail
market for organic products can be estimated at about
FF 4 billion in 1997. Consumption doubled between
1991 and 1997, as follows:
1991
1994
1995
1996
1997
FF 2 billion
FF 2.4 billion
FF 3 billion
FF 3.6 billion
FF 4 billion
Imports
Domestic production of organic foods has not kept
pace with consumer demand. Therefore, there has
been a sharp rise in imports, not only of produce
which cannot be grown in France, but also of organic
products where local supplies are not sufficient to
meet demand. Import-export traffic between member
countries of EU is not recorded in official trade
statistics, but the increase in imports from outside EU
can be seen from the fast-growing number of requests
to the French authorities for authorization to import
organic produce. In 1994 extra-EU imports
amounted to 1,300 tons, but by 1997 this figure had
risen to somewhere between 13,000 and 20,000 tons.
The range of products imported from third countries
has also steadily widened and reached almost 70
different items by 1997. These are mainly fresh fruits
and vegetables, dried fruits and nuts, spices, edible
oils, tea, coffee, cocoa beans and cane sugar. The
main products imported from non-EU third countries
between 1993 and 1997 are set out in table 7.2.
Intra-EU imports are sourced mainly in Germany, the
Netherlands, United Kingdom and Italy. Non-EU
imports in 1997 came mainly from: Algeria,
Belgium, Belize, Bolivia, Burkina Faso, Cameroon,
Canada, Colombia, Costa Rica, the Dominican
Republic, Ethiopia, Guatemala, Guinea, Hungary,
The cur rent annual rate of growth is esti mated at 20%
or 25% and this explo sion in
demand is expected to con Table 7.2
France: imports of organic products from non-EU countries, 1993-1997
tinue in the next few years.
Cereals (about 33%), dairy
1993
1994
1995
1996
1997
products (25%) and fresh
Bananas
Fresh and dried
Apples
Cane sugar
Apples
bananas
Cocoa beans
Arabica coffee
Courgettes
Beet sugar
fruits and vegetables (20%)
Fresh and dried
Fresh
and
dried
Beet
sugar
Dried
figs
Cane sugar
together account for over
pineapple
pineapple
Brown cane sugar Dried grapes
Carrots
three quarters of the total
Mango
Orange
Cocoa beans
Fresh and dried
Chickpeas
Quinoa
turnover. Meat and poultry
Sesame seed
bananas
Dates
Clementines
account for about 5% and
Fresh pineapple
Dried chicory
Cocoa beans
Dates
Essential oils
Dried bananas
others for the bal ance.
Green beans
Within the non- fresh organic
food segment, research carried out by one of France’s
leading supermarket chains
(Carrefour), in June 1997
indicated that the items in
greatest demand were biscuits, crisp bread, galettes,
fruit juices and jams, cereals,
flour, pastas and rice.
Fresh and dried
bananas
Fresh pineapple
Fresh mango
Millet
Orange
Quinoa
Sesame seed
Source: Trade information.
Maple syrup
Millet
Potatoes
Soya beans
Tomatoes
Dried chicory
Dried grapes
Grapefruit
Green coffee
Lemons
Lentils
Mango
Oranges
Palm oil
Pears
Peeled nuts
Quinoa
157
Madagascar, Mexico, Morocco, Paraguay, Poland,
Senegal, Slovakia, South Africa, Spain, Togo,
Tunisia, Turkey, the United States and Zimbabwe.
Supplies from Asia were insignificant.
Annex II gives more detailed information on imports
of organic food from non-EU countries in 1997.
Exports
It is difficult to assess the size of the export trade
because EU foreign trade statistics do not
differentiate between organic and conventional food
produce. INRA-UREQUA estimated France’s
exports in 1994 at about FF 600 million. Research
findings indicate that, by 1997, exports had dropped
by over 50%. The main reasons are the substantial
increase in domestic French consumption of organic
foods and the growing self-sufficiency in organic
products of Germany, France’s major export market.
Between 1994 and 1997 the professional and
regulatory framework for organic production
developed considerably and processing industries
expanded. By the end of 1997 the range of products
exported had changed significantly. Exports of raw
materials and semi-processed organic products, such
as cereals, had declined whilst exports of processed
products increased owing to the efforts of dynamic
processors, some of which have subsidiaries in other
European countries. One-third of France’s processing
enterprises were exporters in 1997.
France’s main export markets for processed organic
products are in Western Europe, mainly Germany,
Switzerland, the Netherlands, Belgium, the United
Kingdom, Spain, Italy and Scandinavia. Exports to
the United States and Japan are less significant.
Major increases in exports of fresh fruits and
vegetables and wine to Germany, the United
Kingdom, Austria and Scandinavia have been
recorded. Organic eggs and poultry are also
important export products.
Consumer patterns
q
Consumers in France are traditionally health
conscious and associate organic foods with a good
diet and a healthy lifestyle. However, research has
shown that, compared with other European
populations, the French tend to prefer to resort to
medi cines to cure health prob lems rather than to take
pre ven tive action in terms of a posi tive diet and life
style. Moreover, consumers often have difficulty in
dis tin guishing between the dif ferent types of health,
diet and natural food prod ucts on sale, which include:
q
q
Certified organic products (bio is the term used
to signify organic);
q
Products purchased direct from farmers,
whether organic or not;
q
Products labelled as farm produced, whether
organic or not;
q
Natural (naturel) products, free from additives;
q
Dietetic and slimming products;
Products with the red quality label;
AOC products (appellation d’origine contrôlée
or registered designation of origin);
q
‘Para-pharmaceutical’ food (food supplements).
For these reasons, despite clear evidence that both
retail turnover and consumer interest in organic food
have been increasing strongly since the early 1990s, it
is difficult to estimate the real level of penetration
among food pur chasers. According to a survey car ried
out in Feb ruary 1998 by Louis Harris for Eco cert and
Vivez Nature, the trade exhibition for organic
agriculture, 10% of those questioned claimed to buy
organic prod ucts regu larly and 38% occa sion ally.
A survey by Pole Qualité du Maine, in collaboration
with INRA-CRISALIDE, in 1995 distinguished four
main types of consumers of organic food, according
to a multi-criteria analysis of attitudes and behaviour.
These were:
q
‘Nostalgics’: a conservative segment of the
population, concerned primarily with welfare and
producing some of its own organic food require ments;
158
q
Ideologists:
altruistic views;
revolutionary
militants
with
q
Health-conscious consumers: new generation of
consumers of organic foodstuffs, who are primarily
concerned with their state of health;
(bovine spongiform encephalopathy, the mad cow
disease), nitrates in water, pesticide residues and high
dioxine levels in milk, and concern about genetically
modified food have made this factor more
significant).
q
Favour pre-packaged products.
q
The fashionable crowd: new consumers of
organic foodstuffs, interested in buying only what is
perceived to be the best quality, in paying great
attention to their appearance, and in showing off their
ways to other people.
q
Attach great significance to the (known) brand
or label of the supplier as the principal guarantee of
the foodstuff.
q
The first two segments of consumers have declined
considerably in significance and the major growth
has come from the third and fourth types of
consumers profiled, which correspond roughly to the
categories of regular and occasional buyers of
organic foods. The main characteristics of these two
types of customer are described below.
Regular long-term buyers
q
Are mainly intellectuals, managers and
self- employed profes sionals with higher than average
incomes.
q
Attach high importance to the official AB
organic logo and the labels of traditional organic
organizations like Nature et Progrès for a guarantee
of organic quality.
q
Are faithful to established distribution channels
for organic food (direct purchases, markets, Biocoop
cooperative shops, etc.).
q
Are concerned about the ecological or envi ronmental aspects of food produc tion, consump tion and
buying. The AB logo backs up their socio-political
world view.
q
Are prepared to accept price differentials for
certified organic foods of 50% or more over the
conventional alternatives.
New occasional buyers
Are more occasional, less faithful purchasers.
q
Are generally not prepared to pay more than
20% above the price of conventional products.
Occasional buyers are expected to fuel the main
growth in the organic market in the coming years.
Social and environmental issues are exerting an
everincreasing influ ence on con sumers and there is
growing scope for industrial companies to develop
ranges of processed and pre-packaged products
similar to dietetic products. Moreover, as
super mar kets and hyper mar kets gradu ally expand the
variety of organic foods stocked, purchasing by this
latter group of cus tomers will increase, because they
tend to do a major part of their gro cery shop ping in
these out lets, rather than in spe cialist shops, organic
mar kets, etc.
The most important expectations of the French in their
food purchasing, both individually and collectively,
and the required responses in terms of food production
are summarized in the box on page 159.
According to INRA (Institut national de la recherche
agronomique), the French agricultural research
institute, half of the consumers choose organic food
primarily for health reasons, one third are
ecologically motivated and about a fifth purchase for
the better or fresher taste of organic food. Despite the
strong potential demand and a good certification
system, there are obstacles to the development of the
French market; these are as follows:
q
Are mainly from the middle and lower social or
income groups.
q
Are most concerned about the product itself and
its measurable characteristics (taste, freshness,
quality, etc.).
q
High prices. Organic products are expensive and
can be priced at between 30% and several hundred
per cent higher than the conventional alternatives,
depending on the product and the sales outlet.
q
q
Want safe food, free from chemical residues and
other pollutants. Recent food scares, like BSE
Inadequacy of communication with the
consumer. Despite much improvement in the
situation since the early 1990s, French consumers
159
still have great difficulty in understanding exactly
what constitutes an organic product. It is estimated
that about 50% of consumers can now correctly
define organic products.
number of intermediary distributors sell small
quantities of a wide range of products, again leading
to high costs and prices.
q
The product range on offer is too restricted.
q
Appearance of the products.
q
Long, inefficient chains of distribution. A large
Inconvenience. Shops selling organic foods are
often too far away. The more multiple chains become
involved in selling organic foods the better, because
of the habit of French households of doing one major
weekly shopping visit to the hypermarket.
France: consumer expectations and responses required
Consumer expectations
Response required from food producers
Good for health, fitness and status
Absence of chemical pollutants of agricultural and industrial origin (pesticides,
nitrates, artificial colours). Products richer in natural micronutrients. Balanced
overall approach to nutrition and food hygiene.
Good taste and enjoyment
Products grown with less water, maturing more slowly and with a stronger taste.
Authenticity
Search for more rustic varieties and for more suitable growing areas. Better
tasting crops which may be less productive. Genuinely natural products without
unnecessary gimmicks in production or processing (e.g. use of artificial
flavourings).
Guarantees and confidence in certification/labelling
Products defined by a national or EU regulation and certified by a competent,
approved, independently registered body. Confidence of the retailer (local shops,
Biocoop stores, markets, etc.). Involvement of professional organizations.
Collective concerns
Response required from food producers
Environment
Ecology
Protecting the earth
Cultivation without inorganic fertilizers or pesticides.
Exclusive use of natural fertilizers and in small quantities.
Preservation of the soil, water table, fauna, flora and ecosystems. Preservation of
the countryside.
Social concerns
Human factors
Employment/unemployment
Migration from the countryside
Family farming – roots.
Individual and motivated approach of farmers.
Dialogue between the various participants in the branch.
Maintenance and rebuilding of rural structures, management of soil and space.
Source: Syndicat européen des transformateurs de produits de l’agriculture biologique (SETRAB), Les Produits de l’Agriculture
Biologique, 1996 - 1997.
Product and market requirements
In France, professionals (farmers, processors and
distributors) and consumers generally distinguish
between the following major groups of organic food
and beverage products:
q
Edible oils;
q
Wine, beer, vinegar;
q
Prepared and pre-cooked dishes.
q
A detailed list of most of the organic foodstuffs
consumed in France can be found in Annex III. It has
been compiled from catalogues issued by producers,
processors and distributors, from data supplied by
various types of shops and from the Annuaire vert
1998.
Products derived from cereals and oil-seeds;
q
Fruits and vegetables (fresh, preserved,
dehydrated, dry, juices, deep-frozen, concentrated);
q
Coffee, tea, cocoa;
q
Dairy products;
q
Meats, meat-based products, poultry, eggs,
pork-based products;
q
Spices, aromatic and medicinal plants;
q
Sugar, honey, sweeteners;
Since 1990, French consumption of organic food
products has grown dramatically, and the trade expects
an average annual rate of growth in consumption of
about 20% in the coming years. This demand will be
met by the steady increase in French production and by
160
imports both from EU member States and from third
countries. Domestic production will not be able to
meet the demand for a large number of products,
either because they cannot be produced locally in
sufficient quantities or because they cannot be
produced in France at all, e.g. tropical products.
In recent years, the most rapidly developing sectors
have been fresh fruits and vegetables, cereals and
cereal-based products and beverages. These three
product groups together currently represent about half
of the total organic market and are expected to grow
from 10% to 20% annually. Dairy products, meat,
meat products, prepared and pre-cooked dishes are
among the products for which demand will probably
grow the fastest over the next five years, at an expected
annual rate of over 20%. Pork is an interesting
example: while there is currently an oversupply of
conventional pork, the organic pork industry is unable
to meet demand and imports are growing. Growth
prospects of about 20% per year are also forecast for a
third group of products, comprising dried fruits,
legumes, edible oils, coffee, tea, cocoa, sugar, honey,
aromatic and medicinal plants, and spices.
The main product groups showing a strong import
potential, which can be supplied by developing
countries in Africa, Asia and Latin America, either as
raw materials or as semi-processed or fully processed
products ready for consumption, include:
q
Cereal products such as soya beans, quinoa,
sesame seed, amaranth;
q
Rice and derived products;
q
Dried legumes: flageolet, chickpeas, broken
lentils, green lentils, yellow lentils, soya beans, aduki
beans;
q
Fresh tropical and Mediterranean-type fruits and
vegetables;
q
Concentrates, juices and nectars of tropical and
Mediterranean-type fruits;
q
Dried tropical and Mediterranean-type fruits and
nuts;
q
Deep-frozen and concentrated fruit purées and
pastes for the processing industry;
q
Coffee, tea, cocoa in all forms, raw or
semi-processed.
Developing countries, which already export a large
number of organic products that have been certified
for sale in other European markets, can investigate
the possibilities for exporting these products to
France.
The development of sales of deep-frozen and
convenience organic foods has been slower in France
than in some neighbouring countries but is now
catching up rapidly.
With regard to organic fish, there are no EU or French
regulations on either ocean or aquaculture fish
products. However, since 1997 the French authorities
have been working on the certification of aquaculture
products according to an agreed set of specifications.
A project for the aquaculture sector in France is under
review.
Most food supplements such as vitamins, minerals
and trace elements, proteins and some dietetic
products fall outside the categories of organically
certifiable products. It should be noted, however, that
they constitute, together with products that can be
certified organic (such as herbal teas or infusions,
medicinal plants, essential oils and others), a
fast-growing market segment. Trade sources estimate
the yearly growth rate at over 20%.
Organic animal feed has developed well in France
and is marketed by half a dozen producing and
distributing companies. Organic pet-food products,
which are sometimes imported (mainly from the
Netherlands) have recently taken off, but are not yet
covered by EU regulations.
Market access
Regulations on organic foods
France was the first European country to adopt a
national regulation on organic farming (in 1980).
Since Council Regu la tion (EEC) No. 2092/91 came
into force in 1991, France has continued to adopt
regulations on animal products. At the end of the
1997, these com prised speci fi ca tions issued and ratified by the Ministry of Agriculture, Fisheries and
Food and by the Min istry of Economy, Finance and
161
Plan ning in accor dance with the 1980 law and its enabling decree of 1996. The speci fi ca tions are mod elled
on IFOAM’s Basic Stan dards of Organic Agri cul ture
and Food Proc essing. EU regu la tions on animal products came into effect in June 1999.
Regulations on organic production methods for cow
milk and other dairy products, veal and beef, dairy
cows, rabbits, eggs, sheep, poultry, etc. were ratified
by an inter-ministerial decision in 1992. Since then,
regulations have also been adopted on pork, honey,
goat milk, sheep milk and other dairy products.
Additional specifications are planned for all forms of
processed meats.
Organic ingredients of animal origin that are in
conformity with existing French regulations may be
used in the manufacture of essentially plant-derived
organic products. These rules will now be supplanted
by the EU regulation on animal products, though
France may maintain a more stringent national
legislation.
Certification
France oper ates a system of pri vate inspec tion bodies
approved by law. The system meets the require ments
of the Asso cia tion française de nor mali sa tion (French
Stan dards Asso cia tion) and EU Regu la tion 2092/91.
COFRAC (Comité français d’accréditation) is the
official body for the accreditation of certification
organizations, estab lished in accor dance with European stan dard EN 45011 and its inter na tional equivalent ISO/IEC Guide 65. Five organizations have so
far been accredited by COFRAC as certification
bodies: Ecocert SARL, Qualité-France, AFAQAscert- International, QNPC and ULASE.
Ecocert is by far the most important body, certifying
around 80% of all French organic products. Ecocert
also has offices in Belgium and Germany and carries
out certification in many countries outside EU, for
instance in Africa.
There is one legally designated symbol, AB, which
signifies that a food product conforms with French
national and EU regulations on organic agricultural
production. It is an official certification mark, and is
the exclusive property of the Ministry of Agriculture.
The control of the use of the logo is entrusted to the
approved certification bodies. The logo is protected
in Europe and in countries such as Japan and the
United States.
Importers wishing to use the AB logo on imported
organic food products are subject to a mandatory
control procedure. Under the procedure, importers
must provide the following:
q
A complete description of premises and import
activities with, as far as possible, details of the points
of entry of the imported products into the European
Union;
q
Evidence of a commitment to carry out import
operations in accordance with what the European
Union authorizes and through a competent authority
in an EU member country;
q
Banking information on credit transactions;
q
Information on the certifying body for each
consignment imported into the Union.
The importer must obtain one certificate for each
product to be imported and apply for import
permission (unless the exporting country is on the EU
Regulation 2092/91 Article 11 list of approved
countries). The permit is valid for one year.
In the past there were over 20 associations operating
their own organic labelling schemes. Some of these
traditional labels (such as Nature et Progrès and, to a
lesser extent, ABF), although no longer officially
recognized, are often still found next to the official
AB logo on French organic products and continue to
appeal to many French consumers.
Retail structure
The level of penetration of organic foods into
different types of retail outlets is a key factor in the
development of consumption. Between 1985 and
1994 retail distribution developed much more slowly
than in neighbouring countries to the north and east of
France, as sales by specialist organic retailers
stagnated and the multiple retail chains (grandes
surfaces) made only very limited efforts to enter the
162
organic market. A high proportion of sales still took
place direct from producer to consumer through
weekly organic markets (marchés bio), through
consumer cooperatives buying direct from producers
and through farms selling to the public.
Since 1994 the situa tion has changed rap idly. Organic
prod ucts are now avail able in most of France’s major
supermarkets and hypermarkets and, by 1997, the
market share of these multiples had risen to nearly
40% of total sales. Specialist shops selling organic,
die tetic, naturel products and food supplements
accounted for around 30% of con sumer expen di ture
on organic prod ucts. Tra di tion ally, bread and bakery
products and, therefore, bakery outlets have had a
sig nifi cant share of organic sales in France, but their
posi tion has been eroded by the growing super market
involve ment. Bakery sales and direct sales by farms
and organic markets now have a market share of
between 25% and 30%.
The first retail chain to intro duce a coherent organic
assortment was Monoprix under its own
Monoprix-Bio brand. Carrefour also introduced its
own Carrefour-Bio brand, which is used on both dry
and fresh products other than fresh fruits and
vegetables. Organic fruits and vegetables as well as
dairy and bakery products are now being sold by
most chains, although sometimes only in a limited
number of out lets. Assort ments are avail able at Cora,
Auchan, Leclerc, Casino, Continent, Super U and
Prisunic. The fact that three quarters of French
house holds are said to do one large weekly pur chase
of groceries at a hypermarket and the growing
involve ment of these mul ti ples in organic food sales
should be a major stimulant to demand in the near
future.
There are an estimated 1,800 specialist retailers of
organic, dietetic, naturel products and food
supplements in France. After a long period of
stagnation, they started to reorganize in purchasing
groups, cooperatives and franchising systems, such
as Naturalia, Croque Nature, Bio Markus, Satoriz,
L’Eau Vive, Biocoop, Aux Rayons Verts and La Vie
Claire. Their sales started to grow again, although
their relative market share has diminished because of
increasing competition from the grandes surfaces.
There are over 25 organic markets (marchés bio) and
140 cooperative (Biocoop) outlets. Box schemes,
which have been established successfully in other EU
markets, have developed more slowly in the French
market.
Catering and institutional sales have not expanded
substantially to date.
Processors/packers and wholesalers
The distribution of organic products to retail outlets
and sometimes, in the case of direct farm sales,
straight to the consumer, is handled by the following:
q
About 4,200 producers (farmers);
q
About 40 importers (some of which are also
wholesalers) trading with non-EU countries;
q
About 500 processors/packers;
q
Five national wholesalers;
q
30 regional wholesalers distributing fresh
products and dry groceries.
The huge geographical size of France means that
wholesalers play a significant role in distribution,
from the col lec tion of pro duce to sup plying proc essors and retailers and the handling of foreign trade.
Until very recently the domi nant force in the dis tri bution of organic foods has been Dis tri borg, a national
wholesaler of organic and diet foods, which had a
turn over in 1997 of FF 1,478 mil lion. Dis tri borg sells
to spe cialist shops and dis trib utes many health food
brands and for eign deli ca tessen prod ucts to the supermarket or hyper market trade. Its major brand Bjorg is
sold suc cess fully, not only in France, but also in Belgium and Italy; its other labels include La Vie Claire,
Equili brance, Ven do mine, Thé Tuocha, Evernat and
Bonneterre. Distriborg controls the chain of health
food shops Dame Nature (8 organic supermarkets);
the franchise group of specialist shops La Vie
Claire/Dame Nature (about 150 out lets), pur chased in
1996; and the chain Aux Plaisirs de Fleurance. Dis triborg is also active abroad: in addi tion to Dis tri borg
companies in Italy and Belgium, it has subsidiaries
like the Bel gian groups Prona, Hagor and Genucchi;
the Italian firm GB TRE; and Bre whurst Health Food
Sup plies (UK), Tasty Food, and Nicholson & Evans
in the United Kingdom.
Since the mid 1990s Distriborg has met fierce compe ti tion from a new market entrant Le Goût de la Vie,
which was set up in 1995 and now supplies a full
range of fresh, dry and frozen organic foods. The
company, with its main commercial base at Sablésur-Sarthe (Loire), sells its products under three
brands: Le Goût de la Vie in super mar kets and hypermarkets, and Favrichon and Pro-Sain in specialist
shops. Le Goût de la Vie organic foods are now
163
stocked by many supermarket chains, including
Monoprix, Auchan, Leclerc, Intermarché, Champion, Prisunic, Continent, Champion, Cora, Match,
Système U and ATAC. Le Goût de la Vie has
acquired some of the foremost organic processors
and its indus trial units now include La Cepad et les
Domaines de la Nature at Bagues, which produces
preserved vegetables, fruits and jams; a processing
plant for cereals; and two bakery and bis cuit fac tories. Le Goût de la Vie has a Bel gian sub sidiary and
has considerable exports, mainly to other European
countries.
The other major national oper ating whole salers which
also handle imports include Bonneterre, Natouring
France, Lima, Celnat, Céréales Wander Nutrition,
Borsa, AEDA, Bio prim and Roussillon. There is also a
network of regional wholesalers. It should be noted
that wholesalers are facing increasingly strong
competition from the organic assortments developed
by the big retail chains them selves.
Imports
Future trends
According to trade sources the following developments
are likely to take place over the next few years:
q
Supermarkets and hypermarkets will increase
their dominant market share to about 50% of all
French retail sales of organic food and beverages.
q
At the time of the prepa ra tion of this survey, the
major retail organizations (like Carrefour, Promodès,
Auchan, Leclerc, Cora, Monoprix, Prisunic and
Super U) were planning to launch significant new
product ranges in 1998 and thereafter, subject to the
avail ability of produce and the regu larity of deliv eries,
which are expected to improve. In these outlets, part of
each product shelf will be reserved for fresh organic
products (dairy products, meat and meat products,
fruits and vegetables) and dried fruits. In the case of
dry groceries, organic products will either remain in
the diet product assortment or be integrated into the
rele vant special ized product shelf (e.g. jams, fruit and
vege table preserves, coffee, tea, biscuits, etc.).
The most usual channel of distribution for imported
organic foods is through a specialized importer
and/or a processor/packer, then through a wholesaler
to the retail outlet, which makes the final sale to the
consumer. Direct sales from foreign exporters to
central purchasing units of retail chain stores are still
rare. However, these sales are likely to be of growing
interest to the multiples as their organic volumes and
their uptake of new organic products increase. There
is a rising tendency towards sourcing supplies more
globally and developing partnerships at all levels.
q
Food manu fac turers tend to buy their imported supplies either direct from importers or from spe cial ized
(European) processors, which can meet speci fi cations and ensure con ti nuity of supply. The manu facturers do not often import direct from out side Europe,
though it is likely that this will increase, espe cially as
the more conventional food manufacturers become
involved and set up organic product lines.
q
Catering and institutional sales, as well as mail
order and box schemes, are likely to grow.
q
Specialist retailers will continue to reorganize
and consolidate in chains, cooperatives and franchise
organizations (Naturalia, Croque Nature, Bio
Markus, Satoriz, L’Eau Vive, Biocoop, Aux Rayons
Verts, La Vie Claire, etc.). However, their market
share may decline vis-à-vis supermarkets and
hypermarkets. The speciality shops are already
successfully developing the mini-market concept.
Processors/packers and wholesalers will grow in
size and capability in order to meet the increasing
requirements of the retail sector and consumers for
organic products.
The names and addresses of major importers,
processors and packers and retail organizations can
be found in Annex I.
Competition, prices and margins
Although the retail prices of many organic products
have fallen in the last few years because of
economies of scale, better management and the
increasing penetration of supermarkets in organic
food sales, price remains a major brake on the growth
of consumption. Prices are still typically far above
164
those of comparable conventional products, and
frequently higher than what many consumers are
prepared to pay.
Premiums vary according to distribution channels
and are generally highest in specialist shops. They
range from 25% to 80% and sometimes more
according to the product range and the type of
shop.
The
price
differential
in
supermarkets
and
hypermarkets tends to be lower and varies between
10% and 50%. Aver ages are between 10% and 40%
for dairy products, over 50% for fresh fruits and
vege ta bles, and between 5% and 25% for dry goods.
Increasing vol umes of turn over and the intro duc tion
of private label ranges of organic products should
gradu ally make it pos sible to reduce the dif fer en tial,
but the key question is whether consumers are
prepared to pay the premium which will usually be
necessary to cover the higher costs of raw materials
and of proc essing cer ti fied organic prod ucts.
Prospects and opportunities
Overall prospects
The prospects for the further development of the
French market for organic food products depend on
three closely linked factors: supply and consumer
demand, official policy, and growing professionalism
in the organic trade.
Supply and consumer demand. Since 1990 French
consumption of organic food products has increased
dramatically, and the trade expects an average annual
growth rate of 20% in the coming years. This demand
will be met partly by the steady increase in domestic
production and also by imports both from EU
member States and from third countries.
and spices, sales of which should increase by about
20% annually.
Offi cial policy. Between 1985 and 1995 France lost its
lead er ship role in the Euro pean organic food market. A
major objective of official national policy now is to
close the gap, particularly with Austria, Denmark,
Ger many and the Neth er lands. At the end of 1997, the
Min istry of Agri cul ture, Fish eries and Food launched
an ambitious five-year plan (1998-2002) for the
devel op ment and pro mo tion of organic farming.
France has a number of advantages which have not
been sufficiently exploited to date:
q
Domestic production will not be able to meet demand
for a large number of organic products, which cannot
be locally produced in sufficient quantities or which
are not produced at all in France, e.g. tropical products.
In recent years, the most rapidly developing sectors
have been fresh fruits and vegetables, cereal-based
products and beverages. These three product groups
together currently account for about half of the total
organic turnover and are expected to have an annual
growth rate of between 10% and 20% over the next
several years. Other products with excellent growth
prospects are:
A favourable home market based on the
consump tion criteria of health, the envi ron ment and
flavour;
q
Committed farming leaders and a network of
organic farming advisers;
q
Large areas with low population densities where
extensive farming methods are similar to those of
organic farming, and other more populated areas but
whose farmers, nonetheless, are aware of the
excesses of certain intensive methods and the
sizeable potential of the organic market;
q
q
Dairy products, meat, meat products, prepared
and pre-cooked dishes: demand for these product
categories will probably grow by over 20% annually
over the next several years;
A strong and pioneering regulatory and control
framework with rigorous national specifications, and
a control system set up in conformity with European
standard EN 45011, which ensures the independence,
impartiality and efficiency of controlling bodies, an
indispensable condition for accreditation.
q
Dried fruits, legumes, edible oils, coffee, tea,
cocoa, sugar, honey, aromatic and medicinal plants
The five-year plan comprises six key priority actions
165
which, within five years, should lead to the doubling
of public financial assistance. It is hoped that these
priorities (listed below) will give a new growth
impetus to organic food production and trade:
q
Large-scale supply and improved supply
regularity.
q
Improved logistics between producers and
processors to retail outlets.
q
The harmonization and strengthening of
regulatory and control measures within the European
framework to avoid distortion of competition;
q
Greater proximity to consumers owing to the
rapid multiplication of supermarkets and specialist
shops.
q
The enhancement of territorial advantages by
increasing financial aid for conversion to organic
agriculture and product development;
q
The strengthening of the distribution system at
regional and local level;
The modernization of processing methods,
adaptation of product quality by processors and
distribution to new groups of consumers, including
those who want products which are both modern and
organic.
q
q
q
Product
information;
promotion:
quality,
availability,
Satisfactory storage conditions.
q
q
New efforts to improve product quality and
pricing;
Mass communication on the concept of organic
products (and the AB logo) aimed at improving
consumer awareness.
q
q
The strengthening of public assistance and joint
action with the trade.
One of the key elements of this plan involves
increasing the number of organic farmers from 4,500
at the end of 1997 to 25,000 by the year 2005.
Improved packaging of, and information on,
products on the shelves, especially with regard to the
guarantee of quality; quality and taste characteristics:
health, nutrition, security, absence of residues,
flavours; respect for the environment; appearance;
freshness; and identification of place of origin.
Growing professionalism in the organic trade. Since
1995 changing attitudes to the organic business have
resulted in:
q
q
Specific market opportunities
Increased investments by the major food groups
(e.g. Besnier, Bourgoin, Danone), processors and
packers;
A simultaneous increase in sales to regular
buyers and growing numbers of occasional buyers.
Heightened industrial transformation with the
appearance of genuine manufacturer’s brand names
as well as a stronger presence of the large retailers
marketing manufacturer’s brands and/or private
labels;
Developing countries in Africa, Asia and Latin
America, which already export a large number of
products that are certified organic in EU, can increase
their exports to France. As said earlier, the main
product groups showing a strong import potential,
whether as raw materials or as semi-processed or fully
processed products ready for consumption, include:
q
q
q
Improved presentation of organic products by
supermarkets and hypermarkets with a view to
narrowing the price difference between organic
products and conventional products. This has the
effect of broadening the product range to include
items which previously were sold only by certain
specialist chain stores.
Consumption will be stimulated by the new trends
which have emerged since 1995. These include the
following:
Cereal and other products derived from soya
beans, quinoa, sesame, amaranth;
q
Rice and rice-derived products;
q
Dry legumes such as lentils, beans, flageolets,
chickpeas, broken lentils, green lentils, yellow lentils,
soya beans, aduki beans;
q
Fresh tropical and Mediterranean-type fruits and
vegetables;
166
q
Concentrates, juices and nectars of tropical and
Mediterranean-type fruits;
q
Dried tropical and Mediterranean-type fruits and
nuts;
cocoa, peanut, sesame and even olive oil.
For most of these products, penetration of the French
market will usually be through importers or through
processors/packers. Direct sales to the central
purchasing units of the chain stores are still rare.
q
Deep-frozen fruits and concentrated fruit purées
and pastes for the processing industry;
q
Coffee, tea, cocoa in all forms, raw or
semi-processed.
France is largely self-sufficient in meat and meat
products, including beef and lamb, as well as dairy
products, and is even an important exporter of poultry
products. The market potential for aromatic and
medicinal plants and essential oils is limited, except,
of course, for those growing only in tropical areas.
There are better prospects for honey, cane sugar and
some edible oils and fats, including palm oil, soy,
The development of partnerships with or without
transfer of technology between suppliers in developing
countries and importers and processors/packers is
making progress in a large number of EU countries,
including France, and should help in the further
penetration of the French market. Overall there is a
tendency to source supplies more globally. The
creation, development and strengthening of certifying
authorities for organic products in developing
countries, which meet the standards required by EU
and French regulations, will strongly increase the
opportunities for exporters in these countries to gain
access to the French market.
Annex I
France: selected addresses*
IMPORTERS
Arcadie SA
1115 route d’Uzès
30100 Alès
Tel: +33-4 66 56 99 33
Fax: +33-4 66 30 62 61
(Importer of organic spices, fresh
and dehydrated aromatic herbs,
dehydrated vegetables, herbal teas,
infusions)
Bioprim
530 Av. de Milan
ZI du Grand Saint Charles
66000 Perpignan
Tel: +33-4 68 54 79 79
Fax: +33-4 68 54 57 68
(Importer, packer and wholesaler of
fruits and vegetables)
Dynamis France
54 avenue de la Vilette
94637 Rungis Cedex
Tel: +33-1 45 60 43 44
Fax: +33-1 46 87 44 05
(Importer of organic fresh fruit and
vegetables)
Euro Breizh
8 rue des Martyrs
29270 Carhaix-Plouguer
Tel: +33-2 98 99 25 20
Fax: +33-2 98 99 25 21
(Importer, processor and wholesaler
of cereals and pulses)
Exodom
Centre Commercial le Chateau
108 rue Jean Fournier
BP 9025
69261 Lyon Cedex 09
Tel: +33-4 78 43 83 85
Fax: +33-4 78 43 87 70
http://www.atgi.fr/exodom.htm
(Importer of organic exotic fruits and
vegetables, fruit juices, dried fruits,
cocoa and coffee)
Fimex
10 rue du Perche
75003 Paris
Tel: +33-1 48 04 54 07
Fax: +33-1 42 71 83 84
(Importer of organic tea)
IMAGO
Marché St. Charles
BP 5129
66031 Perpignan
Tel: +33-4 68 68 40 40
Fax: +33-4 48 68 40 48
Jean Jacques Boutrou
67 rue Robespierre
93558 Montreuil Cedex
Tel: +33-1 42 87 70 21
Fax: +33-1 48 51 52 73
(Agent for Tradin Organic BV,
Netherlands)
JK Nature
ZI La Saussaye
124 rue du Rond d’Eau
45590 Orléans
Tel: +33-2 38 25 00 70
Fax: +33-2 38 25 00 77
Les Rois Mages
210 rue Louis Arnaud
13794 Aix-en-Provence Cedex 3
___________________________
* List not exhaustive. For additional names, see for example:
Annuaire Vert, La Vie Au Natural, OCEP Editions
11 rue Sainte Ambroise
75011 Paris
Tel: +33-1 47 00 46 46
Fax: +33-1 47 00 24 91
http://www.vert-world.com
Tel: +33-4 42 24 42 57
Fax: +33-4 42 24 36 62
(Importer of organic tea and coffee)
Pimpexport
103 boulevard Mac Donald
75019 Paris
Tel: +33-1 45 91 05 88
Fax: +33-1 45 91 05 78
(Importer and trader in organic teas,
aromatic plants, herbal tea plants,
plant extracts, spices)
Pronatura
MIN 68
84953 Cavaillon Cedex
Tel: +33-4 90 78 73 04
Fax: +33-4 90 78 73 14
(Importer and trader in organic fruits
and vegetables, citrus fruits, dried
fruits)
René Devalance
Domaine de Choisel
51120 Queudes
Tel: +33-3 26 80 53 85
Fax: +33-3 26 81 35 02
(Importer and trader in organic
cereals, flour, edible oils, dried
legumes, legumes, oil-seeds,
oil-seed/protein products, salts,
semolina, preserves, rice)
Sté Arcada France
Domaine du Blazy
47130 Port-Sainte-Marie
Tel: +33-5 53 87 20 24
Fax: +33-5 53 87 26 18
(Importer-distributor of organic fruit
and vegetables)
168
PROCESSORS AND
PACKERS **
BIO Planete Sarl
Route de Limoux
11150 Bram
Tel: +33-4 68 76 51 27
Fax: +33-4 68 76 54 73
(Cooking oils)
Celnat
ZI de Blavozy
43700 Saint-Germain-Laprade
Tel: +33-4 71 03 04 14
Fax: +33-4 71 03 54 31
(Processor and distributor of
organic cereals, cereal-based
products, tea, etc.)
Distriborg France
217 chemin du Grand Revoyet
69561 St-Genis-Laval
Lyon
Tel: +33-4 72 67 10 20
Fax: +33-4 72 67 10 57
organic products)
Florame
34 boulevard Mirabeau
13210 Saint-Rémy-de-Provence
Tel: +33-4 90 92 48 70
Fax: +33-4 90 92 48 80
(Essential oils, etc.)
Fytosan - La Drome Provençal
ZA de Cocause
26150 Die
Tel: +33-4 75 21 09 09
Fax: +33-4 75 22 18 70
(Essential oils, etc.)
Le Goût de la Vie s.a.
83 boulevard Montparnasse
75006 Paris
Tel: +33-1 53 63 24 70
Fax: +33-1 53 63 24 71
(Importer, processor, wholesaler
and exporter of grocery items and
dairy products)
Markal
ZA Les Plaines
26320 St-Marcel-lès-Valence
Tel: +33-4 75 58 72 20
Fax: +33-4 75 58 81 85
organic cereals, cereal-based
products, rice, grains and legumes)
Nutrition et Soja-Soy
Chemin de l’Horte
31250 Revel
___________________________
** Of which some are also importers.
Tel: +33-5 62 18 72 50
Fax: +33-5 62 18 72 51
organic soya-based products)
Sté Bio d’Armor
La Croix Rouge
Ergué - Gabéric
29556 Quimper Cedex 9
Tel: +33-2 98 59 58 00
Fax: +33-2 98 59 69 99
organic fresh produce and grocery
products)
Sté Biovivre Diepal-NSA
BP 432
69654 Villefranche-sur-Saône
Cedex
Tel: +33-4 74 62 63 64
Fax: +33-4 74 62 61 96
organic condiments, bakery
products, cooking cereals, pasta,
rice, biscuits, pre-cooked dishes,
sauces, juices, infusions, coffee,
breakfast foods, flours)
Sté Bonneterre (Group
Distriborg)
1 place des Planteurs
94538 Rungis Cedex
Tel: +33-1 49 78 25 00
Fax: +33-1 46 87 91 68
(Distributor of organic dairy
products, fresh fruits and
vegetables, cereals, edible oils,
flours, jam, dried fruits)
Sté Brugier Sillon
(Group Distriborg)
ZI en Tourré
11400 Castelnaudary
Tel: +33-4 68 94 52 10
Fax: +33-4 68 94 02 80
organic dried fruits)
Sté Favrichon
(Group Le Goût de la Vie)
BP 2
42470 Saint-Symphorien
Tel: +33-4 77 64 75 09
Fax: +33-4 77 62 74 11
(Organic muesli, cornflakes, rusks,
biscuits, dried legumes, creamed
corn, infant cereals)
Sté Hervé Produits Biologiques
36700 Clion-sur-Indre
Tel: +33-2 54 38 66 03
Fax: +33-2 54 38 66 04
organic dried fruits, purées and
dried fruit sweets, lacto-fermented
cereals, instant beverages)
Sté Prosain
(Group Le Goût de la Vie)
Les Mates
66670 Bages
Tel: +33-4 68 21 60 23
Fax: +33-4 68 21 80 36
(Jams, purées, vegetable
preserves: organic peas, beans,
lentils, gazpacho, tomato or
piperade, ratatouille, juices, nectars,
syrups)
Sté Provence Régime SA
ZI La Verrerie
BP 99
30130 Pont-Saint-Esprit
Tel: +33-4 66 90 54 54
Fax: +33-4 66 39 42 31
(Processor and distributor of edible
oils, speciality products from the
south of France, oil-seeds,
vinegars, organic sauces and
condiments)
Viver SA
Le Marchon
47130 Bazens
Tel: +33-5 53 87 27 76
Fax: +33-5 53 87 21 69
(Processed tomato product, fruit
juices, jams, marmalade, fruit
purée, etc.)
SPECIALIZED RETAIL
CHAINS FOR ORGANIC AND
NATURAL PRODUCTS AND
FOOD SUPPLEMENTS
Aux Rayons Verts
(60 shops)
41 rue Léon Blum
ZA La Neuvillette
51100 Reims
Tel: +33-3 26 87 22 90
Fax: +33-3 26 04 88 79
Biocash Distribution
(Central buying)
281 avenue du Marché Gare
MIN Espace No. 13
34047 Montpellier Cedex 1
Tel: +33-4 67 58 68 58
Fax: +33-4 67 58 59 70
Biocoop
(180 shops)
22 cours Gambetta
65000 Tarbes
Tel: +33-5 62 34 10 37
Fax: +33-5 62 44 15 96
Biothiclub
46 rue Pierre Germain
11000 Carcassonne
Tel: +33-4 68 72 09 00
Fax: +33-4 68 25 48 48
La Vie Claire
(Group Distriborg - 120 shops)
35 avenue du 1er mai
91127 Palaiseau Cedex
Tel: +33-1 64 53 83 00
Fax: +33-1 64 53 83 01
SUPERMARKET/
HYPERMARKET CHAINS
169
94000 Créteil Cedex
Tel: +33-1 45 17 92 00
Fax: +33-1 45 17 92 20
ACCREDITATION AND
CERTIFICATION
ORGANIZATIONS
AFAQ-ASCERT International
116 avenue Aristride Birand
BP 83
92225 Bagneaux Cedex
Tel: +33-1 46 15 70 60
Fax: +33-1 46 15 70 69
(Certification)
Auchan
Centrale d’achats
200 rue de la Recherche
59656 Villeneuve-d’Ascq Cedex
Tel: +33-3 20 67 55 78
Fax: +33-3 28 37 61 39
COFRAC
37 rue de Lyon
75012 Paris
Tel: +33-1 44 68 82 58
Fax: +33-1 44 68 82 48
(Accreditation and certification
organization)
Carrefour
BP 75
Zae de Saint Guénault
1 rue Jean Mermoz
91002 Évry Cedex
Tel: +33-1 60 91 37 37
Fax: +33-1 60 79 44 98
ECOCERT SARL
BP 47
32600 L’Isle-Jourdain
Tel: +33-5 62 07 34 24
Fax: +33-5 62 07 11 67
(Certification)
Centres Leclerc
149 rue Saint Honoré
75001 Paris
Tel: +33-1 46 62 52 00
Fax: +33-1 46 62 96 00
QNPC (Qualité
Nord-Pas-de-Calais)
241 avenue de la République
59110 La Madeleine
Tel: +33-3 28 38 94 84
Fax: +33-3 28 38 90 87
(Certification)
Cora/Loceda Hyperselection
BP 81
Domaine de Beaubourg
77183 Croissy-sur-Beaubourg
Tel: +33-1 64 62 65 00
Fax: +33-1 64 80 40 51
Monoprix SA
3 rue Paul Cézanne
75008 Paris
Tel: +33-1 40 75 15 15
Fax: +33-1 40 75 11 16
Prisunic SA
67-69 boulevard Gal. Leclerc
92110 Clichy
Tel: +33-1 41 17 85 000
Fax: +33-1 41 27 88 77
Promodès
ZI, Route de Paris
14120 Mondeville
Tel: +33-3 17 06 060
Fax: +33-3 18 35 619
Qualite France
18 rue Volney
75002 Paris
Tel: +33-1 42 61 58 23
Fax: +33-1 42 60 51 61
(Certification)
ULASE
Place du Champ de Mars
26270 Loriol-sur-Drôme
Tel: +33-4 75 61 13 00
Fax: +33-4 75 85 62 12
(Certification)
GOVERNMENT OFFICES,
RESEARCH CENTRES,
TRADE AND INDUSTRY
ASSOCIATIONS
MINISTRIES
Système U Centrale Nationale SA
Immeuble Créteil Expansion
9-11 rue George Enesco
Ministère de l’agriculture, de la
pêche et de l’alimentation
(Ministry of Agriculture, Fisheries
and Food)
30 rue Las Cases
75340 Paris Cedex 07
Tel: +33-1 49 55 57 03
Fax: +33-1 49 55 56 01
(Responsible for planning the
development of the organic
agricultural sector)
Direction générale de l’alimentation
Bureau des labels et des
certifications de produits
175 rue du Chevaleret
Tel: +33-1 49 55 80 03
Ministère de l’économie, des
finances et du plan
(Ministry of Economy, Finance and
Planning)
(General Directorate of Competition,
Consumers Affairs and Fraud
Repression)
Bureau H4
59 boulevard Vincent Auriol
Télédoc 051
Tel: +33-1 44 87 17 17
Fax: +33-1 44 97 30 43
RESEARCH CENTRES
CREDOC - Centre de recherce
pour l’étude et l’observation des
conditions de vie
(Research Centre for the Study and
Observation of Living Conditions)
142 rue du Chevaleret
75013 Paris
Tel: +33-1 40 77 85 61
Fax: +33-1 40 77 85 09
CRITT-CRISALIDE - Centre de
transfert de technologie dans le
secteur végétal
(Centre for the transfer of
technology in the crop sector)
2 rue Henri Becquerel
49070 Beaucouzé
Tel: +33-2 41 48 13 50
Fax: +33-2 41 48 07 87
INRA - Institut national de la
recherche agronomique
147 rue de l’Université
Tel: +33-1 42 75 90 00
Fax: +33-1 47 05 99 66
http://www.inra.fr
INRA-UREQUA - Unité de
recherche spécialisée sur
l’économie des qualifications
agro-alimentaires
(Specialized research unit on the
economic aspects of agro-food
170
specifications)
8 avenue Laënnec
72000 Le Mans
Tel: +33-2 43 39 94 00
Fax: +33-2 43 39 94 09
PROFESSIONAL
ORGANIZATIONS
APCA - Association permanente
des Chambres d’agriculture
(Permanent Association of
Agricultural Chambers)
9 avenue Georges V
Paris
Tel: +33-1 53 57 10 05
biologique regroupant des
transformateursindustriels et
distributeurs français de produits
biologiques
(Association of Organic Agriculture
comprising processors,
manufacturers and distributors of
organic products)
1 avenue de Verdun
33500 Libourne
Tel: +33-5 57 51 96 82
Fax: +33-5 57 51 97 28
Association Demeter France
BP 286
67606 Sélestat Cedex
Tel/Fax: +33-1 30 71 11 24
Fédération française de la
diététique
(French Dietetic Federation)
(Federation of several professional
unions organizing the DIETEXPO
trade show in Paris)
14 terrasse Bellini
92807 Puteaux
Tel: +33-1 47 75 03 09
Fax: +33-1 47 55 03 09
BIO CONVERGENCE Association d’agriculture
FNAB - Fédération nationale de
l’agriculture biologique des
régions de France
(National Federation of Organic
Farming of the French Regions)
40 rue de Malte
75011 Paris
Tel: +33-1 43 38 38 69
Fax: +33-1 43 38 39 70
Mouvement de Culture
Biodynamique
Jean Michel Florin
5, Place de la Gare
68000 Colmar
Tel: +33-3 89 24 36 41
Fax: +33-3 89 24 27 47
SETRAB - Syndicat européen des
transformateurs de produits de
l’agriculture biologique
(European Union of Processors of
Organic Agriculture)
40 avenue des Terroirs de France
Tel: +33-1 44 74 53 56
Fax: +33-1 44 74 52 76
Annex II
Individual import authorizations for organic food products
originating in third countries in 1997
(According to the procedure set out in article 11 paragraph 6 of
EU Regulation No. 2092/91, including amendments)
Products
Estimated
tonnage
Apples
Pears
Apples
Pears
Dried cinnamon
Dried cloves
Avocado pears
Late oranges
Dried apricots
Dried figs
Fig pieces
Fig cream
Raisins
Raisin cream
Peeled hazelnuts
Green walnuts
Pine pips
Chickpeas
Lentils
Palm oil
Green coffee
Green coffee
Mangoes
Oranges
Lemons
Grapefruit
Nutmegs
Green walnuts
Tomatoes
Carrots
Melons
Zucchini
Cucumbers
Pistacchio nuts in shell
Sesame
Dried chicory
Fresh lychees
Fresh pineapple
Fresh rambutans
Peppers
Deep-frozen blackcurrants
Eucalyptus oil
Tea tree oil
Green walnuts
100
50
500
50
13
4.2
30
34
70
100
5
20
200
10
80
10
2
5
5
7 700
69
35
30
250
70
150
4.5
25
20
90
15
20
25
1
40
150
8
2
1.5
0.2
40
1
1
25
Origin
Poland
Poland
Madagascar
Mexico
Morocco
Colombia
Mexico
Costa Rica
Dominican Republic
United States
Madagascar
India
Morocco
United States
Ethiopia
Hungary
Madagascar
Canada
Zimbabwe
India
Products
Dried apricots
Dried figs
Fig pieces
Fig cream
Raisins
Raisin cream
Shelled hazelnuts
Green walnuts
Pine nuts
Chickpeas
Lentils
Beet sugar
Cocoa beans
Raisins
Raisins
Beet sugar
Quinoa
Black tea
Black, white and green tea
Oranges
Lemons
Sweet mint
Marjoram
Citronnella
Sage
Basilic
Rosemary
Olives
Molasses
Nettles
Parsley
Deep-frozen apricots
Dried apricots
Pine pips
Hazelnuts
Sultanas
Dried figs
Black vanilla
Cocoa beans
Peeled almonds
Peeled almonds
Peeled almonds
Dates
Cocoroll dates
Estimated
tonnage
30
60
5
5
150
10
15
15
10
330
270
100
90
5
15
240
200
7
2
2.4
0.3
1
0.5
0.2
0.5
0.2
0.2
0.2
0.3
0.1
0.2
5
0.275
0.1
0.16
0.2
0.2
0.5
18
2
2
10
10
2
Origin
Turkey
Slovakia
Dominican Republic
United States
United States
South Africa
Bolivia
Sri Lanka
India
Morocco
Turkey
Turkey
Madagascar
Dominican Republic
United States
United States
United States
United States
172
Products
Dried apples
Dried pears
Dried apples
Dried pears
Dates
Cocoroll dates
Dates
Cocoroll dates
Dried bananas
Fresh mangoes
Fresh pineapples
Dried pineapples
Estimated
tonnage
2
1
0.5
0.5
4
1.5
1.3
3
10
1
2
1
Origin
Products
Estimated
tonnage
United States
United States
United States
United States
United States
United States
United States
United States
Colombia
Fresh coconuts
Dried coconuts
Apples
Tea tree oil
Dried figs
Late oranges
Navel oranges
Tampla oranges
Valencia oranges
Lemons
Clementines
Grapefruits
2
1
100
0.75
60
422.5
240
60
80
147.5
339.5
20
PROVISIONAL TOTAL IMPORTS OF ORGANIC FOOD PRODUCTS IN 1997: 13 288.18 metric tons
Origin
Madagascar
Zimbabwe
Turkey
Morocco
Annex III
Commercial organic products sold in 1997
CEREAL PRODUCTS AND
PULSES
Cereals
Barley
Buckwheat
Millet
Oats
Popcorn
Rye
Spelt
Wheat
Seeds
Amaranth
Bulgur (pre-germinated and
crushed wheat)
Colza
Green or yellow soya
Linseed
Lucerne (alfalfa)
Quinoa
Safflower
Sesamum seeds
Squash
Sunflower
Sheat bran
Rice
Basmati rice
Brown rice
Glutinous rice (red brown)
Indian rice
Precooked white rice
Rice cakes
Under-milled rice
Wild rice
Cereal by-products
Biscuits
Bran
Bread for sandwiches
Cereals, breakfast
Cereals for babies
Cereals made of vegetable
paste
Cereals, purées
Cereals, steaks
Cereals, germs
Corn flakes
Crackers
Cream of barley, cream of rice
Flour, rye flour, barley flour,
cornflour, soya flour, buckwheat
flour, quinoa flour
Gingerbread
Muesli
Oat flakes, cereal flakes
Pasta: all types and varieties
Pastry
Rusks and toasts
Soya, oats, rice, wheat, malt
drinks
Viennoiserie
Wheat, corn, bulgur semolina
White wholemeal couscous
Dried seeds (pulses)
Azuki beans
Black, white, red, brown, mung,
ingot beans
Chickpeas
Green peas
Soya beans
Split peas
White, green, red and ‘coral’
lentils
White, pink, red, black kidney
beans
Yellow peas
FRUITS AND VEGETABLES
Fresh
Apple
Baby banana
Banana
Banana, red
Carob
Grape, red and white
Grapefruit
Kiwi fruit
Lemon
Mandarin
Mango
Orange
Papaya
Pear
Pineapple
Artichoke
Avocado
Beans, green, butter, mung
Beetroot
Broccoli
Brussels sprouts
Cabbage, Chinese
Cabbage, green
Cabbage, pak-choï
Cabbage, red
Carrot
Cauliflower
Celeriac
Celery
Courgette
Cucumber
Eggplant
Endive, curly
Fennel
Garlic
Horseradish
Kale, curly
Leek
Lettuce
Lettuce, lamb’s
Lettuce, Webb
Onion, yellow
Parsley
Pepper, green, red, yellow
Potatoes
Pumpkin
Tomatoes, Roma, round
Spinach
Turnip, white, yellow, purple
Canned
Dried fruit purée
Fruit in syrup
Fruit purée and compote
Jams: strawberry, blackcurrant,
raspberry, bilberry, fig, chestnut,
kiwi, pear, plum, apricot, peach
Canned vegetables: peas, green
beans, lentils, chickpeas,
beetroot salad, whole tomatoes
in juice
Tomato sauces
Vegetable soups
174
Candied hazelnuts in sugar cane
juice/in honey
Candied almonds in sugar cane
juice/ in maple syrup
White sesamum in sugar cane
juice
Purées: hazelnut, almond,
sesamum, peanut, cashew
Chocolate, karouba, kokolo
spread
Dried fruits (loose or
packaged)
Almond
Amazonia nuts
Apple
Apricot
Bilberry
Cashew nuts
Cherry
Currants
Deglet nour date
Dried banana
Fig
Grape
Grenoble nuts
Hazelnut
Mango
Medjool jumbo date
Medjool supreme date
Papaya
Pear
Pine nut
Pineapple
Pistachio nut
Shredded coconut
Sultanas
Thompson grape
Apricot purée
Banana slices
Banana purée
Banana paste
Frozen banana
Bilberry
Elderberry
Gooseberry
Guava purée
Mango purée
Maracuya juice
Orange concentrate
Orange juice
Peach
Pear
Pineapple
Pineapple juice
Plum
Raspberry
Raspberry purée
Redcurrant
Sour cherry
Strawberry purée
Tomato concentrate
Wild bramble
COFFEE, TEA, COCOA
Raw coffee
100% pure arabica ground coffee
Freeze-dried coffee
Tea
Instant chicory
100% pure cocoa drinking
chocolate
Cocoa beans
Cocoa cream
Black, milk coating
Carob powder
Juices, nectars and syrups
Apple
Blackcurrant
Carrot
Celery
Cereals
Grapefruit
Lemon
Mint (syrup)
Orange
Plum
Potato
Radish
Red and white grape
Tamari
Tomato
DAIRY PRODUCTS
Butter
Cheese: Emmenthal, Comté,
gouda, tofu (soya cheese),
Camembert, fresh cheese
Fresh cream
Faisselle
Ice cream
Milk desserts : cocoa, soya and
caramel, natural yoghurt, stirred
yoghurt, fruit flavour, with fruit
Milk: cow, soya, rice/soya,
vanilla/soya, almond
Powdered milk, whey powder
Frozen fruits and
concentrates
Acarillo purée
Apple
Apple concentrate
Apricot
OILS
Almond
Coconut
Colza
Corn germ
Groundnut
Hazelnut
Marsh thistle almond
Nut
Olive
Palm
Safflower
Sesamum
Soya
Squash seed
Sunflower
Wheat germ
WINE, BEER, VINEGAR
French and imported wine
French and imported beer
Wine vinegar, cider vinegar,
raspberry vinegar
PREPARED, COOKED
DISHES
Aubergine niçoise
Aubergine caviar
Courgette purée
Couscous
Creams
Fresh sprouts/germs: soya bean,
alfalfa, lentil, radish, wheat
Mixed soya
Mixed salads with germinated
seeds
Mixed salads
Mousselines (whipped purées)
Piperade
Ratatouille
Ravioli
Seitan (preparations of wheat
gluten)
Tabbouleh
Vegetarian cooked dishes
MEAT, MEAT PRODUCTS,
POULTRY, EGGS,
PREPARED MEAT
PRODUCTS
Beef, veal, mutton
Poultry
Eggs
Prepared meat products
HERBS, SPICES, SALTS
AND CONDIMENTS
Vanilla
Tea tree
Basil
Lemon
Clove
Cypress
Eucalyptus
Juniper berries
Geranium rosat
Fine lavender
Lavandin
Peppermint
Punk tree
Sweet orange
175
Green oregano
Scots pine
Ravensara
Rosemary
Turpentine
Thyme
Ylang-ylang
Salts
Tomato concentrate
Tomato coulis
Peeled tomato
Salted ketchup
Tomato sauce à la Provençale
with basil
Soya sauce: shoyu (made with
soya and wheat, salted)
Tofu sauce: tamari (made with
soya and wheat, salted)
Harissa
Olives
SUGAR, HONEY,
SWEETENERS
Brown cane sugar, unrefined
Honey: black alder, chestnut tree,
lavender, mountain, mixed
flowers, sunflower, acacia,
heather, dandelion pollen royal
jelly
Honey sweets, agave syrup
Maple syrup
Beetroot syrup
Glucose syrup
Chapter 8
GERMANY
Organic farming: historical development
Organic agriculture commenced in Germany at the
time of the organ ized land and food reform move ment
(1893-1925), when Reform shops (Reformhäuser in
German) were established. As early as 1903 Gustav
Simons of the Reform Colony in Eden-Oranienburg,
near Berlin, wrote a booklet about the relationship
between the health of the soil, the growth of plants and
the health of man kind. Bio dy namic agri cul ture started
in 1924 with Rudolf Steiner’s “Agri cul tural Course”,
given in Kober witz. His pupil Ehren fried Pfeiffer was
instrumental in spreading awareness of biodynamic
agriculture in Germany, the Netherlands and the
United States. From the mid 1930s onwards the
Müller-Rusch biological-organic method developed
strongly, but organic (and biodynamic) agriculture
remained marginal, and organic products were sold
only in Reform shops. Well- known brands of natural
body care products and natural medicines like
Dr Hauschka (Wala) and Weleda and the Reform food
brands Eden (estab lished in 1893 and now owned by
DeVauGe and Gra no vita) date from that period.
This situa tion lasted until the 1960s and 1970s, when
the natural food movement gained importance and
created its own circuit of farmers, processors,
wholesalers and natural food stores (Naturkostläden
in German). Major growth started in the late 1980s and
early 1990s, when con ven tional food retailers became
involved. Their entrance into the market forced the
stagnating natural food stores to reorganize and
modernize.
Today Ger many as a market for organic prod ucts is
Euro pe’s largest and the world’s second largest after
the United States. However, despite the fact that it
con tinues to grow, there are also rea sons for serious
con cern about its future devel op ment, as will be seen
in the sec tion on sum mary and market pros pects.
Supply and demand
Domestic production
The area under organic pro duc tion increased sharply
from 45,000 hec tares in 1989 to 416,500 hec tares by
the end of 1998. Con ver sion to organic farming has
been stimulated partly by political and financial
support. Public funding has been especially
successful in eastern Germany, where at the time of
reunification in 1990 certified organic farming was
vir tu ally non- existent. Today a higher per centage of
agricultural land is used for organic farming in the
Neue Bundesländer (new federal States), where
farms are gen er ally larger and have lower pro duc tion
costs than in western Ger many (see table 8.1).
Until about 10 years ago Germany could easily
absorb any organic supplies offered even at high
prices. How ever, the country has now become largely
self- sufficient in many basic organic food items, like
cereals, vegetables, milk and meat, and has even
started to export products like potatoes, some
vege ta bles and cereals. Sur pluses in these sec tors are
no longer exceptional, which can have a negative
effect on price levels.
CHAPTER 8 – GERMANY
Table 8.1
177
Germany: number of farms and areas under organic farming, 1 January 1998
No. of organic
farms
Federal State
Total, western Germany
of which:
Bayern (Bavaria)
Baden-Württemberg
Niedersachsen (Lower Saxony)
Schleswig-Holstein
Nordrhein-Westfalen (North Rhine-Westphalia)
Hessen (Hesse)
Rheinland-Pfalz (Rhineland-Palatinate)
Saarland
Hamburg
Bremen
Total, eastern Germany
of which:
Mecklenburg-Vorpommern (Mecklenburg-Western
Pomerania)
Brandenburg
Sachsen-Anhalt
Thüringen (Thuringia)
Sachsen (Saxony)
Berlin
TOTAL, GERMANY
% of all farms
Area (hectares)
% of all
agricultural land
5 898
1.19
185 734
1.59
2 572
1 277
467
283
541
369
330
31
21
7
888
1.47
1.58
0.62
1.17
0.81
1.08
0.95
1.41
2.27
2.49
2.83
69 476
32 894
22 496
19 619
16 209
14 563
8 193
1 505
686
93
166 640
2.06
2.28
0.84
1.88
1.05
1.89
1.15
2.02
5.04
1.01
3.00
443
8.65
85 599
6.35
185
83
48
122
7
6 786
2.48
1.58
0.91
1.50
8.54
1.29
46 052
14 153
10 542
10 145
149
352 374
3.42
1.21
1.32
1.13
7.84
2.05
Source: AGÖL and ITC compilation.
Table 8.1 only covers farms that are mem bers of one
of the nine member asso cia tions of AGÖL (Arbe itsgemeinschaft Ökologischer Landbau), the German
Federation of Organic Agricultural Associations.
There are about 1,500 organic farms with an
estimated 100,000 hectares which are not members
of an AGÖL- affiliated asso cia tion.
According to estimates, domestic production
sup plies over 60% (DM 2.2 bil lion) of all retail sales
Table 8.2
Name
ANOG
of organic prod ucts in Ger many. The most impor tant
categories are bread and bakery products (over 90%
of the raw mate rials used to pro duce these items are
of domestic origin), dairy and tofu prod ucts and eggs
(about 80% domestic), fruits and vegetables (45%)
and meat (99%). A significant proportion of the
whole grains, cereals, muesli and drinks consumed
are also locally produced. The two key growth
sec tors are meat, meat prod ucts and poultry, and dairy
products, whilst organic seed and plant production
Germany: AGÖL member organizations, 1 January 1999
No. of farms
Area (hectares)
Date founded
Characteristics
85
3 287
1962
Small organization; produces fruits and vegetables.
200
3 397
1979
Regional Bavarian group.
Bioland
3 385
116 739
1971
Largest group.
Biopark
587
107 754
1991
Located in eastern Germany.
Demeter
1 333
48 065
1928
Follows biodynamic farming principles; also involved
in imports.
ECOVIN
198
877
Gäa
313
Biokreis Ostbayern
1985
Wine producers.
35 254
1989
Located in eastern Germany.
Naturland
1 125
57 440
1982
Regional Bavarian group, dynamic and gaining in
importance; also imports.
Ökosiegel
23
1 296
1986
Small regional group in northern Germany.
Source: AGÖL.
178
are also on the increase.
in the world after the United States.
Meat, meat products, poultry
Fruits and vegetables are the most significant sales
item and accounted for 18% of sales in 1996. Since
then this share has undoubtedly increased as
conventional supermarkets have considerably
widened their range of organic produce. Other
impor tant product groups are dairy and tofu prod ucts
(16% of sales in 1996), bread and bakery products
(14%) and baby food (13%).
To date meat has had a minor place in organic food
sales but, according to Frost & Sul livan (1997), it is
now the fastest growing sector. One reason for its
slow development in the past was the high cost of
production. This is especially true of pork and
poultry, the organic fodder for which is expensive.
Another reason was the absence of economies of
scale: the stocking, slaughtering, processing and
marketing of small quantities of organic produce is
costly. Finally, tra di tional whole food con sumers did
not and still do not eat meat or eat only small
quan ti ties of it.
This situation is changing as conventional food
distributors, which appeal to a wider range of
consumers, are begin ning to carry organic meat and
meat products in a limited number of outlets. The
dominant multiple Rewe has formed a partnership
with the producers’ association Naturland, with the
objective of obtaining more standardized meat
supplies to suit consumer demand for uniform
products. Under the auspices of Bund, the German
League for Environmental Protection and Nature
Preservation, the supermarket chains Edeka and
Tegut also entered the organic meat sector in 1999. It
is expected that the exten sion of the EU regu la tion on
organic food to animal prod ucts, which took place in
June 1999, will fur ther stimu late pro duc tion and trade
in organic meat.
Dairy products
Dairy products are important to both conventional
and specialized trade channels, and make up about
18% of all food prod ucts sold in the country. A large
volume of organic milk is pro duced domes ti cally, and
apart from the typical cheeses from Den mark, France
and the Neth er lands, the German dairy market offers
no real oppor tu ni ties for organic imports. The leading
organic dairies are Andechser Molkerei Scheitz
GmbH in Andechs and Molkerei Söbbeke in
Gronau-Epe.
Retail sales
Germany has about 82 mil lion inhabi tants and total
retail food sales in 1997 amounted to approxi mately
DM 300 billion. Organic food accounts for an
estimated 1.2% of the market, or about DM 3.6
bil lion. Ger many is the second largest organic market
Table 8.3 gives a break down of sales of organic foods
in Ger many by product cate gory. For this pur pose the
BNN classification has been used. BNN or
Bundesverband Naturkost is the umbrella
organization for the specialized natural food retail
trade. Organic baby food has been added at the end of
the table because, although it is of little significance
to overall sales in natural food shops, it is an
impor tant product cate gory in total organic sales.
Fruit and vegetables are the most significant segment
of sales and accounted for 18% of sales in 1996.
Since then this percentage has undoubtedly increased
as conventional supermarkets have considerably
widened the range of organic produce sold. Other
important product groups are dairy and tofu products
(16% of sales in 1996), bread and bakery products
(14%) and baby food.
Imports and exports
Although domestic organic production has grown
dramatically during the last decade, exports remain
small, with some exceptions like the baby food of
which Hipp is a large exporter. Vege ta bles and even
wheat and other cereals have recently been exported.
Germany remains, however, by far the largest
importer in Europe, and imports a wide assort ment of
organic prod ucts. In table 8.3, the typical dis tri bu tion,
processing and packaging margins have been
deducted from the retail value of each organic food
category and an estimate has been made of the
percentage level of imports (column H) in order to
deduce an approximate import value per product
group (column G).
Overall, imports account for an esti mated 38% of the
value of raw mate rials for the German organic market
(table 8.3, bottom of column H), equiva lent to about
DM 307 mil lion (bottom of column G), or about 10%
of total sales at retail level. About 44% (valued at
about DM 135 mil lion) of these imports are fruit and
vege table prod ucts – of which DM 93 mil lion in fresh
Table 8.3
Germany: sales of organic foods, by product group
(in millions of deutsche mark)
Sales at retail level
Product group
A
1
2
3
4
5
6
7
8
9
10
11
12
179
Bread and bakery
Dairy, tofu products; eggs
Meat, sausages, snacks
Wholegrain, seeds, nuts
Wholegrain
Seeds
Nuts
Pasta, dried fruit, cereals, muesli
Pasta
Dried fruit
Cereals, muesli
Bread spreads, honey, nut butter
Bread spreads
Jam, fruit spreads
Honey
Nut butter
Spices, oils, fats
Soups, cans, convenience foods
Spices
Oils
Sweets, biscuits, pudding
Sweets
Chocolate
Biscuits
Sweeteners, baking ingredients
Tea, coffee, cocoa
Tea
Coffee, cocoa
Drinks
Fruit, vegetable juices
Alcoholic drinks
Non-food products: body care, etc.
Total
Baby food
TOTAL
B
Distribution Processing/packaging
margins:
margins
45-60%
Imports of raw
materials
C
D
E
F
G
H
Value
%
Value
Value
%
Value
%
515
589
662
110
14
16
18
3
289
327
294
55
58
262
206
41
20
80
70
75
3
52
93
0
5
20
45
1
110
37
74
3
1
2
55
18
37
28
9
22
50
50
60
3
9
22
10
100
100
74
74
110
2
2
3
37
37
55
11
22
28
30
60
50
9
21
8
80
95
30
37
37
37
74
1
1
1
2
18
18
18
37
6
6
7
11
30
30
40
30
2
5
7
10
30
90
90
3.5
0.5
1
64
9
18
19
3
6
30
30
30
12
2
5
60
90
95
37
37
37
37
1
1
1
1
18
18
18
18
4
4
4
6
20
20
20
30
3
4
1
4
80
100
15
80
74
74
2
2
37
37
11
11
30
30
10
10
90
95
74
110
2
3
13
100
37
55
11
11
30
20
6
7
50
60
1 628
804
49
307
38
-
-
-
-
-
129
18
37
3 200
400
3 600
Source: Trade estimates.
A
C
D
E
F
G
H
Main categories at Naturkostshops (1-12).
% of total sales of organic products (DM 3,200 million).
Estimated average distribution margin of retailers and wholesalers: 50% (from a range of 45% -60%) of sales.
Estimated value of raw materials before processing and packaging.
E as percentage of sales to wholesalers.
Approximate import value per product group.
Estimated percentage level of imports.
fruits and vege ta bles, DM 21 mil lion in dried fruits,
DM 12 mil lion in vege ta bles for can ning and con venience foods (mostly toma toes), DM 9 mil lion in fruit
juices and prepa ra tions, and dairy prod ucts (e.g. fruit
yoghurts), jams and fruit spreads. Imports of nuts and
nut butter (peanut and almond spreads and the like)
are esti mated at DM 32 mil lion, which seems rather
high and is plausible only if it includes dried fruit
mix tures and nuts for use in cakes, muesli, choco late,
biscuits and other products. Imports of organic tea,
coffee and cocoa (util ized mainly in the pro duc tion of
chocolate), typically from developing countries,
180
amount to about DM 24 mil lion. About half of these
imports are mar keted with the Trans Fair seal in conven tional gro cery out lets and the other half in natural
food shops by companies like Rapunzel, Lebens baum, Allos and others. Imports of spices, oils, fats,
sweets, sweet eners and baking ingre di ents, of which
large shares also come from devel oping coun tries, are
valued at about DM 14 mil lion. Sub stan tial quan ti ties
are imported by indus trial sup pliers like Care, Davert
Mühle, Georg Rösner and Übelhör but processors
also import direct. Imported oils, like palm oil, are the
main ingre di ents for organic mar ga rine, which is produced by the margerine factories Münsterland and
Saarwerke.
Further information on organic products obtained
from devel oping coun tries is pro vided fur ther below
in the sec tion on market char ac ter is tics.
Consumer categories
The key influences on food purchasing by German
consumers are convenience, health and enjoyment.
However, these and other influences are often
contradictory. For instance, health cannot easily be
obtained by con ven ience, demand for the best pos sible
quality is not com patible with demand for low prices,
and the keen interest in exotic foods (from distant
pro ducing coun tries) con flicts with the growing interest
in and the redis covery of locally grown pro duce.
Consumers in the 1990s have become increasingly
multidimensional and can no longer be defined
according to socio-economic criteria alone. Typical
organic con sumers used to be char ac ter ized as having
higher than average edu ca tional back grounds but not
necessarily higher incomes (many students buy
organic food), belonging to small fami lies, and so on.
Market research by Germany’s largest consumer
research organization GfK has shown that the
Germans of today often simultaneously display
apparently contradictory behaviour in their food
consumption: their pref er ences and actions can vary
not only in the long term but even within the day. For
example, it would not seem absurd for an indi vidual
consumer to have a healthy breakfast with muesli,
yoghurt and fruit, a fast- food lunch, and a cele bra tory
dinner with lob ster and cham pagne.
In a survey in 1991, the Sinus Institut für
Lebensweltforschung categorized natural food store
customers according to socio-economic criteria and
values as fol lows:
q
44% came from a technocratic-liberal
environment. This group accounts for 10% of the
overall population.
q
27% came from an alternative environment (2%
of the overall population).
q
14% came from a hedonistic environment (12%
q
6% came from a conservative environment (8%
q
9% came from all other backgrounds (68% of
the total population).
According to the Sinus Institut, at least 77% of the
customers of natural food stores come from the
higher and middle social classes.
Other studies conclude that the organic food
customer more often than not has a higher level of
edu ca tion, but not nec es sarily a higher income. Data
on age and family size are often con tra dic tory.
The ever more com plex cate go ri za tion of con sumers
requires a shift from the more traditional focus on
consumer behaviour to a much more finely tuned
view of the consumers’ dispositions, state of mind,
desires and expe ri ences.
In a market study carried out in 1996 by CMA (the
German Marketing Agency for Agrarian Products)
and Rewe, one of Germany’s largest food retailers,
74% of organic buyers claimed that health
con sid era tions were the key influ ence on pur chasing.
The other most important reasons were making a
personal contribution towards improving the
environment (51%), better nutritional value (29%)
and better taste (20%). The survey also found that
56% of organic consumers were ready to pay an
organic pre mium of more than 15%, 33% a pre mium
of less than 15%, and 11% were not pre pared to pay
any pre mium. A more recent survey shows a dif ferent
pic ture: only 20% of all con sumers are willing to pay
any pre mium on organic foods.
Consumer confusion about organic
products
It is a matter of con tro versy whether con sumers really
understand what organic products are. The
CMA-Rewe market study revealed that 95% of all
German families claim to know what organic
agri cul ture is and that organic prod ucts are pur chased
by no less than two-thirds of them. Half of these
pur chasers buy at least once a week. About 32% of all
fami lies never buy organic prod ucts. The knowl edge
level would sug gest that the market share of organic
products should be much higher than the current
estimated 1.2% share of total grocery sales. It
empha sizes the fact that pas sive con scious ness of the
need to preserve the environment is not translated
into the action of buying more environmentally
friendly food stuffs. Around 6% of German adults are
‘green’ voters but they do not actively live a ‘green’
life. In many people’s minds ‘buying organic food’
seems to mean buying, for example, the occasional
loaf of organic bread, a bag of organic car rots, onions
or pota toes, a bottle of organic milk or a jar of organic
baby food.
Even the organically committed consumers eat far
less organi cally than they think they do. In a survey of
devoted natural food consumers Brombacher and
Hamm found that, while these cus tomers esti mated
the organic share of their food spending at 75% or
more, the real figure was only about 40%. In 1998
many hard-core natural food consumers, and of
course many more conventional food purchasers,
were unaware of the EU regu la tion on organic foods
and were completely confused by the numerous
‘natural food’ and ‘organic’ labels and logos
appearing on the market.
The generic bio-label
After almost 10 years of preparations, AGÖL and
CMA jointly launched a long due German generic
bio- label in early 1999. The label can be used on all
prod ucts, domestic or imported, which are pro duced
in accordance with AGÖL standards. A joint
licensing company, Ökoprüfzeichen GmbH – also
known as ÖPZ GmbH – was established and funds
were made available for marketing purposes. The
scheme is expected to contribute considerably to the
181
growth of the German organic market. However, the
rule limiting the use of the generic logo only in
combination with the logo of one of the AGÖL
member associations is considered by many to be a
restricting factor.
Purchasing organic foods: the criteria
used
German con sumers con sider a wide variety of qualities and other cri teria, rightly or wrongly, in deciding
whether or not to purchase organic foods. They
include the fol lowing: fresh ness, espe cially of fruits
and vege ta bles; tasti ness; food safety (e.g. absence of
contaminants); organic guarantees; buying con venience; product convenience; external appearance;
contribution to health; product image in relation to
the consumer’s values and lifestyle; appearance of
the point of sale; nutritional value; ‘naturalness’;
whole- food quality; absence of geneti cally modi fied
organ isms (GMOs); absence of addi tives; absence of
aller gens; origin of the product and the trans par ency
of its journey from field to shelf; quality man agement; animal- friendly hus bandry; eco logical packing
and logis tics; social impact (e.g. fair trade cri teria).
Three critical aspects have a particularly strong
impact on organic food pur chasing in Ger many.
Authenticity and confidence in source. In the
CMA-Rewe study referred to earlier, 40% of the
respondents who did not buy organic foods cited
doubts about their authen ticity as the main reason for
non-purchase. Because people are unable to
distinguish organic products from non-organic ones,
they tend to trust farm shops and weekly farmers’
markets more than other points of sale, though the
pro duce they buy there may not even be organic. They
often do not realize that certified organic produce is
available from other shops and, to a growing extent,
from supermarkets. Major retailers such as
Tengelmann, Rewe, Edeka, Metro and Globus are
gradually stepping up their campaigns but the results
have not been spec tacular to date. The smaller retailer
Tegut (Hawege) has been more successful and its
organic sales account for pos sibly as much as 3.5% of
its turn over. It is esti mated that a high pro por tion of the
organic purchases in conventional supermarkets is
attrib ut able to con sumers whose main pri ority is, not
specifically to eat organi cally, but to buy food which
they per ceive to be fresh, tasty, nutri tious, con ven ient,
environmentally friendly, not too expensive and
which, by chance, also happens to be of certified
organic quality.
182
Fresh ness and the need for rapid turn over. The more
organic food enters main stream chan nels, the greater
the applicability of the criteria customers generally
reserve for con ven tional food. Fresh ness is a pri mary
require ment, espe cially for per ish ables. Direct sales by
farmers do guar antee abso lute fresh ness, as they offer
fruits and vegetables harvested only a few hours
before; how ever, this sales method reaches only a very
small per centage of the poten tial organic con sumers in
Germany. The logistical costs of supplying regular
quan ti ties of fresh pro duce to natural food and Reform
shops are high and have been a major obstacle to sales
growth. If deliveries are too slow or too infrequent,
shops can offer only a small range of prod ucts, which
often are not fresh enough and have to be thrown away.
It is esti mated that, in order to offer a good range of
fresh produce, a German food shop needs to have
annual sales of more than DM 1.5 mil lion. Only about
20% of natural food and Reform shops have
modernized and improved their turnover of fresh
organic pro duce suf fi ciently to meet this require ment.
Rapid turn over is critical for suc cess. Major mul tiple
super mar kets have effi cient logistic sys tems and are
in a posi tion to dis tribute organic fresh food along side
conventional produce, provided the merchandise is
sold quickly. This has been the major problem for
German super mar kets: because fresh pro duce moves
off the shelves too slowly, con sumers have per ceived
organic quality as old. It is pre cisely because car rots,
onions and pota toes have a longer shelf life that these
organic products often attain a double-digit
per centage share in total sales. A higher turn over of
the whole range of fresh foods including milk and
dairy prod ucts, bread and even meat and sau sages is
essen tial. The quality of the pro duce depends on the
amounts sold, but these in turn depend on the quality
per ceived by the con sumer.
Perception and impulse. A consumer’s decision to
pur chase a par ticular food product in the super market,
which stocks 8,000 or more food items, is made
against the background of the above list of quality
require ments. How ever, he or she is basi cally looking
to buy some good food, pos sibly organic and not too
expen sive. The actual act of buying is made largely on
impulse based on the cus tomer’s existing per cep tions.
Clear identification, good merchandising and
communication are the key to promoting any food
product, whether organic or not. It has been
suggested that for organic foods to make a real
break through in con ven tional super mar kets, the same
amount of money spent on launching the major
conventional brands, typically at least DM 30
million, needs to be set aside to promote organic
foods. A generic marketing campaign supported
jointly by all market participants would seem to be
the best way for ward.
Fair trade and its relationship with
organics
Fair traded products are widely recognized in
Ger many. The country has an impor tant niche market
for a growing number of product groups like coffee,
tea, cocoa, honey and bananas. The primary concern
of the fair trade movement is with the social and
economic situation of farmers and producers in the
South rather than with organic farming as an ideal, but
the two move ments are tending to con verge, as both
contribute to genuine sustainability. Development
which proves sustainable over generations is
com pel lingly linked to the use of organic methods of
cultivation, processing and production. Because of
their traditional experience, producers often have a
sound basis for such con ver sion, it leads to addi tional
employ ment and, most sig nifi cantly, cer ti fied organic
pro duc tion raises the market poten tial of the prod ucts.
In Ger many, three main organi za tions are involved in
the fair trade move ment.
Fair Trade eV. This is the reg is tered asso cia tion for
the promotion of fairness in world trade. It is a
non- profit organi za tion, funded largely by a number
of churches and other bodies like Bread for the World
and Miserior. Its main purpose is to help
disadvantaged producers improve their products to
meet the stringent quality requirements of the
European market through research, product and
project development. Public relations, and the
initiation and support of campaigns, such as for
example against child labour, are also important
activi ties of Fair Trade.
Anyone with a social com mit ment can apply for Fair
Trade assis tance in researching the chances of a product
in the European market and devel oping it accord ingly.
About 25% of the products Fair Trade develops are
cer ti fied organic when the organi za tion starts handling
them, and 85% are cer ti fied organic when Fair Trade’s
job is fin ished and the product is handed over to Gepa
GmbH for mar keting (see below).
Fair Trade does not work exclusively with small
pro ducers. Its prin ci ples are being extended to sec tors
pre vi ously not touched by it, including large pri vate
183
concerns. Fair Trade can give its ready-to-market
prod ucts to any trader, but to date common purpose
and a his torical close ness as well as the fact that they
share the same premises has resulted in Fair Trade
handing over all its prod ucts to Gepa.
com prises nuts and dried fruit, sugar and cocoa, wine,
cereals and spices. Spices, chocolate and sweets are
the fastest growing product categories. Gepa’s
sources include almost every Latin American country
as well as quite a few African and Asian coun tries.
TransFair. This is an independent non-profit
organization which issues a licence to use the
Trans Fair seal, con trols the con di tions of fair trade, and
works in education, public relations and the
dissemination of information. Together with 15
national TransFair and Max Havelaar sister
organi za tions, it is part of FLO Inter na tional, the Fair
Trade Label ling Organi za tion. FLO has its sec re tariat
in Ger many and car ries out a dia logue with IFOAM on
issues like joint certification. FLO’s motto is: fair
wages rather than chari table dona tions.
The market pene tra tion of key Trans Fair prod ucts has
been sig nifi cant. Trans Fair coffee, intro duced into the
German market in spring 1993, is now sold in about
25,000 supermarkets and its market share, which
continues to rise, is currently 4%. Consumers can
choose from over 50 varie ties of coffee sup plied by
more than 30 Trans Fair licen sees. Tea was intro duced
at the end of 1994 with the par tici pa tion of nearly all
German tea traders. Within one year, Trans Fair black
tea had gained a market share of about 3%. First
presented at the International Sweets and Biscuits
Fair in Cologne at the begin ning of 1996, Trans Fair
cocoa and choco late are now avail able in more then
10,000 shops in the country. Honey was intro duced in
Sep tember 1996, and fresh bananas were launched in
thou sands of super mar kets in early 1998. Trans Fair is
readying other major product categories for market
entry. Its marketing efforts have been so successful
that between 1993 and 1996, its annual sales grew
from just over DM 50 mil lion to DM 100 mil lion.
All prod ucts mar keted by Gepa carry the Trans Fair
label. So far the Trans Fair label can be obtained for
coffee, tea, cocoa and chocolate, honey, and fresh
bananas. A growing number of products
simul ta ne ously carry both the Trans fair label and an
organic label. Gepa cooperates closely with two
German organic farm ers’ asso cia tions, Natur land and
Demeter, in organic certification. At present about
25% of Trans Fair coffee, 60% of its tea and 50% of
its bananas are cer ti fied organic. Very little cocoa is
cer ti fied organic. Gepa aims at 100% organic for each
project; about 65% of its food prod ucts are cer ti fied
organic at any given moment.
Gepa GmbH. A limited company, this is the main
import and mar keting organi za tion in Ger many for fair
trade prod ucts. It has pro fes sion al ized the move ment
and today supplies not only non-profit parish sales
outlets but also any marketing channel that seems
suit able for the fair trade aim. Other organi za tions have
entered the fair trade field as well and fair trade
products can now be found in many different retail
out lets, including super- and hyper mar kets.
Gepa’s sales to the con ven tional food retail sector now
account for 15% of its total sales; the sector is Gepa’s
fastest growing market. It con tinues to sell 63% of its
products to activist groups and One World Shops.
Some prod ucts are exported to similar organi za tions in
other European countries. (The European fair trade
associations cooperate in the European Fair Trade
Association.) Gepa’s annual sales amount to DM 55
million. Of this 90% is attrib ut able to food, of which
almost 60% is coffee, 8% tea, 7% chocolate and
sweets, 6% honey and nut spreads; the remainder
Bananas, a case of col labo ra tion between fair trade,
organics and conventional distribution. The banana
story illustrates TransFair’s relationship with organic
farming. For sev eral years, a German banana grower
in Costa Rica had experi mented with using pes ti cides
at a much lower level than was customary in the
banana plantations owned by the big multinationals.
He replaced herbicides completely and cut down on
insec ti cides and fun gi cides but could not abolish them
entirely without losing his crop. He treated his
labourers well and tried to find a way of mar keting to
gain a pre mium for his pro duce. This was very dif fi cult
as his bananas could not be offi cially sold as organic.
How ever, he got Trans Fair involved and he was soon
able to receive a pre mium and find stable cus tomers
among main stream German food dis tribu tors.
In another instance, Rewe AG, a German food
multiple with some 7,000 outlets, wanted TransFair
organic bananas from the Dominican Republic to be
marketed under its organic private label Füllhorn.
Trans Fair inspected pro duc tion and trade con di tions
in the Republic and issued its licence. Today, organic
bananas from the Republic are being imported by
Tradin of the Neth er lands, a com pany that calls itself
the “No. 1 Im porter of Organic Bananas since 1988”.
184
Market segmentation
As has been said, the value of the German market for
organic foods is estimated at approximately DM 3.6
bil lion, or 1.2% of the overall food retail market. Table
8.4 shows a breakdown of the organic trade by main
type of retail outlet. The catering and export seg ments
are not cov ered by the table.
The largest seg ment is the organ ized food retail sector
(Lebensmitteleinzel-handel, LEH, in German) which
has overall annual sales of about DM 230 bil lion, of
which about 78% or DM 180 billion, is real ized by
the seven largest chains. Two-thirds of the LEH
con sist of dis count stores and hyper mar kets, each of
which has a market share of almost one-third and
Table 8.4
which are continuously involved in price wars. The
remaining one-third comprises the classic
supermarkets and other sales outlets, including
tra di tional neigh bour hood stores, which suffer from
the fierce price com pe ti tion. Their supply system and
relevance for organic foods and especially imports
are dis cussed in the sec tion on dis tri bu tion chan nels,
fur ther below.
Direct sales, mainly by farmers, make up 20% of all
organic sales. Catering is becoming important,
especially in the region of Hessen where the local
government has obliged official institutions like
hos pi tals, uni ver si ties and the admini stra tion to offer
at least one organic menu.
Germany: turnover of the organic trade, by main distribution channel, 1997
No. of outlets
carrying organics
(estimates)
Estimated turnover
% share in total
organic market
(DM ’000 000 )
3 600
100
1 700
1 200
35
3 000-4 000
800
24
750
20
2 000
300
9
Organic bakeries
400-500
250
8
Organic butchers
80
60
2
Trade channel
TOTAL
of which:
Natural food shops
Mainstream supermarkets, hypermarkets, discount shops, drugstores
Direct sales, mainly by farmers
Reformhäuser (Reform shops)
Sources: Lebensmittelzeitung 30 (24 July 1998) and trade sources.
Market requirements
This section describes the main product groups
imported into Germany. The major focus is on
products which are not available to German
importers from European sources and/or can be
supplied by developing countries. There are good
import opportunities in Germany, subject to the
limitations described in various sections in this
chapter, espe cially for the fol lowing prod ucts:
European produce is available; also fruit for
proc essing into juices, purées, concen trates, and dried
or frozen prod ucts.
q
q
Grains and cereals like durum wheat, rice,
millet, buckwheat, amaranth, quinoa.
q
q
Vegetables in winter and spring, when no fresh
European produce is available.
q
q
Tropical and subtropical fruits like citrus and
banana and, in much smaller quantities, avocado,
pine apple, mango, etc.; fruit like apples, pears from the
southern hemisphere in spring, when no fresh
Dried fruits and nuts, and by-products.
Herbs, spices and medicinal plants, essential oils.
Fruit juices and fruit preparations, not only of
tropical and subtropical fruit, but also of berries and
other fruits which grow in Germany but of which
production and collection are labour intensive and
therefore expensive.
185
q
Wines especially from France, Italy and Spain
which taste differently from the much appreciated
German organic (white) wines.
q
Oleaginous seeds such as sesame, sunflower,
safflower, pumpkin.
q
Oils and fats for table oil and processing, such as
palm oil for margarine.
q
Honey: demand for imported organic honey is
likely to increase substantially when the EU regulation
on certification is extended to animal products,
including honey. Allos, the dominant importer of
honey for the natural food trade, has its own private
standards for organic honey. TransFair has not placed
much emphasis on the organic certification of this
product but this is likely to change.
q
q
Tea, coffee, cocoa and by-products.
Cane sugar and other natural sweeteners.
It is no longer as easy as it was in the past three
dec ades to export any organic product of any quality
and at any price to Ger many. The exis tence of many
organic items which are typi cally imported does not
imply by any means that automatic entry for these
prod ucts is guar an teed. The German organic market
is characterized by heavy competition and has
become extremely demanding in terms of
quality/price ratios, quan tity and con ti nuity of supply,
logis tics, serv ices and com mu ni ca tion.
Prior to seeking market entry, the exporter should
carry out thorough market research, obtain a basic
knowledge of the German organic market and its
requirements, and understand that it may be
periodically saturated, at least for some products.
This will help to prevent unnecessary
disillusionment.The exporters’ organic certification
(see section on certification, fur ther below) must be
watertight and exporters must ensure that they
comply, not only with the compulsory European
regulation, but also with specific private standards.
To enter the German organic market it is essen tial to
assess one’s assets, particularly one’s USP (unique
selling proposition), i.e. “What can I offer better or
cheaper than others? I can only be successful in the
long run in fields where I know I can com pete.”
The search for a competent importer-partner is
quintessential. The partner should be a successful
com pany, which is effi cient, reli able and sol vent, and
which takes a long-term view rather than that of
making money quickly. The partner should also have
suf fi cient under standing of the spe cific situa tions and
problems facing suppliers in developing countries.
Assis tance in finding and con tacting a partner can be
sought through Pro trade’s Green Trade Net. If fur ther
investment to develop the project or the product is
needed, Pro trade or Fair Trade eV can be contacted
for assis tance.
This section describes the critical role played by
com pe ti tion and pricing in the organic food market in
Ger many and the way in which pricing policy affects
future pros pects for the trade.
For organic prod ucts, the highest growth rate occurs
in the mainstream supermarket channel which is
domi nated by fierce com pe ti tion and price pres sure.
Although the natural food shops, direct on- farm sales
and the catering industry con tinue to grow, the main
expan sion of organic sales is in the mainstream food
market, which is dominated by price competition.
The food market tends to reflect upward and
downward trends in the general economic situation
and, as time goes on, households are spending
pro por tion ally less of their budgets on food. Hard and
soft discount store groups have been constantly
growing and eroding the market shares of the other
super- and hypermarkets. Competition is so fierce,
that large food dis tribu tors are happy when their net
profits exceed 1% of their sales. Organic food has to
develop within this extremely difficult economic
environment; sales have been affected by the
price- cutting tech niques imposed by hard dis counters
186
like Aldi and Lidl on the entire German main stream
distribution.
Pricing, merchandising and communication will be
deci sive in any effort by super mar kets to suc ceed in
mar keting organic food. To date the major strategy of
the super- and hypermarket mul ti ples in dealing with
organic pro duce has often been to put a higher margin
on organic food by comparison with regular food.
They saw a chance to make more money by selling
small quan ti ties of organic food in niche sec tors that
did not seem to be driven as much by competition.
This still applies to most slow-selling organic dry
food ranges in supermarkets. However, the
expanding volume of fresh organic prod ucts entering
supermarkets is changing pricing policy. As stated
earlier, a store has to sell considerablequantities of
fresh pro duce quickly in order to sell it at all, as fresh
pro duce ages rap idly and then becomes impos sible to
sell. To create the necessary demand, pricing must
also be attractive. In addition, there has to be a
coherent assortment, well mer chan dised and clearly
identifiable, and with more than average efforts to
com mu ni cate with the cus tomer. The key mes sage is
therefore that to capture a larger share of the
main stream gro cery channel, the organic industry has
to become more competitive, efficient and able to
deliver the best quali ties at lower prices.
New chal lenges and oppor tu ni ties for the natural food
shops. As the market expands, there is a specialist
market oppor tu nity for smaller quan ti ties of upgraded
organic prod ucts which can sell at higher prices. This
strategy is being adopted by most natural food shops,
and the more suc cessful and bigger out lets are able to
posi tion them selves as spe cialist retailers with a wider
range of organic products, supported by competent
service and advice. The major chal lenge for them is to
develop more effi cient and less costly pro duc tion and
distribution sys tems. How ever, the natural food trade
as a whole is still highly frag mented at all levels and,
even though margins are high, very few participants
make enough profit to pro vide for future devel op ment.
Bankruptcy rates have been high and mergers and
acquisitions will continue until efficient and viable
struc tures are estab lished.
The traditionally fragmented German agricultural
system and its problems in coping with freer trade.
When in the late 1980s the system that protected EEC
agriculture became too expensive to support, and
with GATT and WTO pursuing the policy of free
trade and globalization, pressure was put on the
European Union to open its borders and to reduce
subsidies for farmers. In the last 10 years
con ven tional grain prices in Ger many have fallen to
40% of their 1988 price levels.
Over supply causes price col lapse. Prices, not only of
conventional grain since the late 1980s, but also of
organic grain (par ticu larly wheat) in the 1990s, have
col lapsed to some times less than 50% of their former
levels. The reason for this is that the push of organic
grain pro duc tion grew faster during this time than the
pull of organic demand. According to ZMP, the
Central Price Information Office for Agriculture,
For estry and the Food Industry, the prices of organic
rye, barley, oats and spelt fell by 30% - 40% in the
four years to 1998. The drop for organic wheat was
less spec tacular but was nevertheless con sid er able. In
all cases the drop during this period was even steeper
than that for conventional cereals. Converting to
organic production was subsidized by EU and,
espe cially in the former East Ger many, many larger
farms turned organic. Cheap imports from other
former Eastern block countries, like Romania, the
Czech Republic, Poland and Ukraine, often had a
dev as tating effect.
A more rele vant example for devel oping coun tries of
the effects of oversupply is that of organic vanilla.
Until the mid 1990s Mada gascar was the sole sup plier
and prices were high. To take advantage of the
demand Tonga, Indo nesia, Mexico and other coun tries
started to produce organic vanilla. Very quickly an
under-supply situation turned into oversupply and
prices fell to about half their former level.
The positive side of this devel op ment is, of course,
the move ment of many organic prod ucts away from
their former unre al is ti cally high price levels.
ZMP pro vides cur rent prices for some basic German
organic agri cul tural prod ucts. Con tact details can be
found in annex I.
Balancing increasing supply with demand requires
well-adapted sales channels. When supply exceeds
demand, as has been the case for organic grain, milk
and vanilla in Germany, prices fall. When demand
outgrows supply, the price tolerance rises. With
growth in real demand (not what people say but what
they do and buy) for organic produce, distribution
sys tems become more effi cient and farmers are able
to receive higher organic price premiums. Without
the par tici pa tion of the main stream retail food chains,
the for mi dable growth of German organic pro duc tion
can never be absorbed. It is expected that the
situations of oversupply described above will
dis ap pear in the middle to long term.
These simple truths had not been sufficiently
understood by many organic pioneers in Germany.
Supermarket multiples were seen as a threat rather
than an opportunity by small farmers. To market
organic food to super mar kets was con sid ered by the
organic pio neers to be a sin against their vision of a
better world in gen eral and of organic agri cul ture in
particular. Their view was to keep the organic
movement small but beautiful. This attitude
unavoidably slowed down all efforts to establish
187
appropriate marketing structures as well as a single
organic seal in Ger many, and change is taking place
at a snail’s space.
Considering organic food as a service product
dis rupts organic pricing. The atti tude of con ven tional
super market out lets towards selling organic prod ucts
is critical. Some important chains have damaged
organic price struc tures by car rying organic foods as
service products on which they do not make any
profit. This makes it extremely dif fi cult to raise prices
at a later stage and can therefore cause lasting
prob lems for the trade.
Organic certification and food laws and regulations8
EU Regulation 2092/91
The most impor tant regu la tion for the organic market
is the EU Regu la tion 2092/91 on organic farming and
its amend ments. This regu la tion applies to the whole
of the Euro pean Union and is described in Part I of
this book.
Organic certification for the German
market
In Germany many certifying bodies (private) are
accred ited according to the EU regu la tion. Sev eral of
these are active in the cer ti fi ca tion of organic imports
and the sup plying pro duc tion units. They also pro vide
assistance and supervision for setting up national
certifying bodies in countries outside the European
Union, especially in developing countries. The most
active German certifying organizations abroad are
BCS Öko-Garantie GmbH, Ecocert International,
Naturland Verband, Lacon and INAC (International
Nutri tion and Agri cul ture Cer ti fi ca tion).
The certifying bodies are organized in two groups:
Konferenz der Kontrollstellen (Conference of
Certifying Bodies) which is currently under the
auspices of GfR, and the Arbeitsgemeinschaft der
Kontrollstellen (Working Group of Certifying
Bodies). The chairmanship of these Groups rotates
among their member certifying bodies.
8
In each of the 16 federal States, a delegated
competent authority is responsible for supervising
the activities of certification bodies as well as
authorizing imports from third countries (i.e.
non- members of the Euro pean Union). (One fed eral
State has as many as four dele gated authori ties.) A
working group named Länderarbeitsgemeinschaft
der Öko-Kontrollbehörden (LÖK) coordinates the
activi ties of all com pe tent autho rities.
As indicated earlier, the standards required by
German organic importers are fre quently higher than
those of the basic EU regu la tion. It is there fore often
necessary for imports from third countries to be
inspected by a local German control or certifying
body even if they have obtained equivalency at the
EU level.
Harmonization of EU food laws
Most food laws and regulations are being har monized in the European Union. However, in some
cases per mis sible residue levels (e.g. in baby food),
contaminant or pollutant levels (e.g. aflatoxins) or
micro-organic counts (e.g. of micro-organisms in
spices) are set dif fer ently in indi vidual EU coun tries.
This is such a wide field that infor ma tion rele vant to
spe cific prod ucts should be obtained from com pe tent
com pa nies or con sult ants. Labor Dr Wiertz, an analytical labo ra tory for organic foods, is expe ri enced in
The full names and addresses of many of the organizations and companies mentioned in this section (and throughout the chapter) are provided in
annex I.
188
residue detection even at the low levels needed for
baby food.
non-organic product and makes the use of the
cer ti fied ingre dient com pul sory.
Permissible agricultural ingredients of
non-organic origin
The list of permitted non-organic ingredients is
con tinu ously updated. The list dated 31 July 1998 is
pro vided in annex II to give an indi ca tion of the type
of ingre di ents cov ered.
It may be of interest to exporters to know that some
agricultural ingredients of non-organic origin may
some times be tem po rarily imported into the German
organic sector if sufficient quantities of these
ingredients in certified organic forms are not
available. When enough supplies of a certified
organic ingredient become available, the
Bundesanstalt für Landwirtschaft und Ernährung is
informed; it then withdraws the allowance for the
Since the EU regu la tion on cer ti fied pro duc tion has
now been extended to animal products, it will cover
organic honey as well. This product plays a
sig nifi cant role in the natural food sector and has been
one of three items that does not have to be organic,
water and salt being the other two. Honey has always
been par ticu larly impor tant because of its whole-food
quali ties and its use as a sub sti tute for sugar.
The major suppliers of organic foods to the retail
trade in Ger many are whole salers/packers. The larger
com pa nies tend to import direct from organic pro duction units abroad; others may obtain their supplies
from specialized importers. Major organic food
manu fac turers are often directly involved in organic
projects abroad for the supply of raw mate rials, but
many manufacturers obtain their imported supplies
from importers and spe cial ized proc es sors. The latter
companies provide requirements according to the
manufacturers’ specifications and ensure continuity
of supply.
The major players in the dis tri bu tion of organic foods
in the German market are described below.
and wholesalers
Rapunzel Naturkost AG, with a turnover of DM 70
mil lion, is the largest importer, packer and whole saler
of grocery products. Its wide product assortment
ranges from nuts and dried fruits to cereals and mill
prod ucts, sugar, cocoa and choco late, pasta, tomato
products, oils and fats, spreads and nut butters,
bis cuits, coffee and vanilla. It recently added frozen
food and ice-cream lines. The Rapunzel brand is
named after a girl in a well- known German fairy tale.
Internationally, Rapunzel is one of the leading
companies involved in organic projects in the
developing world; it has sub sidi aries in Turkey and
the United States. Together with Allos, it recently
intro duced the generic organic Le Gourmet brand.
Dennree Versorgungs GmbH, with a reported
turn over of DM 130 mil lion, is mainly active in fresh
pro duce: dairy, fruits and vege ta bles.
Both Dennree and Rapunzel supply specialized
chan nels, as do similar com pa nies like Byodo Natur kost
GmbH (dry prod ucts), and Biogarten Handels GmbH
and its sub sidiary Arche Natur pro dukte GmbH.
Bio-Zentrale GmbH, with a turnover of DM 73
million in 1998 (partly owned by the Cologne-based
Delvena Lebensmittelkontor GmbH, an offshoot of
the sugar company Pfeifer & Langen) owns the
organic brand Gut & Gerne. The brand can be found in
many super market chains in Ger many, including some
multiples like Rewe which have their own private
organic labels. Delvena also sup plies the dry organic
assortment for the private label ranges Füllhorn of
Rewe, Grünes Land of Metro, Bio-Wertkost of Edeka
and Terra Pura of Globus. Delvina is increasingly
involved in the distribution of perishable goods
(including dairy prod ucts).
Alna tura Pro duk tions- und Han dels GmbH sup plies
products (including fresh produce) carrying its
generic label Alnatura to Tegut and to
DM- Drogeriemarkt. It also runs its own retail chain.
Auris Natur kost Ver triebs GmbH mar kets a range of
organic prod ucts under the label BIO.
Rila Feinkost-Importe GmbH & CO KG, based in
Stemwede-Levern, puts together and sells the
Zonnatura assortment, which was originally a
Netherlands brand. However the range has a high
pro por tion of non- organic prod ucts of Reform quality
(i.e. without chemical additives and mostly
unrefined).
Lehmann Natur GmbH and its partner organization
Biotropic are the largest importers/packers and
wholesalers of organic fruits and vegetables
sup plying super mar kets.
Bergquell Agrar-Naturprodukte GmbH & CO KG
supplies a large assortment of fresh produce,
including fruits and vegetables, eggs, meat and
poultry to supermarkets and specialized stores. It is
actively involved in proj ects in devel oping coun tries.
Among the other important fruit and vegetable
packers and wholesalers are Naturkost Schramm,
Landlinie and Ernst Weber Naturkost. The
last- named com pany also car ries dates, seeds, tea and
juices. The baby food manu fac turer Hipp also runs a
fresh fruit and vege table pro gramme.
Additional traders, importers and packers selling to
both specialized and mainstream retail outlets are
Care Naturkost GmbH & CO (grains, seeds, dried
fruits), Grüner Punkt Naturkost GmbH (fruit
prepa ra tions), Georg Rösner Vertriebs GmbH (nuts,
seeds, flakes, dried fruits), Übelhör KG (cereals,
pulses, nuts, dried fruits) and Euro Bio Korn (cereals,
fruits, seeds, sweet eners). Gepa GmbH, described
ear lier in this chapter, imports and dis trib utes coffee,
tea, honey, choco late, nuts, rice and other prod ucts.
Landlinie Lebensmittel-Vertrieb GmbH & CO KG
markets a range of fresh products, including imports
from developing countries, to specialized shops and
supermarkets.
Mühldorfer Naturkornmühle GmbH (commonly
known as Prima Vera) and its sister company, Ceralia
Getreideprodukte GmbH, process, pack and trade in
a large assortment of products, in part imported from
developing countries. Products include rice, millet,
sugar, oleaginous seeds and nuts.
Byodo Naturkost GmbH packs and trades in an
assortment of products (including oils) largely
imported from developing countries.
189
As has been men tioned ear lier, con tact details for all
the com pa nies men tioned in this chapter are pro vided
in annex I.
Food manufacturers
The number of purely organic manufacturers in
Ger many is lim ited. The best known is the baby food
com pany Hipp. By making organic quality its unique
selling poi nt and by insisting on an organic con tent of
over 80% long before the regulations demanded a
higher percentage, Claus Hipp strengthened his
market leadership for wet baby food (in jars), and
obliged other big baby food producers like Alete
(Nestlé) and Milupa (Nutricia) to follow. It is pos sible
that soon all of Ger many’s baby food in jars will be
organic. Hipp employs over 2,000 indi viduals, has an
annual turn over of more than DM 300 mil lion, and
has fac to ries in Aus tria and France. Hipp is pos sibly
the largest organic manu fac turer world wide and has
been instru mental in devel oping proj ects in coun tries
like Costa Rica.
Since 1995 the baby food com pany Gerber in Costa
Rica (a sub sidiary of Gerber USA, itself a sub sidiary
of Novartis Swit zer land, for merly Sandoz) has been
sup plied with organic bananas, not from monocul ture
plantations, but from forest intercropping systems
run by indigenous farmers in the Talamanca
Reservation. In the first years, the Reservation’s
banana purée was exported exclusively to German
baby food producers but Gerber has recently
introduced it to the American market. This project
was started by Milupa, the first conventional baby
food pro ducer to launch an organic line. Even though
nei ther Milupa nor Alete rely on organics as a major
mar keting mes sage, they push organic ingre di ents for
two major reasons. The first is that Hipp has set a
standard for consumer expectations of baby food.
The second has to do with the fact that German food
regulation, by setting maximum levels at 10 ppb
(parts per billion), in effect allows no pesticide
residues in baby food. From 1 January 2000 a similar
regulation will be applicable to the whole of the
European Union. As detection at such low levels is
very difficult and expensive, is not possible at all for
some pesticides and growth regulators, and demands
extensive auditing of the suppliers, it is often more
convenient to go organic.
Südzucker, Germany’s largest sugar group, is
involved in the organic sector through its subsidiaries
Candico in Belgium and Renco in the Netherlands.
190
Other major organic manu fac turers or proc es sors are
listed below:
q
Ludwig Stocker Hopfisterei GmbH, the bread
specialist, processed 15,570 tons of cereals in 1997. It
has an annual turnover of DM 93 million and runs
over 100 retail outlets, mostly in ‘pre-cashier’ outlets
of supermarkets.
q
Döhler GmbH – deals in food ingredients,
particularly those that are fruit based.
q
Kanne Brottrunk GmbH & CO KG – a ‘bread
drink’ specialist. (This drink is derived from
fermented old bread, hence its name.)
q
Neumarkter Lammsbräu – produces 60,000
hectolitres of beer per year and two organic soft drinks.
q
Beutelsbacher Fruchtsaftkelterei – a juice
producer.
q
Voelkel – a juice producer.
q
Lebensbaum Ulrich Walter GmbH – deals with
coffee, tea, spices and herbs.
q
Davert Mühle – handles milling products.
q
Allos Walter Lang Imkerhof GmbH – deals with
fruit and amaranth products, cakes, fruit bars, etc.
q
Bruno Fischer GmbH – a major processor of
vegetarian products such as soy milk, vegetarian
burgers and sausages, and soups.
q
Bauck Demeter Naturkost – handles cereals,
coffee, oils, spreads and specializes in biodynamic
products.
q
Barnhouse Naturprodukte GmbH – deals with
breakfast cereals.
q
Münsterländische Margarine-Werke J. Lölf
GmbH and Margarinwerk Saar – produce margarine.
Lebensbaum, Davert Mühle and Allos have been
instrumental in setting up large organic projects in
devel oping coun tries and their brands are among the
best known in Ger many.
Specialist organic retail outlets
Organic farmers and specialist retail outlets, which
deal exclusively with organic food processing and
trading, continue to hold the lion’s share of
distribution in Ger many, although super mar kets and
other mul tiple food retailers are starting to eat away at
this share. These strictly organic outlets have the
advantage of not being in direct price competition
with the main stream food retailers, of being able to
communicate the principles of organic farming to
their cus tomers and of not depending on only a few
extremely powerful customer companies. Ideology
forms an inte gral part of their product concept. They
have the disadvantage of reaching primarily a core
minority of already convinced or militant organic
consumers.
Natural food shops (Naturkostläden)
and organic supermarkets
There are about 1,700 natural food shops in
Ger many, mostly united in the umbrella organi za tion
BNN (Bundesverband Naturkostwaren). They hold
35% of Ger many’s organic market, equiva lent to DM
1.2 bil lion in sales. These out lets want to supply their
main cus tomers not only basic prod ucts but also any
imag in able food item in organic quality, whether it is
a spice (for example, organic pepper in all its varie ties
is required) or a convenience food with many
different ingredients. However, quite often the
market can absorb only small, sometimes barely
economically viable, quantities. The larger natural
food stores now carry 2,000 or more items.
A key and recent development has been that of
organic supermarkets. The first chain of organic
supermarkets was created by Götz Rehn under his
Alna tura brand which, as early as 1985, formed the
basis for an organic shop-in-the-shop in the Tegut
supermarkets. Alna tura first opened its own organic
super market in the late 1980s in Mann heim and now
runs a total of eight out lets in Mann heim, Karls ruhe,
Freiburg and Darm stadt; these have a gross turn over
of about DM 4 mil lion. Between 280 and 500 square
metres in size, these modern stores have an
assortment of 6,800 articles (including non-food
organic items like clothing, natural cosmetics and
toys) and run small restaurants. Michael Radau’s
Biogarten Naturkost Handels GmbH has three
out lets, two in Osn abrück and one in Mün ster. Dieter
Dreher runs Tausend Körner (620 square metres) and
Arkaden Natur kost (170 square metres), both in Kiel.
In the whole of Germany there are now about 30
organic supermarkets, the newest of which is Basic
(400 square metres) in Munich, a pilot unit for a
franchise system. Whereas some experts forecast
rapid growth to some 150-200 outlets by 2000, the
entrepreneurs mentioned here believe in more
‘organic’ growth. The choice of site, in towns with a
population of at least 100,000, is critical for the
success of a new outlet, as are the competence and
moti va tion of its per sonnel. An invest ment of at least
DM 300,000 and a turn over of over DM 2 mil lion are
also needed. It is believed that the majority of
cus tomers of organic super mar kets are new organic
consumers.
191
estab lish ment and growth of natural food stores in the
1950s and 1960s. Reform shops have a major asset in
their com pe tence in health food advice. A problem for
them are their high prices. Many ill-informed
consumers, who do not know what ‘organic’ really
means, assume that all food sold by Reform shops is
cer ti fied organic and, because they are not pre pared to
pay the pre mium for pro duce in these shops, they are
then inclined to reject organic food as being too
expensive.
Other specialist outlets; catering
Farm shops, food boxes and other
direct selling methods
Direct sales account for about 20% of organic sales in
Germany (see table 8.4). A high pro por tion of these
sales consists of direct farm sales, but during the
1990s new direct selling methods have been
intro duced and have grown fast in popu larity. Food
box or sub scrip tion sys tems (Abo- Kisten in German)
offer consumers the possibility of a weekly home
delivery of a given range of prod ucts (e.g. fruit and
vegetables) at a set price (e.g. DM 30/delivery).
There are now believed to be between 250 and 300
subscription sys tems for organic food boxes, which
usu ally offer fruit and vege ta bles as the main product.
The minimum value per delivery is typi cally DM 25.
The system is run by farmers or by specialized
organi za tions, 40 of which allow for online ordering
via the Internet. The growing importance of home
shopping must not be underestimated and sales are
expected to grow rapidly over the next decade.
Reform shops
Tra di tional health food shops, known as Reform shops
or Reformhäuser in Ger many, have been in opera tion
since 1893. The roots of the Reform Move ment lay in a
reaction to the negative side effects of the Industrial
Revolution, as well as in natural medicine and the
vegetarian movement. Nowa days Reform shops sell
many die tetic prod ucts or prod ucts with health claims,
but no meat or alco holic bev er ages. They have always
stocked organic products and the emphasis was on
whole food (Vollwertkost) in keeping with the motto
“Keep our food as natural as pos sible.” Until the end of
the Second World War organic quality was the rule,
but then the rule became the exception, though the
emphasis on whole food remained. Even with strong
and ongoing devel op ments during the last 10 years or
so, the organic proportion of sales by Reform shops
does not yet exceed 20%. In fact, the rela tive absence
of organic food was the major reason for the
The other specialist companies involved in organic
food processing and trading in Germany include
weekly markets, whole food bakeries, organic
butchers, tofu and other vege tarian product makers,
and catering services for canteens and restaurants.
Catering is rising in importance as an outlet for
organic food, especially in the region of Hessen
where the local government has obliged official
institutions such as hospitals, universities and the
admini stra tion to offer at least one organic menu.
Major retail chains
The growth of organic farming and the shift in demand
for organic prod ucts from a lim ited number of mili tant
or highly moti vated con sumers to a wider seg ment of
the popu la tion con cerned with health and food secu rity
mat ters have made mar keting through the main stream
supermarket channel logical and inevitable. This
channel requires much larger and more continuous
supplies of uniform quality and usually demands
marketing extras from its suppliers. Multiples are
much less tolerant than the natural food stores of
deviations from external quality specifications, are
extremely price sen si tive, and so tightly organ ized that
from the first contact to delivery suppliers have to
per form to the highest stan dards in all ways.
When main stream retailers first entered the organic
field, they had no real under standing of organics and
merely put some products on the supermarket
shelves, which often failed to sell. They failed
because they had no master plan, because their staff
had not been edu cated on mat ters like the ori gins of
the organic products, their legal status, the
phi losophy and mar keting strategy behind them, and
because no in- house or external exper tise was made
available. The result was inadequate and badly
merchandised
organic
assortments.
Their
con ven tional thinking on com pe ti tion, market shares,
easy access to many sources of supply, etc. was
192
incom patible with the method of opera tion of organic
sup pliers. The retailers were con fronted with a lack of
effi cient organic sup pliers, with the excep tion of the
baby food manufacturer Hipp. They had to
understand that carrying organics can succeed only
when lasting part ner ships with organic sup pliers are
built, so that new prod ucts of the right quality and in
sufficient quantities are made available. Moreover
the prices must be such as to allow suf fi cient mar gins
for all involved to make the whole process
sustainable, and the products affordable for the
con sumer. Many existing organic sup pliers refused to
supply supermarkets for ideological reasons, or
because they were afraid to lose their existing
customers. Others did a very poor job because they
failed to understand that the requirements of the
conventional supermarket/grocery trade are much
stricter in terms of external product quality,
con ti nuity of supply, logis tics and price.
This situation gradually changed. Tegut, a
com para tively small and regional super market chain
with 300 outlets and overall food sales of DM 2
billion, was the first multiple really to understand
organics and rapidly became a success in the late
1980s. As early as 1985 Tegut created an organic
shop-in-the-shop concept under the Alnatura brand
and trained and edu cated its staff on organic farming
and ways of communicating the concept to
consumers. Tegut’s organic sales have grown
dramatically and are now estimated to account for
4% of its total sales. The shop-in-shop, often
considered an organic ghetto, has been abandoned
and Tegut has set up an organic bakery.
Table 8.5
Table 8.5 provides some information on the
involvement of Germany’s top 10 food retail
organizations as well as Tegut in the distribution of
organic food.
Rewe, Germany’s largest food supermarket multiple
owns the pri vate organic label Füll horn (‘co rn uc opia’
in Eng lish). Although the share of the Füll horn label in
Rewe’s sales is less than 0.5%, this is equivalent to a
value of about DM 200 million (com pared to a total
turn over of close to DM 40 bil lion), making Rewe one
of the largest distributors of organic products in
Germany. Rewe takes particular care in setting up
organic production programmes. As a consequence,
the Füllhorn organic fruit and vegetable section is
growing rapidly and is likely to make Füllhorn the
fore most organic label. Rewe was also the first major
main stream group to intro duce organic meat, which it
did in collaboration with the farmers’ association
Naturland.
Edeka, no smaller than Rewe but still in the process
of building a more cen tral ized group, has just decided
to launch its own organic pri vate label nation wide.
Aldi, the third largest food market multiple and
discount market leader, has so far carried only a few
organic prod ucts. In one of the smaller regions, it has
replaced con ven tional car rots with organic car rots and
is now selling over 1,000 tons of this product per year.
Metro is the largest overall retailer in Ger many, but
only the fourth largest in food. It owns the Makro
out lets, known in various coun tries around the world.
Metro’s private label for organics is Grünes Land
(Green Land).
Germany: major food retailers and their involvement in organic food sales
Company
Main outlets
Rewe
Minimal, Toom, Rewe
Metro
Edeka
Aldi
Tengelmann
Spar
Lidl & Schwarz
Schlecker
Dohle Group
Globus
Tegut
Real, Extra, Metro, Kaufhof
Edeka, AVA Neukof, E-center, Marktkauf
Aldi
Tengelmann, Kaiser, Grosso
Spar
Kaufland
Schlecker
Dohle, Marktfrisch
Globus
Hawege, Okay, Top Market
Source: Trade information.
a/
Own label/private label.
b/
Manufacturers’ brand.
Organic assortment,
fresh
Own label, dry
Labels
Yes
Yes
Yes
Yes
1 or 2 products
Yes
Various products
A few products
Only baby food
Different products
Yes
Yes
Yes
Yes
No
Yes
Füllhorn, a/
Gut & Gerne b/
Grünes Land a/
Bio-Wertkost
No
Naturkind a/
Yes
Yes
Terra Pura a/
Alnatura b/
193
Tengelmann is the fifth largest food mul tiple and was
the first supermarket chain to launch a completely
organic private label, Naturkind (child of nature). It
was launched nation wide in 1993 and has been heavily
promoted by the owner, Erivan Haub, a keen
environmentalist.
Each of the top five super market mul ti ples has more
than DM 20 billion in annual food sales, but so far
none of them has an organic share of more than 0.5%.
Image has played an impor tant role up to now, but the
super mar kets are expected to step up their efforts to
pro mote organic prod ucts. In early 1998 the regional
supermarket mul tiple Kriegbaum in BadenWürttemberg introduced a line carrying its private
organic label Natur zeit (nature’s time), in coop era tion
with a farmers’ association of Bioland. As Krieg -
baum has recently been sold to Metro, the future of
the line is uncertain. In summer 1998 another
regional supermarket mul tiple, Globus of Saarland
and Rheinland-Pfalz launched its organic private
label Terra Pura with a big mar keting drive. Spe cial
mention should also be made of the DM Droger iemarkt, a national drug store chain with 410 out lets all
over Ger many and some out lets in Aus tria, which has
been selling the Alna tura organic range suc cess fully
for more than 10 years.
In due course organic foods are expected to be
dis trib uted through the new sales chan nels which are
quickly becoming a feature of food retailing in
Ger many. They include gas sta tions, railway sta tions,
cinemas and other lei sure out lets, auto mats and even
banks.
Summary and market prospects
Germany appears to offer tremendousopportunities
for organic pro ducers, both domestic and for eign, for
many rea sons, including the fol lowing:
q
Its population of 82 million is environmentally
aware.
q
6% of its electorate are green voters.
q
Germany is the cradle of organic agriculture and
hosts the General Secretariat of IFOAM as well as
BIOFACH, the biggest organic trade show in the
world.
q
The German import promotion organization
Protrade/GTZ runs the GreenTradeNet Web site, a
formidable tool linking organic farmers in
developing countries with the German market.
The German organic market is second in size only to
that of the United States. In 1998 it had about 8,200
organic farms (1.6% of all farms) and over 400,000
hectares (2.3% of the total agricultural area) which
were organically certified or under conversion. In
1997 organic food sales amounted to roughly DM 3.6
billion, only 1.2% of total food sales. The organic
market is expected to continue growing for many
years, if not at the double digit fig ures of the last 10
years, cer tainly at a rate of 5%-10% per year. This is
remarkable because the general food market is
gloomy and expenditure on food within the
household budget will continue to decline in
impor tance rela tive to expen di ture on other goods.
The key words used to describe food trends for the
year 2000 are convenience, health and enjoyment.
Germany has a long tradition in natural medicine,
cure resorts and health food. The health-conscious
German con sumer increas ingly relates health to food
secu rity and a healthy envi ron ment, a sce nario within
which organic food obviously has very strong
arguments. The organic food sector is discovering
con ven ience foods, including frozen foods and ready
meals, opening up sales far beyond the people who
have traditionally been mainly concerned with
buying “whole food” (Vollwert in German). The
future seems to hold out prom ising pros pects for the
organic food trade. Nonetheless many people feel
that there is, at the same time, reason for serious
concern.
q
Jobs have outstripped environmental awareness
as primary preoccupations and influences spending.
q
Oversupply,
occurring.
structural
or
occasional,
is
q
Oversupply, heavy competition and cheap
imports have devastating effects on prices.
q
Super- and hypermarkets continue to have
problems in marketing organics and often apply
194
conventional purchasing practices.
q
There is, as far as readiness to buy organics is
concerned, a huge gap between what the consumer
says and what he does.
Indeed, the prices of many organic products are
drop ping, some times steeply, because of over supply,
cheap imports, and merciless competition.
Conversion rates are slowing down. Some organic
farmers, as well as traders and other suppliers, are
discouraged. Developing country suppliers are
finding it increasingly dif fi cult to enter the German
market and have to be much better pre pared than in
the past to do so. Some observers are wor ried because
of the tremendous gap between what German
con sumers say about their readi ness to buy organics
and the pre miums they are pre pared to pay com pared
to what they actually do. If people purchased
according to their stated principles the share of
organic prod ucts in total gro cery expen di ture should
be at least 10% instead of the current 1.2%. Other
observers are worried by the fact that core organic
values are being increas ingly eroded by the push of a
growing market and that mini mal istic approaches are
gaining ground on farms, in proc essing plants and in
trade. Social values, including lasting partnerships
from field to shelf, are more and more under attack,
as is the eco logical prin ciple of region ality.
For the near future, as the involvement of the
mainstream supermarket trade increases, it will be
crucial that the organic movement does not squander
its ideological message, which is an integral part of
efforts to improve organic techniques as well quality
issues in general. Price monitoring systems are likely
to be established. Both the specialized and the
mainstream supermarket channels must continue to
improve their organic impact, further lowering the
threshold for the new consumer. These developments
should help to make Germany’s organic future
brighter than its past.
Annex I
Germany: selected addresses
TRADERS/IMPORTERS/
PACKERS/PROCESSORS
Allos Walter Lang Imkerhof
GmbH
Zum Streek 5
D-49457 Mariendrebber
Tel: +49-5445 9899-0
Fax: +49-5445 9899-14
http://www.allos.de
(Honey, fruit preparations, cereals)
Alnatura Produktions- und
Handels GmbH
Darmstädter Strasse 3
D-64404 Bickenbach
Tel: +49-6257 93 220
Fax: +49-6257 932 244
Andechser Molkerei Scheitz
Molkereistrasse 5
D-82346 Andechs
Tel: +49-8152 370 60
Fax: +49-8152 370 690
(Dairy processing and trade)
Auris Naturkost Verbriebs GmbH
D-28091 Bremen
Tel: +49-421 396 0180
(Owns the brand BIO)
Bergquell Agrar-Naturprodukte
GmbH & Co
Klosterhof 5
D-38312 Dorstadt
Tel: +49-5337 92 510
Fax: +49-5337 925 123
E-mail: BergquellNaturhoefe
@t-online.de
(Eggs, poultry, fruits and vegetables,
milk products, dried goods)
Bio-Frost Westhof GmbH
Zum Westhof 6
D-25764 Friedrichsgabekoog
Tel: +49-4839 9101
Fax: +49-4839 9105
(Wholesaler of deep-frozen food)
BIOTROPIC
See Lehmann Natur GmbH
Byodo Naturkost GmbH
Edisonstrasse 3
D-84453 Mühldorf
Tel: +49-8631 32690
Fax: +49-8631 326950
E-mail: byodo-naturkostgmbh@
t-online.de
CARE Naturkost GmbH & Co
Rudolf-Diesel-Str. 30
D-28876 Oyten
Tel: +49-4207 914 444
Fax: +49-4207 7185
(Grain, seeds, dried fruits, nut pips)
Davert Mühle
Ascheberger Str. 2
D-48308 Senden
Tel: +49-2598 6928
Fax: +49-2598 6961
(Cereals, pulses, oils, pasta, rice)
De-Vau-Ge Gesundkostwerk
GmbH
Lüner Rennbahn 18
D-21336 Lüneburg
Tel: +49-4131 98501
Fax: +49-4131187135
http://www.de-vau-ge.de
(Group of organic and Reform
manufacturers, traders and
importers; brands: Granovita, Eden,
Bruno Fischer, Martin Evers and
Linusit)
Delvena Lebensmittel Kontor
GmbH
Linnicher Strasse 48
D-50933 Köln
Tel: +49-221 498 0387
Fax: +49-221498 0399
(Runs the own Gut & Gerne generic
label and organizes several others)
Dennree Versorgungs GmbH
Hofer Str.11
D-95183 Topen
Tel: +49-9295 180
Fax: +49-9295 1850
(Full organic food range, including
Döhler GmbH
Riedstrasse 7-9
D-64295 Darmstadt
Tel: +49-6151 3060
Fax: +49-6151 306339
(Fruit-based ingredients)
Ernst Weber Naturkost
Postfach 75 09 54
D-81339 München
Tel: +49-89 746 3420
Fax: +49-89 746 34222
(Fruits and vegetables, dates,
seeds, tea, juices)
Georg Rösner Vertriebs GmbH
Regensburger Str. 32
D-94315 Straubing
Tel: +49-9421 23619
Fax: +49-9421 81736
(Nuts, seeds, flakes, dried fruits,
almonds)
Gepa GmbH
Bruch 4
D-42279 Wuppertal
Tel: +49-202 266 830
Fax: +49-202 266 8310
(Coffee, tea, honey, chocolate, nuts,
rice, etc.)
Grüner Punkt Naturkost GmbH
Schwanenkirchnerstr. 28
D-94491 Hengersberg
Tel: +49-9901 1842
Fax: +49-9901 1875
(Fruit preparations)
Hipp-Werk
Münchener Str. 58
D-85276 Pfaffenhofen a.d. llm
Tel: +49-8441 757 481
Fax: +49-8441 757 492
(Baby food)
Landlinie Lebensmittel-Vertrieb
GmbH & Co KG
An der Hasenkaule 24
D-50354 Hürth-Kalscheuren
Tel: +49-2233 974510
Fax: +49-2233 9745199
(Trader, packer and importer of
fresh produce)
196
Lebensbaum U. Walter GmbH
Maschstr. 31
D-49356 Diepholz
Tel: +49-5441 98560
Fax: +49-5441 985 622
(Herbs; spices; herbal, fruit and
black tea; coffee)
Lehmann Natur GmbH
Am Churkamp 20
D-47059 Duisburg
Tel: +49-203 932 550
Fax: +49-203 932 5599
(Wholesaler, importer and exporter
of fruits and vegetables)
Mühldorfer Naturkornmühle
GmbH (Prima Vera) GmbH
Mühlenstrasse 15
D-8444 Mühldorf
Tel: +49-8631 37730
Fax: +49-8631 377349
(Processor, trader and importer of
cereals and other foodstuffs)
Münsterländische
Margarine-Werke J. Lülf GmbH
Postfach 1229
D-48720 Rosendahl
Tel: +49-254 7700
Fax: +49-254 77030
(Producer and trader in margarine;
importer of oils and fats)
Naturkost Schramm GmbH
Ludwig-Winter-Str. 6
D-77767 Appenweier
MAJOR RETAILERS
Edeka Zentrale AG
New-York-Ring 6
D-22297 Hamburg
Tel: +49-40 63770
Fax: +49-40 63772231
(Supermarket chain with organic
programme)
Globus Betriebs-GmbH & Co KG
Postfach 1420
D-66594 St. Wendel
Tel: +49-6851 909 912
Fax: +49-6851 909 610
(Supermarket chain with organic
programme)
Metro International GmbH & Co
KG
Postfach 230351
D-40089 Düsseldorf
Tel: +49-211 96 250
Fax: +49-211 962 5271
(Germany’s overall largest retailer)
Rewe AG
Domstr. 20
D-50668 Köln
Tel: +49-221 1490
Fax: +49-221 149 9000
(Dominant supermarket chain)
Tegut Zentrale
Gerloserweg 72
D-36039 Fulda
Tel: +49-661 104 843
Fax: +49-661 104 496
(Supermarket chain distributing
organics)
Rapunzel Naturkost AG
Haldergasse 9
D-87764 Legau
Tel: +49-8330 910 124
Fax: +49-8330 910 139
(One of Germany’s leading
importers and traders in organic
food)
Tengelmann
Handelswarengesellschaft
Postfach 1020
D-45466 Mülheim a/R
Tel: +49-208 5806
Fax: +49-208 6763
(Supermarket chain distributing
organics)
Rila Feinkost-Importe GmbH &
CO KG
Hinterm Teich 5
D-32351 Stemwede-Levern
Tel: +49-5745 9450
Fax: +49-5745 945 139
(Manages the Zonatura brand)
GOVERNMENT OFFICES AND
OTHER ORGANIZATIONS
Übelhör KG Naturkost Imex
Friesenhofen-Bahnhof 23-25
D-88299 Leutkirch
Tel: +49-7567 820
Fax: +49-7567 834
(Cereals, pulses, nuts, dried fruits,
sweeteners)
AGÖL eV
Brandschneise 1
D-64295 Darmstadt
Tel: +49-6155 2081
Fax: +49-6155 2083
(Umbrella organization of the
German Organic Farmers
Association)
ALOG eV
Tel: +49-6322 8666
Fax: +49-6322 8794
http://www.infogen.org
(Data bank on GMO-free
production)
Arbeitsgemeinschaft der
Kontrollbehörden Ökologischer
Landbau
Tannenstr. 24 b
D-40476 Düsseldorf
Tel: +49-211 456 6456
Fax: +49-211 456 6452
(State working group of control
authorities)
BCS ÖkoGarantie GmbH
Cimbernstr.21
D-90402 Nürnberg
Tel: +49-911 491 73
Fax: +49-911 492 239
(Worldwide control and certification)
Bioland Bundesverband
Kaiserstr. 18
D-55116 Mainz
Tel: +49-6131 239 790
Fax: +49-6131 238 7927
(Umbrella group of Bioland farmers’
associations)
Bundesanstalt für Landwirtschaft
und Ernährung
Adickesallee 40
D-60322 Frankfurt/Main
Tel: +49-69 156 4480
Fax: +49-69 156 4444
(Issues list of allowed non-organic
ingredients)
Bundesverband Naturkost
Naturwaren (BNN)
Robert-Bosch-Str. 6
D-50354 Hürth
Tel: +49-2233 963 3811
Fax: +49-2233 963 3810
(Association of natural food retailers
and wholesalers)
Bundesverband der Produzenten
Ökologischer Produkte
Robert-Bosch-Str. 6
D-50354 Hürth
Tel: +49-2233 9633833
Fax: +49-2233 9633830
(Association of natural food
manufacturers)
Demeter Bund e.V.
Brandschneise 2
D-64295 Darmstadt
Tel: +49-6155 84690
Fax: +49-6155 846911
(Biodynamic association)
Ecocontrol Ecocert GmbH
Sulte 20a
D-37520 Osterode
Tel: +49-5522 951 161
Fax: +49-5522 951 164
(Inspection and certification)
Fair Trade eV
Bruch 4
D-42279 Wuppertal
Tel: +49-202 648 9221
Fax: +49-202 648 9235
(Assistance in fair trade)
GfR Gesellschaft fur
Ressourcenschutz
Prinzenstr.4
D-37073 Goffingen
Tel: +49-551 586 57
Fax: +49-551 587 74
http://www.gfrs.de
(Group of certifying bodies)
Green Trade Net
Tel: +49-69 811 228
Fax: +49-69 824 684
E-mail: oekologiemarketing
@compuserve.com
http://www.green-tradenet.de
(Protrade/GTZ’s international
database on organic production and
trade)
IFOAM
Ökozentrum Imsbach
D-66636 Tholey-Theley
Tel: +49-6853 5190
Fax: +49-6853 30110
http://www.ecoweb.dk/ifoam
(Head office, International
Federation of Organic Agricultural
Movements)
INAC
Rudolf-Herzog-Weg 32
197
D-37213 Witzenhausen
Tel: +49-5542 911 400
Fax: +49-5542 911 401
Labor Dr Wiertz
Stenzelring 14b
D-21107 Hamburg
Tel: +49-40 752 7090
Fax: +49-40 752 70935
(Analytical laboratory for organic
goods)
Lacon GmbH
Hanns-M.-Schleyer-Str. 10
D-77656 Offenburg
Tel: +49-781 55802
Fax: +49-781 55812
http://www.lacon-institut.com
Naturland - Verband für
naturgemässen Landbau e.V.
Kleinhaderner Weg 1
D-82166 Gräfelfing
Tel: +49-89 854 5071
Fax: +49-89 855 974
http://www.naturland.de
(Certification and control)
Ökoprüfzeichen (ÖPZ) GmbH
Rochusstrasse 2
D-53123 Bonn
Tel: +49-228 9777700
Fax: +49-228 9777799
(Company licensing the use of the
national organic logo)
ÖkoWelt Veranstaltungs GmbH
Industriestrasse 12
D-91186 Büchenbach
Tel: +49-09171 - 9610-0
Tax: +49-09171 - 4016
http://www.biofach.de
(The world’s largest organic food
fair; has many exhibitors from
developing countries)
Protrade/GTZ
Dag- Hammarskjöldweg 1 -5 D
D-65760 Esch born
Tel: +49-6196 793 155
Fax: +49-6196 797 414
http://protrade.gtz.de/protrade
(Assis ts in the devel op ment of
pro duc tion and trade in organic
products)
Stiftung Ökologie und Landbau
(SÖL)
Weinstr. Süd 51
D-67098 Bad Dürkheim
Tel: +49-6322 8666
Fax: +49-6322 8794
(Publisher on organic agriculture)
TransFair Germany
Remigiusstr. 21
D-50937 Köln
Tel: +49-221 942 0400
Fax: +49-221 942 04040
Verlag Gesund Essen GmbH
Am Eichwald 24
D-64860 Schaafheim
Tel: +49-6073 748 251
Fax: +49-6073 748 299
http://www.naturkost.de
(Publisher on natural food)
ZMP - Zentrale Markt- und
Preisberichtstelle GmbH
Rochusstrasse 2
D-53123 Bonn
Tel: +49-228 977 7173
Fax: +49-228 977 7179
http://www.zmp.de
(Central Price Information Office for
Agriculture, Forestry and the Food
Industry)
Annex II
List of approved ingredients of non-organic origin
(31 July 1998)
Rum
750 l
Ready-made spice mix
300 kg
Apricot powder
875 kg
Corned flavouring broth (vegetarian)
Blackcurrant powder
875 kg
Freeze-dried cheese
100 kg
Apple powder
875 kg
Soya croquant
400 kg
Pineapple powder
875 kg
Lemon juice powder (freeze-dried)
40 kg
Hibiscus extract
440 kg
Pineapple pieces (freeze-dried)
30 kg
Fennel extract
420 kg
Apricot pieces (freeze-dried)
30 kg
Herb extract
350 kg
Kiwi pieces (freeze-dried)
50 kg
1400 kg
Redcurrant (freeze-dried)
Egg protein (dried)
Lemon powder (spray-dried)
Strawberry pieces (freeze-dried)
70 kg
255 kg
Glass noodles
Bamboo sprouts
1 312 kg
30 kg
200 kg
1 200 kg
Blackcurrants (freeze-dried)
77 kg
Curry, hot
704 kg
Cherries (freeze-dried)
40 kg
Curry, mild
107 kg
Pepper, white
70 kg
Crystal protein
Pepper, green
24 kg
Protein meringue
Pepper, green, pickled
24 kg
Ginger
Nutmeg, milled
24 kg
White pepper
Mace, milled
24 kg
Curcuma
405 kg
Horseradish powder
47 kg
Safflower blossom
30 kg
Coriander smoke spice
24 kg
Cats-foot blossom
27 kg
Paprika extract
12 kg
Strawberries (freeze-dried)
375 kg
Paprika pieces (red, dried) 9 x 9 mm
150 kg
Paprika, hot
Source: Arbeitsgemeinschaft der Kontrollbehörden.
3 kg
30 kg
30 kg
252 kg
96 kg
Chapter 9
THE NETHERLANDS
Although its domestic market is small and has been
devel oping slowly until recently, the Neth er lands is a
major producer, importer and re-exporter of fresh
organic fruits and vegetables to the fast growing
northern Euro pean mar kets. It is a sig nifi cant sup plier
to many EU markets of bulk organic foodstuffs
imported from outside the region. SKAL, the
country’s only designated organic inspection
authority, has offices in seven inter na tional loca tions
and currently operates certification services in over
30 coun tries.
This chapter focuses on product sectors in which
Netherlands importers play an important European
trading role (high lighting key com pa nies) as well as
on the state of devel op ment of the domestic organic
market.
Supply and demand
Domestic production
The Neth er lands is a major agri cul tural pro ducer and
trader and plays a leading role in the import and
re- export of a wide range of con ven tional pro duce for
the European market. Local production methods are
extremely intensive and the emphasis is on
horticulture (especially potatoes, vegetables, flowers
and bulbs), and animal hus bandry (par ticu larly for the
pro duc tion of dairy prod ucts, beef and pork). The scale
of organic production is small, accounting for just
under 1% of agri cul tural land usage in 1997. Until very
recently its rate of devel op ment lagged behind that of
most other European countries, despite a strong
awareness of the environment which has made the
country highly innovative and successful in
con ven tional food pro duc tion. Until the mid 1990s the
prospective commercial returns from the slow
growing domestic demand for organic foods and the
lack of substantial financial support deterred many
pro ducers from con sid ering organic con ver sion.
with approxi mately 21,000 hec tares were reg is tered
with SKAL, the offi cial organic inspec tion authority.
About 10% of this area was under going con ver sion.
The fig ures for 1998 are given below. There were 587
proc es sors in the same year. In the spring of 1999 the
1000th farmer was reg is tered.
Neth er lands: cer ti fied organic agri cul ture, 1986-1998
Number of farms
1986
1991
1995
1996
1997
1998
2 724
9 227
12 789
14 334
21 000
20 270
Sources: SKAL and the Central Statistics Bureau (CBS).
A number of key fac tors are stimu lating a more rapid
rate of con ver sion to organic pro duc tion:
q
Since 1995 the rate of conversion to organic
production has accelerated. The number of farms
increased by under 10% in 1995, by 17% in 1996 and
by 20% in 1997. At the end of 1997 790 organic farms
278
439
561
656
790
956
Utilized area
(hectares)
Government policy. At the end of 1996 the
Ministry of Agriculture launched a concerted
initiative to stimulate organic agribusiness (the Plan
van Aanpak Biologische Landbouw). About f. 60
million were allocated for a four-year period to
200
provide increased subsidies and fiscal benefits for
conversion, to support marketing and quality
improvement schemes and to educate and inform the
public about organic foods by means of national
publicity campaigns on television and radio. In 1999,
an additional f. 9 million were allocated to support
organic farming.
q
Growth in domestic consumption. Demand
through the main retail channel (specialist organic
shops) rose by 10% - 15% in 1997, and most of the
major supermarket chains, whose sales were limited
mainly to potatoes, carrots and onions until 1995, are
increasing their involvement in organic food sales,
especially vegetables and dairy products;
q
Rising demand for exports. The Netherlands is
the largest exporter of organic vegetables in northern
Europe.
In 1996 the value of the country’s organic agricultural
output at producer prices was over f. 112 million.
Livestock-based production is the most significant
segment and accounted for about 40% of the total
output in that year. In 1998, about 28% of the organic
acreage was for fruit and vegetable production, 24%
was for arable crops, 39% for livestock production
and 9% for mixed production.
CHAPTER 9 – THE NETHERLANDS
5,000 hectares. Natuurweide, a dairy cooperative,
covers about 70% of all organic dairy farmers and
distributes products on their behalf to the major
processors.
The entrance of the Greenery into the organic sector
in early 1999 is changing the organic landscape. A
big player in the conventional sector, the Greenery
runs nine auctions and groups 7,500 conventional
vegetable producers.
In the livestock sector, conventional pork production
is undergoing structural changes in the face of
overproduction, a sharp drop in prices, and heavy
environmental problems. One of the largest pork
producers, Sturko Meat Group BV, has began to
establish an organic programme. The country’s
biggest dairy company, Campina-Melkunie, has
acquired the two main organic dairies, Zuiver Zuivel
and De Zwaluw; the former concentrates on milk,
yoghurt, butter and fresh cheese, the latter on hard
cheese. The second largest dairy company,
Friesland-Coberco (brand name: Natuur Best),
opened a fully organic plant in Drachten.
Finally the country produces organic seed, which is
of great importance to the organic sector.
Imports
Of the livestock farming output, the most important
product groups are dairy produce (50% of the total),
beef (30%), eggs (11%), lamb and poultry meat. In
the vegetable farming sector, which covers 827
hectares, the products include carrots, cabbage of
different types, chicory, leeks, beetroot, celery and
many other items.
The national agricultural statistics categorize
potatoes and some other products like onions as
‘crops’. In this category therefore potatoes for human
consumption account for over 33% of the output,
wheat 26%, seed onions 18%. The remainder
consists largely of seed potatoes, maize, lucerne,
onions, sugar beet and marrowfat peas. There were
5,114 hectares under crops in 1996.
Over 90% of the country’s output of fruits is made up
of apples; pears are the only other fruit of any
significance. About 209 hectares are planted to fruit
trees.
The dominant producer of organic grain and
vegetables is Coop Nautilus, a cooperative of about
75 member farmers working a total organic area of
The Netherlands does not collect official statistics on
the production, import and export of organic foods.
The trade in certain product groups is substantial in
comparison to that of other EU markets, but makes
up only a tiny percentage of the volumes traded of the
corresponding conventional foodstuffs. The
Netherlands is a sizeable importer of organic fresh
fruits and vegetables, grains, cereals, dried fruits, nuts
and seeds, coffee, tea, spices and herbs.
All types of fresh fruits and a wide range of
off-season vegetables are imported. The main
suppliers are producers in other EU, Mediterranean
and eastern European countries because of their
physical proximity and ease of access to the market.
The main imports from other sources are off-season
and exotic products, for which demand is increasing
rapidly.
Southern European countries, especially France,
Italy, Spain and Greece, are significant suppliers of
cereals, nuts, dried fruit and herbs. Outside the EU,
Turkey is the major source, providing raisins,
currants, figs, apricots, plums, almonds, hazelnuts,
walnuts, seeds, lentils, chickpeas, bay leaves, etc.
Among the other important supplying countries
around the Mediterranean are Israel, Egypt, Morocco
and Tunisia. North America is also a well-developed
source, especially for cereals, seeds, pulses, raisins
and nuts.
Imports from central and eastern Europe have grown
substantially in the last five years. Important products
include buckwheat, millet, wheat, other grains and
cereals, berries, fruits and vegetables, herbs, apple
juice concentrate, dried fruit, nuts, honey, oil-seeds,
wine, coffee substitutes etc. Significant suppliers
include Hungary, Poland, the Russian Federation,
Slovakia, the Czech Republic and Romania.
Supplies of organic produce from many developing
countries, especially in Asia and Latin America, are
also making an increasing impact. Most imports are
delivered in bulk for packing and/or processing in the
Netherlands before distribution to Netherlands and
European organic trade buyers. The list to the right
gives an overview of key sources mentioned by
Netherlands importers. It does not aim to be complete
(the number of suppliers and certified organic
products is increasing all the time) and there is no
official statistical information available.
201
Cashew nuts
Brazil, El Salvador, India, Mozambique,
Turkey
Cocoa
Belize, Bolivia, Brazil, Dominican Republic
Coconut
Dominican Republic, Sri Lanka
Coffee
El Salvador, Guatemala, Mexico, Nicaragua
Dried fruits
Burkina Faso, Guinea, Morocco, Sri Lanka,
Togo, Tunisia, Turkey
Fruit, processed
Israel, Latin America, Sri Lanka
Fruits, fresh
Algeria, Argentina, Bolivia, Brazil, Chile,
Costa Rica (bananas), Dominican Republic,
Egypt, Guatemala, Honduras (pineapple),
Israel, Madagascar (lychees), Morocco,
Puerto Rico (banana puree), South Africa,
Tunisia, Turkey, Zimbabwe
Grains, cereals
Egypt, India, Turkey, Latin America
Ground-nuts
Argentina, China, Mexico, South Africa
Hazelnuts and
walnuts
Turkey
Honey
France, Hungary, Mexico, New Zealand,
United Republic of Tanzania
Palm oil
Benin
Pine nuts
Pakistan
Pistachio nuts
Islamic Republic of Iran
Raisins
Turkey
Rice
India, Myanmar, Pakistan, Sri Lanka,
Thailand
Sesame seed
Central and South America, Mexico, El
Salvador, Burkina Faso, Uganda, Paraguay,
China, Malawi, Sri Lanka
Soya beans
Argentina, Brazil, China, Paraguay,
Spices and herbs
Argentina, Bolivia, Brazil, China, Dominican
Republic, Egypt, Guatemala, India, Indonesia,
Madagascar, Malawi, United Republic of
Tanzania, Mexico, Morocco, Peru, Comoros,
Sri Lanka, Uganda, Zimbabwe
Sunflower seed
Argentina, China, Egypt, Paraguay
Tea
China (green tea), India, Sri Lanka, United
Republic of Tanzania, Viet Nam
Vegetables, fresh
Egypt, Ethiopia, Israel, Kenya, Morocco,
Tunisia, Senegal
Exports
Organic traders in the Netherlands are significant
exporters of the following products:
q
Vegetables. Three quarters of exports are
domestically produced, especially potatoes, carrots,
onions, other root and leafy vegetables. The
remainder consists of re-exports of imported
off-season vegetables.
q
Fruits. About 80% of exports are re-exports of
fruit imported from sources all over the world. (In
1996, the Netherlands exported a total of 1.4 million
tons of conventional fruit.)
Key supplying developing
countries/areas
Imports
traders in organic spices and herbs in northern
Europe.
q
Processed organic foods. About half of the
consumer-packed products manufactured in the
Netherlands is exported.
q
Dairy products (mainly cheese). About one
quarter of domestic production is exported.
q
Grains and cereals. Although the domestic
output is small, there is a significant re-export trade in
grains from southern and eastern Europe, Latin
America, and Asia (rice).
q
Spices and herbs. A major company based in the
Netherlands is one of the most important specialized
Belgium, Denmark, France, Germany, Sweden,
Switzerland, the United Kingdom and Japan and the
United States are the most important export markets.
Retail sales
Organic foods account for a very small share of total
grocery expenditure in the Netherlands. No official
calculations are made, but it is estimated that the
202
sector was worth f. 700 million-f. 800 million at retail
prices in 1997, which is equivalent to about 1% of the
total grocery market.
The organic movement and general demand for
healthier foods grew steadily in the 1980s, and
Netherlands traders began to play an active role in
sourcing organic foods worldwide for sale in the
Netherlands and other European countries. Between
1990 and 1996, while retail trade in neighbouring
markets such as Austria, Denmark, Germany,
Switzerland and the United Kingdom expanded
rapidly, retail sales in the Netherlands grew at an
estimated rate of only 2%-3% per year. This was
despite the increasing pro fes sion ali za tion of the sector
and the major contribution by the country’s organic
farmers and import- export traders to sup plies for other
Euro pean mar kets. The major fac tors that have lim ited
growth are discussed below.
q
High prices. Netherlands consumers spend a
smaller percentage of their disposable income on
food than their EU neighbours and price is a key
influence on expenditure on groceries. The price
premiums for most organic foods were extremely
high, owing to the dominance of the retail trade by
specialist shops and the fragmented and costly
distribution required to service them.
heavily in environmental protection, individual
consumers were slow to support cleaner food
production by paying the premium prices required for
organic foods.
The year 1996 marked a turning point in the country’s
organic trade: retail sales increased by 3%-5% in that
year and most estimates agree that the rate of increase
accelerated to between 10% and 15% in 1997 and
1998. The key changes that are stimulating organic
sales are described below.
q
The expansion of supply and more efficient
distribution of dairy and vegetable produce. This is
directly linked to increased promotion through
supermarkets and through the subscription system for
vegetables (called the groentenabonnement in
Dutch). In 1998 Odin, the most important supplier,
sold approximately 27,000 vegetable and fruit boxes
a week under a subscription scheme; by early 1999
weekly sales had risen to 30,000 boxes. Odin plans to
include meat in its subscription scheme. The key
factors stimulating consumers to buy organic quality
are taste, freshness and a reasonable price premium
(today a 20% - 30% premium over the conventional
alternative is considered the maximum acceptable). It
is estimated that over two thirds of all purchases of
organic foods are of fresh produce, i.e dairy products,
fruit, vegetables and meat.
q
The marginal involvement of the mainstream
grocery trade, including the dominant supermarket
chain Albert Heijn. Most supermarkets carried a very
small range of organic vegetable products: potatoes,
carrots, onions and sauerkraut. For organic foods to
attract the man in the street as a regular customer a
comprehensive product range in the supermarkets is
essential. Specialist organic stores attracted mainly
convinced customers. Their prices were perceived as
being too high and their product assortment was too
limited to be convenient to the many people who
wanted to do one-stop shopping. It should be noted,
however, that Albert Heijn launched an organic
assortment under its own brand in 1998 and is rapidly
building up a full range of products.
q
Increased penetration into supermarkets. At least
three-quarters of the country’s supermarkets now
stock some organic vegetables and they are slowly
expanding the range carried. Sales of dairy products,
particularly from Zuiver Zuivel and De Zwaluw (both
of which have been acquired by the main Netherlands
dairy group Campina-Melkunie), are developing
successfully in a growing number of stores. Albert
Heijn now sells organic potatoes in all its 630
supermarkets, accounting for about 5% of all potatoes
sold; organic milk, yoghurt, butter, cheese and a wide
range of dried goods are available in 650 branches.
Other supermarket groups that are actively introducing
organic products are Konmar, Dekamarkt, Vomar and
De Nieuwe Wemeand C1000.
q
Consumer attitudes. Despite the appearance of
the official EKO label on all certified organic
produce in the Netherlands since 1993 and
considerable promotional efforts by the Biologica
foundation and the trade, consumers were still
confused by the wide variety of food products which
were supposedly more environmentally friendly and
healthier than their conventional alternatives. While
on a public level the Netherlands was investing
q
Uptake of new product groups by supermarkets.
While the introduction of new product ranges has
heretofore been limited, there are signs of change. In
February 1998 Albert Heijn announced the
introduction of fresh wholemeal bread, eggs, orange
and apple juice. Later in the year wine, coffee, tea,
vinegar, jam, biscuits and chicken were added.
Konmar already sells a similar range of foods.
203
q
More efficient distribution to specialist organic
shops. Rationalization is gradually taking place both
in the wholesale and in the retail trade (see section on
distribution). Bigger stores, some of which are now
supermarkets in size and layout, and the growing
range of products stocked are helping shops to attract
more casual consumers – the number of persons
buying at health food shops in 1997 rose by 8%.
q
Intensified government initiative to stimulate
organic production and consumption through the
Plan van Aanpak (see above). According to a recent
survey by CBL, the central organization for the
grocery trade, the number of consumers aware of
organic foods and familiar with the EKO symbol rose
from only 55% in 1993 to 95% in late 1997.
Despite these very positive trends, the domestic
market for organic produce, and especially for
imported foods, remains small. Its development will
depend strongly on the rate of expansion by
supermarkets into a fuller range of products and the
ability of suppliers to offer organic produce to
consumers at price premiums they are prepared to
pay. Although supermarkets are introducing more
organic products, the stores do not generally have a
marketing concept specific to organic foods, and their
primary motivation is profitability per square metre,
service to customers and preserving a publicly
correct image.
Consumer behaviour
One major difference between the Netherlands and
most other EU markets where organic spending has
increased at a much faster rate has been the failure of
selective and occasional purchasers to increase their
expenditure across a wider range of organic food
products. Despite fast growing awareness and
knowledge of the environment and a conspicuous
public policy, the average consumer does not relate
food purchases to any principles on production
methods. In general, the more time, money and
changes in habit are required of customers, the less
environment friendly their behaviour is likely to be.
This is because product availability, ease of access,
product prices and habitual preferences in regard to
quality, appearance and taste remain critical factors.
and organic farm ers’ mar kets. ‘Sele ctive pur chas ers’
buy some organic prod ucts regu larly and a high propor tion of con ven tional foods at super mar kets. Price
and the price/quality ratio are sig nifi cant ele ments in
their purchasing decisions; inconvenience, lack of
availability or unacceptably high prices are factors
which can make them revert to main stream prod ucts.
‘Occasional purchasers’ are quite well informed
about organic quality but tend to do one-stop shopping at large super mar kets and only occa sion ally purchase organic products on impulse. They expect
organic produce, first, to meet exactly the same
requirements as conventional foods in terms of
appear ance, taste, quality and fresh ness and, second,
to be avail able at their one- stop outlet. Moreover, the
price pre mium they have to pay must be per ceived as
reflecting real extra value in terms of quality.
The Netherlands food market can be divided roughly
into five consumer segments:
The major factors which influence consumer demand
for organic foods are briefly analysed below.
Consumer group
% of all consumers
Heavy users of organic food
Selective purchasers of organic food
Occasional purchasers of organic food
Non-purchasers aware of organic quality (as
represented by the EKO label)
Non-purchasers unaware of organic quality
(as represented by the EKO label)
1
4
34
55
Sources:
estimates.
Landbouw-Economisch
Instituut
5
(LEI);
trade
‘Heavy users’ are con sumers who, as far as pos sible,
buy only cer ti fied organic quality at health food stores
Value for money. It is said that the Netherlands
consumers’ first loyalty is to their purse: the high
pre mium prices of many organic foods have been a
major obstacle to the growth of sales. ‘Heavy users’
place top pri ority on the growing method and origin
of their food. However, most other consumers
considering shifting from conventional to organic
quality need to be con vinced that the pre mium they
pay will guar antee them supe rior taste and fresh ness
as well as envi ron men tally friendly pro duce. They do
not expect to give up any of the quality fea tures they
are used to in conventional products, such as
204
uniformity of shape, colour, unblemished
appearance, cleanliness and availability of different
varieties of the same product. The current new
accel era tion in the Neth er lands market is taking place
in those product sec tors where these needs are being
met, especially dairy products and fresh vegetables.
Pota toes are the most suc cessful organic product sold
and have an estimated market share of 5%. Fresh
vege ta bles are proving instru mental in attracting new
organic consumers – 60% of subscribers to the
vege table abonnement system are people who do not
visit organic food shops regu larly.
Interest in health matters. The traditional diet is a
fairly healthy one, including a high proportion of
fresh fruits, potatoes, vegetables, dairy products,
meat, fish, wholemeal breads, etc. As in most western
countries consciousness about the positive
contribution that a balanced diet can make to good
health, longevity, physical fitness and the prevention
of sickness and disease has been an important
stimulus to growing purchases of health foods.
Consumers are overwhelmed by the different terms
(eco-, bio-, green, natural, functional, light, low-fat,
low-salt, gluten-free, etc.), symbols and brands used,
all implying healthier, more naturally produced
foodstuffs. On an individual basis they do attach
importance to the natural preservation of foodstuffs,
limited processing and the absence of artificial
additives, flavours and colours for their own personal
health, but the majority do not consider the purchase
of certified organic foods the only way of meeting
this need. The astounding success of the Montignac
range of health food products (by the end of 1997
their weekly retail turnover was averaging f. 200,000
and the Montignac diet book was the best selling
non-fiction book title of the year with sales of
370,000 copies) and the rapidly increasing sales of
food supplements in the Netherlands illustrate this
view. The promotion of the single EKO label for
certified organic products has increased consumer
understanding and confidence in the origin, quality
and composition of organic foods. Moreover, the
publicity and discussion of various food
controversies in the last few years (BSE, pig disease,
use of growth hormones, genetic manipulation of
soya beans, etc.) have contributed to rising distrust of
some conventionally produced food and encouraged
consumers to purchase guaranteed organic quality.
Attitude to protection of the environment. The
envi ron mental aspects of prod ucts are a major issue in
all European countries and, in addition to price and
quality, are a key deter mi nant of the legal accept ability
of all food stuffs for sale. The Neth er lands is one of the
leading EU countries in terms of implementing
legislation and regulatory measures to protect the
environment. Consumer awareness is high and is
reflected clearly in areas like car pur chasing, rub bish
collection and energy saving. The link individual
consumers make between food production and its
effect on the envi ron ment is less clear – pri ori ties such
as price, taste, appearance and convenience often
weigh more heavily than environmental arguments.
Con sumers are con fused by the dif ferent schemes and
sym bols used for envi ron men tally friendly foods and
do not support the need to take the ‘costly’ step of
purchasing certified organic produce. Several
examples of these schemes are briefly described
below.
q
Since 1995 the Netherlands Ministry of Envi ronment has awarded a mark, the Milieukeurmerk,
for foodstuffs that are environmentally the least
polluting prod ucts of their kind.
q
Many individual supermarket groups have
introduced ‘clean’ logos and terms to indicate
minimum usage of fertilizers and pesticides, e.g.
Aarde en Waarde (Albert Heijn), Groene Kikker
(Aldi) and milieubewuste teelt, which means
‘environmentally conscious cultivation’.
q
Fair trade prod ucts, launched in the Neth er lands
in 1988 (the Max Havelaar label) and subsequently
marketed on a large scale in many other European
countries, are widely recognized. Several fair trade
product groups like coffee, cocoa and bananas have
an impor tant niche market. Sustain able agri cul ture is
a primary aim of the fair trade move ment but cannot
necessarily be directly identified with (certified)
organic production, which is its ideal form.
Never the less fair trade and organic issues do tend to
converge, and a growing number of products, like
coffee and bananas, carry both EKO (organic) and
Max Havelaar (fair trade) certi fi ca tion.
Demographic and socio-economic factors. Typical
purchasers of organic foods are persons between 25
and 50 years old, who have higher than average
income and education levels. They tend either to live
on their own or to come from households where both
parents earn an income and want the best and
healthiest food that money can buy for their children.
This target group in the Netherlands comprises some
1.3 million persons. The reasons that have been given
for the failure of this group to buy more organic
produce are:
205
q
They lack real knowledge of organic products
and the presentation in shops does not make organic
foods easy to recognize;
radio are informing the public about organic foods
and the EKO symbol as a guarantee of organic
quality.
q
q
They can buy only a limited range of organic
foods at supermarkets;
q
They do not visit specialist health food shops,
which are perceived as meeting mainly the needs of
heavy users and people with special dietary
requirements.
Over the last two years this situation has changed
considerably, as the government-backed promotional
efforts of Biologica and the trade have increased
consumer awareness and the more widespread
avail ability of dairy and vege table pro duce has started
to obtain results. Also, the growing product assort ment
avail able in organic food shops makes them attrac tive
to more con sumers. The eco nomic boom and the high
level of economic confidence have stimulated an
overall increase in con sumer spending.
Availability and convenience. Like most northern
European consumers, Netherlands consumers are
used to buying their groceries at large modern
supermarkets, which offer the convenience of
one-stop shopping, a huge variety of products,
com peti tive prices and year- round avail ability. Most
consumers of organic products with some
understanding of the principles of cultivation and
pro duc tion will accept some incon ven ience in terms
of a smaller choice and (non- seasonal) lack of supply.
However, particularly in the case of casual
consumers who tend to compare organic products
more directly (at face value) with the alternative
con ven tional foods, con ven ience and avail ability are
highly important. Many natural food shops are
currently too small to offer the wide assortment
required. The entry of main stream super mar kets and
the larger spe cial ized self- service organic food shops
into the cost-effective and bigger-scale dis tri bu tion of
organic foods is essen tial to attract more cus tomers.
Promotion. Important initiatives, backed by gov ernment policy and funding (f. 60 million until the year
2000), are now in place to stimu late the devel op ment
of organic cultivation, processing, distribution and
con sump tion. Among these ini tia tives are:
The umbrella organization Biologica is working
hard to motivate supermarket organizations to increase
their uptake of organic products and to stimulate
consumer interest through many types of publicity.
q
A broad coalition of public organizations,
including CBL (the central organization for the
grocery trade) and the Consumentenbond
(consumers’ association) are supporting individual
and collective organic promotional campaigns.
q
More and more provinces are stimulating
organic production and distribution on a project by
project basis. For example, the North Holland
province is subsidizing the distribution of vegetables
by subscription.
q
So-called green financing schemes make it
possible for individuals to earn tax-free dividends on
investments in approved environmentally friendly
projects and for organic farmers to borrow capital at
lower interests.
Market segments and end-users
While this study concerns a small niche of the overall
grocery trade, it encompasses the whole range of
food products. Only general comments on market
segments can therefore be made.
The retail trade is ultimately the main outlet for
imported organic foods, although much produce
imported into the Netherlands in bulk undergoes
primary processing and packaging before sale to the
consumer. The proportion of produce used for further
manufacturing depends on the product group, as is
indicated below:
q
Fresh fruits and vegetables: primarily for direct
consumer consumption, but also for processing.
q
Processed fruits and vegetables: juices,
conserves, pulp, purée, soups, pizzas, baby food, fruit
yoghurts or desserts.
q
Higher subsidies are available for the conversion
of agricultural land to organic production.
Dried fruit: about three quarters of the total
volume goes to the bakery trade; the remainder is used
for the production of muesli and consumer snacks.
q
q
q
National publicity campaigns on television and
Edible nuts: mainly for the industrial production
206
of peanut butter, other nut pastes, sauces, bakery
products and snacks.
q
Grains and cereals: used by the bakery trade
(mainly for baking bread, utilization in biscuit- and
cake-making is not substantial); by consumer packers
for retail sale; and for the production of animal feed.
q
Pulses: mainly for consumer packing and the
retail trade.
q
Coffee, tea: mainly for retail. Catering and
institutional use is small but growing.
q
Herbs and spices: usage is about 60% for retail
and consumer consumption, and 40% for industrial
purposes (for the production of soups, ready meals,
etc.). The industrial segment is growing.
q
Oil-seeds: mainly for the industrial production
of margarine, cooking oil and bread. Oil-seeds have
some use as consumer snack foods.
q
Honey: mainly for consumer retail.
Although domestic demand is fairly small, the
Netherlands is a significant primary processor of
organic agricultural produce, because of the active role
played by a number of large international traders. They
import raw produce, which is processed (inspected,
cleaned, graded, sorted, blended, roasted, packed, etc.)
into a form suitable for direct sale to consumers, for
food manufacturing or for re-export to other European
markets. It is estimated that over 80% of imported
organic products is re-exported. The Netherlands is
thus a major trader in grains, cereals, pulses, nuts,
herbs and spices, oil-seeds, coffee and tea.
At the end of 1997 there were 480 certified organic
traders, packers and food processors in the
Netherlands, 17% more than in 1996. A wide range of
food products is manufactured for the local market
and for export. Important categories include dairy
products (milk, yoghurt, butter, cheese), vegetable
products (conserves, juices, concentrates), nut pastes,
bakery products, cereals and baby food. The
importance of the food industry as an end-user of
organic foods is growing in relation to the two other
sectors, because consumers, both local and in export
markets, are looking for an assortment of processed
foods similar to that available from conventional
production. A key development in the last two years
has been the rising involvement of the mainstream
grocery trade in the sector and the growing number of
mainstream processors adding organic production
lines to their factory operations. Many of the new
registrations are for the organic departments of
conventional food companies, rather than for
specialist organic businesses.
The catering and insti tu tional sector for organic foods
is tiny but growing. Organic coffee and tea are
regularly available to employees in a number of
government departments, banks, provincial offices
and town halls, and catering com pa nies have started
to offer organic menus as a service in company
res tau rants and can teens. About 600,000 indi viduals
eat their midday meal on company premises. The
asso cia tion for cooks using organic ingre di ents now
has 70 members, of which half are top-level
restaurants and the other half are institutions
(health- care insti tu tions, homes for the aged, etc.) and
canteens. One major catering company, Marfo,
sup plies ‘nat ural gour met’ organic meals to the Swiss
national air line, Swis sair.
Market requirements
This section describes the main product groups
imported into the Netherlands and lists the most
important items within each group. The major focus
is on products which are not available to importers
from European sources and which can be supplied by
The Netherlands, as producer, importer and
re-exporter, plays a major role in the conventional
European fresh fruit and vegetable trade. Its traders
are also significant importers of organic fruits and
vegetables for distribution not only to the local
market but also for re-export to many European
countries. Consumers are used to the availability of a
wide range of produce in all seasons, and there is
growing demand for off-season fruits and vegetables
and exotic fruits. National consumer sales of organic
fruits and vegetables grew by over 30% in 1997, and
the rate of increase is expected to be sustained, owing
to the rising uptake by supermarkets and the success
of the subscription system.
Fruit. The average consumer ate 75 kg of fresh fruits
(conventional) in 1996. The most popular fruits are
apples and oranges, which together account for about
half of consumption, followed by bananas and
mandarins. Only about 3 kg of exotic fruit are
purchased; kiwi fruit, pineapple and mango are the
most important, but there is increasing interest in more
exotic items like lychees and passion fruit. Only apples
and, to a lesser extent, pears, prunes, cherries, melons
and various berries are produced domestically, so all
types are imported and over half of imports are
re-exported. The main import requirements from
non-EU sources are:
207
How ever, as demand grows for an increasing variety
of processed organic foods, larger supplies of
vegetable and fruit ingre di ents will be required. The
food industry is the main end-user. The most
impor tant items which can be sourced in devel oping
countries are fruit pulp, purée and juice concentrate
for reprocessing into juice and fruit ingredients for
proc essed foods (e.g. baby foods, fla voured yoghurts,
desserts and ice-cream). Single-strength juices are
usu ally less inter esting because, in the final analysis,
they cost more to transport than concentrated
products. Fruit concentrates are also important
sweet ening agents in organic food proc essing and in
domestic cooking.
Tropical fruit: bananas, mangoes (the red
varieties are more popular than the green),
pineapples, papayas.
Tradin, a major organic trader, imports from devel oping coun tries the fol lowing frozen and/or con centrated items: acar illo purée, agave con cen trate, apple
concentrate, apricot purée, banana purée, banana
slices, frozen bananas, guava purée, mango pulp,
orange juice, orange con cen trate, papaya purée, passion fruit juice, pear juice, pineapple juice, tomato
con cen trate, and soft fruit purées and con cen trates. (A
more complete list of products traded by this com pany is given in Annex IV.)
q
Dried fruits and edible nuts
q
Off-season fruit: citrus fruit (oranges,
mandarins, grapefruit, lemons), apples, pears, kiwi
fruit, avocado, grapes, melons;
q
Vegetables. The average inhabitant consumed
nearly 60 kg of fresh vegetables (excluding potatoes)
in 1996. Consumption is dominated by domestically
grown products like cauliflower, carrots, tomatoes,
cucumbers and leafy vegetables. A large share of
imports originate in other EU countries. The main
products which could be of interest to exporters from
developing countries are: peas and beans, capsicum,
courgettes, eggplants and artichokes.
It is essential that poten tial sup pliers of organic fruit
and vege ta bles realize that organic cer ti fi ca tion is only
one con di tion that fresh pro duce must meet in order to
be accept able for sale in Euro pean mar kets. Importers
will specify precisely the product profile, quality
standards and packaging/labelling requirements
against which each delivery will be inspected. An
unblem ished external appear ance is essen tial. One of
the main obsta cles to sup plying Neth er lands importers
lies in the trans port and storage of fruits and vege ta bles
which must be in keeping with organic regu la tions and
which must ensure that the products reach the final
con sumer in a top-quality con di tion.
Processed fruit and vegetables
Demand for imports of proc essed goods is cur rently
much smaller than demand for fresh produce.
Dried fruits. Imports total about 1,000 tons yearly
and are intended mainly for the domestic market. Key
items are raisins (about two-thirds of the total),
currants, prunes, apricots, dates, apples and figs.
Demand for tropical items is small but growing, and
is mainly for pineapple chips, banana chips, papaya,
mango and guava. The bakery trade is the main
end-user and demand has recently been stimulated by
one major organic bakery commencing production of
vacuum-packed raisin and nut breads for export.
Other end-uses are consumer retail packs, breakfast
cereals and muesli and snacks.
Edible nuts. Imports are for the local market and for
re-export. The Netherlands has the highest per capita
consumption of nuts in the European Union. The
major import product is shelled ground-nuts (which
make up an estimated three quarters of the total),
which are used in the production of peanut butter,
snacks, sauces and meals sold both domestically and
in export markets. Indonesian and Chinese cuisine
have a strong place in the population’s eating habits
owing to the country’s historic links with the Far East.
Coconut, in flaked and desiccated form, shelled
sweet almonds, hazelnuts and walnuts are the next
most important items, primarily for the bakery trade
208
but also for the production of muesli and other
processed foods. Demand for other nuts, especially
cashew nuts, pistachios, Brazil nuts, pecan nuts and
pine nuts is growing.
One major importer of organic dried fruits and nuts,
Horizon Natuurvoeding, dominates the Netherlands
(and the Belgian) market. Horizon is one of the key
partners in the Good Food Foundation, a cooperative
venture established by European organic companies to
stimulate, establish, subsidize, develop and run organic
cultivation projects for dried fruits, nuts, seeds and other
products, primarily in Turkey but also in Benin, El
Salvador, Mozambique, Sri Lanka and Uganda.
The Foundation’s licensee importers in other major
EU markets have a controlling share of the market for
dried fruits and nuts in France, Germany, the United
Kingdom and Scandinavia. It has been estimated that
Good Food together with the two major German
organic traders (Rapunzel and Morgenland), control
about 80% of the EU trade in organic dried fruits and
nuts. Horizon produces pastas under three brand
names (Horizon, Monki and Jori) and supplies
organic bakeries and consumer-packed products to
wholesalers.
Grains, cereals, pulses and seeds
Netherlands plays a significant role in the trade in this
product group, importing from sources worldwide.
Over 80% of its imports are re-exported to Belgium,
Denmark, Germany, Sweden, the United Kingdom
and other European markets. Imports are mainly of
bulk raw products – cleaning, sorting, quality control,
milling and (bulk) packing are carried out according
to the customer’s requirements before re-export.
Grains. The most important are wheat, oats, barley
and rye, for which southern and eastern Europe are
the main sources. Other items are amaranth,
buckwheat, maize, millet, quinoa, which are
generally imported from the Americas, and durum
wheat, which originates mainly in Italy (Sicily). Flour
millers and bakers are the major customers for grain.
Because of the entry of mainstream bakers and
supermarkets into the supply of organic bread and
factory expansions planned by existing bakers,
demand in the Netherlands is expected to increase
considerably in the near future. Manufacturers of
cereal-based foods and packers of grains and muesli
for the retail trade are also important users. Typical
basic ingredients for muesli are oat flakes, barley
flakes, wheat flakes, raisins, hazelnuts, rye flakes,
sunflower seeds, walnuts, almonds, dried apple and
currants. There is rising demand for many other
additional ingredients for their distinctive flavours
and colours, e.g. roasted buckwheat, cashew nuts,
sesame seeds, banana chips, dried pineapple and
papaya, coconut, dried apricots, and unrefined sugar.
Rice. The inhabitants of the Netherlands are
traditionally potato-eaters, and households spend
about five times more on pota toes than on rice every
year. However, changing eating habits and the
increasing popularity of all types of international
cuisine are stimulating rising demand for rice and
pasta. Over 80% of the rice con sumed is long grain,
of which more than half is white. There is
fast- growing demand for bas mati and Thai rice. The
major end use is in retail packs for sale to con sumers,
but use in ready meals and baby food is expanding.
Imports are mainly of husked rice for processing in
the Netherlands. Re-exports are sizeable and a
substantial part of the re-exported rice is ready
milled. Organic rice cakes are also a popular product,
manufactured in the Netherlands for domestic
con sump tion and for export, par ticu larly to Ger many.
Pulses. The main pulses con sumed are locally grown
lentils, split peas, and white and brown beans.
Important import items for the home and re-export
markets are aduki beans, black beans, chickpeas,
flageolets, kidney beans, lentils, mung beans, soya
beans and yellow peas. Soya beans are the most
impor tant product. Demand for organic soya beans is
growing rap idly, and has been boosted espe cially by
recent scares arising from the non-differentiation
between traditionally grown and genetically
manipu lated soya beans. IFOAM basic stan dards do
not permit the use genetically modified organisms.
Moreover, under EU food laws, the presence of
genetically modified ingredients in foodstuffs must
be clearly indicated on the product labelling. The
Netherlands is a major importer of soya beans for
processing into oil (for use in mayonnaise, salad
dress ings, mar ga rine, coffee whit eners, etc.), pro tein
for human consumption (meat substitutes, sauces,
imitation dairy products, desserts, sweets, etc.),
animal feeds and for crushing/semi-processing
before re- export.
Oil-seeds, edible oils and fats. Apart from soya,
mentioned above, the main seeds required are
sunflower seed, sesame seed and, in smaller
quan ti ties, pumpkin seed, saf flower seed and poppy
seed. Imports of sunflower seeds are significant
because of its use in polyunsaturated oils and
margarine, which are widely used for commercial
and domestic cooking; supply is dominated by
European sources. Sesame seeds are imported
primarily for use by bakers in or on bread, and in
limited quantities for producing cooking oil.
Pumpkin seeds are required as a snack product.
Import demand for edible oils is small except for
olive oil (mainly from Spain and Italy), and palm oil.
Because of the high risk of rancidity and loss of
quality, most seeds are imported for crushing and
further processing in the Netherlands.
Coffee. The Neth er lands is a nation of coffee drinkers
and per capita consumption is over 8 kg of coffee
beans (about 175 litres) per year. The main demand
(about three- fourths of the total) is for ara bica coffee
and nearly all imports are of green coffee, because
coffee blenders need constantly to supply their
cus tomers with the same fla vour, aroma and quality
under a named brand. The various coffee types
blended together may come from a number of
different sources, according to availability, quality,
harvest levels, etc. A considerableproportion of the
bulk organic coffee imported into the Neth er lands is
re-exported following cleaning, blending, roasting
(the taste requirements of individual EU markets
vary), grinding and pack aging in branded or pri vate
label consumer retail packs. Demand for organic
coffee, now increasing at about 10% per year, is
expected to continue growing at a healthy rate,
stimu lated by increasing use in insti tu tional catering,
by the successful promotion of Max Havelaar fair
trade coffee (although it is not all certified organic,
Max Have laar coffee now accounts for over 3% of all
coffee consumed in the Netherlands) and by the
introduction of organic coffee on to supermarket
shelves.
Tea. Netherlands consumers drink an annual
average of 83 litres of tea per person, which makes
them the third largest consumers of tea in Europe
after the Irish and the British. Black tea dominates
and four types of tea account for 75% of organic
demand: Earl Grey, India (Ceylon tea), low-tannin
tea and Darjeeling. As in the mainstream trade,
demand for single-origin teas and for flavoured teas
(e.g. cinnamon, forest fruit, lemon, tropical fruit,
lavender, lemon grass, aniseed, etc.) is growing. A
high proportion of tea is purchased as tea bags
(packed in boxes containing 10 or 20 tea bags of
1.75 grams). Loose tea is packed in 100 gram bags.
Tea is mainly imported loose in chests, but there is
some growth in imports in consumer packing (from
209
India and Sri Lanka).
The efficiency and output of existing suppliers of
organic tea and coffee are improving rapidly,
according to Netherlands trade sources. These
sources say that the best opportunities for first-time
suppliers are likely to be in new and unusual
varieties.
Herbs and spices. Usage of spices and herbs is
heavier in organic food preparation than in
con ven tional food prepa ra tion and proc essing owing
to the many alternative (artificial) flavourings and
additives also used in the latter sector. Household
usage currently accounts for about 60% of
requirements, but demand is growing faster in the
food proc essing and catering seg ment. The entry into
force on 1 January 1998 of a stricter EU regu la tion on
the permitted usage of non-organic ingredients in
cer ti fied organic prod ucts has stimu lated an increase
in requirements. According to EU Regulation
2092/91, certified organic foods may contain a
maximum of 5% of approved non-organic
agricultural ingredients, including spices and herbs;
the organic foods with such con tent are referred to as
95% prod ucts.
The major European importer and developer of
organic herb and spice projects in source countries
worldwide is located in the Netherlands. Euroherb
Bio BV, established in 1989, is a joint venture
between Piramide, the Netherlands market leader
with an estimated 90% of total sales, and
Lebensbaum Krauter, the most important distributor
of organic herbs and spices in Germany. The
company cooperates with producers of organic
herbs, spices, tea, coffee, sugar and cocoa products
in many developing countries, providing
consultation on growing, processing and
certification, as well as contracting to import the
resulting organic produce.
Euroherb imports about 200 base products and
expects demand to increase by 10% - 15% annually
over the next few years. Pepper is the most
significant spice import; the other important items
are paprika, coriander, cinnamon, ginger, nutmeg,
mace, caraway seed, cloves, cumin seed and
turmeric. The key dried herbs are parsley, marjoram,
thyme, bay leaf, oregano, sage, rosemary, basil,
mint, tarragon and dill. Because of the climatic
conditions required for production, a high
proportion of spice imports is sourced in developing
countries. The main suppliers of dried herbs are
210
southern and eastern Europe, Egypt, Turkey,
Morocco and Latin America.
q
Honey and other sweeteners. Organic honey is traded
widely, not only as a spread but as a natural sweetener
in domestic cooking and in food manufacturing.
Because it is a natural food, Netherlands consumers,
even people whose grocery purchases are mainly
certified organic foods, have not to date placed great
importance on approved organic quality for honey.
The main requirement is for polyflora honey, which
accounts for three-quarters of sales; clover, acacia
and sunflower honeys are also popular. Organic food
consumers buy a far wider variety of types of honey
than mainstream consumers, including such flavours
as buckwheat, rapeseed, heather, lavender, thyme,
rosemary and eucalyptus. Supermarket honey is sold
mainly in 450- and 500-gram jars but organic food
customers tend to favour bigger containers of 900 1,000 grams. For re-export to Germany, 2.5-kilogram
jars are also popular.
Demand for dairy products is among the fastest
growing. They are supplied primarily by domestic
producers; some supplies are obtained from
neighbouring EU countries.
q
There is a small but increasing demand for meat,
stimulated by consumer worries about BSE, pig
disease, salmonella and growth hormones. Supplies
are provided by domestic producers.
q
Agro Eco, a leading Netherlands organic
consultancy agency, is working on several organic
fish and seafood projects, both in the Netherlands and
abroad.
q
Imports of manufactured food products for the
retail trade are sourced mainly in other European
countries, the United States and Japan.
q
According to two specialist organic importers, De
Traay and De Rit, demand for organic honey is
rising, par ticu larly from German and Scan di na vian
customers. De Rit was planning to launch a new
range of five types of certified organic honey from
New Zealand in 1998. Within its stan dards for the
certification of animal-based products, SKAL has
laid down conditions for certification of honey
producers and honey, but there are as yet no
har mo nized EU regu la tions.
Demand for certified organic honey from food
manufacturers has been increasing since EU imposed
the compulsory use of certified organic ingredients in
January 1998. It is important for exporters to take
account of the fact that the price-quality ratio must be
attractive as processors would otherwise replace
honey with alternative sweetening products, such as
cane sugar and molasses.
Other products. Other product sectors, although
perhaps significant in demand terms, are less relevant
as sectors for export development by producers in
The expanding livestock sector has a growing
demand for organic animal feeds. These are pro duced
in the Netherlands using both local and imported
grains, cereals, soya beans, etc. However, organic
feeds are also imported (and re-exported) by
Netherlands traders; examples of import
require ments are saf flower cakes and pel lets, sesame
cakes, and sun flower cakes and pel lets.
q
Interest in organic cut flowers and pot plants is
small; an initiative by the Netherlands flower
auctions to promote organic products was abandoned
in 1997 because sales failed to grow towards the
target 3% share of the mainstream market. However,
the project is likely to be revived. There is also a
growing interest in certified wood and wood
products.
q
The production of organic seeds and plants is
promoted by several seed companies. Koppert BV is
one of Europe’s most important suppliers of biological
traps for biological pest management, bumblebees for
pollination and other important aids to organic
production, generically called biological systems.
Organic certification according to Council
Regulation (EEC) 2092/91 is only one of the many
requirements for attaining import acceptability in the
Netherlands and other European countries. Demand
for organic produce is expanding fast among new
consumers, who are used to buying a huge variety of
211
high-quality foods. Their readiness to pay premium
prices is influenced not only by the guarantee of
certified organic quality but also by the availability of
foods which at least match the conventional
alternatives in appearance (which should be
unblemished), size, variety, taste, uniformity, colour,
absence of extraneous matter, etc.
Against the background of the food safety and quality
standards strictly regulated by the European Union
and the individual re-export markets, Netherlands
importers clearly specify the quality standards
required per product, according to the specifications
of their client retailers and food processors.
Relationships with new suppliers in developing
countries almost always commence on the basis of
imports of bulk agricultural produce which has
undergone very little processing. As the relationship
and trade develops it is quite usual for the exporter to
start carrying out more value-adding processes prior
to exporting the merchandise to Europe. It was in this
way that Turkish organic producers developed into
suppliers of consumer-packed dried fruits and nuts,
India and Sri Lanka into sources of tea, and Egypt
into a source of ready-packed herbs.
Many European food manufacturers prefer to obtain
supplies from well-known Netherlands, German and
other European importers according to their
individual specifications rather than to import direct
from developing countries. Some Netherlands traders
play a crucial role in certain product sectors by
importing raw materials, carrying out basic
processing and delivering to food producers organic
food ingredients meeting strict quality specifications.
Besides being able to produce the item required, a
pro spec tive sup plier in a devel oping country must be
capable of delivering that product in the condition
specified in the contract or agreed on the basis of
samples. Netherlands trade sources have indicated
that logistics (appropriate packaging, quality
preservation during transit, storage, transportation)
fre quently pres ent the major obstacle to a suc cessful
export trade in organic foods. Many of the
instruments available to mainstream food exporters
for quality preservation cannot be used by organic
suppliers because they are disallowed by
environmental
protection
and
certification
regu la tions. One example of a logis tics problem cited
during the research for this study was that of an
excellent organic honey suitable for certification
produced by a cooperative in Africa, which the
importer could not buy because of the absence of
food- quality metal drums for storing and trans porting
the honey from the cooperative to the port of
shipment.
A number of Netherlands organic traders are active
not only in the import/export trade but also in
working directly with new conversion projects in
developing countries. They provide consultancy and
advice on the requirements of specific European
market sectors and on obtaining certification, which
is based on their first-hand experience with other
similar projects. Most importantly, they contract to
buy and distribute the produce as soon as suitable
organically certifiable supplies are available.
Competition and prices are discussed mainly in Part
Two of this survey. Owing to the huge diversity of
products covered, it is not possible to give any
specific information on prices and margins. The
mark-ups at each level are strongly influenced by
such factors as the type of product, the processing
activities undertaken, the volumes involved,
available supply, competitive products, packaging,
and promotional activities carried out. Both prices
and margins are considerably higher for organic
foods than for the conventional articles and this has
proved to be one of the major obstacles to growth in
consumer sales in the Netherlands. Increased
volumes of output by producers and more efficient
distribution, as in the case of organic potatoes,
vegetables and dairy products, which are now
distributed through supermarkets, make economies
of scale possible and so reduce the premium charged
to consumers.
As prices and margins vary considerably for different
products and can fluctuate strongly, it is essential to
have continuous access to up-to-date price
information. An important source of information for
exporters is their importer or business partner in the
Netherlands. The major wholesalers of organic foods
publish detailed price lists which give recommended
retail prices and trade discounts.
212
In the Neth er lands, EU Regu la tion 2092/91 is implemented through national legislation enti tled Decree
on the Agricultural Quality of Organic Production
Methods, and concomitant regulations (Landbouwkwaliteitsbesluit and the Land bouwkwal iteits regeling biologische produktiemethoden). This
legislationdesignates the organization SKAL as the
sole official inspection body for organic farming in
the Netherlands. SKAL’s certification mark, EKO,
indicates that the product car rying it origi nates from
organic cultivation and has been processed with
organic methods. Prod ucts bearing the symbol have
satisfied both EU Regulation 2092/91 and SKAL
stan dards. Where EU har mo nized regu la tions do not
yet exist, as in the case of tex tiles and for estry products, cer ti fi ca tion and inspec tion and the granting of
the EKO symbol are monitored according to SKAL
standards, which are based on IFOAM standards.
When harmonized EU standards come into force,
these SKAL standards will no longer apply. Import
licences for organic products from outside EU are
issued by the Min istry of Agri cul ture, Nature Manage ment and Fish eries.
SKAL is one of the main organizations in the
European Union offering inspection and certification
services to organic producers worldwide. Outside the
Netherlands it has its own offices in Germany,
Turkey, Hungary, Sri Lanka, Suriname, Peru and
India, and currently operates in over 30 countries (see
list in Annex II). SKAL inspects and certifies not only
to EU Regulation 2092/91 but also to the often
stricter standards of major trade groups in Europe.
Among these groups is the German organic trade
association BNN, which represents organic retailers
and wholesalers in Germany and lays down its own
standards for admitting food products into its
approved list; it commands great respect in the trade.
Since 1996 SKAL has been accredited by the Dutch
Council for Accreditation which means that it meets
the requirements for certification institutions set out
in EU norm EN 45011.
All foodstuffs offered for sale in the Netherlands
must comply with the Food and Drug Act
(Warenwet). This is a general law and largely reflects
EU legislation. Specific decrees and regulations
provide norms for some individual product groups.
Exporters are strongly advised to obtain accurate and
up-to-date information from Netherlands importers,
who are ultimately responsible for ensuring the
compliance of their produce with national legislation.
Most usually, imported organic foods pass from a
specialized importer to a processor/packer, then to a
wholesaler and thence to a retail outlet, which
makes the final sale to the consumer. Food
manufacturers receive their imported supplies either
direct from importers or through specialized
processors.
distribution throughout Europe fast and efficient.
Despite the small size of the domestic organic
market, a number of specialized Netherlands traders
have become major importers and suppliers of
organic produce to northern European markets,
especially Germany, the United Kingdom, Belgium,
Denmark and Sweden. This reflects the pivotal role
which the Netherlands plays as one of the major
traders in agricultural produce in the world and as a
gateway to Europe. The port of Rotterdam, with its
concentration of trading companies and distribution
services and its excellent trade infrastructure, renders
The functional distinctions between different types of
distribution channel are often not clear because many
companies undertake different levels of intermediate
processing, according to the type of product and the
end use.
In each of the major product groups a few specialized
organic traders tend to dominate imports and these
companies are the key (potential) customers for
foreign exporters. They import on their own account
and sell to packers, processors and food
manufacturers. Importers often also perform other
functions, such as that of:
q
Packer: packs goods in standard bulk packs;
213
q
Refiner: subjects goods to further processes (e.g.
sorting,
cleaning,
grading,
reconditioning,
micro bio logical inspec tion, quality control);
importer of organic dried fruits, edible nuts and seeds
and a manufacturer of nut spreads, pastes and organic
syrups. (See page 208, dried fruits and edible nuts.)
q
q
Wholesaler: supplies bulk-packaged goods to
the catering and retail trade;
q
Processor: prepares products as ingredients for
the food industry according to specification;
q
Re-exporter: engages in re-exporting, a major
activity, mainly to other European markets;
Eosta Int. BV. This is a major importer of
organic fresh fruit and vegetables from sources
worldwide, especially South Africa, Egypt, Argen tina and many other countries in North Africa
(Morocco, Tunisia), East Africa (Kenya, Madagascar) and South America. About 70% of its imports
are re-exported to other European countries; the
remainder is distrib uted to super mar kets and wholesalers in the Neth er lands.
q
Developer: cooperates with growers or
producers in origin countries in the process of
seeking entry into the European market; activities
cover certification requirements, quality standards,
market information, etc.
In organic terminology the word ‘processor’ is
frequently used as a generic word for packers,
primary processors and food manufacturers alike.
Among the leading Netherlands organic traders are
the following:
q
Tradin Organic Agri cul ture BV. A major trader
specializing in organic imports (all certified
according to EC Regulation 2092/91), primarily
grains, rice, seeds, nuts, dried fruit, oil- seeds, animal
feeds, oils, beans, coffee, cocoa, sweet eners, bakery
fat, dairy products, fresh bananas (imported by its
sister company Traba nana BV), and frozen fruit and
concen trate. It had a turn over of about f. 28 million in
1997. Its largest suppliers are Latin America, North
America, Eastern Europe and China. It has offices in
Bulgaria and Honduras. It exports to Europe and to
the rest of the world.
q
Simon Levelt BV. This is a specialist coffee and
tea trading company with its own roasting, blending
and packing facilities. It helped initiate the
establishment of Max Havelaar and the fair trade
mark, and is the largest Netherlands importer of
organic coffee and tea. In 1997, it traded about 200
tons of organic coffee and about 50 tons of organic tea.
It supplies 95% of the requirements of the Netherlands
retail trade and has significant exports of
consumer-packed coffee and tea to distributors and
supermarket chains in a number of European markets.
The other important traders and packers include:
Ariza BV (processed fruits and vegetables); De Traay
(honey), De Rit (honey), Doens Food Ingredients BV
(grain, pulses, oil-seeds, spices, horticultural seeds,
animal feed), Green, Fresh & Anywhere (fresh fruits
and vegetables), Koffiebranderij G. Peeze BV (coffee
and tea), Neuteboom BV (coffee and tea), ODIN
Holland CV (fresh fruits and vegetables) and Trouw
BV (buckwheat).
Relevant addresses are given in Annex I.
DO-IT BV. This is a special ized distributor of a
wide range of processed organic foodstuffs
throughout Europe. Its products include pasta, tomato
products, nuts and Mexican goods. Greenfood
Inter na tional BV is a trading company special izing in
the import and export of organic cereals and, to a
lesser extent, seeds, nuts, pulses and dried fruit. Both
companies are subsidi aries of Mulder Natuur vo eding
BV.
Imported organic produce may be processed and
(re)packed by the importers themselves or sold to
specialist companies for further processing. The
mixing and blending of products like muesli, dried
fruits, nuts and coffee, and their packaging in
consumer packs for the retail trade are important
activities. The packaged range of goods may carry
the packaging company’s own brand or the private
label for organic products of a major wholesaler,
chain of shops or supermarkets.
q
Wholesalers
q
Because sales of organic foods to Netherlands
consumers take place primarily through small
specialist shops, the wholesale trade is an important
q
Euroherb Bio BV. (See the description of this
company on page 209, subsection on herbs and
spices.)
Horizon Natuurvoeding BV. This is a large
214
distribution link between the large number of small
producers and suppliers on the one hand and the retail
trade on the other.
Wholesale distribution of fresh produce, especially
fruits, vegetables, dairy products and bread, is carried
out by a few major companies. For imported fruits
and vegetables the most significant are Odin, BICK,
van der Steen and Kroon. Udea BV is the principal
wholesaler for dairy products, frozen food and fresh
vegetarian products.
The distribution of dry organic foods in the
Netherlands is dominated by one major wholesaler,
Natudis, which has a turnover of f. 120 million and
has 130 employees. The company controls an
estimated 80% of the dry goods market in the
Netherlands and is also the second most important
wholesaler in the Belgian market after
Reformwaren/Nonkels. Natudis is the exclusive
distributor of numerous imported products carrying
foreign brands; it also sells a full range of
private-label products through its subsidiary
Natuproducts. The raw materials for the latter
products are bought in bulk and packed in-house or
are processed and packed under contract by a third
party. Among the important private labels are
Ekoland, Akwarius (EKO and Demeter), Fertilia and
Molenaartje.
The other main national wholesalers supplying dry
groceries are De Nieuwe Band, De Rit and Terrasana.
Faan Zuidhorn supplies cheese.
Retail outlets
Organic and health food shops are the most
important consumer outlets for organic foods in the
Netherlands. They are losing some market share to
supermarkets, especially in basic vegetables and
dairy products, but retain control of an estimated 65%
- 70% at the market. Over half of their sales are fresh
produce, and they dominate the retail distribution of
all dry groceries. The cooperative NWO, established
by the specialist retail and the wholesale trade in
1997, aims to expand sales by improving efficiency
in the sector and reducing the price difference
between organic and conventional foods. About
one-third of its stores, mainly former members of the
De Natuurwinkel, Gimsel and De Groene Winkel
groups, were initially holders of NWO franchises. In
due course, they and other NWO franchisees will all
trade under the name ‘De Natuurwinkel’ and will
adopt a common product style and assortment and
carry out common promotional activities. Central
buying of the common product assortment and
private label foods will be carried out by an
independent division, Natural Trade Services.
De Natuurwinkel and the other two groups
mentioned above are the leading franchise and
buying groups for organic shops in the Netherlands.
Natuurwinkel currently has about 40 shops in the
country and is associated with a cooperative of 30
other organic outlets in Belgium. Gimsel has over 30
stores in the Netherlands and Belgium, including it
new flagship supermarket in De Groene Passage in
Rotterdam. The supermarket has 2,000 square metres
of selling space; other shops in the location include an
organic butcher, a ‘natural’ interiors store, a fair trade
shop and an organic café. De Groene Winkel has
about 10 outlets.
Supermarkets used to be com para tively unim por tant
in the dis tri bu tion of organic foods, but their involvement in the organic trade has expanded con sid erably
in recent years and they now have an esti mated 25%
of the market. Organic pota toes and other basic vegetables (onions, carrots, cabbage) are available in
many super mar kets, and sales of dairy prod ucts, particu larly the brand De Groene Koe of Zuiver Zuivel,
are growing the fastest. Taste, freshness, an acceptable price premium and continuity of supply have
been significant factors in growing consumer sales.
Sev eral super market groups (Konmar, Vomar, Dekamarkt and De Nieuwe Weme) have expanded their
organic ranges to include eggs, bread, fruit juices,
apple purée, conserved vegetables, tea, coffee and
other dry gro ceries. In Feb ruary 1998, the domi nant
supermarket chain Albert Heijn, which has 650
stores, launched a wide range of organic prod ucts.
Despite these positive trends some major
supermarket chains are not yet involved in the
strategic marketing of organic foods, and decisions to
include organic versions of conventional food
products are made largely on purely commercial
grounds, i.e. their profitability per square metre of
shelf space. The barriers to developing profitable
sales (consumer resistance to high prices, lack of
continuity of supply and the need for guarantees of
excellent quality) continue to be obstacles to the
increased participation of these supermarket chains in
the organic trade.
Farmers’ organic markets are held weekly in 15
cities, and their umbrella organization expects this
number to rise to between 40 and 50 cities by the year
215
2005. About three quarters of the produce sold is
fresh and the markets perform an important function
in promoting the image of organic foods and offering
a range of produce at considerably lower prices than
the specialist shops.
although trade contacts have indicated that there is a
growing trend towards importing certain produce.
This trend is likely to become more pronounced as
mainstream manufacturers become more involved in
the organic sector.
Subscription schemes (the groentenabonnement)
have become important retail sales outlets for
seasonal fresh fruits and vegetables. The bags of
produce are distributed weekly to a growing number
of consumers through about 250 points of sale.
Subscribers currently number between 35,000 and
40,000. The main operators are Odin (the largest
supplier), BICK, Konmar and a number of individual
organic farmers.
Among the leading specialist organic food
manufacturers or processors are the following:
Other outlets for limited ranges of organic foods
include specialist organic butchers, reform and health
food shops (which sell mainly dry foods and food
supplements), conventional street markets, direct
farm sales and fair trade shops (wereldwinkels).
Food manufacturers
Organic food manufacturers in the Netherlands tend
to obtain their supplies of ingredients from domestic
and other European sources, including producers,
importers and processors, who can provide
requirements according to specifications and ensure
continuity of supply. They rarely import directly,
Bakery products
Chocolate
Conserves
Dairy products
Honey products
Muesli
Nut pastes
Processed foods
Verbeek, van der Westen, Keune
Bonvita
Balthussen, Bio-core
Zuiver Zuivel, De Zwaluw, De
Dageraad, FEZ
De Rit, De Traay
De Halm, Natuproducts (Natudis),
Mulder, BD Graan
Horizon
De Vuurdoop, Joannusmolen
Important mainstream processors now involved in
organic processing include: Koninklijke Numico NV
(Nutricia) (baby foods), Remia (oils and fats),
Marvelo (coffee and tea) and Renco BV (sugar and
sweeteners). Several major dairy companies and
bakers are expected to introduce organic production
lines in the near future. The Cosun group of
companies, including Suiker Unie (National Sugar
Company), are encouraging producers to convert to
organic methods. The renowned fruits and vegetable
preserve company, HAK, has started an organic trial
programme.
Prospects
The Netherlands must be seen as a significant
gateway for prospective exporters of organic foods
interested in approaching the growing major markets
of northern Europe. The domestic market is small and
consumes only a small proportion of total imports. Its
development will depend strongly on the rate of
expansion in supermarkets and the ability of
suppliers to offer organic produce to consumers at
price premiums they are prepared to pay. Although
supermarkets are introducing more organic products
the stores do not generally have a specific marketing
concept for organic foods, and their primary
motivation is profitability per square metre, service to
customers and preserving a publicly correct image.
Fresh produce has the best near-term prospects in the
domestic market.
As indicated earlier in this chapter, Netherlands
traders are significant importers and re-exporters of
bulk organic produce, especially non-seasonal fresh
fruits and vegetables, tropical fresh fruit, preserved
fruit (concentrates, purées, etc.), grains, cereals, nuts,
seeds, spices and herbs. These traders are highly
experienced and are used to working with producers
from the initial stages of conversion and certification
through to the final supply of food products. These
products meet the strict standards required both by
European food safety legislation and by Netherlands
and other European consumers. Prospective
exporters are strongly advised to investigate the
markets for specific products in close cooperation
with an established importer.
Annex I
Netherlands: selected addresses*
TRADERS/IMPORTERS/
PACKERS/PROCESSORS
Ariza BV
Overhorst 9
5707 PP Helmond
Tel: +31-492 528 364
Fax: +31-492 545 151
De Traay
Platinastraat 50
8211 AR Lelystad
Tel: +31-320 282 928
Fax: +31-320 282-028
Doens Food Ingredients BV
Oranjestraat 40A
Postbus 10
4515 ZG IJzendijke
Tel: +31-117 302 020
Fax: +31-117 301 811
Do-It BV
Prins Hendrikweg 19
3771 AK Barneveld
Tel: +31-342 422 829
Fax: +31-342 422 192
Eosta BV
Postbus 132
3980 CC Bunnik
Tel: +31-30 656 6000
Fax: +31-30 656 6040
Euroherb BV
Dynamostraat 12
3903 LK Veenendaal
Tel: +31-318 543 288
Fax: +31-318 542 458
Good Food Foundation
Alike Last
Postbus 219
NL-3850 AE Ermelo
Tel: +31-341 560 210
Fax: +31-341 562 913
___________________________
Green, Fresh & Anywhere BV
Postbus 327
2990 AH Barendrecht
Tel: +31-186 668 585
Fax: +31-186 668 588
Rhumveld Winter & Konijn BV
Postbus 29216
3001 GE Rotterdam
Tel: +31-10 233 0900
Fax: +31-10 233 0574
Greenfood International BV
Bellstraat 7
3861 NP Nijkerk
Tel: +31-33 247 1030
Fax: +31-33 247 1035
Rijk Zwaan Nederland BV
Postbus 40
2678 ZG De Lier
Tel: +31-174 532 300
Fax: +31-174 515 334
(Organic seeds)
Horizon Natuurvoeding BV
Postbus 77
3400 AB IJsselstein
Tel: +31-30 688 7730
Fax: +31-30 688 7142
Koffiebranderij G. Peeze BV
Ringoven 36
6826 TR Arnhem
Tel: +31-26 362 2422
Fax: +31-26 361 3380
Marfo
Postbus 137
8200 AC Lelystad
Tel: +31-320 293 894
Fax: +31-320 232 096
Neuteboom BV
Aadijk 41
7602 PP Almelo
Tel: +31-546 864 062
Fax: +31-546 864 062
Simon Levelt BV
A. Hofmanweg 3
2031 BH Haarlem
Tel: +31-23 512 2522
Fax: +31-23 512 2525
Tradin Organic Agriculture BV
Latexweg 12
1047 BJ Amsterdam
Tel: +31-20 407 4499
Fax: +31-20 497 2100
E-mail:
[email protected]
Web page:
http://www.tradinorganic.com
Trouw BV
Piekstraat 63-65
3071 EL Rotterdam
Tel: +31-10 486 6332
Fax: +31-10 4886 0928
WHOLESALERS
Odin International BV
Postbus 225
4190 CE Geldermalsen
Tel: +31-345 577 133
Fax: +31-345 576 848
Renco BV
Postbox 46
6600 AA Wijchen
Tel: +31-24 641 5304
Fax: +31-24 641 5314
De Nieuwe Band
Noorderringweg 12
9363 TC Marum
Tel: +31-594 644 3355
Fax: +31-594 643 385
De Rit Natuurprodukten BV
Retsezijstraat 4
4011 JP Zoelen
Tel: +31-344 681 653
Fax: +31-344 681 404
Natudis BV (Natuproducts)
Postbus 376
3840 AJ Harderwijk
Tel: +31-341 464 211
Fax: +31-341 425 704
TerraSana NL BV
Postbus 70
2450 AB Leimuiden
Tel: +31-172 503 338
Fax: +31-172 503 355
Udea BV
Postbus 478
5400 AL Uden
http://www.ekoland.com
RETAILERS
Albert Heijn
Project Organic Products
Proviancialeweg 11
Postbus 3000
1500 HA Zaandam
Tel: +31-75 659 2218
Fax: +31-75 659 8644
De Nieuwe Weme BV
Postbus 90
8440 AB Heerenveen
Tel: +31-513 630 333
Fax: +31-513 650 170
DekaMarkt BV
Postbus 86
1940 AB Beverwijk
Tel: +31-251 276 600
Fax: +31-251 276 680
Konmar BV
De Werf 13
2544 EH Den Haag
Tel: +31-70 321 5121
Fax: +31-70 329 1174
NWO (De Natuurwinkel/Gimsel/
De Groene Winkel)
Postbus 193
3840 AD Harderwijk
Tel: +31-341 464 211
Fax: +31-341 464 204
Vomar Voordeelmarkt BV
Postbus 217
1970 AE IJmuiden
Tel: +31-255 563 700
Fax: +31-255 521 649
217
GOVERNMENT OFFICES AND
OTHER ORGANIZATIONS
B-D Association
(Vereniging voor
Biologisch-Dynamische Landbouw)
Postbus 17
3970 AA Driebergen
Tel: +31-34 353 1740
Fax: +31-34 351 6943
http://www.ecomarkt.nl/bdvereniging
CBI - Centre for the Promotion of
Imports from developing countries
WTC Beursbuilding, 5th floor
Postbus 30009
3001 DA Rotterdam
Tel: +31-10 201 3434
Fax: +31-10 411 4081
Dutch Food Inspection Service
Ministry of Welfare, Health and
Cultural Affairs
Postbus 5840
2280 HV Rijswijk
Tel: +31-70 340 5060
Fax: +31-70 340 5435
Fair Trade Association
Beesdseweg 5
Postbus 115
4100 AC Culemborg
Tel: +31-345 545 151
Fax: +31-345 521 423
Good Food Foundation
PO Box 219
3850 AE Ermelo
Tel: +31-341 560 210
Fax: +31-341 562 913
(Agricultural production, consulting,
training/education)
Ministry of Agriculture
PO Box 965
6040 AZ Roermond
Tel: +31-475 355 555
Fax: +31-475 318 939
(Import licences for organic foods)
SKAL
Postbus 384
8000 AJ Zwolle
Tel: +31-38 426 8181
Fax: +31-38 421 3063
http://www.skal.com
Stichting Biologica - Platform
Biologica
Postbus 12048
3501 AA Utrecht
Tel: +31-30 230 0713
Fax: +31-30 230 4423
http://www.platformbiologica.nl
(Umbrella association for organic
farmers, traders, retailers)
Stichting Max Havelaar
Lucasbolwerk 7
3512 EG Utrecht
Tel: +31-30 233 4602
Fax: +31-30 233 2992
http:www.maxhavelaar.nl
ORGANIC
PROJECTS/CONSULTANCY
Agriterra
Willemsplein 44
6811 KD Arnhem
Tel: +31-26 445 5445
(Consultancy/development of
organic projects)
Agro Eco Consultancy
Postbus 176
3970 AD Driebergen
Tel: +31-343 536 137
Fax: +31-343 531 700
http://www.agroeco.nl/agroeco/
(Organic agriculture consultants)
Koppert BV
Veilingweg 17
2651 BE Berkel-En-Roderijs
Tel: +31-10 514 0444
Fax: +31-10 514 5203
(Supplier of biological systems)
LEI-DLO
Agricultural Economics Research
Institute
Postbus 29703
2502 LS The Hague
Tel: +31-70 330 8341
Fax: +31-70 361 5624
Annex II
Countries in which SKAL carries out organic
inspection services
Belgium
India
Switzerland
Bulgaria
Indonesia
Costa Rica
Italy
The former Yugoslav Republic of
Macedonia
Cyprus
Netherlands
Turkey
Denmark
Pakistan
Uganda
Ethiopia
Paraguay
Ukraine
France
Peru
United States
Germany
Poland
United Kingdom
Greece
Slovakia
Viet Nam
Hungary
Sri Lanka
Yugoslavia
Annex III
Specifications of Euroherb Bio BV
Product designation
PEPPERCORNS BLACK/ZWARTE PEPER KORREL
Article code
180231
Certification
EKO (SKAL)
Trade name
Piperis nigri fructus
Botanical name
Piper nigrum L.
Product description
Dried, spherical fruits, with a diameter of 2-3 mm.
The fruits are harvested before they have fully ripened. They are spherical and wrinkled, black
or brown, and 2-3 mm in diameter.
Smell and taste are typically aromatic and pure.
Purity
The product has to meet EC regulation 2092/91 concerning organic agricultural production in
every respect. The product has not been given any radiation nor has it been grown from
DNA-manipulated seed.
The product is unrestricted marketable according to European Food Law. This excludes the
presence of visible and invisible contaminations.
To be qualified for the ‘Deutsche Arzneibuch’-quality, the monography of DAB 1996, DAC or
the Standard requirements should be met or surpassed in all aspects.
Microbiology and aflatoxin: according to requirements by law (see supplements). If the
maximum values are exceeded, the product will lose its marketability.
Pesticides
The product must be free of pesticide residues. Exceptions are regulated in the supplements.
Heavy metals
Lead, cadmium and mercury: according to requirements by law (see supplements). If the
maximum values are exceeded the product is no longer marketable.
Additives
None
Aromatics
None
Detergent
None
Moisture content
Maximum 10%
Total ashes/AIA
Maximum 7% (ISO,WW)/maximum 2% (WW)
Essential oil
Minimum 2% (ESA)
Stems
None
Other (parts of) plants
Maximum 1% (ESA)
220
SUPPLEMENT: LIMITING VALUES FOR HERBS AND SPICES
Microbiology
Aflatoxin
Heavy metals
Bundesgesundheitsblatt Nr. 3
Aerobic plate count
Anaerobic plate count
Escherichia coli
Staphylococcus aureus
Bacillus cereus
Clostridium
Yeasts and fungi
Salmonella/25g
‘Aflat. Verordn. (Anlage zu ϑϑ
1en 2) Stand 06-11-90’ (German)
B1
B2
G1
G2
Σ B1, B2 , G1 , G2
‘BGVV; Richtwerte für Schadstoffe
in Lebensmitteln, BGB 5-96’
(German)
Cd
Pb
Hg
Guide value (CFU/g)
1.0 x 106
–
1.0 x 104
1.0 x 102
1.0 x 104
1.0 x 104
1.0 x 105
negative
Detection limit
(µg/kg)
0.1
0.1
0.15
0.1
Maximum value (CFU/g)
1.0 x 10 7
–
–
1.0 x 10 3
1.0 x 10 5
1.0 x 10 5
1.0 x 10 6
negative
Maximum value
(µg/kg)
2.0
4.0
* Maximum value
(mg/kg)
0.10
2.00
0.05
* Maximum values in mg/kg based on the fresh weight or in the offered form; in dried products based on the rehydrated product.
Annex IV
Tradin: certified organic products traded
GRAINS
Amaranth
Barley
Buckwheat
Buckwheat cracks
Buckwheat flour
Buckwheat hulled
Buckwheat whole
Corn
Millet
Oats
Oats hulled
Popcorn
Quinoa
Rye
Wheat
Wheat, durum
RICE
Basmati brown
Basmati white
Extra long
Long-grain
Pre-cooked
Red
Round
Sweet
White
Wild
FLOUR/STARCH
Barley flakes
Carob powder
Cheese powder full fat
Cheese powder low fat
Corn flakes
Corn semolina
Corn starch
Demineralized whey powder
Milk powder
Oat flakes
Potato starch
Rice flakes
Rye flakes
Soy flour enzymatic
Soy flour toasted
Soya granulate
Wheat flakes
Wheat flour 100%
Wheat flour 70%
Whey powder
SEEDS
Alfalfa
Brown flax
Cress
Fenugreek
Mustard
Mustard, oriental
Mustard, yellow
Poppy
Pumpkin
Safflower
Sesame
Sesame, hulled
Sunflower, hulled
Yellow flax
NUTS
Almonds
Almonds flaked
Cashew nuts
Coconut grated
Hazelnuts
Peanuts
Walnuts
DRIED FRUITS
Apricots
Apricots tinned
Banana
Currants
Dates chopped
Figs
Figs chopped
Figs paste
Mango
Papaya
Pineapple
Raisins
Raisins (Blue Thompson)
Sultanas
OIL-SEEDS
Rape
Safflower
Sesame
Soya beans
Sunflower
ANIMAL FEED OILCAKES
Safflower cakes/pellets
Sesame cakes
Soya flour
Sunflower cakes/pellets
OILS
Coconut
Olive
Palm
Safflower
Sesame
Sunflower
Sunflower, deodorized
BEANS
Aduki beans
Black beans
Brown beans
Chickpeas
Flageolets
Green lentils
Green peas
Kidney beans
Lentils, Dupuis
Mung beans
Red lentils
Soybeans
Split beans
White beans
Yellow peas
COFFEE/COCOA
Carob powder
Chocolate chunks, dark
Chocolate drops, dark
Chocolate powder, dark
Chocolate powder, milk
Cocoa beans
Cocoa butter
Cocoa liquor
Cocoa powders
Dark couverture
Hazelnut paste
Milk couverture
Raw coffee
SEASONINGS
Alcohol vinegar 10º
Cheese powder
Cider vinegar
Sea salt coarse
Sea salt fine
Shoyu
Tamari
Vanilla powder
SWEETENERS
Agave syrup
Beet syrup
Cane sugar raw
Glucose syrup
Maple syrup
BAKERY FAT
Cream fat
Pastry fat
Pastry margarine
DAIRY PRODUCTS
Milk powder
Whey powder
Demineralized
FRESH FRUIT
Baby bananas
Bananas
Grapefruit
Pineapple
Red bananas
FROZEN FRUIT AND
CONCENTRATE
Acarillo purée
Apple concentrate
Apples
Apricot purée
Apricots
Banana purée
Banana slices
Bilberries
Blackcurrants
Blackberries
Elderberries
Frozen bananas
Mango purée
Orange concentrate
Orange juice
Papaya purée
Passionfruit juice
Peaches
Pears
Pineapple
Pineapple juice
Plums
Raspberries
Raspberry purée
Redcurrants
Rose-hips
Sour cherries
Strawberries
Strawberry purée
Tomato concentrate
Chapter 10
SWEDEN
Introduction
Sweden has an area of 450,000 square kilometres.
Half of the land is cov ered with forest, and less than
10% is farm land.
The country has a population of 8.9 million, with
about 85% living in the south. The three largest cities
– Stockholm, Göteborg and Malmö – account for
approximately 30% of the total population. Since
1990, the popu la tion has grown by 280,000 (+3.3%),
including a sub stan tial number of immi grants.
Since 1995, Sweden has been a full member of the
Euro pean Union. Its share in the EU’s popu la tion is
2.3%, which means that it is one of the Union’s
smaller national markets. However, the Nordic
countries – Denmark, Norway, Finland, Iceland as
well as Sweden – are increas ingly regarded as a home
market for com pa nies in the Swedish food trade and
industry. These coun tries have a total of 23.5 mil lion
inhabitants.
Supply and demand
The lack of official data makes it difficult to give
exact figures on the market for organic products.
Nevertheless, an attempt has been made in this
chapter to pro vide an esti mate of market size, mainly
based on information from trade sources. These
estimates, which cover direct consumption in both
the retail and restaurant sectors, are given in
table 10.1.
As shown, con sump tion of organic foods amounted
in 1997 to roughly 50,000 tons in volume and SKr
1,000 mil lion in value ($130 mil lion). Con sump tion
is at present dominated by dairy prod ucts and fresh
pro duce, which together account for about 70% of the
volume and 65% of the value of the market.
product groups in which no organic items are
cur rently avail able.
In the market for organic prod ucts, the largest shares
were taken by dairy prod ucts and fats (more than 2%
by value), fresh produce (1%) and coffee, tea and
cacao (1.1%).
The bulk of the organic prod ucts mar keted in Sweden
is cer ti fied by KRAV, the Swedish Organic Agri cul ture
Association. At present about 2,200 food products
carry the KRAV certification symbol; of these
prod ucts, around 10% are imported. In 1997, 200 new
KRAV prod ucts were intro duced into the market.
Domestic production
The market share of organic products has not yet
reached 1% of total food sales. In 1997, the esti mated
shares were 0.6% by value and 0.7% by volume. It
should be noted that these figures cover all
con sump tion of food and bev erage in both the retail
and restaurant sectors, including consumption of
Sweden has a comparatively large area of organic
farmlands. In 1997, about 205,000 hectares of
farmland received environmental support from EU
and national authorities; this area is equivalent to
7.3% of the coun try’s total farm land. A gov ern ment
CHAPTER 10 – SWEDEN
Table 10.1
223
Sweden: consumption of organic foods, by volume and
by value, 1997
Volume (tons)
Value (SKr million)
Product group
Total
% share
Total
% share
Total
of which:
Dairy products and fats a/
50 000
100
1 000
100
29 000
58
500
50
11 000
22
150
15
2 000
4
50
5
Cereal and bread products b/
4 000
8
70
7
Meat and cured meats
Fish and crustaceans
1 500
-
3
0
100
-
10
0
Coffee, tea and cacao
Other food products c/
Beverages d/
800
2
70
7
1 500
3
50
5
200
0
10
1
Source: Fox Research, based on trade sources.
a/
b/
c/
d/
Including eggs.
Including rice and pasta.
Ice-cream, chocolate, confectionery, sauces, sugar, spices, salt and honey.
Mineral water, soft drinks, beer, wine and spirits.
fluid milk, which amounted to 23,000
tons in 1997, or 3% - 4% of the total
fluid milk output. In addition, small
quantities of organic yoghurt, cream,
butter, hard cheese and dried milk are
produced.
The dairies are supplied by about 350
KRAV-certified dairy farms. In 1997,
these farms delivered approximately
62,000 tons of organic milk to the
dairies, which make up 2.4% of all milk
deliv eries. The aim is to raise this share
to 5% by the year 2000. The Swedish
dairy industry is dominated by five
farmer-owned cooperatives. Of these
Arla is the largest, with about 60% of
both dairy production and the market.
The dairy cooperatives are also the
leading pro ducers of juices and nec tars.
Meat
goal is that by the year 2000, 10% of the farmlands
should be using organic methods.
According to Swedish regu la tions, the output of these
farm lands may be mar keted or sold as ‘organic’ only
if pro duc tion has been cer ti fied by either one of the
two official national organizations controlling
organic farming: KRAV and the Swedish Demeter
Association. KRAV is the dominant control
organization.
The area under KRAV-controlled organic farming
amounted to 118,000 hec tares in 1997, cor re sponding
to 3.4% of the total farmland. Most of this land was
used for growing animal feed. The areas under
various other organic crops, total ling 33,000 hec tares,
were dis trib uted as fol lows: cereals 30,000 hec tares;
vegetables and fruits 2,000 hectares; and oil plants
1,000 hec tares.
In total, KRAV had 3,000 affili ated farms. Of these,
there were 2,746 plant cultivators; 1,126 livestock
farmers; 350 milk producers; 67 egg producers; 70
bee-keepers; 30 mushroom growers; and 162
green house pro ducers.
Dairy products
The dairy industry is by far the most important
domestic pro ducer of organic foods. Since 1990, the
output of organic dairy prod ucts has risen by around
30% yearly. Current production mainly focuses on
Domestic production of organic meat and cured
meats is not well devel oped. Pro duc tion in 1997 can
be esti mated at about 1,500 tons, which means that
just about 0.2% of all cattle, pig and lamb
slaughtering is organic. The market demand is far
bigger: it is thought that pro duc tion of organic cattle
and lamb needs to double and that of organic pigs
should rise at least ten fold.
The main sup plier of organic beef, pork and lamb meat
is Swedish Meats, a newly formed meat-processing
company owned by the country’s large slaughtering
cooperatives. Swedish Meats and its marketing
subsidiary, Scan Foods, control about 80% of the
Swedish market for beef, pork and lamb. Organic meat
prod ucts are also sup plied by Ekokött (EcoMeat).
The currently small share of organic meat is mainly
due to its low availability and high price differential.
The leading coop era tives within Swedish Meats report
that the goal for the near future is to increase pro duction of cattle from 5,000 to 7,500 head, pigs from
5,000 to 20,000 head, and lamb from 5,000-6,000 to
10,000 head. As a consequence, the share of organic
meat will undoubt edly rise within the next few years.
Domestic production of poultry products is
dominated by Scandinavian Poultry, which has
processing activities in both Sweden and Denmark.
Organic chicken was introduced into the Swedish
market in 1997, but sales remain insig nifi cant.
224
Eggs
Of Swe den’s 5.7 mil lion laying hens, about 2.5% or
140,000 are organic. The market requires at least
twice that number. There is also considerable
consumer interest in eggs from farms using
alternative production methods. The so-called
‘scratch eggs’ (produced by laying hens that can
scratch freely indoors or outdoors) have already
gained over 20% of the total egg market.
Cereals
Production of organic cereals amounted to about
20,000 tons in 1997, of which 40% was exported. Of
the pro duc tion, about half con sisted of wheat and the
other half of barley, oats, rye and yellow split peas. The
main domestic users are flour mills and animal feed
manu fac turers. A small pro por tion of the peas is also
dis trib uted to food packers and food manu fac turers.
Mills and animal-feed manufacturers import certain
quali ties of cereals, mainly those not pro duced in the
country.
The output of organic flour was esti mated at 7,000 8,000 tons in 1997, equivalent to a market share of
about 1%. However, this share has certainly risen
since: for 1998, Juvel, the main producer of organic
flour, had fore cast a dou bling of its own output from
5,000 to 10,000 tons.
products are green peppers, lettuce, and herbs and
spices. It is esti mated that organic toma toes account
for 5% of all toma toes pro duced in Sweden.
Other products
The other domestic organic prod ucts con sist mainly
of sugar and, to a lesser extent, oil-seeds. The
cultivation of organic sugar beets is carried out by
some 100 farmers. In 1998, they should have
produced about 2,000 tons of sugar, equivalent to
0.6% of the coun try’s total sugar pro duc tion.
Processed foods
Sweden is a fairly large manufacturer of processed
organic products. These include canned fruits and
vege ta bles; juices; fruit pre serves (jams, mar ma lade,
fruit syrups); dried vegetables (peas and beans);
frozen products (vegetables, fruits, berries, readyto-eat meals, ice- cream, etc.); baby food; break fast
cereals, gruel and porridge; plain bread, biscuits,
crackers, crisp bread; herbs and spices; potato snacks;
tomato ketchup and other sauces; roasted coffee; and
beer. The list is expanding fast and will undoubt edly
cover many more food product groups in the near
future.
Exports
Organic flour is produced for both consumers and
manufacturers of organic breakfast cereals, bread,
pasta, baby food, gruel, etc. With increased
avail ability of organic flour, the output of these food
items should be sub stan tially higher in the future.
Organic foods account for only a fraction of
Sweden’s food exports. The main organic export
products are cereals such as oats and malt for
pro ducing beer. The other impor tant export items are
jams and frozen ber ries. Organic beef is a new export
product. Production of organic pork for export to
other EU coun tries has started.
Vegetables, fruits and berries
Imports
About 1,700 hectares were planted to organic
vege ta bles in 1997, of which two- thirds were devoted
to pota toes and car rots. Other impor tant prod ucts are
beetroot, onions and cabbage. Owing to climatic
con di tions, prod ucts such as toma toes and cucumber
are dif fi cult to grow organi cally in Sweden.
Sweden is more or less self- sufficient in basic foods
like dairy prod ucts, meat, bread, cereals and sugar. Its
primary imports in the food sector con sist of goods
that are not pro duced domes ti cally (such as citrus and
tropical fruits, nuts, green coffee, spices and wine)
and those that are pro duced only part of the year (e.g.
vegetables, deciduous fruits and ber ries). Imports of
these items depend on how much local produce is
available or when importing is more favourable.
Sweden has a significant import trade in packaged
prod ucts, i.e. canned, dried and frozen foods. All in
all, imports account for an estimated 20% of the
overall Swedish food market.
Organic fruits and berries were produced on about
200 hec tares. Half were planted to straw ber ries.
Organic greenhouse production covered 56,000
square metres in 1997, of which 90% was devoted to
tomatoes and cucumber. The other greenhouse
225
Market requirements by major product group
Since organic foods are not recorded separately in the
trade statistics, it is impossible to give accurate
figures on imports. However, it is estimated that
about 200 different organic food products were
imported into Sweden in 1997, mainly within the
following product groups:
q
Fresh fruits and vegetables;
q
Dried fruits and vegetables;
q
Packaged foods;
q
Raw materials and ingredients for the food
industry (mainly green coffee, herbs and spices,
cereals, and vegetable oils and fats).
Fresh produce and green coffee account for the
largest share in imports, both by volume and by
value.
The total Swedish market for organic fresh fruits and
vegetables amounted to about 11,000 tons or SKr 150
million in 1997 ($20 million). This means that
organic fresh produce had a market share of 0.8% by
volume and 1.0% by value.
Consumption of organic fruits amounted to around
2,000 tons in 1997, equivalent to a market share of
0.4%. Consumption by value amounted to about SKr
50 million ($6.5 million), or 0.6% of the market.
The Swedish market for organic fresh fruits is fairly
new, which also explains why the market share is
still below 1%. However, fruit importers say that if
more supplies were available, this share would rise
substantially. In order to expand the market for
organic fruit, more suppliers are needed, especially
those that can offer products during more than one
season.
Most of the fruits consumed are imported. The largest
import of organic fruits consists of bananas from the
Dominican Republic. Among the other import items
are oranges, grapefruit and lemons (from Israel),
apples (from France, Italy, Argentina, Chile), peaches
(from France), avocado (from Israel, South Africa),
kiwi fruit (from New Zealand, Italy), mango (from
Mali), pineapple (from Brazil) and strawberries (e.g.
from Israel). Newly introduced products include
plums, nectarines, peaches, melons, grapes and
papaya as well as several species of berries.
Organic bananas were introduced into the market in
1994. In 1997, imports increased 400% to 900 tons; a
rise to 1,500 tons was expected in 1998,which would
have been equal to about 1% of the overall market for
bananas. As supplies increase and prices go down,
this share could reach at least the 5% mark in the near
future.
Owing to inadequate supplies, imports of organic
citrus fruits remain insignificant, well below 1% of
the total volume. The current product range consists
of oranges, grapefruit and lemons. There is a demand
for other citrus fruits, especially clementines and
satsumas. Since citrus fruits have a big market in
Sweden, fruit importers generally regard organic
citrus fruit as having a large potential.
Interest in tropical fruit is growing. Consumers are
curious about new and exotic products, especially if
they are sold at moderate prices so that they can be
sampled at not too high a cost. Trade sources are
therefore certain that there is a market potential for
organic tropical fruits in Sweden.
Another product in demand is avocado. The market
share of organic avocado has already reached 20% in
one of the leading supermarkets in central
Stockholm. This figure would have been higher had
there been more supplies.
Consumption of organic vegetables amounted to an
estimated 9,000 tons in 1997, equivalent to 1% of all
vegetables consumed. In terms of value, the market
was worth SKr 100 million ($13 million) or 1.3% of
the total.
Potatoes had about half of the market for organic
vegetables in 1997, i.e. 4,500 tons. This means that
organic potatoes have obtained 3% - 4% of the
overall market for fresh potatoes. Organic carrots are
also important, and they are thought to have attained
a share of 10% of the entire market for carrots. Both
these items are mainly supplied by domestic growers.
The only real potential for suppliers outside Sweden
probably arises during April and June, just before the
domestic harvest begins.
226
Among the other important organic vegetables and
herbs are tomatoes, cucumber, lettuce, onion,
cabbage, mushrooms, paprika and fresh herbs. There
are no official figures available, but trade sources
estimate current imports of these products at 1,000 1,500 tons per year.
trade estimates, consumption amounted to just 2,000
tons or SKr 50 million in 1997.
The Swedish market for dried organic fruits and
vegetables is currently modest. Of the market,
(estimated at around 100 tons in 1997), household
con sump tion accounts for 70% and indus trial use for
30%. Importers pre dict that as sup plies increase, the
market for dried organic fruit and vege table prod ucts
will grow sub stan tially.
The domestic growing season for vegetables
generally starts in June and ends in August or
September. During this period it is normally difficult
for foreign suppliers to compete with domestic
growers. This is especially true for items such as
lettuce, cucumber, cabbage and onions.
All dried fruits consumed in Sweden are imported. Of
these, the most important are raisins, dates, figs,
plums, apricots, apple flakes and mixtures of dried
fruits. There is a demand for other dried organic
products such as citrus fruits, bananas, papaya,
mango and other tropical fruit, either for use in cereal
mixtures, diary products or to be sold as sweets. A
range of imported organic nuts is also consumed,
including almonds, cashews, hazel-nuts, walnut
kernels and macadamia nuts.
Owing to climatic conditions, organic tomatoes are
difficult to grow economically in Sweden. This item
is therefore imported the year round. By contrast,
problems of shelf-life make organic products like
lettuce, cabbage, celery, asparagus and eggplant
(aubergines) difficult to import into Sweden.
The best market potential is for vegetables and herbs
that are not produced in the country, such as paprika
and artichokes, and for products that are not yet
imported.
The present range of organic dried vegetables mainly
consists of domestically grown yellow split peas and
brown beans. There are also imports of chickpeas;
dried kidney, mung, aduki and other beans; lentils;
onion and garlic products; desiccated coconut; and
soy products (including roasted soy beans).
There is growing demand for fresh organic herbs (i.e.
basil, thyme, tarragon, cori ander, savory, mar joram,
oregano and rose mary), as well as consumer- packed
mixed and sliced let tuce. The market for alter na tives
to pota toes, such as sweet pota toes and cas sava, has
expanded in recent years, which means that there
should also be a market for the organic forms of these
items.
The market for other canned and preserved fruits and
vegetable products amounted to about 700 tons
(SKr 20 million or $2.6 million) in 1997.
Organic canned fruits are rare and are much sought
after. The most popular conventional items are
pineapples, peaches, pears and mixed fruits, which
means there should also be a market for their organic
versions. Since all canned fruits consumed are
imported, there is an obvious potential here.
The market for processed organic fruit and vegetable
products is in general little developed. According to
Table 10.2
Sweden: market for processed fruits and vegetables, by quantity and by value, 1997
QUANTITY (tons)
Product group
Total
of which:
Dried fruits and vegetables
Canned fruits and vegetables a/
Juice and fruit beverages
Frozen fruits and vegetables
Potato flour, chips, etc. b/
Total
VALUE (SKr million)
of which: Organic
Quantity
% share
Value
of which: Organic
Value
% share
515 100
2 000
0.4
11 150
50
0.5
13 700
231 300
178 200
76 700
20 600
100
700
500
400
100
0.7
0.3
0.3
0.5
0.5
320
5 680
2 220
1 700
1 230
5
20
10
10
5
0.6
0.4
0.5
0.6
0.4
Source: Fox Research, information from trade sources.
a/ Including jams, marmalades, vegetable soups, instant soups and bouillons.
b/ Including instant mashed potatoes and turnips, and potato starch.
227
The main organic fruit preserves are jams,
marmalades and apple sauce. Jam, an important
ingredient in many Swedish dishes, is made mostly
from domestically grown berries, such as cowberries,
strawberries, raspberries, blueberries, blackcurrants
and cherries. The share of imports of marmalades is
far larger, since they are mostly based on fruits not
grown in Sweden.
on the market since 1995. Potato-based products are in
general marketed by domestic manufacturers, which
means that it is a difficult product area for exporters to
enter. However, snacks based on other raw materials
(such as apple, corn, plantain and cassava) should have
a much bigger potential.
Canned vegetables are mostly imported. The main
import items are tomato products, mushrooms, peas,
beans, yellow corn, asparagus, olives and capsicum.
However, preserved vegetables, such as cucumber
and beetroot, are mainly supplied by domestic
manufacturers.
Cereal products, such as flour, breakfast cereals, rice,
pasta and bread, have a large share of the Swedish
diet. However, even though there is an abundance of
organic cereal products, their combined market share
is still rather low (about 0.5%), partly because of their
high prices.
The market for organic juice and other beverages
made from fruits and vegetables amounted to an
estimated 500 tons (SKr 10 million) in 1997. These
correspond to market shares of 0.3% by volume and
0.5% by value.
Wheat, rye, oats and barley are the main cereals used
by domestic flour mills and animal feed
manufacturers. Most supplies are of domestic origin,
even though imports have increased in recent years.
The main import suppliers are Canada, the United
States and Hungary. Manufacturers of breakfast
cereals also use other processed grains. There is a
growing consumer interest in the various varieties of
flour and grains, such as quinoa, polenta (maize
semolina), couscous, spelt, bulgur and amaranth.
The organic juices found in Sweden today are mostly
made from carrots, beetroot, mixed vegetables and
cereals. This means that there should be a large
demand for other – and more common – types of
juices, such as orange, grapefruit, apple, lemon,
apricot, grape and mixed juices (like apple and
mango, apple and carrot). Almost all fruit juices and
nectars are imported in bulk and are repacked for the
consumer market by domestic manufacturers.
Fruit syrup (which is diluted by the consumer with
tap water) is one of the most popular Swedish
beverages. The import share is rather low, since a
large part of the supply is based on domestic apples or
berries. However, fruit squash produced from
imported citrus fruits is also consumed.
The market for frozen organic vegetables amounted
to about 400 tons in 1997. The range includes potato
products, spinach, cauliflower, broccoli, peas, haricot
beans, yellow corn, carrots, leeks and certain
vegetable mixtures. Very few products (cauliflower,
mixed vegetables) are at present imported, and this
only from Denmark.
The range of organic frozen fruit on the market is so
far not extensive and consists of just a few products,
mainly domestically grown berries. However,
organic frozen fruits and berries are used by the food
industry for making jams and fruit drinks.
Organic potato snacks and similar products have been
Cereal and bakery products
Most of the trade is carried out by a specialized
company, Eco Trade, which in 1997 handled about
20,000 tons of organic cereals. The company foresees
continued demand for basic organic cereals and for
other grains, especially if they can claim a high
nutritional value.
The market for organic bread has grown substantially
in recent years; today more than 50 different types of
bread are sold in Sweden. The current product range
mainly consists of Swedish types of soft and crisp
bread. There is also a demand for biscuits (including
digestive biscuits) and cookies. Examples of
imported bread products are rice cakes and frozen
plain bread (baguettes and other products).
Rice and pasta products have a rapidly expanding
market. Organic rice is imported both pack aged and
in bulk from sev eral coun tries, including Italy, Thailand and the United States. The most com monly used
types are: long- grain white pol ished rice for boiling,
and round- grain white pol ished rice for gruel and desserts. Other types are also becoming popular, such as
aviori rice (Italian), jas mine rice and bas mati rice, as
well as pre-dried, fast-cooking rice. Brown rice is
also sold. Roasted, round-grain hulled rice is a
popular ingre dient in break fast cereals.
228
There are several types of organic pasta on the
market, such as spaghetti, lasagne and noodles.
About 60% of the supplies are normally imported.
Coffee and tea
Sweden has one of the highest per capita
consumption rates for coffee in the world. The
country’s roasters use only the highest qualities of
arabica coffee. Practically all of them offer organic
coffee, some under fair trade labels.
Sales of organic coffee have followed a highly
positive trend since 1992, when it was first
introduced. Sales in 1997 are estimated to have
reached about 900 tons (equivalent to 1.2% -1.3% of
the overall coffee market), valued at between SKr 80
million and SKr 90 million. Inadequate supplies of
organic coffee of high quality are a big obstacle to the
future growth of the organic coffee market.
Roasted coffee is mainly supplied by domestic
roasters, but some quantities are obtained from
roasters in Denmark and the Netherlands. The
domestic roasters import green coffee from many
countries, of which the most important are Mexico,
Nicaragua, Honduras, Guatemala, Costa Rica,
Colombia, Peru, Brazil and the Dominican Republic.
Total imports of conventional tea have in recent years
amounted to around 3,000 tons per year. Even though
organic tea from Sri Lanka and India has been on the
market for a few years, the market share remains
small, under 1%. Flavoured and herbal varieties of
organic tea have recently been introduced.
Vegetable oils, vinegar, and condiments,
spices and herbs
increased sales in recent years. White, red, and
balsam vinegar are imported.
Other organic condiments such as salt, mustard,
dressings, and ketchup and other sauces, are much in
demand. Among recent organic introductions are
sesame salt, chilli sauce, pesto and rucola sauces, soy
sauce, sesame paste (tahini) and tofu products.
The Swedes are among the three highest per capita
consumers of herbs and spices within the European
Union. Two domestic manufacturers – Nordfalks
(Santa Maria brand) and Kraft (Kockens brand) –
have 80% to 85% of the market. Both companies
have recently introduced organic varieties of some of
the more popular articles. Additionally, the domestic
food industry consumes an increasing amount of
herbs and spices. Of special interest are
manufacturers of ethnic foods (e.g. Nordfalks, one of
Europe’s largest exporters of Mexican specialities),
which require items such as coriander, ginger,
cinnamon, cloves and pepper. Sweden is an obvious
potential market for exporters of organic herbs and
spices.
Sugar and syrup
Organic sugar, obtained from sugar beets grown in
Sweden, has been on the market for only a short
period. So far, the market response has been highly
positive, partly because the difference between the
prices of organic and conventional sugar is small.
Some quantities of non-refined organic cane sugar
are obtained from Paraguay and Madagascar; raw
syrup is also imported. However, import volumes are
still rather low.
Beverages
The current range of organic vegetable oils and fats
includes olive oil and sunflower oil, as well as
margarine and palm fat for baking. Several types of
oil-seeds are imported, especially linseed. New
products are constantly added. One example is a new
series of sunflower oils flavoured with herbs (basil,
thyme, tarragon and garlic).
There is a demand for organic oils (mostly soy oil,
sunflower oil and rapeseed oil) for the domestic oils
and fats industry, which is dominated by Karlshamns
AB. Organic oil-seeds (e.g. rapeseed), copra and shea
are also imported.
Vinegar is another product group which has seen
Organic products have not penetrated the beverage
market (for mineral water, soft drinks, beer, wine and
spirits) to any significant extent. Even where organic
products exist, the quantities sold are almost
negligible.
Nevertheless, the trade believes that if the tastes are
up to standard and the price differential is kept to a
minimum (i.e. 10% - 15%), it should be possible to
market organic beverages on a much larger scale,
especially beer and wine.
A domestic brewery has entered into a joint venture
with a retailer to market organic beer in
supermarkets. Organic beer is brewed from organic
malt; conventional hops are used as organic hops are
not readily available. Sweden currently imports only
one type of organic beer, and this from Germany.
Five organic varieties of wine (three reds and two
whites) are marketed in Sweden. Four are of French
origin and one is German. The first organic liquor on
the market was introduced at the end of 1998: this is a
Swedish type of flavoured vodka made from
organically grown domestic wheat. It is interesting to
note that this product is marketed mainly as a
‘Chateau Aquavit’ of the highest quality, and not
primarily as an organic product.
Among the other organic beverage products in the
market – of which many are imported – are fruitbased still drinks and several alternative products,
such as soy- and oat- based bev er ages.
Other product groups
The other organic product groups marketed in
Sweden primarily comprise dairy, meat and animal
feed products, as well as honey, baby food, and
cacao-based products and confectionery.
With the exception of cheese and of yoghurt to some
extent, the dairy market is entirely supplied by
domestic dairies. Since about 15% of the cheese
marketed in Sweden consists of imports, there is an
obvious potential here for exporters of organic
cheeses. It should be noted that, while the Swedes
have a preference for mild hard cheeses, soft,
moulded and fermented cheeses have in recent years
also become popular.
Foreign meat products are difficult to market in
Sweden, and items of organic origin are no exception.
Nevertheless, since domestic production is still rather
undeveloped, there should be a market potential for
certain imported specialities, such as salami, spicy or
flavoured sausages, sliced delicatessen products, and
French pâtés.
Organic dog and cat food have been on the market for
a very short time, but sales are highly promising.
However, all organic products are so far supplied by
domestic manufacturers. Furthermore, dry dog food,
the largest organic category, is mostly based on
domestic cereals and imported proteins. Foreign
suppliers of organic cat and dog food should
229
therefore concentrate on complementary products,
such as biscuits and meat snacks, which are normally
imported.
The domestic animal feed industry imports large
amounts of protein feed (mainly soy-meal and
fish-meal) as well as molasses feed. Some cereals are
also imported. Owing to the planned expansion of
domestic production of organic dairy and meat
products, there is an apparent need for increased
imports of organic raw materials for the domestic
manufacture of organic animal feeds.
Organic honey is today mostly of Swedish origin, but
since domestic supplies are not sufficient to meet the
growing demand, imports have become rather
significant. There is also an expanding market for
honey flavours not produced within the country, such
as orange honey.
Cacao-based products have a comparatively large
market in Sweden and the country is also a
considerable exporter of chocolate bars and other
cacao-based products. However, owing to inadequate
supplies of organic cacao, only a few imported
organic chocolate and cacao-powder products are
sold locally. The food industry imports small
quantities of organic cocoa powder and butter. A
direct import trade in organic cacao with the
Dominican Republic has recently begun.
There is no current market for organic confectionery.
But since some products within this category – such as
chewing gum and cough drops – can be associated
with improved health, interest may grow in the future.
Organic baby food products have attained a large
market share, as high as 10% for certain products.
Nonetheless, since baby food products are almost
entirely supplied by domestic manufacturers, this is a
very difficult product area for foreign suppliers to
enter.
There are currently no certified organic fish products
in the Swedish market. However, KRAV has started
to implement rules for the certification of farmed and
wild fish and crustaceans. Since fish and crustaceans
have a fairly large share in Swedish food
consumption, their organic forms should gain a
substantial part of this market in the near future.
230
Market segments
Market trends
There are three market segments for imported food
products in Sweden: the retail sector, the catering
sector, and the domestic food manufacturing industry.
According to several market studies, two out of three
Swedes say they often purchase environmentally
friendly products, including foodstuff. About 40% buy
organic foods from time to time, while 15% do it on a
more regular basis. Surveys have also shown that
organic foods are especially preferred by young people
(aged 15-30 years) and families with young children.
The retail sector accounts for 80% of direct food
consumption. Two subsectors can be identified:
general grocery stores and specialized food stores
(including health food stores and ethnic stores).
A market characteristic is that organic foods are sold
predominantly through supermarkets and other
general grocery stores. Most of the larger grocery
stores therefore have a wide range of organic foods in
their selections.
The retail market is dominated by three integrated
retail and wholesale groups – ICA, KF and D&D.
These have 70% of the food retail sector. All three
groups promote organic and other environmentally
oriented products.
The health food sector comprises 800 stores. Even if
the specialized health food stores do sell organic
foods, they increasingly concentrate on nutritional
products, supplements and vitamins. Furthermore, as
a rule, health food stores do not sell fresh produce and
dairy or meat products, a fact that also explains their
small share in organic food sales.
There are four national chains within the health food
sector, Life (which holds about 30% of the market),
Naturapoteket, Hälsokraft and Hälsokost för Alla.
The catering sector accounts for 20% of direct food
consumption in Sweden. However, organic food
products remain uncommon on menus. In the larger
cities, a few restaurants specialize in organic and
health food. Some municipal and regional institutions
(such as school canteens and day-care centres) have
also started to provide organic menus.
The domestic food manufacturers produce about
80% of the foods consumed in Sweden and are
therefore an important target for foreign suppliers of
organic foods. These manufacturers have been quick
to adapt to new consumer trends, and offer both
ethnic and organic food items.
Another characteristic is that buyers of organic foods
are mainly found in the large metropolitan areas and
in university towns. In the Greater Stockholm area,
with about 1.5 million inhabitants, the largest fruit
distributor reports that sales of organic fruits and
vegetables now account for 5% of its total sales.
A general problem with organic foods is the price
differential with the corresponding conventional
foods; this is especially true of newly introduced
organic food items. Even though a few organic foods
are priced only slightly more than the conventional
varieties, the price difference is generally between
20% to 40% and often higher. To enlarge the market
for organic foods, the price difference should not
exceed 10%, according to trade analysts.
Here are some examples of the price differential for
various products: beef 20% - 25%, milk 15% - 20%,
wheat flour 70%, fresh potatoes 15% -50%, muesli
(breakfast cereals) 15% - 25%, and coffee 0% - 20%.
It is generally believed that environmental awareness
among consumers will continue to be high. With
increased availability of organic foods, which will
lead to lower unit prices, the market for organic foods
should grow substantially. It should also be noted that
three of Sweden’s largest supermarket chains – ICA,
Gröna Konsum (KF) and Hemköp (D&D) – have all
set sales targets for organic foods, which if
implemented, will expand the market four to five
times. This means that within the near future, organic
foods could account for 4% - 5% of total food
consumption in Sweden.
Sales promotion and marketing
Even though food manufacturers and retail chains
advertise their awareness of environmental issues and
231
their commitment to developing the market for
organic foods, individual organic food items are in
general not actively promoted. One of the main
reasons is the scarcity and irregular availability of
certified organic products. Sales promotion and
marketing activities include campaigns offering
goods at reduced retail prices, which usually raises
sales of the promoted products four- to fivefold. It is
also a fact that when specific organic products are
promoted, sales rise even higher. This means that
active marketing efforts for a particular organic
product should be undertaken only when the parties
involved can be absolutely sure that problems of
availability and reliability of deliveries have been
dealt with.
It is clear that when active marketing of specific
organic food items becomes more common, it will
substantially enlarge the market for organic food
products as a whole.
Market access
Food laws
EU regulations on food labelling, nutritional infor mation, additives and food con trol are appli cable in
Sweden, which is an EU member. How ever, during a
transitional period, some Swedish regulations may
still be applicable. Additional information can be
obtained from the National Food Administration
(whose address is given in the annex to this chapter).
In order to be imported as organic products into
Sweden or to be traded as such, these products have to
be certified by a control organization. KRAV, which is
owned by parties involved in the production and
distribution of organic products – i.e. growers, food
manufacturers, importers, wholesalers and retailers –
issues the only organic label recognized by the
Swedish retail trade. If other labels are used, they must
be accepted by KRAV or comply with EU regulations.
However, a few import ers also sell products that are
certified by other control organizations. These
include SKAL, FVO, Ovana, Ecocert and
EKO-BCS.
Swedish control organizations
In line with EU regulations, the Swedish Parliament
has designated two organic organizations, KRAV (the
Swedish Organic Agriculture Association) and the
Swedish Demeter Association, as official inspection
bodies.
KRAV, the domi nant con trol organi za tion. KRAV is a
cooperative society consisting of 22 member
organizations. Any company or organization with
nation wide cov erage and with an interest in obtaining
KRAV certification may become a member. Its
cur rent mem bers are drawn from the farming, trade,
processing, animal protection, environmental and
con sumer sec tors.
The objectives of KRAV are: to formulate standards
for organic production; stimulate the development of
methods of organic farming; inspect and certify
organic production; disseminate information on
organic production; and promote organic production.
All pro ducers that are mem bers of, and inspected by,
KRAV are authorized to mark their organic products
with the KRAV symbol. KRAV has the right to inspect
the handling of these products at all stages, from
cultivation to the retail trade. The KRAV logo
indicates, for instance, that vegetable products have
been grown without any chemical pesticides or
fertilizers, that animal products come from animals
that are well taken care of and have free outdoor
access, and that pro duc tion does not involve the use of
genetically modified organisms. To guarantee these,
KRAV inspectors regularly inspect farms, shops,
processing facilities, restaurants, etc. KRAV is an
active member of IFOAM.
In addition to crop production and animal husbandry,
KRAV certifies the following: processing, distribution
and handling, apiculture, cultivation of wild berries
and mushrooms, import operations, shops, restaurants,
textiles, and the use of production inputs.
Only KRAV-accepted import products can be sold as
KRAV certified. KRAV works closely with the
IFOAM accreditation system in this respect. These
products should have labels which clearly state the
country of origin. Products that are sold unpacked
should have the following information on the
covering invoices and delivery notes: country of
232
origin, name of the control body, and indication of
approval by KRAV.
Import products may contain additives made from
KRAV-certified raw materials and using KRAVcertified processes. Food additives such as sweet eners, col ouring, pre serva tives, anti oxi dants, emul sifiers, thickening agents and stabilizers must be
approved by both the National Food Administration
and by KRAV. A list of approved additives is published annually. Wrapping and packaging materials
may not contain preservatives, fungicides or other
chemical agents. All wrap ping and pack aging materials should be envi ron mentally friendly.
KRAV also inspects and cer ti fies for eign com pa nies
which pro duce or package according to its stan dards
or those of IFOAM. In addition, it may enter into
collaboration agreements with foreign inspection
bodies; the latter are evalu ated by KRAV, IFOAM or
other third parties. These agreements are reviewed
every other year.
The Swedish distribution system for organic foods
consists of three different channels: integrated retail
and wholesale groups; importers, agents and
wholesalers; and food and beverage manufacturers.
ICA’s own label for organic products. The ICA
organic product range now includes fresh fruits and
vegetables, fresh meat and cured meat products,
deep-frozen products and packaged food products,
such as flour and grains, yellow peas and crisp bread.
Integrated retail and wholesale groups
As mentioned earlier, the Swedish food trade is
characterized by a relatively high degree of vertical
integration between the wholesale and retail trade.
No less than 70% of both the retail and wholesale
market is dominated by three trade groups, all of
which also import and distribute organic foods: ICA,
KF and D&D.
ICA Group
The ICA Group is the largest retailer and wholesaler
on the Swedish market for foods and other daily
consumer items and holds about 35% of the market.
In Sweden it has 2,100 independent retailers and is
joint owner of ICA Handlarnas AB, which handles
the Group’s purchasing, distribution, marketing,
retail development and financing operations. In early
1999, the Group merged with the Norwegian
company Hakon. The new ICA Group has more than
4,000 food stores in Sweden, Norway and Denmark
and is thus the largest retailing group in Scandinavia.
About 50 new organic products were introduced in
1997. Even though many product groups reported
large sales increases during the year (sales of organic
fruits doubled and those of vegetables went up by
15%), the market share for organic products remains
insignificant. The exceptions are carrots (which have
a 10% market share) and baby food (7%). However,
an important decision was taken in 1997 to raise to
10% by the year 2000 the proportion of ICA sales of
organic products in the product areas where these
products are available.
KF Group
The KF Group, which consists of KF (the Swedish
Cooperative Union) and 80 local retail cooperatives,
holds about 20% of total sales in the food retail trade.
KF started to market organic food products in 1990.
Sales have increased rapidly since and are expected
to reach SKr 400 million in 1998. This means that KF
holds between 35% and 40% of the Swedish market
for organic food products.
Of the 2,100 Swedish stores, about 500 have been
granted special ICA environmental status; they carry
a wide assortment of environmental products. The
objective is to increase the number to 750 by the year
2000. ICA also has about 100 stores that have been
certified as ‘ICA Environmental Stores’.
The organic product range con sists of 350 prod ucts,
of which 200 prod ucts are mar keted under KF’s own
brand for environmental friendly products, Ängla mark. In 1997, sales of Änglamark goods reached
SKr 250 million ($52.5 million), corresponding to
1% of all food sales.
ICA has launched some 200 organic food products, of
which 70 are marketed under the SUNDA brand,
During the two years to 1998, sales of Änglamark
prod ucts have risen by approxi mately 50% per year.
Most of these prod ucts are sold with the KRAV logo,
with the excep tion of prod ucts not cov ered by organic
regulations. Even though Änglamark products are
not priced higher than the equivalent conventional
products, company policy dictates that products
carrying the brand have to be as profitable as other
brands. In 1998, organic prod ucts accounted for 1%
of total sales by value, but KF expects this figure to
rise to around 5% within the next few years. In order
to reach this target, the Änglamark selection has to
expand strongly.
The KF Group has 1,100 food stores in three retail
formats: Gröna Konsum super mar kets, Prix dis count
stores, and Obs, B&W and Robin Hood hyper mar kets.
Gröna Konsum runs 450 stores, of which 200 are
KRAV-certified to carry non-packaged fresh
organic pro duce. Gröna Konsum, Swe den’s largest
supermarket chain, holds 6% of the overall food
retail market. Its share in the national organic market
is far bigger at around 20%. In terms of value, its
sales of organic foods reached SKr 200 mil lion in a
recent year, equivalent to 2.5% of its total food
sales; the goal is to raise this per centage to 10% by
the end of 1999.
Each retail chain within KF decides which
assortment to carry. To benefit from economies of
scale, all deci sions con cerning the Ängla mark brands
– purchasing control, selection coordination,
logistics, marketing and quality control – are made
cooperatively.
It should be noted that KF imports only readypackaged goods. All fresh produce is imported by
Saba Frukt & Grönt, which KF partly owns.
D&D Group
The D&D Group is a newly formed joint venture
between the wholesaling and retailing group Axel
Johnson and independent retailers. The Group, which
started operations in early1999, now comprises both
the wholesaling company and the retail group, which
consists of 1,000 supermarkets and convenience
stores. It has about 18% of the overall market.
Dagab is the principal wholesaler for several retail
chains within the D-Group (Vivo, Spar, etc.), the
Hemköp chain, and convenience stores. However,
fresh fruits and vegetables are mainly supplied by
Saba Frukt & Grönt. Dagab started to market
organic and environmental products in 1995 under
the Fauna brand. The brand is now used on around
20 products, including pasta, muesli, cornflakes,
grains, rice, crisp bread, jam and preserved
vegetable products. Importing of both organic and
conventional products is carried out by D&D Unil,
which coordinates its purchasing activities with
United Nordic, a company co-owned by Dagrofa
(Denmark), Unil (Norway) and Tuko Spar
(Finland).
The D&D chain with the largest assortment of
organic products is Hemköp, owned by Axel
Johnson. The chain has some 100 large supermarkets
all over Sweden. Hemköp reports that in 1997 about
2.5% of its total food sales were organic. Its aim is to
raise that figure to 10% by the year 2000.
Importers, agents and wholesalers
The two largest importers and wholesalers of fresh
produce import organic products. Both companies are
directly connected with the dominant retail groups.
The importer and wholesaler Saba Frukt & Grönt
holds about 50% of the Swedish market for fresh
fruits, vegetables and flowers. About 60% of the
com pany is owned by the American fruit and vegeta bles group Dole Food Com pany; the other owners
are the D&D Group (25%) and KF (15%). The
catering sector is one of its impor tant cus tomers.
Saba imports bananas through two subsidiaries,
Banan-Kompaniet (Chiquita) and Skandinaviska
Bananimporten (Dole, Fyffes, etc.). Another Saba
subsidiary is FTK in the Netherlands, one of Europe’s
leading importers of tropical fruits.
ICA Frukt & Grönt is part of the ICA Group and is the
second largest importer and wholesaler of fresh fruits
and vegetables in Sweden, of which it has a market
share of about 30%. Its main customers are food
stores within the ICA Group. It carries a large
assortment of organic fresh produce.
Biodynamiska Produkter (BP), another important
company, is a specialist importer of organic products,
both fresh and packaged. BP imports fresh produce
from other EU countries and from other countries in
Europe, Asia, Africa and Latin America. Besides
supplying other wholesalers (including Saba and
ICA), BP sells direct to supermarket chains and
health food stores, as well as to the catering sector
and the food manufacturing sector.
234
BP has a large range of packaged products of which a
substantial part is imported. The total range consists
of more than 1,000 different organic products.
q
Dagsmeja is a small specialized producer and
importer of organic cereal and other products.
q
Other companies importing fresh organic produce are
Direkt Frukt & Grönt, Alt-Grönt and Samodlarna.
Samodlarna is mainly a buying and marketing
organization for domestic farmers and gardens but it
also imports some products.
In addition, the following companies trade in organic
berries and mushrooms:
q
Norrfrys: wild berries;
q
Olle Svensson: wild berries;
q
BjörnMat: wild berries and wild mushrooms;
q
Samodlarna: cultivated berries.
Ekokött (EcoMeat) is owned by the cooperative
Scan Group; it distributes and markets domestic
organic meat products.
In addi tion to the above, various agents are active in
the market. Some of them are also importers, and deal
mainly with either raw mate rials for the food industry
or branded products, especially health foods and
beverages.
It should be noted that in addition to domestically
based companies, a number of foreign groups operate
in Sweden, mostly from Denmark and the
Netherlands.
The catering sector
There are several specialized importers of packaged
organic foods, of which the largest are Biodynamiska
Produkter and Kung Markatta. Organic products are
also imported by a large number of companies
specializing in certain product groups. Some
companies are described below.
q
Kung Markatta is a medium-sized wholesaler
and importer. The company sells 800 categories of
prod ucts (some of which are marketed under its own
label) and has the largest assortment of KRAVlabeled prod ucts. It also markets produce carrying the
fair trade label. About 60% of its sales are to the
health food sector and 25% to super mar kets. Its sales
to super mar kets consist mainly of pasta, dried fruit,
rice, seeds, oils, soy prod ucts, herbs and spices, and
coffee (which is also fair trade labelled). Its other
customers are restau rants and food manu fac turers.
q
Torfolk Gård produces and imports fruit
preserves, chilli, pesto and other sauces, tomato
products, vinegar and wine, among other products.
Distribution to the catering sector is dominated by a
few large and specialized catering wholesalers, which
engage to varying degrees in the import of organic
foods. The most important of these groups are:
q
Servera (D&D Group);
q
Meny (ICA Group);
q
Martin Olsson;
q
Service Grossisterna.
There are about 300 KRAV-certified domestic
manufacturers producing organic food products.
They include farmers’ cooperatives, large
multinationals and family-owned companies, of
which sev eral are small or medium- sized. A selected
list of KRAV-certified manufacturers of organic
foods and bev er ages is given below.
Products
q
Sackeus is an importer of organic foods and
goods carrying the fair trade label, including coffee
(Café Organico), cacao, tea, peanut butter, honey and
spices.
Baby food
Semper, Nestlé
Cereal and bread products
Cerealia (flour, cereals, plain
bread), Juvel (flour, rice and
plain bread), Wasabröd (crisp
bread), Göteborgs Kex (biscuits,
cookies), Saltå Kvarn (flour,
grains, bread), SLR (feed)
Dairy products and juices
Dairy cooperatives: Arla,
Skånemejerier, Milko, NP,
Norrmejerier
Canned food, fro zen food,
pre pared fruits and vege ta bles,
po tato prod ucts, ready- to- eat
dishes
Procordia Foods (Orkla), Nestlé,
Nutana, Scan Foods (Swedish
Meats)
q
Garbo Food imports and markets several
organic products such as olive oil, vinegar, mustard
and pasta.
q
Biofood imports several products, including
vegetable oils, syrup, sugar, dried fruits, raisins,
seeds, pasta, and milk powder.
Companies
235
Products
Companies
Herbs and spices
Nordfalks, Kraft Freia Marabou
(part of Kraft Foods)
Coffee
Kraft Foods (Gevalia/Maxwell/
Blå Mocca), Arvid Nordquist
(Classic), Löfbergs Lila, Zoéga
(Nestlé), Kaffebönan
(Neuteboom), Karlbergs
(Aroma)
raw materials or ingredients import all or part of their
requirements either direct or through importers. The
following wholesaling companies are listed as
KRAV-certified importers of organic raw materials
and ingredients:
q
Abr Lundberg
Ice-cream
Hemglass, Carlshamn Mejeri,
SIA Glass
q
Contifood Smith & Co.
Meat and cured meat products
Scan Foods (Swedish Meats),
Samfood
q
Appelkvist Fryseri (berries)
Oils and fats
Karlshamns (oils and fats, feed),
Carlshamn Mejeri (margarine,
ice-cream)
q
Eco Trade (cereals)
q
Verner Frang (cacao)
Potato snacks
Water, soft drinks, beer
Estrella, Chips OLW, Dalslands
Chips
Åbro
The food manufacturers using organic products as
For logistic, food safety and environmental reasons,
Swedish manufacturers generally prefer to buy their
raw materials either from domestic growers and
processors or from suppliers in nearby countries.
Market prospects
As shown, Sweden is a relatively large consumer of
organic foods, in particular of dairy products and
fresh vegetables, but also of many other food
products. Furthermore, demand for organic products
has increased significantly in recent years and
meeting that demand is a problem. That being said,
the market share of organic products has not yet
exceeded the 1% mark.
Since organic foods are sold predominantly through
supermarkets, it is of interest to prospective suppliers
to note that the leading supermarket chains have all
set high targets for their sales of organic foods. If
reached, these would raise the current market share
four or five times. Additionally, the catering sector
has just recently started to show interest in offering
their customers organic menus. This indicates that
within a few years organic foods could account for
4% - 5% of total Swedish food consumption.
The planned expansion of the organic food market
also implies that new suppliers are needed, including
suppliers abroad. This is especially true of products
that are not produced in Sweden, such as citrus and
tropical fruits, rice, green coffee, tea, cacao, and
spices. Other product groups of interest are
vegetables, deciduous fruits and berries, since the
domestic output is insufficient to meet demand.
There should be market opportunities for exporters of
processed food items, such as juices, canned fruits,
biscuits, pastas, snacks, oils, vinegar, condiments,
honey and confectionery. Another product group
with good prospects is organic fish and crustaceans,
farmed as well as wild.
Though most industry people seem to agree that
imports of organic food products will rise
substantially in the next few years, the comparatively
high consumer prices may impede market
development. According to trade analysts, in order to
capture a significant market share, the price
differential should not exceed 10%. However, it
should be possible to market organic products priced
at higher levels, but only if value added is associated
with the product, such as quality, taste or
convenience.
Annex
Sweden: selected addresses*
RETAIL GROUPS
D&D Unil AB
Anderstorpsvägen 22
171 78 Solna
Tel: +46 8 734 4416
Fax: +46 8 7357756
http://www.dod-dagligvaror.se
ICA Handlarnas AB
171 93 Solna
Tel: +46 8 585 500 00
Fax: +46 8 585 500 09
http://www.ica.se
KF
PO Box 15200, 104 65 Stockholm
Tel: +46 8 7431423
Fax: +46 8 7431575
http://www.kf.se
IMPORTERS
Animal feed
Foderringen HB, Fori
PO Box 814
721 22 Västerås
Tel: +46 21 108100
Fax: +46 21 187291
Vänfor HB
PO Box 2093
531 02 Lidköping
Tel: +46 510 88757
Fax: +46 510 21944
Coffee
Arvid Nordquist H.A.B.
PO Box 1285
171 25 Solna
Tel: +46 8 7991800
Fax: +46 8 294162
(Coffee roaster; also imports
branded packaged foods)
___________________________
Biodynamiska Produkter
PO Box 42
153 21 Järna
Tel: +46 8 55170830
Fax: +46 8 55171337
(Green coffee; also imports fresh
produce and packaged foods)
Kaffebönans Rosteri AB
Kvarngatan 13
784 63 Borlänge
Tel: +46 243 23 95 60
Fax: +46 243 23 31 89
roasted coffee)
Kraft Freia Marabou AB
PO Box 615
801 26 Gävle
Tel: +46 26 656230
Fax: +46 26 106369
(Coffee roaster; also imports herbs
and spices)
Kung Markatta AB
Hjälmarsberg
705 90 Örebro
Tel: +46 19 307300
Fax: +46 19 320201
(Roasted coffee, packaged foods)
Löfbergs Lila AB
PO Box 1501
651 21 KARLSTAD
Tel: +46 54 140100
Fax: +46 54 140135
(Coffee roaster)
Merrild Coffee Systems AB
PO Box 50594
202 15 Malmö
Tel: +46 40 936010
Fax: +46 40 187869
(Roasted coffee)
Sackéus AB
Veterinärgränd 6
121 63 Johanneshov
Tel: +46 8 915020
Fax: +46 8 912838
(Roasted and instant coffee,
packaged foods)
Zoégas Kaffe AB
PO Box 7073
250 07 Helsingborg
Tel: +46 421 93300
Fax: +46 421 47680
(Coffee roaster)
Fresh fruits & vegetables
AltGrönt AB
Vargmötesvägen 14
186 30 Vallentuna
Tel: +46 8 511 700 60
Fax: +46 8 511 763 64
(Fruits and vegetables)
BananKompaniet AB
PO Box 27294
102 53 Stockholm
Tel: +46 8 6679160
Fax: +46 8 6613607
(Bananas)
Biodynamiska Produkter
PO Box 42
153 21 Järna
Tel: +46 8 55170830
Fax: +46 8 55171337
(Fresh produce and packaged
foods)
Direkt Frukt och Grönt AB
Flintrännegatan 21
211 24 Malmö
Tel: +46 40 180900
Fax: +46 40 180901
Frukt & Grönsaksspecialisten
256 69 Helsingborg
Knut Påls Väg 8
Tel: +46 42 201160
Fax: +46 42 153727
ICA Frukt & Grönt
PO Box 713
251 07 Helsingborg
Tel: +46 42 189000
Fax: +46 42 189288
Marianne’s Farm AB
Dalsgård 2393
262 92 Ängelholm
Tel: +46 422 07133
Fax: +46 422 07049
(Vegetables)
Saba Frukt & Grönt AB
PO Box 9065
120 05 Årsta
Tel: +46 8 6026000
Fax: +46 8 6026038
Samodlarna Svea
Fabriksgatan 3
684 00 Munkfors
Tel: +46 563 52530
Fax: +46 563 52191
(Fresh produce, dried vegetables,
cereals, packaged foods)
Samodlarna Sverige
PO Box 16 263
103 24 Stockholm
Tel: +46 8 14 19 01
Fax: +46 8 14 50 06
237
Fax: +46 454 31375
(Margarine, vegetable oils,
ice-cream)
Tel: +46 31 293650
Fax: +46 31 292943
(Packaged foods)
CHE-BE Trading AB
PO Box 247
151 23 Södertälje
Tel: +46 8 55032890
Fax: +46 8 55030277
(Soy products, canned vegetables,
jasmine rice, etc.)
Gösta Appelkvist Fryseri AB
Skansen
272 36 Simrishamn
Tel: +46 414 12280
Fax: +46 414 14112
(Frozen foods)
Dagsmeja Ren Mat HB
Verkstadsvägen 24
245 34 Staffanstorp
Tel: +46 46 253600
Fax: +46 46 252111
(Cereal and other products)
Di Luca Branded Food AB
Bondegatan 29
6 TR, 116 33 Stockholm
Tel: +46 8 6419569
Fax: +46 8 6404079
(Pasta products, vegetable oils)
EnarSahn AB
Stenslingan 4
182 34 Danderyd
Tel: +46 8 7550706
Fax: +46 8 7550706
(Fruit and vegetable juices, canned
vegetables, fruit purées)
Other foods
Arvid Nordquist H.A.B.
PO Box 1285
171 25 Solna
Tel: +46 8 7991800
Fax: +46 8 294162
(Imports branded packaged foods;
coffee roaster)
Biofood AB
Verkstadsvägen 14
137 37 Västerhaninge
Tel: +46 8 50020000
Fax: +46 8 50024215
(Vegetable oils, sugar, syrup, dried
fruits, raisins, seeds, pasta
products, milk powder)
Björnekulla Fruktindustri AB
Tvärgatan 1
265 31 Åstorp
Tel: +46 42 56400
Fax: +46 42 50525
(Fruit preserves, juices, canned
vegetables)
Carlshamn Mejeri AB
374 82 Karlshamn
Tel: +46 454 82500
Falcon Bryggeri AB
PO Box 164
311 22 Falkenberg
Tel: +46 346 57105
Fax: +46 346 17155
(Brewery owned by Carlsberg,
Denmark)
Föreningen Mana EkoSol
c/o Groth, Erikshällsg 40
151 46 Södertälje
Tel: +46 8 55086508
Fax: +46 8 55031967
(Herbs and spices)
Formidabel AB
Kvarnbyvägen 13
212 36 Malmö
Tel: +46 40 497470
Fax: +46 40 497420
(Herbs and spices)
Helhetshälsa AB
59293 Borghamn
Tel: +46 143 20200
Fax: +46 143 20208
(Vegetable oils)
Hilda & Hulda AB
Folkungavägen 1B
611 34 Nyköping
Tel: +46 155 286400
Fax: +46 155 286444
(Roasted soy products)
HNC Agenturer
PO Box 154
147 23 Tumba
Tel: +46 8 53030987
Fax: +46 8 53035425
(Bread products)
Håkansson Tony
Slättåkra Gård
230 42 Tygelsjö
Tel: +46 40 466300
Fax: +46 40 469666
(Fresh produce)
JO-Bolaget Fruktprodukter HB
Torsgatan 14
105 46 Stockholm
Tel: +46 8 7895271
Fax: +46 8 7895480
(Juice and nectars)
Karlshamns AB
Västra kajen
374 82 Karlshamn
Tel:+46 454 82424
Fax: +46 454 82820
(Oils and fats)
Kraft Freia Marabou AB
172 85 Sundbyberg
Tel: +46 8 627 10 00
Fax: +46 8 98 61 00
(Chocolate products)
Frebaco Kvarn AB
PO Box 878
531 18 Lidköping
Tel: +46 510 86000
Fax: +46 510 86019
(Cereal products)
PO Box 615
801 26 Gävle
Tel:
+46 26 65 62 30
Fax:
+46 26 10 63 69
herbs and spices)
Garbo Food AB
Hälleflundragatan 12
426 58 Västra Frölunda
PO Box 156
751 04 Uppsala
Tel:
+46 18 65 56 00
238
Fax:
+46 18 69 27 20
(Sauces and dressings, other
packaged foods)
Kung Markatta AB
Hjälmarsberg
705 90 Örebro
Tel: +46 19 307300
Fax: +46 19 320201
(Packaged foods)
Kvarn AB Juvel
PO Box 8878
402 72 Göteborg
Tel: +46 31 7791600
Fax: +46 31 220579
(Cereal products, rice)
Natura AB
Almarkaröd
242 92 Hörby
Tel: +46 415 62107
Fax: +46 415 62035
(Fresh produce)
Nordfalks AB
PO Box 63
431 21 Mölndal
Tel: +46 31 674200
Fax: +46 31 875045
(Herbs and spices, tea, Mexican
foods)
Ölands Frö AB
PO Box 58
380 62 Mörbylånga
Tel: +46 485 40660
Fax: +46 485 40329
(Dried vegetables)
Raggårdens Produkter AB
Arentorp
534 94 VARA
Tel: +46 512 13490
Fax: +46 512 13077
(Fresh produce, preserved
vegetables)
Risenta AB
PO Box 7411
103 91 Stockholm
Tel: +46 8 6797680
Fax: +46 8 6115366
(Health foods, dried vegetables,
seeds, etc.)
Råby Biogrönt AB
Råby 4, PL 250
242 92 Hörby
Tel: +46 415 311156
Fax: +46 415 311156
(Fresh produce)
Sackéus AB
Veterinärgränd 6
121 63 Johanneshov
Tel: +46 8 915020
Fax: +46 8 912838
(Fair trade labelled and organic
packaged foods, coffee)
Samodlarna Svea
Fabriksgatan 3
684 00 Munkfors
Tel: +46 563 52530
Fax: +46 563 52191
Saltå Kvarn AB
Saltå
153 91 Järna
Tel: +46 8 55150280
Fax: +46 8 55150240
(Bread, flour and other cereal
products)
Seege AB
PO Box 123
311 22 Falkenberg
Tel: +46 346 55900
Fax: +46 346 80525
(Flour, grains and breakfast cereals)
Semper Foods AB
105 46 Stockholm
Tel: +46 8 6773271
Fax: +46 8 6773101
(Baby foods, health foods, herbal
salt, raw materials and ingredients)
Svenska Nestlé
267 81 Bjuv
Tel: +46 42 86000
Fax: +46 42 78300
(Packaged foods, raw materials for
manufacture)
Svenska Nutana AB
Ekebyholm
762 91 Rimbo
Tel: +46 175 70905
Fax: +46 175 70190
(Canned and frozen foods, cereals
and grains)
Torfolk Gård AB
Ö Skymnäs
684 95 Höje
Tel: +46 563 72368
Fax: +46 563 72066
(Fruit preserves; chilli, pesto and
other sauces; tomato products;
vinegar; wine)
Vinägron AB
Skogsvägen 1
417 29 Göteborg
Tel: +46 31 228860
Fax: +46 31 518351
(Vinegar)
Vårgårda Kvarn
PO Box 136
447 24 Vårgårda
Tel: +46 322 23085
Fax: +46 322 24273
(Cereal products)
Wasabröd AB
682 82 Filipstad
Tel: +46 590 18100
Fax: +46 590 18500
(Crisp bread, rice crackers)
Raw materials and ingredients
for food manufacturers and
packers
B. Engelhardt & Co AB
PO Box 49
421 21 Västra Frölunda
Tel: +46 31 490290
Fax: +46 31 455782
Contifood Smith & Son
PO Box 104
201 21 Malmö
Tel: +46 40 71545
Fax: +46 40 236071
Eco Trade AB
PO Box 905
601 19 Norrköping
Tel: +46 11 218000
Fax: +46 11 126670
(Cereal products, dried vegetables)
R. Lundberg AB
PO Box 104
201 21 Malmö
Tel: +46 40 71545
Fax: +46 40 236071
Verner Frang AB
Box 313
503 11 Borås
Tel: +46 33 12 78 00
Fax: +46 33 10 64 99
(Cacao)
Seeds and planting materials
Frökompaniet Landskrona
Bromsgatan 5
261 35 Landskrona
Tel: +46 418 16860
Fax: +46 418 28510
(Onion sets, seeds)
Lindbloms Frö
PO Box 86
277 21 Kivik
Tel: +46 414 70880
Fax: +46 414 70009
(Onion sets, seeds)
Olssons Frö AB
Mogatan 2
254 64 Helsingborg
Tel: +46 42 155540
Fax: +46 42 156390
(Onion sets, seeds)
Svalöf Weibull Trädgård AB
276 50 Hammenhög
Tel: +46 414 443800
Fax: +46 414 43990
(Onion sets, seeds)
Törnvik Gård AB
Törnvik
179 65 Stenhamra
Tel: +46 8 56024161
Fax: +46 8 56024459
(Onion sets)
OTHER USEFUL
ADDRESSES
Association of Swedish
Chambers of Commerce
and Industry
PO Box 16050
103 21 Stockholm
Tel: +46 8 555 100 37
Fax: +46 8 566 316 37
http://www.cci.se
239
Federation of Commercial Agents
PO Box 1137
111 81 Stockholm
Tel: +46 8 411 00 22
Fax: +46 8 411 00 23
http://www.agenturforetagen.se
National Food Administration
PO Box 622
751 26 Uppsala
Tel: +46 18 175500
Fax: +46 18 105848
http://www.slv.se
Föreningen för Rättvisemärkt
(Member of Fair Trade Labelling
Organization International (FLO)
Drakenbergsgatan 11
117 41 Stockholm
Tel: +46 8 668 03 50
Fax: +46 8 668 03 14
http://www.raettvist.se
Svenska Demeterförbundet
Skillebyholm
15391 Järna
Tel: +46 55157988
Fax: +46 55157976
GroLink AB
Torfolk
684 95 Höje
Tel: +46 56372345
Fax: +46 56372066
http://www.grolink.se
(Consultancy)
KRAV
(Swedish Organic Agriculture
Association)
PO Box 1940
751 49 Uppsala
Tel: +46 18 100290
Fax: +46 18 100366
http://www.krav.se
Swedish Board of Agriculture
551 82 Jönköping
Tel: +46 36 155000
Fax: +46 36 190546
http://www.sjv.se
Swedish Federation of Trade and
Service
103 23 Stockholm
Tel: +46 8 7627700
Fax: +46 8 7627777
http://www.svenskhandel.se
Chapter 11
SWITZERLAND
Switzerland is a small country with an area of just
over 41,000 sq km and a population of about 7
million, of which close to 20% are foreigners. The
country has three principal linguistic areas, and
approxi mately 73% of its popu la tion speak German,
21% French and 4% Italian. All three lan guages are
offi cial lan guages. Of the seven mar kets cov ered in
detail by this study, Swit zer land is the only one that is
not part of the European Union. However, it is a
member of the European Free Trade Agreement
(EFTA).
Switzerland is one of the pioneers of organic
agri cul ture, having ini ti ated biodynamic farming as
well as organic (natural) gar dening in the 1930s. The
Research Insti tute of Organic Agri cul ture (FiBL) was
set up in 1974; it organized the first Scientific
Conference of IFOAM in Sissach (near Basel) in
1977. Though organic prod ucts have long been sold
through farm-gate sales and other direct sales and
later on through Bioläden (organic shops), the market
started to grow seri ously only after 1993 when the big
supermarket chain Coop began to market organic
food, followed by another big supermarket chain,
Migros, in 1996 ( see sec tion on dis tri bu tion chan nels,
pages 246 ff.).
Supply and demand
Production
The area under organic agriculture is expanding
rap idly in Swit zer land and reached over 70,000 ha, or
about 7% of the total cultivated land, in 1997. In
1998, organic agri cul ture accounted for an esti mated
8% of the total agri cul tural land, which is very high
compared with proportions in most countries. The
Euro pean (EU+EFTA) average is 1.45%.
Since 1991 the number of organic farms has risen
steadily from just below 1,000 to about 5,000 in
1998, cor re sponding to an average increase of 28%
annually. The highest growth rate occurred in
1995-1996; the figure for 1998 was just 8%. By the
end of 1999 the number of farms is expected to reach
5,600, and fur ther expan sion is antici pated.
The main crops are cereals for human con sump tion,
cereals for animal fodder, vegetables, maize (Indian
corn) and pota toes.
The country’s output of animal products includes
milk and other dairy products, meat and meat
products, and eggs. Organic dairy products are an
impor tant product group. The big gest dairy com pany
is Swiss Dairy Food Ltd, which resulted from a
merger between the Toni Group (a company in
Ostermundigen) and Säntis Milchver band (Gossau).
The next largest is the Emmi Group (Lucerne). There
are sev eral smaller com pa nies like Baer Küsnacht.
Organic farmers belong to more than 30 organi zations. The main umbrella organization is Bio
Suisse – the Vereinigung schweizerischer biologischer Landbau- Organisationen (VSBLO), Basel.
Market size
Since offi cial pro duc tion and for eign trade sta tis tics
on organic food and bev er ages are either incom plete
or non- existent, it is dif fi cult to give an exact pic ture
of the Swiss market.
CHAPTER 11 – SWITZERLAND
How ever, on the basis of data pro vided by FiBL and
Bio Suisse, the retail market for cer ti fied organic food
can be estimated at Sw F 500 million - Sw F 520
million in 1997 (roughly 2% of the total food
market), and between Sw F 560 mil lion and Sw F 580
million in 1998. About two thirds of organic sales
consist of items produced domes ti cally; the rest are
products not grown in Switzerland. They include
241
coffee, tea, cocoa, durum wheat, rice, millet, spices,
subtropical and tropical fruit, nuts and some dried
fruit. The import rate is gen er ally fairly low as market
access is difficult, mainly because of the privately
controlled labels on organic food and strict
requirements.
General
q
Though demand for organic food in Switzerland
cannot be covered by local production, with some
exceptions the range of imported products is fairly
lim ited. The main rea sons include the fol lowing:
q
q
q
Pineapples (from Ghana);
q
Mangoes (from Ghana);
The private farmers’ umbrella organization Bio
Suisse controls most of the market (75% today, a
share that was presumably even higher up to the
period ending 1997 when official legislation on
organic products was introduced).
q
Logistical difficulties with imports (small
quantities, insufficient distribution network, etc.).
Hazelnuts, figs, almonds, dried apricots and
raisins (Turkey, California);
Bananas, though consumers do not usually
make a distinction between organic and fair trade
(e.g. Max Havelaar) bananas;
q
Various berries, especially for the food industry
for the production of fruit preparations for dairy
products, bakery products, etc. (from Hungary);
q
q
q
The fact that these items are imported and in some
cases trans ported by air leads to regular dis cus sions
on whether they are fully ‘organic’ or ‘ecological’.
Bio Suisse does not permit prod ucts imported by air
to carry its logo.
The concept of organic food implies for many
consumers that the product has to be fresh and should
be transported to the market by the shortest possible
way, preferably from a neighbouring or nearby
regional producer.
Processed food, which is easier to handle from
the logistical point of view, was generally not
regarded as fully organic or completely natural by
many consumers.
Nev er the less, imports of organic food and bev er ages
are on the increase, mainly items not produced in
Switzerland but also items similar to domestically
pro duced goods that are in short supply. Some of the
main imports by product group and some supplying
coun tries/areas are listed below.
Most fresh fruits and vege ta bles are locally sup plied.
Imports include:
q
Lemons, oranges and other citrus fruit (mainly
from Italy and Spain);
Vegetables (for example, beans from Egypt).
This is the classic range of imported organics.
However, the overall Swiss market for dried fruits
and nuts is small. An estimated 40% of sales may
already be covered by organically or other
sustainably grown produce. In addition to organic
produce, consumers look for conventional products
not treated with SO2 (sulfur dioxide). Imports include
dried bananas, apricots, pineapples (small market),
man goes (very small market), and various nuts.
The market for deep-frozen organic food and
ready-to-serve mixes for catering is expanding.
Supplies are mainly obtained locally. Schmutz
242
Gemüse AG processes 8,500 tons of prod ucts in this
category.
There is a market for other forms of proc essed fruits
and vegetables, such as fruit juices, jams and
marmalades. Domestic processors include Hero in
Lenzburg and Biotta in Tägerwilen. Some raw
materials (e.g. tropical fruit juices, con cen trates or
pulp/purée, and frozen fruit) are imported. Imports
are small and are normally sourced through
middlemen in the European Union, notably in
Ger many and the Neth er lands.
Cereals, flour and bakery products
Swit zer land has many varie ties of bread. Dark bread
and bread made from mixed flours are popular.
Pieces of cereals, dried fruits and nuts are often added
to bread. The other major end- uses for organics are
break fast cereals (e.g. muesli), con fec tionery, snacks
and porridge. Though Switzerland has a sizeable
domestic production, imports of organic cereals
cover about one third of demand, and this despite the
fact that these imports are often sub ject to high import
duties and spe cial levies.
Sales of organic spices and spice prod ucts are rising
fast, and requirements need to be imported. One
retail organization is in the process of converting
from con ven tional to organic prod ucts to the fullest
extent pos sible.
Sugar and sweeteners
The organic market for this product group is small but
growing. It is cur rently esti mated at 100 - 200 tons of
organic sugar and about 30 tons of organic glucose
syrups. In gen eral, prices are very high, often two to
three times the price of con ven tional prod ucts. There is
also a market for organic honey, which is usually
considered a health product in any case. The
cer ti fi ca tion of organic honey is not yet fully regu lated.
Oil products
This is a highly pro tected market with spe cial levies
on imports of, for example, vege table oils, which are
regarded as com peti tors to butter. There is almost no
import market for organic products, with the
exception of olive and sun flower oils for which the
market is growing.
Dairy products
In this sector, organic products have an established
though small market share. Herbal teas have the
largest share in the market, fol lowed by choco late and
coffee. There is also a growing market for organic
tea from fair trade programmes (such as Max
Havelaar).
This is traditionally the most important organic
product group in Switzerland and the largest dairy
coop era tive, the Toni Group, actively pro motes sales
of organic products. In 1997 the Group processed
1,000 tons of organic milk. It has a range of more than
20 products of which the most important are
pasteurized whole milk, yoghurt with and without
fruits, butter, cream and cheese.
Herbs and spices
Other food products
Herbs enjoy a growing and prof it able market. They
are used for seasoning as well as for further
processing in the food industry into teas, herbal
candies, flavours and aromatic extracts. Though
some Swiss farmers in the moun tain areas spe cialize
in this product group, importing also takes place.
The fol lowing prod ucts of impor tance should also be
men tioned: baby food, meat and sau sages, fresh eggs,
yeast for making bread at home, and wine. Most of
these prod ucts offer few oppor tu ni ties for devel oping
coun tries, if any.
Consumer habits
Swiss con sumers buy organic food and bev er ages for
a variety of rea sons. According to a survey pub lished
by FiBL in 1998, the main rea sons are envi ron mental
and health concerns, followed by taste and other
factors. Usually, a price premium of 10% - 20% is
accepted, though this may be higher for some
243
products, say up to 40%. According to another
survey, 40% of Swiss con sumers buy organic food at
least once a week.
Promotion and advertising
As competition between the two largest
super market chains (Migros and Coop) is becoming
increas ingly keen, sales pro mo tion and adver tising
have become impor tant instru ments in the battle for
market share. This applies not only to food stuffs in
general but also to organic food and beverages.
Typical marketing and promotional techniques
include the fol lowing:
q
Heavy adver tising through national and regional
newspapers, flyers, the groups’ own weekly
promotional leaflets and newspapers, radio,
tele vi sion, the Internet, etc.
q
The supermarket chains are increasingly asking
suppliers to pay ‘listing fees’ when new products are
accepted for sale on their shelves.
q
Suppliers are asked to give special rebates or
discounts and to participate in promotional activities
by offering special packaging.
In addition, suppliers are being asked to provide
logistical extras in the form of spe cial pal lets, spe cial
pack aging, price stickers on retail packs, place ment of
EAN codes, taking prod ucts off the shelves when not
sold, etc. This fairly aggressive development, which
also takes place in other mar kets, makes it more and
more dif fi cult for for eign and even the smaller Swiss
pro ducers to enter the retail market direct.
Market access
Customs duties and restrictions
The Swiss customs tariff follows the Harmonized
System. Swiss customs duties are specific, that is,
they are levied on the weight of the product imported
and not on its value. Tar iffs are quoted in Swiss francs
per 100 kg gross weight. There are no spe cial tar iffs
on organic products which carry the same duties as
the equiva lent con ven tional goods.
There are high duties and/or spe cial levies on a range
of agricultural products such as sugar, cereals,
vege table oils and dairy prod ucts. In addi tion, for some
of these prod ucts spe cial import licences are nec es sary,
which normally can be obtained only by a Swiss
importer. For imports of meat and fishery products,
sani tary cer tifi cates and the like are also needed.
Exports of some prod ucts from devel oping coun tries
may be sub ject to pref er en tial rates of duty under the
Gen er al ized System of Pref er ences (GSP).
A value- added tax, which is cur rently 7.5%, has to be
paid by the first importer into Swit zer land. The VAT
rate is the same for imported and for domestically
pro duced goods.
have to meet the general requirements of the Swiss
laws and regulations applicable to all foodstuffs
(organic and con ven tional), including the fol lowing:
q
Food law and regulations;
q
Hygiene law and regulations;
q
Regulation on weight and declaration which
stipulates that the declaration has to be made in at
least one of three official languages (German, French
or Italian);
q
Regulations on pesticides, herbicides and heavy
metals.
Although the above regulations largely concern
con sumer packs and do not directly affect imported
bulk products, exporters should take them into
consideration as the end-products processed from
imported raw mate rials must con form to them.
Since 1 January 1998, the pro duc tion, proc essing and
marketing of organic products have been regulated
by the Swiss Regulation on Organic Farming
(Schweizer Bio-Verordnung), which is modelled on
EU regu la tions. The Swiss regu la tion is stricter than
EU law on some points and less so on others.
Organic food and bev er ages, whether imported or not,
In order to be mar keted as organic, a product must be
244
certified by a certification body conforming to
European standard EN 45011 (see chapter 2).
Swit zer land has the fol lowing cer ti fi ca tion bodies:
q
bio.inspecta: jointly founded by FiBL, Bio
Suisse and Demeter; located in Frick.
q
Institut für Marktökologie (IMO), based in
Sulgen.
q
Schweizerische Vereinigung für Qualitäts- und
Management Systeme (SQS), based in Zollikofen.
Another body, ABCert, is expected to be accredited
in the near future. The Swiss Accreditation Service
(SAS) and the Fed eral Office of Agri cul ture carry out
super vi sory activi ties in rela tion to cer ti fi ca tion. Until
the new law on organic food entered into force in
1998, the private standards of the Swiss organic
farmers’ organization, Vereinigung Schweizer BioLandbau-Organisationen (Bio Suisse) were commonly applied to organic pro duc tion and trade. Those
stan dards were and remain stricter than those of the
law. Pro ducers and traders who operate according to
these standards, and who are cer ti fied against them,
can label their prod ucts with the pri vate Knospe label.
This label is the most com monly used in Swit zer land.
The Knospe label consists of a graphic depicting a
bud and the let ters “BIO”. Only farmers, proc es sors
and importers of Swiss origin can obtain per mis sion
to use this logo. The word “Suisse” may be added to
the logo, indicating that a minimum of 90% of the
product is of Swiss origin. Additionally, the word
“Umstellung” must be added to the logo if the
product is from farms under con ver sion.
There are other labels of lesser but growing
importance, such as the MIGROS BIO Production
label of Migros, the largest retail organization in
Swit zer land. For Swiss prod ucts, Migros applies the
same stan dards as BIO SUISSE, but its require ments
for imports are less demanding.
In total, about 5,000 Swiss farmers and 600
companies are registered as organic units; some
com pa nies are reg is tered more than once. Bio Suisse
has around 520 reg is tered com pa nies, MIGROS BIO
Production about 60, Demeter about 30, others about
75.
Importers and agents
As the Swiss market is comparatively small and
highly segmented (with numerous small and
medium-sized companies), it is usually better to
export organic prod ucts through an importer rather
than to sell direct to the food industry or the retail
trade. Importers can provide the exporter with
necessary information on market requirements,
quality standards, market access and import
for mali ties; they can also offer the logis tical serv ices
required by the final customer. Many industrial
buyers are not used to car rying out nego tia tions in
dif ferent lan guages. They insist on DDP (deliv ered
duty paid) terms in Swiss francs. They are less ready
to take risks on quality, so they usu ally prefer to buy
through inter me di aries they know.
Several importers and agents specialize in or have
sections dealing with organic food. They include
Kündig & Cie. AG (based in Zürich), Trawosa AG
(Ror schach) and Var istor AG (Lengnau). The names
and addresses of these and other enti ties are given in
the annex to this chapter.
Food industry
Though Switzerland is the home country of Nestlé,
the world’s biggest food company, and several other
major food manufacturers, organic food processing is
carried out mainly by small and middle-sized units.
These units focus on the domestic market, though
several also target export markets, largely in the
European Union. Among the companies with
well-known products are Bio-Familia AG (breakfast
cereals), E. Zwicky AG (cereal and muesli mixes)
and Bioatta AG (juices).
Retail trade
The Swiss food retail market is dominated by two
supermarket chains, Migros and Coop Schweiz,
which together control an estimated 70% of the
country’s food sales. They are also pre-eminent in the
organic food business.
245
Coop Schweiz
items (produced, for instance, out of 100% recycled
material) under the label Oecoplan.
Coop Schweiz sells the most organic food and
beverages and accounts for more than 30% of all
organic food sales in Switzerland. It is, however,
second to Migros in terms of overall sales. Its
turnover of food and non-food items amounted to
about Sw F 11 billion in 1997. Its sales of organic
food and beverages climbed from Sw F 116 million
in 1996 to Sw F 168 million in 1997 and Sw F 200
million in 1998. It expects to attain sales of about
Sw F 500 million in the year 2000. Like FDB in
Denmark, for example, Coop has clearly stated sales
targets (given in terms of percentage of overall sales)
for specific organic food items. It also has a policy of
minimizing price premiums in relation to
conventional food products.
Coop owns a number of food processing plants,
including Arni AG (confectionery), Panofina AG
(bakery products), Pasta Gala AG (pasta) and
Stadtmühle CMZ. Some plants produce organic
products.
Migros
With total sales of food and non-food items
amounting to Sw F 13 billion in 1997, Migros is the
largest retail group in Switzerland. However, its share
of the market for organic food and beverages is
estimated at only 15% (valued at about Sw F 85
million in 1997), roughly half of Coop’s share.
Migros currently offers about 150 organic food items,
and is trying hard to expand sales. All organic food
products are certified and sold under the Migros Bio
logo, usually certified by FiBL or IMO.
Migros owns about 10 food processing plants,
including Jowa AG (bakery products, pastas), Frey
AG (chocolate and confectionery), Estavayer SA
(dairy products, drinks, sauces, etc.), Bischofzell AG
(canned and frozen food, jams, etc.) and Midor (ice
cream, desserts, cookies), several of which produce
some organic food products.
Since the mid 1990s Coop has strongly pushed
organic food products, which are sold under its own
Naturaplan label and with the Bio Suisse (Knospe)
logo. Certification is carried out by Bio Suisse. The
range currently consists of more than 200 different
items (see list below) and is constantly being
expanded.
In a constant fight for market share, Migros has been
promoting strongly for over 20 years its range of
M-Sano products – mainly fruits and vegetables,
and meat and meat products. The focus is on the
mass market for healthy and environmentally
friendly products with value added. The concept is
probably based on the assumption that many, if not
most, consumers will not pay much more for
Coop also promotes textiles made from organic
organic products than for conventional ones. The
cotton under the label Naturline and other non-food
reasonably priced M-Sano product line has been an
alternative to organic products in the minds of many
consumers. The turnover in M-Sano products
Product group
Number of items
Product types
amounted to about Sw F 650 million in 1997.
Dairy
30
Milk, cream, butter, yoghurt,
Despite the success of this programme, Migros
cheese
is considering developing the Sano concept
Eggs
2
into another form, inter alia, in order to avoid
Pasta and rice
8
Fresh and dry
confusion with its Bio label.
Meat
30
Fresh meat, ham and sausages,
Frozen products
Bread and other baked
goods
Flour
Cereals
Wine
Fruit juices
Baby food
Oils
Spices and herbs
Tea
4
35
20
3
26
10
3
25
4
7
5
poultry
Vegetables, potatoes,
hamburgers
Mainly of Swiss origin
Muesli mixes and single cereals
All of Swiss origin
Juices and ready-to-use purée
All of European origin
Herbal teas of Swiss origin
Others
USEGO-Trimerco Holding is a large retail
buying group and wholesaler. It supplies about
5,000 retail outlets, including some 285 Primo
supermarkets, about 1,200 Vis-à-Vis stores, and
a large number of independent retailers, most of
which carry organic products (including goods
carrying the Bio Domaine and Knospe labels).
USEGO is also a majority owner of the food
discount chain Pick Pay AG, which has about
100 outlets.
246
A number of other supermarket chains also carry
organic food items (including Bio Domaine and
Knospe products). Among these chains are Volg AG
(based in Winterthur), Manor (based in Basel), and
Spar (in St Gallen).
Sales with other logos
Migros Bio
Others, including imported organics in
retail packs
84
50-70
Until the early 1990s, Bioläden (organic shops) were
the main sales outlets for organic food together with
farm-gate or direct sales. Reformhäuser (health food
shops), though of lesser importance, were also
amongst the first outlets for organic foods. Since then
sales of organic food in these types of shop have
stagnated or even declined while supermarket sales
have soared.
Catering
Retail sales by sales outlet and certification
logo
Bio Suisse started a project in 1998 in cooperation
with the company SV-Service in Zürich to deliver
organic food products to university canteens and to
Coop restaurants.
According to FiBL (based in Frick), the total retail
market for organic food and beverages (an estimated
Sw F 500 million - Sw F 520 million in 1997) can be
divided by sales outlet and certification logo as
follows:
Outlet
Value of sales
(Sw F ‘000 000)
Sales with the Bio Suisse (Knospe) logo
Coop
170
Health food shops
150
Farm-gate and direct sales
Spar, USEGO, etc.
30-50
15
Apparently the catering and institutional market for
organic food and beverages is not yet well
developed, though sales are growing. One company,
Delinat AG (of Heiden) is the exclusive supplier of
organic wines (of Swiss and other European origins)
to restaurants.
Special mention should be made of Swissair, the first
airline to use naturally grown products. It has utilized
these products since 1997, when it first applied the
concept naturalgourmet™ to all Swissair flights
from Switzerland. According to the plan, 90% of the
products needed to prepare meals should be naturally
grown by the year 2000 and, to the extent possible,
only organically grown products will be purchased.
Passengers will have a choice between organic and
conventional wines and beers. This important
initiative has the additional benefit of making
Swissair passengers more aware of health and
environmental issues.
Market prospects
Overall, the market for organic food products may be
expected to grow at a rate of 20% - 40% a year over the
next three to five years, the principal reasons being:
q
q
However, the Swiss market is likely to remain a
difficult one for exporters for a number of reasons,
including the following:
The consumers’ positive attitude to health food,
and naturally and ethically produced food.
To gain an edge over the competition, retailers
are offering customers ‘ethical’ products, including
organics.
q
Growing price pressure in the market for
conventional agricultural products will persuade
more and more farmers to go into organic farming,
which will raise domestic supplies.
q
The protective character of Bio Suisse, the most
important certification body with its very high
standards (on some points, these standards are stricter
than EU regulations).
q
Organic farming is promoted and subsidized by
the Government. In 1997, support amounted to
Sw F 47.5 million.
q
High quality standards in general and for
organic products in particular.
q
For most products with import potential, only
relatively small quantities are needed.
q
Growing competition and price pressure. The
assumption is that eventually organic products will
enjoy a premium of no more than 10% over
conventional food as consumers and even retailers
think that all food has to be as natural as possible
anyway, and producers of foodstuffs, whether fully
organic or not, will move in that direction.
Nevertheless, Switzerland is an important market that
247
should not be ignored by exporters in developing
countries. The products with the best opportunities
are those that cannot be grown in Switzerland,
including coffee, tea and cocoa, citrus and tropical
fruits, rice, durum wheat and various spices. Other
products, such as off-season fruits and vegetables and
products in short supply, may also find openings in
the market. It should be noted that SIPPO, the Swiss
Import Programme (see the annex for the address),
provides assistance to exporters in developing
countries.
Annex
Switzerland: selected addresses*
IMPORTERS OF ORGANIC
FOOD FOR RETAIL AND
RAW MATERIALS FOR THE
FOOD INDUSTRY
Biofarm-Genossenschaft
beim Bahnhof
4936 Kleindietwil
Tel: +41 62 957 80 50
Fax: +41 62 957 80 59
(Cooperative/wholesaler handling a
large range of products, mainly
cereals)
Claro AG
Schweizer Organisation für Fairen
Handel
Byfangstr. 19
2552 Orpund
Tel: +41 32 356 0700
Fax: +41 32 356 0701
(Handles fair trade products;
imports for organic shops and
Reformhäuser)
Giovanelli Fruchtimport AG
Schaffhauserstrasse 200
8500 Frauenfeld
Tel: +41 52 728 0909
Fax: +41 52 728 0900
(Specialist importer of fresh fruits)
Granosa AG
St. Gallerstrasse 117
9403 Goldach
Tel: +41 71 841 6423
Fax: +41 71 841 7726
(Importer of cereals and food raw
materials)
Hans Buob AG
Grenzstrasse 26
9430 St. Margrethen
Tel: +41 71 747 43 33
Fax: +41 71 747 43 34
(Specialist importer of dried fruits
and nuts)
Hans Kennel AG
Lättichstrasse 4
6342 Baar
___________________________
Tel: +41 41 761 2727
Fax: +41 41 761 2840
(Specializes in herbs and tea)
Heider Teeimport
Trockenloosstrasse 45
8105 Regensdorf
Tel: +41 1 840 1600
Fax: +41 1 840 1646
(Specializes in tea)
Hima la Vie
Avenue C.-F. Ramuz 101
1009 Pully
Tel: +41 21 729 6566
Fax: +41 21 729 6166
Kündig & Cie. AG
Stampfenbachstrasse 38
8023 Zurich
Tel: +41 1 368 25 71/368 2525
Fax: +41 1 362 8414
http://www.kuendig.com
(Handles a wide range of organic
raw materials and food products for
retail and industry)
Steiner Mühle AG
3436 Zollbrück
Tel: +41 34 496 8781
(Processor of cereals, especially for
Demeter)
Stutzer AG
Seminarstrasse 28
8057 Zürich
Tel: +41 1 360 3636
Fax: +41 1 360 3600
Suntra AG
Im Brühl 1
4123 Allschwill/Basel
Tel: +41 61 487 9100
Fax: +41 61 487 9105
(Trader in dried fruits and nuts,
processed fruits and vegetables)
Trawosa AG
Eisenbahnstrasse 41
9400 Rorschach
Tel: +41 71 844 98 40
Fax: +41 71 844 98 49
E-Mail: [email protected]
(Handles raw materials for the food
industry, particularly dried
vegetables)
Vanadis AG
Fischingerstrasse 66
8370 Sirnach
Tel: +41 71 966 37 77
Fax: +41 71 966 37 91
(Medium-sized company, often buys
via German organizations like
Rapunzel)
Varistor AG
Westrasse 5
5426 Lengnau AG
Tel: +41 56 266 50 60
Fax: +41 56 266 50 70
http://www.hitlne.ch/vari-food
(Agent/importer; deals with organic
food products, especially raw
materials for the food industry)
Via Verde AG
Brunnmatt
6264 Pfaffnau
Tel: +41 62 747 07 47
Fax: +41 62 747 07 37
(Specializes in distributing fresh
fruits and vegetables to smaller
retailers of organic food)
WHOLESALERS
Biogemüse Galmiz
Zährli 9
3285 Galmiz
Tel: +41 26 670 4242
(Fresh fruits and vegetables)
Somona GmbH
Bodenackerstrasse 51
4657 Dülliken
Tel: +41 62 354 646
Fax: +41 62 353 259
(Retail packs; handles supplies for
Reformhäuser, for example)
249
FOOD PROCESSORS/
MANUFACTURERS OF
ORGANIC PRODUCTS
2501 Biel/Bienne
Tel: +41 32 365 0111
Fax: +41 32 365 6226
(Packer of dried fruits and nuts,
honey)
Bio-Familia AG
Brünigstrasse 141
6072 Sachseln
Tel: +41 41 666 2555
Fax: +41 41 666 2550
http://www.bio-familia.com
(Cereal products, including muesli)
Neumühle Töss
Neumühlestrasse 40
8406 Winterthur
Tel: +41 52 202 64 31
Fax: +41 52 203 74 41
(Specializes in cereals and flours)
Bioforce AG
Grünauerstrasse
9325 Roggwil
Tel: +41 71 454 6161
Fax: +41 71 454 6162
(Vegetable salt and fresh plant
extracts)
Pronatec AG
Fröschenweidstrasse 10
8404 Winterthur
Tel: +41 52 235 0909
Fax: +41 52 235 0919
E-mail:
[email protected]
(Sugar, syrups, chocolate, cocoa,
vanilla, nuts)
USEGO AG
Industriestrasse 25
8604 Volketswil
Tel: +41 1 947 1414
Fax: +41 1 947 1535
(Bio Domaine)
Schmutz Gemüse AG
Dorfstrasse 25
3216 Ried bei Kerzers
Tel: +41 31 755 5621
(Processed fruits and vegetables)
Delinat AG
Haus zur Glocke
9410 Heiden
Tel: +41 71 898 8070
Fax: +41 71 898 8077
http://www.delinat.ch
(Supplier of organic wines)
Biotta AG
Pflanzbergstrasse 8
8274 Tägerwilen
Tel: +41 71 666 8080
Fax: +41 71 666 8081
(Fruit juices)
Haco AG
Worbstrasse 262
3073 Gümligen
Tel: +41 31 950 1111
Fax: +41 31 950 1515
(Cereal products and snacks)
Hauser + Cie AG
Neumühle Töss
Neumühlestrasse 40
8406 Winterthur
Tel: +41 52 202 6431
Fax: +41 52 203 7441
(Raw materials for the bakery
industry)
Hero
5600 Lenzburg
Tel: +41 62 885 5111
Fax: +41 62 891 5103
(Processed fruits and vegetables)
Hügli Nährmittel AG
Bleichestrasse
9323 Steinach
Tel: +41 71 446 9292
Fax: +41 71 446 2089
(Bouillons, soups, sauces, yeast)
Kentaur AG
Gässli 9
3432 Lützeflüh
Tel: +41 34 460 6111
Fax: +41 34 460 6166
(Cereals, baking mixtures)
Narimpex AG
Schwanengasse 47
Schweiz. Schälmühle E. Zwicky
AG
8554 Mühlheim-Wigoltingen
Tel: +41 52 763 17 44
Fax: +41 52 763 32 14
(Specializes in cereals and muesli
mixes, organic pet food)
Stadtmühle CMZ Zürich
Sihlquai 306
8031 Zürich
Tel: +41 1 447 2525
Fax: +41 1 447 2588
Swiss Alpine Herbs
Gassenmatte
3763 Därstetten
Tel: +41 33 783 2000
Fax: +41 33 783 2083
(Herbs and spices, fruits and
vegetables)
Migros Genossenschafts-Bund
Limmatstrasse 152
8005 Zürich
Tel: +41 1 277 2111
Fax: +41 1 277 2333/
277 2525
http://www.migros.ch
Migros-Genossenschafts-Bund
Service Agro-écologique
2, Rue de la Gare
1030 Bussigny
CATERING
Gate Gourmet Zürich AG
The Quality Caterer
8058 Zürich-Flughafen
Tel: +41 1 812 1212
Fax: +41 1 812 9192
http://www.swissair.com/ourservices/
air/gourmet.htm
(Swissair)
CERTIFICATION BODIES,
AUTHORITIES
AND OTHER USEFUL
ADDRESSES
Bio Suisse/VSBLO
Missionsstrasse 60
4055 Basel
Tel: +41 61 385 9610
Fax: +41 61 385 9611
Internet: [email protected]
Coop Schweiz
Thiersteinerallée 12
4002 Basel
Tel: +41 61 336 6666
Fax: +41 61 336 7491
http://www.coop.ch
bio.inspecta
Ackerstrasse
5070 Frick
Tel: +41 62 865 6300
http://www.bio-inspecta.ch
Manor AG
Reggasse 34
4058 Basel
Tel: +41 61 686 1111
Fax: +41 61 681 1192
Demeter-Verband
Grabenackerstrasse 15
4142 Münchenstein
Tel: +41 61 416 0643
Fax: +41 61 416 0644
250
FiBL - Research Institute of
Organic Agriculture
Department of Economy and
Standards
Ackerstrasse
5070 Frick
Tel: +41 62 865 7253/865 7272
Fax: +41 62 865 7273
http://www.fibl.ch
Institut für Marktökologie
(IMO)
(Institute for Market Ecology)
Poststrasse 8
8583 Sulgen
Tel: +41 71 644 9880
Fax: +41 71 644 9883
http://www.imo.ch
Schweiz. Vereinigung für
Qualitäts- und ManagementSysteme (SQS)
(Swiss Association for Quality and
Management Systems)
Industriestrasse 1
Postfach 686
3052 Zollikofen
Tel: +41 31 910 35 35
Fax: +41 31 910 35 45
Schweizerische Gesellschaft für
biologischen Landbau
(Bioterra)
Dubstrasse 33
8003 Zürich
Tel: +41 1 463 5514
Fax: +41 1 463 4849
(Small-scale gardening)
SIPPO - Swiss Import
Promotion Programme OSEC
Swiss Office for Trade Promotion
(OSEC)
Stampfenbachstrasse 85
PO BOX 492
8023 Zürich
Tel: +41 1 365 5151
Fax: +41 1 365 5221
http://www.osec.ch
Chapter 12
UNITED KINGDOM
Introduction
The dedication of some of the United Kingdom’s
agriculturists and naturalists in the first half of this
century led to developments which contributed
significantly to the foundations of the organic
move ment. It was as a con se quence of this work that
The Soil Asso cia tion (SA), which is still the leading
organi za tion in the coun try’s organic move ment, was
formed in 1946 and adopted as one of its aims the
fol lowing: “to bring together all those working for a
fuller under standing of the vital rela tion ships between
plant, animal and man”.
Some years later and at a time when the Gov ern ment
and global agro-chemical companies were directing
British agriculture towards chemically enhanced
farming, a small group of members of The Soil
Association established the United Kingdom’s first
Organic food shop in London (in 1960). This shop
was, in effect, the retail outlet for the organic pro duce
grown by The Soil Asso cia tion’s mem bers but, being
the only one of its kind at the time, did not pro vide a
large enough outlet for such produce. As a
consequence organic farmers still had to sell most of
their pro duce through normal com mer cial chan nels if
they were to make ends meet. The specific
iden ti fi ca tion of organic prod ucts came gradually with
increasing consciousness of green issues and the
emergence of health food outlets, followed by farm
shops and, eventually, dedicated organic shops.
Producing specifically for the organic market thus
began to approach economic viability only over an
extended period of time and the percentage of
produce bearing the organic label increased very
slowly.
The growth that could there fore have been expected
of the British market did not mate ri alize and, by the
end of the 1960s, mar kets in the United States and in
other Euro pean coun tries were more diver si fied and
widespread. In spite of this, however, the United
Kingdom was once again involved in securing the
long- term authen ticity of the sector.
With the fast growth that was taking place else where
and the price premiums that were becoming
available, a number of opportunist growers and
traders who were not exactly in tune with organic
prin ci ples began to appear in the market. It was thus
necessary to define the term ‘organically grown’ to
guarantee the purity of the product and protect it
during the entire production, distribution and
mar keting process. In response, The Soil Asso cia tion
established a set of organic standards in 1974;
together with the official French standards and
IFOAM’s Basic Standards, these became the
foun da tion of EC Regu la tion 2092/91.
Supply and demand
Retail sales
At the end of 1997, the British retail market for
organic foods was valued at $450 million, having
practically doubled in size in the two years since
1995. Preliminary fig ures for 1998 indi cate sales of
up to $650 mil lion. This trend is set to con tinue at an
increasing rate with trade esti mates put ting the retail
value of the market at about $10 billion within 10
years, raising the market share of organics from the
cur rent 0.4% to 10% - 15%. This appears some what
opti mistic and will be fea sible only if there is good
252
supply availability, a supportive and more active
government policy and the gradual erosion of price
differentials (prices still appear to be up to 50%
higher on average than those of con ven tional foods in
many cases).
In terms of domestic con sump tion, a recent survey
(by AC Nielsen, Homescan UK, Sep tember 1997)
of 105,000 house holds found that, although 25% of
the con sumers sur veyed bought organic food, these
purchases were hampered by the lack of supply.
Furthermore consumers continued to find organic
food too expensive in spite of retailer price cuts.
This means in effect that 75% of British
households do not buy organics despite the large
growth in recent years. There is thus poten tial for
market expansion. At the same time, there are
obstacles that have to be removed before such
potential can be fully exploited: 55% of the
households interviewed cited “high price”, and
25% referred to the “lim ited range of prod ucts” as
their rea sons for not buying.
CHAPTER 12 – UNITED KINGDOM
Imports
Roughly half of the imports of organic foods comes
from other EU countries. The major non-EU
suppliers are currently the United States, Egypt,
Israel, Argentina and, increasingly, South Africa and
Central America. Apart from these main suppliers,
trade research reveals a wide and fast expanding
range of suppliers of individual products (see annex II
for an example of this). Of the total imports of food
and drinks, one third is estimated as coming from
On average, some 80% of organic fruits and
vegetables are imported; the estimate for fruits is as
high as 85%. Of the rest, 100% of tea and coffee, 90%
of wine and alcohol, and 50% of juices and cereals
are imported. Most meat products, eggs and dairy
products are domestically supplied. Further
information on imports by product groups is given
further below (market characteristics).
Domestic production
The major organic product categories sold are fruits
and vegetables, cereals, and meat and dairy products
although there are significant markets for products
such as processed foods, raw ingredients, beverages
and baby foods. Although there has been steady
growth in the largest product category (fruits and
vegetables), this has been slower than the extremely
rapid expansion in products such as organic meat,
dairy produce and baby food. These products have
benefited from consumers switching away from
intensively farmed products in response to recent
food scares. The baby food market in particular has
seen a rise of almost 50% a year (compared to 30%
for all organics) and is now worth almost 6% of the
overall baby food market which was valued at more
than £145 million in 1997.
Trade estimates indicate that fruits and vegetables
(including dried and processed goods) account for
45% of the market. The rest of the market is
distributed as follows: cereals and pulses 14%; meat
12%; dairy products 8%; processed organic foods
6.5%; baby foods 4%; tea and coffee 3%; wine and
other alcoholic beverages 3%; eggs 1.5%; herbs
1.3%; confectionery 1%; and juices 0.7%.
The problem of availability has led to a high
dependence on imports. Of total organic food sales,
an average of 60% - 70% is imported, with
percentages varying significantly according to
product sector.
The high percentage of sales attributable to imports is
mainly explained by the fact that organic production
in the United Kingdom is still comparatively small.
According to The Soil Association, there were an
estimated 1,200 organic farms out of a total of
100,000 farms of all types in the country in 1997.
These 1,200 farms were using 75,000 hectares, an
area equivalent to only 0.4% of the total farmed land.
This compares with 900 farms in 1996 producing on
50,000 hectares (0.3% of the overall farmed area). In
spite of the growth, the total is still less than half the
EU average, a little less than in France and
considerably less than in Denmark and Germany.
Domestic organic production (in terms of total retail
sales of £81 million in 1997) is divided into 20%
arable crops, 35% livestock products and 45%
horticultural produce. Again according to The Soil
Association, the highest growth rates between
1995/96 and 1996/97 in terms of specific products
were registered by triticale 208% (a growth from a
very low base); protected crops 196%; brassicas
111%; barley 95%; rye 76%; dairy production 74%;
beef cattle 45%; and pigs 33%. No figures were
available for peas, beans or poultry. In 1997, the
largest areas (in hectares) were allocated to the
production of organic potatoes (836), followed by
cabbage (544), swede (275) and cauliflower (189).
Most other organic products had a total land
assignment of less than 100 hectares each.
The Ministry of Agriculture introduced an Organic
Aid Scheme in 1994; the Scheme is part of an overall
initiative taken by the European Union (EU
Regulation 2078/92). It is an area-based payments
scheme open to any farmer who registers for organic
conversion and complies with an inspection system
governed by the United Kingdom Register of Organic
Food Standards (UKROFS). Any agricultural land not
already in organic production is eligible to enter the
scheme with a minimum size of one hectare and no
maximum except a limit of 300 hectares for which aid
will be granted. The Scheme gives payments to
alleviate both the costs of conversion and some of the
losses in income incurred.
In 1996 the Gov ern ment also intro duced an Organic
Conversion Information Service, a free advisory
service to farmers and growers interested in con verting to organic pro duc tion. It includes a tele phone
help line, an infor ma tion pack and a pos sible on- farm
con sul tancy for up to one- and- a- half days. The use of
the scheme has increased significantly since it was
introduced.
253
Although these terms were improved in new
proposals in April 1998 (with payments increasing
from £250 to £450 per hectare for land eligible for the
Arable Areas Payments Scheme, £350 per hectare for
other eligible grassland and £50 for ineligible
grassland), the simple flat rate was continued as was
the 300-hectare limit for any one organic unit. There
also appears to be no realistic allowance for setting
land aside, which is an essential part of the organic
process.
The trade view is that the Government is not truly
committed to organic production and takes a more
‘free market’ interpretation of the Organic Aid
Scheme than elsewhere in the European Union. In the
United Kingdom, farmers are paid £70 per hectare for
the first five years to convert to organic, less than half
the average disbursement from the Scheme by other
European countries. The Government on the other
hand argues that it does not want to encourage a
subsidy-reliant mentality among new organic farmers
and that the sector needs to be put on a commercially
viable footing as soon as possible.
Market characteristics and requirements
The structure of the retail market has also reduced the
opportunity for extensive exposure of organic foods
to the British consumer. The market for foodstuffs is
dominated by a few multiple chain stores (see
below). Their policy towards food retailing has been
one of vertical control where possible of most stages
of the distribution chain. In essence they have
imposed an industrial regime on food production,
insisting on strict specifications and time deadlines.
This is the antithesis of organic production and
distribution, and therefore organic products have not
featured significantly (until recently) within their
development plans for food retailing. This in turn has
meant that the majority of British consumers (over
70% of food retailing is controlled by these chains)
have not had ready and regular access to organic
products. Furthermore, in those chain stores in which
organic products have had a presence, the price
differential has been so high as to restrict demand.
Thus, nei ther the demand (though growing strongly)
for, nor the supply of, local organic products is as
large as might be expected from the rela tive afflu ence
of the United Kingdom and its early start in the
devel op ment of an organic sector. Even today (July
1998) the market is far less devel oped than might be
expected, given its importance in international
certification and the fact that the people and
organizations involved in the organic movement in
the country are very active, quite popular with the
media and strongly com mitted.
One other pos sible reason for the com para tively small
demand lies in the cultural traits of the British
consumer. The British seem less prone to
environmental alarmism than the citizens of other
coun tries. Many of them dis like the politi cally cor rect,
are scep tical of scare sto ries and are not as respon sive
to the so-called ‘wholesome and natural’ trends as
consumers in other European countries. Only a
minority of consumers within certain social and age
brackets buy organics regularly or respond to scares
and media concerns by increasing pur chases of their
organics; they number far less than their counterparts
in some northern Euro pean coun tries. The cross over of
organics to mainline consumption in major food
254
out lets is still in the process of occur ring, although it
is now increasing its pace with the greater
involve ment and com mit ment of the mul ti ples.
main ones are Israel, Egypt, the United States,
Argentina, northern African countries and South
Africa.
The United Kingdom has also been experiencing a
rapid increase in the number of vegetarians in recent
years. Although organic foods are not exclusively
vegetarian, consumers now opting to stop eating
meat for ethical reasons will be more likely to have an
interest in organic foods. A recent survey indicates
that the number of vegetarians in the country
continues to grow at the rate of around 5,000 per
week: there were an estimated 3.1 million in 1997 (a
100% increase on the total for 1990).
The vegetable and fruit trade stresses that British
consumers buy produce with their eyes. This applies to
all fresh produce. It may always have been the case,
but it is probably all the more so nowadays when so
much consumer shopping is done in supermarkets
where the customer cannot ask questions of staff, and
where touching and smelling produce is somehow
inhibited. Only in recent years has there been much
scepticism among the British that the food offered to
them was other than fresh and wholesome, especially
if it looked as though it was both.
As regards distribution, the fruit and vegetable trade
differs from that of some countries in Europe because
its major outlets are supermarkets and box schemes
rather than health food stores.
It is estimated that fruits and vegetables (mainly
fresh, but including dried and processed produce)
make up about 45% of all organic food sold in the
United Kingdom. Growth in this product sector has
been steady but in recent years less spectacular than
that of other products. The reasons are the lack of
acceptable supplies and the switching of consumer
interest from mainstream products to other organic
products as a result of food scares.
Vegetables have the largest demand, which is almost
twice the size of the demand for fruit. Although this
has been assisted by the emergence of vegetable box
schemes, it is the recent upsurge in the participation
of the supermarkets that is likely to cause growth in
the vegetable sector to pick up speed in the near
future.
The most popular vegetables are the all-year-round
domestic products such as potatoes, onions, carrots
and other root crops. These often also have a lower
price differential than imported and seasonal
products.
Although only a limited range of organic fruit is
grown in the United Kingdom, fresh fruit still ranks
in second place in sales by product category (with a
share of around 15% in 1997). Apples, pears and
bananas are the most popular of the fruits sold
although most outlets do have a small range of exotic
fruit.
As stated above, the United Kingdom imports around
80% of its organic fruits and vegetables. These come
from other European countries or from a group of
established third-country suppliers, of which the
In terms of actual exposure to customers, the situation
varies between type of retail outlet and indeed
between parts of the country. First-hand observation
in one of the large multiples in the North of England
revealed a separate, relatively small, organic fresh
fruit and vegetables section with about seven or eight
different items, including bananas and avocados, and
displaying a notice announcing that organic produce
was now priced the same as their conventional
equivalent. As seems to be a common occurrence
with organic fresh produce generally, however, the
boxes for one or two of the products were empty.
In some stores visited, each organic item was
displayed alongside its conventional alternative,
rather than in a separate organics section, and was not
easy to find. On the other hand observation in one of
the more organically committed multiples in London
revealed a wide range of very fresh and abundant
fruits and vegetables with premiums averaging
around 30% for domestic produce and up to 100% for
imported fruit and exotics. A whole section was
devoted to them and they were marked with a
distinctive organic logo.
There is no hard and fast rule as regards pricing, and
the practice varies not only between chains but also
between stores in different parts of the country.
First-hand observation identified price premiums in
one store ranging from 50% on organic vegetables
(carrots, mushrooms, new potatoes and white
cabbage from Spain, the United Kingdom, Italy and
the Netherlands respectively) to at least 100% on
organic fruits (apples, pears, grapes, oranges from the
United States, Argentina, Chile and Italy). In another
store the premiums on a similar range of products
from more or less the same countries varied from
10% - 20% to over 100%.
A wide range of processed organic foods
incorporating organic fruit and vegetable ingredients
is available from some of the wholesalers, in various
forms – dried, canned, chilled and frozen.
The chilled range is reported to be growing quickly.
One wholesaler has found that its sales of organic
chilled foods (fruit juices, yoghurt, margarine, and
cheese) are now growing faster than those of dried,
ambient or frozen products. Another wholesaler
identified chilled organic fruit juices as one of his
significant growth areas. However, observation in
one supermarket store revealed a price premium of
up to 200% on organic Israeli orange juice, though
premiums of up to 50% are more normal.
255
terms of a potential market for third-country suppliers
outside EU, this sector thus provides little potential.
Having said that, growth prospects are expected to be
very good (the market is expected to triple in the next
five years). This is particularly so for meat, since the
United Kingdom has one of the lowest European per
capita consumption levels for organic meat. The BSE
scare has already catalysed growth in organic meat
consumption and concern over animal welfare has
further increased consciousness of animal husbandry
practices.
Premiums for organic meat and other animal produce
can be very high, but consumers seem likely to
demand and then to accept the consequences of the
development of production systems with a higher
than normal welfare component. The variations in
premiums reflect production conditions for different
types of meat, with organic pork and poultry having
the highest premiums because of the low costs of the
intensive mass production methods used.
Cereals and pulses
Organic soups are said to be increasing in range and
popularity in all their various forms (chilled, fresh,
and canned). One of the smaller chains has
introduced a limited range of frozen organic
vegetables, which are displayed alongside the
standard version but with a high price premium.
Demand for fruits and vegetables for ready meals and
baby foods is growing rapidly and significant market
opportunities exist for suppliers of appropriate
products.
Supplying the processed foods sector requires a
long-term commitment to individual processors or
intermediate suppliers. It also calls for growing
produce to slightly different specifications than the
fresh market – a possible disincentive to growers.
Producing for both markets together should,
however, provide some balance in revenue and give
more return for products not reaching top grade. This
in turn could lead to more competitive pricing.
Overall, however, the prospects appear very good for
processed organic food products.
Meat and dairy products
Although this is a comparatively important segment of
the British organic market, most supplies of meat and
meat products come from domestic production. In
Roughly half of the organic cereal supplies to
industry in the United Kingdom are from domestic
growers, and most of the rest comes from the
European Union and the United States. The main
imports are hard wheat, durum wheat, maize and
rice.
Most cereals are milled (sometimes by stone) by some
20 companies in the country. The two largest, Doves
Farm and Shipton Mill, produce flour and bakery
products. Cereal products include flours, breads,
biscuits, breakfast cereals, porridge and cakes.
A major grain merchant that has traded in organic
cereals for over 12 years said that organic grains, a
fifth of which it imports through brokers, currently
represents just 1% of its total sales. Wheat and barley
are its two biggest purchases and it also deals in oats
and oil-seed rape. Its organic imports come mainly
from Europe, North America and Australia and none
from developing countries.
A significant part of the British output of organic
cereals is used as feed for organically farmed animals
from which meat, eggs and dairy items are obtained.
The grain is sold either direct to farmers who mill and
mix it themselves, or to compounders who then sell
their mixes to farmers for different end-uses.
256
The biggest growth area recently has been in organic
wheat and soya for use as chicken feed by organic
free-range egg producers. There has also been
growing interest on the part of the supermarket chains
in organic poultry (and thus, poultry feed). Demand
has grown somewhat for malting barley for use in the
production of organic beer, which sells overseas
(particularly in Japan) as well as in the United
Kingdom.
As grains used for animal feeds undergo little
processing and packaging, the cost of raw materials
constitutes a high proportion of the price charged by
the grain merchant. Because of lower yields, the price
premium on the organic variety is high, generally in
the region of 80% - 100%. Currently, however, the
premium is more likely to be 150% because the
growing popularity of organic free-range eggs has
produced an excess demand situation.
Cereals for bakery products tend to be bought direct
by the millers rather than through grain merchants. A
bakery (The Village Bakery) whose products are
almost entirely organic buys its organic flour from a
domestic mill although about half of the raw
materials for this originates in Europe and North
America. Organic flour is the bakery’s most
important ingredient. The bakery supplies some of
the multiples, independent retailers, caterers and
wholesalers with bakery products.
A number of importers/wholesalers (Hider Food
Imports, Harley Foods and Juniper Fine and Organic
Foods) buy and sell organic grains. One buys organic
rice from Italy and North America in bulk from
Community Foods (see below) and then sells in bulk
or in smaller packs to retailers. Another imports
organic rice direct from Italy and North America,
packed at source with the wholesaler’s label, and then
sells it to other wholesalers which supply it to health
food shops. The same importer/wholesaler supplies
organic grains to a muesli manufacturer which sells
to the multiples. Another stocks a range of organic
pastas.
It seems clear that the cereals market is established
and buoyant. Product innovation and an everincreasing range of uses give it good potential for
further growth.
For example, organic nuts (peanuts) and dried fruit
(raisins and sultanas from Turkey) are bought in large
sacks by one wholesaler who then supplies them to a
manufacturer of fruit and nut bars. These bars are
then bought back by the wholesaler for resale to the
retail trade.
One of the key British importers of organic dried
fruits and nuts (and other organic ingredients for food
products) is Community Foods. In fact, it offers such
a wide range of organic products that many of the
other major organic food suppliers, packers and
processors use it almost as a one-stop shop. The bulk
of its organic sales is, however, made up of organic
dried fruit, nuts and sunflower seeds, and this despite
the fact that the large quantities of nuts and fruit that it
prepares and packs for some multiples and
independent department stores are not organic
because of the large price premium. Indeed, although
this wholesaler supplies a wide range of organic
products in addition to dried fruit and nuts (olive oil,
coffee, rice, etc.), and is regarded as a major British
supplier, its organic sales make up only 1% of its
business.
Some of the dried fruits (mango, pineapple and
banana) which a bakery uses in producing
non-organic cakes and other products to order for a
trade customer are in fact organic at source. They are
not however certified as such because they are grown
and dried by many small producers in Uganda and
Kenya. In this particular case, the baker’s customer is
not convinced that demand for products containing
dried exotics and carrying the organic label is
sufficient to justify the costs of having the growers
and the rest of the supply chain certified.
Dealers in dried fruits and nuts offer a wide range of
serv ices. One importer and whole saler imports large
quantities of organic raisins from Argentina in
con tainers and sells them in bulk quan ti ties to bakers
and other food manu fac turers and in retail packs to
health food shops, at a premium of 25% over the
non-organic variety. It also imports organic dried
apri cots, pine apple and dates. Organic prod ucts make
up 50% of its overall turnover. Another wholesaler,
whose turn over is 30% organic, buys organic rai sins
from another whole saler and then sells them to health
food shops, delicatessens, smaller grocery chains,
etc.
For dried fruit and nut products, supply systems are
complex with much intertrading between suppliers.
A bakery has identified important gaps in the supply
of organic nuts. This bakery is almost 100% organic,
is certified by The Soil Association and supplies
organic bread and other bakery products (cakes,
flapjacks, etc.) to supermarkets, independent retailers
and wholesalers. It buys its dried fruit and nuts in
bulk, mainly from Community Foods. It reported
that, whereas non-organic nuts can be bought by
bakers and other food manufacturers in the numerous
forms required for their different products (e.g.
ground, blanched, ribbed almonds) the organic range
was more limited (organic almonds, for instance, are
supplied only shelled or blanched).
Coffee and tea
Most of the major coffee and tea companies in the
United Kingdom do not produce organic blends
either for themselves or for the supermarket chains’
own labels.
It appears that the volume of supply is not the limiting
factor to market expansion but rather the entire
economics of organic certification and the awareness
of consumers. Non-certified organic teas and coffees
are already used but within traditional non-organic
products, e.g. coffee from Cuba, Ethiopia, Kenya,
Yemen and the Galapagos Islands, and tea from
Kenya.
Several wholesalers in the United Kingdom supply
organic tea and coffee. One of the country’s biggest
importers of organic coffee (Hider Food Imports) is
the exclusive importer of organic coffee from the
Netherlands roasting house Simon Levelt. The
coffee, a South American-Asian blend with the fair
trade mark, is bought in retail packs and sold on to
other wholesalers, health food shops, delicatessens
and department stores. Another wholesaler buys
organic tea and coffee from Community Foods.
Traidcraft plc, one of several fair-trading
organizations in the United Kingdom, sells tea
(Darjeeling) and coffee (Peruvian, sourced through
the Neth er lands) which are cer ti fied organic at source
but which it cur rently does not label organic because
the rest of the supply chain has not been certified.
Only about 2% of Traidcraft’s turnover is currently
derived from organic foods. Oxfam, too, sells tea
with the fair trade mark but without an organic label,
though the tea estates it buys from are con verting to
100% organic gardening under IFOAM guidelines.
Café Direct, which carries the fair trade mark, has
achieved the highest market penetration; it had
around 4% of the ground coffee market in 1996.
Clipper Fair trade Tea has also had a degree of market
suc cess since its launch in 1994.
257
Another fair trade organization, Equal Exchange,
supplies wholesalers with retail packs of various teas
(from India and the United Republic of Tanzania) and
coffees with the dual fair trade/organic tag. Percol
coffee, produced by the Food Brands Group from
sources in South America, is also available.
Although the scene appears somewhat disjointed,
there are some encouraging signs in the market. One
of the major British packers of tea and coffee has
decided that for products that are certified as organic
at source, it will “go through the hoops” to have the
rest of the supply chain certified so that it can put an
organic label on them. This, the company hopes, will
enable the product to be sold at a higher price to
recoup the higher prices that it has to pay to suppliers
of organic produce.
Coffee was identified by a number of respondents
during the fieldwork for this study as having
relatively promising prospects for developing
countries wanting to exploit the growing market for
organic foods. This is because almost all of the
product is grown in tropical conditions. Furthermore,
the price premium required for organic coffee to
recoup its higher production costs is comparatively
low as the cost of the basic product constitutes a small
proportion of the total cost of the final product on the
retailer’s shelf. Price need therefore not be a
significant limiting factor.
The important question that remains, however, is
whether or not the overall market for all types of
coffee and tea is growing or whether growth in sales
of the organic variety would be at the expense of the
non-organic, thus resulting in little overall impact on
the income of producers in developing countries.
As with organic foods generally, a key influence will
be the degree of involvement of the multiples.
First-hand observation reveals some presence, with
most chains stocking the labels mentioned above. At
least one, however, now provides own-label organic
teas. The scene is set for an expansion generally in
this sector especially if the costs of organic
certification can be justified by bulk trading and
retailing through major retail outlets.
Fish and fishery products
Organic fish (wild and farmed) is also now available
in some outlets (e.g. Planet Organic). Such fish are
caught by sustainable and environmentally friendly
258
fishing methods in unpolluted waters. Although it is
difficult to establish a chain of custody,9 some
suppliers have been certified. For instance, The Soil
Association has registered suppliers from Saint
Helena (a British dependent territory in the South
Atlantic Ocean) for tuna smoked by a British
company – it won an Organic Food Award in the fish
category in 1997.
Other products
The other products of potential importance to
developing countries and which have prospects in the
United Kingdom are sweeteners, pulses, oil-seeds,
edible oils and fats, wines, and herbs.
As mentioned earlier, the United Kingdom was a
major contributor to the formulation of the EU-wide
standards and systems, which now regulate the
organic market and ensure the integrity of the organic
chain from farm to table.
As a basis for certification, EU Regu la tion 2092/91
establishes the rules for production, processing and
importing, including inspection, record keeping,
labelling and marketing. Each country in the
European Union is responsible for setting up an
inspection system. Each inspection body has a degree
of flexibility in interpreting and enforcing the
Regulation because the latter provides only the
minimum require ments for cer ti fi ca tion.
The United Kingdom Government designated
UKROFS (United Kingdom Registry of Organic
Food Standards) as a control body in 1987. It has
pro duced a set of national stan dards and estab lished
an independent certification and inspection scheme
for organic producers. It has an independent board
with exper tise from the pro duc tion, retail, con sumer
and trade stan dards sec tors. It has a sec re tariat within
the Ministry of Agriculture, Fisheries and Food.
UKROFS can operate as a certifying body, but
prefers to monitor and safeguard the activities of
other certifying bodies rather than undertake that
work itself. There are a number of approved
certification bodies in the country (see Annex I).
They include The Bio-dynamic Agricultural
9
Association, Organic Farmers and Growers Ltd,
Organic Food Federation, Scottish Organic
Producers Association and The Soil Association.
Arguably, The Soil Asso cia tion is pre emi nent.
Surveys have demonstrated the importance of a logo
in that 85% of the seasoned purchasers of organic
produce look for a symbol. Until recently the symbol
of The Soil Association was the best known, but this
may well change. In the new wave of supermarket
activity in the market it has been observed that they
are using a range of approved certifiers. Indeed one of
the major chains has developed its own logo (a blue
circle) for its organic range. British supermarkets are
very jealous of their own reputations and branding,
and are widely trusted by their customers, so it is
quite likely that their customers will accept any
UKROFS-registered certifier which the supermarket
of their choice cooperates with. However, the
importance of a generic logo, e.g. that of The Soil
Association, should not be underestimated.
As regards imports into the United Kingdom,
UKROFS enforces one of the basic tenets of EU
Regulation 2092/91 in the country, viz. that “...
organic food imported from outside the EC is grown
and certified to equivalent standard (to that within the
EC) and that the exporting country’s standards and
inspection systems must be notified to and assessed
by the EC.” The Regulation is discussed in some
detail in chapter 2.
An expression used in quality control circles to identify the series of links from farming to final product which ensure that products can be
identified and segregated from non-certified products at each stage of the processing and distribution chain.
259
Importers, traders and wholesalers
To date the major suppliers of organic foods to the
British retail trade have been specialists in various
product ranges. Many supermarkets and other outlets
deal with a handful of well-established wholesalers
which operate with overseas as well as domestic
suppliers of fresh organic produce. Some wholesalers
also sell on to other wholesalers with whom smaller
retailers deal.
In the fresh fruits and vegetable sector, the largest and
best known is Organic Farm Foods of Wales (now
with branches throughout the United Kingdom). This
company supplies supermarkets, box schemes, health
food shops, specialist organic supermarkets,
processors and even customers in other European
countries. It has branches and pack houses in the
United Kingdom, France and the United States, and
agreements with companies in other European
countries. It meets its customers’ requirements
through its wide network of suppliers in the United
Kingdom, in Europe and in countries in most other
regions of the world – over 60 suppliers in all. This
network was established and is maintained through
an active policy of nurturing its suppliers and
assisting them with agronomic practices, financing,
certification and export servicing.
The Organic Marketing Company, also a specialist
supplier, is a large organic vegetable production firm
in Herefordshire and is cooperatively owned by its
members, mostly growers. It now concentrates on
supplying box schemes. It is not, however, an
importer. Another important company in the fruit and
vegetable trade is Congelow Produce Ltd (located in
Kent).
Wholesalers may deal in pre-packed produce, or
operate as a pack house. Perhaps the largest in both
these groups (with a turnover of about £30 million) is
Community Foods, a leading importer, wholesaler
and distributor of ‘natural foods’ which have gone
through a degree of processing. At about 10% of its
turnover, organics are a growing part of the business,
but in big product lines such as apricots, peanuts and
almonds, organics remain a small line. A range of
organic produce – especially oils and dried or
otherwise preserved goods, and including teas – is
wholesaled under its own or other labels, often after
packing in its own warehouse.
Although other suppliers proliferate in the United
Kingdom, they are either mainly small product
specialists or suppliers of conventional produce
increasing their participation in organics in response
to supermarket demand.
Some supermarkets are seeking imported organic
supplies from their traditional suppliers on the
grounds that such suppliers are familiar with the
nature of the supermarket business and have the
requisite standards of efficiency. Thus traditional
suppliers to supermarkets, such as Sapphir, Mack
Multiples and Wealmoor, are attempting to increase
their involvement in the organic business. This
requires reconciling the rigorous logistics of normal
supermarket supply with the more ‘natural’
characteristics of organic supply operations – not a
simple conversion.
There are a large number of specialist suppliers.
Information on some of these companies (e.g.
importers of cereals, dried fruits and nuts, coffee and
tea) is given in the earlier section on market
characteristics (pp. 255 ff.).
The retail sector
The shares of the various types of outlets in the
market for organic foods in 1997 are estimated at
60% - 65% for supermarkets, 18% for farm gate and
box schemes, 14% for independents, 3% for health
food shops and the rest for market stalls. Although
the share of box schemes has grown the most in
recent years, supermarkets are now likely to gain
share faster in the near future.
It is clear that any significant future expansion of the
organic market in the United Kingdom and a
crossover into mainline consumption rests with the
supermarkets. This is already happening and growth
expectations are high.
All in all it can be concluded that the major
determinants of development in the organic retail
sector are the supermarkets’ perceptions of what
consumers want, the availability of quality supply, a
relationship with suppliers who understand the
standards of the retailer and can confirm a chain of
custody, and a reduction in the price premium for
organic foods.
260
Developments in various types of retail outlets are
discussed below.
Multiples
It is estimated that the top five supermarket chains
control over 70% of the food market in the United
Kingdom. They have evolved into extremely
powerful forces, controlling the range and quality of
supply and the level of availability of products to
British consumers. Over the last 20 years they have
extended their influence all the way through to the
original producer, regardless of where it is located,
and today not only dictate product specifications and
quality but also planting, harvesting, packaging,
transportation and delivery. The high degree of
competition between them has resulted in increasing
stringency and rigour in their expectations of the
products they handle and their purchasing power has
enabled them to direct their suppliers towards
increasingly mechanistic and almost industrial
methods of producing food.
The United Kingdom is one of the leading countries
in terms of the volume of organic products sold
through supermarket outlets. However, the
supermarkets, because of the very nature of their
business and their insistence on control, regularity in
specifications and timing of supply, have, until just
recently, reduced the consistency and pace of their
involvement in the trade. Their requirements do not
fit in with organic products which of essence are not
uniform in shape, size or colour, are not blemish free
and are not produced to a strict timetable. Thus in
spite of its strong position, the involvement of the
supermarket sector in the organic trade has been
characterized by periods of enthusiastic development
followed by complete withdrawals from handling
organic produce.
In the late 1980s, there was considerable media
attention on green issues and, anxious to appear green
and to command the loyalty of high-spending green
consumers, supermarkets began increasingly to
devote a good deal of time and space to organic
produce. They also identified a gap in the market for
organic produce that was not being met because of
the incapacity of the health food sector to handle such
merchandise. As a consequence, sales increased
fivefold between 1988 and 1993 (from a base of
£20 million).
This period of rapid growth did not continue
however. Although the trend was never quite
reversed, some of the large chains started to have
doubts about the willingness of large numbers of
shoppers to pay price premiums for produce which
often looked unattractive and were not regularly
available.
During the last decade or so this has resulted in
something of a pattern among the multiples of
venturing into, testing, dropping out of and, after a
number of years, re-entering the market for organic
fresh produce. Most of them clearly see this as a
potential growth area but one with a number of
complications to overcome. These are related
particularly to reliability and continuity of supply,
quality require ments and pricing.
The approaches taken to tackling these supply and
pricing issues have varied.
During the field investigations for this survey,
Sainsbury’s, one of the most active players in the
organic sector, stated that it sold twice as many lines
of organic produce as its nearest rival. It has
committed itself to expanding its range so that
wherever possible an organic product is on offer
alongside every conventional product. It is pledged to
increasing the percentage of organics from 1% to 5%
of its total food sales. It is also actively involved in the
wider organic movement in the United Kingdom by
fostering domestic production and sponsoring
conferences, workshops and the like. In associating
with the organic supplier group SOURCE, its
objective is to raise the quality and increase the
quantity of organic supplies and promote R & D.
Waitrose, another of the major multiple chains, has
gone into organic sales in a big way. One of its stores
in London, visited during the field research for this
study, had a wide range of clearly presented organic
products. There was for example about 6 - 8 metres of
individual shelf space given over to organic
vegetables and fruit. There were clear “Organic”
signs and the products were all labelled with a large
blue “O”. The average price premium for organics
was about 30%; many items were priced 10% - 15%
higher than their mainstream counterpart products.
Tesco, one of the largest supermarket chains, has
created a specialized staff post solely devoted to the
development of organic sales from its outlets. It
began heavily promoting organics in October 1996,
and did so on the basis of near-parity of prices
between organic and conventional produce, deciding
as a matter of strategy to pass on profits from the
sector to the consumer in the form of discounts. It
says that it has seen a fivefold increase in sales of
organic produce in the period and hopes to raise the
share of organics from the present 1% of the firm’s
£1.6 billion fruit and vegetable sector to perhaps 5%
in three to four years, quadrupling the number of
stores stocking organic produce.
Safeway, a pioneer in the organics market 10 or 15
years ago, has in recent years concentrated its
attention in the area of organics on the young family
market. This was particularly motivated by the
anxiety of mothers concerning food safety.
For one of the major chains (Asda) the experience has
not been that encouraging. In 1998 it tested the
market for the second time in five years, with the
testing restricted to its larger stores. Though
significant customer interest was generated, the
company temporarily withdrew from the market
because its supplier had been unable to meet its
quality specification. This supermarket chain is of the
opinion that its customers want organic produce to
have the same quality and appearance as the
conventional variety. In a deliberate effort to secure
customer interest, the company earlier this year
started to offer its organic fresh produce at price
levels similar to its traditional lines, in the belief that
customers are resistant to significant price premiums
on organic produce.
Health and organic stores
Unlike in some other countries where health food
shops have been important, the British health food
trade has never tried to compete with the supremacy
of the supermarket as a supplier of fresh organic
produce and groceries. In some European countries
(as in the United States), health food stores have
carried organic produce, especially fresh foods,
which has made possible the development of a
network of local growers and suppliers. In the United
Kingdom, by contrast, organic farmers and growers
have had to sell direct to the public (in farm shops), or
have developed links with a small number of
wholesalers and the small number of supermarket
chains in which most people do most shopping.
Health food shops have not had the physical capacity
to handle fresh produce, although this is now
changing.
Several other organic retail outlets are more
important than health food stores. They include
butchers, farm shops, greengrocers, independent
261
retailers and dedicated organic shops. An organic
supermarket, Planet Organic in London, specifically
aims to provide space and facilities for an organic
alternative to most products, fresh and processed, and
thus offers a full range of organic food and beverages.
It is now experiencing good growth after a difficult
first year and is planning to set up similar stores in
cities in the South.
Most British cities have health food stores (chains
such as Holland and Barrett) on their high streets
which carry an increasing range of organic foods,
notably processed foods such as grains, raisins, pasta
and pulses. It is unlikely however that they will
become significantly involved in the further
development of the organic food market.
Box schemes
Box schemes are another significant market outlet
and one in which there has also been a dra matic rise
in sales in recent years. Members of such schemes
pay a fixed price for a box of in- season organic fruits
and vegetables, accepting the mixed range, quality
and quantities that are provided. It is an attempt to
strengthen ties between producers and consumers
and pro moting accep tance of the less uni form nature
of organic pro duce. Such boxes can be bought at the
shop/farm or at a cen tral delivery point; they can be
delivered to the home or by mail order. Although
accurate figures are difficult to get, The Soil
Association has estimated that there were 130 such
schemes in operation in 1997, catering to some
40,000 fami lies and involving 30% of growers in the
United Kingdom.
Although there was good growth in this market
segment between 1994 and 1996, it appears that there
is now some evidence of a degree of disenchantment
with the schemes. Consumers are starting to
complain, and journalists are starting to write about
the wastage of unwanted produce, the lack of
identification of some of the produce and its
unattractive appearance. All this is seen as increasing
the real price differential.
Other outlets for organic produce are farm shops,
mainly for fruits, vegetables, meat and dairy
products. These arose at a time when health food
shops could not handle fresh produce and
supermarkets were either reluctant to stock the range
or were demanding specifications which were
impossible to meet.
262
Processors and food manufacturers
True conversion of organic produce into a processed
product is in its infancy in the United Kingdom. The
number of companies that can be called true
processors is small. The Soil Association does have a
large register of processors but most of those listed
are packers and re-distributors or family-type kitchen
operations. Few large food manufacturers have
considered broadening their range of products to
include organics.
Grain milling is the primary activity of the organic
processing sector and Doves Farm Foods, Jordans,
Shipton Mill and Morning Foods are the major
suppliers of organic flours and cereals. Some large
dairies have also gone into processing with, for
example, Yeo Valley producing organic yoghurt
from milk supplied by the Organic Milk Suppliers
Co-op.
The significant recent growth in organic baby foods
(approximately 50% yearly) as a result of food scares
has supported the development of a processing
company in the United Kingdom – Baby Organix.
This company produces a range of baby meals,
cereals, pasta shapes and drinks which are free from
additives, added sugar, processing aids and fillers.
They source their ingredients from local organic
farms. The company, which is still the market leader,
faces strong competition from Hipp UK, which
claims to have increased market share by 140% over
12 months.
Whole Earth Foods, a London-based company which
was involved in the genesis of organized organic
retailing in the country, has pioneered the manufacture
of foods from imported organic produce over many
years. Its processed products began to appear in the
late 1970s with avowedly ‘healthy’ and ‘natural’ foods,
sold to a generation of consumers interested in
alternatives. Among their products were low-sugar,
low-salt versions of traditional foods such as baked
beans, jams, peanut butter, chocolate and ketchup.
In essence, although British organic retail shelves are
stocked with wide ranges of dried, canned, bottled,
ready meals, oils, beers and other processed products,
most of these are either imported or produced on a
small scale by local organic producers.
Market prospects
The United Kingdom is clearly one of the prime
markets to be targeted by prospective suppliers of
organic foodstuffs. As already mentioned there
appears to be enormous prospects for growth in the
market for organic foodstuffs. Informed trade sources
at all levels anticipate organics taking 10% - 15% of
the food market within 10 years compared with 0.4%
at present.
Steady growth is forecast for fruits and vegetables.
The anticipated growth rates of the markets for meat,
wine and beer and all processed foodstuffs are among
the highest in Europe as a result of the relatively
undeveloped state of these markets in the United
Kingdom. The current average growth rate for all
organics in the country is estimated at around 30%
per year by The Soil Association. The trade expects
future growth rates for specific produce to be even
higher.
Achieving this, however, will require a significant
increase in supply avail ability. In terms of domestic
pro duc tion there will need to be effec tive pro ac tive
government support for domestic organic farming
because, even if the number of domestic organic
farmers were to double, the resultant increase in
supply would not meet existing demand. At present
the United Kingdom has to import close to 70% of its
total organic require ments and this situa tion is likely
to con tinue.
As explained above, there are various rea sons for the
low level of involve ment of British farms in organic
production. First, the comparatively large size of
these farms makes con ver sion more dif fi cult. Second,
government policy has not been viewed as being as
practically encouraging as in many other European
countries. Finally, the market structure requires
specifications which are not easily met by organic
production.
Although it is reported that the volume of domestic
organic supply is increasing steadily and that the
number of farmers switching to organic systems is
growing, there is still considerable doubt about the
commitment of the Government to the process.
Whatever the interpretation, the fact remains that
domestic supplies of organic produce are unlikely to
increase at a level that will keep pace with the overall
growth of the market. This means that even if growth
in overall organic sales were to slow down there will
still be an incremental growth in the market for
imported organics. This will be reinforced through
the increased participation of the supermarkets in the
sector and their search for new sources of regular and
reliable supply.
There are, of course, threats from alternative supply
sources. Integrated crop management systems have
been actively supported by some supermarkets: these
combine the efficiency of intensive systems with
organic practices. To tackle the growing public
unease with high levels of usage of chemical
pesticides, etc., health scares and the increasing
concern with related environmental issues, all the
multiples have come together to develop crop
protocols with which all their United Kingdom
growers of fresh fruits and vegetables and now their
overseas suppliers must comply and be inspected
against. These Integrated Crop Management (ICM)
protocols impose lower levels of usage of chemical
pesticides and fertilizers, and the use of natural pest
control techniques, e.g. the introduction and
encouragement of natural predators.
One of the top three multiples started a programme to
encourage ICM among its suppliers as early 1991. By
the end of 1996, over 80% of its domestic fruits and
vegetables and 45% of its overseas produce were
being grown to ICM protocols and it had plans for
further increases in these percentages. At the same
time it is involved in assisting the development of the
organic sector.
Some specialists anticipate that before long this ICM
produce could become the standard against which
organics will have to compete and that there will be
an ever-increasing availability of ‘halfway house’
producers supplying products with no obvious price
premium attached and which are marketed as having
features which take account of the growing interest in
the environmental, health and social aspects of food
production. Indeed, the question has been raised
whether the multiples would prefer to see organic
263
produce remain a niche market because its promotion
may be taken to imply that there is something wrong
with the standard product.
Thus a major issue for organic producers must be
whether promotion by the multiples of their ICM
produce as a more affordable alternative with more
control over supply will limit the growth in demand
from consumers for organic produce, or perhaps the
competition will force the organics price premium
down to a level which consumers will tolerate. The
implications of this trend are as applicable to
processed products (dried, chilled, frozen, etc) as they
are to fresh produce.
The other potential threat is from genetically
modified foods, which have developed very quickly
in the United States and have started to make inroads
into the United Kingdom. There is a considerable
lobby against them, however, and resistance is strong.
Such foodstuffs do have an impressive list of
qualities, however, and are available at competitive
prices. The attitudes of the major supermarkets will
once again be crucial in the forthcoming contest for
shares of the changing United Kingdom market for
foodstuffs. A four-part market may thus emerge in the
short to medium term, divided amongst intensively
farmed products, pure organics, ICM protocol
products and genetically modified produce.
In spite of this struggle for the food market, there is still
likely to be a sub stan tial vacuum for sup pliers abroad
of organic produce. For prospective developing
country suppliers seeking to make an effective and
sustainable entry into the United Kingdom, the
oppor tu nity does exist and is poten tially sig nifi cant as
long as they realize that this is not a trade to enter
lightly and that a proper understanding of what
‘organic’ truly means is essen tial.
With pressing competition from alternative systems,
it will become increasingly crucial therefore that the
development of an organic supply base and
distribution system is done properly by developing
country suppliers through appropriate national or
international certification, state-of-the-art agronomic
support and a strong relationship with an established
distributor.
Annex I
United Kingdom: selected addresses*
IMPORTERS/PROCESSORS/
DISTRIBUTORS
Anglia Oils Lim ited
King George Dock
Kingston-upon-Hull
East Yorkshire HU9 5PX
Tel: +44-1482-701271
Fax: +44-1482-709447
(Importer of raw materials;
processor of oils)
Baby Organix
Organix Brands plc
No. 4 Fair fields Close, Christ church
Dorset BH23 1QZ
Tel: +44-1202 479701
Fax: +44-1202 479712
(Proc essor/importer/dis tributor of
baby foods)
Clearspring Ltd
Unit 19, A. Acton Park Estate
London W3 7QE
Tel: +44 181 7491781
Fax: +44-181 81118893
(Importer and wholesaler mainly of
exotic food products)
Com mu nity Foods
Brent Ter race
London NW2 1LT
Tel: +44-181 450 9411
Fax: +44-181 208 1551
(Leading importer, packer and distributor of organic prod ucts including
dried foods, pulses, cereals)
Congelow Products Ltd
Den Farm Lane, Collier Street
Tonbridge, Kent TN12 9PX
Tel: +44-1892 730447
Fax: +44-1892 730566
(Importer and wholesaler of organic
Doves Farm Foods
Salisbury Road, Hungerford
Berkshire RG17 0RF
Tel: +44-1488 684880
___________________________
Fax: +44-1488 685235
(Importer, distributor, miller,
processor of cereals and flour)
English Village Salads
Camblesforth Grange
Brigg Lane, Selby
Yorkshire YO8 8ND
Tel: +44-1757 617161
Fax: +44-1757 614109
(Importer of fresh salad products
and supplier to major multiples –
part of Geest plc)
Gleadell Banks Ltd
Lindsay House, Gainsborough
Lincolnshire DN21 5TH
Tel: +44-1427 421225
Fax: +44-1427 421230
(Large grain merchant – cereals
and pulses)
Juniper Fine Foods
Unit 2, Downs Way Industrial Estate
Tinwalds Downs Road, Heathall
Dumfries DG1 3RS
Tel: +44-1387 249333
Fax: +44-1387 249900
(Wholesaler of fresh, ambient,
chilled and frozen foods and
beverages)
Just Wholefoods
Unit 2, Cirencester Business Estate
Long Lane
Cirencester GL7 1YG
Tel: +44-1258 651910
Fax: +44-1258 651910
(Food manufacturer of organic
instant soup mixes, etc.)
Harley Foods
Blindcrake Hall, Blindcrake
Cockermouth GA13 0QP
Fax: +44-1900 828276
(Importer, wholesaler – dried fruit,
pulses, grains, herbs, rice)
Oasis Food & Drink
Sunset House
Ennis Close, Wythenshawe
Manchester M23 9LE
Tel: +44-161 283 8888
Fax: +44-161 283 8899
(Wholesale distributor of chilled,
frozen and ambient health food
products)
Hider Food Imports
Wiltshire Road
Kingston upon Hull HU4 6PA
Tel: +44-1482 561137
Fax: +44-1482 565668
(Importer, wholesaler, processor,
packer – nuts, dried fruits, beans,
coffee, pulses, herbs, spices)
Organic Farm Foods
Llambed Estate, Lampeter
Carmarthenshire SA48 8LT
Tel: +44-1570 423099
Fax: +44-1570 423280
(Major importer and wholesaler of
all types of organic produce)
Hipp Nutrition UK
169 Greenham Park, Newbury
Berkshire RG15 8JH
Tel: +44-1635 528250
Fax: +44-1635 528271
(Baby food manufacturer/importer)
Organic Marketing Company
Unit 1, Leighton Court
Lower Eggleton, Ledbury
Herefordshire HR8 2UN
Tel: +44-1531 640819
Fax: +44-1531 640818
(Packing and pre-packing importer
of fruits and vegetables)
Infinity Foods
67 Norway Street, Portslade
East Sussex
Tel: +44-1273 424060
Fax: +44-1273 417739
(Importer and wholesaler of a wide
range of organic produce)
Suma Wholefoods
Dean Clough
Halifax HX3 5AN
Tel: +44-1422 345513
Fax: +44-1422 349429
(Wholesaler and manufacturer of
organic vegetarian and vegan
products)
Taylors of Harrogate
Pagoda House, Prospect Road
Harrogate HG2 7NX
Tel: +44-1423 889822
Fax: +44-1423 881083
(Tea blender and coffee roaster)
The Food Resource Base
Fife Food Centre, Faraday Road
Southfield Industrial Estate
Glenrothes KY6 2RU
Tel: +44-1592 775884
Fax: +44-1592 775955
(Manufacturer of fresh organic soups
and sauces)
The Quiet Revolution
The Coach House, 6 Duncan Street
London N1 8BW
Tel: +44-171 278 2121
Fax: +44-171 278 1958
(Processor of fresh organic soups)
The Village Bakery
Melmerby, Penrith
Cumbria CA10 1ME
Tel: +44-1768 881515
Fax: +44-1768 881848
(Wholly organic bakery, importer and
caterer, supplier to major multiples)
Traidcraft plc
Kingsway North, Gateshead
Tyne & Wear NE11 0NE
Tel: +44-1914 910591
Fax: +44-1914 822690
(Fair trade food organization)
Vintage Roots
Sheeplands Farm, Wargrave Road
Berkshire RG10 8DT
Tel: +44-118 940 1222
Fax: +44-118 940 4814
(Importer and wholesaler of organic
wines, beers, ciders, spirits, juices
and oils)
Whole Earth Foods
292 Portobello Road
London W11 1LR
Tel: +44-171 229 7545
Fax: +44-171 221 6416
E-mail:
[email protected]
http://www.earthfoods.co.uk
(Retailer, producer and wholesaler of
organic foods throughout Europe
under its own labels)
Windmill Organic Foods
66 Meadow Close
London SW20 9JD
265
Tel: +44-181 395 9749
Fax: +44-181 395 95749
(Importer of bulk ingredients for
on-sale to food manufacturers)
Fax: +44-1344 825072
(Major multiple chain store retailing
organic products; see also annex III)
CERTIFICATION BODIES
ASDA
Asda House, Great Wilson Street
Leeds LS11 5AD
Tel: +44-1132 435435
Fax: +44-1132 418304
(Major multiple chain store increasing
its involvement in organic products)
Bio-Dynamic Agricultural
Association (Demeter)
Woodman Lane
Clent, Stourbridge
West Midlands DY9 9PX
Tel: +44-1562 884933
Cooperative Wholesale Society
Hanover Building, Hanover Street
Manchester M60 4WS
Tel: +44-161 827 5592
Fax: +44-161 827 5495
(Major cooperative with increasing
involvement in organic retailing)
Planet Organic
42 Westbourne Grove
London W2 5SH
Tel: +44-171 221 7171
Fax: +44-171 221 1923
(Organic supermarket in London with
plans to establish regional outlets in
major cities in the United Kingdom)
Safeway
Argyll House
Millington Road, Hayes
Middlesex UB3 4AY
Tel: +44-171 695 6000
Fax: +44-171 695 7610
(Major multiple retailer involved with
organic products)
Organic Farmers and Growers
50 High Street, Soham, Ely
Cambridgeshire CB7 5HF
Tel: +44-1353 720250
Organic Food Federation
The Tithe House, Peaseland Green
Elsing, East Dereham
Norfolk NR20 3DY
Tel: +44-1362 637314
Fax: +44-1362 637398
Scottish Organic Producers
Association
Milton of Cambus Farm, Doune
Perthshire FK16 6HG
Tel: +44-1786 841657
Fax: +44-1786 841657
The Soil Association
40-56 Victoria Street
Bristol BS1 6BY
Tel: +44-117 914 2400
Fax: +44-117 925 2504
Sainsbury’s Ltd
Stamford House
London SE1 9LL
Tel: +44-171 695 0024
Fax: +44-171 695 7507
E-mail: robert.duxbury@tmo.
sainsbury.co.uk
(Major multiple with long involvement
in retailing organic products)
GOVERNMENT OFFICES
Tesco
Tesco House
Delamare Road, Cheshunt
Hertfordshire EN8 9SL
Tel: +44-1992 632222
Fax: +44-1992 644747
(Major multiple chain store with
increasing involvement in retailing
organic products)
United Kingdom Register of
Organic Food Standards (UKROFS)
Nobel House, 17 Smith Square
London SW1P 3JR
Tel: +44-171 238 6004
Fax: +44-171 238 6533
Waitrose
Doncastle Road
Southern Industrial Area, Bracknell
Berkshire RT12 4YA
Tel: +44-1344 424680
Mintel Market Intelligence
18-19 Long Lane
London EC1A 9HE
Tel: +44-171 606 4533
Fax: +44-171 606 5932
Ministry of Agriculture, Fisheries
and Food
Nobel House, 17 Smith Square
London SW1P 3JR
Tel: +44-171 238 5803
Fax: +44-171 238 6148
OTHERS
Annex II
Source countries of a sample of organic products seen at one
supermarket outlet in London, March 1998
Apples: Italy, Argentina, Austria
Artichoke: Italy (Sicily)
Asparagus: Spain
Aubergines: Italy (Sicily)
Avocados: Spain, especially
Andalucia
Beans (aduki, haricot, mung, pinto,
red kidney, soya):
United States
Beetroot: Spain
Cashews: Sri Lanka
Celery: Italy (Sicily)
Cherries: Italy (Sicily)
Chickpeas: Turkey
Chopped tomatoes: Italy
Cocoa: West Africa, Belize
Coconut chips: Sri Lanka (via Good
Food Foundation)
Cotton: Egypt, India, Turkey and Peru
Dates: Tunisia
Dried papaya: Sri Lanka (probably
organic, but not certified)
Dried apple, apricots: Turkey
Fennel: Italy (Sicily)
Ginger: Uganda
Grapefruit: Corsica
Grapes: Chile
Hazelnuts: Corsica
Lentils: Turkey, United States
Lettuces, various: Italy
Mango: Cameroon
Medlar: Italy (Sicily)
Melon: Italy (Sicily)
Onions, white: Argentina
Oranges: Spain, Morocco
Pears: Argentina
Peppers (green): Italy (Sicily),
Morocco
Potatoes: Italy (Sicily)
Prunes: France
Raisins: Turkey
Raspberries: Italy (Sicily)
Sesame: Ethiopia
Shelled Bolivian amazon nuts
(probably organic but not
certified): Bolivia
Silk: China
Sultanas: Turkey
Sunflower oil: France
Teas: India (Assam) and Sri Lanka
Tomatoes: Morocco
Organic produce sourced
from Israel’s Agrexco Carmel
Organic Department
Avocados
Capsicums, red and yellow
Carrots
Celery
Chinese leaf
Grapefruit, white and red
Lemons
Oranges
Sweet potatoes
Tomatoes, cherry
Annex III
List of organic products sold by
one supermarket (Waitrose), March 1998
Baby foods.
Fresh meat: beef, lamb, chicken.
Beers, wines, ciders, cordials: ales, ciders, lager, red
wines, white wines
Frozen foods: burgers, ice creams; peas; yoghurt
Breads and cakes: loaves – white, stone-ground,
wholemeal; rolls – white, stone-ground, wholemeal;
patisserie – cakes, pastries and flapjacks.
Chilled products: cooked meats, fresh pastas, fresh
salads, fresh juices, soups.
Grocery items: baked beans, biscuits, brown sugar,
canned tomatoes, chocolate, cocoa powder, coffee,
cornflakes, crisps/chips, flours, fruit and vegetable juices,
honey, hot chocolate, jams and marmalades, milks,
muesli, oatcakes and rice cakes, olive oil, pasta, porridge
oats, rice, soya beverages, tea bags, vegetable oils.
Dairy products: cheeses, butters, fresh milks, fresh
yoghurt and crème fraiche, eggs.
Seasonal fresh fruits, vegetables and herbs.
SELECTED BIBLIOGRAPHY*
IFOAM publications
To be ordered from the following address: IFOAM Head
Office, Ökozentrum Ismbach, D-66636 Tholey-Theley,
Germany. Tel: +49-6853-5190, Fax: +49-6853-30110,
E-mail: [email protected].
Directory of Training and Education Opportunities
for Tropical Organic Agriculture. Tholey-Theley:
IFOAM, 1995, 140 p.
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Published six times a year, reports on
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covers production, research, agropolitics and
conference reports; each issue has a special focus
on organic agriculture in a certain region.
Brochure describing principles and aims of organic
farming.
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Organic Agriculture Worldwide. IFOAM Directory
of the member organizations and associates.
Tholey-Theley: IFOAM - Annual. 1998/99, 64 p.
Vaupel, S. and Commins, K. Guide to Regulatory
Requirements for Exporting Organic Food into
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Other publications
Annuaire Vert. Paris: OCEP, annual. Edition OCEP, 11
rue Saint Ambroise, 75011 Paris, France. Tel:
+33-1-47004646, Fax: +33-1-47002491.
Annual directory, listing producers, suppliers,
distributors, wholesalers, retailers, exporters and
importers of organic products in France, entries
cover full address information, products handled
and type of activity.
*
Annotations have been provided when possible.
Ausstellung der BIO Fach: Catalogue. Büchenbach:
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GmbH. Industriestrasse 12, D-91186 Büchenbach,
Germany. Tel: +49-171-96100, Fax: +49-171-4016.
Catalogue of the annual organic trade fair, held in
Germany, usually in February of each year; lists
exhibitors in alphabetical order, as well as under
product groups, with contact details and products
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Products:
Marketing Handbook - 2nd ed. Eschborn: Protrade,
1997. 212 p. Protrade, P.O. Box 5180, 65726 Eschborn,
Germany.
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markets, outlines legal framework for trade and
gives hints on marketing organic products.
Health Foods: A Survey of the Netherlands and Other
Major Markets in the European Union. Rotterdam:
CBI, 1997, 128 p. CBI, P.O. Box 30009, 3001 DA
Rotterdam, Netherlands.
Gives overview on EU market for organic foods,
and gives practical advice on how to access it - also
covers packaging, labelling and other trade-related
environmental measures, tariffs and relevant trade
practices.
International Trade Centre (ITC) and Commonwealth
Secretariat. Business Guide to the Uruguay Round.
Geneva: ITC/CS, 1995, 392 p.
Guide explaining rules of the Uruguay Round
trade agreements and their implementation.
International Trade Centre (ITC) and Commonwealth
Secretariat. Business Guide to the World Trading
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Guide explaining rules of the Uruguay Round
trade agreements and their implementation.
Lampkin, N., and Padel, S. eds. The Economics of
Organic Farming: An International Perspective. Oxen:
CAB International, 1994, 480 p. CAB International.
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Certification of Organic Foodstuffs in Developing
Countries. Eschborn: GTZ, 1999. 34 p. Deutsche
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Social Development. Geneva: UNCTAD, 1996, 48 p.
(UNCTAD/COM/88). United Nations, Documents
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Schmidt, Hanspeter and Haccius, Manon. EU Regulation
“Organic Farming”. GTZ, Eschborn. Published and
distributed by Margraf Verlag, P.O. Box 1205, D-97985
Weikersheim, Germany.
Van Elzakker, B. et al. Benefits of Diversity: An
Incentive towards Sustainable Agriculture. New York:
UNDP (Bureau for Programme Policy and Evaluation),
1992. UNDP, One United Nations Plaza, New York, N.Y.
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Bad Dürkheim: Stiftung Ökologie und Landbau, 1998.
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D-67089 Band Dürkheim, Germany. Tel: +49-63-22 86
66, Fax: +49-63-98 97 01.
Wright, S. Handbook of Organic Food Processing and
Production.
London:
Blackie
Academic
and
Professional, 1994. Blackie Academic and Professional,
2-6 Boundary Row, London, SE1 8HN, United Kingdom.
Periodicals
Consumer Goods Europe (formerly: Marketing in
Europe). London: Corporate Intelligence on Retailing.
Corporate Intelligence on Retailing, 48 Bradford Square,
London WC18 3DP, United Kingdom. Tel:
+44-171-6969006, Fax: +44-171-6969004.
Monthly featuring short market studies on various
consumer goods in Western European countries;
occasionally also contains sector reviews on
organic foods.
Food Institute Report. American Institute of Food
Distribution, Inc. P.O. Box 972, 28-12 Broadway, Fair
Lawn, NJ 07410-0972. Tel: +1-201-791-5570, Fax:
+1-201–791-5222.
Weekly giving selected news. Comments and data
on food products in the United States; occasionally
features market information on organic products.
FoodNews. Foodnews Company Ltd. 80 Claverley Road,
Tunbridge Wells, Kent TN1 2UN, United Kingdom. Tel:
+44-1892-533813, Fax: +44-1892-511803.
Weekly providing market information on food
products, dried and processed fruit and vegetables,
worldwide; occasionally covers information on
organic products.
Fresh News. Fresh and Healthy Foods, 125 West Seventh
Street, Wind Gap, PA 18091, United States of America.
Tel: +1-610-8636700, Fax: +1-610-8634622.
Quarterly newsletter, introduces latest organic
products in the United States market.
Fruchthandel - Magazin. Dr Rolf M. Wolf Verlag
GmbH, Postfach 105551, 40046 Düsseldorf, Germany.
Tel: +49-211-991040, Fax: +49-211-663162.
Weekly occa sion ally providing market infor ma tion
on organic fresh fruit.
Fruitrop. Cirand-Flhor, 12 Square Pétrarque, 75016 Paris,
France. Tel: +33-1-53702165, Fax: +33-1-53702170.
Publishes 11 times per year, in English and French;
occasionally includes market information on
organic tropical fruit.
Frozen and Chilled Foods. DMG Business Media,
Queensway House, 2 Queensway, Redhill, Surrey RH1
1QS, United Kingdom. Tel: +44-1737-768611, Fax:
+44-1737-855470.
Monthly featuring news on the United Kingdom
frozen and chilled food industry and market;
occasionally covers information on organic food
products in the sector.
Health Food Business. Bestway Designs Ltd, Claremont
House, 12-18 Claremont Road, West Byfleet, Surrey
KT14 6DY, United Kingdom. Tel: +44-1932-336325,
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Monthly highlighting new products, legislation
and news on small business; occasionally features
news on organic products.
Organic and Natural News. Virgo Publishing Inc. 3300
N. Central Ave., Phoenix, AZ 85012, United States. Tel:
+1-602-990-1101, Fax: +1-602-990-0819.
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organic and natural products market in the United
States. January issue includes an annual “Buyer’s
Guide”.
Organic Trends: Critical Issues and Global News.
Agrisystems International, 125 West Seventh Street, Wind
Gap, PA 18091, United States of America. Tel:
+1-610-8636700, Fax: +1-610-8634622.
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for organic products, with international coverage.
The Organic Report. Organic Trade Association, 50
Miles Street, Box 1078, Greenfield, MA 01302, United
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the organic food industry, including legislation and
regulatory matters, production and trade.
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CFCE. Librarie du Commerce International, B.P. 428-16,
75769 Paris Cedex 16, France. Tel: +33-1-40733460, Fax:
+33-1-40733146.
Bimonthly featuring market information on fruit
and vegetables with international fresh coverage;
occasionally carries information on organic
products.
Veille Internationale: Fruits et Légumes Transformés.
Paris: CFCE. Librarie du Commerce International, B.P.
428-16, 75769 Paris Cedex 16, France. Tel:
+33-1-40733460, Fax: +33-1-40733146.
Monthly featuring market information on
processed fruit and vegetables with international
coverage; occasionally carries information on
organic products.
World Food Regulation Review. BNA International,
Heron House, 10 Dean Farrar Street, London SW1H 0DX,
United Kingdom. Tel: +44-171-222-559-4801, Fax:
+44-171-222-5550.
Monthly reports covering food regulations
worldwide and issues arising from them; track
provisions governing nutrition labels, additives,
hormones, pesticide residues as well as packaging
and disposal issues.
World Horticultural Trade and US Export
Opportunities. Washington DC: USDA. US Department
of Commerce, Technology Administration, National
Technical Information Service, Springfield, VA 22161,
United States of America. Tel: +1-703-6056060, Fax:
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Monthly providing information on the world
market situation and outlook for horticultural
products;
occasionally
includes
market
information on organic products.

Organic food and beverages

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