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TAMAP Organic Farming and Sustainable Agriculture in Sri Lanka Technical Assistance to the Modernisation of Agriculture Programme in Sri Lanka EuropeAid/138-539/DH/SER/LK Technical Assistance to the Modernisation of Agricultural Programme in Sri Lanka (TAMAP) TAMAP Organic Farming and Sustainable Agriculture in Sri Lanka July 2020 Submitted to: Delegation of the European Union to Sri Lanka and the Maldives 389, Bauddhaloka Mawatha, Colombo 7, Sri Lanka Ministry of National Policies & Economic Affairs Department of National Planning, The Secretariat, 1st floor Colombo 01, Sri Lanka This project is implemented by a Consortium led by Ecorys Nederland, B.V Technical Assistance to the Modernisation of Agriculture Programme in Sri Lanka Technical Report: TAMAP Organic Farming and Sustainable Agriculture in Sri Lanka Project title: Technical Assistance to the Modernisation of Agriculture Programme in Sri Lanka Project number: ACA/2017/389-911 Country: Sri Lanka Address: Ecorys Nederland B.V Watermanweg 44 3067 GG Rotterdam The Netherlands Tel. number: T: +31 10 453 86 76 Fax number: F : +31 10 453 87 55 Contact person: Nick Smart [email protected] Date of report: 6 July 2020 Disclaimer. The content of this report does not reflect the official opinion of the European Union. Responsibility for the information and views expressed lies entirely with the author(s) and the consortium led by Ecorys Nederland BV for the implementation of TAMAP Technical Assistance to the Modernisation of Agriculture Programme in Sri Lanka PROJECT SYNOPSIS Project Title: Technical Assistance to the Modernisation of Agriculture Programme in Sri Lanka Project Details: Project Ref. EuropeAid/138-539/DH/SER/LK Programme Dr Olaf Heidelbach No: Manager Date of 8 January 2018 Contracting Delegation of the European Union to project Authority Sri Lanka and the Maldives start: 389 Bauddhaloka Mawatha, Colombo 7, Sri Lanka Contract 36 months Name of Project Manager: Bart Probost Duration: contact Project Director: Nick Smart person (Contractor): Contract ACA/2017/389-911 Contractor’s Ecorys Nederland B.V No: name, Watermanweg 44 address, 3067 GG Rotterdam telephone The Netherlands numbers and T +31 (0)10 453 88 00 e-mail [email protected] address: Total EUR 4, 167, 000 Team Leader Dr. Christof Batzlen contracted Postal Address: Ministry of National amount: Policies and Economic Affairs, Treasury Building, Lotus Road, Colombo 01, Sri Lanka. [email protected] Technical Assistance to the Modernisation of Agriculture Programme in Sri Lanka TAMAP Study: Support to Organic Farming and Sustainable Agriculture 1 EXECUTIVE SUMMARY ............................................................................ 7 2 INTRODUCTION ....................................................................................... 13 Methodology ............................................................................................. 13 Justification ............................................................................................... 14 3 GLOBAL ORGANIC FARMING ................................................................ 16 History ....................................................................................................... 16 Organic farming in Asia ............................................................................. 17 Principles and methods of organic farming ................................................ 17 Productivity of organic farming .................................................................. 19 Standards and certification ........................................................................ 20 The international market for organic products ........................................... 22 4 ORGANIC FARMING IN SRI LANKA ....................................................... 26 History ....................................................................................................... 26 Legislation on organic farming in Sri Lanka ............................................... 29 Organic certification in Sri Lanka ............................................................... 31 International market .................................................................................. 31 Domestic market ....................................................................................... 32 Laboratories for organic farming ................................................................ 34 Extension, education and research ........................................................... 35 Availability of organic inputs ...................................................................... 36 5 SUCCESSFUL BUSINESS MODELS ....................................................... 37 Export markets .......................................................................................... 37 Examples of successful export models ...................................................... 39 Domestic market ....................................................................................... 42 Examples of successful domestic market models ...................................... 42 6 ORGANIC FARMING OF VEGETABLES, FRUITS AND SPICES ............ 46 Introduction ............................................................................................... 46 Cases studies ........................................................................................... 46 Organic vegetable value chain .................................................................. 46 Organic fruit value chain ............................................................................ 58 Organic spice value chain ......................................................................... 67 Social analysis - organic value chains ....................................................... 74 Environmental analysis - organic value chains .......................................... 75 7 PUBLIC SUPPORT FOR ORGANIC FARMING ....................................... 77 TAMAP Organic Agriculture Farming Report July 2020 Page i Technical Assistance to the Modernisation of Agriculture Programme in Sri Lanka 8 SWOT ANALYSIS .................................................................................... 83 9 GAP ANALYIS FOR ORGANIC AGRICULTURE ..................................... 85 10 RECOMMENDATIONS ............................................................................. 87 TAMAP Organic Agriculture Farming Report July 2020 Page ii Technical Assistance to the Modernisation of Agriculture Programme in Sri Lanka List of Annexes Annexe 1: History of organic farming ........................................................................ 89 List of Tables Table 1 Volume of EU organic agri-food imports .................................................... 24 Table 2 Tropical fruits, fresh or dried, nuts and spices per country of origin ........... 24 Table 3 Certified organic products in Sri Lanka, 1998 ............................................ 26 Table 4 Land under organic production in Sri Lanka (ha) ....................................... 27 Table 5 Gross margin analysis for an organic vegetable farm ................................ 56 Table 6 Gross margin analysis for an organic fruit farm ......................................... 65 Table 7 Gross margin calculations for an organic spice farm ................................. 72 Table 8: SWOT of the Sri Lankan organic farming sector ........................................ 83 List of Figures Figure 1 Global organic spice market ...................................................................... 25 Figure 2 The ten Asian countries with the largest organic area ............................... 28 Figure 3 Asian countries with the highest share of organic land in 2017 .................. 28 Figure 4 Value Chain Network Map for organic vegetables ..................................... 53 Figure 5 Value Chain Network Map for organic fruits .............................................. 62 Figure 6 Value Chain Network Map for organic spices ........................................... 70 Figure 7 Development of a National Standard ......................................................... 80 TAMAP Organic Agriculture Farming Report July 2020 Page iii Technical Assistance to the Modernisation of Agriculture Programme in Sri Lanka List of Photos Photo 1 SLSI organic certificate ............................................................................. 34 Photo 2 Mihimandala .............................................................................................. 43 Photo 3 Organic vegetable production .................................................................... 43 Photo 4 Good Market retail shop, Colombo ............................................................ 45 Photo 5 Good Market: Saturday market ................................................................. 45 Photo 6 Organic farms in Sri Lanka ........................................................................ 48 Photo 7 Vegetable storage, packaging and land fallowing on organic vegetable farms ......................................................................................................... 51 Photo 8 Organic fruits from a Kandyan Home Garden System ............................... 60 Photo 9 Organic fruit production on large-scale farms ............................................ 61 Photo 10 Organic spice farming ............................................................................... 68 Photo 11 Male and female workers of organic farms ................................................ 75
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