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 iii Note xiii Tables xi

PART I – BASIC CONCEPTS 1

INTRODUCTION AND GENERAL SUMMARY 3

Background 3 Product description and scope of the study 3 Objectives of the study 3 Summary of market opportunities for developing countries 4

Chapter 1 ORGANIC FARMING 6

Concepts 6 Standards and certification 7 Practical obstacles and constraints to conversion in developing countries 7

Chapter 2 CERTIFICATION 9

Introduction 9 What is certification of organic food products? 9 Certification procedures 10 Accreditation 11 Standards: development and application 11 IFOAM 11 Demeter International eV 12 Codex Alimentarius Commission 12 World Trade Organization 12 International Organization for Standardization 13 CEN and CENELEC 13 Regulations in major markets 14 European Union 14 Other markets 17 vi

Certification in exporting countries 17 Certification by local bodies 17 Certification under partnerships between local and international bodies 18 Certification by a local branch of an international certification body 18 Certification by international bodies 19 Some types of certification arrangements 19 Subcontracting 19 Grower groups 19 Setting up a certification programme 20 The long-term possibility 20

Annexes I. Basic concepts 21 II. MAFF consolidated version of EC Regulation 22

PART II – GLOBAL OVERVIEW: TRADE AND SUPPLY 51

Chapter 3 OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS 53

Introduction 53 Target markets 55 Denmark 55 France 55 Germany 55 Netherlands 56 Sweden 57 Switzerland 57 United Kingdom 58 Other major markets 58 Market segments 59 The retail sector 59 Food processing industry 59 Catering and institutional sector 60 Distribution channels 60 Importers, processors, repackers 60 Food manufacturers 60 Retail trade 61 Fair trade 61 Market access 62 Organic certification and food laws 62 Customs duties 63 Sources of information 63 Trade fairs 64 FAO’s contribution to organic agriculture 65

Chapter 4 WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 67

Introduction 67 Africa 68 Asia 79 vii

Oceania 88 Europe 90 The Americas (excluding NAFTA countries) 112 NAFTA countries 125

Chapter 5 WORLD SUPPLY BY PRODUCT GROUP 133

Animal products 133 Meat, dairy products, eggs 133 Honey 133 Fish 133 Vegetable products 133 Vegetables, roots and tubers 133 Fruits and nuts 134 Cocoa, coffee, tea and maté 134 Cereals 135 Oil-seeds and oleaginous fruits 135 Prepared foodstuffs 136 Vegetable oils and fats 136 Sugars and sugar confectionery 136 Preparations of vegetables, nuts and other parts of plants 136 Alcoholic beverages 136 Food additives 136 Other processed food products 137 Miscellaneous products 137 Feedstuff 137 Cotton 137 Natural pesticides and repellents 137 Other non-food products 137

PART III – MAJOR MARKETS 139

Chapter 6 DENMARK 141

Introduction 141 Supply and demand 141 Production 141 Market size 142 Import and market requirements by major product group 143 Fresh fruits and vegetables 143 Dried fruits and nuts, seeds and kernels 143 Processed fruits and vegetables 143 Grains, flour and bakery products 144 Coffee, tea and cocoa 144 Herbs and spices 144 Sweeteners 144 Dried legumes/pulses 145 Oil-seeds and oils, starch, soy 145 Other food and beverage products 145 Animal feed 145 Market characteristics 145 viii

Market segments 145 Consumer habits and product preferences 145 Sales promotion and advertising 146 Market access 146 Customs duties 146 Food laws and regulations 147 Distribution channels 147 Agents, importers, repackers, processors 147 Food and beverage manufacturers 148 Retail organizations 148 Catering and institutional trade 149 Market prospects 149

Annex – Denmark: selected addresses 151

Chapter 7 FRANCE 154

Introduction 154 Supply and demand 154 Domestic production 154 Retail sales 156 Market characteristics 157 Consumer patterns 157 Product and market requirements 159 Market access 160 Regulations on organic foods 160 Certification 161 Distribution channels 161 Retail structure 161 Processors/packers and wholesalers 162 Imports 163 Future trends 163 Competition, prices and margins 163 Prospects and opportunities 164 Overall prospects 164 Specific market opportunities 165

Annexes I. France: selected addresses 167 II. Individual import authorizations for organic food products originating in third countries in 1997 171 III. Commercial organic products sold in 1997 173

Chapter 8 GERMANY 176

Organic farming: historical development 176 Supply and demand 176 Domestic production 176 Retail sales 178 Imports and exports 178 Market characteristics 180 Consumer categories 180 ix

Consumer confusion about organic products 181 The generic bio-label 181 Purchasing organic foods: the criteria used 181 Fair trade and its relationship with organics 182 Market segmentation 184 Market requirements 184 Importers’ requirements 185 Competition and prices 185 Organic certification and food laws and regulations 187 EU Regulation 2092/91 187 Organic certification for the German market 187 Harmonization of EU food laws 187 Permissible agricultural ingredients of non-organic origin 188 Distribution channels 188 Traders, importers, packers, processors and wholesalers 188 Food manufacturers 189 Specialist organic retail outlets 190 Natural food shops (Naturkostläden) and organic supermarkets 190 Farm shops, food boxes and other direct selling methods 191 Reform shops 191 Other specialist outlets; catering 191 Major retail chains 191 Summary and market prospects 193

Annexes I. Germany: selected addresses 195 II. List of approved ingredients of non-organic origin 198

Chapter 9 THE NETHERLANDS 199

Supply and demand 199 Domestic production 199 Imports 200 Exports 201 Retail sales 201 Market characteristics 203 Consumer behaviour 203 Market segments and end-users 205 Market requirements 206 Fresh fruits and vegetables 206 Processed fruit and vegetables 207 Dried fruits and edible nuts 207 Grains, cereals, pulses and seeds 208 Importers’ requirements 210 Competition and prices 211 Food laws and regulations 212 Distribution channels 212 Traders, importers, packers, processors 212 Wholesalers 213 Retail outlets 214 Food manufacturers 215 Prospects 215 x

Annexes I. Netherlands: selected addresses 216 II. Countries in which SKAL carries out organic inspection services 218 III. Specifications of Euroherb Bio BV 219 IV. Tradin: certified organic products traded 221

Chapter 10 SWEDEN 222

Introduction 222 Supply and demand 222 Domestic production 222 Exports 224 Imports 224 Market requirements by major product group 225 Fresh fruits and vegetables 225 Processed fruits and vegetables 226 Cereal and bakery products 227 Coffee and tea 228 Vegetable oils, vinegar, and condiments, spices and herbs 228 Sugar and syrup 228 Beverages 228 Other product groups 229 Market characteristics 230 Market segments 230 Market trends 230 Sales promotion and marketing 230 Market access 231 Food laws 231 Swedish control organizations 231 Distribution channels 232 Integrated retail and wholesale groups 232 Market prospects 235

Annex – Sweden: selected addresses 236

Chapter 11 SWITZERLAND 240

Supply and demand 240 Production 240 Market size 240 Import and market requirements by major product group 241 General 241 Fresh fruits and vegetables 241 Dried fruits and nuts 241 Processed fruits and vegetables 241 Cereals, flour and bakery products 242 Coffee, tea and cocoa 242 Herbs and spices 242 Sugar and sweeteners 242 Oil products 242 Dairy products 242 xi

Other food products 242 Market characteristics 242 Consumer habits 242 Promotion and advertising 243 Market access 243 Customs duties and restrictions 243 Food laws and regulations 243 Distribution channels 244 Importers and agents 244 Food industry 244 Retail trade 244 Catering 246 Market prospects 246

Annex – Switzerland: selected addresses 248

Chapter 12 UNITED KINGDOM 251

Introduction 251 Supply and demand 251 Retail sales 251 Imports 252 Domestic production 252 Market characteristics and requirements 253 Market characteristics 253 Food laws and regulations 258 Distribution channels 259 Importers, traders and wholesalers 259 The retail sector 259 Processors and food manufacturers 262 Market prospects 262

Annexes I. United Kingdom: selected addresses 264 II. Source countries of a sample of organic products seen at one supermarket outlet in London, March 1998 266 III. List of organic products sold by one supermarket (Waitrose), March 1998 267

SELECTED BIBLIOGRAPHY 269

Tables 3.1 World markets for organic food and beverages, 1997 53 3.2 European markets: percentage shares of retailers in organic food sales, 1997 61 4.1 Europe (EU and EFTA): organic agriculture in figures 91 7.1 France: organic livestock and livestock products, 1995 and 1996 155 7.2 France: imports of organic products from non-EU countries, 1993-1997 156 8.1 Germany: number of farms and areas under organic farming, 1 January 1998 177 8.2 Germany: AGÖL member organizations, 1 January 1999 177 8.3 Germany: sales of organic foods, by product group 179 xii

8.4 Germany: turnover of the organic trade, by main distribution channel, 1997 184 8.5 Germany: major food retailers and their involvement in organic food sales 192 10.1 Sweden: consumption of organic foods, by volume and by value, 1997 223 10.2 Sweden: market for processed fruits and vegetables, by quantity and by value, 1997 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 World Trade Organization Part I

BASIC CONCEPTS

INTRODUCTION AND GENERAL SUMMARY

Background In recent years, global aware ness of health and indus tri al ized as well as devel oping countries envi ron mental issues has been growing, and increasingly encourage organic and other forms of sus tain ability has become the key word in sus tain able agri cul ture. dis cus sions on eco nomic devel op ment, par ticu larly in rela tion to devel oping coun tries. The ever- growing This study endeav ours to fill an infor ma tion gap number of health and environ men tally con cerned among deci sion makers at govern ment and consumers, mainly in the indus tri al ized countries of non-government levels by pro viding compre hen sive Western Europe, North America, Japan and informa tion on the mar kets for organic products, the Australia, is at the root of this devel op ment. The supply situa tion world wide and cer ti fi ca tion of organic inter na tional com mu nity is becoming more and more origin. As this study emphasizes again and again, con scious of these issues, and gov ern ment poli cies in 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 In prin ciple, the study covers the whole range of food defined in chapter 1. Organic prod ucts are currently and bev erage prod ucts. How ever, some items like not classi fied separately under the Stan dard meat and dairy prod ucts are taken up very briefly, and Interna tional Trade Clas si fi ca tion (SITC) and the others like fish and fishery prod ucts are referred to Harmo nized Commodity Descrip tion and Coding only occa sion ally. The iden ti fi ca tion of the prin cipal System (HS), both of which group organic prod ucts product groups being traded in organic form, in together with conven tional prod ucts. For example, particular those that can be exported by devel oping organic fruits and vege ta bles are covered by the SITC coun tries, is a major pur pose of this study. and HS head ings for fruits and vege ta bles.

Objectives of the study

The ultimate purpose of this study is to help should also help them improve their bargaining developing countries in their efforts to improve the posi tion vis-à-vis importers and other commer cial utiliza tion of their agri cul tural resources and to partners. increase and diver sify their exports. The infor ma tion pro vided is there fore intended to enable these The spe cific aims of the study are to: coun tries, and their farmers and other enter prises, to modify their pro duc tion and mar keting activi ties so q Explain what organic agriculture is and which as to be better able to exploit existing and potential products can be considered organic products in a export oppor tu ni ties for organic prod ucts. The study commercial sense (i.e. certified organic); 4 CHAPTER 1 – INTRODUCTION AND GENERAL SUMMARY

q Provide an understanding of what certification programmes, specifically in the formulation of is, why it is necessary and what it entails; explain production and export policies; what needs to be done in developing countries; q Individual enterprises – whether farmers, q Present an overview of world trade in organic processors, exporters or importers – involved in the products, and iden tify major producing/exporting organic trade; coun tries and import markets, describing their main char ac ter is tics; q Individuals and organizations preparing or evaluating investment proposals for organic farming, q Identify products that are or can be grown processing facilities, joint ventures and similar organically and sold commercially with a view to projects; building up profitable export markets; q Inter na tional organiza tions (such as the Food q Provide market information on quality and Agri cul ture Organi za tion of the United Nations – requirements, with special reference to required FAO), devel op ment banks and non-governmental certification/labelling systems and procedures; organiza tions (NGOs) involved in organic produc tion and trade; q Provide a better understanding of the struc ture, compe ti tion and pricing in the markets surveyed; q Trade associations in exporting and importing countries, export promotion bodies, chambers of q Examine distri bu tion chan nels and iden tify commerce, and member organizations and associates major agents and importers, industrial end-users, of the International Federation of Organic retail organiza tions, and other organi za tions and Agriculture Movements (IFOAM). asso cia tions. The study has been designed as a practical tool for This study is expected to be of assistance to the use in training courses, seminars, work shops, following target audiences: mar keting tours, etc., whether organ ized by the Interna tional Trade Centre UNCTAD/WTO (ITC), q Government agencies and ministries concerned other organiza tions or by pro ducers/exporters with organic agriculture and trade development them selves.

Summary of market opportunities for developing countries

With retail sales of organic food and beverages There are good reasons to conclude that the market reaching an estimated $11 billion in the seven for organic food and beverages is growing rapidly in markets covered by this survey (Denmark, France, most countries in Western Europe, North America, Germany, the Netherlands, Sweden, Switzerland, Japan and Australia. Expansion is also taking place in Sweden, the United Kingdom) and in Austria, Italy, a few developing countries though at a slower pace. the United States of America and Japan in 1997, trade The currently small share of organic products in the in organic foodstuff has become an important global food and beverage trade in all these markets indicates agribusiness. Preliminary estimates for 1998 indicate a large long-term potential. Expectations of growth retail sales in these markets of $13 billion to $13.5 are underpinned not only by strong and increasing billion. The organic trade is of particular interest in a consumer awareness of health and environmental development context because of the spectacular growth that has taken place in recent years, with issues, but also by the more goal-oriented and growth rates of between 5% and 40% expected over aggressive marketing and promotion being the medium term, depending on the market in undertaken by the major retail groups. Product question. It should be noted that the continuous development and innovations in packaging by food growth in the organic sector is all the more processors and manufacturers, as well as supportive remarkable since overall food sales is experiencing government policy in many countries, will also push either slow growth or stagnation. up world demand. CHAPTER 1 – INTRODUCTION AND GENERAL SUMMARY 5

It seems clear – at least in the short to medium term – market information (for example on which products that an insuf fi cient supply of organic prod ucts will be to grow, which markets and distribution channels to the main problem rather than lack of demand. choose, the competition, market access) and Though domestic produc tion is growing rapidly in insufficient financing. Certification is a major many markets, demand appears to be expanding even problem that they share with producers in developed faster. This opens up opportu ni ties for exporters in countries. Importers, food manufacturers, retail devel oping coun tries, not only for those already in the organizations and consumers need a guarantee of business but also for others who would like to start organic origin. In other words, the organic trade faces production. A review of the world supply situa tion a number of challenges in the future. shows that more than 130 coun tries produce certi fied organic food and bever ages in commer cial quan ti ties, On bal ance, how ever, there is no doubt that the world including at least 65 devel oping coun tries of which mar kets for organic food and bev er ages will con tinue to about 15 are least devel oped (LDCs). Produc tion also offer devel oping coun tries profit able export exists in most tran si tion econo mies. It should be opportu ni ties. All of the major mar kets under review noted that interest in promoting organic agri cul ture in offer good pros pects for suppliers of organic prod ucts devel oping as well as devel oped coun tries is rising. that are not produced domes ti cally: exam ples are coffee, tea, cocoa, spices, tropical fruits and vege ta bles Although the overall picture looks highly posi tive, a and citrus fruits. How ever, there are also very good number of potential risk factors should be borne in pros pects for sev eral prod ucts that are pro duced in the mind when evaluating future devel op ments in the main mar kets them selves. Such oppor tu ni ties exist not organic food busi ness. For example, occasional only for off-season produce (such as fruits and oversupply of a given product may not only have vege ta bles), but also for many other prod ucts like imme diate but also more long- term nega tive effects. in- season fruits (e.g. apple and pears) and vegeta bles, Further more, other forms of environ men tally cane sugar, grains, cereals, pulses and seeds, for the friendly and sustain able agricul ture are likely to simple reason that the rap idly growing demand in most result in increased compe ti tion in the future. Reduced mar kets cannot be met by local sup plies, at least in the price premiums for organic produce and insuf fi cient short and medium term. prof it ability among farmers and other opera tors are also factors to reckon with. Unfa vour able press (e.g. To succeed in building up an export trade in organic fraud) and scare stories, whether justified or not, prod ucts, exporters will find that careful selec tion of cannot be excluded either. target markets and distri bu tion chan nels is of the utmost impor tance. A strong and reli able rela tion ship Developing countries produce a wide range of with an importer/distributor in the target markets is an organic products and many are doing relatively well. abso lute must in estab lishing a profit able busi ness. However, most of them suffer from a number of Finally, suppor tive govern ment policies as well as constraints, such as the lack of technical know-how assistance from the inter na tional commu nity are (e.g. on production methods), lack of storage and other neces sary elements. processing facilities, poor logistics, inadequate Chapter 1

ORGANIC FARMING

Concepts

The con cept of organic farming is based on a holistic diversi fied crop rota tion sys tems. The number of view point, meaning that nature is per ceived to be more ani mals kept on the farm and the avail able land area than just the sepa rate indi vidual ele ments into which it are cor re lated so that farm units can cover their need may be split. Its princi ples are found in ecology, a for feed and soil nutri ents from within the system. sci ence con cerned with the inter re la tion ship of living organ isms and their envi ron ments. In prac tical terms, Among its key char ac ter is tics are the use of organic this means that organic farmers obtain their inspi ra tion mate rials to main tain organic matter and nutri ents in and learn from natural eco- systems. Farmers try to the soil (including green manure), nitrogen-fixing imitate at farm level basic charac ter is tics of rele vant plants, pest- resistant plant varie ties, soil man age ment eco- systems, for instance by working towards the techniques such as mulching and the use of fallow maximal use and recy cling of on-farm resources periods, various crop ping systems (including inter- (fodder, manure, organic waste, etc.). cropping) and agro for estry. (Agro for estry con sists of land-use systems in which woody peren nials are Organic farming differs from indus tri al ized grown in asso cia tion with crops and/or livestock.) agri cul ture in that in the latter, bio logical sys tems are Organic farming gives due consid era tion to animal to a larger extent replaced by tech nical sys tems. For wel fare and the use of manual, mechanical and instance, the diversi fied rota tion of crops, with thermic weeding. its bio logical sig nifi cance, is often supplanted by monocul tural prac tices giving rise to the need Organic farming merges tradi tional and respectful to use pes ti cides and arti fi cial fer til izers, and views on nature with modern scien tific insights. It organic manure is often exchanged for arti fi cial encom passes several farming methods and fer til izers. approaches. For instance, research carried out by Müller and Rusch in the first half of this cen tury has The con cept of organic farming also covers eco nomic been adapted and further developed by one of and social aspects of agri cul tural pro duc tion, local as Germany's largest organic farmers’ asso cia tions well as global. (Bioland; see chapter 8). The Soil Asso cia tion in the United Kingdom (see chapter 12) has its roots in the In organic farming, the aim is to sup port and work of Albert Howard and Eve Bal four which strengthen bio logical processes without recourse to focuses on soil fer tility and health. technical reme dies such as synthetic fer til izers and pes ti cides and the geneti c modi fi ca tion of organ isms; Biody namic agricul ture (a contracted trans la tion of hence, the approach to the con trol of weeds, pests and the German biologisch-dynamische Land wirtschaft) dis eases is pri marily pre ven tive. is yet another approach; it is based on anthro po sophy and the ideas for mu lated in the 1920s by the Aus trian Organic farming is based on the enhance ment of the Rudolf Steiner. The main te nance and further ance of struc ture and the fer tility of the soil, a balanced life- processes in the soil, and in nature in gen eral, as choice of crops, and the imple men ta tion of well as the harnessing of cosmic energy and other CHAPTER 1 – ORGANIC FARMING 7 influ ences from the sun, the stars, the moon and other friendly but not organic. An example is low- planets, are basic prin ci ples. Bio dy namic agri cul ture external- input sus tain able agricul ture (LEISA), advo cates the com bi na tion of animal hus bandry and which is based on the increased use of local crop pro duc tion (mixed farming) and it uses com post resources. A key factor dis tin guishing LEISA from and bio dy namic prepa ra tions (natu rally occur ring organic farming is the use of chemical inputs, which plant, animal and mineral materials which are is reduced but not elimi nated. com bined in spe cific recipes) in order to vitalize the soil and to enable it to transmit this vitality to plants Integrated farming systems combine the use of and subse quently to animals and human beings. chemical and bio logical con trols. Among the Sowing, culti va tion and har vesting are timed techniques util ized are inte grated pest manage ment according to cosmic rhythms. (IPM), inte grated nutrient manage ment (INM) and integrated weed manage ment (IWM). Inte grated There are other but not organic approaches which farming sys tems are seen by some as a com pro mise rep re sent alter na tives to high- external- input pro duc- between organic farming and inten sive con ven tional tion sys tems, and which are more environ men tally agricul ture.

Standards and certification

The sub jects of stan dards and cer ti fi ca tion and the world wide. Sev eral coun tries are for mu lating or have forms they have taken worldwide are discussed in adopted laws and regu la tions on organic pro duc tion greater detail in chapter 2. What is impor tant to point and proc essing and on cer ti fi ca tion require ments to out here is that one of the most sig nifi cant fac tors con trol the use of labels indi cating organic origin. dis tin guishing organic farming from other concepts of sus tain able agricul ture is the existence of The cer ti fi ca tion of organic pro duc tion methods is an produc tion stan dards and cer ti fi ca tion pro ce dures. increasingly impor tant aspect of the inter na tional Standards have been developed by pri vate trade in organic prod ucts. Most regu la tions require asso cia tions, enti tling mem bers to use the respec tive prod ucts that are labelled organic to be cer ti fied by an associa tions’ organic brands and guarantee labels inde pendent body, thereby pro viding a guar antee that when mar keting their prod ucts. At least 100 regional the goods have indeed been pro duced according to or national stan dards have been developed organic pro duc tion stan dards.

Practical obstacles and constraints to conversion in developing countries

As organic agricul ture seems fairly similar to many con ver sant with the princi ples of organic farming, tra di tional farming sys tems in devel oping coun tries, may not have this exper tise. Research into these con ver sion from these tradi tional systems and condi tions is essential to organic farming: for cer ti fi ca tion may appear to be an obvious thing to instance, a cer tain crop ping system may be pref er able aspire to. How ever, cer ti fi ca tion is costly and for in one area, whereas in another area the threat of a sub sis tence farmers with small mar ket able sur pluses, cer tain pest would dic tate a dif ferent approach. it may not be eco nomi cally fea sible. Addi tion ally, many smallholder produc tion systems cause soil Uncer tain ties about own er ship and access to land are deg ra da tion and are not envi ron men tally sus tain able. real obsta cles to con ver sion. Farmers have to be sure that they will be able to benefit from investing, for The adop tion of organic farming tech niques may also example, in improved soil fer tility in order to want to be constrained by the lack of know-how and the make such an invest ment. Dif fi cult access to credit is absence of training and exten sion facili ties. Fur ther more, exper tise on local farming con di tions is another factor often impeding ini tia tives and the a basic require ment and out siders, while they may be imple men ta tion of con ver sion proj ects. 8 CHAPTER 1 – ORGANIC FARMING

Some farmers do have access to finan cial resources These costs, which take such forms as for instance the and are more likely to con sider con ver sion. How ever, pol lu tion of drinking water and reduced bio- diversity, they also have to con tend with mar keting con straints. are not reflected in the market prices of the prod ucts The market for organic prod ucts is still com para tively of con ven tional farming; if they were, these prod ucts small and is mainly con cen trated in the European would perhaps be less price com peti tive. Union, the United States and Japan, making access to Fur ther more, some enterprises have an interest in both market infor ma tion and the mar kets them selves promoting the inputs on which these conven tional dif fi cult. The length of the con ver sion period, sys tems are based, and stimu late activi ties pro moting nor mally two to three years, is also a barrier, as their use, including tech no logical research. prod ucts usu ally cannot be sold as organic during this period. Indi vidual small holders are usu ally advised to join or to form coop era tives or other farm ers' groups in order These are some of the direct impediments to to over come some of the prob lems described above, con ver sion by smallholders. How ever, the issue is create the required critical mass, build the nec es sary wider and more com plex. Take the ques tion of the infra struc ture (pri mary proc essing and packaging external costs of high- input con ven tional farming. facili ties), cut costs and improve market access. Chapter 2

CERTIFICATION

Introduction A tomato has a price in the market place. A tomato methods had actu ally been used. Simi larly, pro ducers claimed to be pro duced in accor dance with organic were in for unfair compe ti tion in the sense that farming prin ci ples, i.e. an organic tomato, often has a prod ucts which were organic only to a cer tain degree higher price in the same market place. A common could be claimed to be organic or envi ron ment way of informing con sumers that cer tain prod ucts are friendly in various ways and there fore enti tled to a pro duced according to organic pro duc tion prin ci ples, price pre mium. thereby jus ti fying a price pre mium, is the indi ca tion on product labels that the prod ucts are organic. Cer ti fi ca tion is one way of ensuring that prod ucts claimed to be organic are actu ally pro duced During the last two dec ades there has been an according to organic farming prin ci ples. It is thus a extraor di nary growth in the use of labels refer ring to way of pro tecting con sumers, pro ducers and traders the organic origin of prod ucts, as well as labels against the use of mis leading or decep tive labels. It is sug gesting organic produc tion methods using terms also a mar keting instru ment ena bling producers to like ‘green’ and ‘eco-friendly’. Until regu la tions on access mar kets for organic prod ucts and obtain the label ling of organic prod ucts were imple mented, premium prices. Finally, it creates trans par ency, as it was dif fi cult for consumers to know what was infor ma tion on cer ti fied pro ducing organi za tions and meant by the various terms and which produc tion their prod ucts is nor mally made public.

What is certification of organic food products?

Cer ti fi ca tion is a pro ce dure for verifying that a and pro ce dures, and man age ment regu la tions for cer- product con forms to cer tain stan dards. In the case of ti fying the confor mity of their member farmers and organic prod ucts, cer ti fi ca tion is pri marily an their prod ucts with these stan dards. Some cer ti fi ca- acknow ledge ment that these prod ucts have been pro- tion bodies do not have their own stan dards, and use duced according to organic produc tion stan dards official standards. Thus a cer ti fi ca tion programme (annex I to this chapter defines the basic prin ci ples of may relate to official stan dards or to pri vate stan - this cer ti fi ca tion). These stan dards may be the stan- dards; how ever, wher ever official regu la tions are in dards of pri vate asso cia tions or com pa nies, or of cer- place, pri vate cer ti fi ca tion pro grammes must be ti fi ca tion bodies, or of the State. designed so that the cer ti fied prod ucts comply with both the stan dards of the pri vate organiza tion con - Cer ti fi ca tion bodies may use dif ferent pri vate or offi- cerned and with offi cial regu la tions. cial stan dards against which to carry out their cer ti fi- cation activi ties. For instance, organiza tions of Once cer ti fied, organic prod ucts are mar keted car rying organic pro ducers may estab lish their own stan dards, a certi fi ca tion mark indicating that the prod ucts are and set up their own cer ti fi ca tion pro grammes, rules certi fied organic. The certi fi ca tion mark attests to 10 CHAPTER 2 – CERTIFICATION con for mity with cer tain stan dards and is in itself not a confirm that production and handling conforms to trade mark. How ever, in most countries the standards. A certification body may operate its own cer ti fi ca tion mark is also reg is tered as a trade mark. inspection activities, or inspection may be carried out on its behalf by external inspection bodies. The A dis tinc tion can be made between pri vate marks (intro- decision as to whether adequate confidence is duced by com pa nies or organic asso cia tions which have provided that production and handling are in adopted cer ti fi ca tion programmes), marks issued by conformity with the standards rests with the cer ti fi ca tion bodies, and national marks des ig nated by certification committee. If a certification body has gov ern ments. Most cer ti fi ca tion programmes use their its own standards against which certification is own logos; in this way, cer ti fi ca tion also serves to dis tin- carried out, it may also have a standards setting guish the prod ucts of their mem bers or con tracted committee. opera tions from those of their com peti tors. Certification procedures for the certification of For producers to enter a specific market for certified organic products should make it possible to track and organic products, their products must be produced control the flow of products from primary production and certified according to the standards applicable in at farm level through each stage of manufacturing that market. If the market has State regulations, these right to the final consumer product. regulations must be complied with. In some cases, it may be an advantage to be certified by a certification Certification is based on a systematic procedure body with a certification mark that is well known in consisting of several steps. The operator, i.e. the that market. farmer, the processor, the trader or whoever is handling the product and needs certification, and a For a product to be cer ti fied organic, all opera tors in certification body sign a contract, and then the the product chain, including farmers, proc es sors, certification body registers the operator. Farmers are manu fac turers, exporters, importers, wholesalers and required to provide basic information on the farm, retailers must be cer ti fied as acting in con for mity with such as size of fields, crops, crop rotation, etc. the stan dards and regu la tions of the certi fi ca tion Processors and packers must submit information on programme con cerned. Sometimes different recipes, capacities, range of products, operations, etc. certi fi ca tion bodies cer tify different opera tors in the product chain. The next step is inspection. It may be carried out by an inspection body on behalf of the certification body Certification may be linked to the production of certain or by the certification body itself. On-site checks are products, or it may relate to the operation as such, for carried out by inspectors who follow a verification instance the fields of a farm. Such differences depend programme. At the level of farms or operators, on the certification scheme applied. inspections cover fields and facilities, production practices, inputs and materials used, and records. The Once certified, it is the operator who labels the product findings are presented in a report and submitted for with the certification mark and it is the producer who is evaluation, normally by a special certification continuously responsible to the certification body committee representing various areas of competence and/or the owner of the mark for its correct use. and different sectors. The third step is certification. If the certification body is confident that the operation is It should be noted that cer ti fi ca tion of organic prod ucts in conformity with the standards against which the is basi cally the cer ti fi ca tion of a pro duc tion system, as inspection and certification are carried out, a opposed to the certi fi ca tion of a product. It is more certificate will be forwarded to the operator, stating com plex than product certi fi ca tion because it cannot such conformity. The operator will be licensed to use be based solely on meas ur able product char ac ter is tics. the certificate or mark of certification on its products.

Certification procedures The inspection of a certification programme covers agricultural production, processing, trade, labelling Broadly, the certification process may be split into and certificates. The key elements of inspection are two parts: inspection (or control) to verify that verification and evaluation. production and handling are carried out in accordance with the standards against which Certification is not a one-time procedure: it is carried certification is to be done; and certification to out continuously on the basis of ongoing monitoring CHAPTER 2 – CERTIFICATION 11 and inspection. The cost of certification varies. At the the require ments, it may be awarded accredi ta tion farm level it is generally a fixed amount, calculated status, meaning that an authorita tive body gives from the number of days required for the inspection. formal rec og ni tion that the cer ti fi ca tion body is For processors and traders there may be a fixed price, com pe tent to carry out cer ti fi ca tion activi ties. An as well as a percentage of the commercial value accredi ta tion con tract is signed, which sets out the ranging between 0.3% and 1%. terms and con di tions for the use of the accredi ta tion status. Accreditation There is no international regulation on who may or may The process of cer ti fi ca tion should meet basic cri teria not carry out accreditation. However, several countries of trans par ency and inde pend ence (freedom from the have designated official bodies for the accreditation of influ ence of vested inter ests). Cer ti fi ca tion bodies may certification and inspection bodies. The International be evalu ated according to their ability to meet such Accreditation Forum (IAF) groups together 18 of the cri teria, and this requires an analysis of their world’s 30 accreditation bodies; one of its objectives is cer ti fi ca tion sys tems, including an assess ment of their to establish the equivalence of its members’ personnel, standards and their inspec tion and accreditation programmes on the basis of a multilateral, certi fi ca tion pro ce dures. If a certi fi ca tion body meets mutual recognition agreement among them.

Standards: development and application

Stan dards set the frame for organic farming and proc- Commission is an important step towards a common essing prac tices and the use of marks and descrip tions understanding of what the term implies. in ref er ence to organic pro duc tion methods. Pro duc- tion stan dards and the accom pa nying brands were in The inter na tional trade in organic prod ucts can there- the past largely devel oped by organi za tions in the pri- fore be quite complex. Many devel oping coun tries, vate sector, which also author ized com plying farmer mostly exporters, could benefit from increased har - mem bers to use their brands. moni za tion or an inter na tional pro ce dure for estab - lishing the equivalence of organic standards. Over the last decade, standards have increasingly How ever, stan dards do exist and are being con tinu- been embodied in public regulations, including laws. ously developed at the inter na tional level, par ticu- These regulations define the conditions for references larly in two forums: IFOAM and the Codex to organic production methods on product labels. Ali men ta rius Com mis sion. Such standards may set out the principles for organic farming, processing and trade, list prohibited or IFOAM allowed substances or conduct, and prescribe control and certification measures. The Inter na tional Fed era tion of Organic Agri cul ture Move ments (IFOAM) was estab lished in 1972 as an There is at present no regulation on organic products umbrella organiza tion for national organic agri cul- applicable worldwide. Different associations, ture asso cia tions. Mem bers also include cer ti fi ca tion industries or governments may have varying bodies, traders and proc es sors. IFOAM has estab - perceptions of how organic products should be lished inter na tional Basic Stan dards of Organic Agri- defined and certified. Thus, individual brands naming culture and Food Proc essing, which pro vide a products organic may have disparate standards for frame work for various cer ti fi ca tion pro grammes. The organic production and certification behind them. IFOAM stan dards are updated regu larly by the Moreover, diversities in, for instance, climatic, IFOAM Stan dards Com mittee and are approved by ecological or social conditions, may result in the IFOAM General Assembly every second year. differing production standards. However, the IFOAM has con sul ta tive status with the European development of standards for organic production and Union (EU) and the Codex Alimen ta rius Com mis- trade in the FAO/WHO Codex Alimentarius sion, and a formal liaison status with FAO. 12 CHAPTER 2 – CERTIFICATION

IFOAM has established an inter na tional Accredi ta- Phytosanitary Measures of the World Trade tion Programme, which is oper ated by the Inter na- Organization (WTO). tional Organic Accredi ta tion Service (IOAS). IOAS is an independent non-profit organiza tion with Two Codex committees are currently developing IFOAM as sole member. IFOAM accredi ta tion is standards that are relevant to the international trade in based on com pli ance with its Basic Stan dards and its organic products. The first is the Committee on Food Accredi ta tion Cri teria for Pro grammes Cer ti fying Labelling which is establishing guidelines for the Organic Agri cul ture and Proc essing. As of mid 1999, production, processing, labelling and marketing of 13 cer ti fi ca tion bodies were accred ited by IOAS and organically produced foods. The Committee on Food 6 were in the process of being accred ited. Further Import and Export Inspection and Certification infor ma tion on IFOAM is pro vided at its Web page Systems is developing guidelines for food import and (http://www.ecoweb.dk/ifoam). export inspection and certification systems.

Demeter International eV The Committee on Food Labelling met in May 1998 and has submitted standards for vegetable production Demeter International eV is a worldwide network of for the consideration of the Codex Alimentarius 19 international certification bodies in Africa, Commission in 1999. At its twenty-third session, Australia, Europe and North America. It claims to held at the FAO headquarters in Rome from 28 June have more than 3,500 partners in 35 countries, to 3 July 1999, the Commission adopted Guidelines covering 1 million hectares of biodynamically on the Production, Processing, Labelling and cultivated land. Its internationally recognized mark is Marketing of Organically Produced Foods. The registered in over 50 countries. Committee on Food Labelling is also developing standards for livestock products, which will be Organic farmers following biodynamic production considered by the Commission at a later stage. principles (see chapter 1 for a brief description of these principles) may be certified against Demeter While the development of Codex guidelines is not a standards and thereby authorized to label their way of establishing equivalency, WTO may refer to products with the Demeter mark. Standards are these guidelines in its dispute settlement procedures. agreed internationally, although there may be some The significance of the guidelines will depend on the national differences of interpretation. The extent to which WTO uses them in this way, as well biodynamic standards are formulated in such a way as on the extent to which governments use them when as to comply with international regulations on formulating regulations. organic farming. Demeter International also runs an The formulation of the Codex guidelines is largely accreditation programme and assists in the based on European Union regulations on organic establishment of certification bodies. food products and IFOAM standards. The guidelines should be of assistance to countries developing Further infor ma tion on Demeter Inter na tional is regulations on organic food products. pro vided at its Web site (http://www.demeter.net). World Trade Organization Codex Alimentarius Commission WTO administers global trade rules, including rules In 1962, the Joint FAO/WHO Food Standards on technical barriers to trade and on the application of Programme was created in order to protect sanitary and phytosanitary measures. It also offers a consumers from health hazards and deception while mechanism for conciliation and dispute settlement. A at the same time facilitating international trade in country exporting organic food products, which is food products. The Programme operates through an refused access to an importing country's market on intergovernmental body referred to as the Codex grounds that the organic standards applied are not Alimentarius Commission. The work of the equivalent to the importing country's standards, may Commission aims primarily at the prevention of the refer the issue to WTO if it considers the refusal to be use of international standards as technical barriers to a violation of global trade rules, i.e. based on a the trade in food products. The work of the technical barrier to trade. WTO may rule against the Commission has been specifically recognized under importing country if the exporting country is found to the Agreement on the Application of Sanitary and comply with international standards for organic food CHAPTER 2 – CERTIFICATION 13 products, such as those being formulated by the cer ti fi ca tion body, including those cer ti fying organic Codex Alimentarius Commission, even if the food prod ucts. exporting country does not comply with the more stringent requirements of the importing country. The IFOAM Accredi ta tion Cri teria for Pro grammes Cer ti fying Organic Agricul ture and Proc essing are It should be noted that, in gen eral, WTO is opposed to based on ISO/IEC Guide 65 and are applicable to trade restric tions based on pro duc tion and proc essing produc tion cer ti fi ca tion (but not product cer ti fi ca- methods (referred to as PPMs) and some experts are tion) within the organic sector. The Demeter Accredi- claiming that eco- labelling based on such cri teria are ta tion Pro gram likewise accredits organiza tions in against WTO rules, in particular those of the accor dance with this Guide. Agree ment on Technical Bar riers to Trade. In their view this would apply even to man da tory regu la tions Another impor tant guide is ISO/IEC Guide 61:1996, like Council Regu la tion (EEC) No. 2092/91 and its Gen eral require ments for assess ment and accredi ta- amend ments. tion of certi fi ca tion/reg is tra tion bodies, which defines require ments for accredi ta tion bodies. International Organization for Standardization (ISO) CEN and CENELEC

The International Organization for Standardization In the European Union, standardizing bodies at the (ISO), established in 1947, is a worldwide federation regional level include the European Committee for of national standards bodies from some 130 Standardization (CEN) and the European Committee countries, one from each country. for Electrotechnical Standardization (CENELEC). Their members are the national standards bodies of ISO promotes the devel op ment of standardi za tion EU member countries as well as the Czech Republic, with a view to facili tating the inter na tional exchange of Iceland, Norway and Switzerland. In addition to goods and serv ices, as well as coopera tion in the formulating their own European standards, these intel lec tual, scien tific, techno logical and economic bodies adopt standards issued by international spheres. ISO's work results in inter na tional agree ments standardizing bodies such as ISO and IEC. which are pub lished as Inter na tional Stan dards. CEN and CENELEC have recently jointly published ISO covers all technical fields with the exception of the European Standard (EN) 45011 (1998), General electrical and electronic engineering. However, it has criteria for certification bodies operating product not published guides or standards which specifically certification. EN 45011 (1998) corresponds to address organic production. The ISO 9000 series of ISO/IEC Guide 65:1996. EN 45011 is based on standards are standards for quality management ISO/IEC Guide 40:1983, General requirements for systems and the ISO 14000 series deals with different the acceptance of certification bodies, which was aspects of environmental management, including also the basis for the development of ISO/IEC Guide environmental management systems, environmental 65. While EN 45011 is not specifically applicable to labelling and the environmental aspects of product the certification of production methods, it applies to standards. The standards do not have any direct any certification body operating within EU, including implications for the methods and principles organic certification bodies. As of 1 January 1998, applicable to organic food production. inspection bodies approved by EU must satisfy the requirements laid down in EN 45011. The most impor tant guide for organic cer ti fi ca tion is currently ISO/IEC1 Guide 65:1996, General EN 45011 belongs to the 45000 series of standards require ments for bodies oper ating product covering testing, certification and accreditation. cer ti fi ca tion sys tems, which estab lishes prin ci ples for Another standard in the series is EN 45010, General cer ti fi ca tion bodies. There is no guide spe cific to the requirements for assessment and accreditation of cer ti fi ca tion of produc tion methods, but Guide 65 certification/registration bodies, which corresponds pro vides general guidance for any product to ISO/IEC Guide 61.

1 IEC is the International Electrotechnical Commission; it cooperates closely with ISO. 14 CHAPTER 2 – CERTIFICATION

Regulations in major markets

Prior to the establishment of regulations, exporters the materials that are authorized for use in soil could legally label products as organic and sell their conditioning, fertilization and plant protection. products in any country. Regulations in the majority Annex III lists minimum inspection requirements and of importing countries have introduced a legal Annex VI sets out the requirements for processed equivalence requirement for products marketed as foods. If at least 95% of the agricultural ingredients in organic in those countries. the product are organic, the product can be labelled organic providing that the remaining 5% of the To date, regulations essentially deal with references ingredients are not available from organic production to the organic production method on labels. They do and are listed in Annex VI, Section C. If the product not define stan dards for the use of pri vate trade marks contains between 70% and 95% of organic or cer ti fi ca tion marks. This implies that regu la tions ingredients (the percentage being based on the weight may be sup ple mented by pri vate quality seals based of the agricultural ingredients), the organic on pri vate standards. Many cer ti fi ca tion bodies ingredients can be mentioned only in the list of within EU have chosen to keep pri vate standards; ingredients and the product may not be marketed as some have not. an organic product.

European Union The Regulation recognizes the variety of terminology used in the different EU member countries (Article Production and certification 2), for example ‘ökologisch’ in German, ‘biologique’ in French and, of course, ‘organic’ in English. The The basic EU regulations on organic food products certification mark placed on organic products may be are set out in Council Regulation (EEC) No. 2092/91 freely chosen. of 24 June 1991 and its amendments. Annex II presents a consolidated version of the Regulation and The Regulation is based to a large extent on the its amendments. IFOAM Basic Standards. Consequently, there are few substantive differences between the two, with The EU Regulation applies to all processed and some notable exceptions such as the length of unprocessed food products from plants or animals. conversion periods. Until June 1999, standards for organic livestock production were still in draft form and had not been Each EU member country has set up an inspection approved. Hence, livestock products were governed system operated by public inspection authorities, only by standards set by private certification bodies private inspection and/or certification bodies or both. and by national regulations in some EU member For instance, Denmark and Finland have set up a countries, including Austria, Denmark and France. fully government-run inspection system. Registration The administration and enforcement of organic and authorization of private certification bodies is standards are carried out by national authorities. carried out by a designated authority in each EU member country and extends only to the work of the According to Article 5 of the Regulation, the certification body within that country. Each year, the labelling of a product may refer to the organic European Commission publishes a list of inspection production method only if the product was produced and certification bodies authorized by the various in accordance with the rules laid down in Article 6 member countries to under take inspec tion in (Rules of Production) and if the producer or importer indi vidual coun tries2. is subject to the inspection measures laid down in Articles 8 and 9 (Inspection System). Imports

Annex I to the Regulation defines the EU principles Organic food products originating from non-EU of organic production at farm level and Annex II cites member countries may be imported and marketed

2 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’. CHAPTER 2 – CERTIFICATION 15 within EU carrying a label referring to the organic Each consignment from an approved third country origin of the product, if it is accepted that the products should be accompanied by a certificate, certifying are produced and certified according to procedures that standards and certification measures are equivalent to those of the Union. equivalent to those applicable in EU. The certification may be issued only by the approved There are basically two ways of meeting the certification bodies mentioned in the Article 11 list. require ments for equiva lency: a third country may be For example, in Hungary only the Biokontroll approved by the European Com mis sion as having Hungária Kht and the SKAL office in that country stan dards and inspection meas ures equiva lent to may issue this certification. It should also be noted those of EU. The country will then be added to a list that this approval is specific to work in the said third of approved coun tries, the so-called Article 11 list3. country. Alter na tively, an indi vidual EU member country may authorize an importer to import prod ucts from a With the excep tion of Swit zer land (which oper ates an country not on the Article 11 list into that particular inter na tional veri fi ca tion system), the prod ucts EU member country. Under this provi sion, the included in the Article 11 list must origi nate from the importer should apply to the des ig nated authori ties in listed country itself. Prod ucts con taining ingre di ents the EU member country for an import per mis sion and from out side the country are not cov ered by the the applica tion should be accompanied by Commis sion approval. An import licence must be docu men ta tion on the equiva lency of stan dards and obtained for such prod ucts to be mar keted within EU con trol meas ures. as organic.

Literally, Article 11.7 opens up the possibility of a Countries seeking approval may apply to the third-country certification body being added to the Euro pean Com mis sion. Article 11 list. However, it is interpreted by some as giving EU certification bodies the possibility of being Imports from countries not on the Article 11 list added to the list and authorized to carry out certification activities in approved third countries. An Until 31 December 2002, organic prod ucts from coun - example is the Netherlands certification body, tries not on the Article 11 list may be imported into EU SKAL: it is approved for certification in Hungary, a under import per mits issued by EU member coun tries, country in the Article 11 list. pro vided that the importer sub mits docu men ta tion that the prod ucts are pro duced and cer ti fied according to Article 11 list of third countries rules equiva lent to those of EU. The bulk of the prod - ucts cur rently entering EU are cov ered by indi vidual When a third country has established and import per mits, and it is widely believed that the pro vi- implemented organic standards, it may apply to the sion will be extended beyond 2002. In the frame work Euro pean Com mis sion for inclu sion in the Article 11 of this regime, EU member States have accepted list. The Com mis sion will then evaluate the coun try’s imports from more than 60 coun tries. organic produc tion stan dards and its cer ti fi ca tion measures. These stan dards should corre spond with Import per mits are granted by des ig nated authori ties in the stan dards described in Article 6 of Regu la tion each EU member country to spe cific importers and are 2092/91, and cer ti fi ca tion meas ures should valid only for those importers and for import entry into cor re spond to the meas ures described in Articles 8 that member country. If the importer wants to use and 9. An approval may apply to cer tain product another EU member country as an import entry point, cate go ries, regions or pro duc tion units, as well as to a sepa rate per mis sion must be obtained from the latter certain cer ti fi ca tion bodies. It may also refer to country. Once imported into an EU member country, cer tain ori gins of the prod ucts. the prod ucts may be mar keted freely within EU.

In June 1999, only five countries appeared on the Import per mits are issued for a cer tain amount of Article 11 list: Argen tina, Aus tralia, Hun gary, Israel spe cific prod ucts from specified countries and are and Swit zer land. valid for defined periods not exceeding 31 December

3 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 CHAPTER 2 – CERTIFICATION

2002. The current authoriza tion arrangements for Guide 65:1996. EU member countries have agreed prod ucts from third countries are applicable until on common guide lines on how such con for mity can 31 December 2002. be documented 4. According to these guide lines, con for mity can be decided by: To obtain an import per mis sion in accordance with Article 11.6a, the importer must pro vide suffi cient q Official accreditation bodies designated in the evi dence that the product is pro duced in accor dance third country or in any EU member country for with pro duc tion require ments equiva lent to those laid accreditation of certification and inspection bodies down in Article 6, that con trol meas ures are as (option 1); effec tive as those set out in Arti cles 8 and 9, and that these con trol meas ures are effec tively and q The competent authority in the third country per ma nently imple mented. As of 1 January 1998, (government) (option 2); cer ti fi ca tion bodies must sat isfy the require ments of q The competent authority in the EU member EN 45011 or those of ISO/IEC Guide 65:1996. country which grants import permits (option 3). Having accepted the evi dence, the dele gated In the first instance, the importer must pro vide docu - authority in the importing EU member country issues men tary evi dence that the cer ti fi ca tion body con forms an import permit. Any change in the grounds on with the require ments of EN 45011 or ISO/IEC Guide which an import per mis sion is granted will 65:1996, and that this con for mity is con firmed by an neces si tate a new import permit. For example, if the official accredi ta tion body. The official accredi ta tion importer imports the same product from the same body should comply with the requirements for country but through another exporter or if accredi ta tion bodies set out in EN 45010 or ISO/IEC cer ti fi ca tion is carried out by another cer ti fi ca tion Guide 61. As all European accredi ta tion bodies are body, a sepa rate import permit will be required. expected to be sub ject to inter na tional mutual rec og ni- Member countries and even regional authori ties tion agreements in the near future, selected official imple ment this provi sion differ ently, meaning that accredi ta tion bodies should also pref erably join the dif ferent kinds of con trol meas ures are accepted as Interna tional Accredi ta tion Forum, under which the ensuring equiva lency to EU regu la tions. A draft imple men ta tion of such agree ments is likely. Offi cial docu ment for guid ance on the imple men ta tion of the accredi ta tion processes require the peri odic sur veil- pro vi sions for impor ta tion from third coun tries exists, lance and reas sess ment of accred ited inspec tion and but the docu ment has not been finalized, and the cer ti fi ca tion bodies. Euro pean Commis sion is currently working on involving cus toms authori ties in con trol meas ures. The require ment for accredi ta tion by an official accredi ta tion body is par ticu larly sig nifi cant for Equiva lency between pro duc tion methods in EU and cer ti fi ca tion bodies in devel oping coun tries, as it can the export country is docu mented through the use of be quite expen sive to obtain such accredi ta tion. cer ti fi ca tion bodies having stan dards at least Addition ally, many countries may not have official equiva lent to those of EU or a cer ti fi ca tion accredi ta tion bodies. programme that ensures cer ti fi ca tion against stan dards equiva lent to those of EU. Because of At this moment, it is not clear whether IFOAM varia tions in local con di tions some dif fer ences in accredi ta tion is accept able as evidence of the primary produc tion methods between EU and third con for mity of a cer ti fi ca tion body with EN 45011 or coun tries are often allowed to a cer tain extent. ISO/IEC Guide 65. IFOAM is not an ‘official accredi ta tion body’ that can be desig nated by any In gen eral, the cri teria for granting the import licence third country or EU member country; it is, how ever, are shifting away from evalua tion at the produc tion applying for mem ber ship of IAF. level towards approval of the cer ti fi ca tion arrangements, including the cer ti fi ca tion bodies. In In the second instance, docu men ta tion showing that a order to ensure equiva lency in the effec tive ness of compe tent authority in the exporting country inspec tion and cer ti fi ca tion measures, third-country guar an tees con for mity of the certi fi ca tion body with cer ti fi ca tion bodies must also sat isfy the the stan dards of EN 45011 or ISO/IEC Guide 65 must require ments laid down by EN 45011 or by ISO/IEC be sub mitted by the importer. Addi tion ally, the

4 Commission document 7607/VI/97, Rev. 3. CHAPTER 2 – CERTIFICATION 17 importer should pro vide suf fi cient evi dence that the The above require ment on com pli ance with EN accredited cer ti fi ca tion bodies are subjected to 45011 and ISO/IEC Guide 65 caused some stir, since peri odic sur veil lance and reas sess ment according to it added to the burden on cer ti fi ca tion bodies in the require ments of EN 45011 and ISO/IEC Guide 65. developing coun tries, as well as implied that importers would have to pro vide addi tional In the third instance, the importer must submit all docu men ta tion on equiva lency. infor ma tion required by the com pe tent authority in the EU member country to enable the latter to decide on As has been men tioned earlier, the continuous sur - com pli ance with EN 45011 or ISO/IEC Guide 65. veillance and reas sess ment of cer ti fi ca tion bodies is Regular surveil lance and reas sess ment of the part of the offi cial accredi ta tion process. This sur veil- certi fi ca tion bodies must be made by independent lance and reas sess ment is increas ingly replacing experts or offi cial accredi ta tion bodies des ig nated by super vi sion as a means of ensuring the effec tive the compe tent authority in the EU member country. applica tion of inspec tion measures. How ever, some How ever, not all com pe tent authori ties in EU member member coun tries may in some cases require fur ther coun tries are ready to imple ment this option. There is a evi dence that inspec tion and cer ti fi ca tion activi ties in possi bility that documen ta tion on IFOAM the third country are per ma nently and effec tively accredi ta tion can in some cases be accepted as meeting applied. There are no common guide lines on how the docu men ta tion require ments under this pro vi sion, and related super vi sion is to be car ried out and by whom. some EU member countries may accept evaluations carried out by independent experts. The above- mentioned require ments must be ful filled for each export consign ment destined for an EU country. In addi tion, the exporter must pres ent to the For all import permits granted after 1 January 1998 importer an indi vidual export form indicating the for combinations of exporting countries and kind and quan tity of goods, the stan dards applied, and certification bodies not previously assessed by a the cer ti fi ca tion body pro viding the cer ti fi ca tion. The competent authority in an EU member State, the forms and details required may vary from country to certification bodies must comply with the country. requirements of EN 45011 or ISO/IEC Guide 65. For import per mits granted before 31 December 1997 or The EU member State granting an import authori za - appli ca tions based on previous com bi na tions of tion noti fies the Euro pean Com mis sion and the other exporting countries and cer ti fi ca tion bodies, a EU member States and for wards to all of them docu- time table for transi tional arrangements was drawn men ta tion rele vant to the issuance of the import up. Documentation evidencing the compliance of permit. certification bodies with EN 45011 or ISO Guide 65 should have been forwarded to the relevant Other markets competent authorities no later than 31 May 1999. The competent authorities in the EU member countries Regula tions in non- European mar kets, such as were then to decide which import permits would Australia, Japan, Canada and the United States, are continue to be valid and which import permits were discussed in chapter 4. Regula tions in Switzer land to be withdrawn. are taken up in chapter 11.

Certification in exporting countries

Cer ti fi ca tion in exporting countries may be carried a cer ti fi ca tion body appearing on the list should be out by local cer ti fi ca tion bodies, by inter na tional chosen. For example, for Argen tina, which is on the cer ti fi ca tion entities, or under a partner ship Article 11 list, the local cer ti fi ca tion bodies Insti tuto arrange ment between these two types of bodies. Argen tino para la Cer ti fi ca ción y Pro mo ción de Pro ductos Agropecuarios Orgánicos srl (Argencert) Certification by local bodies and Organi za ción Inter na cional Agro pecuaria (OIA) If the exporter wants to enter the European market appear in the Article 11 list. They have the approval and the exporting country is on the EU Article 11 list, of SENASA, part of the Argen tine Depart ment of 18 CHAPTER 2 – CERTIFICATION

Agri cul ture, and have part ner ship agreements with Coun tries that have established and implemented pri vate and gov ern mental cer ti fi ca tion bodies in both national leg is la tion for the pro duc tion and cer ti fi ca tion Europe and the United States. of organic prod ucts may apply to the European Com mis sion for inclu sion on the Article 11 list. Argencert is a lim ited liability com pany. It has a stan dards com mittee, inspec tors and an inde pendent Certification under partnerships cer ti fi ca tion com mittee. The last- mentioned between local and international bodies com mittee con sists of four per sons rep re senting four insti tu tions. Argencert serves several growers, Cer ti fi ca tion may be car ried out under a part ner ship grower groups, processors and traders. Each between local and inter na tional cer ti fi ca tion bodies. pro ducer in these groups has a cer ti fi ca tion The part ner ship can take various forms, but often the agree ment with Argencert and is inspected annu ally. local bodies carry out the bulk of the activi ties leading to cer ti fi ca tion, while the inter na tional cer ti fi- However, as only very few countries and certification cation body peri odi cally evaluates the imple men ta- bodies are on the Article 11 list, most operators must tion of cer ti fi ca tion pro ce dures and some times issues rely on certification to obtain import permits. Local the cer tifi cates. This may reduce cer ti fi ca tion costs certification bodies wishing to ensure that their for the opera tors while pro viding access to an inter na- certification will be accepted by EU authorities should tional cer ti fi ca tion mark, as well as strengthen local either seek official accreditation (option 1, see page inspec tion and cer ti fi ca tion capacity. 16), or request guarantees from the local authorities that they comply with ISO/IEC Guide 65 (option 2). Local inspec tion enti ties and inter na tional Such guarantees should be based on legal grounds. cer ti fi ca tion bodies may enter into partner ship contracts under which the local body car ries out the How ever, the services of local certi fi ca tion bodies on- site inspec tions, writes inspec tion reports and oper ating in coun tries not on the Article 11 list, which sub mits them to the inter na tional cer ti fi ca tion body; are not officially accred ited and whose compli ance cer ti fi ca tion is under taken by the inter na tional body. with ISO/IEC Guide 65 is not guar an teed by the local Producers cer ti fied this way gain access to the authori ties, may be rec og nized for the pur poses of inter na tional cer ti fi ca tion mark. issuing import per mits. This rec og ni tion can be obtained through an evalua tion car ried out by an inde- Full cer ti fi ca tion may also be car ried out locally, the pendent expert accept able in EU (option 3). An only inter na tional involve ment being super vi sion to example of such a body is Biolatina SAC. Its main ensure that the cer ti fi ca tion bodies comply with EN office is in Peru, and it has local inspec tion offices in 45011 or ISO/IEC Guide 65 stan dards or that con trol Bolivia, Colombia and Nica ragua. It has devel oped a meas ures are being effec tively and per ma nently cer ti fi ca tion pro gramme for Latin America. Its inspec- applied. tion and certi fi ca tion activi ties are evalu ated by an expert approved by a com pe tent authority in Ger many. Interna tional super vi sion may be paid for by an aid organi za tion, the local cer ti fi ca tion body and, in some It is dif fi cult to envisage an export trade in organic cases, by an importer. prod ucts with the EU market based solely on local cer ti fi ca tion and accredi ta tion. Many coun tries do not Certification by a local branch of an have accredi ta tion facili ties, and the cost of official international certification body accredi ta tion can be quite high. Addition ally, if EU member countries require further evidence that An inter na tional cer ti fi ca tion body may estab lish control measures are being effectively and branch offices else where. Such offices follow the permanently applied, recourse may have to be made inspec tion and cer ti fi ca tion pro ce dures of the mother to international bodies or experts. com pany and are fully inte grated into its inter na tional cer ti fi ca tion system. In effect therefore international accreditation and/or international supervision and surveillance are Several certification bodies operating at the required. In regard to supervision and surveillance, international level have established branch offices in local certification bodies have often established other countries. For example, the Organic Crop partnerships with international certification bodies or Improvement Association, Inc. (OCIA), a United experts carrying out these activities. States company, has set up several branch offices in a CHAPTER 2 – CERTIFICATION 19 number of countries, including at the Organic Food inter na tional cer ti fi ca tion bodies may offer Development Center (OFDC) in China. The branch cer ti fi ca tion pro grammes ful filling EU require ments. office has its own certification committee and a certification programme, which follows OCIA How ever, some opera tors choose Euro pean cer ti fi ca- standards and by-laws. Inspection is carried out by tion bodies for exports to Europe on the grounds that Chinese inspectors approved by OCIA. this will reduce trade dif fi cul ties. Only a minority of the cer ti fi ca tion bodies approved by the various EU Certification by international bodies member coun tries are active in third coun tries. They include BCS Öko Garantie GmbH (Ger many), Eco- An operator may choose to be cer ti fied by an inter na- cert (France), Institut für Marktök ologie or IMO tional cer ti fi ca tion body. Inter na tional certi fi ca tion is (Swit zer land), KRAV (Sweden), Organic Farmers & likely to be more expen sive than local cer ti fi ca tion, but Growers Ltd (OF&G, United Kingdom), SKAL if no local cer ti fi ca tion pro gramme is avail able it may (Neth er lands) and Soil Asso cia tion Cer ti fi ca tion Ltd be the only solu tion in the short term. For the long term, (United Kingdom). the establish ment of a local cer ti fi ca tion programme should be consid ered. The inter na tional market pre - Several European cer ti fi ca tion bodies are active in mium on the product will deter mine whether cer ti fi ca- many African coun tries, as well as in India and Sri tion by a for eign cer ti fi ca tion body is fea sible. Lanka. There are even cases, for instance in India, where one operator is inspected and cer ti fied by The cer ti fi ca tion body does not need to be Euro pean sev eral inter na tional cer ti fi ca tion bodies, American, for the operator to enter the Euro pean market. Other Aus tra lian and Euro pean.

Some types of certification arrangements

Subcontracting reduc tion of external inspec tion through the estab lish ment of an internal con trol mecha nism and Certi fied opera tors may enter into sub con tracts with common mar keting operations for the producers other opera tors to carry out spe cific operations on belonging to the system. Grower groups may include their behalf, for instance part of a manufac turing small proc essing units and storage units. Several process. The sub con tractor may, for example, be a cer ti fi ca tion pro grammes have made special farm ers’ coopera tive, a proc essor or a packer. The provi sions for the cer ti fi ca tion of small holders, cer ti fi ca tion of such subcon trac tors is car ried out as proj ects and other kinds of coop era tive arrange ments. part of the cer ti fi ca tion of the main opera tors (or Pro vi sions for the inspec tion of such groups often licen sees), who pay for the cer ti fi ca tion. Sub con trac- differ from those applied to single opera tors. tors do not have the right to market their pro duc tion In general there are two approaches to the with the cer ti fi ca tion mark, and they may handle cer ti fi ca tion of a grower group system. Inspec tion organic prod ucts only within the coop era tion agree- may be directed to part of the grower group, for ment with the licensee. The cer ti fi ca tion mark may be instance a per centage of the farmers, or it may be used only by the licensee. directed to the internal con trol system, i.e. focusing on com piling docu men ta tion on each of the farmers, Sub con tracting is quite common in many parts of the in- house moni toring system, quan tity con trol, etc. world, including Europe. Cer ti fi ca tion based on sub- con tracting is also done for instance by Argencert in To mention an example, the certification bodies BCS, Argentina. It is often a trader or a proc essor that is Bio Latina, Ecocert, IMO, OCIA and SKAL, which cer ti fied and holds the cer tifi cate and pays for the cost are all active in Latin America, carry out certification of cer ti fi ca tion. of grower group systems there. A control programme has been established which basically covers the Grower groups design and establishment of an internal control system within the producers’ organizations. This Spe cial inspec tion and cer ti fi ca tion arrange ments can programme provides for documentation on each be developed for groups of small producers. In a farmer (production procedures, basic information, grower group system, the key elements are the management plan, etc.) and internal inspections. 20 CHAPTER 2 – CERTIFICATION

Setting up a certification programme

The long-term possibility cer ti fi ca tion process. When cer ti fi ca tion has com menced, an appli ca tion for accredi ta tion should Inspec tion and cer ti fi ca tion can be done locally and, be made. if the appro priate local bodies do not exist, they can be established. The best way for ward is to bring Spe cific guide lines for estab lishing local cer ti fi ca tion together all the par ties involved in organic agri cul- bodies can be found in the pub li ca tion Building Trust ture, including farmers, proc es sors, advo cacy organi- in Organics: A Guide to Set ting Up Organic zations, con sumer organiza tions, envi ron mental Certi fi ca tion Pro grammes, written by G. Rund gren organiza tions, uni ver sity researchers, agricul tural and pub lished by IFOAM in 1997. exten sion workers, etc. A com mittee could be estab- lished to review the organic stan dards of gov ern- Assis tance can also be obtained from the Inde pendent ments, cer ti fi ca tion bodies, the Codex Alimen ta rius Organic Inspec tors Associa tion, which offers an Commis sion, and the IFOAM Basic Standards. inspector training course, as well as from other local Guide lines for car rying out inspec tion and cer ti fi ca- or inter na tional cer ti fi ca tion bodies, espe cially those tion at local level are often avail able: for instance, that have been accred ited or that appear on the EU offi cial regu la tions (e.g. the Euro pean Council Regu- Article 11 list. For instance, an inter na tional la tion (EEC) No. 2092/91 and its amend ments) and cer ti fi ca tion or accredi ta tion body may pro vide the IFOAM cri teria for organic cer ti fi ca tion pro - tuto rial assis tance to local pro fes sionals in inspec tion grammes could pro vide valu able infor ma tion. and cer ti fi ca tion pro ce dures. The training may some times be part of a devel op ment proj ect, After reviewing inter na tional stan dards and those of involving external funding, NGOs and other other coun tries, the com mittee can develop and estab lish ments. After the training, a national organic rec om mend national organic stan dards. These should stan dards com mittee may be established, and the be con sis tent with stan dards in impor tant mar kets trained inspec tors can carry out local inspec tions for while taking local con di tions into con sid era tion. The the inter na tional partner. This is the first step towards com mittee can also rec om mend a structure for the the crea tion of a fully opera tional local pro gramme. cer ti fi ca tion body. Pro ce dures for inspec tors and cer ti fi ca tion should also be estab lished and inspec tors To men tion one example, the Soil Asso cia tion must be trained. Certi fi ca tion Ltd, an officially recog nized cer ti fi ca tion body in the United Kingdom linked with After the estab lish ment of the local cer ti fi ca tion The Soil Asso cia tion, has pro vided tuto rial assis tance pro gramme, local farmers and proces sors should be to Venezuelan pro fes sionals in inspec tion and edu cated about the organic stan dards and the cer ti fi ca tion pro ce dures. Annex I

Basic concepts

Accredi ta tion. A pro ce dure by which an authori ta tive body grants a person or body the right to use certifi cates or evalu ates and gives a formal rec og ni tion that a cer ti fi ca tion cer ti fi ca tion marks for its prod ucts, processes or serv ices programme is in accor dance with the stan dards of the in accor dance with the rules of the relevant certi fi ca tion authori ta tive body. pro gramme.

Certifi cate . Docu ment indi cating that ade quate con fi dence Licensee. An operator that has a license to use a is provided that a product, process or service is in cer ti fi ca tion mark con for mity with a spe cific stan dard. Operator. Anyone car rying out activi ties cov ered by a Cer ti fi ca tion. A proce dure by which a third party gives cer ti fi ca tion pro gramme, for instance farmers, proc es sors, written assur ance that a product, process or service is in handlers. confor mity with certain stan dards. Cer ti fied organic food prod ucts are food prod ucts that have been veri fied to have Stan dards. Docu mented agree ments con taining tech nical been pro duced in accor dance with speci fied stan dards for speci fi ca tions or other pre cise cri teria to be used con sis - organic pro duc tion and proc essing. tently as rules, guidelines or defini tions, to ensure that mate rials, prod ucts, processes and serv ices are fit for their Cer ti fi ca tion body. An organi za tion per forming cer ti fi ca tion. pur pose. Stan dards relating to organic food prod ucts are Sometimes referred to as the cer ti fier or the cer ti fi ca tion produc tion and/or processing stan dards describing, pre - agency. 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. Cer ti fi ca tion mark. A mark or symbol indicating that com pli ance with stan dards has been veri fied. Sub con tractor. Anyone car rying out activi ties cov ered by a cer ti fi ca tion pro gramme, for instance farmers, proc es sors, Cer ti fi ca tion pro gramme. A system of rules, proce dures han dlers, on behalf of an operator. and man age ment for car rying out cer ti fi ca tion. One cer ti fi- ca tion body may exe cute sev eral dif ferent cer ti fi ca tion pro- EN 45010.* A Euro pean stan dard for accredi ta tion grammes. Some times referred to as a cer ti fi ca tion system. devel oped by CEN and CENELEC.

Compe tent authority. The official govern ment agency EN 45011.* A Euro pean stan dard for certi fi ca tion having juris dic tion. devel oped by CEN and CENELEC.

Con trol, con trol body. Terms com monly used by the trade ISO/IEC Guide 61.* An inter na tional guide to accredi ta tion when refer ring to inspec tion and an inspec tion body. developed by the inter na tional stan dardi za tion organi za tions ISO and IEC. Inspec tion. 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 ISO/IEC Guide 65.* An inter na tional guide to cer ti fi ca tion cer ti fi ca tion pro gramme. devel oped by ISO and IEC.

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 inspec tion 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. ______* The EN 45000 series of standards and their corre sponding Inspector. A person appointed to under take the inspec tion ISO/IEC Guides lay down gen eral cri teria for the opera tion of part of a cer ti fi ca tion pro gramme. testing and cali bra tion labo ra to ries, cer ti fi ca tion bodies for prod ucts, quality sys tems and per sonnel, inspec tion bodies, and accredi ta tion bodies with the aim of ensuring confi dence and Licence. A document issued under the rules of a reliability in the activi ties of these bodies. The EN 45000 cer ti fi ca tion programme, by which a certi fi ca tion body 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, protected in so far as it will ensure conditions of fair competition between the producers of products bearing Having regard to the Treaty establishing the European such indications and give the market for organic products Economic Community, and in particular Article 43 thereof, a more distinctive profile by ensuring transparency at all stages of production and processing, thereby improving Having regard to the proposals from the Commission, the credibility of such products in the eyes of consumers;

Having regard to the opinion of the European Parliament, 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 Having regard to the opinion of the Economic and Social should be pro vided that, on the label ling of proc essed prod- Committee, ucts, indica tions referring to organic pro duc tion methods should relate to the ingre di ents obtained by such methods; Whereas demand from consumers for organically produced agricultural products and foodstuffs is Whereas, for the implementation of the arrangements increasing; whereas a new market for agricultural products concerned, provision should be made for flexible is thus being created by this phenomenon; procedures whereby certain technical details or measures may be amended, amplified or further defined in order to Whereas the market price for such products is higher, take account of experience gained; whereas, within a while the way in which they are produced involves less suitable period, this Regulation will be supplemented by intensive use of land; whereas, therefore, in the context of equivalent rules covering livestock production; the reorientation of the common agricultural policy, this type of production may contribute towards the attainment Whereas, in the interests of the producers and purchasers of a better balance between supply of, and demand for, of products bearing indications referring to organic agricultural products, the protection of the environment production methods, the minimum principles which must and the conservation of the countryside; be complied with in order for products to be presented with such indications should be laid down; Whereas, in response to the rising demand, agricultural products and foodstuffs are being placed on the market Whereas organic production methods entail significant with indications stating or implying to purchasers that they restrictions on the use of fertilizers and pesticides which have been produced organically or without the use of may have detrimental effects on the environment or result synthetic chemicals; in the presence of residues in agricultural produce; whereas, in this context, practices accepted in the Whereas some Member States have already adopted Community when this Regulation is adopted must be rules and inspection arrangements for the use of such complied with in accordance with codes of practice indications; followed in the Community when this Regulation is adopted; whereas, moreover, in the future, the principles Whereas a framework of Community rules on production, governing the authorization of products which may be labelling and inspection will enable organic farming to 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 23

Whereas, moreover, organic farming involves varied indication, be restricted to sales of prepackaged cultivation practices and limited use of non-synthetic foodstuffs or direct sales by the producer or preparer to fertilizers and conditioners of low solubility; whereas these the ultimate consumer, provided that the nature of the practices should be specified and conditions for the use of product can be identified unambiguously; certain non-synthetic products laid down; Whereas it has fur ther more become apparent that propa- Whereas the procedures laid down make possible, if this gating material should be obtained from organically appears necessary, the addition to Annex I of more grown plants but that a system of dero ga tions is nec es- specific provisions aimed at avoiding the presence of sary in order to enable pro ducers to use, during a tran si- certain residues of synthetic chemicals from sources other tional period, conventionally- produced propa gating than agriculture (environmental contamination) in the material, where no appropriate organically- produced products obtained by such production methods; propa gating mate rial is avail able;

Whereas, to ensure compliance with the rules on Whereas, for the same reasons, it must be permissible for production, all stages of production and marketing should whole seedlings obtained in a conventional manner and normally be subject to inspection; intended for planting for plant production to be used for an interim period; Whereas all operators producing, preparing, importing or marketing products bearing indications referring to organic Whereas it has become apparent that a number of production methods must be subject to a regular products which were used before the adoption of inspection system, meeting minimum Community Regulation (EEC) No 2092/91 in accordance with the requirements and carried out by designated inspection codes of practice of organic farming followed in the authorities and/or by approved and supervised bodies; Community, have not been included in Annex II of the whereas provision should be made for a Community Regulation; whereas the use of such products should be indication of inspection to appear on the labelling of the permitted to the extent that their use is also permitted in products concerned; conventional agriculture;

(“Whereas” recitals in amending Reg. No. 1935/95) Whereas it has appeared appropriate to clarify that the inspection system provided for applies Whereas the Commission has received a specific also to importers of products from third countries mandate in the framework of Regulation (EEC) No established in the European Union; 2092191 to review a number of provisions of that Regulation by 1 July 1994 and to submit any appropriate Whereas Regulation (EEC) No 2092191 should therefore proposal for revision of that Regulation; be amended,

Whereas it has become apparent that the provisions, HAS ADOPTED THIS REGULATION: expiring on 1 July 1995 concerning the labelling of agricultural products and foodstuffs containing an ingredient of agricultural origin which was produced by Scope 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 Article 1 labelling of their products; 1. This Regulation shall apply to the following products, Whereas the review of Articles 5, 10 and 11 requested by where such products bear, or are intended to bear, the Council by 1 July 1994 has shown that a number of indications referring to organic production methods: technical and drafting amendments in those Articles as well as in certain other provisions are necessary to (a) unprocessed agricultural crop products; also ensure a proper management and implementation of the animals and unprocessed animal products, to the Regulation; whereas priority has therefore been given to extent that principles of production and specific the establishment of these amended rules and that inspection rules for them are introduced into consequently the establishment of the rules concerning Annexes I and III; animal production should be postponed for a limited period; (b) products intended for human consumption composed essentially of one or more ingredients of Whereas it has become apparent from the review that the plant origin; in addition, upon adoption of the provisions concerning the labelling of foodstuffs provisions concerning livestock production referred prepared only partly from ingredients of agricultural to in (a), products intended for human consumption origin which were produced according to organic containing ingredients of animal origin. production methods, should be improved in order to permit greater emphasis to be placed on the 2. A proposal concerning the principles and specific organically produced component in such foodstuffs; measures of control governing organic animal production, non-processed animal products and products intended for Whereas it has also become apparent that the indication human consumption containing ingredients of animal provided for in Annex V should remain optional, but origin shall be submitted by the Commission as soon as should also, in order to prevent improper use of that possible and before 30 June 1995. 24 CHAPTER 2 – CERTIFICATION, Annex II

Article 2 5. “operator” shall mean any natural or legal person who produces, prepares or imports from a third country, For the purposes of this Regulation a product shall be with a view to the subsequent marketing thereof, products regarded as bearing indications referring to organic as referred to in Article 1, or who markets such products; production methods where, in the labelling, advertising material or commercial documents, such a product or its 6. “ingredients” shall mean the substances, including ingredients is described by the indications in use in each additives, used in the preparation of the products specified Member State suggesting to the purchaser that the in Article 1 (1) (b), as defined in Article 6 (4) of Directive product or its ingredients have been obtained in 79/112/EEC on the approximation of the laws of the accordance with the rules of production laid down in Article Member States relating to the labelling, presentation and 6 and in particular the following terms, unless such terms advertising of foodstuffs for sale to the ultimate are not applied to agricultural products in foodstuffs or consumer; clearly have no connection with the method of production: 7. “plant protection products” shall mean products as - in Spanish: ecológico, defined in Article 2 (1) of Council Directive 79/117/EEC of - in Danish: rkologisk, 21 December 1978 prohibiting the placing on the market - in German: ökologisch, and use of plant protection products containing certain - in Greek: $4@8@(4i`, active substances, as last amended by Directive - in English: organic, 89/365/EEC; - in French: biologique, - in Italian: biologico, 8. “detergents” shall mean substances and prepa ra- - in Dutch: biologisch, tions, within the meaning of Council Direc tive 73/404/EEC - in Portuguese: biológico, of 22 November 1973 on the approxi ma tion of the laws of - in Finnish: luonnomukainen the Member States relating to deter gents, as last amended - in Swedish: ekologisk 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. “pre-packaged foodstuff’ shall mean any single Article 3 item as defined in Article 1 (3) (b) of Directive 79/112/EEC;

This regulation shall apply without prejudice to other 10. “list of ingredi ents" shall mean the list of Community provisions governing the production, ingre di ents referred to in Article 6 of Direc tive preparation, marketing, labelling and inspection of the 79/112/EEC. products specified in Article 1.

Labelling

Definitions Article 5

Article 4 1. The labelling and advertising of a product specified in Article 1 (1) (a) may refer to organic production methods For the purpose of this Regulation: only where:

1. “labelling” shall mean any words, particulars, trade (a) such indications show clearly that they relate to a marks, brand names, pictorial matter or symbols on any method of agricultural production; packaging, document, notice, label, board or collar accompanying or referring to a product specified in (b) the product was produced in accordance with the Article 1; rules laid down in Article 6 or imported from a third country under the arrangements laid down in 2. “production” shall mean the operations on the Article 11; agricultural holding involved in producing, packaging and initially labelling as products of organic production (c) the product was produced or imported by an agricultural products produced on that holding; operator who is subject to the inspection measures laid down in Articles 8 and 9; 3. “preparation” shall mean the operations of preserving and/or processing of agricultural products, and (d) in the case of products prepared after 1 January also packaging and/or alterations made to the labelling 1997, the labelling refers to the name and/or the concerning the presentation of the organic production code number of the inspection authority of body to method of the fresh, preserved and/or processed which the operator is subject. Member States shall products; decide whether to require a reference to the name and/or to the code number and shall notify the 4. “marketing" shall mean holding or displaying for Commission accordingly; sale, offering for sale, selling, delivering or placing on the market in any other form; 2. (deleted) CHAPTER 2 – CERTIFICATION, Annex II 25

3. The labelling and advertising of a product specified (b) a conversion period of at least 12 months before the in Article 1 (1) (b) may bear indications referring to organic harvest has been complied with; production methods in the sales description of the product only where: (c) such indications do not mislead the purchaser of the product regarding its difference from products which (a) at least 95% of the ingredients of agricultural origin satisfy all the requirements of paragraphs 1 or 3. of the product are, or are derived from, products After 1 January 1996 such indications must take the obtained in accordance with the rules laid down in form of the words “product under conversion to Article 6 or imported from third countries under the organic farming”, and must appear in a colour, size arrangements laid down in Article 11; and style of lettering which is not more prominent than the sales description of the product; in this (b) all the other ingredients of agricultural origin of the indication the words “organic farming” shall not be product are included in Annex VI, Section C or have more prominent than the words “product under been provisionally authorized by a Member State in conversion to”; accordance with any implementing measures adopted where appropriate pursuant to paragraph 7; (d) the product contains only one ingredient of agricultural origin; (c) the product contains only substances listed in Annex VI, Section A, as ingredients of nonagricultural (e) for products prepared after 1 January 1997, the origin; labelling refers to the name and/or the code number (d) the product or its ingredients of agricultural origin, of the inspection authority or body to which the referred to in subparagraph (a), have not been operator who has carried out the most recent subjected to treatments involving the use of production or preparation operation is subject. substances not listed in Annex VI, Section B; Member States shall decide whether to require a reference to the name and/or to the code number (e) the product or its ingredients have not been and shall notify the Commission accordingly. subjected to treatments involving the use of ionizing radiation; 5a. Without prejudice to the provisions of paragraph 3, the labelling and advertising of a product as referred to in (f) the product has been prepared or imported by an Article 1 (1) (b) may only bear indications referring to operator who is subject to the inspection measures organic production methods where: laid down in Articles 8 and 9; (a) at least 70% of the ingredients of agricultural origin (g) in the case of products prepared after 1 January are, or are derived from, products obtained in 1997, the labelling refers to the name and/or the accordance with the rules laid down in Article 6 or code number of the inspection authority or body to imported from third countries under the which the operator who has carried out the most arrangements laid down in Article 11; recent preparation operation is subject. Member States shall decide whether to require a reference (b) all the other ingredients of agricultural origin of to the name and/or to the code number and shall the product are included in Annex VI, Section C or notify the Commission accordingly. have been provisionally authorized by a Member State in accordance with any implementation The indications referring to organic production measures adopted where appropriate pursuant to methods must make it clear that they relate to a paragraph 7; method of agricultural production and must be accompanied by a reference to the ingredients of (c) the indications referring to organic production agricultural origin concerned, unless such reference methods appear in the list of ingredients and only in is clearly given in the list of ingredients. clear relation to those ingredients obtained according to the rules laid down in Article 6 or 4. Ingredients of agricultural origin may be included in imported from third countries under the Annex VI, Section C only where it has been shown that arrangements laid down in Article 11; they appear such ingredients are of agricultural origin and are not in the same colour and with an identical size and produced in sufficient quantity in the Community in style of lettering as the other indications in the list accordance with the rules laid down in Article 6, or cannot of ingredients. Such indications must also appear in a separate statement set in the same visual field be imported from third countries in accordance with the as the sales description and indicating the rules laid down in Article 11. percentage of the ingredients of agricultural origin or derived therefrom which were obtained in 5. Products labelled or advertised in accordance with accordance with the rules laid down in Article 6 or paragraphs 1 or 3 may bear indications referring to were imported from third countries under the conversion to organic production methods, provided that: arrangements laid down in Article 11. The statement may not appear in a colour, size and style (a) the requirements referred to in paragraph 1 or of lettering which is more prominent than the sales paragraph 3 respectively are fully satisfied, with the description of the product. The statement shall be exception of that concerning the length of the in the following form: “X% of the agricultural conversion period referred to in paragraph 1 of ingredients were produced in accordance with the Annex I; rules of organic production”; 26 CHAPTER 2 – CERTIFICATION, Annex II

(d) the product contains only substances listed Conditions of use and compositional requirements of in Annex VI, Section A as ingredients of these ingredients and substances may be specified. nonagricultural origin; Where a Member State considers that a product should be (e) the product or its ingredients of agricultural origin added to the above-mentioned lists or that amendments referred to in subparagraph (a) have not been should be made thereto, it shall ensure that a dossier subjected to treatments involving the use of giving the reasons for the inclusion or the amendments is substances not listed in Annex VI, Section B; sent officially to the other Member States and the Commission, which shall present it to the Committee (f) the product or its ingre di ents have not been sub- referred to in Article 14. jected to treat ments involving the use of ion izing radiation; 9. For the calculation of the percentages referred to in paragraphs 3 and 6, the rules provided for in Articles 6 (g) the product has been prepared or imported by an and 7 of Directive 79/112/EEC shall be applied. operator who is subject to the inspection measures laid down in Articles 8 and 9; 10. In a product as referred to in Article 1 (1), an ingredient obtained according to the rules laid down in (h) for prod ucts pre pared after 1 January 1997, the Article 6 shall not be present together with the same label ling refers to the name and/or the code number ingredient not obtained according to those rules. of the inspection authority or inspecting body to which the operator who has car ried out the most 11. Before 1 January 1999, the Commission shall recent pro duc tion or prepa ra tion opera tion is sub- review the provisions of this Article and of Article 10 and ject. Member States shall decide whether to require submit any appropriate proposals for their revision. a ref er ence to the name and/or to the code number and shall notify the Com mis sion accord ingly.

6. During a tran si tional period expiring on 31 December 1997, the label ling and adver tising of a Rules of Production product as referred to in Article 1 (1) (b) pre pared partly from ingredi ents not satis fying the require ments in para graph 3 (a) may refer to organic pro duc tion methods Article 6 pro vided that:

(a) at least 50% of the ingredients of agricultural origin 1. The organic production method implies that for the satisfy the requirements referred to in paragraph 3 (a); production of products referred to in Article 1 (1) (a) other than seeds and vegetative propagating material: (b) the product satisfies the requirements referred to in paragraph 3 (c), (d), (e) and (f); (a) at least the requirements of Annex I and, where appropriate, the detailed rules relating thereto, must (c) the indications referring to organic production be satisfied; methods: (b) only products composed of substances listed in - appear only in the list of ingredients as provided Annexes I and II may be used as plant-protection for in Directive 79/112/EEC, as last amended by products, detergents, fertilizers, soil conditioners or Directive 89/395/EEC, for another purpose where such purpose is - clearly refer to only those ingredients obtained specified in Annex II in regard to certain according to the rules referred to in Article 6 or substances. They may be used only under the specific conditions laid down in Annexes I and II in so imported under the arrangements laid down in Article 11; far as the corresponding use is authorized in general agriculture in the Member States concerned in (d) the ingredients and their relative levels appear in accordance with the relevant Community provisions descending order by weight in the list of ingredients; or national provisions in conformity with Community law; (e) indications in the list of ingredients appear in the same colour and with an identical size and style of (c) only seed or vegetative propagating material lettering; produced by the organic production method referred to in paragraph 2 is used. 7. Detailed rules concerning the implementation of this Article may be established according to the procedure laid 2. The organic production method implies that for down in Article 14. seeds and vegetative reproductive material, the mother plant in the case of seeds and the parent plant(s) in the 8. Limita tive lists of the substances and prod ucts case of vegetative propagating material have been referred to in para graph 3 (b), (c) and (d) and para graph 5a produced in accordance with the provisions of (b), (d) and (e) shall be estab lished in Annex VI, Sec tions subparagraphs (a) and (b) of the previous paragraph for A, B and C, according to the proce dure laid down in at least one generation or, in the case of perennial crops, Article 14. two growing seasons. CHAPTER 2 – CERTIFICATION, Annex II 27

3(a) By way of derogation from paragraph 1 (c), seeds material have demonstrated to the satisfaction of and vegetative propagating material not obtained the inspection body or authority of the Member by the organic production method may, during a State that they were not able to obtain an transitional period expiring on 31 December 2000 appropriate variety of the species in question on and with the approval of the competent authority of the Community market, the Member State, be used in so far as users of such propagating material can show to the (b) the seedlings have not been treated, since sowing, satisfaction of the inspection body or authority of with any products other than those listed in Annex the Member State that they were unable to obtain II, Sections A and B; on the market propagating material for an appropriate variety of the species in question and (c) the seedlings come from a producer who has satisfying the requirements of paragraph 2. In that accepted an inspection system equivalent to the case, propagating material which is not treated with arrangements laid down in Article 9 and has agreed products not listed in Annex II, Section B must be to apply the restriction in subparagraph (b); this used, if available on the Community market. provision shall enter into force on 1 January 1996; Member States shall inform the other Member States and the Commission of any authorization (d) after planting, the seedlings must have been granted under this paragraph. cultivated in accordance with the provisions of Article 6 (1) (a) and (b) for a period of at least six (b) The procedure laid down in article 14 may be weeks before harvesting; applied to decide on: (e) the labelling of any product containing ingredients - the intro duc tion, before 31 December 2000 of derived from such seedlings may not include the restric tions con cerning the tran si tional measure indication referred to in Article 10; referred to in subpara graph (a) with regard to cer tain species and/or types of propa gating (f) without prejudice to any restriction resulting from material and/or the absence of chemical the procedure referred to in paragraph 4, any treatment, authorization granted under this paragraph shall be withdrawn as soon as the shortage comes to an - the maintenance, after 31 December 2000, of the end, and shall expire on 31 December 1997 at the derogation provided for in subparagraph (a) with latest. regard to certain species and/or types of propagating material and with regard to the 4(a) Where an authorization as referred to in paragraph whole Community or certain parts thereof, 3 has been granted, the Member State shall immediately notify to the other Member States and - the intro duc tion of pro ce dural rules and cri teria to the Commission the following information: concerning the dero ga tion referred to in sub para graph (a) and the informa tion thereon - the date of the authorization, com mu ni cated to the pro fes sional organi za tions concerned, to other Member States and the - the name of the variety and species concerned, Com mis sion. - the quantities that are required and the justification for those quantities, 4. Before 31 December 1999 the Commission shall review the provisions of this Article, in particular - the expected period of the shortage, paragraph 1 (c) and paragraph 2 and submit any appropriate proposals with a view to their revision. - any other information requested by the Commission or the Member States.

Article 6a 4(b) If the infor ma tion sub mitted by any Member State to the Com mis sion and to the Member State which 1. For the purposes of this Article, “seedlings” shall granted the authori za tion shows that an appro - mean whole seedlings intended for planting for plant priate variety is avail able during the period of the production. shortage, the Member State shall con sider with - drawing the authori za tion or reducing its period of 2. The organic production method implies that when validity, and shall inform the Com mis sion and the producers use seedlings, they have been produced in other Member States of the meas ures it has taken accordance with Article 6. within 10 days of the date of receipt of the infor ma tion. 3. By way of derogation from paragraph 2 seedlings not obtained by organic production methods may be 4(c) At the request of a Member State or at the used during a transitional period expiring on Commission’s initiative, the matter shall be 31 December 1997 in so far as the following conditions submitted for examination to the Committee are met. referred to in Article 14. It may be decided, in accordance with the procedure laid down In Article (a) the competent authority of the Member State has 14, that the authorization shall be withdrawn or its authorized the use after the user or users of such period of validity amended. 28 CHAPTER 2 – CERTIFICATION, Annex II

Article 7 4. Where a Member State considers that a product should be added to Annex II or that amendments should 1. Products not authorized at the date of adoption of be made thereto, it shall ensure that a dossier giving the this Regulation for a purpose indicated in Article 6 (1) (b) reasons for the inclusion or the amendments is sent may be included in Annex II, provided that the following officially to the other Member States and the Commission, conditions are satisfied: which shall introduce it to the committee referred to in Article 14. (a) if they are used for the purpose of plant pest or disease control:

- they are essential for the control of a harmful Inspection system organism or a particular disease for which other biological, cultural, physical or plant breeding alternatives are not available, and Article 8 - the conditions for their use preclude any direct contact with the seed, the crop or crop products; 1. Any operator who produces, prepares or imports however, in the case of perennial crops, direct from a third country products as specified in Article 1 for contact may take place, but only outside the the purpose of marketing them shall: growing season of the edible parts (fruits) provided that such application does not indirectly (a) notify this activity to the competent authority of the result in the presence of residues of the product in Member State in which the activity is carried out; the edible parts, and such notification shall include the information - their use does not result in, or contribute to, specified in Annex IV; unacceptable effects on, or contamination of, the environment; (b) submit his undertaking to the inspection system referred to in Article 9. (b) if they are used for fertilization or soil-conditioning purposes: 2. Member States shall designate an authority or body for the reception of notifications. - they are essential for specific nutrition requirements of crops or specific soil-conditioning Member States may provide for the communication of any purposes which cannot be satisfied by the additional information which they consider to be necessary practices mentioned in Annex I, and for effective supervision of the operators concerned.

- their use does not result in unacceptable effects 3. The competent authority shall ensure that an on the environment or contribute to the updated list containing the names and addresses of contamination thereof. operators subject to the inspection system is made available to interested parties. 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 Article 9 practice on organic farming followed in the Community.

2. If need be, the following may be specified for any 1. Member States shall set up an inspection system product included in Annex II: operated by one or more designated inspection authorities and/or by approved private bodies to which the operators - the detailed description of the product, producing, preparing or importing from third countries - the conditions of its use and compositional and/or products as referred to in Article 1 shall be subject. solubility requirements, with regard in particular to the need to ensure for these products a minimal 2. Member States shall adopt the measures necessary presence of residues on edible parts of the crop to ensure that an operator who complies with the and on edible crop products as well as a minimum provisions of this Regulation and pays his contribution to effect on the environment, inspection expenses has access to the inspection system.

- particular labelling requirements for products 3. The inspection system shall comprise at least the referred to in Article 1 where such products are application of the precautionary and inspection measures obtained with the aid of certain products referred specified in Annex III. to in Annex II. 4. For the application of the inspection system 3. Amendments to Annex II, concerning either operated by private bodies, Member States shall inclusion or cancelling of products as referred to in designate an authority responsible for the approval and paragraph 1 or inclusion or amendments of specifications supervision of such bodies. as referred to in paragraph 2, shall be adopted by the Commission in accordance with the procedure laid down 5. For the approval of a private inspection body, the in Article 14. following shall be taken into account: CHAPTER 2 – CERTIFICATION, Annex II 29

(a) the standard inspection procedure to be followed, 9. The inspection authority and inspection bodies containing a detailed description of the inspection referred to in paragraph 1 shall: measures and precautions which the body undertakes to impose on operators subject to its (a) ensure that, where an irregularity is found regarding inspection; the implementation of Articles 5 and 6 or of the measures referred to in Annex III, the indications (b) the penalties which the body intends to apply where provided for in Article 2 referring to the organic irregularities and/or infringements are found; production method are removed from the entire lot or production run affected by the irregularity (c) the availability of appropriate resources in the form concerned; of qualified staff, administrative and technical facilities, inspection experience and reliability; (b) where a manifest infringement, or an infringement with prolonged effects is found, prohibit the operator (d) the objectivity of the inspection body vis-à-vis the concerned from marketing products with indications operators subject to its inspection. referring to the organic production method for a period to be agreed with the competent authority of 6. After an inspection body has been approved, the the Member State. competent authority shall: 10. The following may be adopted in accordance with (a) ensure that the inspections carried out by the the procedure laid down in Article 14: inspection body are objective; (a) detailed rules concerning the requirements indicated (b) verify the effectiveness of its inspections; in paragraph 5 and the measures listed in paragraph 6; (c) take cognizance of any irregularities and/or infringements found and penalties applied; (b) implementation measures concerning the provisions (d) withdraw approval of the inspection body where it of paragraph 9. fails to satisfy the requirements referred to in (a) and (b) or no longer fulfils the criteria indicated in 11. As from 1 January 1998 and without prejudice to paragraph 5 or fails to satisfy the requirements laid the provisions of paragraphs 5 and 6, approved inspection bodies must satisfy the requirements laid down in paragraphs 7, 8, 9 and 11. down in the conditions of standard EN 45011 of 26 June 6(a) Before 1 January 1996, Member States shall issue a 1989. 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 Indication that products are covered by Commission shall publish the code numbers in the list the inspection scheme referred to in the last subparagraph of Article 15.

7. The inspection authority and the approved Article 10 inspection bodies referred to in paragraph 1 shall:

(a) ensure that at least the inspection measures and 1. The indication and/or the logo shown in Annex V precautions specified in Annex III are applied to indicating that products are covered by the specific undertakings subject to their inspection; inspection scheme, may appear on the labelling of products as referred to in Article 1 only where such (b) not disclose information and data they obtain in their products: inspection activity to persons other than the person responsible for the undertaking concerned and the (a) satisfy the requirements of Article 5 (1) or (3); competent public authorities. (b) have been subject to the inspection arrangements referred to in Article 9 throughout the production and 8. Approved inspection bodies shall: preparation process;

(a) give the competent authority, for inspection (c) are sold directly by the producer or preparer to the purposes, access to their offices and facilities, ultimate consumer in sealed packaging, or placed together with any information and assistance on the market as pre-packaged foodstuffs; in the deemed necessary by the competent authority for case of direct sales by the producer or preparer to the fulfilment of its obligations pursuant to this the ultimate consumer, the sealed packaging is not Regulation; required when the labelling enables the product requiring this indication to be identified clearly and (b) send to the competent authority of the Member State unambiguously; by 31 January each year a list of operators subject to their inspection on 31 December of the previous (d) show on the labelling the name and/or business year and present to the said authority a concise name of the producer, preparer or vendor together annual report. with the name or code number of the inspection 30 CHAPTER 2 – CERTIFICATION, Annex II

authority or body, and any indication required in with the procedure laid down in Article 14 and were accordance with the provisions of the regulations on produced in a region or a production unit and under the labelling of foodstuffs, in accordance with the inspection of an inspection body specified, Community legislation. where appropriate, in the decision concerning the third country in question; 2. No claim may be made on the label or advertising material that suggests to the purchaser that the indication (b) the competent authority or body in the third country shown in Annex V constitutes a guarantee of superior has issued a certificate of inspection stating that the organoleptic, nutritional or salubrious quality. lot designated in the certificate:

3. The inspection authority and inspection bodies - was obtained within a system of production referred to in Article 9 (1) must: applying rules equivalent to those laid down in Article 6, and (a) ensure that, where an irregularity is found under Articles 5 and 6 or the measures referred to in Annex - was subject to a system of inspection recognized III, the indication shown in Annex V is removed from as equivalent in accordance with paragraph 2 (b). the entire lot or production run affected by the irregularity concerned; 2. For the purpose of deciding whether, for certain products as specified in Article 1, a third country may at its (b) where a manifest infringement, or an infringement request be included in the list referred to in paragraph 1 with prolonged effects, is found, withdraw from the (a), the following shall be taken into account in particular: operator concerned the right to use the indication shown in Annex V for a period to be agreed with the (a) the guarantees which the third country can offer, at competent authority of the Member State. least in respect of production for export to the Community, as regards the application of rules 4. Rules on withdrawal of the indication shown in equivalent to those laid down in Article 6; Annex V where certain infringements of Articles 5, 6 and 7 or of the requirements and measures in Annex III are (b) the effectiveness of the inspection measures detected may be adopted in accordance with the applied, which, at least in respect of production for procedure laid down in Article 14. 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 General enforcement measures units of origin, or the bodies whose inspections are deemed to be equivalent, may be specified in the Article 10a Commission decision. 3. The certificate referred to in paragraph 1 (b) must: 1. Where a Member State finds irregularities or (a) accompany the goods, in the original copy, to the infringements relating to the application of this Regulation in a product coming from another Member State and premises of the first consignee; thereafter the importer must keep the certificate at the disposal of bearing indications as referred to in Article 2 and/or Annex the inspection body and/or inspection authority for V it shall inform the Member State which designated the not less than two years; inspection authority or approved the inspection body and the Commission thereby. (b) be drawn up in accordance with procedures and a model to be adopted in accordance with the 2. Member States shall take whatever measures and procedure laid down in Article 14. action are required to prevent fraudulent use of the indications referred to in Article 2 and/or Annex V. 4. Detailed rules for the implementation of this Article may be determined according to the procedure referred to in Article 14.

Imports from third countries 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 Article 11 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. 1. Without prejudice to Article 5, products as specified in Article 1 which are imported from a third country may be 6. marketed only where: (a) By way of derogation from paragraph 1, the (a) they originate in a third country appearing in a list to importer(s) in a Member State shall be authorized by be drawn up by Commission decision in accordance the competent authority of the Member State to CHAPTER 2 – CERTIFICATION, Annex II 31

market until 31 December 2002, products imported Free movement within the Community 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 Article 12 Member State with sufficient evidence that the imported products were manufactured according to production rules equivalent to those laid down in Member States may not, on grounds relating to the Article 6 and were subject to inspection measures of method of production, to labelling or to the presentation of equivalent effectiveness to those referred to in that method, prohibit or restrict the marketing of products Articles 8 and 9, and that such inspection measures as specified in Article 1 that meet the requirements of this will be permanently and effectively applied. 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 Article 13 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 The following may be adopted in accordance with the third country has agreed to the continuation of the procedure laid down in Article 14: authorization arrangements provided for in this paragraph. - detailed rules for applying this Regulation,

(b) Where a Member State has received sufficient - amendments to Annexes I, II, III, IV and VI, evidence from an importer, it shall forthwith notify to the Commission and the other Member States the - amendments to Annex V in order to define a third country from which products are imported and Community logo to accompany or replace the supply detailed information on the production and indication that products are covered by the inspection arrangements and the guarantees that inspection scheme. they will be permanently and effectively applied.

(c) At the request of a Member State or at the Commission’s initiative, the matter shall be Article 14 submitted to the Committee referred to in Article 14 for examination. Should it emerge from this examination that the imported products were not The Commission shall be assisted by a committee manufactured according to equivalent production composed of representatives of the Member States and rules and/or inspection measures of equivalent chaired by the representative of the Commission. effectiveness, the Commission shall request the Member State which granted the authorization to Where the procedure laid down in this Article is to be withdraw it. It may be decided, in accordance with followed, the representative of the Commission shall the procedure laid down in Article 14, that the submit to the committee a draft of the measures to be imports in question shall be prohibited or that their taken. continuation subject to certain of the import conditions being amended within a given period. The Committee shall deliver its opinion on the draft, within a time limit which the chairman may lay down according to (d) The notification referred to in (b) shall not be the urgency of the matter. The opinion shall be delivered required where it concerns production and by the majority laid down in Article 148 (2) of the Treaty. inspection arrangements already notified by another The votes of the representatives of the Member States Member State, pursuant to (b), unless significant within the committee shall be weighted in the manner set new evidence is submitted justifying a review of the out in that Article. The chairman shall not vote. examination and decision referred to in (c). The Commission shall adopt the measures envisaged if Before 31 July 1994, the Commission shall they are in accordance with the opinion of the committee. reexamine the provisions of paragraph 1 and submit any appropriate proposals for its review. If the measures envisaged are not in accordance with the opinion of the committee, or if no opinion is delivered, the 7. The Commission may, in accordance with the Commission shall, without delay, submit to the Council a procedure laid down in Article 14 at the request of a proposal relating to the measures to be taken. The Council Member State, approve a third country’s inspection body shall act by a qualified majority. which has previously been assessed by the Member State concerned and add it to the list referred to in If, on the expiry of a period of three months from the date of paragraph 1 (a). The Commission shall forward the referral to it the Council has not acted, the proposed request to the third country concerned. measures shall be adopted by the Commission. 32 CHAPTER 2 – CERTIFICATION, Annex II

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 In accordance with the procedure laid down in Article 14, Commission of measures taken in the preceding year for the date of application of Article 11 (1) may be deferred for the implementation of this Regulation and shall a specified period for imports from a third country where, communicate in particular: following a request by the third country, the stage reached in examining the matter does not permit a decision - a list of the operators who, on 31 December of the regarding the inclusion of the country concerned in the list previous year, had given notification under Article provided for in Article 11 (1) (a) before expiry of the period 8 (1) (a) and are subject to the inspection system referred to in the first subparagraph. referred to in Article 9, For the purposes of complying with the conversion period - a report on supervision pursuant to Article 9 (6). referred to in paragraph 1 of Annex I, the period which has elapsed before the entry into force of this Regulation shall In addition, by 31 March each year, Member States shall be taken into account where the operator can demonstrate inform the Commission of the list of inspection bodies to the satisfaction of the inspection body that during that approved on 31 December of the previous year, their legal period he was producing in accordance with the national and operational structure, their standard inspection provisions in force or, failing that, with the recognized procedure, their penalty arrangements and, where international standards for organic production. appropriate, their mark. 4. For 12 months following the entry into force of this The Commission shall each year publish, in the ‘C’ series Regulation, Member States may, by way of derogation of the Official Journal of the European Communities, the from Article 6 (1), authorize the use in the territory of lists of approved bodies notified to it within the deadlines products containing substances not listed in Annex II, laid down in the foregoing subparagraph. where they consider that the requirements of Article 7 (1) are satisfied.

5. For a period expiring 12 months after the Article 16 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 1. This Regulation shall enter into force on the day of its listed in the said Annex VI. publication in the Official Journal of the European Communities. 6. Each Member State shall inform the other Member States and the Commission of substances authorized 2. Within nine months of the entry into force of this pursuant to paragraphs 4 and 5. Regulation, Member States shall implement Articles 8 and 9.

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 CHAPTER 2 – CERTIFICATION, Annex II 33

ANNEX I

PRINCIPLES OF ORGANIC PRODUCTION AT FARM LEVEL

Plants and plant products the crop being rotated or soil conditioning are not possible by the methods set out under (a) and (b) of the preceding 1. The principles set out in this Annex must normally subparagraph. have been applied on the parcels during a conversion period of at least two years before sowing or, in the case of For compost activation, appropriate micro-organism or perennial crops other than grassland, at least three years plant-based preparations may be used. before the first harvest of products as referred to in Article 1 (1) (a). The inspection body may, with the approval of the So-called “biodynamic preparations” from stone meal, competent authority, decide, in certain cases, to extend or farmyard manure or plants may also be used for the reduce that period, having regard to previous parcel use. purposes covered by this paragraph.

In particular, the conversion period may be reduced to the 3. Pests, diseases and weeds shall be controlled by a strict minimum by a Member State in situations where the combination of the following measures: parcels have been treated with a product not included in Annex II, part B as part of a pest or disease control scheme – choice of appropriate species and varieties, made mandatory by the competent authority of the Member State on its territory or on certain parts of its – appropriate rotation programme, territory in respect of a specific crop. – mechanical cultivation procedures, The reduction in the conversion period must take account of all the following points: – protection of natural enemies of pests through provisions favourable to them (e.g. hedges, nesting – the parcels were already converted or were sites, release of predators), undergoing conversion to organic farming, – flame weeding. – the degradation of the plant protection product concerned must result in an insignificant level of Only in cases of immediate threat to the crop may residue in the soil and, where the latter is a perennial recourse be had to products referred to in Annex II. crop, in the crop, 4. The collection of edible plants and parts thereof, – the Member State concerned must notify the other growing naturally in natural areas, forests and agricultural Member States of its decision concerning the areas, is considered an organic production method obligation of treatment and also the level of the provided that: reduction decided for the conversion period, – those areas have received no treatments with products – products of the harvest following treatment may not be other than those referred to in Annex II for a period of sold bearing an indication referring to organic three years before the collection. production. – the collection does not affect the stability of the natural 2. The fertility and the biological activity of the soil must habitat or the maintenance of the species in the be maintained or increased, where appropriate, by: collection area.

(a) cultivation of legumes, green manures or *5. For production of mushrooms, substrates may be deep-rooting plants in an appropriate multiannual used, if they are composed only of the following rotation programme; components:

(b) incor po ra tion in the soil of organic material, 5.1 farmyard manure and animal excrements (including composted or not, from hold ings pro ducing the products referred to in indents 1 to 4 of Annex II, Part A according to the rules of this Regu la tion. Pending to Regulation (EEC) No 2092/91): the adop tion of common tech nical rules con cerning organic livestock, pro duc tion, by- products from (a) either from holdings producing according to the live stock farming, such as farm yard manure, may be organic production methods; used if they come from live stock hold ings respecting existing national rules or, in the absence thereof, (b) or satisfying the requirements referred to in Annex II, inter na tion ally rec og nized practices con cerning Part A, indents I to 4, of Regulation (EEC) No organic live stock pro duc tion. 2092/91, only up to 25% (*), and only when the product under 5.1 (a) is not available; Other organic or mineral fertilizers, mentioned in Annex II, may be applied only to the extent that adequate nutrition of 34 CHAPTER 2 – CERTIFICATION, Annex II

5.2 products of agricultural origin, other than (*) This percentage is calculated on weight of total those covered under point 5.1 (e.g. straw), from components of the substrate (excluding the covering holdings producing according to organic production material and any added water) before composting. methods; Animals and animal products 5.3 peat not chemically treated, Pending the adoption of the proposal referred to in Article 1 5.4 wood, not treated with chemical products after (2), and for the purpose of preparation of ingredients felling; referred to in Article 5 (3) (a), animals shall be raised in accordance with the existing national rules, or in the 5.5 mineral products of Annex II, Part A to Regulation absence thereof, internationally recognized practices (EEC) No 2092/91, water and soil. 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) CHAPTER 2 – CERTIFICATION, Annex II 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 Need recognized by the inspection body or inspection authority manure Indication of animal species Coming from extensive husbandry and only in the sense of Article 6 (5) of Regulation (EEC) No 2328/91.

- Composted animal excrements, including; Need recognized by the inspection body or inspection authority poultry manure and composted farmyard; Indication of the animal species manure included Factory farming origin forbidden

- Liquid animal excrements (slurry, urine, etc.) Use after controlled fermentation and/or appropriate dilution Need recognized by the inspection body or inspection authority Indication of animal species 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 Use limited to horticulture (market gardening, floriculture, arboriculture, nursery)

- Clays (e.g. perlite, vermiculite, etc.)

______(*) Limit of determination 36 CHAPTER 2 – CERTIFICATION, Annex II

Name Description, compositional requirements, conditions for use

- 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 Need recognized by the inspection body or inspection authority

- Composted mixture of vegetable matter Need recognized by the inspection body or inspection authority

- Products or by-products of animal origin as Need recognized by the inspection body or inspection authority 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 maximum concentration in mg/kg of dry matter of Chromium (VI): - fur 0 (*) - hair - dairy products

- 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 Need recognized by the inspection body or inspection authority

- Crude potassium salt Need recognized by the inspection body or inspection authority (for instance: kainit, sylvinite, etc.)

- Potassium sulphate containing magnesium salt Need recognized by the inspection body or inspection authority Derived from crude potassium salt

- Stillage and stillage extract Ammonium stillage excluded

______(*) Limit of determination. CHAPTER 2 – CERTIFICATION, Annex II 37

Name Description, compositional requirements, conditions for use

- Calcium carbonate of natural origin - (for instance: chalk, mart, ground limestone, Breton ameliorant (maërl), phosphate chalk)

- Magnesium and calcium carbonate of natural Only of natural origin origin (for instance: magnesian chalk, ground Need recognized by the inspection body or inspection authority magnesium limestone, etc.)

- Magnesium sulphate (for instance: kieserite) -

- Calcium chloride solution Foliar treatment of apple trees, after identification of deficit of calcium Need recognized by the inspection body or inspection authority

- 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 Need recognized by the inspection body or inspection authority

- Trace elements Trace elements included in Directive 89/530/EEC Need recognized by the inspection body or inspection authority

- Sodium chloride Only mined salt Need recognized by the inspection body or inspection authority

- 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 Description, compositional requirements, conditions for use

Azadirachtin extracted from Azadirachta indica. Insecticide; (Neem tree) 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.

(*) Beeswax Pruning agent

Gelatine Insecticide

(*) Hydrolysed proteins Attractant; 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 CHAPTER 2 – CERTIFICATION, Annex II

Name Description, compositional requirements, conditions for use

Lecithin Fungicide

Extract (aqueous solution) from Nicotiana Insecticide; tabacum 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 Insecticide cinerariaefolium.

Quassia extracted from Quassia amara. Insecticide, repellent

Rotenone extracted from Derris spp. and Insecticide; Lonchocarpus spp. and Terphrosia spp. Need recognized by the inspection body or inspection authority.

II. Microorganisms used for biological pest control

Name Description, compositional requirements, conditions for use

Microorganisms (bacteria, viruses and fungi) e.g. Only products not genetically modified in the meaning of Bacillus thuringensis, Granulosis virus, etc. Directive 90/220/EEC (1).

Ill. 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 Description, compositional requirements, conditions for use

(*) 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 Insecticide; lambdacyhalothrin) 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. (*) 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. CHAPTER 2 – CERTIFICATION, Annex II 39

Name Description, compositional requirements, conditions for use

IV.Other substances from traditional use in organic farming

Name Description, compositional requirements, conditions for use

Copper in the form of copper hydroxide, copper Fungicide; oxychloride, (tribasic) copper sulphate, cuprous only during a period expiring on 31 March 2002; oxide need recognized by the inspection body or inspection authority

(*) 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 in fruit trees, vines, olive trees and tropical crops (e.g. bananas); Only during a period expiring on 31 March 2002; Need recognized by the inspection body or inspection authority

Potassium permanganate Fungicide, bactericide; only in fruit trees, olive trees and vines

(*) Quartz sand Repellent

Sulphur Fungicide, acaricide, repellent

C. OTHER PRODUCTS

______(*) 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. 40 CHAPTER 2 – CERTIFICATION, Annex II

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 Where the unit processes its own agricultural produce, the collection accounts must contain the information as referred to in Point B.2. third hyphen of this Annex. 1 . Production must take place in a unit the land parcels and production and storage locations of which are clearly 5. Storage, in the unit, of input products other than separate from those of any other unit not producing in those the use of which is compatible with Articles 6 (1) (b) accordance with the rules laid down in this Regulation; and 7 is prohibited. processing and/or packaging workshops may form part of the unit, where its activity is limited to processing and 6. Apart from unannounced inspection visits, the packaging of its own agricultural produce. inspection body must make a full physical inspection, at least once a year, of the unit. Samples for testing of 2. When the inspection arrangements are first products not authorized under this Regulation may be implemented, the producer, even where his activity is taken. However, such samples must be taken where the limited to the collection of wild plants, and the inspection use of unauthorized products is suspected. An inspection body must draw up: report must be drawn up after each visit, countersigned by the responsible person of the unit. – a full description of the unit, showing the storage and production premises and land parcels and/or 7. The producer must give the inspection body, for collection areas and, where applicable, premises inspection purposes, access to the storage and production where certain processing and/or packaging premises and to the parcels of land, as well as to the operations take place, accounts and relevant supporting documents. He must provide the inspection body with any information deemed – all the practical measures to be taken by the necessary for the purposes of the inspection. producer at unit-level to ensure compliance with the provisions of this Regulation, 8.1 Products as referred to in Article 1 may be transported to other units, including wholesalers and – and, in case of col lec tion of wild plants, the guar an- retailers, only in appropriate packaging or containers tees given by third par ties, if appro priate where rele- closed in a manner preventing substitution of the content vant which the pro ducer can pro vide to ensure that and provided with a label stating, without prejudice to any the pro vi sions of Annex I, point 4 are sat is fied. other indications required by law:

The description and the measures concerned must be (a) the name and address of the person responsible contained in an inspection report countersigned by the for the production or preparation of the product, or, producer concerned. where another seller is mentioned, a statement which enables the receiving unit and the inspection In addition, the report must specify: body to identify unequivocally the person responsible for the production of the product; – the date of the last application on the parcels and/or collection areas concerned of products the use of (b) the name of the product, in cluding a ref er ence to the which is not compatible with Article 6 (1) (b), organic pro duc tion method, in accor dance with Ar ticle 5. – 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 8.2 However, the closing of packaging or containers is the measures referred to in Article 9 (9) and, where not required where: relevant, in Article 10 (3). (a) transportation is between a producer and another operator who are both subject to the inspection 3. Each year, before the date indicated by the inspection body, the producer must notify the body of its system referred to in Article 9, and schedule of production of crop products, giving a breakdown by parcel. (b) the products are accompanied by a document giving the information required under the previous 4. Written and/or documentary accounts must be kept subparagraph. which enable the inspection body to trace the origin, nature and quantities of all raw materials bought, and the Where an operator runs several pro duc tion units in the use of such materials; in addition, written or documentary same area, units in the area pro ducing crops or crop accounts must be kept of the nature, quantities and prod ucts not cov ered by Article 1 together with storage consignees of all agricultural products sold. Quantities prem ises for input prod ucts (such as fer til izers, plant sold directly to the final consumer shall be accounted on a protec tion products, seed) must also be sub ject to the daily basis. inspec tion arrange ments as regards the first sub para graph CHAPTER 2 – CERTIFICATION, Annex II 41

of point 2 and points 3 and 4. Crops of the same variety as - all the practical measures to be taken at the level of those pro duced at the unit referred to in point 1 may not be the unit to ensure compliance with this Regulation. pro duced at these units. This description and the measures concerned must be However, producers may derogate from the rule referred contained in an inspection report, countersigned by the to in the last sentence of the preceding subparagraph: responsible person of the unit.

(a) in the case of the production of perennial crop In addition, the report must include an undertaking by the products (fruit growing, vines and hops) provided the operator to perform the operations in such a way as to following conditions are met: comply with Article 5 and to accept, in the event of infringement, the enforcement of the measures referred to 1. the pro duc tion in ques tion forms part of a con- in Article 9 (9) and, where relevant, in Article 10 (3). version plan in respect of which the producer gives a firm under taking and which pro vides for 2. Written accounts must be kept enabling the the begin ning of the con ver sion of the last part inspection body to trace: of the area con cerned to organic pro duc tion in the shortest pos sible period which may not in - the origin, nature and quantities of agricultural any event exceed a maximum of five years, products as referred to in Article 1 which have been delivered to the unit, 2. appropriate measures have been taken to ensure the permanent separation of the - the nature, quantities and consignees of products as products obtained from each unit concerned, referred to in Article 1 which have left the unit,

3. the inspection body or authority is notified of the - any other infor ma tion, such as the origin, nature and harvest of each of the products concerned at quanti ties of ingredi ents, additives and manu fac- least 48 hours in advance, turing aids deliv ered to the unit and the com po si tion of proc essed products, that is required by the 4. imme di ately upon com ple tion of the har vest, the inspec tion body for the pur poses of proper inspec - producer informs the inspec tion body or tion of the opera tions. authority of the exact quan ti ties har vested on the units con cerned together with any par ticular 3. Where products not referred to in Article 1 are also dis tin guishing fea tures (such as quality, colour, processed, packaged or stored in the unit concerned: average weight, etc.) and con firms that the meas ures taken to sepa rate the prod ucts have - the unit must have separate areas within the been applied, premises for the storage of products as referred to in Article 1, before and after the operations, 5. the conversion plan and the measures referred to in points 1 and 2 have been approved by the - operations must be carried out continuously until the inspection body or authority. This approval must complete run has been dealt with, separated by be confirmed each year after the start of the place or time from similar operations performed on conversion plan; products not covered by Article 1,

(b) in the case of areas intended for agricultural research - if such operations are not carried out frequently, they agreed by the Member States’ competent authorities, must be announced in advance, with a deadline provided that conditions 2, 3 and 4 and the relevant agreed on with the inspection body, part of condition 5 referred to in (a) are met; - every measure must be taken to ensure (c) in the case of production of seed, vegetative identification of lots and to avoid mixtures with propagating material and transplants, provided that products not obtained in accordance with the rules conditions 2, 3 and 4 and the relevant part of laid down in this Regulation. condition 5 referred to in (a) are met. 4. Apart from unannounced inspection visits, the inspection body must make a full physical inspection, at B. Processing and packaging units for plant least once a year, of the unit. Samples for testing of products and foodstuffs composed essentially of products not authorized under this Regulation may be plant products taken. However, they must be taken where the use of unauthorized products is suspected. An inspection report 1. When the inspection arrangements are first must be drawn up after each visit countersigned by the implemented, the producer and inspection body must person responsible for the unit inspected. draw up: 5. The operator must give the inspection body, for - a full description of the unit, showing the facilities inspection purposes, access to the unit and to the written used for the processing, packaging and storage of accounts and relevant supporting documents. He must agricultural products before and after the operations provide the inspection body with any information concerning them, necessary for the purposes of the inspection. 42 CHAPTER 2 – CERTIFICATION, Annex II

6. Products as referred to in Article 1 may be 2. Written accounts must be kept enabling the transported to other units, including wholesalers and inspection body to trace for each lot of products referred to retailers, only in appropriate packaging or containers in Article 1, imported from a third country: closed in a manner preventing substitution of the content and provided with a label stating, without prejudice to any - the origin, nature and quantity of the lot concerned, other indications required by law: and on request by the inspection body, any details on the transport arrangement from the exporter in (a) the name and address of the person responsible for the third country to the importer’s premises or the production or preparation of the product, or, storage facilities; where another seller is mentioned, a statement which enables the receiving unit and the inspection - the nature, quantities and consignees of the lot body to identify unequivocally the person concerned, and on request by the inspection body, responsible for the preparation of the product; and details on the transport arrangements from the importer’s premises or storage facilities to the (b) the name of the product, including a reference to the consignees. organic production method according to the relevant provisions of Article 5. 3. The importer shall inform the inspection body of each imported consignment into the Community, giving On receipt of a product as referred to in Article 1, the any details this body or authority may require, such as a operator shall check the closing of the packaging or copy of the inspection certificate for the importation of container where it is required and the presence of the organic products. When the products concerned are indications referred to in the previous paragraph, in point circulating in a Member State or region other than the one A.8.1 or in point C.8. The result of this verification shall be where the inspection body is approved for inspection, that explicitly mentioned in the accounts referred to in point body may pass the information to a body, approved for B.2. Where the check leaves any doubt that the product inspection in that Member State or region, for on-the-spot concerned came from an operator subject to the inspection of the imported consignment. inspection system provided for in Article 9, it may only be put into processing or packaging after elimination of that 4. Where imported products referred to in Article 1 are doubt, unless it is placed on the market without indication stored in storage facilities where also other agricultural referring to the organic production method. products or foodstuffs are processed, packaged or stored:

- the products as referred to in Article 1 must be kept C. Importers of plant products and foodstuffs separate from the other agricultural products and/or composed essentially of plant products from third foodstuffs; countries - every measure must be taken to ensure 1. When the in spec tion ar range ments are first im ple- identification of lots and to avoid mixtures with mented, the im porter and in spec tion body must draw up: products not obtained in accordance with the rules laid down in this Regulation. - a full description of the importer’s premises and of his import activities, indicating as far as possible the 5. Apart from unannounced inspection visits, the points of entry of the products into the Community inspection body must make a full physical inspection, at and any other facilities the importer intends to use for least once a year, of the importer’s premises and, where the storage of the imported products; relevant, of a selection of the other storage facilities which the importer uses. - all the practical measures to be taken by the importer to ensure compliance with this Regulation. The inspection body shall inspect the written accounts mentioned in point C.2 and the certificates referred to in This description and the measures concerned must be Article 11 (1) (b) and (3). Samples for testing of substances contained in an inspection report, countersigned by the not authorized under this Regulation may be taken. importer. However, they must be taken where the use of unauthorized substances is suspected. An inspection In addition, the report must include an undertaking by the report must be drawn up after each visit, countersigned by importer the person responsible for the unit inspected.

- to per form the import opera tions in such a way as to 6. The importer must, for inspection purposes, give the comply with the provi sions of Article 11 and to inspection body access to his premises and to the written accept, in the event of infringe ment, the enforce ment accounts and relevant supporting documents, in particular of the meas ures referred to in Article 9 (9); any import certificates. He must provide the inspection body with any information necessary for the purposes of - to ensure that any storage facilities that the importer the inspection. will use are open to inspection, to be carried out either by the inspection body or, when these storage 7. Products as referred to in Article 1 shall be imported facilities are situated in another Member State or from a third country in appropriate packaging or region, by an inspection body approved for containers, closed in a manner preventing substitution of inspection in that Member State or region. the content and provided with identification of the exporter CHAPTER 2 – CERTIFICATION, Annex II 43

and with any other marks and numbers serving to identify 8. Products referred to in Article 1 may be transported the lot with the inspection certificate. to other units, including wholesalers and retailers, only in appropriate packaging or containers closed in a manner On receipt of a product as referred to in Article 1, imported preventing substitution of the content and provided with a from a third country, the operator shall check the closing of label stating, without prejudice to any other indications the pack aging or con tainer and the cor re spon dence of the required by law: identi fi ca tion of the lot with the cer tifi cate referred to in Article 11 (1) (b) or a similar cer tifi cate where required by the (a) the name and address of the importer of the product, authori ties under any arrange ments adopted under Article or a statement which enables the receiving unit and 11 (6). The result of this veri fi ca tion shall be explic itly men- the inspection body to identify unequivocally the tioned in the accounts referred to in point C.2. Where the importer of the product; check leaves any doubt as to the origin of the product from a third country or from an exporter in a third country not (b) the name of the product, including a reference to the accepted under Article 11, the product may be put on the organic production method under Article 5. 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. 44 CHAPTER 2 – CERTIFICATION, Annex II

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 valvontaj rjestelm/Ekologiskt jordbruk - EEG-Kontrollsystem

S: Ekologiskt jordbruk - EEG-kontrollsystem. CHAPTER 2 – CERTIFICATION, Annex II 45

ANNEX VI

INTRODUCTION

For the purposes of this Annex, the following definitions will 5. food additives: substances as defined in Article 1 apply: (1) and (2) of Directive 89/107/EEC and covered by that Directive or by a comprehensive Directive as referred to 1. ingredients: substances as defined in Article 4 of this in Article 3(1) of Directive 89/107/EEC; Regulation under the restrictions as referred to in Article 6 (4) of Council Directive 79/112/EEC of 18 December 1978 6. carriers, including carrier solvents: food additives on the approximation of the laws of the Member States used to dissolve, dilute, disperse or otherwise physically relating to the labelling, presentation and advertising of modify a food additive without altering its technological foodstuffs for sale to the ultimate consumer. function in order to facilitate its handling, application or use; 2. ingredients of agricultural origin: 7. flavouring: substances and products as defined in (a) single agricultural products and products derived Article 1 (2) of Council Directive 88/388/EEC of 22 June therefrom by appropriate washing, cleaning, thermic 1988 on the approximation of the laws of the Member and/or mechanical processes and/or by physical States relating to flavourings for use in foodstuffs and to processes having the effect of reducing the moisture source materials for their production, and covered by content of the product; that Directive.

(b) also, prod ucts derived from the prod ucts men tioned under (a) by other processes used in food proc essing, GENERAL PRINCIPLES unless these prod ucts are con sid ered food addi tives or fla vour ings as defined under points 5 or 7 here under. Sections A, B and C cover the ingredients and processing aids which may be used in the preparation of 3. ingredients of non-agricultural origin: ingredients other foodstuffs composed essentially of one or more than ingredients of agricultural origin and belonging to at ingredients of plant origin, referred to in Article 1 (1) (b) of least one of the following categories: this Regulation, with the exception of wines.

3.1 food additives, including carriers for food additives, as Not with standing ref er ence to any ingre dient in Sec tions A defined under points 5 and 6 hereunder; 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 3.2 flavourings, as defined under point 7 hereunder; with relevant Commu nity leg is la tion and/or national leg is la tion com patible with the Treaty and, in the absence 3.3 water and salt; thereof, in accor dance with the prin ci ples of good manufac turing prac tice for foodstuffs. In par ticular 3.4 micro-organism preparations; addi tives shall be used according to the provi sions of Direc tive 89/107/EEC and, where rele vant, those of any 3.5 minerals (including trace elements) and vitamins. com pre hen sive Direc tive as referred to in Article 3 (1) of Direc tive 89/107/EEC; fla vour ings shall be used 4. proc essing aids: sub stances as defined in Article 1 (3) according to the pro vi sions of Direc tive 88/388/EEC and (a) of Council Direc tive 89/107/EEC on the approxi ma tion of sol vents according to the pro vi sions of Council Direc tive the laws of the Member States con cerning food addi tives 88/344/EEC of 13 June 1988 on the approxi ma tion of the authorized for use in foodstuffs intended for human laws of the Member States on extrac tion sol vents used in con sump tion; the pro duc tion of food stuffs and food ingre di ents.

SECTION A – INGREDIENTS OF NON-AGRICULTURAL ORIGIN (REFERRED TO IN ARTICLE 5 (3) (B) OF REGULATION (EEC) NO. 2092/91):

A.1. Food additives, including carriers

Name Specific conditions

E 170 Calcium carbonates - E 270 Lactic acid - E 290 Carbondioxide - E 296 Malic acid - E 300 Ascorbic acid - E 306 Tocopherol-rich extract anti-oxydant in fats and oils E 322 Lecithins - E 330 Citric acid - 46 CHAPTER 2 – CERTIFICATION, Annex II

E 333 Calcium citrates - E 334 Tartaric acid - E 335 Sodium tartrate - E 336 Potassium tartrate - E 341(i) Monocalciumphosphate raising agent for self raising flour E 400 Alginic acid - E 401 Sodium alginate - E 402 Potassium alginate - E 406 Agar - E 407 Carrageenan - E 410 Locust beam gum - E 412 Guar gum - E 413 Tragacanth gum - E 414 Arabic gum - E 415 Xanthan . E 416 Karaga gum - E 440 (i) Pectin - E 500 Sodiumcarbonates - E 501 Potassiumcarbonates - E 503 Ammoniumcarbonates - E 504 Magnesiumcarbonates - E 516 Calcium sulphate carrier E 524 Sodiumhydroxide surface treatment of Läugengeback E 998 Argon - E 941 Nitrogen - E 948 Oxygen -

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 coagulation agent Calcium carbonate - Calcium hydroxide - Calcium sulphate coagulation agent CHAPTER 2 – CERTIFICATION, Annex II 47

Magnesium chloride (or nigari) coagulation agent Potassium carbonate drying of grapes Sodium carbonate sugar production Citric acid oil production and hydrolysis of starch Sodium hydroxide sugar production oil production from rape seed (Brassica spp) only during a period expiring on 31 March 2002 Sulphuric acid sugar production Carbon dioxide - Nitrogen - Ethanol solvent Tannic acid filtration aid Egg white albumen - Casein - Gelatin - Isinglass - Vegetable oils greasing, releasing or anti-foaming agent Silicon dioxide gel or colloidal solution - Activated carbon - Talc - Bentonite - Kaolin - Diatomaceous earth - Perlite - Hazelnut shells - Rice meal - Beeswax releasing agent Carnauba wax 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 Malpighia punicifolia Acorns Quercus spp Cashew nuts Anacardium occidentale Cola nuts Cola Acuminata Fenugreek Trigonella foenum-graecum Gooseberries Ribes uva-crispa Maracujas (passion fruit) Passiflora edulis Papayas Carica papaya Pine kernels Pinus pinea Raspberries (dried) Rubus idaeus Red currants (dried) Ribes rubrum 48 CHAPTER 2 – CERTIFICATION, Annex II

C.1.2. Edible spices and herbs:

Allspice Pimenta dioica Cardamom Fructus cardamomi (minoris) (malabariensis) Elettaria cardamomum Cinnamon Cinnamomum zeylanicum Clove Syzygium aromaticum Ginger Zingiber officinale Horseradish seeds Armoracia rusticana Lesser galanga Alpinia officinarum Watercress herb Nasturtium officinale

C.1.3. 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 Theobroma cacao Coco Cocos nucifera Olive Olea europaea Sunflower Helianthus annuus

C.2.2. 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. CHAPTER 2 – CERTIFICATION, Annex II 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 within Europe, ranging from a very small per centage Europe (mainly the European Union countries and of total food spending in the more southern regions to a Swit zer land), the United States and Japan, though much higher propor tion in northern and central there are smaller but interesting mar kets in many Europe, especially in Aus tria, Den mark and other coun tries, including a few devel oping ones. As Swit zer land. The share of organic foods as a seg ment there are no offi cial trade sta tis tics, it is impos sible to of the gro cery market is increasing but typi cally give a complete picture of the inter na tional organic accounts for only between 1% and 1.5% of total trade. In all mar kets, the sector forms an inte gral part spending on food. Recent market research has shown of the overall food and bev erage trade, because that consumer demand is growing rap idly in most organic prod ucts are sold to consumers within the major mar kets, and that the share of organic foods is normal assort ment of super mar kets and other gro cery expected to reach 5% - 10% of total food sales in some out lets, as well as by spe cial ized chan nels like coun tries by the year 2005. All mar kets, except organic and natural food shops, street mar kets, farm Germany, project a growth rate of con sump tion in shops and box schemes.

Retail sales of organic foods in these three Table 3.1 World markets for organic food and beverages, 1997 major market areas were estimated at Approximate Expected growth nearly $11 bil lion in 1997 and pre limi nary Market retail sales % of total rate (%) over estimates for 1998 indi cate that the total (US$ million) food sales the medium term may have risen to over $13 bil lion. Germany 1 800 1.2 5-10 Germany is by far the largest market in France 720 0.5 20 Europe, accounting for over one third of United Kingdom 450 0.4 25-35 total sales. The other main mar kets in terms Netherlands 350 1 10-15 of abso lute con sump tion are France, Switzerland 350 2.0 20-30 United Kingdom, the Nether lands, Denmark 300 2.5 30-40 Swit zer land, Den mark and Italy (in Italy Sweden 110 0.6 30-40 supplies are mainly of domestic origin). Italy 750 0.6 20 Some other markets, like Austria and Sweden, are smaller in abso lute terms, but Austria 225 2 10-15 their per capita con sump tion of organic Other Europe a/ 200 foods is rising rap idly. Total, Europe 5 255

Table 3.1 gives an overview of the United States 4 200 1.25 20-30 esti mated size of the major world mar kets Japan 1 000 for organic food and bev er ages in 1997. TOTAL 10 455 Demand for organic food varies Source: Compiled by ITC. con sid erably from country to country 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 building mar keting structures, including consumer certain mar kets (Switzer land, Den mark, Sweden, and pro ducer advi sory serv ices and pro mo tion. How- United Kingdom) fore cast rates of over 25%. ever, in Ger many, for example, more funding has gone directly to farmers. Consump tion, particu larly In the 1970s and early 1980s the devel op ment of the of organic dairy pro duce, grain, vege ta bles and fruit, organic food market in northern European coun tries has been stimulated by more consis tent availability was stimu lated by growing con sumer interest in health and, very impor tantly, by the resulting lower price and nutri tion and an increasing aware ness of the need pre miums. to pre serve nature and the envi ron ment. Small groups of dedi cated con sumers, who were willing to pay sig - Second, the mainstream supermarket trade has nifi cantly higher prices for organi cally pro duced food, committed itself to the organic trade, not only by took the lead and demand was also stimulated by stocking organic products, but also by making it a media interest, up and coming envi ron mental move - serious objec tive to pro mote a complete range of ments and green political par ties, food scan dals (such organic gro cery prod ucts among their cus tomers. In as those which arose over bovine spongi form gen eral, Euro pean con sumers do a high pro por tion of encepha lo pathy or BSE, por cine pest, dioxin con tami- their house hold shop ping at super mar kets and overall na tion) and con tro ver sies posed by the use of geneti- demand for organic prod ucts in the mid 1990s grew cally modified organisms or GMOs, which further fastest in coun tries where the large com mer cial chains moti vated peo ple’s search for healthy food. How ever, were most active in pro moting organic prod ucts. This in most mar kets, with the excep tion of Den mark and is high lighted by the situa tion in Den mark and, since Swit zer land, organic food remained a very small niche 1995, by the growing organic sales and the rapidly product in the total gro cery trade until the mid 1990s, increasing market share of supermarket groups in when a larger seg ment of consumers – though less Austria, France, Ger many, the Nether lands, Sweden, willing to pay high prices – became the domi nant Swit zer land and the United Kingdom. factor in the organic market. The expe ri ences of indi- vidual mar kets dif fered but, in gen eral, sev eral major The third factor has been the uniform stan dards for fac tors con trib uted to this lack of devel op ment: organic food pro duc tion and label ling and for organic certi fi ca tion which were intro duced throughout the q High prices; Euro pean Union by Council Regu la tion (EEC) 2092/91. However, though the Direc tive covers the q Unavailability of supply owing to the whole of the European Union, national organic insufficient involvement of farmers and food label ling schemes continue to differ from country to processors; country. In mar kets like Belgium, Den mark, the Neth er lands and Sweden, cer ti fied organic quality is q Limited participation of the supermarkets or the pre sented to consumers by a single logo which they mainstream grocery trade; rec og nize as a guarantee. In France, until the intro duc tion of the national AB logo, the pro lif era tion q Lack of consumer confidence in organic quality. of indi vidual logos was particu larly con fusing. In Germany, whether or not the logo Öko prüfzeichen, In the 1990s the rates of devel op ment of organic food launched in early 1999, will become a genuine sales in indi vidual European mar kets have varied national organic symbol will largely depend on how it dra mati cally. Three key posi tive fac tors have is man aged. influ enced prog ress, though their effect has dif fered from country to country. In the larger and more dynamic organic mar kets, the demand and supply situa tion for fresh foods has been First, under EU and national (organic) agricul ture the major con tributor to growth. How ever, because poli cies, financial sup port for converting to, and the organic food trade aims to mirror the con ven- main taining, organic farming has increased sub stan- tional gro cery trade, there is growing demand for all tially, which has stimu lated the supply of organic pro- food and bev erage prod ucts. Sup plies are first sought duce in nearly all Euro pean coun tries. The policy is locally, then subse quently from nearby European far more marketing-oriented in some coun tries than sources. How ever, a huge variety of prod ucts, which in others, so that in coun tries like Aus tria, Den mark cannot be grown within the com mu nity or are not and the Neth er lands, funding has gone not only to avail able through the year, are bought in from world- farmers in the form of hec tare pre miums but also for wide sources, including many devel oping coun tries. CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS 55

Target markets

Denmark of the sector into the overall food market is low. According to trade sources, the retail market With a popu la tion of just over 5 mil lion people, amounted to about $725 mil lion in 1997, equiva lent Den mark is a fairly small market for most food and to just under 0.5% of total food sales. Retail sales are bev er ages. How ever, total sales of organic food and believed to have exceeded $800 mil lion in 1998 and bev er ages were esti mated at about $300 mil lion the cur rent growth rate is esti mated at around 20%. (excluding value- added tax or VAT) in 1997, cor re sponding to 2.5% of the total retail market for Despite the importance of France as a major foodstuffs. This places Den mark in the top league agricul tural pro ducer and a signifi cant food and among world mar kets, as far as per capita bev erage exporter, organic farming has failed to keep consump tion of organic foodstuffs is con cerned. pace both with demand from the domestic market and Fur ther more, it should be noted that con sump tion has with the accel er ated rate of conver sion in been growing rap idly in recent years. Organic neigh bouring European mar kets. In 1997 organic prod ucts are believed to have reached 3.5% - 4% of agricul ture accounted for only 0.3% of the usage of total food and bev erage sales in 1998, or a value of total farm land in France, com pared with over 7% in approxi mately $500 mil lion. Austria and Switzer land and 2% in Ger many. How ever, gov ern ment policy is in place to sup port There are strong indi ca tions that the Danish organic and pro mote more rapid devel op ment over the next food market will con tinue to expand for a con sid er- few years and the number of organic farmers in the able number of years. First, consumer interest in country is tar geted to rise from 4,500 at the end of healthy food and environ men tally friendly prod ucts 1997 to about 25,000 by the year 2005. It is also continues to grow and more people are pur chasing sig nifi cant that organic proc essing is increasing and organic prod ucts. Second, the major retailers are pro- that some major French food manu fac turers have moting organic foodstuffs quite aggressively, pri - launched organic product lines. marily through heavy adver tising and com peti tive pricing. For example, FDB (Coop Denmark), the The growing involve ment of major retail largest food retailing group, which con trols about one organi za tions in organic food sales is expected to have third of national food sales, has set ambitious sales a highly posi tive effect on total con sump tion, because tar gets for spe cific organic prod ucts (as a per centage it will increase the expo sure and avail ability of organic of total sales of a given item) to be reached by a cer - products to occasional buyers. These new customers tain target year. Third, Danish farmers as well as food do most of their house hold shop ping at super mar kets manufac turers are increas ingly becoming aware of and hyper mar kets and expect to be able to buy the the opportu ni ties that exist in satis fying con sumer same wide range of organic food stuff that they have expecta tions. Finally, current gov ern ment policy been used to pur chasing in con ven tional quality. aims at pro moting produc tion and con sump tion of organic food stuffs. Sources in both trade and industry France is an impor tant exporter of organic fresh fruits are con fi dently pre dicting that organic prod ucts will and vege ta bles, cereals, wine, eggs and poultry. reach about 10% of total food sales by the year 2005. How ever, because of the rela tively small scale of pro duc tion and growing domestic demand, there is a It should also be noted that the Min istry of Food, great need for imports of both pro duce which cannot Agri cul ture and Fish eries has just issued (in January be grown in France and prod ucts of which local 1999) its Action Plan II for the fur ther devel op ment sup plies are insuf fi cient to meet demand. Imports of of organic farming and trade in Den mark during the organic foods from out side the Euro pean Union have period 1999-2003 and beyond. 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 popu la tion of over 58 mil lion, is one of the largest mar kets for organic foods Ger many is the largest market in Europe for organic in Europe, per capita con sump tion and the pene tra tion foods and the second largest in the world after the 56 CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS

United States. Sales totalled about $1,800 mil lion in purchasing, consumers are motivated, not only by 1997 and were expected to reach over $2,000 mil lion organic origin, but also by freshness, taste, good in 1998. How ever, this figure corre sponds to only pres en ta tion, local farm sourcing and the perceived about 1.2% of total German food sales and a fairly envi ron mental friend li ness of prod ucts and their low per capita con sump tion for the huge popu la tion pack aging. Some organic traders and other sup pliers of 82 million. The market is unlikely to continue have become somewhat discour aged by the slow performing at the double- digit growth rates of the progress of market devel op ment and exporters from past 10 years or so, but trade sources are confi dent developing countries are finding it increas ingly that organic sales will rise in the medium term at dif fi cult to pene trate the German market because of about 5% - 10% annu ally. growing compe ti tion and the extremely strict stan dards required. It is nec es sary to take a much The most sig nifi cant seg ments of demand for organic more pro fes sional approach than in the past. foods are for fresh fruit and vege ta bles, dairy prod ucts, bread and bakery prod ucts, and baby food. None the less, a number of posi tive aspects of the Together these account for nearly two thirds of total German market should not be ignored, for example, a consump tion. Conver sion to organic agricul ture in strong aware ness of envi ron mental and health issues, Ger many has accel er ated rap idly in recent years, with con sumer interest in organic con ven ience food, and the organi cally farmed area expanding from 45,000 the new national logo for organic prod ucts. Of spe cial hectares in 1989 to 350,000 hec tares in 1997. This interest to devel oping coun tries is the Pro trade/GTZ- huge expan sion has meant that Ger many has become sponsored Green Trade Net inter na tional data base on largely self- sufficient in many basic food items (like organic prod ucts, which pro vides market infor ma tion cereals, vege ta bles, milk and meat) and that price and links exporters in these coun tries with importers levels for cer tain key prod ucts are fal ling because of in Germany and else where. (GTZ stands for Deut - over supply and keen com pe ti tion. sche Gesellschaft für Technische Zusam menar beit or the Ger many Agency for Tech nical Coop era tion.) Until recently, retail distri bu tion was controlled largely by natural food shops, reform shops, farm Netherlands shops and other direct selling out lets; supermar kets were slow to enter the market. Although most major Con sump tion of organic food stuff accounts for only a German supermarket chains now carry organic small share in total gro cery expendi ture in the pro duce they have been slower than many of their Neth er lands. It is esti mated that the sector was worth Euro pean coun ter parts to make a clear com mit ment around $350 mil lion at retail prices in 1997. This was to mar keting a fuller organic assort ment. A further equiva lent to about 1% of the total gro cery market, negative influence on overall organic spending has which is small com pared with some European been con fu sion in the minds of con sumers about the mar kets. The major fac tors lim iting growth until the true meaning of organic and the fact that to date the mid 1990s have been: German organic move ment has not found a suc cessful way of com mu ni cating its mes sage to the q High prices. Netherlands consumers spend a popu la tion as a whole, though a common logo smaller percentage of their disposable income on (Öko prüfzeichen) was intro duced in early 1999. food than their EU neighbours and price is a key influence on expenditure on grocery products. Ger many is by far the largest importer in Europe and imports a wide assort ment of organic products. The q The marginal level of involvement of the key sources of imports are France, Italy, Spain, the mainstream grocery trade. Most supermarkets Neth er lands, eastern Europe, the United States, Turkey carried until recently only a very small range of and other Medi ter ra nean coun tries and countries in organic products. Latin America. The rising levels of organic pro duc tion in eastern Ger many and in nearby eastern Europe have How ever, 1996 marked a turning point in the partly shifted the emphasis of the import trade in the Neth er lands organic trade: retail sales increased by five years to 1998 away from France and Italy, and 3% - 5% in that year and most esti mates agree that the new sup pliers are increas ingly sig nifi cant. rate of increase accel er ated to between 10% and 15% in 1997, a trend that has con tinued since. Posi tive It should be noted that German consumers are develop ments have included the expan sion of local amongst the most critical in Europe and, in their food supply and more efficient distri bu tion of dairy and CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS 57 vege table pro duce, ration ali za tion of wholesale self- sufficient in organic dairy prod ucts, meat, bread dis tri bu tion to the spe cialist shops, which still play a cereals and sugar. At present about 20% of organic key role in retail sales, and intensi fied govern ment food require ments are imported, but this is expected initia tives to stimulate both organic produc tion and to increase as demand grows for a fuller range of consump tion. Perhaps the key change has been prod ucts. The most impor tant imports are fresh fruits increased penetra tion into supermar kets and their and vege ta bles, and green coffee. (Sweden has the uptake of new organic product ranges. The domi nant highest per capita con sump tion of coffee in the world food retailer Albert Heijn launched its own brand for and all coffee roasters offer organic varie ties.) The its organic assort ment in early 1998, which is other main import groups are dried fruits and expected to have a strong posi tive effect on overall vegeta bles, packaged food, and raw materials and sales. Future growth will depend strongly on the rate ingredi ents (especially cereals, spices, herbs, of expan sion by super mar kets into a fuller range of vege table oils and fats) for the domestic food prod ucts and on the ability of suppliers to offer industry, which has a share of about 80% in total organic produce to consumers at prices they are manu fac tured food con sump tion. prepared to pay. Retail sales are believed to have reached about $425 mil lion in 1998. Con cern for the envi ron ment is a key moti va tion for Swedish buyers of organic foods, but price pre miums In spite of the com para tively small domestic con sump- have been a major bar rier to market expan sion. Con - tion of organic food, the Neth er lands is a major Euro - sump tion is concen trated in the met ro politan areas. pean and global trader in organic food and bev er ages. Scar city and irregular avail ability have also been prob - The country exports domes ti cally pro duced fresh lems for the sector, but the supply situa tion is vege ta bles, dairy prod ucts and processed organic improving and this is expected to have a favour able foods, but it has a far greater role in importing, proc - down ward impact on price premiums. Another posi - essing and repacking bulk organic foods from world - tive factor for the overall market is that the three largest wide sources for re- export to most Euro pean mar kets. super market chains in Sweden have recently set ambi- Fresh fruits and vege ta bles, grain and cereals, coffee, tious tar gets for organic foods which, if imple mented, dried fruits and nuts, tea, and spices and herbs are par - could increase the cur rent market size four- or five fold. ticu larly impor tant re- export prod ucts. A large part of Trade experts are con fi dently predicting that organic the bulk organic food stuffs imported into Europe from foods could account for 4% - 5% of total Swedish food devel oping coun tries is han dled by Nether lands con sump tion within a few years. traders. Moreover, the Neth er lands organic inspec tion authority SKAL is one of the most impor tant Euro pean Switzerland certi fi ca tion organi za tions, operating organic inspec - tion serv ices in over 30 coun tries. Though a small country with a population of only 7 mil lion, Swit zer land is one of the pio neers in the Sweden devel op ment of organic agri cul ture, which it started as early as the 1930s. Organic farming is well Con sump tion of organic food and bev er ages devel oped and accounted for an esti mated 8% of total accounted for about 0.6% of total retail gro cery sales in agricul tural land in 1998. Market penetra tion of Sweden in 1997 and was valued at an esti mated $110 organic food is among the highest in the world. million (excluding value- added tax). Demand has increased sig nifi cantly in recent years and there has Though organic prod ucts have long been sold at the been a problem in coping with the growth in require - farm gate and through other direct out lets and later on ments. The most signifi cant sec tors of demand are through organic shops, the market began to grow dairy prod ucts and fresh vege ta bles, which together seri ously only after 1993 when the big supermarket account for over two thirds of total organic sales. chain, Coop started to market organic food, fol lowed by another large super market chain, Migros, in 1996. By 1997 Sweden had about 3,000 organic farms, on Sales have since increased strongly. The retail market 118,000 hec tares of land, cer ti fied by the national for cer ti fied organic food was esti mated at between organic cer ti fi ca tion authority KRAV. The cer ti fied Sw F 500 mil lion and Sw F 520 mil lion in 1997, area made up 3.4% of all agri cul tural land. cor re sponding to roughly 2% of the total Govern ment policy aims to increase this per centage food market. Sales in 1998 of organic food and sub stan tially over the next several years. Domestic bev er ages can be esti mated at about Sw F 560 mil lion produc tion ensures that Sweden is more or less to Sw F 580 mil lion. 58 CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS

Overall, the market for organic food prod ucts is large size of the average British farm makes expected to grow strongly over the next few years. con ver sion more dif fi cult. The main organic out puts This will be due to the con sum ers’ posi tive atti tude are dairy prod ucts, meat, eggs and cereals. towards health food and natu rally and ethically pro duced food; increased supplies as more farmers The small number of powerful mul tiple chains, go into organic farming (conver sion to organic which con trol 70% of food retailing in the United farming is being sup ported by the Gov ern ment); and Kingdom, has played a sig nifi cant role in the (lack of) more aggres sive mar keting by major supermarket develop ment of the organic trade. Despite a long chains. The import rate is in general compara tively history of involve ment in the organic trade, their low as market access is dif fi cult, mainly owing to the activity has been marked by periods of enthu si astic predomi nance of privately controlled labels and devel op ment fol lowed by with drawals from han dling strict require ments. For various rea sons, the Swiss organic pro duce. When organic prod ucts were sold, market is likely to remain a dif fi cult one for the price differ en tials were frequently so high as to exporters. restrict demand. Fur ther more, although most groups saw organic foods as a potential growth area, they Never the less, it is an impor tant market that should found the problems of ensuring reli ability and not be ignored by devel oping coun tries. Prod ucts con ti nuity of supply, meeting quality requirements with the best opportu ni ties are those that cannot be and offering com peti tive pricing too dif fi cult to grown in Switzer land, e.g. coffee, tea and cocoa, overcome. Most of the major chains, particu larly citrus and tropical fruits, rice, millet, durum Sains bury’s, Wai trose, Safeway and Tesco, are now wheat, spices, nuts and dried fruit. Other prod ucts, becoming increas ingly com mitted to expanding their e.g. off-season fruits and vege ta bles, and prod ucts range of prod ucts and their sales of organic foods. It in short supply may also find open ings in the market. should be noted, how ever, that organic foods can expect to face compe ti tion in the British as well as other mar kets from ICM (inte grated crop United Kingdom man age ment/sus tain able agri cul ture).

While the United Kingdom is one of the larger The British organic market is highly dependent on markets for organic foods in Europe, growth in imports, which are esti mated to have a share of about consump tion has been dis ap pointing until recently. 70% of the total market. About half of the imports are Total retail sales in 1997 amounted to an estimated sourced in other Euro pean coun tries, but as much as one $450 million, only 0.4% of the overall gro cery third of the total is sup plied from devel oping coun tries. market. Despite the fact that the country has been a Owing to the small scale of local pro duc tion and major con tributor to the for mu la tion of EU organic the projected future growth of the market, the United stan dards and cer ti fi ca tion pro ce dures, it has lagged Kingdom should be one of the key target mar kets for seri ously behind in its own market devel op ment. pro spec tive sup pliers of organic food stuffs. Prospects for the coming years appear to be much brighter: sales nearly dou bled between 1995 and Other major markets 1997 and the trade opti mis ti cally forecasts that the retail value of the organic market could be as high The United States market for organic food and as $10 bil lion within 10 years, which would rep re sent bev er ages was valued at an esti mated $4,200 mil lion a market share of about 10%. Fruits and in 1997, up from about $2,800 mil lion in 1995. In vege ta bles account for about 45% of total organic 1998, trade sources expected the year’s sales to reach consump tion, followed by cereals, meat and dairy $5,000 mil lion. Growth rates of at least 10% - 15% prod ucts. are antici pated.

Domestic organic agricul ture has not developed Little infor ma tion is avail able on the Japa nese market, quickly: in 1997 there were only 1,200 units using but according to some sources, the market probably 75,000 hec tares or about 0.4% of the total avail able amounted to as much as $1,000 mil lion-$1,200 mil lion farm land. It is the trade view that the Gov ern ment is in 1997 and is growing rap idly. Retail sales in 1998 are not yet truly com mitted to organic produc tion. The believed to have been in the range of $1,300 mil lion - level of assistance to farmers converting to organic $1,500 million. Addi tional infor ma tion on these and methods is less than half that given to farmers in most other mar kets is given in chapter 4 on the world supply other EU coun tries. Moreover, the compara tively situation. CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS 59

Market segments

From the point of view of exporters in devel oping and Sweden, the dairy sector has been a major force countries, the most impor tant market seg ment in in the recent fast growth of organic food sales. Fresh Euro pean mar kets is the food proc essing and fruits and vege ta bles are a sig nifi cant product group repacking sector, because vir tu ally all imported in all mar kets: the rap idly growing demand for organic food and bev er ages con sist of fresh pro duce pro duce sup plied from local sources has gradu ally or raw mate rial which needs some form of repacking given rise to increasing demand for the organic or proc essing before it can be offered for sale to the coun ter parts of the full range of fruits and vege ta bles consumer. Most mar kets focus strongly on pri mary available from con ven tional agri cul ture. This is processing but, as demand for organic prod ucts pos sibly the product group which offers the best grows and the con sumer increas ingly expects to buy overall export opportu ni ties for devel oping country organic alterna tives to con ven tional food stuffs, sec- producers. Other impor tant product groups include on dary proc essing and food manu fac turing, not only cereals, cocoa, coffee and tea, dried fruits and nuts, by spe cial ized organic firms but also by major mul ti- herbs and spices, fats, oils and derived prod ucts, and na tional food com pa nies, are gradu ally taking off. sugar.

Although it is dif fi cult to make clear distinc tions between sec tors, the organic trade in indi vidual Food processing industry Euro pean mar kets can be broadly divided into the Until recently the organic food proc essing industry in three seg ments dis cussed below: the retail sector, the most European mar kets con cen trated mainly on food proc essing industry, and the catering and primary proc essing and repacking of agricul tural insti tu tional sector. pro duce into a form suit able for sale to con sumers, and on sec on dary proc essing into a lim ited range of The retail sector manu fac tured food prod ucts. This manufac turing was carried out largely by specialist organic food The retail trade is ulti mately the main outlet for organic pro ducers and their output was sold mainly on the foods in all Euro pean mar kets, but within the sector the domestic market. The one excep tion is the roles played by the major mul tiple super mar kets and Neth er lands, which plays a major role as a gateway by spe cialist organic out lets vary con sid erably from into EU mar kets for imports from out side the Union. country to country. Whereas in Den mark, France, The country is a major trader in organic foods and is Sweden, Switzer land and the United Kingdom the thought to re- export up to 80% of all imports of supermar kets domi nate consumer sales, in other primary produce (especially cereals, coffee and tea, coun tries, par ticu larly Ger many and the Neth er lands, fresh fruits and vege ta bles, herbs and spices, nuts, the spe cialist organic shops still hold the largest share. oil-seeds, pulses) and at least 50% of domes ti cally In all mar kets, espe cially since 1995, the main stream manu fac tured packaged foods to other European gro cery trade has been increasing its involve ment in mar kets. the sector, and most leading super market groups now carry a range of organic food and bev er ages. How ever, The sig nifi cance of the food industry as an end- user there are still sig nifi cant variations in the level of of organic raw mate rials is now growing fast because commit ment of the large mul ti ples to spreading the consumers, both local and in export mar kets, are organic mes sage and to stra te gi cally mar keting a full looking for an assort ment of proc essed foods similar organic assortment. Because of the pow erful posi tion to that avail able from con ven tional pro duc tion. There of these organi za tions in overall food retailing, their is increasing demand for con ven ience foods and policy has and will continue to have a strong direct ready meals. A key devel op ment in recent years has influ ence on overall sales growth in each indi vidual been the expanding involve ment of the mainstream market. gro cery trade in the sector and the growing number of main stream proc es sors which are adding organics to Organic food sales are domi nated in most European their fac tory produc tion lines. Many of the new mar kets by dairy prod ucts, fresh fruits and vege ta bles, regis tra tions of organic produc tion units are for cereals and cereal- based products. In a number of organic departments of con ven tional food mar kets, espe cially Aus tria, Den mark, the Neth er lands compa nies, rather than new specialist organic 60 CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS

busi nesses. Among multi na tionals Heinz stands out q Honey: mainly for consumer use (table honey); as a com mitted manu fac turer of organic food; others also for bakeries. which are already pro ducing organic product ranges are still hesi tant about their level of com mit ment. q Oil- seeds: mainly indus trial (marga rine, cooking oil, bread); some consumer snack foods. The degree of proc essing carried out by food manufac turers varies consid erably according to the q Processed fruits and vegetables: largely into fruit product group. The fol lowing list indicates major and vegetable juices, frozen and canned produce, uses: 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 Pulses: mainly consumer packing for the retail trade, but also for bread spreads and convenience q Dried fruits: mainly for the bakery trade, but also foods. Soy has numerous uses in virtually all food for muesli, consumer snacks and fruit yoghurts. sectors, e.g. drinks, desserts, tofu, vegetable burgers. q Edible nuts: mainly for industrial use in peanut Catering and institutional sector butter, other nut pastes, sauces, bakery products, snacks, muesli. The catering and institu tional use of organic foods has com menced in some Euro pean mar kets but has q Fresh fruits and vegetables: primarily for direct not developed extensively to date. In Den mark, consumer consumption. Germany, Italy, the Neth er lands and Sweden, some municipal and other public bodies have started to q Grains, cereals, rice: bread and bakery products, require offi cial insti tu tions like schools, hos pi tals, old muesli, rice cakes and cereal-based drinks; consumer people’s homes, univer si ties and admin is tra tive packs for retail sale; animal feed. offices to offer organic menus and organic coffee and tea in their canteens. Restau rants spe cial izing in q Herbs and spices: both retail and industrial organic foods are increasing in number. Some air line (soups, ready meals, etc.), with the latter segment com pa nies, e.g. Luf thansa and, in particular, growing in comparative importance. Swis sair, offer organic on- flight meals.

Distribution channels

Importers, processors, repackers Direct sales from for eign exporters to the central pur chasing units of retail chain stores are still rare but The most usual form of distri bu tion for imported are likely to be of growing interest to the mul ti ples as organic foods is through a special ized importer their organic vol umes and their uptake of new and/or a processor/packer, then to a wholesaler or organic prod ucts increases. There is a growing direct to the retail outlet, which makes the final sale to ten dency towards sourcing supplies more glob ally the consumer. How ever, the func tional distinc tions and devel oping part ner ships at all levels. between different types of distri bu tion channel are often not clear because many com pa nies under take Food manufacturers various levels of interim proc essing and repacking, according to the type of product and the end-use. In Food manu fac turers tend to obtain their imported each market and for each of the major product groups sup plies either direct from importers or from spe cial- a few special ized organic traders tend to domi nate ized (European) repackers/proces sors, which can imports and these com pa nies are the key (poten tial) pro vide requirements according to the manu fac- cus tomers for for eign exporters. They import on their turers’ speci fi ca tions and ensure con ti nuity of supply. own account and sell to packers, proc es sors and food For logis tical, food safety and envi ron mental rea sons manufac turers. they usu ally prefer to buy from domestic or nearby CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS 61

Euro pean sources. They do not often import direct In the above- mentioned coun tries super mar kets now from out side Europe, though it is likely that this will have a domi nant share in organic food sales, whereas increase, especially as more con ven tional food in mar kets like Germany and the Neth er lands spe - manu fac turers begin to set up organic product lines. cialist organic out lets have played a larger role. In recent years these shops have tended to con soli date in Retail trade order to meet increasing com pe ti tion from the major multi ples, and some spe cialist organic super mar kets The dis tri bu tion struc ture for organic foods has been have started to emerge. Some coun tries, which tra di- one of the key deter mi nants of the rate of prog ress of tion ally had a health food market seg ment, still sell a retail sales in indi vidual Euro pean mar kets. The clear certain pro por tion of organic food through this commit ment of mul tiple supermarket groups to channel, but the importance of these outlets has marketing a full organic assort ment has had a direct declined. One key reason is that they tend to have a influ ence on the rap idly rising growth rate of mar kets lim ited range of fresh produce, which is the main such as Aus tria, Den mark, Swit zer land and, recently, product group behind the cur rent faster growth rate in the United Kingdom and other markets. Product organic food sales. identi fi ca tion, strong mer chan dising, improved assortment and regular stocking have helped Euro pean consumers also buy organic foods direct super mar kets to draw many new organic cus tomers. from farms and at organic mar kets. A highly sig nifi cant devel op ment over recent years has been As the stores expand the variety of prod ucts stocked, the organic food box subscrip tion schemes run by people who tend to do a large part of their gro cery farm out lets and fruit and vege table traders in some shopping in a single outlet and who have only been Euro pean mar kets. Germany now has between 250 occa sional users of organic foods gradu ally increase and 300 schemes, pri marily for fresh fruits and their purchases. Moreover, the growing availability vege ta bles but some offer a larger choice of fruits and of supply and more efficient distri bu tion of larger bev er ages. Box schemes are also growing in quanti ties help to lower the price premiums for popu larity in the United Kingdom and the organic food to levels more accept able to con sumers. Neth er lands. Several systems for ordering via the Internet have also started oper ating.

Fair trade Table 3.2 European markets: percentage shares of retailers in organic food sales, 1997 Fair trade organi za tions have become an Multiple Specialist important dis tri bu tion channel for organic Market retailers shops a/ Other b/ products in Europe, par ticu larly in Ger many, Denmark 70 15 15 Swit zer land and the Neth er lands, but also in a number of other mar kets. The pri mary France 40 30 30 concern of the fair trade move ment is the Germany 25 45 20 social and eco nomic situa tion of farmers and Netherlands 20 75 5 pro ducers in the South rather than organic Sweden 90 5 5 agri cul ture as an ideal, but the two Switzerland 60 30 10 movements are tending to con verge, as both United Kingdom 65 17.5 17.5 con tribute to genuine sus tain ability. Fair trade dis tri bu tion is of great conse quence for a Source: Trade estimates. number of product groups from developing a/ Specialist organic food stores, Reform shops, natural/health food shops, dietetic shops, etc. countries, especially bananas, cocoa, coffee, b/ Direct farm sales, organic markets, box schemes, catering, etc. honey and tea. 62 CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS

Market access

Organic certification and food laws Each EU country is respon sible for appointing its own con trol organi za tion and has some flexi bility in Uni form stan dards for organic food produc tion and interpreting and enforcing the Regu la tion, which labelling throughout the European Union were only sets down minimum requirements for established with the promul ga tion of Council cer ti fi ca tion. It should be noted that the actual Regu la tion (EEC) 2092/91 of 24 June 1991. This stan dards required by cer ti fi ca tion organi za tions and regu la tion and sub se quent amend ments estab lish the importers can be much more strin gent than these main rules for organic produc tion, proc essing and minimum require ments. importing, including inspec tion, record keeping, labelling and mar keting. The use of the term Prod ucts from third (non-EU) coun tries can be sold as ‘organic’, or its equiva lent in different national organic only when it has been dem on strated that they lan guages, for label ling and adver tising food pro duce are from a country whose organic farming rules are is now lim ited in the European Union to prod ucts equiva lent to those of the Union as laid down in the obtained according to the princi ples of produc tion Regula tion. Certi fi ca tion must be carried out by a and the rules of proc essing defined in the Regu la tion. rec og nized inspec tion body, either a national authority In principle, organic prod ucts which have been in the country con cerned whose equiva lence has been imported into one EU country can be freely sold approved according to Regu la tion 2092/91 or by an throughout the Union, although label ling inspec tion EU inspecto rate which operates inter na tion ally, like schemes do still demand dif ferent stan dards in some Eco cert, SKAL, KRAV or BCS. indi vidual mar kets.

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! CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS 63

Exporters of all types of food and bev erage prod ucts market, these goods can be cir cu lated throughout the to European countries must also comply with the Union without further customs for mali ties. Some increasingly strict EU regu la tions on food safety imports are subject to quanti ta tive and other and hygiene, nutri tional infor ma tion, addi tives, pack- restrictions. Most prod ucts from the Asian, aging and label ling. Car ib bean and Pacific States asso ci ated with EU and from least devel oped coun tries are exempt from duty. Customs duties For other devel oping coun tries, GSP (Gener al ized System of Pref er ences) agreements may lower The external trade of all EU member coun tries is appli cable customs tar iffs. In accordance with EU gov erned by common regu la tions and trading commit ments under the WTO Agreement, EU’s agree ments. Once the required duties have been paid average tariff levels will be low ered consid erably on goods imported from out side EU into a spe cific EU over the next few years.

Sources of information

A major purpose of this study is to help fill the q Green Trade Net, an inter na tional data base on informa tion gap that exists in most devel oping organic prod ucts on the Internet, which provides countries which export or are plan ning to export market infor ma tion and links exporters in these organic prod ucts. With the aim of maxi mizing export coun tries with importers in Germany and else where. earn ings, it is abso lutely vital that the exporter obtains The data base is spon sored by Protrade/GTZ, regular updates on price and market trends. The Germany’s trade promo tion and entre pre neur ship fol lowing sug ges tions may be useful: programme. q Producers and exporters should pay regular Web site: http://www.green-tradenet.de visits (pref erably at least once a year) to the target E-mail: [email protected] market(s) to collect market and marketing infor ma- Tel: +49-69 811 228 tion through meet ings with trading part ners and visits Fax: +49-69 824 684 to retail shops and special ized trade fairs. q BioFoodNet, an information and news platform q Producers and exporters should establish and for the global, European and local organic markets on maintain contacts with other producers and exporters the Net. It is operated from Belgium and is sponsored to exchange information and discuss market by BioFoodNet PVBA. developments and trading conditions. Chemin des Maréchaux 35 q Producers and exporters should make maximum B-1300 Wavre-Limal use of existing sources of information, such as the Web site: http://www.biofood.net publications mentioned in the bibliography at the end E-mail: [email protected] of this study. Tel/Fax: +32-10 410 675

q Fresh-Marketplace is a new on-line database q Many importers, proces sors, food manu fac- that links potential buyers and sellers of fresh fruits turers, retail organiza tions and other compa nies and vegetables via the Internet. It was co-developed involved in the organic trade have Web sites that by the International Trade Centre UNCTAD/WTO provide useful infor ma tion. This is also true of a (ITC) and an organization in the United Kingdom. It number of inter na tional organiza tions, NGOs, aid covers mainly conventional but also organic fruits organi za tions, trade asso cia tions, certifi ca tion and vegetables. Coverage of products other than fresh bodies and other enti ties. As far as possible, rele vant fruits and vegetables may be included at a later stage. Web sites and e-mail addresses are provided in this For further information contact: study. Fresh-Marketplace The fol lowing sources of infor ma tion are par ticu larly International Trade Centre UNCTAD/WTO (ITC) useful: 54-56 rue de Montbrillant 64 CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS

CH-1202 Geneva some stage. For sub scrip tion and fur ther infor ma tion Switzerland contact: Web site: http://www.fresh-marketplace.com E-mail: [email protected] Market News Service Tel: +41-22 730 01 11 International Trade Centre UNCTAD/WTO (ITC) Fax: +41-22 733 44 39 54-56 rue de Montbrillant CH-1202 Geneva, Switzerland Market News Service (MNS), an ITC global Web page:http://www.intracen.org/services/ pro gramme, provides price and market infor ma tion mns/mns.htm on a number of food prod ucts, including fresh fruits E-mail: [email protected] and vege ta bles, bulk-packed fruit juices, spices and Tel: + 41-22 730 01 11 rice. MNS does not cur rently cover organic prod ucts, Fax: + 41-22 730 05 72; + 41-22 730 09 06 although selec tive cov erage may be intro duced at

Trade fairs

Organic producers and exporters in devel oping partner or under the spon sorship of an import countries should aim to visit food fairs when ever pro mo tion organi za tion. There are a number of trade possible. Increas ingly exporters also par tici pate as fairs rele vant for the organic trade, including the exhibitors, usu ally in coopera tion with a trading following:

Berlin, Germany Mainstream food show with a growing Tel: +49-6634-91929-0/-1 presence of organic products. January (annual) Grüne Woche (Green Week) Http://www.messe-berlin.de E-mail: [email protected] Nürnberg, Germany The world’s largest organic food show; Tel: +49-9171-96100 has many exhibitors from developing February (annual) Bio Fach Fax: +49-9171-4016 countries. Http://www.biofach.de E-mail: [email protected] Anaheim, Ca, United States The largest organic and natural food Tel: +1-303939-8440 show in the United States. March (annual) Natural Products, Expo West Fax: +1-303939-9559 Http://www.naturalproductexpo.com E-mail: [email protected] Brighton, United Kingdom The United Kingdom’s largest organic Tel: +44-1903-879077 and natural food show. April (annual) Natural Products, Expo East Fax: +44-1903-879052 Http://www.naturalproducts.co.uk E-mail: [email protected] Amsterdam, Netherlands Tel: +44-1273-384282 (UK) 31 May - 2 June 2000 Natural Products, Expo Europe Fax: +44-1273-384285 (UK) E-mail: [email protected] Geneva, Switzerland Organized by Vitafoods International Vitafoods International, Conference Tel: +44-1872-263682 (UK) Ltd, Truro, United Kingdom. April (annual) and Trade Exhibition Http://www.vitafoods.co.uk. Natural medicines and foods, including E-mail: [email protected] organic products. Barcelona, Spain The Barcelona version of Spain’s Tel: +34-93-5801118 largest organic and natural food show, May (annual) Bio Cultura Fax: +34-93-5801120 created by Vida Sana. E-mail: [email protected] Namur, Belgium Created by Nature et Progrès; Tel: +32-81 303690 Belgium’s largest organic food show. September (annual) Valeriane Fax: +32-81 310306 Http://www.euronature.com E-mail: [email protected] CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS 65

Bologna, Italy Traditionally Italy’s largest organic Tel: +39-02 8645 1078 food show. September (annual) SANA Fax: +39-02 8645 3506 Http://www.sana.it E-mail: [email protected] Baltimore, MA, United States The East Coast version of the Anaheim September (annual) Natural Products Tel: +1-303939-8440/-9559 Expo show. East Http://www.naturalproductexpo.com SIAL Paris, France A large European mainstream food October (biennial, to Tel: +33-149685499/-147313782 show, alternating with Anuga in be held next in 2000) SIAL Http://www.sial.fr Cologne, Germany; with a growing E-mail: [email protected] organic presence. Cologne, Germany A large European mainstream food October (biennial, to Tel: +49-221-821-0/-2574, show, alternating with SIAL Paris. Anuga be held next in 1999) Http://www.koelnmesse.de E-mail: [email protected] Netherlands Mainstream event with strong organic Info: Miller Freemann Bv presence rotating netween Paris (Biennial) Food-Ingredients-Europe-Exhibition Tel: +31-346 559444 (September 1999), Frankfurt Fax: +31-346 573811 (November 2000) and London (2001). Http://www.infbv.com/food E-mail: [email protected] Paris France’s traditional organic food show, November (annual) Marjolaine Tel: +33-490310042 created by Nature & Progrès. Fax: +33-490324391 Madrid, Spain The Madrid version of Spain’s largest Tel: +34-3-5801118 organic and natural food show, created November (annual) Bio Cultura Fax: +34-3-5801120 by Vida Sana. E-mail: [email protected]

FAO’s contribution to organic agriculture

In response to a request made by its gov erning bodies between coun tries. FAO will cover the whole pro duc- in January 1999, FAO is devel oping an organization- tion, storing, han dling, proc essing and mar keting wide and cross- sectoral programme in organic agri - chain. cul ture. This programme will be under taken in col - labo ra tion with public and pri vate insti tu tions such as In order to obtain the basic intelligence needed to national and inter na tional agri cul tural research cen - understand fully the magnitude of organic production tres, national pro grammes, con sumer asso cia tions and trade, statistical data is required on the number of and inter na tional organiza tions such as ITC and farmers who have adopted organic management IFOAM. techniques, and on the volumes of goods produced and traded. Steps are being taken to specify data Countries are requesting advice and assistance for collection methodologies and to amend international informed decision- making and policy analysis, as classification systems. well as technical assistance in research, exten sion work and in tap ping market oppor tu ni ties. Countries seek assistance in deciphering the multitude of rules various traders expect their suppliers to follow. FAO intends to help devel oping countries to access Increasing international trade in organic products has inter na tional mar kets by pro viding technical infor - placed FAO at the forefront of efforts to achieve ma tion on produc tion require ments, trade infor ma- greater harmony in organic standards. The Codex tion on market opportu ni ties, and assistance in Committee on Food Labelling has prepared capacity building. Spe cific assis tance will be given Guidelines on the Production, Processing, Marketing for the devel op ment of appropriate national leg is la- and Labelling of Organically Produced Foods which tion, cer ti fi ca tion capa bili ties, research and exten sion were adopted by the FAO/WHO Codex Alimentarius facili ties, and to pro mote the exchange of expe ri ences Commission in July 1999. 66 CHAPTER 3 – OVERVIEW OF WORLD TRADE AND MARKET CHARACTERISTICS

FAO is prepared to respond to requests from member For further information contact: countries for assistance in developing regional organic standards that take into account local Food and Agriculture Organization production needs as well as international market of the United Nations demands. Via delle Terme di Caracalla 00100 Rome Italy The highly local nature of organic production means Web site: http://www.fao.org that community-based expertise and organizational Tel: +3906 57051 capacity is needed. FAO could support, upon request, Fax: +3906 57053152 the establishment of local certification organizations Contact: Secretary, Inter-Departmental Working in developing countries. Group on Organic Agriculture of FAO Chapter 4

WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Introduction

This chapter gives a worldwide overview of organi za tions, traders and others, which should not be produc tion and trade in organic food prod ucts by interpreted as an endorse ment of any kind. The region and by country. Spe cial atten tion has been paid men tion is merely an indica tion of the infor ma tion to devel oping coun tries and the dis cus sion focuses on avail able within the time frame for the study and the key issues of produc tion, trade, cer ti fi ca tion and methods used for col lecting data. The country export poten tial. sec tions there fore, while they give an insight into national organic food sec tors, can by no means be As has been men tioned in an earlier chapter, this regarded as pre senting a com plete pic ture. study does not concentrate on a spe cific product or product group but on a niche in the overall food All prod ucts referred to as being pro duced or traded in sector. While this niche encom passes the whole various countries are organic prod ucts cer ti fied to spec trum of food prod ucts, there is little or no offi cial rec og nized standards. Goods that could probably be statis tical infor ma tion available. The descrip tion rightly called organic but have not received therefore of produc tion and trade is pri marily certi fi ca tion are excluded from the study, although quali ta tive. It is based on what ever data were they are sometimes alluded to. Simi larly, prod ucts avail able during 1998 when the study was car ried out mar keted as ‘organic’, ‘biolog ical’, ‘ecolog ical’, etc. and on interviews with importers, retailers, but which are cer ti fied to stan dards that do not cer ti fi ca tion and accredi ta tion agencies, and trade con form to inter na tional stan dards (the latter including pro mo tion organi za tions [such as Pro trade/GTZ, the the EU Regu la tion on organic crop pro duc tion and the Centre for the Pro mo tion of Imports from devel oping IFOAM stan dards for animal pro duc tion) fall beyond countries (CBI) and Office suisse d’ex pan sion the scope of this study. com mer ciale (OSEC)]. The diffi culty of making esti mates of produc tion vol umes and market sizes It should be added that, wher ever they are pro duced, was exacer bated by the sig nifi cant pro por tion of organic prod ucts other than food and bev er ages (such organic produce sold direct by producers to as wood and wood prod ucts, wool, cotton and cotton con sumers, the pro lif era tion of organic schemes, and yarn) are men tioned in the country sec tions, basi cally the differing cer ti fi ca tion and label ling prac tices all to indi cate devel op ments in other seg ments that may over the world. have an impact, how ever indi rect, on the food and bev erage sector. Advances in cer ti fi ca tion, for It must be empha sized that the amount and detail of example, in other sec tors, would facilitate similar infor ma tion given on each country in this chapter and ini tia tives in regard to food. The reader should also in the country chap ters do not reflect the size of their note that the list ings of items by product cate gory are respective sec tors, but simply indi cate that for some merely illustra tive of the items being pro duced in countries data have been more easily avail able than indi vidual countries. Fur ther more, the geo graphical for others. The same applies to the men tion of 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 towards the con tinued col lec tion and dis semi na tion not always) based on con ti nental regions. 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 (Production, development) African coun tries, but gen er ally on a very small scale. The absence of an organ ized national market and Benin local distri bu tion system is a major hin drance. Organic prod ucts are usually sold only in impro vised Benin pro duces some quanti ties of dried fruits and farm ers’ mar kets, more often than not with no price nuts, oil- seeds like palm, coconut and sesame, and pre miums. Access to technical assis tance and cotton. reason able credit remains diffi cult. Nonethe less, numerous farmers’ and women’s organiza tions and Useful addresses NGOs practice organic farming to pro mote Association ORUKUTUKU self- sufficiency in food in their areas, to cur tail land BP 80, Dassa-Zoumé ero sion, to recover land in deser ti fied areas, or for Tel/Fax: +229-324300 export. Sometimes, bene fiting from new insights, (Production, development) they return to long- abandoned tradi tional prac tices, similar in many ways to organic farming methods PADEC - Kandi (see section on Burkina Faso). Projet d’appui au développement dans la circonscription urbaine de Kandi BP 90, Kandi In many coun tries, cer ti fi ca tion, with its cost Tel: +229-630013 impli ca tions, does not yet make much eco nomic (Development) sense. How ever, Egypt is already an impor tant pro ducer and exporter of organic prod ucts as are Mada gascar, some of the Maghreb coun tries, and Burkina Faso South Africa. Exotic fruits, herbs and spices, nuts, This was the first African country to host the bien nial essen tial oils, oil-seeds, vegetables and cotton are IFOAM Inter na tional Scien tific Con fer ence and some of the most impor tant items pro duced General Assembly (in 1989). At that con fer ence the organically. Dec la ra tion of Oua ga dougou was launched: it states that organic agri cul ture in devel oping coun tries is not Con trol and cer ti fi ca tion are mostly carried out by a luxury but a precon di tion for attaining food for eign enti ties although local struc tures are being set self-sufficiency. Burkina Faso is member of the up in a number of coun tries. IFOAM African francophone group (see sec tion on Senegal). Algeria The country produces some fresh fruit (mango), Algeria has the begin nings of an organic agri cul tural millet, oil crops (sesame seed), pulses, sorghum, sector. It pro duces dried fruit (dates) and exports vege ta bles and other prod ucts for domestic some of this, mainly to the Euro pean Union. consump tion. It engages in a small export trade, mainly in sesame seed, pre domi nantly to Bel gium Useful address and France. ECO MRK Institut des sciences de la nature de l’Université de The redis covery and reu tili za tion of the tra di tional Bejaia zai method in the Sahel area, aban doned for about DZ-Tizi Ouzou 15000 Tel: +213-5214334 50 years, is making it pos sible to regain deser ti fied Fax: +213-5214332 land. The method consists of hacking holes of a E-mail: [email protected] depth and width of 30 cen ti me tres into the CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 69 stone- hard lat erite soil. Com posted manure and then Burundi some millet or sorghum seed and some pulses are sown into the holes. Stone dikes 10-20 cen ti me tres Burundi pro duces fresh fruits such as avo ca dos, high are built, forming parcels and preventing rain bananas, man goes and pine ap ples. water (when it comes) from flowing away. Hedges are planted next to the dikes, strengthening them. Cameroon Ani mals are fenced in or guarded so that they do not eat the young plants and hedges. The soil recu per ates Cameroon pro duces and exports some fresh fruits suffi ciently after three harvests to be ploughed (pine ap ples, papayas, bananas) and vege ta bles. nor mally again. Useful addresses In this country, where close to half of the popu la tion CAIPE lives below the threshold of pov erty, distri bu tion is (Centre d’appui initiatives paysannes d’Ebolowa) rudi men tary. A number of NGOs and farmers’ and BP 132, RFC-Ebolowa women’s asso cia tions (such as SSSSSS – the Six S) Tel: +237-283618 are active in organic agricul ture in the Sahel area. Fax: +237-281034 Their goal is not only to help the popu la tion attain (Production, trade) food self-sufficiency but also to stop deser ti fi ca tion Export Agro sarl and to regain land both in the north, where the Sahel BP 4524, Douala desert advances, and in the south where defor es ta tion Tel: +237-401024 causes heavy ero sion. The Ligue des con som ma teurs Fax: +237-400613 in Oua ga dougou promotes organic agricul ture and E-mail: [email protected] defends consum ers’ rights vis-à-vis the authori ties (Producer, exporter) and eco nomic opera tors. SAP (Sustainable Agroforestry Promoters) Useful addresses PO Box 514, RFC-Bamenda ABC Fax: +237-362111 (Agri Bio Conseil) E-mail: [email protected] BP 2545, Bobo-Dioulasso (Production, consultancy) Fax: +226-970850 (Development, consultancy) Cape Verde AVAPAS (Association agroécologistes au Sahel) An export- oriented banana proj ect is in an advanced Aned La Baoogo stage of devel op ment. PO Box 8095, Ouagadougou 04 Tel: +226-308499 Comoros Fax: +226-310618 (Producer, processor) Organic agricul ture is just begin ning on this INADES archi pelago in the Indian Ocean. Some quan ti ties of (Institut africain pour le développement spices (e.g. vanilla) are being pro duced. économique et social) 01 BP 1022, Ouagadougou 01 Tel: +226-302070; 340341 Côte d’Ivoire Fax: +226-340519 E-mail: [email protected] The country pro duces some cocoa and coffee. It exports (Production, development) some quan ti ties of cocoa to the Euro pean Union.

Ligue des consommateurs du Burkina Faso Useful address BP 6936, Ouagadougou 1 Tel/Fax: +226-315570 IACO E-mail: [email protected] (Inter-African Coffee Organization) (Production, development, and safeguarding BP V 210, Abidjan consumer interests) Tel: +225-216131; 216185 (Production, development) 70 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

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 culti va tion stan dards and regu la tions. Both Useful address COAE and EBDA coop erate with uni ver si ties and CANAEL research insti tu tions for the further devel op ment of (Comité de l’animation d’Entre Lubau et Ntumina) Egyp tian stan dards for organic farming. The BP 39, Eglise Kimbaguiste Swiss-German body IMO supervises the coun try’s Ave. Bongolo 44, Kinshasa inspec tion sys tems.

Useful addresses Egypt COAE Production (Centre for Organic Agriculture in Egypt) Faculty of Agriculture, Ain Shams University The Sekem group ini ti ated and gave a strong impetus PO Box 1535, Alf Maskan , ET-11757 Cairo Tel/Fax: +20-2-2818886 to organic farming in Egypt in 1978. It is involved E-mail: sekem@sekem with COAE, the Centre for Organic Agricul ture in (Production, development) Egypt, established in 1990 to pro mote organic farming and to advise and assist organic farmers. EBDA (Egyptian Biodynamic Association) In 1998, 150 farms cov ering 5,000 acres were in PO Box 2834, El Horreya, ET-Heliopolis, Cairo Tel: +20-2-2807994 opera tion, largely fol lowing bio dy namic standards. Fax: +20-2-2806959 Crops include fruits, both fresh and dried (apri cots, E-mail: [email protected] bananas, citrus, dates, grapes, mangoes); grains (Development) (barley, rice, wheat); herbs ( basil, dill, paprika, spear- ECOA mint); leg umes, dried (peas, beans); medicinal plants; (Egyptian Centre of Organic Agriculture) roots and tubers (potatoes); vegeta bles (cucum bers, 18 Mena Street, Dokki, ET-Giza eggplants, garlic, onions, squash, tomatoes); spices Tel/Fax: +20-202-3618717 (caraway, cori ander, paprika, pepper); and tea. Live- (Inspection) stock farming also takes place (dairy cattle, sheep; Sekem pigeons), as does some api cul ture. Cotton is also PO Box 2834, El Horreya, ET-Heliopolis produced. Tel: +20-22807994 Fax: +20-22806959 Egypt is member of the AgriBioMedi ter raneo (see E-mail: [email protected] Italy) and of the IFOAM African anglo phone group (Producer, processor, wholesaler) (see Kenya). UGEOBA (Union of Growers and Exporters of Organic and Processing and trade Biodynamic Agriculture) 3 Cumbeese Street, ET-12311 Dokki-Giza, Cairo Many prod ucts are proc essed through the Sekem Tel: +20-2-3484252 group. On the domestic market, these are sold as food Fax: +20-2-3601028 and phyto- pharmaceuticals to super mar kets, spe cial- (Production, development) ized food shops and phar ma cies. Exports are con sid- er able and are rising. Agrofood Organic Egypt in Ethiopia Cairo is an exporter of herbs, spices and vege ta bles. Ethiopia is an important coffee-producing country. The main export crops are fresh fruits and vege ta bles An ITC proj ect is assessing the fea si bility of organic (more than 6,000 tons yearly), herbs and medicinal farming and of estab lishing a cer ti fi ca tion system in plants (around 200 tons yearly), and cotton. The main the country. Ethiopia is member of the IFOAM mar kets are the Euro pean Union and Swit zer land African anglo phone group (see Kenya). CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 71

The major varieties of coffee include yer gacheffe, Useful addresses harrar and sidamo, which may be exported in organic Ghana Export Promotion Council form in the future. PO Box 146, Accra Tel: +233-21-228813 Useful address Fax: +233-21-668263

Coffee & Tea Authority GOAN PO Box 3222 (Ghana Organic Agriculture Network) Addis Ababa PO Box 6342, GH-Kumasi Tel: +251-1518088 Tel: +233-51-20954 Fax: +251-1517293 Fax: +233-51-25306 (Production, consultancy) (Production, development)

Gabon TOFA (Traditional Organic Farmers’ Association) Gabon is taking its first steps towards estab lishing an PO Box 71, GH-Mampong Akrofoso organic sector. Some quan ti ties of organic cocoa are Fax: +233-21-777098 now being pro duced. (Production, consulting)

Gambia Guinea

The Gam bia’s nas cent organic sector pro duces some Organic agri cul ture in Guinea is at an early stage. oil crops (e.g. sesame seed). Useful address Useful address CePATA (Centre de promotion agricole et de technologies Farato Farms adaptées) PO Box 142, 79 Hagan Street, Banjul PO Box 530, Conakry Tel/Fax: +220-227869; +220-226148 Tel/Fax: +224-443291 (Production, development) (Production, processing) Ghana Kenya Ghana pro duces cocoa; fruits, fresh (bananas, papayas, man goes, pine ap ples); nuts (pea nuts) and vege ta bles, Production and trade fresh. It has many wild tropical fruits, herbs, nuts and vege ta bles, whose potential for culti va tion and Various Kenyan NGOs actively pro mote organic mar keting has not yet been explored, but which could agricul ture by estab lishing demon stra tion farms for broaden the organic product range on the world small farmers and exten sion workers. Cer ti fied market. The Tra di tional Organic Farm ers’ Asso cia tion produc tion for export is in its infancy; the (TOFA) and various other groups and NGOs pro mote cer ti fi ca tion of maca damia nuts (by a German entity) tra di tional organic farming sys tems. started in 1996. Organic vege ta bles, dried leg umes (beans), tea and cotton are also pro duced. Organic farming in Ghana has good potential for further devel op ment. As it is, the use of chemical The Kenya Insti tute of Organic Farming (KIOF) inputs is restricted to the large com mer cial farms and under takes activi ties to create aware ness of organic market gar dens around the cities, which account for farming and carries out training courses on organic only a small pro por tion of overall food pro duc tion. farming techniques. Since 1993, KIOF has been working on a research proj ect to assess the on- farm With two weekly open-air mar kets in Accra, the potential of organic farming tech niques under national market is growing. The export trade with the dif ferent agro- ecological and socio-economic Euro pean Union is prom ising. condi tions.

There is no cer ti fi ca tion body in the country and Certi fied maca damia nuts are exported, though no small holders depend on spon sored inter na tional figures were made avail able for this study. It is inspec tion and cer ti fi ca tion. Ghana is member of the possible to find organic prod ucts locally, but the IFOAM African anglo phone group (see Kenya). market is very small. 72 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Kenya is member of IFOAM’s anglo phone African Fax: +254-2-521001 group, which has its seat at KIOF. E-mail: [email protected] (Production, processing)

Certification KIOF (Kenya Institute of Organic Farming) There are no national stan dards for organic farming. PO Box 34972, Nairobi How ever, the Kenya Organic Farmers’ Associa tion, Tel: +254-2-583194; +254-2-583383 which is in the process of being formed, plans to draw Fax: +254-2-583370 up organic stan dards. In coop era tion with the United E-mail: [email protected] King dom’s The Soil Asso cia tion, the Asso cia tion for SACDP Better Land Husbandry (ABLH) has started (Sustainable Agriculture Community Development developing standards, which will be based on the Programme) stan dards of The Soil Asso cia tion but adapted to PO Box 44752, Nairobi con di tions in Kenya. Fax: +254-2-331276; +254-2-225725 (Production, development) Potential Madagascar There is no doubt that Kenya has good possi bili ties for the further produc tion and trade in organic Production and certification prod ucts. It is believed that it has good con di tions for pro ducing sesame seed, and fresh and dried fruits, for The controlled produc tion of organic food prod ucts which reason a trade pro mo tion programme was in Mada gascar began in 1990 in col labo ra tion with ini ti ated in 1997. It also has favour able con di tions for the German company Rapunzel and the French cotton produc tion and a related programme was com pany Man timex. The first cer ti fied prod ucts were started in 1997. oils (palm oil, coconut oil), cashew nuts and spices (vanilla). Today several producers are cer ti fied by Kenya has an excel lent supply base and an existing Eco cert. export infrastruc ture (it is already a signifi cant exporter of con ven tion ally pro duced fruits and The product groups currently pro duced (with some vege ta bles, flowers and other prod ucts). Fur ther more, exam ples of spe cific items) are listed below: there seems to be great interest in organic agri cul ture among farmers, exten sion agents, NGOs and other q Cocoa; asso cia tions. q Coffee;

Several activi ties are already being undertaken, q Essential oils; including the training of stu dents and research. Some q Fruits, dried (orange, papaya, pineapple, mango); col labo ra tion will take place with a GTZ agro-forestry proj ect, covering, for example, the q Fruits, fresh (apples, passion fruit, litchis, planting of mango trees. gooseberries); q Fruits, processed (fruit juices and pulp of Useful addresses pineapple, mango, papaya and banana); Export Promotion Council st th q Herbs and spices (vanilla, clove, allspice, Anniversary Towers 1 & 16 Floors pepper, nutmeg, mace, cinnamon, ginger, chilli); University Way PO Box 40247 q Honey; Nairobi Tel: +254-2-228 534 q Oil crops (coconut) and oils (coconut, pine, Fax: +254-2-218 013, +254-2-228539 palm, geranium, lemon grass, green pepper);

ITFSP q Sugar cane, sugar cane molasses and syrup; (Integration of Tree Crops into Farming) ICRAF House, UN Avenue q Vegetables, fresh (green beans). c/o GTZ Office PO Box 47051, Gigiri Some new proc essing activi ties are starting, Tel: +254-2-522887 including a joint ven ture with a French com pany. CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 73

The producers include both small to medium- sized Malawi’s output includes bam bara nut, beans of family-run farms and larger plan ta tions. Some of the various kinds, cal en dula, cay enne pepper, chamo mile, latter are State- owned, pro ducing coco nuts for instance; chilli, cori ander seed, cumin, dill, echi nacea and others are privately owned and produce palm oil, for annato, fennel, ground nuts, hibiscus, lav ender, lemon example. Around 1,000 farm fami lies are thought to be grass, lemon ver bena, melissa, pigeon pea, rose mary, involved in the pro duc tion of organic prod ucts. sesame seed, sunflower seed and sugar cane. These products are exported by two of SHO GA’s larger Trade mem bers (see above). Their main market is Ger many; the United Kingdom and the United States are also Organic prod ucts are pro duced mainly for export; export des ti na tions. Some prod ucts have likewise been Ger many is a major market. The failing infra struc ture sent to Zimbabwe. The export trade is organ ized has impaired Madagas car’s export potential through SHOGA. con sid erably. Some exporters and the prod ucts they handle are listed below: The cold pressing of oils is sched uled to start in 2000, and a still for essen tial oils is planned. Exporter Location Product Agrico Antananarivo Fruits and essential oils There seems to be a small domestic market for Agropole Tamatava Edible oils cer ti fied and non- certified organic prod ucts. Organic Expam- Antananarivo Pharmaceuticals honey, for instance, can be found in one local store. Homeopharma La Bouffe Antananarivo Exotic fruits and spices Eco cert takes care of inspec tion and certi fi ca tion. Millot Antananarivo Spices, cacao and coffee There are no local inspec tion or cer ti fi ca tion bodies, Pabiom Antsiranana Vanilla and essential oils and no offi cial stan dards for organic farming. Phael Flor Antananarivo Essential oils Satrana Taomasina Rum Potential

PROMABIO, a company in Anta na na rivo, Malawi has good con di tions for the pro duc tion of a coor di nates the activi ties of organic exporters. wide range of tropical, sub tropical and cer tain tem perate zone crops. Useful address PROMABIO In addition, SHOGA can pro vide technical advice Lot II N 184 Ter Besarety, RM-Antananarivo and assis tance on organic farming, market access, Tel: +261-20-2242499 Fax: +261-20-2226921 and arranging and pre paring for inspec tion and E-mail: [email protected] cer ti fi ca tion. Some mem bers have consid er able (Exporting) expe ri ence and exper tise in the produc tion, inspec tion and export of organic prod ucts. Malawi Malawi therefore has a good potential for the further develop ment of organic produc tion and trade, Production, trade and certification including that of new products, e.g. organic food additives and organic pesticides. Shire Highlands Organic Growers Asso cia tion (SHOGA) is the main promoter of organic Useful addresses pro duc tion and trade in Malawi. Founded in 1995, it Lipangwe Organic Manure Demonstration Farm has 13 active mem bers and a number of small- farmer PO Box 26, Matale, Ntcheu associate members. These mem bers are pri marily Fax: +265-671427 engaged in the produc tion of organic herbs and (Production, development) spices. The bulk of pro duc tion is car ried out at two of the larger farms, on cer ti fied areas of 30 and 50 MEPC hec tares respec tively. Herb proc essing and pack aging (Malawi Export Promotion Council) facili ties for export have been set up. Delamere House, Victoria Avenue PO Box 1299, Blantyre

Several other small independent organiza tions and SHOGA NGOs are inter ested in pro moting organic farming in (Shire Highlands Organic Growers Association) the country. PO Box 930, Blantyre 74 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Tel: +265-671355/671182 Per pignan for distri bu tion throughout EU. A major Fax: +265-671427 brand is ECOFARM, marketed, among others, by the (Production, processing, trade) growers Kohar sa in Taroudant.

Mali Certi fi ca tion is carried out by the German leg of Eco cert, Eco con trol GmbH. Organic agri cul ture in Mali has just begun. Useful address Useful address Magrebio GRAT 5, Route Inara (Groupe de recherches et d’applications techniques) Hay Lelbahja BP 2502, Bamako Tel: +212-4492104 Tel/Fax: +223-224341 Fax: +212-4492101 (Production, development) (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. Some nuts are being pro duced. Cashew nuts are an Among the other prod ucts are fresh fruits (litchis, example. pineap ples, man goes) and spices (chilli paste, pepper). Useful address AMRU In 1995, 650 tons, mainly of cane sugar, were (National Asso cia tion for Rural Women exported from three farms with a total area of around Develop ment) 175 hec tares. The area has since been reduced owing PO Box 1892, Maputo to lower yields and the higher costs of weed con trol. Tel: +258-1-422809 The United Kingdom and France are the main Fax: +258-1-422893 (Pro duc tion, devel op ment) cus tomers.

Mauri tius is member of IFOAM’s anglophone Nigeria African group (see Kenya). Organic agri cul ture in Nigeria is at its ini tial stages. Useful address IOAEN Useful addresses (Indian Ocean Agro-Ecology Network) Regfoss Green Commission 11, Royal Street, Mont Ida 7, Murtala Mohammed Way Tel/Fax: +230-4165080 Jos, PO Box 531, WAN-Jos Plateau State E-mail: [email protected] Tel: +234-73-454668 (Control, development) Fax: +234-73-55202 (Production, development) Morocco Village Pioneer Project Pro duc tion includes fresh fruits (citrus, which has PO Box 1622, Akure, Ondo State, WAN-Nigeria become an impor tant export to the Euro pean Union); (Production, development) fresh vegeta bles (such as tomatoes); dried fruits (dates); olives; dried leg umes; spices and herbs (basil, Senegal mar joram). In Senegal, several NGOs pro mote organic farming There is no formal domestic market as yet. All prac tices among smallholders. Self-sufficiency in pro duce is exported to the European Union. In the food is the pri mary goal and exporting the sec on dary past this was done through Bio-Maroc, an objective. Fruits (man goes) and vegeta bles are organiza tion that is no longer in existence. among the main prod ucts with export poten tial. Ini- Nowa days, the trade is han dled by the indi vidual tia tives are being taken to set up a national cer ti fi ca- growers who sell mainly to French importers in tion body. CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 75

Senegal has good poten tial for the pro duc tion of fresh imports from Zim babwe. Borneo Fruit in Lady brand fruits like papayas and melons, dried fruits, cashew and Kirl ington Organic Farm in Ficksburg are nuts and cotton. prominent fruit exporters, Mead owsweet Farm in Win terton exports herbs, spices and herbal tea to the Useful addresses European Union (e.g. to Denmark, France, Sweden Agrecol Afrique and the United Kingdom). BP 234, SN-Mbour Tel: +221-9563215 Among the other pro ducers are Organic Herbs Farms Fax: +221-9564202 (Cape Town) and Coetzee and Coetzee in Kuils rivier. E-mail: [email protected] The main whole saler is Uni foods in Durban. (Production, development)

ASPAB The local South African market is developing. Organic (Association sénégalaise pour la promotion de foods are sold in a number of spe cial ized stores. l’agriculture biologique) Supermarket chains such as Shoprite Checkers, Pick BP 412, SN-Thiès n’Pay, Woolworths and Hyperame sell some organic Tel: +221-511237 foods, mainly in their health food sec tions. (Production, certification) Particularly around Johannesburg, much of the PRONAT ENDA 54 rue de Carnot, BP 3370, SN-Dakar production and local trade is coordinated by Tel: +221-225565, Wensleydale Farms. They supply a wide range of Fax: +221-8222695 fruits, berries and vegetables to some supermarkets, E-mail: [email protected] e.g. Pick n’ Pay, as well as direct to private customers. (Production, development) Products are labelled ‘organically grown’. In the same area, there is a weekly open market for organic Sierra Leone produce.

Sierra Leone has taken its first steps towards Certification devel oping an organic sector. There is no legislation on organic production and Useful addresses labelling. FOE (Friends of the Earth in Sierra Leone) Several foreign certifiers, including The Soil PM Bag 950, 33 Robert Street, WAL-Freetown Association, Ecocert and SKAL, are active in the Tel: +232-22-226511 country. Discussions are also taking place on the Fax: +232-22-224439 setting up of a local certification programme. (Production, development) Useful addresses KEIOF (Kenema Institute of Organic Farming) BDAASA 9 Hangha Road, PO Box 165, Kenema (Bio Dynamic Agricultural Association of South Fax: +232-22-229076 Africa) (Production, development) PO Box 115, ZA-Paulshof 2056, Sandton Tel: +27-11-8031688 Fax: +27-11-8037191 South Africa E-mail: [email protected] (Production, development) Production and trade OAASA Over the last few years South Africa has gained (Organic Agricultural Association of South Africa) impor tance as a producer and exporter of organic Box 1975, ZA-Kelvin 2054 Tel/Fax: +27-11-7062672 prod ucts. Its output includes fresh fruits (man goes, E-mail: [email protected] avocados, litchis), vegetables, herbs and spices, and (Control, certification) cane sugar. There are about 35 organic growers in all. Organic Herb Farms South Africa exports and imports organic products. 601 Costa Brava, 299 Beach Road For instance, it exports to the European Union and PO Box 4336, Cape Town 76 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Tel: +27-21-4397816 farms and one company were cer ti fied to EU Fax: +27-21-4394732 stan dards. They included one tea plan ta tion of 230 (Production and trade) hec tares, a pri vate farm of 350 hec tares, a farm of 40 hectares producing essential oils, and an enterprise Wensleydale Farms Bryanston 2021 that pro duces spices on around 300 hec tares on the PO Box 71085 basis of land leases and con tracts with small holders. Tel: +27-12-6500064 These four enter prises have so far exported black tea, Fax: +27-12-6500207 hibiscus tea, essen tial oils and spices. Since 1995, an E-mail: [email protected] increasing number of farmers have started pro ducing essen tial oils and spices. Some packing of spices and Western Cape Organic Agricultural Society cracking of cashew nuts take place. PO Box 611, Stellenbosch Tel/Fax: +27-21-8548904; +27-083-4614567 A cer tain amount of cotton is pro duced under the E-mail: [email protected] aus pices of a tex tile com pany that has con tracts with small-scale cotton producers. The company also Sudan organ izes cer ti fi ca tion, proc essing into cotton yarn and exporting. The yarn is exported to Swit zer land. Organic agri cul ture in the Sudan has just begun. Its output includes fresh fruits (citrus), oil crops ( sesame One com pany, Kimango Farm Enterprises Ltd (in seed), grains and poultry prod ucts. Moro goro) exports herbs and spices, fresh and dried fruits (papayas, man goes, guavas), herbal tea and other prod ucts. Zanz-Germ Enterprises (Zanzibar) Tanzania, United Republic of exports a wide variety of herbs and spices. The Production, trade, certification Zan zibar State Trading Cor po ra tion, also in Zan zibar, exports essen tial oils. Some of this coun try’s output by product group are listed below; some exam ples of spe cific prod ucts are Sev eral NGOs pro mote organic cul ti va tion prac tices also given. in the country by training small holders and exten sion workers. The Tan za nian Society of Organic Farming (KIHATA), an umbrella organiza tion of groups q Cotton; working on sus tain able agri cul ture, has been q Essential oils (lemon grass); estab lished. q Fruits, dried (banana, pineapple, mango, papaya); 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 q Fruits, fresh (citrus, papaya, guava, mango); local inspector in Zan zibar, and inspec tors from Kenya q Herbs and spices (cinnamon, ginger, vanilla, and Zambia are also used. The United Republic of chilli, pepper, nutmeg, cardamom, clove, curry, Tan zania has no offi cial organic farming stan dards. lemon grass); Potential q Honey; q Nuts (peanuts, cashew nuts); The country appears to have good potential for organic pro duc tion. How ever, farmers need training q Oil-seeds (sunflower) and oils (palm oil, and there are sev eral hur dles to be over come in order sunflower oil); to increase exports, especially in rela tion to infra struc ture and product quality. q Tea (black tea, hibiscus tea); q Vegetables, fresh (peas); Useful addresses q Vegetables, processed (garlic and onion Board of External Trade powder). Trade Fair Grounds PO Box 5402, Dar es Salaam Tel: +255-51-851706 In all, more than 4,000 hec tares have been cer ti fied Fax: +255-5-851700 organic and this area is increasing. In 1993, three E-mail: [email protected] CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 77

KIHATA Useful address (Chama Cha Kilimo Hai Tanzania) PO Box 208 ITTA c/o Kilimo Cha Mseto, Peramiho (Institut tunisien de technologie appliquée) Fax: +255-6352917 BP 61, 4042 Chatt Mariem (Production, development) Tel/Fax: +216-3-210188; +216-1-276656 (Production, development) Kimanga Farm Enterprises Ltd PO Box 642, Morogoro Fax: +255-56-4714 Uganda

Swedish Export Promotion of Organic Products Production and trade from Africa (EPOPA) Programme PO Box 71393, Dar es Salaam Uganda pro duces fresh fruits and vegeta bles Tel: +255-51-131205; +255-51-118239 (pine ap ples, pas sion fruit, bananas, avo cados), roots Fax: +255-51-131205 E-mail: [email protected] and tubers (sweet pota toes), dried fruits (pine apple), oil-seeds (sesame, sunflower), dried leg umes (soy Zanz-Germ Enterprises Ltd beans), coffee, cocoa, herbs and spices (vanilla, PO Box 3369, Zanzibar ginger, chilli), and honey. Tel: +255-811-326440 Fax: +255-811-321072 More than 30 organi za tions pro mote the organic E-mail: [email protected] produc tion of a variety of items, including dairy products in Bukonyo county. One of the largest Togo ven tures is the Lango cotton proj ect, in which 5,000 farmers partici pate. The Depart ment of Social and Pro duc tion includes fresh fruits (bananas, man goes) Eco nomic Devel op ment (SED) carries out training and dried fruits (pineap ples, papayas, mangoes), programmes in rural commu ni ties and has a proc essed fruit, oil crops (coco nuts), stimulants dem on stra tion farm. Most of the farmers trained have (coffee and cacao) and spices (ginger). diver si fied their pro duc tion. There are also Good Food (see the Neth er lands) projects producing dried fruits Useful addresses and edible nuts. ASDEB (Action solidaire pour un développement entretenu One com pany has been exporting fresh tropical fruits à la base) and vegeta bles from controlled organic farms on a Rue No 106, Avenue Togo-Gaz, BP 3771, Lomé Tel/Fax: +228-227427 contrac tual basis since 1993. Among the coun try’s (Development) export prod ucts are cer ti fied organic cocoa, coffee, ginger, pine ap ples, sesame and sweet bananas. GJED BP 536, Kpalimé Tel/Fax: +228-410280 and +228-410076 Certification There are no offi cial stan dards for organic farming in Tunisia Uganda and no local inspec tion or cer ti fi ca tion bodies. Among the inter na tional inspec tion agen cies Pro duc tion includes fresh fruits (citrus) and active in the country are IMO, KRAV and SKAL. vege ta bles (tomatoes), dried fruits (dates), nuts, oil Both KRAV and SKAL have trained local inspec tors crops (olives) and herbs. Some farms use bio dy namic in order to cut costs. farming methods. Several Italian and German importers have set up organic proj ects in Tunisia. Potential Exports to the European Union are rap idly increasing. Medifruit in Borj Cedria and WTCO in Uganda has good natural con di tions for organic Kebill are date exporters. agricul ture and many crops can be grown. Much of the agri cul tural land is cul ti vated by small holders Tunisia is member of the AgriBioMedi ter raneo without recourse to agro-chemicals, and tradi tional group (see Italy). mixed farming sys tems remain in use in some places. 78 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

How ever, because of increasing pres sure on the land, com pany, Four Sea sons, has a product range that tra di tional farming sys tems may not be sus tain able in includes soy prod ucts, peanut butter, herbs and many places in the long run. The main export spices, herbal teas, essential oils, sauces, pastas, con straint is the lack of com pa nies with enough jel lies, grains and pulses. Its output is cer ti fied by the capital to buy organic prod ucts for export and to British cer ti fier Organic Farmers & Growers Ltd, and arrange for cer ti fi ca tion. is exported through dis tribu tors in Europe, North America, Aus tralia, Japan and South Africa. Useful addresses DENIVA Several firms have started mar keting their prod ucts (Development Network of Indigenous Voluntary packed for final con sump tion under various brand Associations) names. Around 50% of the cer ti fied produc tion is PO Box 11224, Kampala exported, the rest is mar keted in- country. In addi tion Tel: +256-41-531150; +256-41-530575 to Europe, Aus tralia, the United States and Canada, Fax: +256-41-531238 South Africa is a signifi cant importer of organic E-mail: [email protected] prod ucts from Zim babwe. SANU (Sustainable Agriculture Network of Uganda) Useful addresses PO Box 281, Kampala Tel: +256-41-530575 Africa Centre for Holistic Resource Management Fax: +256-41-531236 PO Box MP 266, Mt. Pleasant, Harare (Production, development) Tel/Fax: +263-4-732360 E-mail: [email protected] Uganda Export Promotion Board Plot 17/19 Jinja Road Four Seasons Foods PO Box 5045, Kampala P. O. Box AY 56, Amby-Harare Tel: +256-41-230250; +256-41-259779 Tel: +263-4-487832; +263-4-487559 Fax: +256-41-259779 Fax: +263-4-486178 E-mail: [email protected] (Production, trade)

Zambia Horticultural Promotion Council Agricultural House Zambia pro duces some organic prod ucts, including Corner Adylins Road/Mulbury Drive POB WGT 290 Harare honey. Fax: +263-4-309853 E-mail: [email protected] Useful address (Supports organic agriculture) Export Board of Zambia Fifth Floor, Woodgate House Nature Nurture (Pvt.) Ltd Cairo Road, South End, Lusaka Private Bag 2003, Ruwa Tel: +260-1-228106; +260-1-228107 Tel: +263-73-2771/2 Fax: +260-1-222509; +260-1-222259 Fax: +263-73-2321 (Production)

Zimbabwe NFN (Nature Farming Network) In 1993, some farmers started to grow commer cial 8 Elseworth Avenue organic prod ucts and organ ized them selves into the Box CY 301, Causeway-Harare Zimbabwe Organic Producers Asso cia tion (ZOPA), Tel: +263-4-731541 now ZOPPA. The area under produc tion is about Fax: +263-4-723056 1,000 hectares. Out puts include essen tial oils, herbs E-mail: [email protected] (e.g. basil), spices and spice prepa ra tions (barbecue (Development) season ings, cayenne pepper), fruits, soy beans and cocoa. Cer ti fi ca tion is carried out by a British ZOPPA (Zimbabwe Organic Producers and Processors cer ti fi ca tion body. Association) PO Box BW1011, Borrowdale Under the Nature Farming Net work of Zimbabwe, Tel/Fax: +263-14882094 around 10 NGOs work together in organic E-mail: [email protected] agricul ture, mainly for home consump tion. One (Production, processing, trade) CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 79

Other countries in Africa Jamahiriya, Mau ri tania, Namibia, Niger, Rwanda, Western Sahara, Sao Tome and Prin cipe, Sey chelles, In December 1998, there appeared to be no cer ti fied Somalia and Swa zi land. organic agricul ture in the fol lowing coun tries: Angola, Bot swana, Cen tral African Republic, Chad, How ever, ini tia tives may have been taken in some of Congo, Dji bouti, Equa to rial Guinea, Eri trea, these coun tries to develop organic farming. Guinea- Bissau, Lesotho, Liberia, the Libyan Arab

Asia

Organic pro duc tion takes place, though gen er ally on Bangladesh a very small scale, in most Asian coun tries. It is prac tised to reach self- sufficiency in food, to improve Bang la de sh’s organic output includes herbs and tea. soil fertility, or to engage in the export trade. It is organ ized by indi vidual farmers, farmers’ and Useful addresses women’s organi za tions and a wide variety of NGOs. PROSHIKA-PRO-Training In almost all countries local distri bu tion is a huge SHI-Education, KA-Action problem. Often, it does not exist or is impro vised and Central Training Center, PO Koilla gener ally provides no price pre mium. Access to Dist. Manikgonj technical assistance and rea son able forms of credit Tel: +880-2-09333127 Fax: +880-2-805811 remains dif fi cult. Israel, Japan and, to a much lesser (Production, development) extent, Malaysia and the Phil ip pines have dis tri bu tion systems involving supermar kets as well SCI Bangladesh as spe cial ized stores. Israel and Turkey are impor tant Moudubi Health & Agriculture Development pro ducers of a variety of food prod ucts, but mainly Project dried and fresh fruits and vege ta bles, and nuts. 6/5 Sir Syed Road, 1E floor, Block A Among the other sig nifi cant pro ducing coun tries are Mohammedpur, Dhaka 1207 Tel/Fax: +880-2-9113623 China, India, the Republic of Korea and Sri Lanka; Fax: +880-2-810254 their output includes cocoa, coffee, essential oils, E-mail: [email protected] herbs and spices, peanuts, rice, tea and vanilla. The (Production) Asi atic areas of the Russian Federation have some pockets of impro vised organic agri cul ture without a China structured market. Israel and Japan have become organic importers as well as exporters. Production

Cer ti fi ca tion becomes an issue if organ ized national From 1995 to end- 1997 the area under cer ti fied or export mar kets are to be devel oped. China, India, organic produc tion increased from around 450 Israel and Japan have well-established con trol and hectares to about 4,000 hectares. In addition, about cer ti fi ca tion bodies; some other countries are 10,000 hec tares in the wild have been cer ti fied. China establishing similar entities. Nev er the less, for eign pro duces about 40 items within the product con trol and cer ti fi ca tion bodies remain active in Asia cate go ries listed below; sample items are also given. since only Israel has so far obtained equiva lency with the stan dards of the Euro pean Union. q Fruits, processed fruit ( juices);

q Fruits, fresh (apples); Azerbaijan q Grains (rice, wheat, buckwheat, maize); Ini tial steps are being taken to develop organic q Herbs and spices (ginger); farming. One proj ect, which pro duces apples, is on the verge of being cer ti fied by SKAL. q Honey; 80 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

q Legumes, dried (soybeans, beans); developed stan dards for produc tion, proc essing and labelling; has set up inspection, certi fi ca tion, q Nuts (chestnuts, walnuts, peanuts); research, exten sion and training facili ties; and has q Oil crops (sesame, pumpkin, sunflower) and oil; ini ti ated a pro mo tion net work. It is now the main Chi nese cer ti fier. SKAL (of the Neth er lands) and q Tea; OCIA (of the United States) have con trib uted to the q Vegetables. devel op ment of cer ti fi ca tion in China. The German BCS, the Swiss IMO and the American QAI (Quality China also offers special ties like sea- buckthorn oil, Assurance International) are also active in this field. con cen trate and powder. Potential Trade China has an enor mous potential as a producer of The domestic organic market is being organ ized organic products. A survey has indicated, for under the ini tia tive of the China Green Food instance, that around 30% of the tea pro duced in the Development Centre and others. Produc tion is moun tainous regions of Anhui and Zhejiang could be strongly export- oriented. The first fully organic food turned rela tively easily into organic prod ucts. trading com pany, Winged Ox Organic Food Co. Ltd, was formed in 1995 and since then four other Useful addresses com pa nies have been established. The overall turnover has risen almost ten fold in recent years to CGFDC (China Green Food Development Centre) reach an esti mated $600 mil lion in 1997/98. 15, Guangximen Beili, Xibahe Chaoyang District, Beijing 100028 A growing array of prod ucts is finding mar kets in Tel: +86-10-64227205 Europe, Japan and the United States. Records show Fax: +86-10-64221175 that cer ti fied organic tea was exported to European E-mail: [email protected] coun tries by the Import and Export Tea Cor po ra tion (Development) of Zhejiang Prov ince as early as 1994. Organic China Dalian Free Tariff Zone soy bean was exported to Japan for the first time in Hei Agriculture Cultivation International Organic 1994. Some exporting com pa nies and their prod ucts Food Development Co., Ltd are listed below: 12-4 Qing Song Bel Economy and Technology Department Zone q China Environmental Organic Food Company Dalian 116600 (Beijing): corn, peanuts, rice, sesame and spices; Tel: +86-411-7605917 Fax: +86-411-7602447 (Production and trade: soy, oleaginous seeds, pulses q Hei Agriculture Cultivation International and vegetables) Organic Food Development Co., Ltd (in the Dalian free tariff zone): produces and exports grains, ICAIRD oleaginous seeds, pulses, soy and vegetables; (Intercontinental Centre for Agro-ecological Industry Research) 17-206 Xijadatong, Golou, Nanjing 210008 q Huan En Organic Food Trading Co. (Dalian Tel: +86-25-3602748 development zone): exports soy to Japan; Fax: +86-25-3602748 E-mail: [email protected] q Naturex Organic Foods Ltd (Jiangsu): dried (Research, control) fruits, edible oils, Suzhou noodles, sweets; JROFT q Winged Ox Organic Food Co. Ltd (Nanjing): (Jiangsu Ruikang Organic Food Trade) peanuts, seeds, soy. 66-1 Chengxian Street, Nanjing 210018 Tel: +86-25-7712445 Fax: +86-25-3356700 Certification E-mail: [email protected] (Processing, trade) In 1994, the Chi nese National Envi ron mental Pro tec tion Agency established the Organic Food NA - Produce Green Foundation Develop ment Centre (OFDC). The Centre has 18, Hok Tau Village, Hong Kong, Fanling N.T. Tel: +852-6741190 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 81

Fax: +852-6748077 pea nuts), oil crops (sesame, coconut), dried leg umes, E-mail: [email protected] grains (rice), coffee, sugar cane, herbs and spices and Web site: www.producegreen.org.hk other prod ucts. India is best known for its organic tea, (Production, development) of which it has numerous varie ties. NOF (Naturex Organic Foods Ltd of Jiangsu) Trade 233 Binhe Rd., Suzhou New District Suzhou 215011 The home market is small and mainly informal. Tel: +86-512-8254247 Pro duc tion is largely export- oriented, with mar kets Fax: +86-512-8251347 including the Euro pean Union, the United States and E-mail: [email protected] Japan. The number of organic traders is growing OFDC-SEPA rap idly. Among them are the Amboothia Tea Group (Organic Food Development Centre of China) and God frey Phil lips India Ltd, both based in 8 Jiangwangmiao Street Cal cutta and both exporters of tea. Another exporter PO Box 4202, Nanjing 210042 is Enfield Agro base Pvt Ltd of Madras which trades Tel: +86-25-5412926 in nuts, pea nuts, sesame, rice and dried fruits. Fax: +86-25-5420606 E-mail: [email protected]; [email protected] Certification (Control, certification) ENCON, formed in col labo ra tion with The Soil Winged Ox Organic Food Co. Ltd Asso cia tion, cer ti fies Indian pro duce as well as those 85 Huju Road, Nanjing 210013 from some neigh bouring coun tries. Sev eral Euro pean Tel: +86-25-3737169 and American inspec tion cer ti fi ca tion bodies are also Fax: +86-25-3710549 active. The Swiss IMO has estab lished a sub sidiary in India (IMO Con trol). Cyprus It is believed that India has tre men dous poten tial as a Cyprus has two organic producers. Yial lourou has pro ducer of organic prod ucts and further efforts to eight hec tares of vine yards with an output of 17,000 develop it are expected in the near future. bot tles of organic wine a year; it is controlled and cer ti fied by SKAL. The second pro duces a small Useful addresses quan tity of aro matic herbs, which are not cer ti fied. ENCON Useful address PO Box 575, Kanchan Nagar Nakshatrawadi, Aurangabad 431002 Oekologiki Oenotechnia Yiallourou Tel: +91-240-332336/322828 PO Box 1827, CY-Limassol Fax: +91-240-322866 Tel: +357-5-242730 (Certification) Fax: +357-5-359009 (Production, trade) Ginni Exports 14 Madan Chatterjee Lane, Calcutta 700002 Georgia Tel: +91-33-2320138 Fax: +91-33-2330915 Organic agriculture is at an early stage. E-mail: [email protected] (Production, trade)

India IIRD PO Box 12, Nakshatrawadi Production Aurangabad 41300, Maharashtra Tel: +91-240-332336 Lord Albert Howard, one of the founding fathers of Fax: +91-240-331036 E-mail: [email protected] organic agri cul ture, developed his first composting (Consultancy, development) methods in India around 1910. Organic agricul ture gained impetus in the 1980s and now India pro duces IMO Control a wide variety of organic prod ucts such as fresh and Umesh Chandravekhar 1037 dried fruits (pineap ples, bananas, pears), proc essed 29A Cross Rd, Jayanagar, Bangalore 560082 fruit (mango con cen trate), vege ta bles, nuts (cashew, Tel/Fax: +91-80-6651772 82 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

E-mail: [email protected] Iraq (Control, certification) Organic agri cul ture is in its early stages. IOAM (Indian Organic Agricultural Movement) 25/1, Yeshwant Niwas Rd, Shreesh Chamber Useful address Indore DIN 452003 ZQVP, Zakho Projects Tel: +91-731-536813 University of Dohuk, College of Agriculture Fax: +91-731-432869 Abid Ali Hassan, Dohuk, Kurdistan (Inspection, certification) Tel: +964-62-682623815 Fax: +964-62-682623816 Indonesia Israel In 1995, Indo ne sia’s output of organic food stuffs was insig nifi cant. It con sisted of wild fruits, vege ta bles, In the begin ning of 1999, Israel had close to 250 grains (rice), coffee and spices (vanilla, cin namon, organic farms on roughly 2,100 hec tares of land. In cloves) and herbs. Since then produc tion has taken terms of their products, the farms are distrib uted as off, and vanilla has become an export crop. Further fol lows (some have sev eral cate go ries of prod ucts): devel op ments are expected to take place. No. of farms Products Yearly volume Useful addresses 125 Vegetables 11,500 tons Biotani Pan Indonesia-Biodinamika Pertanian Pan 110 Fruits 6,500 tons Jl. Persada Raya NE 1 50 Field crops 18,000 tons RI-Menteng Dalam, Djakarta 12870 27 Citrus 17,200 tons Tel/Fax: +62-21-8296545 (Inspection, certification) 30 Livestock 3 million litres of milk, 10 million eggs, OAADC 150 tons of meat, honey (Organic Agriculture & Agroforestry Development Centre) Among the fresh vege ta bles, roots and tubers pro duced Sribhawono RT/ 05/RW 02 Labuhan Maringgar are carrots, celery, cherry tomatoes, Chi nese cab bage, RI-Kabupaten Lampung Tengah, Lampung 34199 cucumber, fennel, garlic, ice berg let tuce, onions, Tel: +62-21-8293967 and 8318967 pota toes (early), sweet corn, sweet potatoes, toma toes Fax: +62-21-8293967 and zuc chini. Fruits include avo ca dos, bananas, citrus, E-mail: [email protected] dates, grapes, man goes, melons and papayas. (Production, development)

PPLH Seloliman Bio dy namic farming is also prac tised. (Pusat Pendidikan Lingkungan Hidup) PO Box 03 Processing and trade Trawas, Mojokerto 61375 East Java The country has about 20 packing houses; it also has Tel/Fax: +62-343-80884 E-mail: [email protected] proc essing plants pro ducing fruit juices, for example. Web page: http://www.webcom.com.com/pplh Both North America and the Euro pean Union import Islamic Republic of Iran fresh produce from Israel, especially fruits and vegeta bles. The country has an effi cient pro duc tion Organic agricul ture is in its initial stages of and mar keting system, for the larger part based on devel op ment in this country. col labo ra tion between farmers and the State. Mar keting is carried out by Agrexco, which has Useful address sub sidi aries in France, Ger many, the Neth er lands, the United Kingdom and the United States. College of Agriculture, Ferdowski University PO Box 91775-1163, Mashhad Tel: +98-51-8108635 or +98-51-822939 About 16,000 tons of field crops, 13,000 tons of Fax: +98-51-815845 citrus, 5,000 tons of fruits, 3,000 tons of vege ta bles, E-mail: [email protected] and all of the livestock prod ucts are sold in Israel’s CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 83

health food stores, local mar kets and super mar kets, q Pickles and fermented apricots (umeboshi); or are proc essed. The bal ance is exported. q Sake (rice wine);

Various organic prod ucts are imported by about 10 q Soy sauces like tamari and shoyu; importers. q Tea, such as the special teas bancha, kukicha (twig tea) and green tea; Israel has its own organic regu la tions, which have obtained equiva lency with EU stan dards. It has its own q Ume-su (a fermented apricot vinegar), certi fi ca tion agency, IBOAA (Israel Bio-Organic genmai-su (whole rice vinegar). Agri cul ture Asso cia tion). IBOAA issues its own certi fi ca tion label, Biotop. It is seeking IFOAM Prod ucts now popular all over the world, such as rice accredita tion. cake and soy milk, origi nated in Japan.

Israel is a member of IFOAM’s Medi ter ra nean group, A fer til izer widely used in organic cir cles in Japan is a AgriBio Medi ter raneo (see Italy). com posted mix ture of rice bran (sup plying cel lu lose) and okara (a by- product of the soy milk industry and Useful addresses supplying nitrogen). Organic livestock farming is Agrexco Ltd non-existent. PO Box 20601, Tel Aviv 61206 Tel: +972-3-5630940 There is a very strong partner ship, referred to as Fax: +972-3-5630918 tei-kei, between organic farmers and con sumers. The E-mail: [email protected] con sumers often supply pre- financing and other serv ices, and the farmers pro vide an organic food Citrus Bio Organic Growers Association basket at afford able prices. It is believed that more Kibbutz Gevolut, IL-85525 Kibbutz Gevolut Tel: +972-7-9983101 than 1 mil lion Japa nese consumers are involved in Fax: +972-7-9987900 the tei-kei. How ever, no clear stan dards have been (Production, trade) evolved for the tei-kei output and none of it is cer ti fied. IBOAA (Israel Bio-Organic Agriculture Association) Manufacturing and trade 121 Hahashmonaim St, IL-67011, Tel Aviv Tel: +972-3-5610538 Fax: +972-3-5618633 Pro duc tion is aimed at both domestic and export E-mail: [email protected] mar kets, the national market being esti mated at (Certification) $1.3 billion-$1.5 bil lion in 1998. There are numerous organic proces sors and manufac turers, both small Japan tradi tional family enterprises and large compa nies. Prestig ious tradi tional com pa nies such as Hatcho Production Miso Company and Sendai Company have an organic line. Health food shops carry organics all Organic pro duc tion in Japan started in the 1930s, and over Japan and an increasing number of has developed strongly since the 1970s. In the two super mar kets have included organic prod ucts in their decades since 1970, an increasing number of assort ments. The Jusko retail group carries the tradi tional Japa nese food producers and proces sors French La Vie brand. have been converting to organic produc tion. These com pa nies con tinue to export through com pa nies like Japan has become a sub stan tial importer of all Muso in Osaka and Mitoku in Tokyo to mac ro bi otic organic consumer prod ucts, but is extremely cir cles and natural food shops all over the world. demanding on quality aspects. One of the main Their prod ucts include the fol lowing: imported raw materials is soy, obtained from the United States and else where and proc essed into such q Miso (a soy condiment); prod ucts as soy sauces and miso, partly for export. Large Japa nese com pa nies (for instance, Mit su bishi, q Mochi (a dried paste of steamed rice); Nissho Iwai and Kirin) are becoming increas ingly q Noodles, including the specialities ramen, soba involved in the trade. The Organic Bank is a strong (buckwheat noodles) and udon; pro moter of the trade. 84 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Certification group north of Almaty. Prod ucts are sold locally and without cer ti fi ca tion. The Neth er lands Agro Eco Japan’s official regulations on organic food Con sul tancy group provides tech nical assis tance. pro duc tion are not clear and are often con fused with stan dards for low- input sus tain able agri cul ture. Useful address Pri vate organic stan dards are in use and the main Zhana Zhol certi fier is JONA, which frequently works together Aytiev Street 96, Almaty with American and Euro pean cer ti fiers. Tel/Fax: +7-3272-509266

Useful addresses Kyrgyzstan Japan External Trade Organization (JETRO) 2-5, Toranomon 2-chome There are several uncer ti fied organic farmers’ Minato-ku, Tokyo 105-8466 ini tia tives. They carry out their own mar keting. Tel: +81-3-3582-570 Fax: +81-3-3582-5670 Web site: http://www.jetro.go.jp Lebanon

JONA Organic agri cul ture in Lebanon has advanced to the (Japan Organic and Natural Foods Association) stage of being able to export some prod ucts to the Aomori-Ken Blas Plaza, Sumitomo Building 5F Euro pean Union and the United States. Some 2-2-1, Yaesu, Chua-Ku, Tokyo 104-0028 prod ucts are sold in local health food stores. Tel: +81-3-52017003 Fax: +81-3-32710701 E-mail: [email protected] Lebanon is a member of the IFOAM Medi ter ra nean (Inspection, certification) group AgriBio Medi ter raneo (see Italy).

Muso Company Useful address 3-7-22 Nishitenma, Kita-ku, Osaka 530-0047 Tel: +81-6-6316-6021 MECTAT Fax: +81-6-6316-6016 (Middle East Centre of Transfer of Appropriate Email: [email protected] Technology) (Import, export) PO Box 113-5474, Beirut Tel: +961-1346465 NOAPA Fax: +961-1346465 (Nippon Organic Agricultural Products) E-mail: [email protected] Fukuroku Bldg, 2-7, Tsukasa-Cho Web site: http://www.mectat.com.lb/ Chiyoda-ku, Tokyo 101 (Consultancy) Tel: +81-3-32955448 Fax: +81-3-32592884 Malaysia E-mail: [email protected] Web page: http://www.yokohama.venture-web. Organic agri cul ture and agro for estry are devel oping or.jp/noapa/join.html (Control, development) rap idly. Some national distri bu tion of organic prod ucts takes place and the export trade is Organic Bank com mencing. Shibata Building 3F, 1-5-16 Nihonbashi Bakurocho Tokyo 103-0002 Chuo-ku Useful addresses Tel: +81-3-36601637 Fax: +81-3-36601638 CETDEM E-mail: [email protected] PO Box 382, 46740 Petaling Jaya Web page: http://www:iijnet.or.jp/organic/ Tel: +60-3-7757767 (Trade, development) Fax: +60-3-7754039 E-mail: [email protected]

Kazakhstan MOFAN (Malaysian Organic Farming Network) There are several groups of organic farmers in PO Box 382, 46740 Petaling Jaya Kazakhstan. Among them are a group of 20 farmers in Tel: +60-37757767 the moun tainous region in the south- east and another Fax: +60-37754039 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 85

Myanmar Palestine

Some quanti ties of grains (Bas mati rice) and cane Pal es tine pro duces organic fruits and vege ta bles. It is sugar are pro duced. A cer tain volume is exported, for a member of the IFOAM Mediter ra nean group instance to Den mark and other EU coun tries. AgriBio Medi ter raneo (see Italy).

Nepal Useful address PARC The Kanchajunga Tea Estate in Panchtar and other (Palestinian Agricultural Relief Committees) farms produce some green and black tea, which is PO Box 25128 Shufat, Jerusalem traded by Highland Trading Co. (P) Ltd (located in Tel: +972-2833818 Baneskwar, Kathmandu). Some organic herbs and Fax: +972-2831898 spices are also produced. Local distribution is almost Quattro Department for Organic Agriculture non-existent, while the export trade is beginning. POB 1080, Nablus Fax: +972-9382217 Useful addresses ECOSCENTRE Philippines (Ecological Service Centre) Maheswar Ghimire PO Box 04, NEP-Nrayangarh, Chitwan The Phil ip pines is an impor tant pro ducer of organic Tel: +977-56-23834 coffee, with an annual output esti mated at 2,000 tons Fax: +977-56-20165 in the mid 1990s. Addi tional prod ucts include fresh E-mail: [email protected] and dried fruits (man goes, bananas), grains (rice), (Production and research) sugar, herbs and spices (black pepper, cloves) and INSAN animal prod ucts (dairy prod ucts). (Institute for Sustainable Agriculture Nepal) Bharat Shrestha Part of the sugar from the island of Negros is sold GPO Box 8126, Kathmandu under fair trade schemes. Local farmers deliver their Tel: +977-1-481305 pro duc tion to the local refinery. Nearly 400 tons of Fax: +977-1-473276 sugar are pro duced every year, half of which is sold to E-mail: [email protected] Euro pean fair trade organi za tions, the other half to a Japa nese entity. Exports of other prod ucts are also Pakistan increasing. According to the Paki stan Organic Farmers’ Associa tion (POFA), the country produces organic Useful address cotton; fruits, fresh and dried; grains (rice, corn and ATC wheat); herbs and spices; nuts; and pulses (Alter Trade Corporation) (chickpeas). BLK 6-A, Lily St., Bata Subdivision RP-Bacolod City 6100 Tel: +63-34-4410051 In the domestic market, sales are made direct from Fax: +63-34-4410057 the farms. The Paki stan Organic Farmers Food Ltd in (Processing, trade) Lahore is the main exporter. OPTA Useful addresses (Organic Producers’ Trade Association) 235 San Francisco del Monte Avenue Pakistan Organic Farmers Foods Ltd RP-Manresa, Quezon City 1115 76 West Wood Colony, PAK-53700 Lahore Tel: +63-2-9391402 Tel: +92-42-5221707 Fax: +63-2-3617695 Fax: +92-42-5220433 E-mail: [email protected] (Exporter) (Production, marketing, control) POFA (Pakistan Organic Farmers’ Association) Republic of Korea 78 West Wood Colony, PAK-Lahore 53700 Tel: +92-42-5221707 Fax: +92-42-5220433 The Republic of Korea has been prac tising organic (Production) farming since the Korean Organic Farming 86 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Asso cia tion (KOFA) was estab lished in 1978. KOFA q Cane sugar; has more than 17,000 mem bers. q Coconut products;

Sales of organic produce in the domestic market q Coffee; account for less than 1% of the total trade in farm q Fruits, canned; prod ucts. Organic prod ucts are sold either directly by pro ducers to consumers or through super mar kets. q Fruits, fresh and dried (pineapples, papayas, Sales from super mar kets are usu ally proc essed foods. bananas, mangoes); The export trade is just begin ning. q Fruits, juices and concentrates (from pineapple, mango, passion fruit, papaya); Useful addresses KOFA q Grains (rice); (Korean Organic Farming Association) 4th Fl. Sungwon B/D 3-72 Garak Dong, Songpa Gu q Herbs and spices (pepper, cardamom, cloves, Seoul 138-160 cinnamon, ginger). Tel: +82-2-406-4462 Fax: +82-2-403-4463 q Nuts (cashew nuts); (Production, development) q Oil-seeds (sesame seeds, coconut). KSOA (Korean Society of Organic Agriculture) In the mid 1990s, 10 enti ties were con trolled according 375-45, Seqyo-Dorig, Mapo-ku, Seoul 121-210 to EU rules; these cov ered around 15 plan ta tions and Tel: +82-2-3975628 coop er ated with more than 100 smallholders. Many Fax: +82-2-3975630 small holders have come together in the Lanka Organic (Development) Agri cul tural Move ment (LOAM).

Saudi Arabia The Need wood Tea Estate was con verted during the Health food stores such as the Saudi Health Food mid 1980s and cer ti fied by Natur land and the House in Riyadh have a long tra di tion of carrying National Association for Sustainable Agriculture Australia (NASAA). It is one of the oldest organic tea (imported) organic prod ucts. Local organic pro duc tion is emerging. plan ta tions in the world. One com pany, Stassen Natural Foods Ltd, started organic tea produc tion in Useful address 1987; by 1995 it was cul ti vating 250 hec tares of land, with an annual output of around 150 tons. The Sunsmile com pany is cer ti fied by Natur land and the tea is Saudi Health Growers PO Box 641, Shaka/Al-Jouf exported to Ger many and other Euro pean coun tries, Tel: +966-46220511 as well as to Aus tralia and Japan. Fax: +966-46221100 Sri Lanka exports its prod ucts mainly to Europe, the Singapore United States, Aus tralia and Japan. National dis tri bu tion is mostly informal. Organic agricul ture is at its initial stages in Sin ga pore. Around five European, American and Austra lian cer ti fi ca tion agencies are active in Sri Lanka, Useful address including IMO, NASAA and SKAL. Pureland Organic Health Farm 50 Chin Swee Rd, 10-06, Thong Chai Bldg Selected addresses SGP-Singapore 0316 Tel: +65-7387748 Gami Seva Sevana Fax: +65-7387749 Office Junction, Galaha Tel: +94-867201 Fax: +94-8232343 and +94-467299 Sri Lanka E-mail: [email protected] (Production, trade, development) Sri Lanka is one of the world’s leading sources of organic tea. It also pro duces other cer ti fied organic Needwood Organic Tea Estate prod ucts. These include the fol lowing: Haldummulla CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 87

Tel: +94-57-8126 trade activi ties as does Green Net, created in 1994. Fax: +94-57-8242 ACT (Organic Agriculture Certification Thailand) is E-mail: [email protected] involved in certification. SNF (Stassen Natural Foods Ltd) Useful addresses PO Box 1919, 833 S.B. Mawatha, Colombo 14 Bio-Safer Tel: +94-1-522871 and 522925 99/220 Tessagbarnsongkraoh Rd Fax: +94-1-522913 E-mail: [email protected] Ladyao, Jatujak, Bangkok 10900 Tel: +66-2-9543120/6 Sri Lanka Export Development Board Fax: +66-2-9543128 115 Sir Chittampalam A. PO Box 1872, 94-1 Colombo 2 Green Net Tel: +94-1-438517 183 Regent House, Rajdamri Road Fax: +94-1-438404 Patumwan, Bangkok 10330 (Trade) Tel/Fax: +66-2-6519055/56 E-mail: [email protected] Tropical Health Food (Pvt.) Ltd (Development and trade) 95 Castle Street, Colombo 8 Tel: +94-1-683956 SGS Fax: +94-1-686670 (Société générale de surveillance) (Processor, exporter) GPO Box 429, Bangkok 10501 Tel: +66-2-6781813 Fax: +66-2-6781543 Taiwan Province (China) E-mail: [email protected] (Control, certification) The Organic World Cor po ra tion is an importer and distributor of organic food in Taiwan Prov ince Turkey (China). It imports organic prod ucts from all over the world, including Australia, France, Japan and the Production United States. It dis trib utes these imports through its own stores. Organic production is in its first stages. By the end of 1997, Turkey had 18,000 hec tares (with 7,500 farmers) under organic produc tion. It is Useful addresses believed that by the end of 1998 these fig ures had Organic World Corporation increased by roughly 25% and that annual exports th No. 60, Wu-Kung 5 Rd. amounted to 50,000 tons. Produc tion is essen tially Wu-Ku Industrial Area, Wu-Ku Hsiang for export and Euro pean organi za tions like the Good Taipei Hsien Tel: +886-2-2989186 Food Foun da tion (see the Neth er lands) have been at Fax: +886-2-2989315 the van guard of this devel op ment.

Sheng Chung Industrial Corporation The most impor tant organic prod ucts are dried fruits PO Box 32-22E, Taipei Tel: +886-2-7316099 (apples, apri cots, pears, figs, cher ries, mulber ries, Fax: +886-2-7316096 peaches, prunes, rai sins, currant). Turkey also pro duces fresh and proc essed fruits and vege ta bles. Its Tajikistan output includes fruit juices and juice con cen trates (from apple, apricot, pear, cherry), canned fruit, tomato Although there are iso lated pro duc tion ini tia tives, no paste, nuts (apricot ker nels, hazel- nuts, peanuts, cer ti fied prod ucts are pro duced in the country. almonds, pine- nuts, pis taccio nuts, wal nuts), oil crops (poppy-seed, olive, sesame), dried leg umes (chickpea, Thailand lentils), grains (wheat), dairy prod ucts (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 The German wholesaler Rapunzel has opened a Bangkok and some other areas. Rice is among its sub sidiary in the country. Turkey is member of the exports. IFOAM group AgriBio Medi ter raneo (see Italy).

The Alterna tive Agricul ture Net work (ANN), The main export mar kets are the Euro pean Union and established in 1984, carries out development and the United States. 88 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Turkey has had legis la tion on organic agricul ture United Arab Emirates since 1994, and its request for the grant of equivalency with EC Regu la tion 2092/91 is There are several projects for the estab lish ment of pending. A number of for eign inspec tion and organic farming. Imported organic foods are sold in certi fi ca tion bodies are active in the country, health food shops, mainly in Dubai. including INAC (Germany), IMO (Swit zer land), BCS (Germany), Ecocert (Ger many, France) and Uzbekistan SKAL (Neth er lands). While there are produc tion ini tia tives, cer ti fi ca tion Useful addresses does not yet take place in Uzbeki stan. EGE Ihracatci Birlikleri Genel Sekreterligi 1375 Sok. Nr 25 Kat.3, 35210 Alsancak-Izmir Viet Nam Tel: +90-232-4218699 Fax: +90-232-4216560 Organic agri cul ture is just begin ning in Viet Nam. E-mail: [email protected] Useful address ETKO (Ekolojik Tarim Kontrol Organzasyonu) Ecological Economy Institute 160sk. No. 7 Bornova, 35040 Izmir 189 B. Tay-Son Street, Dong Da-Hanoi Tel: +90-232-3397606 Tel: +84-48574400 Fax: +90-232-3397607 Fax: +84-48572697 (Control, certification) (Production, development)

ETO REC (Ecological Agricultural Organization) (Renewable Energy Center) Ekojolik Tarim Organizashyonu Demegi Do Ngoc Quynh Ege University, Faculty of Agriculture Can Tho University, Can Tho 35100 Bornova-Izmir Tel: +84-71838757 Tel: +90-232-4637551 Fax: +84-71839250 Fax: +90-232-3881864 E-mail: [email protected] E-mail: [email protected] anaerob@|netnam2.or.vn (Research, development) (Production, development)

Isik Tarim Ürünleri Sanayi ve Ticaret A.S. Other Asian countries/areas Sair Esref Bulvan No.6/605, 35230 Izmir Tel: +90-232-4415274 Fax: +90-232-4411931 At the time of writing of this study (December 1998), E-mail: [email protected] there was appar ently no cer ti fied organic agri cul ture in Web site: http://www.isiktarim.com the fol lowing coun tries: Afghanistan, Armenia, (Production, processing and trade) Bah rain, Bhutan, Brunei Darus salam, Cam bodia, Kuwait (import market), Lao People’s Demo cratic Turkmenistan Republic, Mon golia, Oman, Qatar, Syrian Arab Republic and Yemen. Although there are some local produc tion ini tia tives, no cer ti fi ca tion takes place as yet in How ever, ini tia tives may have been taken in some of Turkmeni stan. these coun tries to develop organic farming.

Oceania

Australia 150 bio dy namic ones. It has ample manufac turing and proc essing facilities. Spe cial ized organic retail Australia pro duces a large number of cer ti fied shops are found in the main urban areas as well as in organic prod ucts for the domestic market and for some rural zones. One supermarket chain is test export. It has close to 1,800 organic farms, including mar keting cer ti fied organic produce in two States. CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 89

The main export mar kets are Japan and the Euro pean NASAA Union, the leading export product being fruits. (National Association for Sustainable Agriculture Australia) PO Box 768, AUS-Stirling, South Australia 5152 NASAA, which is accred ited by IFOAM, currently Tel: +61-883708455 cer ti fies 400 farms cov ering no less than 7.5 mil lion Fax: +61-883708381 hectares. These farms produce cereals (including E-mail: [email protected] rice), pulses, fruits (apples, pears, bananas, avo cados (Control, certification) and citrus) and wine. They also raise live stock. About 20% of the farms hold 80% of the acreage, the RIRDC/OFA farming system being highly exten sive on arid or (Rural Industries Research and Development Corporation/Organic Federation of Australia) semi- arid land. PO Box 4776, Kingston, ACT 2604 Tel: +61-2-62724819 Among the other cer ti fiers are the Biody namic Fax: +61-2-62725877 Research Insti tute, the Bio logical Farmers of Aus tralia, E-mail: [email protected] the Organic Vignerons Associa tion of Aus tralia, Inc., Web site: http://www.rirdc.gov.au and the Organic Herb Growers of Aus tralia Inc. Fiji Aus tra lia’s organic stan dards are set out in the National Stan dard for Organic and Bio dy namic Organic agri cul ture (e.g. tropical fruit) is in its early Pro duce. These are vol un tary for the domestic market stages in Fiji. (unless the prod ucts are labelled ‘ce rt ified organic’, but man da tory for the export market. How ever, the Useful address organic industry strongly encour ages cer ti fi ca tion FijiAgTrade that is equiva lent to Aus tra lia’s national stan dards. If Ministry of Agriculture, Fisheries and Forest an imported product is to be used in a proc essed Private Mailbag export product, it must be cer ti fied against stan dards Raiwaqa, Suva equiva lent to those of Aus tralia. Tel: +679-384-233 Fax: +679-385-048 E-mail: [email protected] The Austra lian Quaran tine and Inspec tion Service [email protected] (AQIS) enforces export stan dards, and accredits and super vises cer ti fi ca tion bodies. Imports may be New Zealand 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 Organic agricul ture is well developed in New equiva lent by an AQIS- accredited cer ti fi ca tion body. Zea land. It pro duces the entire range of arable crops Prod ucts from coun tries whose organic stan dards and (e.g. cereals, pulses), meat and meat prod ucts inspec tion systems are recog nized by AQIS as (including lamb), fruits and vege ta bles, and honey, equiva lent to those of Aus tralia may be imported both for national con sump tion and for export. The freely. farms include indigenous Maori coopera tives and inde pendent family farms. About 50 farms follow the Useful addresses bio dy namic method. New Zea land is experi menting BFA with organic fish eries as well. (Biological Farmers of Australia) POB 3404, Toowoomba Village Fair There are suf fi cient proc essing facili ties for prod ucts Queensland 4350 such as dairy prod ucts, meat products, baby food, Tel: +61-7-46393299 wine, proc essed and frozen fruits and vege ta bles, Fax: +61-7-46393755 culi nary oils, sauces and herbal teas. Organic 100 in E-mail: [email protected] Kau ka pakapa pro duces organic fer til izer. Web site: http://www.bfa.com.au (Production, development) Exports of kiwi fruit, pro moted by the New Zea land Biodynamic Agricultural Association Kiwi Board, are increasing, not with standing growing Poweltown, Victoria 3797 com pe ti tion from coun tries like France and Italy. The Tel: +61-59667333 com pany Zespri Inter na tional exported more than Fax: +61-59667433 3,000 tons of kiwi fruit in 1997. Among the other (Control, certification) important export items are apples, pears and lamb. 90 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

The main export mar kets are Japan (which absorbs 2,000 tons of coffee, 800 tons of copra, 100 tons of 78% of all exports), and the Euro pean Union. pine apple, 500 tons of cocoa, 1.5 tons of vanilla and 1.2 tons of pepper. Some roasting and packing for Total exports rose from NZ$ 7.5 mil lion in 1994/95 to end- consumption takes place in the country. It also NZ$ 23 mil lion 1996/97. The leading exporters pro duces pine apple juice and tea. belong to the Organic Prod ucts Exporters’ Group (OPEG). Some farms are managed by Austra lian and Euro pean farmers. Ger many’s Pro trade/GTZ has Lincoln Uni ver sity of Christ church, an impor tant promoted the conver sion of a coffee plan ta tion to centre for organic research, was the first Oceanian bio dy namic farming. Among the cer ti fied proc essing host (in 1994) of the bien nial IFOAM Scien tific com pa nies is a pineapple- juice pro ducer and various Con fer ence and Gen eral Assembly. coffee proc es sors.

BIO-GRO (Bio logical Producers and Consumers About 200 tons each of tea and coffee are exported Council Inc.) cer ti fies 300 pri mary producers and yearly. The main mar kets are Aus tralia and the proc es sors; it has been accred ited by IFOAM. Euro pean Union. Some traders arrange for the cer ti fi ca tion of the coffee pro duced by small holders. Useful addresses Aus tra lia’s NASAA is the main certi fier in Papua BDFGANZ New Guinea. (Bio Dynamic Farming & Gardening Association in New Zealand, Inc.) PO Box 306, Napier Tonga Tel: +64-45895366 Fax: +64-45895365 Tonga is a fairly sig nifi cant producer of vanilla, (Production) which is mainly exported to Europe.

BIO-GRO Useful address PO Box 9693, Marion Square, Wellington 6031 Tel: +64-48019741 Fax: +64-48019742 TOAA E-mail: [email protected] (Tonga Organic Agriculture Association) (Control, certification) PO Box 14, Nukualofa Tel: +676-22355 LEO Fax: +676-24271 Lincoln University Biological Husbandry Group (Control, certification) PO Box 61, Lincoln University, Canterbury Tel: +64-33252811 Fax: +64-33253855 Other Oceania E-mail: [email protected] (Production, development) Organic agricul ture is in its initial stages in a few other countries in Oceania, although cer ti fi ca tion Papua New Guinea does not yet take place in Kiribati, the Marshall Islands, the Fed er ated States of Micronesia, Nauru, In the mid 1990s, Papua New Guinea had 4,265 Palau, Samoa, the Solomon Islands, Tuvalu and hec tares under organic farming. Its yearly output was Vanuatu.

Europe

Organic and bio dy namic agri cul ture had their cradle Europe came in the 1980s and today the European in Germany (see country chapter) and the United Union is the leading producer of, and the largest Kingdom, spread rap idly to the Neth er lands, market for, organic prod ucts in the world. Over the Swit zer land and the rest of Europe and from there, in last decade and a half, EU organic farming devel oped the late 1920s, to the United States and sub se quently extremely rap idly, with the area cer ti fied and under to the rest of the world. The big devel op ment in con ver sion rising from 0.11 mil lion hec tares in 1985 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 91 to nearly 1.4 mil lion hec tares in 1998 or at annual util ized agricul tural land managed organically. growth rates sometimes exceeding 20%. In Central Swit zer land comes next with almost 7%, fol lowed by and Eastern Europe, growth rates in the 1990s were Fin land with close to 6%, Sweden with 3.4% and even higher; how ever, proc essing, manu fac turing, Italy with 3.20%. In the southern Euro pean coun tries local distri bu tion and exporting are still heavily of Greece, Italy, Portugal and Spain, the rise in under de vel oped which can cause a slow down. organically farmed areas has been par ticu larly high since the early 1990s. For instance, in Spain, this area In EU and EFTA coun tries, organi cally man aged land expanded more than four times between 1991 and made up 1.45% of the util ized agri cul tural area in 1995. How ever, in that country as well as in Por tugal 1998, com pared with 1.4% for EU alone. The most and Greece, the share of organic farming is still well exten sive organically farmed areas are in Italy below 1%. (550,000 hec tares), Ger many (351,062 hec tares) and Aus tria (350,000 hec tares). In terms of per cent ages, The total number of farms cer ti fied and under Austria stands on top with more than 10% of the con ver sion in Western Europe rose from 13,908 in

Table 4.1 Europe (EU and EFTA) a/: organic agriculture in figures

Agricultural land Number of farms

Country % share in all Organic % share in (hectares) agricultural Rank Organic all farms Rank land

Austria (mid 1998) 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 Greece (March 1998) b/ 6 000 0.09 18 1 065 0.67 12 Iceland (area: end 1997, farms mid 1998) 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

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 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

1990 to an esti mated 85,000 in 1997-1998, up by with 345,375 hec tares, third after Italy and Ger many. more than 600%. Gen er ally speaking, the market has In terms of the shares of organic land and farms in the been growing faster in the north, pro duc tion faster in overall agri cul tural figures, it is second after the south. How ever, in the 1980s and 1990s, Liech ten stein, with 10.1% of the land and 8.3% of all produc tion in the north developed rap idly and, farms. espe cially the last five years, southern mar kets have expanded con sid erably. Today, the mar kets in France Aus tria’s small and exten sive farms, averaging 14 and Italy are booming and that of Spain is growing. hec tares, would have had great dif fi culty com peting with cheap imports from the more inten sive The com mit ment of indi vidual countries to organic produc tion systems in the European Union, and farming varies con sid erably. Some coun tries, such as con ver sion to organic pro duc tion with its value added Sweden, have officially set a target of 10% of all was con sid ered a good way of defending its farms. agricul tural land under organic manage ment by the The milk farms came first, and around 80% of the year 2000 (30% by 2010); Austria has already cer ti fied organic land area is grass land. By mid 1998, exceeded this level. Other countries have more almost 20,000 farms (of which about a third were in modest or no tar gets for the devel op ment of organic con ver sion) were organic. farming. Some EU regu la tions, especially EC Regu la tion 2078/92, sup ported by Regu la tion Roughly 152,000 milk cows (out of a total of 338,000 2092/91, are having a sig nifi cant impact on the bovine heads) pro duce around 300 million kg of milk growth of the organic sector. How ever, the lack of annu ally, equiva lent to almost 10% of all milk market devel op ment and con sumer aware ness pro duced. Addition ally there are 40,000 heads of remain impor tant inhibi tors in cer tain sec tors, in beef cattle, 40,000 pigs and 227,000 chickens. particular the market for organic livestock prod ucts. None the less the organic dairy, poultry and egg While organic milk is currently over- produced, the markets are well established and the meat market, output of grains, fruits, vegeta bles is still much although still small, is growing strongly. smaller than demand, so imports have grown, espe cially from Ger many, Hun gary and Italy. Although European pro duc tion has devel oped well, imports remain massive. While pro duc tion and The con ver sion rate slowed down con sid erably in the proc essing facili ties are avail able in all food sectors, two years to end 1998, par ticu larly because of the many main stream food com pa nies have not yet joined the organic band wagon. Sup plying coun tries can satu ra tion point reached in the dairy sector. The State there fore realize much value added if they run their continues to subsi dize organic farms as part of a proc essing and manu fac turing facili ties according to programme for furthering ecol ogi cally sound strin gent Euro pean quality and service cri teria. agricul tural systems (the ÖPUL programme). In 1996, the pro gramme paid around S 756 mil lion ($66 Despite the fact that many farms produce their own mil lion) to organic farms; of this, half was financed animal feed, there is a con tinuous shortage of this by EU and the rest by the State. In addi tion, the State item and hence large imports. EU imports grains sub si dizes organic farmers’ associa tions and their (wheat, millet, rice), oil crops (sesame, sun flower, umbrella organi za tions ARGE and ÖIG. The national saf flower, palm, coconut) and pulses (soy, beans) as mar keting organi za tion AMA (Agrar Markt Aus tria) well as all tropical prod ucts. The main sup pliers are sub si dizes organic mar keting schemes out of the United States, Latin America and Eastern Europe. con tri bu tions from organic farmers; more than a third The lack of sup plies of organic seed for sowing is of the coun try’s organic farmers are not associ ated another problem commonly faced by organic with the organi za tion. farmers, and non- organic seed continues to be widely used. Ini tia tives to improve this situa tion are being As in Ger many, a large number of con trol bodies (22) taken, partly as a result of EU regu la tions. operate according to EC Regu la tion 2092/91, the Aus trian food law as well as pri vate stan dards (for Austria animal products). This number will be greatly reduced when the State accredi ta tion system Production and control com pletes its task. The largest con trol and cer ti fi ca tion body, ABG (Austria Bio garantie), In terms of the area under organic farming, Aus tria is, con trols almost 50% of all organic farms. CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 93

Processing and manufacturing ARGE-Biolandbau Wickenburggasse 14/9, A-1080 Wien Austria has a large number of organic proces sors, Tel: +43-1-4037050 manu fac turers and whole salers. The German organic Fax: +43-1-4027800 (Umbrella organization of farmers’ associations) baby food com pany Hipp has an Aus trian sub sidiary in Gmunden. Molk erei Pinzgauer in Mais hofen is the Austria Biogarantie GmbH domi nant organic dairy com pany. Agrana Stärke in Königsbrunnenstrasse 8, A-2202 Enzersfeld Gmünd pro duces organic starch and is an impor tant Tel: +43-2262-672212 exporter. Fax: +43-2262-674143 (Control and certification body)

Retailing and trading EP Naturprodukte Handels GmbH A-6300 Itter 300 The national organic retail turnover, cal cu lated in Tel: +43-5332-75654 terms of wholesale values, was esti mated at S 2 Fax: +43-5332-75656 bil lion ($170 mil lion). This was equiva lent to 2% of E-mail: engelberts-naturprodukte@tirol the overall food market. As indi cated above, some [email protected] organic prod ucts like milk have over 10% of their Web site: http://www.engelberts-naturprodukte.de (in Germany) respective mar kets. Domestic prod ucts have around (Packer and wholesaler) two thirds of the overall turn over, and imports a third. Ernte für das Leben The main super market mul ti ples Billa/Merkur (brand Europaplatz 4, A-4029 Linz name: Ja, Natür lich!) and Spar (organic brand: Natur Tel: +43-732-654884 Pur), together with some minor chains, sell 70% of all Fax: +43-732-65488440 organic prod ucts. The share of Billa/Merkur alone (Farmers’ association, marketing and development) was cal cu lated in 1996 at close to S 1 bil lion. About Ja! Natürlich, Naturprodukte GmbH 10% of all prod ucts are dis trib uted through direct IZ-Süd Strasse 3, Objekt 16, A-2355 Wiener Neudorf sales and the catering sector; about 13% are sold Tel: +43-2236-6007960 through natural and health food shops. It is felt that Fax: +43-2236-6007690 dis tri bu tion through these other out lets should be (Organic arm of the Billa/Merkur supermarket strength ened. chain)

EP (Engelbert Per linger) in Wörgl is an impor tant Belarus importer, packer and wholesaler. It also exports to Ger many and Italy. There are sev eral prom ising organic ini tia tives and an organic farmers’ organiza tion is being set up. The The farmers’ asso cia tion Ernte für das Leben Gov ern ment is sup por tive of these ini tia tives. (Har vest for Life) and the umbrella organiza tion ARGE are impor tant part ners of the food industry Useful address and the retail sector, and are extremely active in Beleko mar keting. Ernte für das Leben has cre ated Ökoland Ul. Terechkovoi 28, 230600 Grodno Öster reich Ver triebs GmbH for mar keting pur poses. Tel: +375-152-472062; +375-152-449989 Ernte für das Leben is a partner of the national Fax: +375-152-471497 [email protected] cer ti fi ca tion body ABG. These bodies can be (Production, development) con tacted by third- country organic sup pliers. Belgium Ernte für das Leben pub lishes a major maga zine on organic farming. Production

Useful addresses Whilst con sump tion of organic prod ucts in Bel gium Agrana Stärke-Gesellschaft mbH rose con stantly over the past decade or so, pro duc tion Conrathstrasse 7, A-3953 Gmünd remained under de vel oped and most prod ucts Tel: +43-2852-503381 con sumed domes ti cally were imported. How ever, in Fax: +43-2852-503361 more recent years, notable changes have occurred in (Processing and trading) the livestock and dairy sector in Wal lonia, mainly 94 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY bovine, in regard to the pro duc tion of both meat and organic chocolate; milk. To boost vegetable production, the Federal q Meurens Natural sa (Herve): cereal-based Government in 1999 tripled the hectare subsidy until natural sweeteners; at least the end of 2000. The subsidy for grassland, however, was reduced. q MIK nv/Indumel nv (Kruishoutem): yoghurt and other dairy products; In 1997 there were 107 organic farms on 820 hec tares q Natural Bio Mills (Oudenaarde): milling; in Flan ders and 184 farms on 5,598 hectares in Wallonia, representing roughly 0.5% of the total q Ortis sprl (Elsen born) and Biolife (St agri cul tural area in Belgium. In 1998 there was a rise Genesius- Rhode): medicinal herbs, and other to 1,099 hectares in Flanders and 10,745 hectares in medicinal and nutri tional prepa ra tions; Wallonia. q Soubry nv (Roeselare): pasta;

The main out puts are cereals, milk and beef (pro - q Vondelmolen nv (Lebbeke): spice bread; duced predomi nantly in Wallonia) and vegeta bles q Candico nv (Merksem): sugar. (grown mainly in Flan ders). Some quanti ties of chicken meat, pork and fruits are also pro duced. There are a multi tude of smaller dairy plants, bakeries, makers of tofu-seitan and vege tari an While Bel gium imports all these prod ucts, it also burgers, and beer brew eries (e.g. Brasserie Dupont in exports substantial quan ti ties of green house products Tourpes). De Meer schaut in Ghent imports organic such as tomatoes, cucumbers and paprika as well as salmon. Biomilk sa in Vielsalm is the main milk substantial quantities of processed products like rice collector; it obtained 7 million - 8 million kilo grams cakes, soy drinks and des serts, chocolate and in 1998 and expects this figure to rise to 10 million cereal-based sweeteners. kilo grams in 2000.

Processing and wholesale trading Brava cvba (in Kampenhout) is a public fruit and vegetable auction dealing mainly with organic The value of the Bel gian organic market can be produce. Groupement Viande Biologique Origine esti mated at BF 2.5 bil lion - BF 3 bil lion, which is Belge scrl (GBVBOB) in Libramont is the main roughly 0.3% of the overall food market. Bel gian bovine producers’ group. Biomarché scrl proc es sors, traders and packers import the larger part (Sombreffe) and Biofresh nv (Sint Kathelijne Waver) of their raw mate rials. The company Lima, until the are the dominant fruit and vegetable packers and 1980s one of Euro pe’s largest proc es sors of organic importers. Reformwaren nv (Maldegem), Natudis nv products, has since become mainly a packer. (Tienen) and Hagor nv in Lubbeek (of the French How ever, it continues to process rice cakes and Distriborg group) are the leading wholesalers- vege tarian prod ucts. Lima exports a vast array of dry importers of grocery products. OAO in Brussels has prod ucts to many coun tries all over the globe. just launched a gourmet assortment of organic products. Reformwaren and Lima, belonging to the Among the other impor tant proces sors are the same owners, merged in late 1998 with Natudis, the following: Belgian subsidiary of the dominant Netherlands wholesaler of the same name. Ostara bvba q Alpro nv (Wevelgem): soy drinks and desserts, (Horebeke) is a broker-importer of raw materials and margarine; processed products, as is Olans Agrotrade in St q Bioline Europe nv (Antwerp): ready meals. Amandsberg. Most of the above companies are members of the professional union Probila/Unitrab. q Cidre Stassen sa (Aubel) and Pajottenlander (Pepingen): juices; Retail trade q Delifrance Belgium sa (Nivelles) and La Lorraine NV (Ninove): industrially baked organic bread. The retail trade is well devel oped. There are about 400 natural food and Reform or health food shops, q Döhler/Citrusco (St Truiden): organic food some of which are small super mar kets. Most of the ingredients (mainly from fruits); larger cities have farm ers’ mar kets. Del haize Le Lion, q Callebaut nv/Kraft Jacobs Suchard nv (Halle): a leading supermarket chain, has been carrying for CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 95 over a decade an organic assort ment which now Biogarantie asbl con sists of both fresh and proc essed foods, including (Biogarantie’s secretariat is located at Blik and organic smoked salmon. The largest mul tiple retailer, Ecocert, see below) GB, car ries the French generic brand Le Goût de la (Owners of the organic label Biogarantie) Vie for pack aged prod ucts as well as a range of fresh Blik vzw prod ucts. The main dis counter, Col ruyt, sells a small Uitbreidingsstraat 392D, B-2600 Berchem assort ment of dried goods as well as some fresh fruits Tel: +32-3-2812152 and vege ta bles. Smaller chains like Battard are Fax: +32-3-2817469 increasingly introducing organic prod ucts. Most E-mail: [email protected] mul ti ples are step ping up their organic pro grammes. (Control body) Ecocert Belgium sprl Control and certification Chemin de la Haute Baudecat 1 B-1457 Walhain There are two State-accredited con trol bodies: Blik Tel: +32-81-600377 and Eco cert. The main farmers’ organi za tions are Fax: +32-81-600313 Bel bior in Flan ders and Unab in Wal lonia. There are E-mail: [email protected] Web site: http://www.ecocert.be also a number of bio dy namic farmers and proc es sors. (Control body) Velt in Flan ders and Nature et Pro grès (in Wal lonia), both asso cia tions of farmers and gar deners, are active Ets Delhaize Frères & Cie “Le Lion” sa at the con sumer level. Blivo in Flan ders and Crabe in Osseghemstraat 53, B-1080 Brussels Wallonia extend technical exper tise to farmers. All Tel: +32-2-4122111 these organiza tions as well as Pro bila/Uni trab are Fax: +32-2-4122194 E-mail: jtgeelhand@delhaize-le-lion-be united in the umbrella organiza tion Bio Forum vzw. Web site: http://www.delhaize-le-lion-be Biogarantie vzw groups the owners of the Bel gian (Main supermarket chain carrying organics) organic seal (Bio garantie). European Office of Preparators & Distributors of Information source Organic Products Bd Louis Schmidt, 119-bte 3B, B-1040 Brussels Tel: +32-2-27438202 Bel gium is the seat of Bio food.Net, a global organic Fax: +32-8-5270104 informa tion platform on the Internet. Bio food.Net is (European federation of organic processors and building up a consumer sec tion, with infor ma tion in traders) the lan guage of the consumer, as well as in English. The busi ness sec tion has an organic master guide, Hagor nv which allows one to find out who is who in the organic Ambachtenstraat 4, B-3210 Lubbeek Tel: +32-16-620711 world, an elec tronic news and infor ma tion service as Fax: +32-16-621421 well as an electronic trade journal where offer and (Wholesaler) demand can meet, without Bio food.Net inter fering as a broker or inter me diary. All access is free. Income Lima/Reformwaren NV comes from adver tise ments. Industrielaan 11, B-9990 Maldegem Tel: +32-50-710564 (Lima); +32-50-713811 (Reformwaren) Useful addresses Fax: +32-50-710567 (Lima) Biofood.net (Packer-wholesaler) Chemin des Maréchaux 35, B-1300 Wavre-Limal Tel/Fax: +32-10-410675 Max Havelaar vzw E-mail: [email protected] Leopold II Laan 184D, B-1080 Brussels Web site: http://www.biofood.net Tel: +32-2-4116462 (Organic information platform on the Internet) Fax: +32-2-4116005 E-mail: [email protected] (fair trade) BioForum vzw Rue Saint Médard 4, B-1370 Jodoigne Natudis nv Tel: +32-10-814050 Hamelendreef 85, B-3300 Tienen Fax: +32-10-814346 Tel: +32-16-816156 (Umbrella organization for farmers, processors, Fax: +32-16-821298 traders) (Wholesaler) 96 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Ostara bvba Tel: +359-3358365 Kerkplein 5, B-9667 Horebeke (Organic producers’ association) Tel: +32-55-456734 Fax: +32-55-456741 Foundation for the Development of Sustainable (Importer) Agriculture Slavekov Plz 9, App. 8 Probila/Unitrab 1000 Sofia Kerkplein 5, B-9667 Horebeke Tel: +359-2-9816498 Tel: +32-55-456734 (Extension service) Fax: +32-55-456741 (Organization of processors and traders) Croatia Triodos Bank Voskenslaan 97D, B-9000 Gent Production Tel: +32-922-04044 Fax: +32-922-04875 BIOS, an asso cia tion for organic farming, E-mail [email protected] (Ethical banking, involved in organics) envi ron mental pro tec tion and health improve ment founded in June 1991, works for the pro mo tion of WOSC produc tion and trade in organic prod ucts. It has (World Organic Supermarketing Club) adopted produc tion stan dards that are based on the Parvis Saint Roch 3, B-1324 Chaumont-Gistoux IFOAM basic standards, and has formed a con trol Tel: +32-10-681387 and advi sory group. Fax: +32-10-681112 E-mail: [email protected] (Group of supermarkets involved in organics) By early 1995, eight family farms (cov ering 50 hec tares) had con verted to organic farming, ena bling them to label their prod ucts with the reg is tered trade Bosnia and Herzegovina mark Bios Croatia. Another 10 farms total ling about There are sev eral local ini tia tives, including organic 70 hec tares were under conver sion. The area is mar keting activi ties mainly in Sara jevo. The country cropped as fol lows: 40% - 50% under grains and oil is a member of AgriBio Medi ter raneo (see Italy). crops (maize, soy bean, sun flower); 20% under forage crops (clover mixtures, mixtures of common vetch, Useful address peas and cereals, and some root crops); 10% - 15% under vegeta bles and other prod ucts that can be GBOFA B mar keted directly; and 5% - 10% under peren nial (Great Brijesnica Organic Farmers’ Association) Beta, S. Tomica 1, 10000 Sarajevo crops (orchards and vine yards). The rest is mostly Fax: +387-71-652423 natural grass land and woods. E-mail: [email protected] (Production, processing, development) Croatia is member of the AgriBio Medi ter raneo (see Italy). Bulgaria Trade Organic agricul ture is at the initial stages of devel op ment. Some Western European com pa nies It is dif fi cult to sell organic prod ucts in Croatia as the are attempting to produce herbs, fruits and other con sumers are not familiar with organic food prod ucts for export. prod ucts and their pur chasing power is low. A small chain of special ized shops sup plying a range of Useful address con trolled organic prod ucts has been set up. Sales are Agricultural University Plovdiv still mainly aimed at tourists and the home market Agroecol Centre, 12 Mendeleev Street although attempts to export are being under taken. 4000 Plovdiv Tel/Fax: +359-32-265909 Useful addresses (Development) BIOS Bio-Bulgaria c/o Trim-Rosa, A. Hebranga 5, 10000 Zagreb Ivan Vazov Str. 47 Tel/Fax: +385-1-4819276 4300 Karlovo (Inspection, production, processing) CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 97

Eko Liburnia (Consulting, development) Jelacicev 1/III, 51000 Rijeka Tel: +385-51-331184 NRFH Fax: +385-51-212948 (Nadace Rytire F. Horského) E-mail: eko-liburnia&ri.Tel:hr K. Netlukam 958, 10400 Prague 10 - Uhrinéves (Producer, processor) Tel/Fax: +420-2-67712143 E-mail: [email protected] EKOP-ISTRA (Consulting, development) C. Huguesa, 52440 Porec Tel: +385-52-211672 Pro-Bio Fax: +385-52-232119 PO Box 116, 78701 Sumperk (Producer, processor, trader) Tel: +420-649-216609 Fax: +420-649-214586 Czech Republic E-mail: [email protected] (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 Estonia coverage (up from 260 hectares in 1989). Of these, 6,500 hec tares were prairie land, 513 hec tares were Production orchards, and the rest were under field crops (e.g. wheat and vege ta bles). Gov ern ment sup port since In 1998 120 farms cov ering 3,000 hectares were 1998 has been boosting the growth of the sector. under cer ti fied organic and bio dy namic produc tion. The main prod ucts are dairy prod ucts (drinking milk, Processing, distribution and certification curd, butter and cot tage cheese), pota toes, grains, vege ta bles, herbs and honey. The country uses a growing number of raw mate rials for proc essing such prod ucts as buck wheat tea, Processing, trading bulgur, pasta and spelt coffee. The under de vel op ment of the domestic market remains a serious problem. Most proc essing, packing and even sales are organ ized Many prod ucts and vir tu ally all animal prod ucts are by the farmers them selves. An increasing number of still sold con ven tion ally. There are a number of health retail shops, including super mar kets, are picking up food and natural food stores in Prague, Kar lovy, Vary, organic prod ucts. There are no exports as yet. Brno and other urban areas, including 40 run under a Pro-Bio fran chise. Super mar kets have so far shown An organic law was passed in 1977. The Eesti little interest in selling organic prod ucts, but this Biodünaami kaühing Tartu Ökoin senerike skus situa tion is changing and two chains have picked up (Estonian Bio dy namic Asso cia tion Centre for their first organic prod ucts. Ecological Engineering Tartu) is the main cer ti fi ca tion body. Exports to the European Union, for example of wheat, are con sid er able but stag nating because of Useful addresses increased competition. Around 80 organic items are Estonian Biodynamic Association Centre for imported from the Euro pean Union. Ecological Engineering Tartu V. Jannseni 4, EE-2400 Tartu KEZ is the con trol body. Cer ti fi ca tion takes place Tel: +372-7-422051 through a mixed com mittee involving the Min istry of Fax: +372-7-422746 Agri cul ture. E-mail: [email protected] (Production, development, certification) Useful addresses Estonian Chamber of Agriculture & Commerce FOA J. Vilmsi 53B, EE-10147 Talinn (Foundation for Organic Agriculture) Tel: +372-6419007 Kubatova 1, 10200 Prague 10 Fax: +372-6419008 Tel: +420-2-751046 E-mail: [email protected] Fax: +420-2-6849107 Web site: http://www.epkk.ee E-mail: [email protected] (Information) 98 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Finland proc es sors and manu fac turers were under inspec tion by the National Food Admin istra tion. More than half Production were cereal proc es sors (such as mills and bak eries). Many proc essing units are farm- based. Proc essing is Fin land is one of the world’s most advanced organic mainly at the pri mary level in the bev erage, fruit, pro ducing coun tries. At the end of 1998, there were potato and vege table sec tors. about 5,100 farms, equiva lent to 6% of all farms. They cov ered 126,000 hec tares (5.9% of all In the beginning, the devel op ment of the domestic agricul tural land), of which 40,000 hec tares are still market was dif fi cult and pro gressed slowly from the under con ver sion. The average size of an organic first stage of on- farm sales and farm ers’ mar kets to farm is 24.3 hectares, about 10% larger than lim ited suc cess in a few natural food stores in each of con ven tional farms. the larger towns. Supermar kets refused to take up unco or di nated product assortments associ ated with The organic idea is old and was influenced by the insuf fi cient service. great Fin nish bio chemist Art turi Vir tanen (1895-1973). Modern organic devel op ment started in Nowa days there are a mul ti tude of mills and bak eries, the 1960s, accel er ated in the 1980s and exploded in and cereal prod ucts can be found in all the major the 1990s. Between 1995 (the year Fin land joined the super mar kets, which also carry imported organic Euro pean Union) and 1996, the number of farms rose prod ucts. The supply of pota toes and vege ta bles is from 2,793 to 4,452. Since them, organic farming has insuffi cient and increasing quanti ties of these spread from the exten sive sys tems in the middle of prod ucts are obtained from abroad. In 1997, 5 mil lion Fin land (Kainuu, Mik keli, Pirkanmaa, Vaasa) to the kilo grams of organic milk were proc essed by 4 dairy more inten sive systems in the south (Sata kunta, plants into milk, yoghurt, cream, butter milk and a Uusimaa, Varsinais- Suomi). range of tra di tional Fin nish dairy prod ucts.

About 45% of the area under culti va tion is The mar keting of organic meat remains a problem. pastureland; 40% is planted to cereals, particu larly The Fin nish Asso cia tion for Organic Farming barley, oats and rye; 2% to pota toes; 2% to vege ta bles, (Luomu-Liitto) is coordi nating the activi ties of 15 2% to other crops. About 8% of the land is left fallow. regional producer- owned mar keting organi za tions in Fruits are cropped on 960 hectares, of which 16 order to improve this situa tion and a State-funded hectares are planted to apples and the rest mainly to promo tion organiza tion for organic prod ucts straw ber ries and many other kinds of ber ries and small (Fin food) has been set up. fruits. Herbs are cul ti vated on 30 hec tares. In gen eral, con sumer interest in organic foods is high. Around 65,000 square metres of greenhouses The moti vating fac tors are the absence of pro duce pri marily cucum bers and toma toes. There con tami nants and other health issues, taste, and the are 33,300 hec tares of grass land. envi ron ment. Insuf fi cient sup plies remain an obstacle to increased consump tion. A few prod ucts are Roughly half of the organic farms carry live stock, but exported to Scandi na via and the European Union: only a small number (350 in 1998) were cer ti fied for baby food, bis cuits, liq uo rice, rape oil and rye bread. animal pro duc tion. The rea sons are: total con ver sion is not obliga tory and, above all, facili ties for the Control, certification proc essing and mar keting of organic animal prod ucts are not suffi ciently developed. In 1996 35% of the Luomu-Liitto, the Fin nish Asso cia tion for Organic cer ti fied animal produc tion units were dairy farms; Agri cul ture, published stan dards in 1986 (vegetal), 24% raised beef cattle, 19% sheep, 15% poultry, 11% 1988 (animal) and 1989 (processing) and was until pigs and 1% goats. Many farms had mixed herds. 1994 respon sible for cer ti fi ca tion. This respon si bility About 12% of the farms also had api aries. As more has since been taken over by the Min istry of fodder becomes available, more animal farms are Agriculture and Forestry and the rele vant con trol expected to con vert to organic sys tems. bodies which func tion according to EC Regu la tion 2092/91. The State has no organic seal and most Fin - Processing and trade nish organic prod ucts carry the seal of Luomu- Liitto or of the Biody naaminen Yhdistys/Bio dy na miska By the end of 1998 about 500 organic food Fören ingen (Fin nish Bio dy namic Asso cia tion). CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 99

Useful addresses other fruit (kiwi fruit, apri cots, apples), medicinal and Biodynamic Association aro matic herbs, pulses and vege ta bles. Uudenmaankatu 25A4, FIN-00120 Helsinki Tel: +358-9-644160 Some green houses are run organi cally. There are no Fax: +358-9-6802591 cer ti fied animal farms, although demand is growing E-mail: [email protected] for organic feta cheese and honey. Web site: http://www.biodyn.fi (Development, certification) Greece is a member of AgriBioMedi ter raneo (see Kesko Corporation Italy). PO Box 152, FIN-0133001 Vantaa Tel: +358-105328774 Processing and trade Fax: +358-105328704 E-mail: [email protected] Proc essing facili ties are basic and con sist mainly of (Retail trade) oil and grain mills, struc tures for drying fruit, and Luomu-Liitto ry packing plants. (Finnish Association for Organic Agriculture) Postbox 42, FIN-01301 Vantaa Domestic distri bu tion is being built up gradu ally. Tel: +358-9-41349600 Sales are made through farm ers’ mar kets and natural Fax: +358-9-41349601 health food stores, of which there are over 20 in E-mail: [email protected] Athens and 25 - 30 in the provinces. Supermarket Web site: http://www.luomulehti.luomu-liitto.fi chains such as Alfa Beta have started to introduce (Development, certification) organic assort ments, especially of fruits and Plant Production Inspection Centre vegeta bles. A number of stores in the large cities, PO Box 111, FIN-32201 Loimaa mainly Athens and Thes sa lo niki, also carry imported Tel: +358-2-76056436 proc essed products. The con sumer asso cia tion Fax: +358-2-76056220 Dorippi in Athens, with more than 1,500 mem bers, E-mail: [email protected] facili tates the pur chase of organic prod ucts. Web site: http://www.ananda.fi/kttk/luomuvalvonta (Plant inspection, information) The bulk of the coun try’s organic output is exported, mainly to the Euro pean Union. Ger many is the most France (see chapter 7) important market, followed by countries such as France and the Neth er lands. Com pa nies such as Germany (see chapter 8) Bio- Zeus in Kala mata (which han dles fruits and uses the brand name Bio- Kyklos) and Bläuel Greek Greece Organic Prod ucts in Pyrgos Lefk trou near Kala mata (which deals in olive oil) have been established to Production coor di nate pro duc tion, proc essing and exporting for the benefit of pro ducers from all over Greece. In March 1998, Greece had 1,065 organic farms (0.7% of all farms) on around 6,000 hec tares (0.1% of Certification all agri cul tural land). In the 1980s, Western Euro pean traders such as Fertilia (now Natudis) in the SKAL has long been the most active for eign con trol Neth er lands and Rapunzel in Germany made it organiza tion in Greece. In confor mity with EC possible for Greece to estab lish its first organic Regulation 2092/91, the State has accred ited three proj ects, such as those for the pro duc tion of cur rants Greek cer ti fiers: Soge Syllogos Oik olo gikis Geor - by the Agri cul tural Coop era tives Union (ACU) in gias Elladas (Asso cia tion of Organic Agri cul ture of Aeghion, and of olives and olive oil in Mani, the Greece), DIO- Certification & Inspec tion Organi za- Pelopon ne sian penin sula south of Kalamata. Since tion of Organic Products, and Fysiolo giki Foreas then numerous farmers have con verted to organics. Elegchou kai Postopiisis Viologikon Proionton. About 60% of the output con sists of olives and olive Soge has been active as a farmers’ organiza tion oil; 11% of wheat; 10% of cur rants, rai sins, and wine; since 1985. Today, DIO cer ti fies more than 50% of 5% of citrus fruits; 3% of cotton; and 3% of wal nuts all organic farms. Fysiolo giki is active only in and almonds. Among the other organic pro duce are Mace donia. 100 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Useful addresses hectares were reg is tered, but not all have asked for Alfa-Beta Vassilopoulos sa cer ti fi ca tion. The cer ti fied area consists mainly of 81, Sparta Avenue, GR-Gerakas-Athens pastures and crop land. In a natural reserve in Tel: +30-1-6612501 Hortobágy, Hortobágy GG runs over 600 hectares Fax: +30-1-6612675 organically, raising, among others, longhorn grey (Supermarket chain carrying organics) cows, a threatened species, for meat production. Bio Forum PO Box 1028, GR-71001 Heraklion The livestock raised comprises goats, cows and Tel: +30-81-752009 chickens; honey is also produced. Fax: +30-81-752651 E-mail: [email protected] The country’s main crops are grains (winter wheat: (Processing, trade) 4,800 tons, maize: 1,800 tons, and spelt: 1,600 tons), DIO barley, rye and oats. Millet and pumpkin seeds are (Certification & Inspection Organization of Organic pro duced, as are fresh fruits (ber ries, apples, melons), Products) vegeta bles, mush rooms, paprika, peppers, herbs and Aristonikou 23-25, GR-11636 Athens nuts. Tel: +30-1-9231466; 9232259 Fax: +30-1-9224685 In 1990 Hungary hosted an IFOAM scientific E-mail: [email protected] (Control, certification) conference and general assembly, the first Eastern European country to do so. EEVE (Enosi Epangelmation Viokalliergiton Elladas) Processing And. Metaxa 13-15, GR-10681 Athens Tel: +30-1-5905823 Fax: +30-1-3304647 Proc essing is increasing. Among the out puts are fruit (Production, development) juices (apple juice); frozen prod ucts (peas, onions, car rots, fruits); baby food; dehy drated vege ta bles and Fysiologiki fruits; dried herbs; herbs and spices (paprika, red (Fysiologiki Foreas Elegchou kai Postopiisis pepper). The proc essed output is mainly exported Viologikon Proionton) although some baby food, for instance, is sold on the 24N Plastiras Street, GR-59300 Alexandria Tel: +30-333-22113 domestic market. The German baby food producer Fax: +30-333-24444 Hipp has a subsidiary in Budapest. (Control, certification) Trade Soge (Association of Organic Agriculture of Greece) The main export mar kets are Aus tria, Ger many and 26 Averof, GR-10433 Athens Tel: +30-1-2688227 the Neth er lands. Among Hungary’s import products Tel/Fax: +30-1-2687027 are oil crops (sunflower: 2,300 tons, and soy). (Control, certification) The domestic market is extremely small with only a Hungary few natural food and Reform shops carrying a limited range of organic products. A weekly organic market Production is organized by Biokultúra in Budapest. Some sales take place at the farm gate. Organic agri cul ture has been car ried out in Hun gary since 1983 and has been devel oped in col labo ra tion In the middle of 1999 the organic sector started with Aus trian, German and Neth er lands importers. organizing itself for entry into the supermarket sector. Hungary was one of the first countries to obtain equiva lency to EC Regu la tion 2092/91 and this has Virtually all production is exported: 40% to stepped up the interest of EU market players in its Germany, 20% to Austria, 20% to Switzerland and organic prod ucts. The cer ti fied area expanded slowly about 10% to the Netherlands. The Hungarian until 1992, but increased signifi cantly in the mid organization Ökoszerviz and the Swiss company W. 1990s to an esti mated 23,000 hec tares in 1996. Kundig & Cie AG, which has a subsidiary in Budapest, have been instrumental in developing In mid 1999, around 350 farms with about 25,000 organic exports. CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 101

Certification output includes barley, oats; cabbage, car rots, cau li flower, and other vegeta bles and herbs; fodder The local body Biokontroll Hungária Kht and SKAL beet and hay; pota toes and rape seed. Cucumber, are the two certifying bodies. Demeter cer ti fies to paprika and toma toes are grown in geo thermic bio dy namic standards. Biokontroll, with the green houses. Several cos metic firms, such as the assistance of The Soil Association, is also active in Blue Lagoon, use organically grown raw mate rials, neighbouring countries. mainly herbs. Wild Ice landic moss is a world- famous product. Useful addresses Biokontroll Hungária Kht Processing and trade Postbox 800 H-1035 Budapest Proc essing is gen er ally at the pri mary level. Tel/Fax: +36-1-2123127; +36-1-2122379 E-mail: [email protected] Agaeti, Iceland’s largest wholesaler of fruits and (Inspection and certification) vege ta bles, has a large assort ment of organic prod ucts Biokultúra Egysulet and is cer ti fied. Prod ucts are sold either at the farm Kitaibel P.u.4, H-1204 Budapest gate or in a few spe cial ized stores, mainly in the cities. Tel/Fax: +36-1-2123127; +36-1-2122379 The main supermarket chain Hagkaup offers a wide E-mail: [email protected] array of organic products, partly imported. There are (Development) currently no exports, but there is great interest in organic Ice landic lamb. Fresh fruits and vege ta bles as Ökoszerviz Környezetvedelmi well as proc essed prod ucts are imported. Löpormalom U3, H-1031 Budapest Tel/Fax: +36-1-2025192 E-mail: [email protected] Certification (Trade) The Soil Asso cia tion (United Kingdom) and KRAV Iceland (Sweden) have helped set up local cer ti fi ca tion bodies. Today, the pri vate enti ties Tún (Ice landic for Production ‘pra irie’) and Vist frae distofan carry out cer ti fi ca tion activi ties. 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 Useful addresses area), mainly in the south- west. Its first organic farm Áform Development Project (biody namic) was Sólhei mar, established in 1930. c/o Baendahöllin Organi za tions like VOR (Verdnun og Raektum or the PO Box 7080, Hagatorg 1, IS-127 Reykjavik Ice landic Asso cia tion of Eco logical Farmers, cre ated Tel: +354-5-630300 in 1993) and Gróska (estab lished in 1996) have been Fax: +354-5-628290 instru mental in the recent growth of the sector. (Development) Birala Lifraent Átaksverkefni Áform, the Icelandic Devel op ment Com mittee on c/o Baendahöllin Natural and Organic Pro duc tion, encompassing the PO Box 7080, IS-127 Reykjavik Minis tries of Agricul ture and the Environ ment, the Tel: +354-5-630300 farm ers’ union and VOR, has the imme diate goal of Fax: +354-5-623058 making all Ice landic food pro duc tion, be it land- or E-mail: [email protected] and [email protected] (Development) water- based, sus tain able and of creating an ‘eco -island’. Activi ties are governed by legis la tion Tún No. 26 of 3 March 1995 on organic and natural (Vottunarstofan Tún) agricul tural pro duc tion. Sub stan tial sums have been Myrarbraut 13, IS-870 Vik granted by the Gov ern ment to sup port the Tel: +354-4871389 Com mit tee’s work. Fax: +354-4871205 (Control, certification)

Most farms have exten sive livestock opera tions, Vistfraedistofan producing beef and lamb, dairy prod ucts and eggs. Theverás 9, IS-110 Reykjavik How ever, crop ping activi ties are more sig nifi cant. The Tel: +354-5672244 102 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Fax: +354-5682433 Farming, Trading & Con sulting (based in Kahir, E-mail: [email protected] County Tip pe rary) coordi nates produc tion, (Control, certification) proc essing and trading in beef, flakes, flours, grains, lamb, and woollen fab rics. Bord Bia, the Irish Food VOR (Verdun og Raektun) Board, is showing increasing interest in organics. It Akur, Biskupstungur, IS-801 Selfoss seems likely that Irish organic beef will be mar keted Tel: +354-4868983 in the near future in con ti nental Europe. Imports of all Fax: +354-5667035 prod ucts are con sid er able. (Production, processing) Control and certification Ireland Three certi fiers are active in the country: IOFGA Production which cer ti fies most of the farms, Bio- Dynamic Asso cia tion of Ire land, and Organic Trust Ltd. In early 1998, Ire land had 808 organic farms on 23,600 hectares. The sector has expanded Useful addresses enor mously in recent years. When growth started in the early 1990s, the emphasis was on vegetable IOFGA (Irish Organic Farmers & Growers Association) pro duc tion on small farms. The emphasis has since 56, Blessington Street, IRL-Dublin 7 shifted to livestock pro duc tion, mainly bovine and Tel/Fax: +353-1-8307996 ovine, on larger farms of up to 100 hectares. The E-mail: [email protected] latter has been due to encour age ment from the Rural Web site: http://www.homepage.tinet.ie/-iofga Environ ment Pro tec tion Scheme which provides (Inspection, certification) finan cial aid for con ver sion. Organic Foods Unit 26, Hill Industrial Estate There are roughly 25 bio dy namic farms. With IRL-Liffey, Bridge, Lucan, County Dublin Norway, Ire land is a pio neer in organic fish farming. Tel: +353-1-6281375 The Irish Seafood Producers Group Ltd (ISPG) in Fax: +353-1-6282997 Con ne mara, County Galway, pro duces and trades in (Wholesaler) organic salmon, raised according to Ger many’s Naturland stan dards and exported to several Italy Euro pean coun tries. Production Processing and manufacturing With 564,913 hec tares certi fied, distrib uted over There are a growing number of proc essing and 31,118 farms and equiva lent to 3.8% of all manu fac turing plants for both animal and plant agricul tural land, Italy is by far the largest organic products. How ever, as a whole this sector remains pro ducer by area in the European Union. Of the underde vel oped. 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 Trading south (of which 261,699 hec tares are mainly in Sicily and Sar dinia). Distri bu tion continues to take place largely through spe cial ized sales chan nels: farm gate sales, con sumer In 1998, the cer ti fied land was cropped as follows: groups, organic box subscrip tion schemes (for 45.4% fodder, 22.9% cereals (Italy is Euro pe’s largest vege ta bles) and, above all, natural and health food pro ducer of organic durum wheat and rice), 10.4% stores. Nev er the less, with the expan sion of sup plies, fruits and vegeta bles for proc essing (such as supermar kets are increas ingly entering the trade. toma toes), 9.4% olives, 7.7% fresh fruits and Supermar kets in urban areas like Dublin and Cork vege ta bles, and 2.7% vine yards. (The pro por tions in offer organic fruits and vege ta bles, some dried terms of market value shift radi cally, with fruits and prod ucts and meat. vege ta bles for proc essing having a share of roughly 50%.) Italy is one of the few sig nifi cant pro ducers of Many farmers have joined coopera tives for organic apple in Europe; much of this produce is mar keting pur poses. Bal ly brado Ltd Organic grown in the area around Trento in the north. CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 103

During recent years, the impor tance of Italy as a Fat toria Scalda sole (in Mon guzzo near Como), sup plier of organic raw mate rials, semi- processed and originally a dairy fac tory spe cial izing in yoghurt, proc essed organic prod ucts has grown dra mati cally. now offers a large assort ment of goods car rying the Scaldasole brand name, one of Italy’s best known Processing, manufacturing brands. Masinari (located in Mede, in the valley of the Po) is the domi nant rice mill. Italy has more than 500 organic proc essing plants, pro ducing a large assort ment of prod ucts including There are about 900 natural food shops, mostly in the fruit juices and pulps, olives and olive oil, pasta, north (about 600) and cen tral Italy (about 190). These pastries, rice, dairy products (including ice cream), shops are gener ally small (only about 25% have tomato-based prod ucts and wine. Most of the food prem ises larger than 100 square metres) although proc es sors are established in the north. How ever, there are a number of super ettes. Five fran chise large facto ries such as Bar ba gallo (pasta) and systems have about 50 out lets. Many herbal stores Damiano (hazel nuts and almonds) as well as various (erboristerie , which sell herbs and cos metics) have citrus proces sors (peel, candy, juice) are located in small dry organic assort ments. Sicily. There are also a number of fruit and vege table packers. Super mar kets have taken on organics in recent years. It is reported that 95% of all Italian supermar kets Trade carry some organic products; how ever, only about 300, or 20% of all super mar kets, carry fresh organic The value of the domestic organic market is fruits and vege ta bles, mostly in the north and in estimated at between Lit 1,300 bil lion and Lit 1,500 Tus cany. The super market chains more promi nently bil lion ($750 mil lion to $900 mil lion), equiva lent to involved in organics are Billa, Coop, Esse lunga and 0.5% - 0.7% of the overall food market. In the four Euromer cato. The best known organic brands are years to 1998, the organic market expanded at the rate Scaldasole, Céréal and Bjorg (the latter two are of 20% annu ally. French brands), Alce Nero, La Danza, Ger minal and Euvita. Supermar kets such as Billa, Coop, and Close to 40% of the organic output is exported, Esse lunga have their own organic labels. mainly to Europe, Japan and the United States. Annual exports are valued at an esti mated Lit 500 Italy has about 100 organic res tau rants, mostly in the billion and Lit 700 bil lion ($300 mil lion - $400 northern and cen tral regions, and in the larger towns. million). Italian olive oils, pastas, tomato prod ucts Organic catering in schools and cafe te rias is rising as and wines are mar keted suc cess fully in vir tu ally all is eco- tourism on organic farms. The latter takes inter na tional mar kets. Imports, particu larly of place in about 400 farms all over the country, with a proc essed prod ucts, are con sid er able. higher con cen tra tion in Tus cany. Some 1,500 farms sell their organic prod ucts off the farm. Organic Fruit and vege table packers such as Ara bios, Di Rosa farming in natural reserves and parks is increasing. & Can niz zaro and Salamita (all in Sicily), Mus tiola in Cesena, Elios in Trig giano (near Bari) and Brio in According to the mar keting maga zine Largo Vicenza are the domi nant whole salers; they are also Consumo , the Italian organic con sumer is between 35 heavily involved in exporting and sometimes in and 45 years old, lives mainly in the northern urban importing. Brio also car ries cheese, pasta, pre serves, areas, has average or above- average edu ca tion, and is wine and other prod ucts. in the upper- middle or high income levels. Around 70% of all Italian consumers know organics, 40% Il Fior di Loto (in Grugli asco near Torino), the KI buy them from time to time and 4% more regu larly. group (Collegno near Torino), WBT (Settimo Tori nese near Torino), La Selva (Orbeteno), Coop. Control and certification Alce Nero (Isola del Piano) and Il Sar chio (Carpi, Emilia- Romagna) are a few of the well- known Of the eight State-accredited con trol bodies, the whole salers spe cial izing in dry foods. Like the fed era tion AIAB is the largest, cov ering about 9,700 packers, they are mostly exporters, but they also farms on close to 160,000 hectares. The second import occasion ally. NBC (Torino) groups organic biggest is Suolo e Salute with 6,500 farms and pro ducers and proces sors, and coor di nates their 122,000 hec tares, and the third is Bio agri coop with exports. 4,300 farms and 120,000 hectares. Of the other 104 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY con trol bodies, CCPE, Eco cert Italia, IMC and QC&I Tel: +39-051-6130512 encom pass between 2,000 and 3,000 farms on 30,000 Fax: +39-051-6130224 - 50,000 hectares. The smallest, Codex-Demeter, E-mail: [email protected] Web site: http://www.bioagricoop.it con trols just over 1,000 farms (14,500 hec tares). It is (Control and certification) 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 Brio-I scrl to increase con sumer rec og ni tion. Via del Comercio 8, I-36100 Vicenza Tel: +39-045-8731777 Fax: +39-045-8731744 SANA (Wholesaler, exporter, importer)

The SANA organic and natural prod ucts show in CISS Bologna, held every fall, has devel oped into one of (Cooperazione Internationale Nord-Sud) the largest organic food shows in Europe. SANA will Via Papale 41, I-95123 Catania stage the 6th IFOAM Organic Trade Con fer ence in Tel: +39-095-433799 Fax: +39-095-439740 October 1999 in Flor ence. E-mail: [email protected] (Fair trade, education) AgriBioMediterraneo Di Rosa & Cannizzaro AgriBioMedi ter raneo, IFOAM’s Medi ter ra nean Contrada Grafalongo, I-97014 Ispica group, comprises Algeria, Bosnia and Herze go vina, Tel/Fax: +39-0932-956887 (Exporter and importer of fruits and vegetables) Croatia, Egypt, France, Greece, Israel, Italy, Lebanon, Slovenia, Spain, Tunisia and Turkey. Por tugal is also a Ecocert Italy member though it is not on the Medi ter ra nean. Via Baldvino 25, I-95128 Catania Tel: +39-095-442746 Useful addresses Fax: +39-095-505094 E-mail: [email protected] AgriBioMediterraneo (Control and certification) c/o Ciheam Via Ceglie 9, I-70010 Valenzano (BA) Fattoria Scaldasole Tel: +39-080-7806254 Via Donizetti 7, I-22040 Monguzzo (Como) Fax: +39-080-7806268 Tel: +39-031-651501 E-mail: [email protected] Fax: +39-031-617323 (Federation of Mediterranean organic organizations) (Producer and wholesaler: dairy products and dried products) AIAB Strada Maggiore 29, I-40125 Bologna KI srl Tel: +39-051-272986 Via Marchesi 9, I-10093 Collegno (TO) Fax: +39-051-232011 Tel: +39-011-7791027 E-mail: [email protected] Fax: +39-011-725983 Web site: http://www.aiab.it E-mail: [email protected] (Federation of certifiers) (Wholesaler of dried products)

Alce Nero Cooperativa/La Corticella Mustiola scrl Via Montebello 1, I-61030 Isola del Piano (PS) Via Ravennate 801, I-47023 Cesena (FO) Tel: +39-051-329411 Tel: +39-0547-384523 Fax: +39-051-703172 Fax: +39-0547-631518 E-mail: [email protected] (Producer and wholesaler: fruits and vegetables) (Producer, processor, wholesaler: handles mainly dried products) NBC (New Bio Concept) Ass. Suolo e Salute Corso Matteotti 12, I-10121 Torino P.A. Mentuccia Augusto, Via Abbazia 17 Tel: +39-011-5178621 I-61032 Fano (PS) Fax: +39-011-5178628 Tel: +39-0721-830373 E-mail: [email protected] Fax: +39-0721-830373 Web site: http://www.newbioconcept.com (Controller, certifier) (Exporter, importer)

Bioagricoop SANA Via Fucini 10, I-40033 Casalecchio di Reno (BO) Fiere & Comunicazioni srl CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 105

Via San Vittore 14, I-20123 Milano Liechtenstein Tel: +39-028-6451078 Fax: +39-028-6453506 This tiny (160 square kilome tres) inde pendent E-mail: [email protected] Web site: http://www.sana.it princi pality with 31,000 inhabi tants, squeezed (Yearly organic trade show) between Swit zer land and Aus tria, has no less than 32 organic farms (12% of all farms) on 605 hec tares WBT (18% of all agri cul tural land). A large pro por tion of (Well Being Trade) the organic area is grass land (for milk cows). Animal Franz Rivetti fodder and cereals are impor tant out puts. Roughly 5 Via E. De Nicola 7 ter, I-10036 Settimo Torinese (TO) hectares each are planted to vegeta bles and fruits Tel: +39-011-8977493 Fax: +39-011-8977575 (including grapes for raisin pro duc tion). (Wholesaler and trader: rice, pasta and dried products) There are seven licensed proc es sors, mainly dairies, slaugh ter houses and bakeries. Mar keting is Latvia sponsored by pri vate organi za tions. Organic prod ucts are mar keted by the slaugh ter houses and dairies, or In 1998, there were approximately 200 farms and are sold at the farm gate and by some health food roughly 19,000 hec tares under cer ti fi ca tion. Of these, stores and a few super mar kets. The catering industry about 50 were bio dy namic farms. The Bio dy namic is another outlet. Some quanti ties are exported to Asso cia tion has a subsidiary in Grobina. Most farms Swit zer land. are in the 15- 30- and 45-hectare range; a few are large units of 200 hectares. Produc tion is exten sive Farms are controlled by the Swiss body FiBL and the main prod ucts are dairy meat, grains, fruits, according to VSBLO guidelines, and are certified by vege ta bles and honey. VSBLO, another Swiss entity. Processors and traders, on the other hand, are controlled by IMO Processing takes place at the pri mary level. The (also Swiss) and are certified by the absence of a domestic market is the main obstacle to Liechtenstein- based VBO (Vereinigung Bäuerlicher devel op ment. There are no natural food shops in Riga Organisationen im Fürstentum Liechtenstein). and other urban areas, and attempts to interest the VBO’s logo is an ear (Bio-Ländle-Produkt). supermar kets have so far failed. However, it is believed that domestic mar keting efforts may have Useful address greater chances of succeeding when coherent Ingenieurbüro für Agrar- & Umweltberatung assortments of prod ucts become avail able. In the Postfach 323, FL-9494 Schaan mean time, prod ucts are sold – often with no price Tel: +41-75-2329614 pre miums – on farm, and to hotels, embas sies and Fax: +41-75-2329631 (Information) schools.

Buckwheat and honey have a rea son able export Lithuania poten tial. The number of organic farms in Lithuania rose from Cer ti fi ca tion is car ried out by Ger many’s Demeter and 107 in 1997 to 140 in 1998 with a total area of by an inde pendent national cer ti fi ca tion body working roughly 200 hectares. They produce cereals, on the basis of pri vate standards. The national body vege ta bles, milk and meat. collabo rates with the Min istry of Agri cul ture, inde pendent inspec tors and farmers. The Min istry The market has yet to develop and prod ucts are partly sup ports the Lat vian organic movement, although sold on-farm. There are five proces sors of cereals, there is no national law on organic pro duc tion. including flour mills and bakeries. No dairy proc essing takes place. Prod ucts are also sold in food Useful address shops, including supermar kets in cities such as Vil nius and Kaunas. Latvijas Biologiskas Lausaimniecibas Biedriba Kuldigas rajons, 3319 Renda Tel: +371-33-47280) EKOAGROS has for mu lated organic stan dards and (Production, development) car ries out cer ti fi ca tion activi ties. 106 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Useful addresses Land wirtschaft Lëtze burg car ries these activi ties out EKOAGROS for farms fol lowing bio dy namic stan dards. Lzüu, LT-4324 Kaunas Tel/Fax: +370-7-296844 Useful addresses E-mail: [email protected] Veräin fir Biologesch-Dynamesch Landwirtschaft (Control, certification) Lëtzeburg 13 rue de la Gare, L-5353 Oetrange GAJA Tel: +352-350245 (Lithuanian Society of Organic-Biological Fax: +352-355961 Agriculture) (Control, certification) K. Douelaicio 2, LT-3000 Kaunas Tel: +370-7-205421 Verenegung fir Biologesche Landbau Lëtzeburg asbl Fax: +370-7-200423 Kräizhaff, rue de Luxembourg E-mail: [email protected] L-1899 Kockelscheuer (Production, development) Tel: +352-290404 Fax: +352-290504 Luxembourg E-mail: [email protected] Web site: http://www.luxnatur.lu This small country (2,586 square kilo me tres, 412,000 (Control, certification) inhabitants) had by mid 1998 around 625 hec tares (24 farms) devoted to organic farming, equiva lent to Malta 0.5% of all agri cul tural land and 0.8% of all farms. About a third of the area is bio dy nami cally farmed. Organic production, mainly of vegetables is being organized in Malta by Italian companies. Inspection Dairy farming is the main activity; beef cattle, pigs, and certification will also be carried out by Italian goats and poultry (for both meat and eggs) are also entities. raised. Five farms pro duce organic vege ta bles, which while reaching a volume that is close to half of the Moldova, Republic of overall national vege table output, is not suf fi cient to cover demand. Organic fruit produc tion (including Organic production in the Republic of Moldova is grapes) started in 1995 and is sup ported by the local beginning. Organic walnut kernels certified by the nature con ser va tion asso cia tion Hëllef fir d’Natur. German entity Lacon and IMO are already exported to EU by Reforma-Werk Andreas Stellisch. Some proc essing of milk, meat and cereals (bak eries, pasta produc tion, proc essing of breakfast cereals) Useful address takes place, and there is a packing plant for fruits and Reforma-Werk Andreas Stellisch GmbH vegeta bles. Stellauer Hauptstrasse 8 22885 Barsbüttel-Stellau Organic con sump tion on a per capita basis is one of Germany the largest in Europe. As a result, the import trade in Tel: +49-40-6757950 vir tu ally all prod ucts is considerable. Fax: +40-40-67579520 (Production. trade) Sales are made through a number of natural and health food stores and at the farm gate. The big gest Netherlands (see chapter 9) super market chain, Cactus, offers in its large hyper market in Ber trange one of the widest Norway assort ments of organic prod ucts that can be found in mainstream mar kets in Europe. The coopera tive In the begin ning of 1998, close to 12,000 hec tares in BioG (Biobau ere ge nosssen schaft Lëtze burg) 1,310 farms were farmed organi cally. These made up pro motes national pro duc tion. Organic farmers have 1.2% of all agri cul tural land and close to 1.5% of all estab lished a whole saling entity called Bio- Gros. farms. Despite the rapid expan sion in organic farming in recent years, demand still far exceeds Verenegung fir Biologesche Landbau Lëtzeburg supply. Nor we gian farms are gen er ally small family con trols and cer ti fies the majority of the farms and farms which are some times run in addi tion to other proces sors. Veräin fir biologesch-dynamesch pro fes sional activi ties. Some farms are bio dy namic. CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 107

Land for grazing and for the produc tion of fodder Poland takes up the greater pro por tion of the area under organic man age ment. Produc tion of cereals, Production and trade vegeta bles, berries and herbs is signifi cant. Barley and oats are pro duced in larger vol umes than wheat In 1998, Poland had 185 farms (5,500 hec tares) and rye because of the cli mate. cer ti fied by Ekoland and another 100 farms cer ti fied by PTRE ((Polska Towarzyatwo Rolni etwo Milk and meat prod ucts are pro duced on livestock Ekologlcznego, the Polish Society of Organic farms on which cattle, sheep, goats and poultry are Farming.) As the fig ures for Ecoland indi cate, the raised. The pro duc tion of eggs and pork is lim ited by strong growth that began in 1990 (when there were the lack of organic feed stuff. 27 farms and 300 hectares cer ti fied) and con tinued through to 1996 (236 cer ti fied farms on 6,855 Some proc essing of dairy, meat and cereal prod ucts is hec tares) came to an end in 1998. The retrench ment car ried out. was due to the wholly underde vel oped domestic market and the lack of export out lets. Norway was one of the very first coun tries to market organic fish. This con sists of salmon from farms in Poland’s wide range of prod ucts includes fruits, the fjords run under closed farming sys tems. grains, oil crops, pulses and vege ta bles. Livestock farming and bee keeping are also under taken. There Sales are made mainly on the farms, and also are some pri mary proc essing units producing such through natural food stores. Supermar kets are items as coffee sub sti tutes. There are currently four starting to show an interest in organic prod ucts and wholesalers. this interest is likely to inten sify as the supply increases. The imbal ance between domestic supply Organic foods are sold in about 130 health food and and demand has resulted in sub stan tial imports and natural food stores, essen tially in the urban areas of minimal exports. Warsaw, Krakow and other big cities. Supermar kets have so far shown little interest in car rying organics, Norway is not a member of the Euro pean Union. But but this situa tion is changing. An example is the as a member of the Euro pean Eco nomic Area (EEA), arrival of the French supermarket chain Carrefour, it applies EU Regu la tion 2092/91. The sole official which offers a full organic assortment. Poland’s cer ti fier is Debio. export trade, mainly with the Euro pean Union, is also opening up. Useful addresses Debio Control and certification PO Box 50, N-1940 Bjoerkelangen Tel: +47-63-856305 Ekoland, the leading cer ti fier, spurred much of the Fax: +47-63-856985 sec tor’s growth in the 1990s. It published its own E-mail: [email protected] stan dards in 1994. To ensure a separa tion of (Control and certification) func tions, it estab lished Agro Bio Test in 1996 as an inde pendent entity; Agro Bio Test is now the NOELL coun try’s main con trol body. (Norsk Oekologisk Landbrukslag) Langeveien 18, N-5003 Bergen Tel: +47-55-320480 PTRE, another con trol and cer ti fying body, has its Fax: +47-55-320345 own standards. Among the for eign con trol enti ties Web site: http://www.home.sd.no/organic.no active in Poland are SKAL and the German Eco cert. (Information) A law on organic pro duc tion has been drafted, but it is NORSOEK awaiting pas sage by Par lia ment. (Norsk Senter for Oekologisk) Landbruk, Tingvoll Gard, N-6630 Tingvoll Useful addresses Tel: +47-7153-1342 Fax: +47-7153-1339 Agro Bio Test E-mail: nso@&post.nlh.no Ul. Nowoursynowska 166, PL-0287 Warszawa (Information, development) Tel: +48-22-8439063 108 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Fax: +48-22-8471562 is car ried out on an ad hoc basis. Por tugal’s poten tial (Control) as an exporter is essen tially good. It is a fairly small importer. Ekoland Przysiek/Toruniak, PL-87134 Zlawies Wielka Tel: +48-56-6789239 Certification Fax: +48-56-6789239 E-mail: [email protected] (Warszawa office) Socert Portugal Cer ti fi cação Ecológica, the Web site: http://free.ngo.pl/ekoland Portu guese leg of Eco cert, is the only (Certification, development) State- accredited cer ti fier. Its logo often appears with that of Agrobio, a pro duc ers’ asso cia tion. Portugal Useful addresses Production Agrobio (Associação Portuguesa de Agricultura Biológica) In the begin ning of 1998, Portugal had 321 farms Calçada de Tapada 39 R/e Dto, P-1300 Lisboa (0.1% of all farms) on 11,584 hec tares (0.3% of the Tel: +351-1-3623585 total agri cul tural area) under organic produc tion. Fax: +351-1-3623586 Strong growth from 1993 was followed by a fall in (Production, development) 1996 and a resurgence there after. About 4,500 hec tares are planted to olives; 1,800 hec tares to fruits, Socert Portugal Certificação Ecológica R. Alexandre Hergulano 68-1E Es, P-2520 Peniche particu larly citrus; 1,500 hec tares to cereals; 600 Tel: +351-62-785117 hec tares to grape vine; 170 hec tares to vege ta bles and Fax: +351-62-787171 110 hectares to medicinal and culi nary herbs. E-mail: [email protected] Although there are 1,350 hec tares of cer ti fied pas ture (Control, certification) land, there are very few cer ti fied animal prod ucts on the market. Romania

Por tugal is member of the AgriBio Medi ter raneo (see A significant volume of organic products like wheat Italy). is being produced by companies like Agigea sa in Constanta. Among the certifiers are the German body Processing and trading Lacon. The entire crop is exported to the European Union, mainly to France and Germany. In Portugal produces wine, port wine and other Transsylvania the Bioterra organization is starting an products. It has some packing plants. Price is the organic network. major obstacle to the devel op ment of the national and inter na tional mar kets, although there is con sis tent Useful addresses growth in the first and good poten tial in the second. Asociatia Bioterra 3442 Luna de Sus nr. 376, jud. Cluj Large quanti ties of organic prod ucts continue to be Tel: +40-64-266606 sold as con ven tional items and without a price Fax: +40-64-266709 pre mium. Urze, a wholesaler of fresh prod ucts in (Production, development) Mon tigo (near Lisboa) has built a strong organic line, Eco Rural as has the produc ers’ coopera tive Biocoop, also in Sos. Oltenitei 35-37, Room 43 Lisboa. 69656 Bucharest IV Tel: +40-1-2408789 Prod ucts are retailed by spe cial ized shops, mainly in Fax: +40-1-2408799 the urban areas, with growth particu larly strong in (Production, development) Lisboa and weaker in Porto. Sales are also car ried out in farm ers’ mar kets as well as by super market chains Russian Federation such as Pingo Doce and Jumbo. Mark-ups in the supermar kets appear to be high, which slows down Production sales. The first really suc cessful attempts to estab lish organic The export trade, mainly with Ger many and France, farming in the Rus sian Fed era tion were car ried out by CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 109

Ekoniva, an organi za tion with roots in Ger many. In Useful addresses 1994 Ekoniva cer ti fied 11 farms working 3,609 Altagro hec tares. By 1997, the fig ures had risen to 15 farms Paveletskaja Nabereshnaja 4/5 Etage and 4,647 hec tares. How ever, the main cash crops – Dom 53, Moscow buck wheat, barley, oats, wheat and flax – are Tel/Fax: +7-095-9596236 essen tially traded as con ven tional prod ucts on the (Production, development) local market for various reasons. These include the absence of domestic demand for organic products, Ekoniva AO PO Box 1, Nemchinowka-1, Moscow Oblast 143013 failure to meet requirements for the export trade, or Tel/Fax: +7-095-5918460 farmer specula tion. Another organiza tion that has E-mail: [email protected] been active in devel oping organic farming is Altagro. (Production, processing, trading) There are a few pockets of non- certified organic and bio dy namic produc tion throughout the Rus sian Ekoniva MO Fed era tion, including the Irkutsk area in Siberia, but PO Box 1, Nemchinowka-1, Moscow Oblast 143013 prod ucts are sold on the con ven tional market. Tel/Fax: +7-095-5918460 E-mail: [email protected] (Control, certification) A number of pro ducers, proc es sors, whole salers and retailers are plan ning to work together to convert a San Marino number of mixed farms in one area (province of Örel) to organics. These produce cereals, fruits and In this tiny republic (61.2 square kilo me tres, 24,500 vegeta bles, dairy prod ucts, meat, and poultry meat inhabitants), an enclave in Italy near the Adriatic and other prod ucts. The inten tion is to dis tribute the coast, there is no organic produc tion to speak of. organic output to super mar kets in Moscow and to tap Some organic herbs are pro duced for a local the con sid er able export poten tial. cos metics and food sup ple ment industry, but are not cer ti fied. The Italian organiza tion Mustiola has Processing, manufacturing and trading issued a fran chise for a natural food shop in San Marino which sells an array of organic prod ucts. The absence of an appropriate proc essing and manu fac turing infra struc ture is one of the main Slovakia obstacles to the devel op ment of organics in the Russian Fed era tion. Ekoniva has built a The area under conver sion in Slo vakia expanded grain- processing plant in Kaluga, pre domi nantly for from around 12,000 hec tares in 1992 to an esti mated hulling buckwheat. There is vir tu ally no national 17,000 hec tares in 1996. Some export trade with the market, a situa tion which may change if the Euro pean Union, for example in wheat, has already above-mentioned conversion project takes off. taken place. The possi bility for set ting up a scheme Moscow super mar kets carry a few imported organic for organic sugar beet is being studied. items, particu larly the Hipp baby food from Ger many. Buck wheat is so far the only export crop Useful addresses that has encountered some success. This too is expected to change. Dimini spol sro Pribinova POB 24, 92001 Hlohovec Control and certification Tel: +421-804-7425829 Fax: +421-804-7425827 Ekoniva has been instrumental in lob bying (Development, trade) Par lia ment for an organic law and has been appointed by Gosstan dard (the Com mittee of Rus sian Natural Alimentaria sro Federa tion for Standardi za tion, Metrology and L’Adová Ul.c.8, 81105 Bratislava Tel: +421-7-399466 Cer ti fi ca tion) as the cer ti fying organiza tion for a Fax: +421-7-398109 volun tary cer ti fi ca tion scheme. The cer ti fi ca tion (Development, trade) work of Ekoniva is super vised by the Swiss IMO. In order to ensure separa tion of inter ests, cer ti fi ca tion Slovenia activi ties (Ekoniva MO) have been split from produc tion, proc essing and trading activi ties In 1998, Zdruzenje ekolokih kmetor Slovenije (Ekoniva AO). (SOFA) cer ti fied its first 22 farms (on 270 hec tares) 110 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY of mixed pro duc tion and 1,500 hec tares of high land but also grapes, kiwi fruit, peaches, nec tar ines and pas ture. Another 12 farms in the north- east are being strawber ries); vegeta bles (car rots and most other cer ti fied by the Aus trian Bio garantie. The output is vegeta bles); grain for animal fodder; herbs; nuts diverse: fruits, grains, vege ta bles, meat and dairy (hazelnuts, almonds); pulses; oil-seeds; olives; and prod ucts. rice. Pro duc tion takes place all over the country, with a larger concen tra tion in Andalucía, Aragón, Slovenia is member of AgriBioMedi ter raneo (see Cata lonia and Valencia. Italy). Although local con sump tion of organic prod ucts is Today vir tu ally all prod ucts are proc essed and sold on growing, Spain is pri marily an exporter of organic farm. However, health food stores in Ljubl jana and pro duce. Its climate makes it pos sible to offer other cities, which now import most of their organic early- season crops to Euro pean mar kets. prod ucts, are expected to pick up the national pro duce in the near future. It is also hoped that supermar kets Spain is a member of AgriBio Medi ter raneo ( see Italy). will soon show an interest in carrying Slove nia’s organic prod ucts. No exports are as yet planned. Processing

SOFA has established stan dards and is the national There are several hun dred, gener ally small, cer ti fi ca tion body. The Ministry of Agricul ture is proces sors, including bakeries; cereal proc es sors; for mu lating national stan dards. dairies; fruit and vege table packers; makers of tofu, other soy prepa ra tions and seitan; olive oil mills; and Useful addresses wine producers. Most of the larger food proces sors Institut Za Trajnostni Razvoj have so far kept out of the organic sector although Metelkova 6, 1000 Ljubljana interest is growing. Tel: +386-41-725991 Fax: +386-61-1337 029 Some of the best- known proc es sors are as fol lows: E-mail: [email protected] (Development) q Albet i Noya, Subirats-Barcelona: wine; Mevi-Mediacor-Vigred q Aliment Vegetal, Barcelona: cereals and baby Glavni trg 10, 3000 Celje Tel/Fax: +386- 63412111 foods; E-mail: [email protected] q Almendra del Sur sa, Málaga: almonds; (Production, processing) q Alter Vida, Valencia: fruits and vegetables; SOFA (Zdruzenje ekolokih kmetor Slovenije) q Bioartsa, Barcelona: bakery and fresh products; Metelkova 6, 1000 Ljubljana Tel/Fax: +386-61 1343 772 q Cal Valls, Lérida: fruits juices and preserves; E-mail: [email protected] q Central de Productos Biológicos sa, Barcelona: (Control, certification) cereals, dry groceries, preserves; The Business Research Centre q Eco-Llevant, Alicante: fruits and vegetables; Zadruzna 9, 1218 Komenska Tel/Fax: +386-841325 q Herbes del Moli sc, Alicante (herbal teas and E-mail: [email protected] spices); (Production) q Luz de Tierra sc, Zaragoza: fruits, oil; Spain q Monsoya, Viladrau: organic rice drink and soy products; Production q Natursoy and Vegetalia sl, Barcelona: vegetable In 1998 Spain had 3,526 organic farms (0.3% of all protein products; farms) working 152,100 hec tares (0.6% of all q Nuñez de Prado CB, Córdoba: oils; agricul tural land), up from 1,200 farms and 28,130 q Silvestre Alcolea sa, Huesca: rice, cereals, seeds, hectares in 1995, and from 264 farms and 2,140 fruits; hectares in 1985. The land is cropped as follows: pas tures for cattle and sheep; fruits (pri marily citrus q Vea sa, Lérida: olive oil. CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 111

Most organic proc es sors and traders now coop erate found, for instance, in Badajoz (Extre madura); to improve their market access within the recently Bar ce lona (Catalonia); Zaragoza (Aragón); La cre ated FABIO, the Asocia ción Española de Coruña (Galicia); Logroño (Rioja); Madrid Trans for ma dores y Comerciali za dores de Pro ductos (Madrid); Mur iedas Camargo (Cant abria); Toledo Biológicos. (Cas tilla la Mancha); Oviedo (Asturia); Palma de Mal lorca (Baleares); Pam plona (Navarra); Santa Trade Cruz de Tenerife (Canary Islands); Sevilla (Anda lucía); Valencia (Valencia); Val la dolid (Cas tilla The Spanish organic market is under de vel oped and is y León) and Vitoria (Basque Prov inces). 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 Useful addresses the market is supplied by imports, especially of Asociación Vida Sana proc essed prod ucts. The value of organic exports is Clot 39, Bajos, E-0818 Barcelona currently esti mated at Ptas 7 bil lion ($50 mil lion); Tel: +34-93-5800818 exports con sist mainly of fruits and vege ta bles, rice, Fax: +34-93-5801120 nuts and oils. E-mail: [email protected] (Publisher, organizer Biocultura fair) There are over 2,000 her boris terías, shops selling Central de Productos Biológicos sa herbs, cosmetic prod ucts and a small assort ment of Ctra. Sabadell a Granollers km 12,7 NE 3 organic prod ucts, and some 150 well-established E-08185 Llica de Vall (Barcelona) natural food stores with a full organic assort ment, Tel: +34-93-8436517 excluding meat prod ucts. In cen tral Bar ce lona, on the Fax: +34-93-8439600 Vía Laie tana, there is an organic super market with a E-mail: [email protected] restau rant called Comme-Bio, and more of these (Importer, exporter, wholesaler) com bined out lets are to be opened. Barce lona has CRAE various other organic restau rants. Sales at the farm (Comisión Reguladora de la Agricultura Ecológica) gate and by con sumer asso cia tions and coop era tives Paseo Infante Isabel, 1, E-28014 Madrid are sig nifi cant. Tel: +34-91-3475480 Fax: +34-91-3475410 Entry into super mar kets con tinues to be ham pered by (Coordination of control and certification bodies) the lack of supply and the absence of a con sis tent and FABIO per forming supply system, although the main (Asociación Española de Transformadores y Spanish retail organi za tion, El Corte Inglés, has been Comercializadores de Productos Biológicos) car rying organic fruits and vegeta bles and a small Calle Bonavista 15-2E-5a, E-08012 Barcelona range of dried prod ucts for many years. Con ti nente Tel/Fax: +34-93-4157184 recently took up the French La Vie organic E-mail: [email protected] assort ment. It is expected that with the offer of a fuller (Association of processors and traders) range of prod ucts and the estab lish ment of efficient supply structures the interest of the mainstream Sweden (see chapter 10) dis tri bu tion system will grow rap idly. Switzerland (see chapter 11) Trade shows The former Yugoslav Republic of The Asocia ción Vida Sana organizes an annual Macedonia exhibi tion, Bio cul tura, both in Madrid and in Bar ce lona. Organic agri cul ture is just begin ning in this country. The Neth er lands estab lish ment SKAL cer ti fies Control and certification herbs.

EC Regu la tion 2092/91 is applied through control Ukraine authori ties linked to the depart ments of agri cul ture in autono mous com mu ni ties or the appro priate regional The number of organic farmers in Ukraine is bodies. These authori ties belong to CRAE (Comisión increasing. Their output includes grains (wheat) and Regula dora de la Agricul tura Ecológica) and are fruit. 112 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Proc essing is lim ited to pri mary on- farm proc essing. Neth er lands. The domestic market has yet to be devel oped. How ever, exports to Western Europe, largely of Yugo slavia is member of the AgriBioMedi ter raneo wheat, are increasing. (see Italy).

Export con trol and cer ti fi ca tion are carried out Certi fi ca tion is currently done by the Neth er lands mainly by SKAL. The Rus sian certi fier Ekoniva is body SKAL. Terra’s Natural Food Asso cia tion is also active in Ukraine. set ting up a national cer ti fication body.

United Kingdom (see chapter 12) Useful addresses Den Juro Yugoslavia Prote Mataje 25a, YU-11000 Beograd, Tel: +381-11-451603 Fax: +381-11-4462129 Pro duc tion is con cen trated around Blace (which has (Trade, development) about 500 fruit producers working 4,000 hectares), and in Gadzin Han (with another 500 fruit pro ducers Terra’s Natural Food Association and 4,000 hectares). The current output includes Trg. Cara Jovana Nenada 15, YU-24000 Subotica apples, cher ries, pears, prunes, quinces, rasp ber ries, Tel: +381-24-24699 Fax: +381-24-553116 black ber ries, rose hips and strawber ries. The E-mail: [email protected] produc tion of cereals and animal prod ucts is being (Control, certification) planned. Other European countries Fruit is frozen as well as proc essed into juice, con cen trates and mar ma lade. There is no domestic As of December 1998, there was appar ently no market as yet. The existing produc tion has been certi fied organic agricul ture in Albania, Andorra and devel oped mainly in coop era tion with a trader in the Monaco, though plans are being discussed in Andorra.

The Americas (excluding NAFTA countries)

Most countries in the region have an organic problem. Farmers’ groups organize local and national agri cul tural sector though at widely varying levels of markets and some of them are mem bers of the devel op ment. The greater part of produc tion is net work RELACC (Red Latinoameri cana de export- oriented, but numerous farmers, women’s Comer ciali za ción Comuni taria) under which they organi za tions and NGOs prac tice organic agri cul ture work together to make their prod ucts avail able to to attain self-sufficiency in food for themselves or other countries in the region through a common their mem bers and for envi ron mental reasons. dis tri bu tion system. Among the leading plant prod ucts are cane sugar, cocoa, coffee, cotton, fruits (a wide variety of exotic National mar kets are mostly unde vel oped, as a result fruits, bananas), grains (including the tropical grains of which farmers are largely dependent on the export ama ranth and quinoa), maté (also known as Para guay trade for their live li hood. Many producers lack the tea, obtained from the leaves of the shrub Ilex infra struc ture for direct exporting and have to rely on para guay ensis), medicinal and culi nary herbs, nuts, exploitive inter me di aries popularly called coyotes. oil-seeds (sesame, sunflower and saf flower), olives, Access to tech nical assis tance and rea son able credit pulses (soy and other beans), spices (vanilla), tea, remains dif fi cult. wine and honey. Livestock prod ucts include dairy prod ucts, meat, honey and wool. Argentina has a struc tured national distri bu tion system as well as a con trol and cer ti fi ca tion system In most countries cer ti fied organic produc tion and that has obtained equiva lency with EC Regu la tion trade expanded steadily in the 1990s, the latter 2092/91. In the other countries for eign con trol and despite the lack of proc essing and packing plants. cer ti fi ca tion bodies continue to be active, either The undevel oped national mar kets are a huge directly or through branch offices or sub sidi aries. In CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 113

gen eral, how ever, the ten dency is to set up national q Grains (buckwheat, maize, millet, oats, rye, bodies. The umbrella organi za tion Bio- Latina groups sorghum, wheat) and bread; Bolivian, Colombian, Nica ra guan and Peru vian q Herbs (basil, dill, parsley, oregano, rosemary, cer ti fiers under its wing. The strin gent EU rules on sage, savory, tarragon, thyme) and spices (pepper); the accredi ta tion of con trol bodies in third coun tries puts a great deal of pres sure on con trol and q Legumes, dried (beans and soy beans for milk, cer ti fi ca tion bodies in these countries to organize oil and fodder); them selves in such a way as to qualify. q Maté;

q Meat (beef, lamb, chicken), dairy products Antigua and Barbuda, Bahamas, (milk, cheese), other poultry products (eggs); Barbados, Belize q Nuts (peanuts);

Organic agricul ture is in its first stages in all these q Oil crops and oil (flax, olive, safflower, countries, with Belize begin ning to produce cocoa sunflower); and fruits. q Roots and tubers (carrots, potatoes);

q Sweeteners (cane sugar, honey); Argentina q Tea; Production q Vegetables, fresh (artichokes, asparagus, cucumbers, eggplants, garlic, onions, tomatoes); Organic agri cul ture took off in Argen tina in the late 1980s and early 1990s and soon became a q Wine. tre men dous success. The early pas sage of national leg is la tion and its attain ment of equiva lence with EC Argentina has a large output of organic olive oil, Regu la tion 2092/91, the export pro mo tion efforts of estimated at around 2 mil lion litres annu ally. The Promex and the con cur rent devel op ment of the live stock sector is growing rapidly. The cer ti fied national and export mar kets contrib uted in a large api cul tural sector (com prising three proj ects in 1995) measure to this suc cess. pro duces about 40 tons of honey yearly. The output of cotton is small but rising. In 1996, 346,978 hectares were being organically farmed by over 900 farmers. Less than 10% of this Processing and trade area was used for crop ping; the rest was mainly devoted to livestock farming: 211,000 hec tares for Expan sion has been particu larly high for bak eries beef cattle, 4,600 for milk cows, 864 hectares for (bread) and for proces sors of olive oil, wine, sheep, 21 hec tares for poultry. Some land was also set sun flower seeds, tea, maté, herbs, polenta, cane sugar aside for api cul ture, woods and fallow fields. (in the Misiones prov ince), fruit, meat, apple con cen trate and grape juice. The dairy com pany La Of the land under crop ping, 23% was planted to Seren is sima pro duces organic milk. sun flowers, 16% to olives and about 14% to wheat. Soy produc tion is expanding rap idly as is fruit The major super mar kets in Argen tina such as Jumbo, pro duc tion. Argen ti na’s organic prod ucts include the Norte, Car re four, and the vast majority of the natural fol lowing: food and health food stores offer some organic prod ucts. The first two mul ti ples have fairly large q Alfalfa; assortments including fruits and vege ta bles, dairy prod ucts, meat and dry prod ucts. Some of the smaller q Cotton and cotton textiles; super mar kets offer vege ta bles and canned prod ucts, q Fruits, dried (prunes, raisins); and one of them retails beef and bread. Domestic sales are increasing as a result of efforts to develop q Fruits, fresh (apples, blackcurrants, cherries, citrus, elderberries, grapes, melons, mulberries, the domestic market. pears, raspberries, strawberries); Almost 70% of Argenti na’s organic produce is q Fruits, processed (apple concentrate, fruit pulp, exported; exports are rising strongly at an annual grape juice, marmalade, purée); growth rate of about 25%. In 1996, more than 7,000 114 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY tons of organic prod ucts were sold abroad. The cer ti fi ca tion agencies. Cer ti fi ca tion agencies are Euro pean Union is the most impor tant market, taking required to register annu ally with the National about half of Argen ti na’s export volume. The United Reg ister of Cer ti fying Com pa nies for Organic States absorbs most of the remaining half, with some Pro duce. Cer ti fi ca tion bodies that do not comply with exports going to Canada, Mexico and Japan. the Reso lu tion are subject to sanc tions. Organic import prod ucts must origi nate from coun tries having The leading export prod ucts (and some of the organic regu la tions equiva lent to those of Argen tina; exporters) are apples and pears (exported by PAI, these regu la tions must be accepted by SENASA and Agro Roca and Expofruit in Río Negro Province); the name of the cer ti fi ca tion body must appear on the citrus (Ecoc itrus); can ta loupes; small fruits (fresh and National Reg ister. Addi tion ally, each ship ment must proc essed); garlic (El Tre boll del Sur in Mendoza have a cer tifi cate iden ti fying the product as organic. Prov ince, Argentbio in Buenos Aires); onions and As of June 1997, no country had asked for approval other vege ta bles; grains; oil-seeds, soy; cane sugar; of its organic stan dards by the Argen tine authori ties honey; and wine. and no for eign cer ti fi ca tion agencies were on the National Reg ister. Argensun in Buenos Aires is the domi nant exporter of hulled sun flower ker nels and grains. Agro pecuaria Argen ti na’s producers, proces sors, traders, and Paso Viejo (Cór doba Prov ince), Bioolive sa (Buenos con trol and cer ti fi ca tion bodies are united in the Aires), Viñedos San Nicolás sa (which has 1,200 umbrella organiza tion MAPO. This organiza tion hec tares planted to olives) are olive oil pro ducers and coor di nated the 12th IFOAM Sci en tific Con fer ence in exporters. Eco siembra (Buenos Aires) is a fruit and Mar del Plata in November 1998. vege table packer and exporter Useful addresses The export proc essing of meat involves slaugh tering, AGROINVEST butch ering and vacuum- packing, which are sub ject to Tel/Fax: +54-11-43936934/38 inter na tional inspection. Eco- Pampa sa (Buenos E-mail: [email protected] Aires) exports some organic beef to Europe. (Producer, trader) Avri green sa exports organic poultry. Tierra Libre and Sol de Acuario in Buenos Aires are whole salers APROBA and exporters which also offer assortments under (Asociación de Productores de Buenos Aires) Vicente López 2698, RA-Quilmes 1878 generic brands in supermarket and hypermarket Provincia Buenos Aires chains like Disco Jumbo, Norte, Carre four, and in Tel: +54-11-42542222 around 600 health food stores. Fax: +54-11-44320448 (Control, certification) Certification Argencert Bernardo de Irigoyen 760, piso 10, Of. B Argen tina has its own national stan dards for organic ARG-1072 Buenos Aires BA crop and livestock produc tion. SENASA, the Tel: +54-11-43421479 Argentina Agri- Food and Quality National Service, Fax: +54-11-43317185 admin is ters these stan dards. Argen tina is on the EU E-mail: [email protected] list of approved third countries as far as organic Web site: http://www.argencert.com stan dards and cer ti fi ca tion are con cerned. (Control, certification) Ecofarmers sa There are around nine cer ti fi ca tion bodies in the Bernardo de Irigoyen 8, 6 piso country. In 1995, three agen cies were accred ited for ARG-1379 Buenos Aires cer ti fi ca tion: Argencert, OIA (Organi za ción Inter na- Tel/Fax: +54-11-43343124 cional Agro pecuaria) and APROBA (Asocia ción de E-mail: [email protected] Produc tores de Buenos Aires). OIA is mainly (Producers, traders) involved with the cer ti fi ca tion of animal prod ucts. Argencert is the main certi fier and is IFOAM- MAPO Sarmiento 1562, 7º piso, Dept. 6 accredited. ARG-1059 Buenos Aires Tel/Fax: +54-11-43825562 Reso lu tion IASCAV No. 82/92 sets out spe cific E-mail: [email protected] require ments for national as well as for eign (Umbrella organization for the organic sector) CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 115

OIA (soybeans); grains (ama ranth and quinoa); (Organización Internacional Agropecuaria) sweet eners (sugar, honey); and other proc essed food. Av. Santa Fe 830 ARG-1641 Acassuso, Buenos Aires Tel: +54-11-47989084 and +54-11-47934340 Trade Fax: +54-11-47934340 E-mail: [email protected] Bolivia started to export organic cocoa in 1987. In a (Control, certification) more recent year, organic cocoa made up about 75% of all of its exports of cocoa and nearly 4% of its Sol de Acuario Av. Belgrano 355, piso 11 exports of non-traditional prod ucts. Most exports ARG-1092 Buenos Aires were sold in fair trade mar kets. There appears to be Tel/Fax: +54-11-47618482 some export of sugar to France. E-mail: [email protected] (Processor, wholesaler) Anapqui (in La Paz) exports coffee and hibiscus, El Ceibo (also in La Paz) exports cocoa, and Natu raleza Tierra Libre Biodiversidad SA Bernardo de Irigoyen 190, Piso 8 (Cocha bamba) exports dried fruits. ARG-1072 Buenos Aires Tel/Fax: +54-11-43429001 GTZ is involved in an organic trade promotion E-mail: [email protected] project in cooperation with the Bolinvest. (The GTZ (Processor, trader) Adviser is attached to the Bolinvest Santa Cruz Office.) Bolivia Certification Production Bio- Latina and Boli cert are the national con trol and Bolivia is one of the world’s leading producers of cer ti fi ca tion bodies. They are seeking accredi ta tion at organic cocoa and is an impor tant pro ducer of IFOAM and EU levels. Bio- Latina is also active in organic coffee. With sup port from Swit zer land, Columbia, Nica ragua and Peru. For eign con trol and Agruco (Agroe cológica Univer sidad Cocha bamba) cer ti fi ca tion bodies continue to work in Bolivia. An has been instrumental in the growth of the organic example is IMO, which has a sub sidiary in the sector in the country. country.

The umbrella organi za tion, Asocia ción de Potential Organi za cio nes de Pro duc tores Ecológicos de Bolivia (AOPEB), was founded in 1991. It has seven The organic agri cul tural tech niques used in Bolivia member organiza tions. It focuses mainly on cocoa are similar to the coun try’s tradi tional culti va tion although it also deals with prod ucts like coffee and prac tices. As mecha ni za tion and the use of Brazil nuts. high- yield, input-dependent varie ties have not yet spread extensively, the con ver sion of farms to Central de Coop era tivas Agropecuarias (El Ceibo), organic agricul ture can be carried out with relative was the first pro duc ers’ asso cia tion to adopt organic ease and within short periods. prac tices. It groups coopera tives producing 1,500 tons of cocoa on 8,000 hec tares of land. Half of the Useful addresses cocoa pro duced meets organic stan dards. Among the mem bers producing other crops such as paranuts, AGRUCO (Agroecológica Universidad Cochabamba) quinoa, coffee and hibiscus are Anapqui, Cam pesino Casilla 3392, Cochabamba and Minga. Tel: +591-4-252601 Fax: +591-4-252602 Bolivia’s other organic prod ucts include fresh fruits E-mail: [email protected] (cher ries, egg fruit, goose ber ries, grape fruit, guavas, (Development) limes, mandarins and oranges, man goes, papayas, passion fruit, pine ap ples, plums, tama rind, AOPEB (Asociación de Organizaciones de Productores water melons), dried fruit (apples, bananas, fruit teas); Ecológicos de Bolivia) proc essed fruit (juices and purées); nuts (Brazil nuts); J.J. Pérez 268A, Casilla 1872, La Paz, Zona Central oil crops (sesame) and oils; dried leg umes Tel/Fax: +591-2-333331 116 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

E-mail: [email protected] has a large number of coop era tives, small holders, and Web site: http://www.rds.org.bo/aopeb firms prac tising organic agri cul ture. Producers are (Production, development) usu ally mem bers of a regional asso cia tion which Bio-Latina pro vides training and assis tance in produc tion and Edificio Cámara de Comercio, of. 406 mar keting, and promotes cer ti fi ca tion. In Avda Mariscal Santa Cruz, La Paz col labo ra tion with other organiza tions, the Insti tuto Tel/Fax: +591-2-377338 Biodinámico runs an organic seed bank. (Control, certification) Among Bra zil’s organic output are the fol lowing: Bolicert Casilla 13030, General Gonzálves 1317, La Paz Tel/Fax: +591-2-310846 q Cane sugar; (Certification) q Cocoa;

BOLINVEST q Coffee; Calle Abdón Saavedra 2120 PO Box 141 q Cotton; La Paz q Essential oils; Tel: +591-2-411717 Fax: +591-2-414535 q Fruits, fresh (apples, grapes, banana, citrus); E-mail: [email protected] Web site: http://bolinvest.org/main/contact.htm q Grains (quinoa, wheat);

Santa Cruz Regional Office q Herbs and spices (pepper, cloves); Tel: +591-3-473754 Fax: +591-3-471808 q Honey; E-mail: [email protected]/ q Legumes, dried (soybeans, black beans); FIDES q Maté; (Fundición Integral de Desarrollo) Casilla 1911, Avda. Santa Cruz 187 q Nuts (cashew, Brazil nuts); Santa Cruz de la Sierra Tel: +591-3-472278 q Oil crops (sesame); Fax: +591-3-472279 E-mail: [email protected] q Oils and fats (palm oil, palm kernel oil and fat); (Production, trade) q Processed fruit (banana puree);

SIBIO SA q Tea; (Sociedad Impulsora de Productos Ecológicos de Bolivia) q Vegetables, fresh (e.g. garlic). Barrio Hamacas, Calle 1 Oeste Pasillo 3, No. 46 Casilla 4299 Processing Santa Cruz de la Sierra Tel: +591-3-438641 Fax: +591-3-438120 There are at least two asso cia tions coor di nating the E-mail: [email protected] activi ties of pro ducers for proc essing pur poses. One (Trade) is AOPA (Asso ciação de Agricul tura Orgánica do Paraná) which deals with producers of onions, Brazil pota toes and pump kins. The other is Terra Pre ser vada Alimentos Orgánicos in Colombo, Paraná, which Production han dles acerola, coffee, mango, maté, pas sion fruit, soy beans and tea. Rio de Janeiro hosted the UNCED Earth Summit in 1992 (which issued the famous Agenda 21 on Among Bra zil’s proc essing enterprises are Produtos sustainable agriculture). In the same year São Paulo Naturais Planeta Verde Ltda in Lucélia (São Paulo), played host to the 9th International Scientific better known as Fazenda Jacutinga, which is one of Conference of IFOAM. the oldest organic cane- sugar producers and exporters in the world. Duas Rodas Indus trial Ltda in Brazil has a strong tradition in organic and Jaraguá do Sul (Santa Catarina) is a promi nent bio dy namic agri cul ture dating back to 1973. Today, it processor of fruits, producing banana purée for CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 117 example. Ecocitrus in Monte negro (Rio Grande do and rosehip), and spices (chillies). Sul) is a fruit packer, and Agro palma SA in São Paulo (São Paulo) is a palm-oil processor. Latsis Ltda in Trading and certification Curi tiba (Paraná) is a honey pro ducer. There is vir tu ally no domestic market although there In addition, there are numerous small proc essing are a few spe cial ized stores in San tiago which are run facili ties. jointly with the Asocia ción Tierra Viva. Supermar kets are expected to start car rying organic Trade prod ucts as the supply grows.

Although the national Bra zilian market is in its early Exports to Europe and the United States are stages of devel op ment, an increasing number of developing steadily. Agro- Frio sa in San Felipe, prod ucts are sold domes ti cally. Exports are Afodech Ltda in Osorno, Surfruit Ltda in Santiago sig nifi cant and were recently estimated at around and Com er cial Frutícola sa in San tiago are promi nent 3,000 tons annu ally. The most impor tant cer ti fied exporters of organic fruits and vege ta bles. Sociedad prod ucts are: fruits (such as grapes and apples); Agrícola y For estal Casino Ltda in San tiago exports vegeta bles; wheat; tea; coffee; sugar; nuts; sesame; dehy drated wild fruit (rosehips) and aromatic herbs palm oil and essen tial oils. such as cedrón (ver bena). Cambiaso Hermanos sa (San tiago) and Índex Salus Ltda (Villar rica) export Control and certification herbal teas and medicinal herbs respec tively.

The Insti tuto Biodinámico is an IFOAM- accredited The domestic enti ties CCO and PROA carry out cer ti fier. A number of for eign inspec tion bodies are con trol and cer ti fi ca tion activi ties, as do various active in the country. for eign bodies.

Useful addresses Useful addresses AAO CCO (Associação de Agricultura Orgánica) Almirante Riberos 43, Providencia-Santiago Av. Francisco Matarazzo 455, Caixa interna 24 Tel/Fax: +56-2-6353051 05001-900 São Paulo E-mail: [email protected] Fax: +55-11-2638013 (Control, certification) E-mail: [email protected] Web page: http://www.muitosmeios.com.br/aao CLADES (Production, development) (Consorcio Latinoamericano sobre Agroecología y Desarrollo) Instituto Biodinámico Casilla 97, Correo 9, Santiago Caixa Postal 321, 18603-970 Botucatu (São Paulo) Tel/Fax: +56-2-2338918 Tel: +55-14-8225066 E-mail: adm@clades.mic.cl Fax: +55-14- 8223648 (Development) E-mail: [email protected] Web site: www.laser.com.br/ibd Enec Consultores Asociados (Certification, development) Sargento Aldea 902, Chillán Tel/Fax: +56-42-210752 E-mail: [email protected] Chile (Development)

Production and processing PROA (Corporación de Promoción Orgánica Agropecuaria) While organic agricul ture in Chile began in the Simón Bolívar 7305K, La Reina-Santiago 1970s, the major break through took place in the Tel/Fax: +56-2-2775995 1990s. In 1998, there were around 200 farms with (Control, certification) 2,700 hectares under organic produc tion. Crops included fresh fruit for export (raspber ries, apples, Colombia and especially kiwi fruit), fresh vegeta bles (green beans, asparagus), proc essed fruit (frozen purée, e.g. Production of raspberry, and apple concen trate), wine, grains (e.g. quinoa), materials for herbal teas (e.g. camomile Colom bia’s organic output includes the fol lowing 118 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY prod ucts: fresh fruits (bananas, guavas, papayas, organic producers, working on farms ranging from mangoes, pine ap ples), nuts (Brazil nuts), oil crops 0.5 hec tares to 150 hec tares. The area under organic (palm, coconut), coffee, sugar cane, honey, herbs and farming is now esti mated at 3,500 hec tares. The main spices (mint, cori ander, thyme), aloe vera and cotton. pro duce is bananas. Other prod ucts include cocoa; There are also some organic nurseries and organic coffee, raw and toasted; fruits – fresh (blackber ries, flower pro duc tion may be ini ti ated. raspber ries, mangoes), dried and processed; grains (rice); herbs and spices (vanilla); honey; oil crops Processing, trade and certification (coconut); roots, proc essed (such as manioc chips); spirits (rum); sugar cane; tea; and vege ta bles, fresh Processing facili ties are insuffi cient but Columbia and proc essed. has an organic palm oil refinery and has long been a major sup plier of organic palm oil to European There were around 550 hectares of cer ti fied organic organic mar ga rine producers and other proc essing coffee in the mid 1990s, producing 250 - 300 tons of indus tries. Com pañía Envasa dora del Atlán tico Ltda coffee annu ally. As pro duc tion is on the rise, the output in Bar ran quilla pro duces con cen trates and purées of could reach 1,000 tons by the turn of the cen tury. mango and goyave. Agro in dus trial Hun zahua Ltda in Cundi na marca processes sugar cane. Farmers gener ally belong to producers’ groups or coopera tives. APPTA (Asocia ción de Pequeños Exports of other prod ucts to the Euro pean Union and Productores de Talamanca) is a producers’ the United States are increasing. The Davilla organization with around 1,500 members, of which Com pany exports bananas to France and Ger many. 1,050 have certi fied farms; the rest of the farms are There is as yet no formal national dis tri bu tion system, under conver sion. APPTA claims that it covers about but groups of organic farmers make their prod ucts 2,000 hectares of certi fied farms; among their outputs avail able to the local com mu ni ties. in 1996 were 160 tons of cacao and 1,000 tons of bananas. The associa tion is estab lishing a Con trol and cer ti fi ca tion are carried out mainly by fruit- processing plant. for eign enti ties. The national cer ti fi ca tion body Biomuisco col labo rates with Bio- Latina in Bolivia, In gen eral, there is strong interest in organic Nica ragua and Peru. agri cul ture in the country and the organic food sector is devel oping fast. Useful addresses CETEC The Uni ver sity of San José has a research pro gramme (Corporación para Estudios Interdisciplinarios y (Pro grama de Agricul tura Orgánica) on organic Asesoría Técnica) agricul ture and several other projects on aspects of PO Box 26279, Cali organic farming are being car ried out in the country. Tel: +57-23-577018 Fax: +57-23-560496 (Production, processing, development) Processing, trade, certification

Corporación Colombia Internacional In 1995, there were a few coffee-processing Calle 16, No. 6-66, P6, Santa Fe de Bogotá enterprises and two plants producing banana purée. Tel: +57-1-2834988 Fax: +57-1-2867659 Small quanti ties of dried fruit, noo dles and cookies E-mail: [email protected] were also produced. The product range has since (Inspection, development) 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 Organic prod ucts are pro duced mainly for export to Fax: +57-23-835284 the United States and the Euro pean Union. How ever, (Production, development) some uncer ti fied vegeta bles are retailed by the super market Mas por Menos, and dried fruit, tea and Costa Rica medicinal herbs are sold in health food shops.

Production One com pany, Ecoex port, pro duced and exported 200 tons of raw coffee annu ally in the mid 1990s in In 1995, Costa Rica had more than 1,500 cer ti fied addi tion to roasted coffee and other organic prod ucts. CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 119

The company farm was cer ti fied in 1993; the overall aim is to develop systems to enable the com pany also coop er ates with 126 local growers. average small farm er to pro duce enough food for his or her family. An organic depart ment has recently been estab lished in the Min istry of Agri cul ture and a law on organic Useful address pro duc tion and label ling, inspec tion and cer ti fi ca tion INCA, Grupo de Agricultura Sostenible has been drafted. The pro duc er’s asso cia tion, ANAO Caseta Postal 1 (Asocia ción Nacional de Agricul tura Orgánica), San José de las Lajas , La Habana founded in 1995, has a national pro gramme and has Fax: +53-64-63867 established a national cer ti fi ca tion agency, Eco- (Production and development) Lógica. ANAO and Icafé, the national coffee institute, are col labo rating in a project for the Dominica development of the produc tion and proc essing of organic coffee. Organic agri cul ture in Dominica is in its early stages.

Biofair Dominican Republic

During the period 1995 to 1997 the Costa Rican Production, trade and certification Chamber of Commerce organized, with the support of GTZ, a yearly international fair for organic The Dominican Republic has engaged in organic products, BIOFAIR, an initiative that is expected to farming since 1982 and the area devoted to organic be revived. produc tion continues to rise. It is an impor tant pro ducer of organic cocoa and bananas in their Useful addresses various forms. In the 1995/96 season, the coun try’s ANAO output of cer ti fied coffee was esti mated at 250 - 300 (Asociación Nacional de Agricultura Orgánica) tons; an increase to 1,000 tons is expected in the two Apdo 132-2020 Centro Postal, CR-San José to three years from 1998. Tel/Fax: +506-2240911 E-mail: [email protected] (Control, certification) A more detailed list of prod ucts fol lows: cocoa (beans, butter, liqueur and powder); coffee; fruit, processed APPTA (banana paste for baby food, mango purée, shredded (Asociación de Pequeños Productores de coconut); fruits, fresh, other (man goes, pas sion fruit); Talamanca) honey; neem (a natural pesti cide) prod ucts; oil crops Bribri, Talamanca, CR-Limón Tel: +506-7584445 (coconut); roots and tubers, fresh (manioc); spices Fax: +506-7584972 (ginger);sugar cane; and vege ta bles, fresh. E-mail: [email protected] There are nine enti ties producing and/or mar keting Cuba organic prod ucts. They are Apícola Tropical (honey); Con acado (cacao, coffee); Gran (coffee, ginger); Con ver sion to organic farming began in the 1980s Hori zontes Orgánicos (bananas, cacao, coffee); Liga; and food produc tion took off in the 1990s. One Plantacio nes Tropicales (bananas); Proce sa dora de condi tion favouring this devel op ment was the fall Caña Orgánica Cruz Verde (cane sugar); Savid from 1990 onwards in imports of arti fi cial fer til izers (bananas); Cooperativa “Francisco de Rosario and pes ti cides by as much as 70% -80% from their Sánchez” (bananas). peak levels. Con ver sion has not been lim ited to the rural areas, and a large number of fami lies in urban Gran is an NGO that supports sus tain able rural cen tres have been con verting their gardens into develop ment as well as organic and bio dy namic mini- farms since 1991. It is believed that a large part agri cul ture. In 1997 it cov ered 12 vil lages with about of the coun try’s output of sugar and rice will be 1,000 farmers, pro viding credit, tech nical assis tance, organic within a decade. Organic spirits, like rum, are cer ti fi ca tion services and mar keting assistance. Its also pro duced. exports of coffee started in 1992 and are on the rise. Con acado com prises 2,000 small and medium- sized The Cuban Asso cia tion of Organic Agricul ture farmers organ ized in nine cacao and two coffee (ACAO) is run ning mixed livestock- crop trials. The coop era tives. The Ministry of Agricul ture has 120 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY recently given sup port to cer tain organic projects, Tel: +1-809-5213571 including those pro ducing cacao and sugar cane. Fax: +1-809-5213925 (Production, trade)

The small domestic market is open mainly to fruits Plantaciones Tropicales sa and vege ta bles, and the bulk of the coun try’s organic Cesar Nicolas Penson 116 output is exported to Europe and North America. The Santo Domingo DCM Dominican Republic is believed to be the major Tel: +1-809-2212727 sup plier of fresh organic bananas to the European Fax: +1-809-6860755 E-mail: [email protected] Union. Some coffee is exported to Sweden. (Production, trade)

Several for eign con trol and cer ti fi ca tion bodies are Savid sa active in the Dominican Republic. They include Calle Colón 125, Azua DCM BCS, Demeter Associa tion, Eco cert, FVO (Farm Tel: +1-809-5213568 Verified Organic), KRAV and SKAL. Fax: +1-809-5212310 E-mail: savid.sa@codeTel:net.do (Production, trade) Potential Ecuador While a large propor tion of the coun try’s coffee is pro duced without agro-chemicals, only small The organic output of this country includes fresh and quan ti ties have been cer ti fied organic. Rep re sen ta tives proc essed fruit (banana powder, banana flakes and of the National Coffee Board believe that in order to purée), grains (amaranth, quinoa) and sugar cane. raise this volume, efforts to increase aware ness of The advi sory service, Pro me cados, provides organic farming methods, con ver sion pro ce dures and pro duc tion and mar keting sup port. GTZ has assisted market oppor tu ni ties should be made. 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 According to ADAO, a national umbrella organi za tion aim is to gen erate interest in Ecua dor’s organic fruits, for com pa nies and other bodies inter ested in the which are not well known in the main mar kets for devel op ment of organic agri cul ture, the number of organic prod ucts. coffee farmers wanting to learn about organic farming methods and to receive assis tance in conver sion is A struc tured national market for organic prod ucts does growing. Gran sees providing access to credit as one of not exist. MCCH (Maquita Cushunchic, which means the most impor tant tools for assisting farmers ‘Tra ding Like Brothers’) is typical of the farmers’ attempting to engage in sus tain able organic organi za tions which work together to build their own agri cul ture. There seems to be a good poten tial for the dis tri bu tion structures. MCCH has over 220 sales produc tion of several herbs and spices for fla vouring points throughout the country. Inter na tion ally these and medicinal pur poses; they include prod ucts from organi za tions have formed RELACC (Red aloe vera, citrus peel and neem. Lati noameri cana de Comer ciali za ción Comuni taria). Exports are increasing. Useful addresses ADAO It appears that Ecuador has good con di tions for the (Asociación Dominicana de Agricultura Orgánica) pro duc tion of cacao, bananas, tra di tional grains like Benigno del Castillo 4, 2º Planta, Apt. No. 22263 quinoa and ama ranth, sugar cane and various kinds of San Carlos, Santo Domingo Tel: +1-809-2210012 citrus fruits. In 1998, it was thought that these items Fax: +1-809-6899013 could be pro duced and cer ti fied to EU rules within E-mail: [email protected] two years, and first steps were expected to be taken (Production, development) towards the pro duc tion of banana purée, cacao butter and citrus peel oil. Cooperativa “Francisco de Rosario Sánchez” Calle 19 de Marzo 166 Azua DCM Useful address Tel/Fax: +1-809-5214322 Centro de Agricultura Biológica E-mail: [email protected] Bolívar 13-30, entre Juan Montalvo y Estévez de Toral Cuenca Horizontes Orgánicos C&A Tel: +593-7-838293 Apartado 15, Azua DCM (Production, development) CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 121

El Salvador coffee; much of their output is cer ti fied by OCIA.

In 1996, around 4,900 hec tares were devoted to the Organi za tions like Ag ex pront, Altertec and Cemat cer ti fied produc tion of organic coffee. The German have been pro moting organic agricul ture for many entity Protrade pro vides assis tance in the pro mo tion years. Anacafé, which over sees the Gua te malan coffee of organic agricul ture and the estab lish ment of a sector, pro motes organic farming through infor ma tion cer ti fi ca tion body. The Good Food Foundation activi ties, semi nars and devel op ment proj ects. (Netherlands) has project activi ties in the country; their output includes coffee, honey, nuts (cashew, Trade pea nuts), oil crops (sesame seed). In 1997, large quan ti ties of coffee and sesame as well Exports are aimed mainly at the North American as some fruit and spices were exported to Canada, the market. United States and the Euro pean Union. Trade sources esti mate overall exports of cer ti fied organic coffee Useful address during the 1996/97 season at 600 tons; this volume is Agrodesa sa de cv expected to rise in the near future. Some vegeta bles Urban. Buenos Aires are mar keted domes ti cally as well as inter na tion ally. 27 Av. Norte, ES-1221 San Salvador Tel/Fax: +503-2252547 GTZ implements a trade pro mo tion proj ect, which E-mail: [email protected] finances partici pa tion in fairs and sup ports the (Production, trade) crea tion of a cer ti fi ca tion body and the training of cer ti fi ca tion agents. Grenada Useful addresses Gre nada has the begin nings of organic agri cul ture. Ag ex pront (or: Gremial) 15 Avenida 14-72, Zona 13, Guatemala Ciudad Tel: +502-3-622002 Guatemala Fax: +502-3-621950 E-mail: [email protected] Production Web site: http://www.agexpront.com (Association of exporters of non-traditional products) In the mid 1990s, around 7,000 hec tares were planted to organic coffee. Organic coffee is an impor tant Altertec Boulevard los Próceres 18, Calle 9-31 national export; it is traded both raw and roasted. Guatemala City-10 Tel: +502-3683181 Gua te ma la’s other organic prod ucts include cocoa Fax: +502-3683181 and cocoa prod ucts (cocoa butter); fruits, proc essed E-mail: [email protected] (purée of frozen ber ries); fruits, fresh (bananas); (Development) fruits, dried; honey; nuts (cashew); oil crops Asociación Chajulense Val Vaq Quyol (sesame); spices (allspice, car damom, pepper, 14005 San Gaspar Chajul-El Quiche vanilla); and vege ta bles, fresh. Guatemala Ciudad Tel/Fax: +502-2-340085 Sam ples of some prod ucts – different varie ties of (Production, trade) coffee, spices and dried fruits – were exhib ited at Cemat Bio fach 1997 and 1998 in Ger many. Prod ucts in the 28, Ave.18-80, Zona 10, Apdo 1160 process of cer ti fi ca tion were also shown at this fair; Guatemala Ciudad they included flowers, chewing gum and sugar. Tel: +502-2-3631280 Fax: +502-2-3394804 Gua te mala has four large producers of cer ti fied E-mail: [email protected] (Development) 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 Guyana Asocia ción Cha yulense Val Vaq Quyol, cer ti fied by Naturland. There are also a large number of The nas cent organic sector in this country has started small holders who have started to produce organic pro ducing rice, among other prod ucts. 122 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Haiti Useful addresses FHIA Haiti produces fresh fruit (mango) and proc essed Apartado 2067, San Pedro Sula fruit (mango purée and chutney), coffee and honey. Tel: +504-68-2030; +504-68-2078 OGBA (United States) cer ti fies some mango purée Fax: +504-68-2313 and chutney. E-mail: [email protected]:hn (Banana research)

Honduras Red Nacional de Agricultura Orgánica Vecinos Mundiales Production and trade Apartado Postal 3385, Tegucigalpa Tel: +504-30-2003 Organic agricul ture has been practiced in Hon duras Fax: +504-30-2004 since the early 1990s. Prod ucts include fresh fruits (Development) (pine ap ples, bananas, man goes), dried fruit (bananas, man goes, pine ap ples) and proc essed fruit (pine apple Jamaica juice and con cen trate, banana and pine apple purée), sesame, pea nuts and cashew nuts (marañón), oil Jamaica has the beginnings of organic farming. Its crops (coconut) and cocoa. prod ucts include cane sugar and ginger.

There is a model organic farm at a pri vate uni ver sity Useful address (Escuela Agrícola Panamericana) in Zamorano. Jamaica Organic Growers Association FHIA (Funda ción Hon dureña de Inves ti ga ción 16 Windsor Avenue, Kingston 5 Agrícola) in San Pedro Sula is the world authority on Tel: +1-809-978-1721 banana research and has developed several disease- resistant banana varie ties, which bear its Martinique name and are of particular interest to organic growers. NGOs like CINDES (Con sul taría para las The island has the beginnings of an organic Iniciati vas de Desar rollo Económico y Social) in agricul tural sector. The Boris Challe Company Cholu teca are intro ducing the organic pro duc tion of pro duces and exports bananas. coffee and nuts. Nicaragua Hur ri cane Mitch heavily damaged organic pro duc tion units in 1998. Nev er the less, it is believed Production and trade that there are good possi bili ties for developing the sector further, as impor tant initia tives towards this By 1998, organic agricul ture had been practiced in have already being taken. Nica ragua for more than 10 years. It is esti mated that in the mid 1990s it pro duced around 500 tons of Trade and certification organic coffee annu ally on about 1,400 hectares of land. Among its other out puts are cocoa, cotton, dried National dis tri bu tion is in its infancy, although there legumes (beans, soy beans), fresh fruits (bananas), are sev eral health food shops car rying organics. The honey, nuts (cashew), oil crops (sesame, referred to as super market chain La Colonia retails what ever ajon jolí), spices (ginger) and spirits (rum). It also has organic prod ucts are avail able and has expressed some proc essed organic prod ucts (vinegar). interest in other organic goods. The national market is unde vel oped. Some health Most of Hon du ras’ output is exported. It mar kets its food stores and cer tain out lets of the La Colonia dried fruit in Europe. super market chain sell organic prod ucts.

A net work of envi ron mental and rural devel op ment Organic coffee, sesame and beans are impor tant organi za tions, called the Red Nacional de export prod ucts and are sent mainly to the United Agricul tura Orgánica, works on stan dards and States and the Euro pean Union. Clusa (Coop era tivas cer ti fi ca tion, and col labo rates with the Nica ra guan Ligue USA), which has the sup port of the United cer ti fier Cenipae. States Agency for Inter na tional Devel op ment CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 123

(USAID), is an effec tive organiza tion which Various other products are marketed in the United coordi nates the activi ties of farmers, proc es sors and States and the European Union. The national market packers, and pre pares prod ucts for export. is insignificant.

Certification Useful address MAELA There are no gov ern ment regula tions on organic (Movimiento Agroecológico en América Latina y agricul ture. Inspec tion and cer ti fi ca tion are mainly El Caribe) car ried out by the local inspec tion body Cenipae Cas. Correos 1730 (Centro Nica ragüense para la Inves ti ga ción y Manuel Domínguez 1040, Asunción Pro mo ción de la Agricul tura Ecológica). Cenipae Tel/Fax: +596-21-201512 E-mail: [email protected] was founded in 1994 by mem bers of Nica ra guan (Production, development) envi ron mental pro tec tion organiza tions. It now works within the umbrella organiza tion Bio- Latina Peru which also covers Bolivia, Colombia and Peru. Production and trade Useful addresses Cenipae/Bio-Latina In 1998, about 2,000 organic farmers, mainly Colonia del Periodista no.232, Managua smallholders, belonged to farmers’ groups and Tel: +505-2787060 cooperatives and worked an estimated 12,000 Fax: +505-2787090 hectares. Production includes nuts (cashew), oil crops (Control, certification) (sesame), dried legumes, grains (amaranth and Fishnet quinoa), coffee, honey, herbs, cotton and woollen (Farmers International Self-help Network) fabrics. Processing is limited. Apartado Postal 40, Masaya Fax: +505-5226018 Much of Peru’s organic produce is sold in the United Web site: http://www.leibi.de/fishnet States. The European Union is the second market. (Development, information) There is a nascent domestic market, and organic produce is sold in supermarkets, for instance. Panama Peru Naturtex in Vallecita (Arequipa) and Raymisa sa The nascent organic sector in Panama produces cocoa in Lima produce woollen and cotton fabrics. and herbs. The Panama Herbs Group helps to market herbs in the European Union and the United States. Certification

Useful address The local inspec tion and certi fi ca tion body, Inka Cert, Vacarú was founded in 1994, supported by NGOs within Grupo de Consumidores de Productos Orgánicos Peru’s Red de la Agricul tura Ecológica. Guide lines Box 2223, Zona 9A, Panama-City Tel: +507-2633464 and a control programme meeting the requirements Fax: +507-2139151 of EU regu la tions were devel oped with the support of E-mail: [email protected] a GTZ project. Inka Cert carries out its inspec tion and (Development, information) certi fi ca tion activi ties throughout the country. However, prod ucts destined for North America Paraguay continue to be inspected and certified mainly by North American inspec tion bodies. Production includes cotton, nuts (peanuts), dried legumes (soy beans), oil (safflower oil), oil crops Inka Cert and similar ini tia tives in Bo livia, Co lumbia (sesame, sunflower and safflower seeds) and sugar and Nicaragua have formed an as so cia tion called cane. Bio-Latina. The as so cia tion supports or ganic agri cul ture in its member coun tries. Infor ma tion is Processing facilities are limited, but Otisa in exchanged, in spec tion work is co or di nated and Asunción is a large sugar processor and exporter, cer ti fi ca tion is car ried out at prices that small holders trading predominantly with the United States. can af ford. 124 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Useful addresses PO Box 1229, Port of Spain Tel/Fax: +1-868-6259223 Bio-Latina (Production, development) Av. Arenales 645 PO Box 11-0170, PE-Lima 1 Tel: +51-14-247773 Saint Lucia, Saint Vincent and the Fax: +51-14-331073 Grenadines E-mail: [email protected] (Control, certification) These countries have the beginnings of an organic Red de la Agricultura Ecológica sector. Av. Arenales 645 PO Box 11-0170, PE-Lima 1 Suriname Tel: +51-14-247773 Fax: +51-14-331073 E-mail: [email protected] Suriname has 250 hectares under organic (Development) (uncertified) cropping. It produces fruits, vegetables and grains (rice), which were intended to be exported Puerto Rico to the Netherlands, but this has not happened so far.

Some production of processed fruit (banana purée, Useful address for example) takes place in Puerto Rico. Winston Wirht Madeliefjesstraat 14, Paramaribo Useful address Tel: +597-400785 Fax: +597-410555 APARI E-mail: [email protected] (Asociación de Pequeños Agricultores de Rabonbal, (Production, development) Inc.) PO Box 1656, Cidra 00739 Tel/Fax: +1-809-7390222 Uruguay

Trinidad and Tobago Since 1985, Uru guay has taken ini tia tives to pro mote the pro duc tion and the domestic and inter na tional The Trinidad and Tobago Organic Agriculture mar keting of organic pro duce. A National Pro gramme Movement Ltd (TTOAML) had in the beginning of for Organic Pro duc tion, established in 1997, is 1999 about 80 members, of which the Coffee coor di nated by the Pro gramme for the Mod erni za tion Industry Board is the largest. Five members cultivate and Devel op ment of the Horti cul tural Sector of the avocados, ginger, hibiscus, mangoes and pineapples. Min istry of Agri cul ture and has the strong sup port of The Movement also produces herbs like basil, chives, Ger many’s GTZ. Today, more than 150 organic mint, parsley and thyme. farmers work under the national pro gramme. Their output includes beef and dairy prod ucts; fruits, fresh Its efforts are directed towards converting hill (apri cots, small fruits); grains (brown and white rice); farming, largely mono-cropping, into sustainable honey; medicinal and aromatic plants; oil-seeds organic systems. Much of the farming in the country (sunflower); and vege ta bles, fresh. Most farmers is organic by neglect. Four agronomists are being belong to the Uruguayan Associa tion of Organic trained in proper organic farming techniques. Pro ducers (APODU).

Proc essing (of coffee and herbs) is at the pri mary level. There are a number of processing units producing There are many health food stores, and super mar kets dairy products, meat and meat products, and are begin ning to show interest in organic products. processed fruit. Biosur, a wholesaler, buys organic Export des ti na tions are the United States and the produce from smallholders for onward sale to retail United Kingdom. As the prod ucts have not been outlets like supermarkets. Biosur also provides certi fied to inter na tional standards, they are labelled assistance in cultivation and trade promotion. ‘nat ural’ rather than ‘organic’. Nego tia tions for co- certification by the Swiss IMO are taking place. A national market is developing, with interest among domestic consumers increasing rapidly. As early as Useful address 1995, test sales of organic fresh fruits and vegetables TTOAML were carried out in the Disco supermarkets. The (Trinidad & Tobago Organic Agriculture Movement Devoto supermarket chain is entering the organic Ltd) field. CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 125

Export potential is believed to be highest for fresh mangoes) and coffee. plant products, beef, and processed meat products. Useful addresses As indicated above, the Uruguayan Government CENDA strongly supports the organic movement, has its own (Centro de Desarrollo y Ambiente) legislation on production and control, and has filed PO Box 17183, Caracas 1015-A for equivalency with EC Regulation 2092/91. The Tel: +58-2-5717648 Asociación Rural del Uruguay (ARU), the Society Fax: +58-2-5717648 for Consumers of Organic Products, and Urucert are (Development) involved in inspection and certification. Foreign certifiers, including the Argentinean Argencert, are FUNDAGREA (Fundación para el Desarrollo de la Agricultura also active in Uruguay. Ecológica) PO Box 60848, Caracas 1060 Useful addresses Tel: +58-2-4963569 Asociación Rural del Uruguay Fax: +58-2-2838519 Avda. Uruguay 864, 11.100 Montevideo E-mail: [email protected] Tel: +598-2-920484 (Development) Fax: +598-2-9020489 E-mail: [email protected] IPIAT Web site: http://www.aru.com.uy/ (Instituto para la Producción de la Agricultura (Control, certification) Tropical) Apartado 84, 5101A Edo. Mérida Biosur Tel: +58-74-523779 21 de Setiembre 2873/101 Fax: +58-74-523779 Montevideo (Production, development) Tel: +598-2-7103957 Fax: +598-2-7112539 (Trade, development) Other countries/areas

Venezuela In December 1998, there was apparently no certified organic agriculture in Aruba, the Netherlands Venezuela produces organic fresh fruits (such as Antilles, and Saint Kitts and Nevis.

NAFTA countries

Canada, Mexico and the United States, the three New Brunswick, 20 in Nova Scotia, 18 on Prince members of the North American Free Trade Edward Island and 2 in Yukon Territory. Agreement (NAFTA), are substantial producers of a wide range of organic products. Canada and the The main crops are grains (buckwheat, millet, rice, United States have well-developed domestic organic wheat,), oil crops (flax, safflower) and dried legumes markets. All three are large exporters, and Canada (beans, soy, various kinds of peas and lentils). Large and the United States are substantial importers. areas are utilized for grazing and forage. Canada produces fresh fruits (e.g. apples), fresh vegetables Canada and maple syrup (in 1995 it had 1,500 hectares of maple woods). Ginseng is also grown organically (in Production British Columbia). Many dairy farmers work organically and there are some organic poultry farms. By the end of 1997, there were 1,830 certified organic Beef producers are slow to convert to organic and biodynamic farms in Canada, covering roughly farming. 1 million hectares (more than 0.6% of all farmland). The farms are distributed as follows: 429 in Quebec, Processing, trading 399 in Saskatchewan, 344 in Ontario, 288 in British Columbia, 178 in Alberta, 119 in Manitoba, 33 in By the end of 1997, Canada had 164 certified organic 126 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY processors and manufacturers. To date, processing Delta, BC V4G IE8 has concentrated on primary processes such as Tel: +1-604-9400505 cleaning, grading and milling, baking, processing of E-mail: [email protected] Web site: http://www.naturespath.com maple syrup and dairy products, and so on. However, (Cereal processing and trading) the volume of further-processed organic products is rising rapidly. In 1995 the farm-gate value of organic OCIA Saskatchewan Chapter 1 products was estimated at 1% of the value of all Box 83 Socoro, Carlyle, SK S0G 0R0 agricultural production. About 80% of the organic Tel/Fax: +1-306-4532884 output was exported in 1995. Canada imports organic (Control, certification) raw materials and finished products; these imports were valued at an estimated Can$ 75 million in 1995. OCPP (Organic Crop Producers & Processors Ontario) RR 1 KSV 4R1, Lindsay, Ontario There are roughly 1,000 retail outlets in the health Tel: +1-7053242709 food and natural food sectors which carry organic Fax: +1-7053244829 products in addition to their main items. (Control, certification) 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 Mexico is Latin America’s biggest producer of organic in the province of Québec will have to be organic coffee and one of the region’s largest organic certified from 1 March 1999 (domestic) and 1 January producers and exporters overall. Organic 2000 (imports) in accordance with the Québec (biodynamic) coffee production in the country was Accreditation Program. A demand for equivalence started by Finca Irlanda in 1950. A boom in this with the EC 2092/91 Regulation is to be filed in 1999. 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 The country, like many others in the region, was but without any formal need for certification. There severely affected by the consequences of El Niño in are several dozen certifiers in the country, both 1998. For instance, flooding in Chiapas totally Canadian (see useful addresses below) and American destroyed the crop of UDEPOM, one of the country’s (OCIA, FVO, QAI and OGBA) (see section on the main exporters of organic coffee. United States). The national output of organic coffee from a total of Useful addresses 30,000 hectares is currently estimated at more than 30,000 tons annually. Mexico is also a major COG producer of organic cocoa and honey. Among its (Canadian Organic Growers) PO Box 116, Collingwood, ON L9Y 3Z4 other products are agave juice (a sweetener); chicle Tel: +1-705-4440923 (the milky juice of the sapodilla tree which is a raw Fax: +1-705-4440380 material for chewing gum); cotton, loofa and wood E-mail: [email protected] products; fruits, processed (fruit juices); fruits, dried Web site: http://www.gks.com/cog/ (mango); fruits, fresh (apples, avocados, bananas); (Development, certification) grains (amaranth); legumes, dried (beans); medicinal herbs; nuts (peanuts); oil crops (sesame, pumpkin, MAPAQ (Québec Organic Network) coconut); roots and tubers, fresh (potatoes); spices 200 chemin Ste Foy, 11e, Québec G1R 4X6 (cardamom); and vegetables, fresh. Tel: +1-418-6468371 Fax: +1-418-6443049 FSC (Forest Stewardship Council ac, whose head E-mail: [email protected] office is in Oaxaca, certifies sustainable forestry and (Production, certification, trade) its products, which are increasingly re-certified by Nature’s Path Foods, Inc. organic certifiers such as The Soil Association 7453 Progress Way (United Kingdom) and SKAL (the Netherlands), CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 127

Producer groups like ISMAM (Indígenas de la Sierra Productores Orgánicos del Cabo (in San José del Madre de Motozintla, in Tapachula, Chiapas); Cabo) packs and exports large quantities of fresh and Productores Orgánicos del Pacifico sc (Atoyac de dried organic vegetables, mainly to the United States. Alvarez, Guerrero); UCIRI (Unión de Comunidades Huertas de Guadalupe (Chihuahua) produces organic Indígenas de la Región del Istmo, in Ixtepec, apples and apple juice and exports them to the United Oaxaca); UDEPOM (Unión de Ejidos Profesor Otilio States under the brand name Pomitas. Asociación de Montano in Motozintla, Chiapas); Unión de Ejidos Productores de la Tarahumara in Guachochi, which San Fernando (San Fernando, Chiapas); Yeni Navan produces large quantities of organic apples, is (San Francisco Tutla, Oaxaca) and others are struggling to access processing facilities and to reach important producers of certified organic coffee and export markets. other products, both of which often also qualify as fair trade products. They have their own processing Official support plants and sales organization and are no longer dependent on exploitative intermediaries. The Ministry of Social Development (Secretaria de Desarrollo Social, Sedesol) is particularly supportive Some large coffee fincas (farming estates) are run by of the organic movement in Mexico. One of its European families. They include Finca la Patria (in sections, FONAES, has the task of fighting the often Tapachula, Chiapas) and Finca Irlanda. extreme poverty of the small farmers and of 80% of Mexico’s indigenous people. It supports many Access to technical assistance and reasonable forms producer groups involved in organics. of credit remains difficult. Cooperatives like the Unión de Ejidos Maravillas Tenejapa (in Comitán, Trade Chiapas) and CESMACH (Campesinos Ecológicos de la Sierra Madre de Chiapas (in Angel A. Corzo, Most of Mexico’s organic produce is exported. The Chiapas) and others are struggling to gain entry into domestic market is growing very slowly. Only a few export markets. natural and health foods store carry organic products. Farmers’ markets are developing where CNOC (Coordinadora Nacional de Organiza cio nes small producer-owned cooperatives and Cafetaleras) is a national network of 125 peasant associations make their products available to the organi za tions, many of whose members grow local communities. certified organic coffee. CEPCO (Coordinadora Estatal de Produc tores de Café de Oaxaca ac) coordi- Legal basis and certification nates organic coffee growers and sells their output through CAEO (Comerciali za dora Agropecuaria del In 1992, AMEA (Asocia ción Mexicana de Estado de Oaxaca sa de cv). Agricul tores Ecológicos AC), the sec tor’s first umbrella organi za tion, was founded; it took steps to SSS Costa de Tabasco (in Comalcalco, Tabasco) is a have offi cial organic rules adopted by the Direc ción large cooperative of cocoa growers. Pronatura Gen eral de Sanidad Vegetal (DGSV), a sec tion of the (Mérida, Yucatán) and Nectar de Campeche SA de Min istry of Agricul ture (Secre taria de Agri cul tura, CV (Chulon, Yucatán) are among the leading traders Ganad ería y Desarrollo Rural, SAGAR). Rules of honey, which comes mainly from nature reserves (Norma Oficial Mexicana NOM-037- Fito- 1995) in Yucatán. were established in 1995 and amended in 1997. These are incom plete, are con sid ered insuf fi cient and A new product on the organic market is concentrated have not achieved equiva lence with EC Regu la tion agave juice, a natural sweetener, produced on large 2092/91. estates in Jalisco, Guadalajara, and traded by IIDEA (Industrializadora Integral del Agave sa de cv) in Some years ago a large number of farmers Mexico City. dependent on foreign certifying entities created Ecomex AC (Campesinos e Indígenas Ecológicos Not all intermediaries take advantage of the farmers. de México) to represent their interests and to AMSA (Agroindustrias Unidas de México sa de cv), establish a national certification body. Ecomex spun also known as the Esteve Group, works closely with off AMIO (Asociación Mexicana de Inspectores farmers’ groups and provides them with processing Orgánicos), an inspection body, and Certimex, a and exporting facilities. certification body. 128 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

A certification initiative of the University of Colima E-mail: [email protected] is CUCEPRO (Centro Universitario Certificador de (Sustainable forestry certification) Productos Orgánicos). ISMAM 18 Calle Poniente No. 2, 30700 Tapachula, Chiapas Among the foreign certification agencies working in Tel/Fax: +52-962-52404 Mexico are OCIA (which has a Mexican chapter) and (Producer, trader) Oregon Tilth (United States), IMO (Switzerland, Bolivia), BCS and Naturland (Germany). UCIRI Ap. Postal 60, 70110 Cd. Ixtepec, Oaxaca Tel/Fax: +52-971-30426 Potential E-mail: [email protected] (Production, trade) Mexico’s organic sector has a high potential for growth. Market demand is growing, the infrastructure UDEPOM is improving and the business community at all levels 3ta Norte 410 is becoming aware of the expanding market for 30900 Motozintla de Mendoza, Chiapas certified organic products. Tel/Fax: +52-964-10271 E-mail: [email protected] Web site: http://www.udepom.com Useful addresses (Production, trade) AMSA (Esteve Group) Bosques de Alisos 45-A2 United States Bosques de las Lomas, Cuajimalpa 05210 Mexico-DF Introduction Tel: +52-5-2576500 Fax: +52-5-2597785 (Processor, trader) The United States market, estimated at $4.2 billion in 1997, had another year of over 20% growth in 1998. CEPCO/CAEO The most phenomenal growth has taken place in the H. Esc. Naval Militar 708, Col. Reforma snack and candy sector, very important in the United 68050 Oaxaca (Oaxaca) States, with annual growth rates of far over 100%. Tel: +52-452-34001 or +52-452-34996 The United States is not only a major importer, both Fax: +52-452-33904 of raw materials mainly from developing countries E-mail: [email protected] (Production, trade) and of processed products from developed countries, but it is also an important exporter, mainly of cereals, Certimex soy and pulses as well as of some processed products, Antonio M. Ruiz 11 predominantly to Europe and Japan. U. Isste. CP 56231, Chapingo, México Tel/Fax: +52-595-42060 Production E-mail: [email protected] (Certification) Close to 5,000 cer ti fied or ganic pro ducers farmed a CNOC total of 369,000 hec tares in the United States in 1995. Tabasco 262 More land may be managed with or ganic farming Desp. 301 Col. Roma, CP 06700 México-DF methods but is not certi fied. Federal regu la tions Tel: +52-5-5140205 re quiring the cer ti fi ca tion of foods sold as or ganic are Fax: +52-5-2070508 not yet in place, and most States do not oblige or ganic (Trader) farmers or food manu fac turers to be cer ti fied in order FONAES to market foods as such. Fur ther more, proces sors Av. Parque Lira 65 may be pur chasing in gre di ents claimed to have been San Miguel Chapultepec, 11850 Mexico DF pro duced in ac cor dance with the Cali fornia Or ganic Tel: +52-5-2726205 Foods Act of 1990 but not cer ti fied. Nev er the less, in Fax: +52-5-2725939 the grain- producing States with the largest areas (Ministry of Social Development) under or ganic produc tion, most or ganic farms are FSC cer ti fied or ganic. (Forest Stewardship Council) Hidalgo 502, Centro, 68000 Oaxaca The acreage cer ti fied organic in 1995 was down on Tel/Fax: +52-983-71145 the figure for 1992, a result of the with drawal of CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 129 organi cally managed range- land from cer ti fi ca tion. len tils, soybeans) are also pro duced organically; Because the U.S. Depart ment of Agricul ture soybeans have a par ticu larly lucra tive market in the disal lows the organic label ling of meat products, United States and abroad. Some 102,000 hec tares organic beef producers have no incentives for planted to grains were cer ti fied organic in 1995, as maintaining vast range-lands under costly were about 25,000 hec tares under leg umes for cer ti fi ca tion pro grammes. The number of hec tares drying. Almost 20,000 hectares of soy beans were used as pasture or range- land declined by 36% to cer ti fied organic in 1995. Oleagi nous crops (flax, about 112,000 hec tares between 1994 and 1995. Beef sun flower) are also impor tant. cattle, dairy cattle, chicken and turkey for meat, layer hens, sheep, pigs and ducks are among the cer ti fied The largest farmers’ organization is the Organic Crop live stock. Improvement Association (OCIA), with roughly 40,000 farmers. It has chapters in many Latin Certified organic crop-land, on the other hand, American and Asian countries. continues to expand at a double-digit rate. It rose to about 258,000 hectares in 1995. Output includes Processing and manufacturing grains, pulses, cotton and other products. About a quarter of the land produces livestock feed, the need The United States has proc essing and manu fac turing for which is rising rapidly with the heavy demand for facili ties for all types of organic items. Its proc essed organic dairy products in the United States. food prod ucts include baby food, baked goods, cereals, con ven ience foods (snacks, frozen meals, The labelling of dairy products and fresh eggs is the side dishes), cooking and salad oils, flours, herbs, purview of the Food and Drug Administration rather liquo rice, meat and dairy prod ucts, nuts (almonds, than the Department of Agriculture; these products pea nuts, wal nuts), proc essed fruits (apples, avo cados, can be labelled organic and have strong markets. citrus fruit, pears, prunes, rai sins), wines and Nevertheless, beef cattle and meat poultry, as well as proc essed vegeta bles (canned beans, proc essed swine, lamb, goats, and other meat animals continue toma toes, soy sauce, sprouts). to be certified organic, in some cases for export to foreign markets. Well-known proces sors and manu fac turers are Arrow head Mills (cereal prod ucts), now belonging to The area under certified organic fruit and vegetable the Hain Food Group in Boulder, Colorado; production amounted to around 43,000 hectares in Cascadian Farm Inc. in Sedro-Woolley, Washington 1995, making up about 12% of all certified land. The (fruit and vegetable-based products, including certified area planted to fruits, vegetables, nuts, aloe deep-frozen products and ready meals); Coleman vera and mushrooms account for around 24% of all Natural and Organic Meat in Denver, Colorado land under food crops. In 1994, more than 1% of the (meat); Earth’s Best in Pittsburg, Pennsylvania (baby land under vegetables was certified organic. The food), belonging to the Heinz Group; Florida Bottling States of California and Texas have the largest areas Inc. in Lakewood, Florida (juices); Florida Crystals, under organic vegetable production. Palm Beach, Florida (sugar); Horizon Organic Dairy in Boulder, Colorado (dairy products and juices); In 1996, the acreage under cer ti fied organic vege table Knudsen in Chico, California, part of the Smuckers produc tion and the cer ti fying authori ties were as Group (juices); M & M Mars in McLean, Viriginia follows: 7,300 hectares, Texas Depart ment of (confectionary); Made in Nature, part of the Agricul ture; 5,313 hectares, California Cer ti fied Vacu-Dry Company in Santa Rosa, California (fruits, Organic Farmers (CCOF); 500 hectares, Florida dried fruits, juices); Montana Flour & Grains in Fort Certi fied Organic Growers and Con sumers; 350 Benton, Montana (cereals, specializing in the wheat hec tares each in Idaho and Wis consin, cer ti fied by the grain Kamut); Muir Glen in Petalumna, California States’ main cer ti fying bodies. The cer ti fied areas in (tomato products); National Raisin Company in all these States expanded between 1993 and 1996. Fowler, California (dried fruits); Pavich Family Subsequent fig ures are not avail able. Farms in Terra Bella, California (fruits, including dried fruits, and nuts); San-J(irushi) International Inc. The United States has a sig nifi cant output of organic in Richmond, Virginia (soy sauces); Organic Valley grains (barley, buckwheat, corn, millet, wheat), and in La Farge, Wisconsin (dairy); Spectrum Naturals pro duces several organic rice varie ties. An Inc. in Petaluma, California (oils) and Wholesome assortment of dried leg umes (all kinds of beans, Foods in Tigard, Oregon (sugar). Celestial 130 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Seasonings in Boulder, Colorado is a renowned Boulder, Colorado. Alfalfa’s had about 10 stores in processor, importer and exporter of tea and herbal 1996, including two in Canada. teas. Lily of the Desert in Irving, Texas (aloe vera) is an example of an organic producer and processor also Prod ucts of organic cotton and other fibres, per sonal active in the supplement and personal care field. care prod ucts, vitamins and herbal reme dies are impor tant to the United States organic industry. Levi Trade Strauss, Nike and Gap buy organic cotton and mix it with con ven tional cotton. The niche market for 100% The United States is an important exporter of cereals organic cotton is growing despite high prices. and legumes; its main markets are the European Union and Japan. It is also a significant importer of Other than a small amount of organic coffee tropical and processed products. pro duced in Hawaii, most organic coffee sold in the United States is imported. How ever, most roasting It is the second largest organic market in the world and bag ging of cer ti fied organic coffee beans take after the European Union. Continuing its pattern of place within the country. double-digit growth rates for six years running, the domestic market was valued at an estimated $4.2 There are numerous organic traders, brokers, billion in 1997. However, this was only a little over wholesalers, processors and manufacturers, many of 1% of all of the country’s food sales in that year. Sales them members of OTA (Organic Trade Association, of natural products, including organics, through the former OFPANA) through which they can be mainstream outlets rose by 8% between 1996 and contacted. Two of the oldest and best-known 1997. Retailers of natural products and health foods, wholesalers (and importers) are Tree of Life in St of which there are close to 13,000, had an average Augustine, Florida and Eden Foods Inc. in Clinton, sales increase of 9%. Michigan. Another well-known wholesaler is Rapunzel (Kinderhook, New York) a subsidiary of the About 62% of retail sales take place at natural German company Rapunzel. One of the oldest brokers product stores, 31% at super- and hypermarkets of is Mercantile Food Company (Philmont, New York), which 50% now carry organics, and 7% through which has set up organic projects in developing clubs, food box systems and food service outlets. countries, including the Dominican Republic.

A wide array of organic products can be found in Recent studies have shown that 12% of American conventional supermarkets. These are fighting average shoppers are naturalists inclined to buy organic profit margins of 10% or less, and are facing products. increasing competition from mass-market discounters as well as natural food supermarkets. They are Food laws and regulations, control and therefore seeking to add to their customer base, create certification new sales and enhance profits. The Organic Foods Produc tion Act (OFPA) was Natural food supermarkets are a special feature of the adopted as part of 1990 Farm Bill in order to estab lish United States market. The largest supermarket chain a National Organic Pro gram (NOP). OFPA has three dealing in organics is run by Whole Foods Market, pur poses: to estab lish national stan dards gov erning the Inc., based in Austin, Texas. In 1998, it had 85 mar keting of cer tain agri cul tural prod ucts as supermarkets selling natural food and non-food organically produced; to assure consumers that products in about 20 States, where it is known under organi cally pro duced foods meet a con sis tent stan dard; various names including Fresh Fields, Wellspring and to facilitate inter- State com merce in fresh and Grocery, Bread & Circus, Bread of Life, Merchant of proc essed food that is organi cally pro duced. Vinoland and Mrs. Gooch’s. From $92.5 million in 1991, its turnover rose to $401.7 million in 1994; in On 16 December 1997, a proposed regulation to the third trimester of 1998, its turnover was no less establish the National Organic Program was than $325 million, 25% up on the corresponding published in the Federal Register for public comment 1997 period. until 16 March 1998. It included detailed requirements and guidelines for the production and Another important chain with over 50 stores in handling of organic agricultural products, both crops western United States is Wild Oats, which is based in and livestock. However, it was withdrawn after more CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY 131 than 275,000 comments on various controversial Rt. 3 Box 162-C, Winona, MN 55987 issues were received by USDA, which is now Tel/Fax: +1-507-4548310 working on a revision. It is hoped that a new draft E-mail: [email protected] regulation can be published before the end of 1999. (International organization of organic inspectors) OCIA In the meantime there are no clear rules or regulations (Organic Crop Improvement Association) on organic products. About 30 States have some laws 1001 Y. Street Suite B, Lincoln, NE 68508-1172 (for instance, labelling laws governing the use of the Tel: +1-402-4772323 term ‘organic’); about 20 States have no legislation Fax: +1-402-4774325 whatsoever on organics. There also appears to be E-mail: [email protected] Web site: http://www.ocia.org great differences in what the laws cover in each State. (Control, certification) About 13 States operate organic certification programmes. Other States have standards, but no OFRF certification programmes. As a result, the United (Organic Farming Research Foundation) States market for organic products accepts both P.O. Box 440 certified and uncertified products. There are more Santa Cruz, CA 95061 than 30 private certification bodies in the country. Tel: +1-831-4266606 Fax: +1-831-4266670 E-mail: [email protected] Further information on the USDA National Web site: http://www.ofrf.org Organic Program can be obtained at http://www.ams.usda.gov/nop. OGBA (Organic Growers and Buyers Association) 7362 University Ave, NE Suite 208, Fridley, MN Information 55432 Tel: +1-612-5721967 AgriSystems International (e-mail: [email protected]) Fax: +1-612-5722527 publishes a newsletter on organic trends. Natural E-mail: [email protected] Business Communication ([email protected]) issues (Control, certification) a natural business newsletter. New Hope OTA Communications ([email protected]), the organizer (Organic Trade Association) of the annual Expo West (Anaheim) and East 50 Miles Street (Baltimore), publishes the Organic Times, a version of POB 1078, Greenfield, MA 01302 its Natural Food Merchandiser focusing on organic Tel: +1-413-7747511 products. Fax: +1-413-7746432 E-mail: [email protected] Useful addresses Web site: http://www.ota.com (Association of organic traders and manufacturers) CCOF (California Certified Organic Farmers) OTCO 115 Mission Street, Santa Cruz, CA 95060 (Oregon Tilth Certified Organic) Tel: +1-408-4232263 860 Hawthorne Ave NE, Suite 200 Fax: +1-408-4234528 Salem, Oregon 97303 E-mail: [email protected] Tel: +1-503-3780690 (Control and certification in California) Fax: +1-503-3780809 E-mail: [email protected] FVO Web site: http://www.tilth.org (Farm Verified Organic) (Inspection, certification) RR #1, Box 40-A, Medina, ND 58467 Tel: +1-701-486-3586 QAI Fax: +1-701-486-3580 (Quality Assurance International) E-mail: faremvo@dakTel:com 12526 High Bluff Drive, Suite 300, San Diego, CA (Control, certification) Tel: +1-619-7923531, Fax: +1-619-7928665 IOIA E-mail: [email protected] (Independent Organic Inspectors Association) (Control, certification) 132 CHAPTER 4 – WORLD SUPPLY BY GEOGRAPHICAL REGION AND BY COUNTRY

Rodale Institute Tel: +1-202-7201176 222 Main Street, Emmaus, PA 18049 Fax: +1-202-7203799 Tel: +1-610-6831400 Web site: http://www.fas.usda.gov Fax: +1-610-6838548 E-mail: [email protected] USDA - National Organic Program (Production) 14th & Independence Ave., SW 2510S PO Box 96456 USDA - Foreign Agricultural Service Washington, D.C. 20090-6456 Horticultural & Tropical Products Division Tel: +1-202-7208405/3252 Organics Staff Fax: +1-202-2057808 1400 Independence Ave., SW, AG Box 1049 Web site: http://www.ams.usda.gov Washington, D.C. 20250-1049 Chapter 5

WORLD SUPPLY BY PRODUCT GROUP

This chapter gives an overview of the world supply of world supply situation. The countries are not organic products by major product group. The lists necessarily cited in the order of their importance as given of products and supplying countries are far suppliers of the products under review. from complete, but they do give an indication of the

Animal products

Meat, dairy products, eggs Honey

The European Union and the United States are Mexico is an important producer of organic honey. important producers of organic meat and dairy Among the other developing country producers are products. Organic meat is likewise produced in Argentina, Bolivia, Brazil, China, Colombia, Costa Argentina, Uruguay and New Zealand (lamb). Rica, the Dominican Republic, Egypt, El Salvador, Guatemala, Haiti, Madagascar, Turkey, Uganda, The European Union and the United States are the United Republic of Tanzania, Uruguay and major producers of milk and a wide range of dairy Zambia. In Europe, the Balkan States, Hungary and products. Among the leading European producers Poland are producers, as is New Zealand in Oceania. are Austria, Belgium, Denmark, France, Germany, Sweden, Switzerland, the Netherlands and the Fish United Kingdom. Other producers and their products include: Argentina, milk, cheese and eggs; Some organic fish farming takes place, including Egypt, cheese; and Turkey, milk. 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 items in this product group. Several other countries produce certain quantities of vegetables for domestic Both the European Union and the United States are consumption. major producers of vegetables, roots and tubers, including potatoes, carrots, onions and tomatoes. Among the other producers are Brazil, Chile, Costa Israel is also an important supplier. Some developing Rica, Ghana, India, Mexico, Poland, Tunisia, Turkey, countries (e.g. Argentina and Egypt) offer a variety of Uganda and Uruguay. 134 CHAPTER 5 – WORLD SUPPLY BY PRODUCT GROUP

Legumes (pulses) Haiti, Honduras, India, Madagascar, Mexico, Morocco, Nicaragua, the Philippines, Poland, The United States is a major producer of dried Senegal, South Africa, Sri Lanka, Sudan, Togo, beans. Other producers include Argentina, Brazil, Tunisia, Turkey, Uganda, the United Republic of Egypt, Honduras, India, Mexico, Nicaragua and Tanzania, Uruguay, Venezuela and Zimbabwe Peru. Turkey produces some chickpeas and lentils, produce fresh fruits. and Egypt grows peas. The output of the European Union includes peas, lentils, brown and white beans, Fruits, dried and chickpeas. (For soya beans, see the section on oil-seeds below.) Turkey is an important source of a wide variety of dried fruits. A large volume is also produced in the Spices and herbs United States (raisins in California, for instance), and in the Mediterranean (dates in Egypt, Algeria Egypt is an important supplier of a variety of herbs and Israel). Among the other suppliers are Latin and spices. Substantial production also takes place America and the Caribbean (Argentina, Colombia, in India, Malawi and the United Republic of Costa Rica, Guatemala, Honduras and the Tanzania. Many other developing countries offer Dominican Republic), Africa (Togo, Tunisia, herbs and spices, including Argentina (which grows Morocco, Uganda), Asia (Sri Lanka and India) and a wide range of herbs), Brazil, Chile, China, Eastern Europe (Poland and Hungary). Colombia, Costa Rica, the Dominican Republic, Guatemala, Indonesia, Jamaica, Mexico, Morocco, Raisins, dates, apricots, apples, figs, bananas and Madagascar, Mauritius, Morocco, Nicaragua, Papua other tropical fruit are typical dried fruit products. New Guinea, the Philippines, Sri Lanka, Togo, Tunisia, Turkey, Uganda and Zimbabwe. Some Nuts herbs and spices are produced in the European Union, especially herbs like sage and parsley. It also Turkey is a major producer of nuts, including hazel produces organic lavander. nuts. The United States (producing almonds; for example) and the European Union also offer organic Vanilla is produced in the Comoros, Costa Rica, nuts (Italy and Spain: hazelnuts and almonds; Guatemala, Indonesia, Madagascar, Mexico, Papua France: walnuts). Cashew nuts are produced in New Guinea, Tonga and Uganda, among other Latin America (Brazil, El Salvador, Guatemala, developing countries. Honduras, Nicaragua, Peru), Africa (Madagascar, Mozambique, United Republic of Tanzania) and Fruits and nuts Asia (India and Sri Lanka). Peanuts are grown in Argentina, Ghana, India, Israel, Mexico, Paraguay Fruits, fresh and the United Republic of Tanzania, and Brazil nuts in Brazil and Colombia. China (walnuts), the The European Union, the United States, Israel and Republic of Moldova (walnuts) and Tunisia also Australia are some of the major producers of various offer nuts. kinds of organic fruits. Among the other producers are Chile and Argentina, countries around the Mediterranean (for instance Egypt), and many other Cocoa, coffee, tea and maté countries particularly in Latin America and the Caribbean, and Africa. The Dominican Republic is Coffee is one of the most important organic products an important supplier of bananas. This fruit is exported by developing countries. It is produced produced in many other countries in the Latin mainly in Latin America, where the largest American and Carribean region, as are mangoes. producing country is Mexico. Among the other New Zealand has a significant crop of kiwi fruit, as producers are Bolivia, Brazil, Colombia, Costa have Chile, France and Italy. Berries are produced Rica, the Dominican Republic, Ethiopia, for instance in Argentina and Hungary. Guatemala, Haiti, Honduras, India, Indonesia, Madagascar, Malawi, Nicaragua, Papua New Brasil, Burkina Faso, Burundi, Cameroon, Canada, Guinea, Peru, the Philippines, Sri Lanka, Togo, Chile, China, Colombia, Costa Rica, the Dominican Trinidad and Tobago, Uganda, the United States Republic, Ecuador, Egypt, Ghana, Guatemala, (Hawaii) and Venezuela. CHAPTER 5 – WORLD SUPPLY BY PRODUCT GROUP 135

India is the biggest producer of organic tea, followed Seed grain by Sri Lanka. Tea is also produced in countries like the United Republic of Tanzania (which offers Some seed grain is produced in the European Union several varieties), Argentina, Brazil, China (green (for instance in Germany and the Netherlands), tea), Costa Rica, Egypt, Japan, Nepal (green tea) and Switzerland and the United States. This sector is Papua New Guinea. becoming crucial in efforts to create a food chain that is totally free of genetically modified Bolivia is a major producer of cocoa. Among the organisms. other producers are Belize, Brazil, Costa Rica, the Dominican Republic, Gabon, Ghana, Guatemala, Honduras, Côte d’Ivoire, Madagascar, Mexico, Oil-seeds and oleaginous fruits Nicaragua, Panama, Papua New Guinea and Togo. Some of the most important oil crops are sunflower, Maté is produced in Argentina and Brazil, for instance. safflower, pumpkin, sesame, flax, coconut, olive and soya bean.

Cereals Many developing countries produce oil-seeds, as do Europe and North America. Examples of producers For human consumption worldwide are listed below:

Cereals are an important organic staple food q Coconut: Colombia, Costa Rica, Dominican product. They include wheat, durum wheat, spelt, Republic, Honduras, India, Madagascar, Sri Lanka; rice, rye, barley, oat, maize, millet, buckwheat, q Linseed: Russian Federation; quinoa and amaranth. q Olives: Mediterranean countries, Argentina; The European Union and the United States are large q Pumpkin seeds: China, Hungary, Mexico. producers of wheat, as are Canada and Australia. Among the other producers are Argentina, Brazil, q Safflower seeds: Canada, Argentina, Paraguay; China, the Czech Republic, Egypt, Hungary, q Sesame seeds: Bolivia, Brazil, Burkina Faso, Poland, the Russian Federation, Slovakia and China, El Salvador, Gambia, Guatemala, India, Turkey. Malawi, Mexico, Nicaragua, Paraguay, Peru, Sri Lanka, Sudan, Turkey and Uganda. Rice is mainly produced in Asia, for instance in China, India, Indonesia, Myanmar, Pakistan, the q Soya bean: United States (an important Philippines, Sri Lanka and Thailand. It is also grown producer), Argentina, Austria and France. in Canada and the United States; France, Italy and q Sunflower seeds: Hungary, United States, Spain; and Costa Rica, Guyana, Suriname and Argentina, China, Croatia, France, Paraguay, Uruguay. Supplies are increasing in a number of Uganda, Uruguay. countries. The three European countries mentioned are by far the largest suppliers of organic rice to the Soya bean is an important item as it goes into the European market. production of food items that replace meat and dairy products, for instance soy milk, tofu and cheese. As Old varieties of cereals like amaranth are gaining in has been mentioned, the United States is a large importance. Amaranth and quinoa are produced in producer of soya beans. Production also takes place Latin American countries like Bolivia, Brazil, in Argentina, Bolivia, Brazil, China, Croatia, Mexico and Peru. Kamut, a very old wheat variety, Nicaragua, Paraguay, Uganda, Zimbabwe and the is mainly produced in the United States. European Union. The search for GMO-free soy and soy products (such as lecithin) for use in the Millet and buckwheat are grown in the United production of organic and conventional products is States, Canada, the Russian Federation and growing strongly. Argentina. 136 CHAPTER 5 – WORLD SUPPLY BY PRODUCT GROUP

Prepared foodstuffs

Vegetable oils and fats Fruits

A large volume of oil is produced in countries Some coun tries/areas offer a wide range of importing oil-seeds. However, some developing proc essed fruit products, including Argen tina, the countries also produce oil. Examples are Argentina, Euro pean Union, Sri Lanka, the United States and which has a considerable output of olive oil and Turkey. Others offer a smaller range of prod ucts. A sunflower oil; Benin (palm oil and coconut oil); level of proc essing takes place in places like India Bolivia; Brazil (palm oil, and palm kernel oil and (mango concen trate), Brazil (banana purée) and fat); China; Colombia (a large output of palm oil); Puerto Rico (banana purée). Madagascar; and the United Republic of Tanzania. The developing countries/areas producing juices, purées or pulps and concentrates include Bolivia, Sugars and sugar confectionery Brazil, China, Costa Rica, the Dominican Republic, Cane sugar is pro duced in many developing Honduras, Hungary, India, Israel, Madagascar, coun tries/areas, including Argen tina, Brazil, Mexico, Papua New Guinea and Puerto Rico. Colombia, Costa Rica, Cuba, the Dominican Republic, Gua de loupe, India, Mada gascar, Mau ri tius, Alcoholic beverages Mexico, Para guay, Myanmar, the Phil ip pines, Réunion, South Africa and Sri Lanka. Pro duc tion of Organic wine is produced in France, Germany, organic beet sugar (in Europe) is in its infancy. Greece, Italy, Portugal, Romania and Spain, as well as in Argentina, Chile, the Russian Federation and the Other sweeteners United States. France, Germany and Italy also make organic champagne or champagne-type wines. Mexico produces agave juice as a sweetener, Organic beer is produced in the European Union, Belgium offers cereal-based sweeteners, and Italy mainly in Belgium, Denmark, France, Germany, the makes a citrus-based product. Netherlands and Switzerland.

Among the other sweet eners are maple syrup There is some output of rum in Cuba, Costa Rica (mainly from Canada) and date syrup (largely from and Nicaragua. Organic grappa (a brandy distilled the Middle East). Concen trated apple and pear from the skins, pips, and stalks of the grapes after juices, basi cally from the Euro pean Union and the they have been pressed for wine-making) is United States, are also used as sweet eners. Stevia produced in Italy, organic cognac in France and rebau diana, a plant from the jun gles of Brazil and organic whisky in Scotland. Para guay, is the source of a con cen trated juice with potent sweet ening prop er ties. Food additives

Preparations of vegetables, nuts and The supply of organic food additives is other parts of plants underdeveloped. One of these additives is annatto, a natural food colourant produced from the pulp Vegetables surrounding the seed of the tropical American tree Bixa orellana. It is produced in Malawi, other East Both the Euro pean Union and the United States are African countries and in tropical America. Guar major producers of proc essed vege ta bles, of which gum (obtained from a legume with the same toma toes are a common example. Among the other common name) and carob gum (from the producers are Australia, Costa Rica, Hun gary, leguminous carob or locust bean tree) and other Turkey and the United Republic of Tanzania. gums are produced in the Mediterranean basin, East Dehy drated vege ta bles are pro duced by Argen tina, Africa and Asia. Among the numerous other Germany, Hun gary and the Nether lands. Bel gium, products in this category are alginates (obtained Denmark, Germany and Switzer land produce from marine brown algae like kelp) and carrageenin frozen vege ta bles. (from red algae). CHAPTER 5 – WORLD SUPPLY BY PRODUCT GROUP 137

Other processed food products Netherlands and Switzerland, and increasingly also France, offer an almost complete range of processed The European Union, North America (United States, foods, as does the United States. Their output Canada) Japan, Australia and New Zealand, and includes cereal products, meat products, preserves, Argentina are the main producers of this category of dried and frozen food, ready meals and other products. convenience foods. The United Kingdom offers, for instance, jams, marmalades and cereal products; Italy For more detailed information on producing pasta, jams and marmalades; Belgium pasta and other countries and product groups, the reader should refer cereal products including cereal-based sweeteners. to the country chapters. Denmark, Germany, the Germany is the largest supplier of organic baby food.

Miscellaneous products

Feedstuff Tanacetum) cinerariifolium or C. coccineum; it is produced in East Africa and elsewhere. Neem, from Individual farms produce fodder, and several the East Indian tree, Azadirachta indica (Melia countries have set aside areas for animal forage. Azadirachta), is produced in India, Africa and However, countries with considerable livestock Mexico. Rotenone (from Derris elliptica), quassia farming operations (as in Demark, France and the (from the South American tree Quassia amara) and Netherlands) import proteins. These include soya ryania (from the tropical South American shrub beans and fodder-quality grains from the United Ryania speciosa) are produced in various parts of the States and other countries. Argentina produces soya tropics. Products from such species as Albizia beans for fodder. gummifera, Cassia fallacina, Cassia didymobotra, Euphorbia tirucalli and Tephrosia vojellia, produced Cotton and used for example in Malawi and other East African countries, and many other products have not Organic cotton is an important agricultural item for yet found their way into the market place. many developing countries. The United States is the main producer, but it is also produced in India, Egypt, Other non-food products Turkey, Argentina, Colombia, Paraguay, Pakistan, East and West Africa, Tunisia, Nicaragua and Peru. Organic products such as cut flowers and pot plants, hemp, jute, leather, sisal, wood and wood products, Natural pesticides and repellents wool, and ingredients for cosmetics and cleaning products are likely to enjoy a growing market in the The natural pesticide pyrethrum is obtained from the future. powdered flower-heads of Chrysanthemum (or

Part III

MAJOR MARKETS

Chapter 6

DENMARK

Introduction Though a small country, both in population and in Advancement of Organic Food Production in geographical size, Denmark has become one of the Denmark, most of the recommendations of which pioneers in promoting organic agriculture, and in the have been implemented. In January 1999, the production and marketing of organic food and Ministry of Food, Agriculture and Fisheries beverages. Since the first organic legislation was published Action Plan II to support organic introduced in Denmark in 1987, it has been the development during the period 1999-2003. It Government’s policy actively to promote organic provides policy guidelines and recommendations on farming. The rapid development of the sector in organic farming (e.g. conversion), product and recent years is to a great extent a result of strong quality development, marketing and distribution, cooperation among three parties, i.e. government export marketing, training, research, etc. authorities, organic farmers and the retail trade, in particular FDB (Coop Denmark), which have all It is also significant that an association of suppliers been working towards a common goal. and processors of organic food and beverages (Øgruppen -Dansk Økologileverandørforening) was In 1993, FDB made a policy decision to lower the established in 1998. One of its major objectives is to retail prices of organic products drastically; this promote sales of organic products, and it is expected stimulated sales enormously. In 1995, the to play a major role in the Danish organic trade. Government issued an Action Plan for the

Supply and demand

Production partly due to government policy. The Government started to grant subsidies to organic farmers and Organic farming accounted for 2.3% of the total various organic projects in 1988. Organic farming Danish farmland (corresponding to about 64,300 has also been subsequently subsidized under EU hectares) in 1997. By 1998, these figures had risen to environmental programmes. 3.6% and 99,000 hectares. The number of organically run farms increased from 677 in 1994 to 2,228 in The Government continues to promote organic 1998. In 1999, the number of farms is expected to rise farming. The 1995 Action Plan for the Advancement to 3,300 in addition to about 800 farms in conversion. of Organic Food Production – put forward by the Ministry of Food, Agriculture and Fisheries – set a Though, generally speaking, most Danish farmers target of 200,000 hectares, corresponding to 7% of all have been reluctant to go into organic farming, a farmland, for the year 2000. The Action Plan II significant switch has taken place during the last few objective is 300,000 hectares by 2003, or about 10% years. This is partly a result of market pressure and of all farmland. 142 CHAPTER 6 – DENMARK

The dairy industry is the most important producer of 50,000 pigs in 1999. Imports of pig meat amount to organic food and has played a major role in less than 50 tons yearly, according to trade sources. promoting overall sales of organic food in Denmark. According to Ecoguide5, production of organic milk There is also organic production of mutton and lamb has grown rapidly from 33,300 tons to 134,700 tons (3,200 tons in 1998), poultry (insignificant but (estimates) annually during the five-year period growing) and eggs (over 5,000 tons in 1998). Imports 1992/93-1996/97. In the latter year, organic milk of these items are insignificant. accounted for an estimated 3% of total milk production (including milk used for producing Production of organic cereals roughly tripled during organic cheese and other dairy products); organic the five-year period 1992-1996, from about 7,000 milk also accounted for 16% of all table milk sales in tons to 21,000 tons. The most common species of Denmark. Organic cheese, on the other hand, has a grain grown and used in Denmark are wheat, rye, market share of only about 2%, according to trade barley and oats. It is not known exactly how much is sources. The two major suppliers of organic milk are used as animal feed by farmers and how much goes MD Foods and Kløver Mælk (recently merged), for human consumption. Drabæks Mølle A/S is an though a number of smaller dairy companies are also important organic flour mill. Producers of organic involved. In 1998, the total intake of organic milk animal feeds include Skjern Å Andel and DLG was estimated at about 157,000 tons. It was forecast Økologi. Imports of cereals are significant and roughly to double by the year 2000. Organic milk is growing. exported, e.g. to Germany. Imports of milk and milk products are insignificant. Domestic production of vegetables, roots and tubers amounted to an estimated 23,000 tons in 1996 Beef production has been overshadowed by milk (potatoes: 8,000 tons, carrots: 7,000 tons, others: production and consumption of beef has been slow to 8,000 tons) according to Ecoguide. Production has take off, though it has increased considerably since increased considerably since 1992. It is mainly sold 1993. Less than 0.5% of all cattle slaughtering is as fresh produce, though some quantities are used for organic. No exact figures exist for organic beef, but processing. In early 1999 there were plans to set up a according to some estimates, production increased processing plant for red cabbage (initially 50 tons) from about 100 tons in 1992 to just over 800 tons in and beetroot. Production of fruit and berries is small 1997. It is sold partly as fresh meat and partly as and probably amounted to less than 100 tons in 1997. processed meat (sausages and other charcuterie). The The main crop was blackcurrants, followed by pears. number of slaughtered cattle was about 10,000 in In some years, certain quantities of apples and 1998, forecast to rise to 15,000 - 20,000 in 1999. The cherries have been produced, as have various types of main suppliers are Hanegal Økologisk Kød A/S and jams and marmalades. Friland Food A/S. Imports of organic beef products are relatively insignificant, though some sausages Market size and other meat products are made from raw materials imported from the Netherlands. The Danish retail market for organic food and beverages was estimated at close to DKr 2,000 The organic production of pigs is comparatively little million in 1997 (exclusive of 25% VAT), developed. Exact figures are not available, but corresponding to about 2.5% of the total market. The production of pig meat is thought to have increased figures do not cover the institutional and catering from just over 100 tons in 1992 to just under 350 tons market for organic food, which is believed to be still in 1996. Sales have been poor owing to insufficient small. It is significant that retail sales of organic food supply, but both production and consumption are on and beverages have increased sharply since 1993 and the increase. Pork is sold both as fresh and as frozen that the high growth rates are likely to continue in the meat and is used in charcuterie. The biggest next few years. Preliminary trade estimates for 1998 distributors are Hanegal Økologisk Kød A/S and indicate total sales of organic food and beverages of Friland Food A/S. In 1998, 20,000-25,000 organic close to DKr 3,200 million (exclusive of VAT), or pigs were slaughtered, a figure expected to rise to 3.5% - 4% of total food sales.

5 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.) CHAPTER 6 – DENMARK 143

Since official production and foreign trade statistics statistics and information from trade sources) for the on organic food and beverages are either incomplete main product groups is given whenever possible in or non-existent, an attempt to provide estimates of the section that follows. market size and imports (on the basis of fragments of

Import and market requirements by major product group

Imports of most consumer-packed organic food and Re gard less of origin, most im ported fresh fruit is beverages are currently insignificant. This is mainly ob tained through traders in the Neth er lands. The because only products that are processed or packaged Is raeli trading com pany Agr exco has a sales of fice in in Denmark are allowed to use the government Ø Rot terdam, which sup plies the Benelux coun tries and logo (see below). As a consequence, imports of Scan di navia. Almost all fresh or ganic produce, organic foodstuff are largely in the form of including imports (repacked in Denmark), is unprocessed or semi-processed raw material, though mar keted under the Ø logo. there are some exceptions. The product groups discussed below are likely to be the most interesting In 1998, exports of vegetables (mainly carrots) for exporters in developing countries. amounted to 6,500 tons.

Fresh fruits and vegetables Dried fruits and nuts, seeds and kernels

Fresh fruits and vegetables constitute one of the most This is an important product group, and demand is important organic product groups. Though most met almost entirely by imports. The range of products demand, in particular for vegetables, is currently met include temperate-zone, subtropical and tropical by domestic producers, there appears to be good dried fruits, as well as various types of nuts, kernels opportunities for imports. However, it must be noted and seeds. The following main items offered by that Danish consumers are less confident about the importers are some of the products available: organic origin of imported products. q Fruits: raisins, figs, dates, mangoes, bananas, An esti mated 5,200 tons of vege ta bles, roots and peaches, apricots, plums, apples (e.g. rings and tubers were imported in 1998, the main items being flakes), candied peel, diced orange, pineapple. carrots, pota toes, onions, cucumbers, cabbage and toma toes (including cherry toma toes from Israel). q Nuts: hazel-nuts, peanuts, almonds, walnuts, Herbs and salads were also imported. The almonds, cashews, coconut chips, des si cated coconut. Neth er lands is the main sup plier of most of these prod ucts, fol lowed by France, Italy and Spain. Fresh q Seeds and kernels: sunflower, pine kernels, toma toes and cucum bers are in high demand during pumpkin, sesame, linseed, white and blue poppy seed. the summer, whereas cabbage, beet root, leeks, etc. are sold mainly during the winter. Other varieties are also seen in shops, and consumers appear to be interested in most dried items, if Only a small volume of fruit is cur rently imported. In available. Most retail packs are sold under the Ø logo. 1998, imports amounted to an esti mated 3,000 tons, including 900 tons for proc essing by Danish compa nies. The main imports are avo cados (from Processed fruits and vegetables Israel, South Africa), bananas (the Dominican Republic, Colombia, Costa Rica, Hon duras and One of the main items in this product group appears Uganda), apples (Israel and Germany), lemons to be tomato products (peeled tomatoes, tomato (Israel), grapefruit (Israel), clementines (Spain), paste/purée, tomato ketchup, pasta sauce), which are oranges (Spain), pears (Italy), kiwi fruit (France), currently supplied by Urtekram A/S, for example. papaya (Israel) and litchis (South Africa). There is However, there is no doubt a demand for several very little demand for tropical fruit, though there are other products, e.g. the most common canned fruits some sales of papaya (Israel). and vegetables, including pineapple. 144 CHAPTER 6 – DENMARK

Fruit juices also offer interesting oppor tu ni ties. and other cereals are also imported. Though no Cur rently, four com pa nies sell organic fruit juices in statistics are available, organic rice is an important Den mark. Nutana A/S, for example, offers two 100% product, obtained mainly from Italy but also from fruit juices (apple and orange) in one-litre T-packs developing countries. car rying the Ø logo. There is cer tainly a market for other juices as well, but for sales to increase There is a considerable retail market for different sig nifi cantly, prices will probably have to fall. Retail types of flour and bakery mixes used for home prices may be up to twice those of con ven tional fruit baking. The market for bread and other bakery juices in some cases, and consumers gener ally find products is large, and is principally supplied by the these too high. major supermarkets, though the institutional market is growing. During 1998, most of the FDB-owned Import requirements are for bulk-packed juice (e.g. in Kvickly bakeries (numbering around 75) went concentrated form), which is then packed or bottled organic and stopped selling conventional bread. in Denmark. There is likewise a demand for other forms of semi-processed fruit, e.g. block-frozen or Pasta (mainly of Italian origin) is imported in bulk for individually quick frozen (IQF) fruits and berries, for repacking in Denmark to obtain the Ø logo, but some the manufacture of marmalade and jam (e.g. quantities are imported in retail packs and sold under strawberry, raspberry, blueberry, blackcurrant, a label certified in Italy. Tholstrup Pastella A/S is a orange, apricot). There is also a market for various major Danish producer of fresh pasta from imported spreads made from vegetables and figs. durum wheat.

In 1998, an estimated 700 tons of processed fruit Coffee, tea and cocoa were imported, whereas imports of processed vegetables were insignificant. All major retail organizations offer a selection of organic coffee and tea, mostly packed under a Several retail packs of frozen vegetables are sold in manufacturer’s brand name and carrying the Ø logo. the country, e.g. peas, carrots and corn, processed Some packs are also marked with the Max Havelaar from fresh Danish produce or from imported fresh or logo for fair trade. Suppliers of organic coffee include frozen vegetables (processed or repacked and Mexico, Guatemala, Costa Rica, Nicaragua and Peru. relabelled in Denmark). In general, consumers have The organic teas and infusions found in the Danish been less interested in frozen organic vegetables, market include tea (Darjeeling, Earl Grey, Kashmir though demand is on the rise. 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 Dried culinary herbs constitute an important product market. Though most of the demand is met by group. Urtekram A/S, to cite an example, offers close domestic production, there is a significant import to 100 different herbs and similar items, as well as business, which supplies Danish food manufacturers about 50 herbal teas and various tea mixes. Several of and packers. these products are imported, mainly in bulk for repacking in Denmark. Important items include According to Ecoguide, imports of cereals for human vanilla, cinnamon, cardamon, clove, ginger, caraway, consumption rose from about 400 tons in 1992 to fennel, garlic and oregano. about 7,300 tons in 1996 (wheat: 4,367 tons, oats: 1,746 tons, rye: 1,167 tons, barley: 15 tons). The Sweeteners major suppliers are Germany, the United Kingdom and France. Barley is used for brewing organic beer These products include the following: honey, (e.g. by A/S Thisted Bryghus). The other cereals are currently supplied by Mexico and New Zealand; beet mainly used in the preparation of breakfast cereals, sugar; cane sugar (white, golden and brown), mainly like oatmeal, muesli (which has a strongly growing obtained from Mauritius through a Netherlands market) and corn flakes, and for milling flour for company; agave syrup; maple syrup; beet syrup and bakeries and home baking. Millet, quinoa, amaranth glucose. CHAPTER 6 – DENMARK 145

While Denmark manufactures a large volume of produced locally or because domestic production is conventional sugar (from beetroot), it does not as yet unable to meet demand. Virtually all food and make organic sugar. However, Danisco Sugar is beverage items consumed by the average household planning to start production sometime in 1999. – whether fresh, dried, canned, frozen or otherwise prepared and even convenience foods – can easily be Dried legumes/pulses bought in organic form on the Danish retail market. This includes all sorts of beverages, including milk, Imported products include dried beans such as aduki juice, coffee, tea, soft drinks, beer and wine. In 1998, (or azuki), kidney beans, brown beans, white beans, an estimated 150,000 litres of wine were imported. chickpeas, and red and green lentils. Most of the above-mentioned products are usually Oil-seeds and oils, starch, soy processed or packed in Denmark and can consequently be sold under the Ø logo. However, in A large variety of seeds is imported, including many cases the raw material is imported, e.g. sesame, sunflower and flax to mention a few. Soya coffee beans, tea leaves, fruit juice concentrate and beans and soy products are important as they form the malt. basis for a large number of different food items from soy drinks to tofu and vegetal burgers. Various forms Organic baby food, an important product, is imported of starch, e.g. from wheat and maize, are also in retail packs, mainly from Germany. Wine, mostly imported. from France, Italy and Germany, is usually imported bottled. Other suppliers of organic wine include Several cooking oils are on the market, e.g. Argentina and California. Urtekram imports an sunflower, sesame, soya bean, grape, rape, thistle and organic whisky from Scotland. olive. Cooking oils are among the few products imported in retail packs, since no bottling of this Animal feed product group takes place in Denmark. Sales of organic oils, in particular olive oil, are increasing Imports of animal feed have been allowed only since strongly. 1990. On the basis of information from trade sources, Ecoguide estimates that imports of cereals used as Other food and beverage products animal feed have increased from 1,900 tons in 1992 to 6,400 tons in 1996. Imports of other forms of A large number of other organic products are animal feed, e.g. soya-bean products, rose from about imported into Denmark, either because they are not 100 tons in 1992 to about 4,100 tons in 1996.

Market characteristics

Market segments health and speciality shops. Most supermarkets exhibit organic products next to conventional items in From the point of view of a devel oping country order to offer the consumer a real choice, though exporter, the food proc essing industry is the most some stores also have an organic corner or shelf. impor tant market seg ment, as most imports con sist of fresh pro duce or raw mate rial which is repacked or Organic food and beverages are usually easy to find, further proc essed by Danish compa nies. Though not least because most of them are marked with the reli able sta tis tics are unavail able, the retail trade has well-known Ø logo. Furthermore, the shelves are by far the largest share in total sales to the ultimate clearly marked økologisk to facilitate the consumer’s consumer. How ever, the institu tional and catering choice. trade is growing in impor tance. Consumer habits and product It is interesting to note that in Denmark over 70% of preferences all organic products are sold by supermarkets and discount stores; only a small percentage is handled by According to a note on consumption (compiled by 146 CHAPTER 6 – DENMARK

Infood in August 1997), 1% - 2% of consumers buy and eggs accounted for 47.3% of total sales of only organic foodstuff and about 8% claim they buy organic food and beverages, followed by fruits and mainly organic products if available. Another 22% vegetables (mainly carrots, onion and potatoes) with are frequent buyers, and about 38% buy occasionally. 16.4%, groceries (11%), bread and bakery products Around 32% apparently never buy organic foodstuff. (8.4%), meat and meat products (6.7%), frozen food (1.5%), wine (1.4%) and others (7.3%). At the time of The share by area of consumers who buy organic the survey dairy and meat products had the highest products (with various degrees of frequency) is highest growth rates. in the Copenhagen region (about 90% of all consumers). The proportion in the rural districts is Finally, it may be interesting to look at the market about two-thirds. A more recent Infood note (dated share of organic food in relation to overall sales September 1998) states that about 80% of all (organic and conventional) of a particular item. Again consumers claim they buy organic products; the in the case of FDB organically grown carrots corresponding figures for the big cities are above accounted for 30.8% of total carrot sales in 1997, average. Non-buyers cited indifference (58%) and followed by eggs (20.9%), butter (20.9%), milk high prices (23%) as reasons for not buying organic (15.5%), onions (10.1%), potatoes (9.4%) and bread food. Over 10% of Danish households spent more than (7.8%). Some products had much smaller shares, e.g. 10% of the food budget on organic products in the year fruit (2.4%), vegetables other than carrots, onions and covered by the note. potatoes (2.1%), cheese (5.1%) and frozen food (1.5%). The typical con sumer of organic food stuff is gen er ally inter ested in new food prod ucts and is like wise highly As mentioned elsewhere, consumer confidence in the quality and health con scious. It should also be organic origin of the product is of paramount empha sized that consumers expect organic food importance. In the Danish market this is strongly products to be at least of the same quality as illustrated by the role played by the State-controlled con ven tional products, pref erably better. Recent Ø logo,which enjoys a high recognition value and is research indicates that health reasons, followed by considered by most buyers of organic foodstuff as an envi ron mental con sid era tions, are the main motives important product guarantee. for pur chasing organic food. For meat and meat prod ucts animal ethics also play an impor tant role. Sales promotion and advertising

Price considerations are significant for most As mentioned at the beginning of this chapter, consumers, in particular for the higher priced items. As organic food is promoted jointly by the agricultural a rule of thumb, a price premium of 20% - 30% over sector, the food industry, the retail sector and even the conventional products seems to be the maximum Government. Though FDB, the biggest organic acceptable in most cases. In terms of specific food retailer, has sold organic food since 1981 on a small items, it appears that milk, followed by eggs, rye scale, sales really took off only in 1993. The retail bread, carrots and potatoes, are the products most group decided to cut the prices of organic products frequently bought by consumers. For the time being, drastically at the same time as it broadened its most sales consist of products with a lower rather than product range substantially. A nationwide marketing a higher degree of processing, though the latter market campaign, including advertising in national segment is growing. newspapers and television as well as the group’s own weekly promotion leaflets, was successfully The relative importance of various product groups can undertaken. Consumer information campaigns and also be illustrated by the following breakdown of sales advertising by other major retail organizations also of the biggest retailer (FDB) in 1997: dairy products helped to develop the market to its present level.

Market access

Customs duties food and beverages. Most products from the 71 African, Caribbean and Pacific (ACP) countries Denmark applies the EU common external tariff. The signatories to the Lomé Convention, as well as from same tariffs apply to both conventional and organic overseas countries and territories associated with EU, CHAPTER 6 – DENMARK 147 are granted duty-free access or preferences. In by the newly adopted EU rules on animal pro duc tion. addition, the EU Generalized System of Preferences covers some products, and duty-free access is granted Only farms approved by the Danish authorities may to LDCs for most products. Non-organic products market and sell their products as organic. They are enjoy the same preferences. controlled by the Danish Plant Directorate. Processors, importers and packers must likewise be inspected and Food laws and regulations approved to handle organic products, which is the responsibilty of the Danish Veterinary and Food In 1987, the first Danish legislation on organic Administration. There are strict rules for processing farming and organic food was introduced with the Act organic food, in particular regarding the use of on Organic Farming. Since 1991, however, the additives, auxilliary substances and non-organic production and sale of organic products have been ingredients. regulated by EU through Council Regulation (EEC) No. 2092/91 of 24 June 1991 and its subsequent The Ø logo is a State guar antee that the final prepa ra- amendments. EU regulations are dealt with in detail tion and packaging of the organic food in ques tion in chapter 2. has been carried out by a company in Den mark approved by the Danish authori ties. If imported raw Pro duc tion and sale of organic food of animal origin, material is used, the nec es sary per mits and cer tifi- e.g. meat, milk, eggs and honey, are currently gov - cates, etc., are checked. Imported ready- packaged erned by Danish leg is la tion: Ministry of Agri cul ture organic food and bever ages, whether from EU or Regu la tion No.753 of 2 September 1992 on Con di- from third coun tries, are not usu ally allowed to carry tions for Mar keting of Organic Foods, as amended. the Ø logo. This explains why most organic food stuff The regu la tion has provi sions on the prepa ra tion, is imported in bulk form for proc essing, prepa ra tion importing and label ling of organic foods. Whether or repacking in Den mark. How ever, an importer the organic food of animal origin is imported from claims to have the per mis sion to use the Ø logo on a EU or from other coun tries, it must meet the require- pack of spray- dried coffee, although it has been ments of this law. This regu la tion will be sup planted packed in and imported from Mexico.

Distribution channels

Agents, importers, repackers, offers more than 2,500 organic items, most of which processors are food and bev erage prod ucts. But the company is also a specialist in natural shampoos and other The import of fresh fruits and vegetables, whether cosmetic products with organic ingredients. The organic or not, is in the hands of a few companies. main product groups include: dried fruits and nuts, Biodania AmbA specializes in organic produce and herbs and spices, grains and breakfast cereals, operates as a wholesaler for Danish products, but is cookies and crackers, cooking oils (e.g. olive oil) and also a large importer. Other large importers are H. vinegars, tea, pasta, rice, beans, lentils, sugar and Lembcke A/S (50% owned by Fyffes plc of Ireland) other sweeteners and wine. The company works and Th. Olesen A/S, which both import organic and direct with a number of producers in devel oping non-organic produce. coun tries and packs under the Ø logo. It is involved with the Organic Group of Scandi navia as regards The import of other organic food and beverages is dis tri bu tion, and is a founding member of the Good likewise dominated by a few companies, including Food Foun da tion. Urtekram is associ ated with the following: McGrail’s Naturma gasin, 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 q Unikost A/S (owned by JAN Import A/S) is an food and non- food prod ucts in Den mark and has been importer and packer of both conventional and organic in the busi ness for more than 25 years. The com pany food. It packs under the Ø logo and its own label 148 CHAPTER 6 – DENMARK

Green Valley. The company currently offers about 30 carrots, green beans, peas, spinach, mixed organic food items, including dried fruits and nuts, vegetables) and a wide range of products like muesli, pasta, rice, seeds, sugar, grains and flour. 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 q Svansø Food A/S. Produces various organic industry in Denmark and other Nordic countries. It marmalades and jams. It uses domestic as well as operates either direct or through wholesalers. Among imported raw material. It has just acquired Scan Agra its important product groups are sugar, malt, starch, A/S in Odense, which is a trader and importer of eggs and egg powder, seeds, dried fruits and nuts, frozen fruit and vegetables. Svansø also imports pasta cocoa and chocolate, fats and oils, and spices. The and olive oil. company also trades in other organic food products, e.g. processed fruit (jam and jelly). q Schulstad Brød A/S. Produces a range of organic bread and bakery products, including the Among the other importers are the following: traditional Danish rye bread. q U-landsimporten. Importer/whole saler of food- q De Danske Brødfabrikker A/S. Owned by FDB stuff, including organic prod ucts, e.g. coffee, tea and (see below). Produces a range of bread and bakery cocoa; a non- profit organi za tion working on the fair products. trade prin ciple. q Mølle Skovly. Produces organic chocolate and q Sunprojuice Denmark ApS. An importer and also sells imported natural sweets. producer of organic semi-processed fruits and berries, purée, concentrates, IQF, and others; supplies q Natur Frisk Brewery. Bottles a range of organic the food industry. fruit juices and fruit juice drinks.

The names and addresses of these and the other Retail organizations companies importers are given in the annex to this chapter. q FDB (Coop Den mark) is the largest retail group in Den mark with about 33% of the overall food Food and beverage manufacturers market. It comprises the supermarket chains Brugsen, Lokal Brugsen, Dagli’Brugsen, Super- With the exception of the dairy and meat industries, Brugsen and Kvickly (with a total of about 925 retail the major Danish food manufacturers are generally out lets) and around 12 OBS! hyper mar kets. All the little involved in organic food production. The largest chains carry out high- profile mar keting of organic Danish food manufacturer, Danisco Foods A/S, for prod ucts. example, produces very little organic food (e.g. frozen peas). However, there are a number of smaller FDB also owns IRMA (see below) and the discount companies, whose organic products are well known chain Fakta (which handles a small volume of by consumers, including the following: organic products and has more than 200 outlets). Most organic products are marketed under the Ø q Drabæks Mølle A/S. Recently bought by Havne logo, though some items are sold under other Møllerne A/S, owned by the Swedish concern (non-Danish) organic logos. The FDB group markets Cerealia AB. Processes cereals and sells a range of products carrying various manufacturer’s or packer’s flour and breakfast cereals under its brand brands, but it is also building up a range of products Kornkammeret. 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 Generally speaking, FDB’s imports of foodstuffs are using any additives, preservatives, artificial colouring handled by NAF-Intergroup, which coordinates or flavouring. Its organic assortment currently imports for members (cooperatives) in Denmark, includes juices, patés, baked beans, chilli beans, Sweden, Norway, Finland, Italy and the United frozen ready-meals, frozen vegetables (e.g. sliced Kingdom. CHAPTER 6 – DENMARK 149

FDB owns De Danske Brødfabrikker (manufacturer Dansk Supermarket has no food manufacturing of bread and bakery products) and Dansk operations of its own, and obtains all its requirements Kaffekompagni (packer of coffee and tea) as well as from Danish and foreign manufacturers. Though it various non-food retailers and other companies. De imports some food products direct, it buys organic Danske Brødfabrikker obtains its organic raw products only from Danish companies which materials from Danish millers, e.g. Drabæks Mølle; manufacture or pack under the Ø logo. Likewise, the Danske Kaffekompagni imports raw materials group does not use its own label on organic products, through NAF. but sells these under manufacturer’s brands. q IRMA, owned by FDB, is an upmarket q DAGROFA A/S is a major wholesaler super market chain with about 55 retail outlets in the supplying a number of independent supermarkets and Copenhagen area. Its organic assort ment consists of other retailers, including the supermarket chain about 400 items. It is the Danish retail organiza tion Favør. It handles a range of organic food products. with the highest percentage of organic food and bever ages. For example, it has decided to sell only q Matas A/S, a health and body care shop rather organic milk and is phasing out conven tional milk. It than a food store, retails a range of organic dried fruits sells a wide range of prod ucts carrying its own label and nuts, beans, seeds, ker nels, rice and pastas. It has (e.g. IRMA coffee and IRMA tea) and also intro duced a ‘subscri ption service’under which manu fac tur er’s or packer’s brands. In general it fresh fruits and vegeta bles are deliv ered to obtains its imports through NAF-Inter group. In house holds on a weekly basis. It has roughly 290 January 1999, organic food and bever ages accounted stores. for 12.5% of total sales, the most impor tant prod ucts being rye bread (making up 70% of all rye bread q ISO is a supermarket chain in Copenhagen with sold), fresh pasta (67% of all pasta sold), milk (62%), a fairly broad range of organic food products. flour (44%), vege ta bles (24%) and fresh meat (13%). Catering and institutional trade q Dansk Supermarket A/S is the second largest retail group in Denmark with about 22% of the total Though organic food and beverages are still of food market. It comprises the following supermarket relatively low importance in this sector, the catering chains: føtex (a supermarket chain with over 50 and institutional trade is expanding and considerable outlets throughout the country); Bilka (over 10 growth is expected in the future. A government hypermarkets selling food and everyday goods); programme is actively promoting the use of organic NETTO (a chain of discount shops with about 240 products by municipal and other public institutions. outlets in Denmark in addition to stores in the United Kingdom, Germany and Poland, which is promoting The Government’s Action Plan II, prepared by the organic food aggressively). Of those, føtex is Organic Food Council, likewise pays special currently the most important as far as organic food attention to developing sales of organic products to and beverages are concerned. It offers a broad range the catering and institutional sector. One of the of organic items, including fresh produce, dairy problems cited was the lack of special distribution products, meat products, dry goods and beverages. channels for this sector.

Market prospects

With a population of just over 5 million people, among world markets with the highest per capita Denmark is a fairly small market for most food and consumption of organic foodstuff. Furthermore, beverages. However, as shown earlier in this chapter, consumption has been growing rapidly in recent total sales of organic food and beverages in 1997 may years, including 1997 when retail sales increased by be estimated at about DKr 2,000 million, about 25% according to trade sources. Preliminary corresponding to about 2.5% of the total retail market figures for 1998 seem to indicate total sales of close for foodstuff. This places Denmark in the top league to DKr 3,200 million (exclusive of 25% VAT). 150 CHAPTER 6 – DENMARK

There are very strong indications that the Danish listed in the section on market and import market for organic foodstuff will continue to expand requirements (see above), in particular those that are for a considerable number of years. Firstly, consumer not produced in Denmark. There also seems to be a interest in healthy food and environmentally friendly latent demand for a number of products that are products continues to grow and more and more currently unavailable to the consumer. Continuous people are purchasing organic products. Secondly, sourcing of new products by importers and product the major retailers are promoting organic foodstuff development by food processors, as well as consumer quite aggressively, inter alia, through heavy confidence in the authenticity of the organic origin of advertising and competitive pricing. FDB, for the product are necessary conditions for the market example, has set ambitious sales targets for specific potential to be fully realized. organic products (as a percentage of total sales of a given item) to be reached by the year 2001. For some In conclusion, interesting prospects exist for of these products the lack of supply seems to be the exporters in developing countries who can supply major problem. Thirdly, Danish farmers as well as quality products at competitive prices. Importers and food manufacturers are increasingly becoming aware food processors are interested in obtaining more of the opportunities that exist in satisfying consumer supplies direct from source (rather than through expectations. Finally, government policy continously intermediaries in other EU countries) depending on aims at promoting the production and consumption the product in question and provided there is of organic foodstuff. Trade sources and industry confidence in the certification procedure applied. people believe that sales may reach 10% of total food Imports will probably continue to consist mainly of sales by the year 2005. unprocessed or semi-processed products for repacking or processing in Denmark. Market opportunities exist for most product groups Annex

Denmark: selected addresses*

IMPORTERS, PACKERS, ETC. Fax: +45-75 82 07 66 Tel: +45-36 34 30 00 (Coffee) Fax: +45-36 34 30 01 Bio Trading A/S http://www.toersleff.dk Åbenråvej 9 NAF International AmbA (Importer and packer of vanilla) Kiskelund Fanøgade 15 6340 Krusså 2100 Copenhagen Ø U-landsimporten Tel: +45-70 23 15 15 Tel: +45-39 16 90 00 Rolstrupbakken 6 Fax: +45-70 23 15 16 Fax: +45-39 16 90 80 7900 Nykøbing Mors E-mail: [email protected] Tel: +45-97 72 57 88 http://www.biotrading.dk Natur-Drogeriet A/S Fax: +45-97 72 53 54 Nydamsvej 13-15 E-mail: u-landsimporten@vip. Biodania AmbA 8362 Hørning cybercity.dk Grønttorvet 6, 1.sal Tel: +45-86 92 33 33 (Trade) 2500 Valby Fax: +45-86 92 33 43 Tel: +45-36 30 24 78/36 30 24 29 http://www.natur-drogeriet.dk and Fax: +45-36 30 24 79 (Importer and wholesaler of cereals, including rice, and flours) Skindergade 24 Cofradex ApS 1159 Copenhagen K Skelstedet 16 Th. Olesen A/S Tel: +45-33 91 90 90 2950 Vedbæk Frugtmarkedet 17 Fax: +45-33 91 90 97 Tel: +45-42 89 17 67 2500 Valby E-mail: [email protected] Fax: +45-42 89 03 13 Tel: +45-36 30 61 11 http://www.u-landsimporten.dk Fax: +45-36 30 79 53 (Importer of rice, etc.) (Information) Solhjulet F-I Mejerifrugt Unikost A/S Storhedevejen 32, Taul Over Hadstenvej 58 Hestehaven 3 8850 Bjerringbro 5260 Odense S 8370 Hadsten Tel: +45-86 68 64 44 Tel: +45-86 98 01 44 Tel: +45-66 13 13 70 Fax: +45-86 68 62 75 Fax: +45-66 13 44 10 Fax: +45-86 98 00 48 http://www.solhjulet.dk E-mail: [email protected] (Fruits and berries for the dairy (Supplies the catering sector) industry) http://www.jan-import.dk Sunprojuice Denmark A/S Urtekram A/S Jakobsen & Hvam A/S Huginsvej 2-4 Klostermarken 20 Hovedvejen 22 4100 Ringsted 9550 Mariager 7490 Aulum Tel: +45-57 67 11 77 Tel: +45-98 54 22 88 Tel: +45-97 47 39 27 Fax: +45-57 67 11 45 Fax: +45-98 54 23 33 Fax: +45-94 47 39 27 E-mail: [email protected] E-mail: [email protected] (Honey) http://www.ecoweb.dk/sunprojuice http://www.urtekram.dk/ H. Lembcke A/S Svanholm Import Grønttorvet 244-260 Svanholm Allé 2 PO Box 427 4050 Skibby FOOD PROCESSORS AND 2500 Valby Tel: +45-47 56 66 56 MANUFACTURERS Tel: +45-36 15 62 22 Fax: +45-47 56 66 77 Fax: +45-36 15 62 23 (Importer of wine, beer, other BKI Kaffe alchoholic drinks and foodstuff) Axel Kiersvej 4 Mortensens Kaffe Vejle A/S 8270 Højbjerg Ulvehavevej 58 Tørsleff & Co. A/S Tel: +45-86 29 22 99 7100 Vejle Helseholmen 7-9 Fax: +45-86 29 10 89 Tel: +45-75 82 01 99 2650 Hvidovre (Coffee importer and wholesaler)

______* List not exhaustive. 152 CHAPTER 6 – DENMARK

A/S Crispy Food International Tel: +45-89 38 10 00 1254 Copenhagen K Blommeskoven 2 Fax: +45-86 28 16 91 Tel: +45-33 12 22 77 4281 Gørlev http://www.mdfoods.dk Fax: +45-33 12 60 77 Tel: +45-58 86 05 05 Fax: +45-58 86 00 22 Merrild Kaffe A/S (Producer of muesli, owned by MD) Lærkevej 6000 Kolding RETAIL ORGANIZATIONS Danisco Foods A/S Tel: +45-79 31 31 31 Fredensgade 7 Fax: +45-79 31 31 90 Dagrofa A/S 5800 Nyborg (Coffee importer and wholesaler) Tel: +45-65 31 11 30 Gammelager 11-13 Fax: +45-65 31 58 30 2605 Brøndby Mølle Skovly Tel: +45-43 22 82 82 Lyngvej 21, Skringstrup Fax: +45-43 22 84 04 Dansk Kaffekompagni A/S 8832 Skals Roskildevej 25a Tel: +45-86 69 49 66 2620 Albertslund Fax: +45-86 69 50 86 Dansk Supermarked A/S Tel: +45-43 86 33 33 E-mail:[email protected] Fax: +45-43 86 40 09 Bjødstrup 18 http://www.ecoweb.dk/skovly 8270 Højbjerg Tel: +45-89 30 30 30 De Danske Brødfabrikker A/S Fax: +45-86 27 65 63 Korsdalsvej 101 Natur Frisk Brewery 2610 Rødovre Lillehøjvej 18 8600 Silkeborg Tel: +45-43 86 41 70 FDB (Coop Denmark) Fax: +45-43 86 41 69 Tel: +45-86 80 37 67 Fax: +45-86 80 24 55 Roskildevej 65 2620 Albertslund Drabæks Mølle NUTANA A/S Tel: +45-43 86 43 86; Østparken 1-5 +45-43 86 48 11 6640 Lunderskov Ringstedvej 531 4632 Bjæveskov Fax: +45-43 86 42 09; Tel: +45-75 58 52 66 +45-43 86 33 86 Fax: +45-75 58 58 30 Tel: +45-56 86 96 00 Fax: +45-56 86 96 16 E-mail: [email protected] E-mail: [email protected] http.//www.fdb.dk http://www.kornkammeret.dk Peter Larsens Kaffe A/S Friland Food A/S Ærøvej 15-17 Irma A/S Østersgades Butikstorv 7, Jebjerg 8800 Viborg Korsdalsvej 101 7870 Roslev Tel: +45-86 62 67 33 2610 Rødovre Tel: +45-97 57 47 99 Fax: +45-86 62 62 67 Tel: +45-43 86 38 22 Fax: +45-97 57 41 99 (Coffee importer and processor) Fax: +45-43 86 38 09 E-mail: [email protected] http://www.ecoweb.dk/friland Rynkeby Foods A/S (Slaughterhouse and distributor of Vestergade 30 ISO Supermarked meat and meat products) 5750 Ringe Vermlandsgade 51 Tel: +45-62 62 11 35 2300 Copenhagen S Hanegal Økologisk Kød A/S Fax: +45-62 62 48 49 Tel: +45-31 54 84 11; Resenbrovej 29, Voel (Juice producer) +45-32 69 76 00 8600 Silkeborg Fax: +45-31 54 31 42; Tel: +45-86 85 36 72 Schulstad Brød A/S +45-32 69 76 01 Fax: +45-86 85 36 73 Hammerholmen 21-31 E-mail: [email protected] E-mail: [email protected] 2650 Hvidovre http://www.iso.dk http://www.hanegal.dk Tel: +45-36 39 71 00 (Slaughterhouse and distributor of Fax: +45-36 77 01 65 meat and meat products) Matas A/S Rørmosevej Kløver Mælk AmbA Svansø Food A/S 3450 Allerød Strandvejen 1 Vejlevej 10 Tel: +45-48 16 55 55 5800 Nyborg 7000 Fredericia Fax: +45-48 16 55 66 Tel: +45-75 92 49 88 Tel: +45-65 31 41 00 http://matas.dk/VOKOLOGI.HTM Fax: +45-75 91 05 95 Fax: +45-65 30 10 41 (“Harmonie”: organic milk) A/S Thisted Bryghus Kohberg Rugbrød A/S Bryggerivej 10 Industrivej 7-9 7700 Thisted CATERING AND 6392 Bolderslev Tel: +45-97 92 23 22 INSTITUTIONAL SALES Tel: +45-74 64 62 30 Fax: +45-97 91 18 98 Fax: +45-74 64 63 81 http://www.thisted.bryghus.dk MN Catering (Beer; imports malt and hops) Fuglebakkevej 94 MD Foods AmbA 2000 Fredeiksberg Skanderborgvej 277 Tholstrup Pastella A/S Tel: +45-38 34 38 12 8260 Viby J Lille Strandstræde 20b Fax: +45-38 34 38 22 CHAPTER 6 – DENMARK 153

SUPPLIERS Fax: +45-8684 1746 Tel: +45-86 12 86 38 E-mail: [email protected] Fax: +45-86 12 86 37 Animal feed http://www.solsikken.dk E-mail: [email protected] http://www.ecoweb.dk/infood (Consultancy) A/S Carl Rasmussen Frigaardsvej, Gamby GOVERNMENT OFFICES, Landsforeningen Økologisk 5471 Søndersø OTHER ORGANIZATIONS Jordbrug (LØJ) Tel: +45-64 83 11 00 (The Danish Association for Organic Fax: +45-64 83 11 87 AND ASSOCIATIONS, ETC. Farming) Økologiens Hus Danish Import Promotion Office Frederiksgade 72 Carl Høfner I/S for Products from Developing Hesteskoen 1 8000 Århus C Countries (DIPO) Tel: +45-87 32 27 00 2880 Bagsværd Danish Chamber of Commerce Tel: +45-44 44 27 00 Fax: +45-87 32 27 10 Børsen E-mail: [email protected] Fax: +45-44 44 64 00 1217 Copenhagen K http://www.ecoweb.dk/oekoland Tel: +45-33 95 05 00 Fax: +45-33 12 05 25 DLG Økologi Max Havelaar Fonden Nørrevang 23, Skave c/o Folkekirkens Nødhjælp 7500 Holstebro Danish Veterinary and Food Nørregade 13 Tel: +45-97 46 84 88 Administration 1165 Copenhagen K Fax: +45-97 46 85 65 Mørkhøj Bygade 19 Tel: +45-33 11 13 45 E-mail: [email protected] 2860 Søborg Fax: +45-33 11 13 47 Tel: +45-33 95 60 00 E-mail: maxhavelaar@dk Fax: +45-33 95 60 01 http://www.maxhavelaar.dk Ecological seeds and plants E-mail: [email protected] http://www.vfd.dk Øgruppen - Dansk KFK (Administers organic production Økologileverandørforening Grøndalsvej 1 rules on labelling and inspection) Udgården 30, Lading 8260 Viby J 8471 Sabro Tel: +45-89 47 70 00 Demeterforbundet Tel: +45 86 12 77 66 Fax: +45-86 14 10 85 (The Demeter Association) Fax: +45 86 12 77 41 E-mail: [email protected] Birkum Bygade 20 E-mail:: [email protected] http://www.kfk.dk 5220 Odense SØ http://www.ecoweb.dk/gruppen/ (Animal feed, seeds, etc.) Tel: +45-65 97 30 50 (Association of suppliers and Fax: +45-65 97 30 50 processors of organic food and beverages) Skjern Å Andel a.m.b.a. Det Økologiske Fødevareråd Økologisk Landscenter (ØLC) Storegade 36 (The Organic Food Council) 6900 Skjern (The Danish Organic Service Strukturdirektoratet, Centre) Tel: +45-97 36 44 44 Udviklingskontoret Fax: +45-97 36 63 40 Økologiens Hus Toldbodgade 29 http//:www.ecoweb.dk/skjern Frederiksgade 72 1253 København K 8000 Århus C Tel: +45-33 63 73 00 Tel: +45-87 32 27 00 Solsikken Fax: +45-33 63 73 33 Fax: +45-87 32 27 10 Skellerupvej 89 E-mail: [email protected] Linå Infood http://www.ecoweb.dk/ecoinfo 8600 Silkeborg Langballevænget 102 (Information centre for the Tel: +45-8684 1546 8320 Mårslet marketing of organic food) Chapter 7

FRANCE

Introduction

Offi cial sta tis tical infor ma tion on the French market forecasting, which should gradu ally lead to a policy for organic prod ucts is lim ited and com pares poorly for guiding, devel oping and pro moting organic with that avail able in some EU coun tries. Although agriculture in France. the market started to develop during the 1970s, the need to estab lish a per ma nent moni toring system has Initially, the organiza tions agreed to under take the only recently been made a pri ority. The rapid devel- prelimi nary studies nec es sary to estab lish such a op ment of produc tion and con sump tion which took frame work and to organize their work through a place in the mid 1990s moti vated three key steering com mittee, which would draw together all organizations – the Asso cia tion per ma nente des stakeholders at both the national (gov ern ment cham bres d’agri cul ture (APCA), Asso cia tion d’agri- authori ties, APCA, BIO CONVERGENCE, the culture biologique regrou pant des transformateurs- Fédéra tion nationale de l’agricul ture biologique des industriels et distrib uteurs français de produits régions de France or FNAB, and the Fédéra tion biologiques (BIO CONVERGENCE) and Direc tion nationale des centres d’infor ma tion et de géné rale de l’ali men ta tion au Min istère de l’agri cul- vul gari sa tion de l’agri cul ture or FBCIVAM)7 and the ture, de la pêche et de l’ali men ta tion (DGAL)6 – to regional level (regional organic agricul ture coop erate in set ting up a frame work for analysis and struc tures).

Supply and demand

Domestic production con ver sion to organic agricul ture in neighbouring Euro pean mar kets. Over the last 10 years France has Agriculture lost its lead er ship role: in 1997 only 0.3% to 0.4% of agricul tural land was being farmed organically or Although France is a major pro ducer and a was ‘in con ver sion’, com pared to over 7% in Aus tria, sig nifi cant exporter of a wide range of food and Sweden and Swit zer land, and 2% in Ger many. bev erage products, organic farming has failed to keep pace with devel op ments in con sump tion on the Con ver sion to organic agricul ture has increased home market and with the accel er ated rate of steadily since 1993 and a gov ern ment 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 sup port and pro mote more rapid Processed products develop ment over the next five years. By 1996 the area farmed organically had reached 137,000 Organic processing in France has to date concentrated hec tares, including 20,000 hec tares ‘in con ver sion’. largely on the primary processing of domestic raw materials, but the last few years have seen increasing The number of agri cul tural producers qualified to growth in imports of raw materials for processing. carry the national AB logo for organic food (see the Cereals dominate the processing sector, and bread and sec tion on cer ti fi ca tion fur ther below) increased from bakery products have a large share in the total output. 3,600 in 1985 to 3,850 in 1996 and, at a much faster Following in order of importance are dairy products, rate, to 4,500 at the end of 1997. The 1997 figure fruits and vegetables, condiments, poultry, aromatic cor re sponded to 0.5% of all French farmers, 2,300 of and medicinal plants, soya-based products, meat, which were involved in crop pro duc tion and 2,200 in prepared dishes and coffee. mixed crop ping and animal raising. The fig ures below show the approxi mate break down The most dynamic regions for organic pro duc tion in by product group in 1996, as revealed by a study car - France are Midi- Pyrénées, Pays de la Loire, ried out by INRA-UREQUA (Unité de recherche Languedoc-Roussillon, Rhône-Alpes and Bre tagne (Brit tany), where farmers have invested heavily in spécialisée sur l’é conomie des qualifi ca tions agro- organic farming. alimentaires or the special ized research unit on the eco nomic aspects of agro- food speci fi ca tions) in 1997. The number of organic livestock farms increased strongly between 1995 and 1996, as shown in table France: output of the organic processing 7.1 below. sector (including exports), 1996

Product group FF million Cereals 1 301 Dairy products 1 051 Table 7.1 France: organic livestock and livestock products, Fruits and vegetables 750 1995 and 1996 Condiments 187 Poultry 160 % increase Sector 1995 1996 1996/1995 Aromatic and medicinal plants 139 Meat 82 Dairy products Farms (units) 361 451 25 Prepared dishes 78 Dairy cows (head) 9 500 13 655 45 Coffee 45 Milk (’000 litres) 41 000 58 644 43 Source: INTA-UREQUA (Unité de recherche Beef spécialisée sur l’économie des qualifications Farms (units) 255 409 60 agro-alimentaires), Le Mans, October 1997. Milk cows (head) 5 637 10 178 81 Mutton Farms (units) 35 73 109 Although cereals continue to lead the sector, Sheep (head) 3 831 8 402 119 their share has fallen in recent years, Pork a/ particularly relative to that of dairy Farms (units) 77 products, which has increased strongly. The Meat pigs (head) 6 047 Breeding sows (head) 275 eggs and poultry sector has also grown Eggs steadily. Farms (units) 173 209 21 Laying hens (head) 103 162 135 762 32 The processing sector is dominated by a large Eggs (’000) 23 000 30 000 30 number of small, medium-sized and, often, Honey b/ artisan companies, which account for about Farms (units) 60 40% of the total turnover of the organic Hives (units) 13 058 business. However, increased investment in Source: Ministère de l’agriculture, de la pêche et de l’alimentation, Observatoire larger-scale production and the involvement economique national de l’agriculture biologique. of some major food groups (e.g. Besnier, a/b/ In the absence of national regulations in 1995, no production was recorded as organic or in process of conversion. Bourgoin, Danone/Bio Vivre) have meant 156 CHAPTER 7 – FRANCE that the sector is now evolving into a more Imports industrialized and efficient manufacturing sector. Recent estimates have put the average annual growth Domestic production of organic foods has not kept rate at close to 20%. Primary processors are on the pace with consumer demand. Therefore, there has whole more important than secondary processing been a sharp rise in imports, not only of produce companies. which cannot be grown in France, but also of organic products where local supplies are not sufficient to Retail sales meet demand. Import-export traffic between member countries of EU is not recorded in official trade Although France, with its population of over 58 statistics, but the increase in imports from outside EU million people, is one of the largest markets for can be seen from the fast-growing number of requests organic foods in the European Union, per capita to the French authorities for authorization to import consumption and the penetration of the sector into organic produce. In 1994 extra-EU imports mainstream food consumption is low. Organic amounted to 1,300 tons, but by 1997 this figure had foodstuffs account for less than 0.5% of total risen to somewhere between 13,000 and 20,000 tons. expenditure on food products. The range of products imported from third countries According to information provided by the Ministry of has also steadily widened and reached almost 70 Agriculture and professional organizations of organic different items by 1997. These are mainly fresh fruits producers, processors and distributors, the retail and vegetables, dried fruits and nuts, spices, edible market for organic products can be estimated at about oils, tea, coffee, cocoa beans and cane sugar. The FF 4 billion in 1997. Consumption doubled between main products imported from non-EU third countries 1991 and 1997, as follows: between 1993 and 1997 are set out in table 7.2.

1991 FF 2 billion Intra-EU imports are sourced mainly in Germany, the 1994 FF 2.4 billion Netherlands, United Kingdom and Italy. Non-EU 1995 FF 3 billion imports in 1997 came mainly from: Algeria, 1996 FF 3.6 billion Belgium, Belize, Bolivia, Burkina Faso, Cameroon, 1997 FF 4 billion 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 prod ucts (25%) and fresh Bananas Fresh and dried Apples Cane sugar Apples fruits and vegeta bles (20%) Cocoa beans bananas Arabica coffee Courgettes Beet sugar 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 turn over. Meat and poultry Sesame seed Dates bananas Clementines account for about 5% and Dried chicory Fresh pineapple Cocoa beans Dates others for the bal ance. Essential oils Dried bananas Green beans Fresh and dried Dried chicory Maple syrup bananas Dried grapes Within the non- fresh organic Millet Fresh pineapple Grapefruit food seg ment, research car - Potatoes Fresh mango Green coffee Soya beans ried out by one of France’s Millet Lemons Tomatoes leading supermarket chains Orange Lentils (Car re four), in June 1997 Quinoa Mango Sesame seed indicated that the items in Oranges greatest demand were bis- Palm oil Pears cuits, crisp bread, gal ettes, Peeled nuts fruit juices and jams, cereals, Quinoa flour, pastas and rice. Source: Trade information. CHAPTER 7 – FRANCE 157

Madagascar, Mexico, Morocco, Paraguay, Poland, Between 1994 and 1997 the professional and Senegal, Slovakia, South Africa, Spain, Togo, regulatory framework for organic production Tunisia, Turkey, the United States and Zimbabwe. developed considerably and processing industries expanded. By the end of 1997 the range of products Supplies from Asia were insignificant. exported had changed significantly. Exports of raw materials and semi-processed organic products, such Annex II gives more detailed information on imports as cereals, had declined whilst exports of processed of organic food from non-EU countries in 1997. products increased owing to the efforts of dynamic processors, some of which have subsidiaries in other European countries. One-third of France’s processing Exports enterprises were exporters in 1997. It is difficult to assess the size of the export trade France’s main export markets for processed organic because EU foreign trade statistics do not products are in Western Europe, mainly Germany, differentiate between organic and conventional food Switzerland, the Netherlands, Belgium, the United produce. INRA-UREQUA estimated France’s Kingdom, Spain, Italy and Scandinavia. Exports to exports in 1994 at about FF 600 million. Research the United States and Japan are less significant. findings indicate that, by 1997, exports had dropped Major increases in exports of fresh fruits and by over 50%. The main reasons are the substantial vegetables and wine to Germany, the United increase in domestic French consumption of organic Kingdom, Austria and Scandinavia have been foods and the growing self-sufficiency in organic recorded. Organic eggs and poultry are also products of Germany, France’s major export market. important export products.

Market characteristics

Consumer patterns q Products with the red quality label;

Con sumers in France are tradi tion ally health q AOC products (appellation d’origine contrôlée conscious and associate organic foods with a good or registered designation of origin); diet and a healthy life style. How ever, research has shown that, compared with other European q ‘Para-pharmaceutical’ food (food supplements). popula tions, the French tend to prefer to resort to medi cines to cure health prob lems rather than to take For these rea sons, despite clear evi dence that both pre ven tive action in terms of a posi tive diet and life retail turn over and consumer interest in organic food style. Moreover, consumers often have diffi culty in have been increasing strongly since the early 1990s, it dis tin guishing between the dif ferent types of health, is dif fi cult to estimate the real level of pene tra tion diet and natural food prod ucts on sale, which include: among food pur chasers. According to a survey car ried out in Feb ruary 1998 by Louis Harris for Eco cert and q Certified organic products (bio is the term used Vivez Nature, the trade exhi bi tion for organic to signify organic); agricul ture, 10% of those ques tioned claimed to buy organic prod ucts regu larly and 38% occa sion ally. q Products purchased direct from farmers, A survey by Pole Qualité du Maine, in collaboration whether organic or not; with INRA-CRISALIDE, in 1995 distinguished four main types of consumers of organic food, according q Products labelled as farm produced, whether to a multi-criteria analysis of attitudes and behaviour. organic or not; These were: q Natural (naturel) products, free from additives; q ‘Nostalgics’ : a conserva tive segment of the popula tion, concerned primarily with welfare and q Dietetic and slimming products; producing some of its own organic food require ments; 158 CHAPTER 7 – FRANCE

q Ideologists: revolutionary militants with (bovine spongiform encephalopathy, the mad cow altruistic views; disease), nitrates in water, pesticide residues and high dioxine levels in milk, and concern about genetically q Health-conscious consumers: new generation of modified food have made this factor more consumers of organic foodstuffs, who are primarily significant). concerned with their state of health; q Favour pre-packaged products. q The fashionable crowd: new consumers of organic foodstuffs, interested in buying only what is q Attach great significance to the (known) brand perceived to be the best quality, in paying great or label of the supplier as the principal guarantee of attention to their appearance, and in showing off their the foodstuff. ways to other people. q Are more occasional, less faithful purchasers. The first two segments of consumers have declined considerably in significance and the major growth q Are generally not prepared to pay more than has come from the third and fourth types of 20% above the price of conventional products. consumers profiled, which correspond roughly to the categories of regular and occasional buyers of Occa sional buyers are expected to fuel the main organic foods. The main characteristics of these two growth in the organic market in the coming years. types of customer are described below. Social and envi ron mental issues are exerting an ever- increasing influ ence on con sumers and there is Regular long-term buyers growing scope for industrial com pa nies to develop ranges of proc essed and pre- packaged prod ucts q Are mainly intellec tuals, managers and similar to dietetic prod ucts. Moreover, as self- employed profes sionals with higher than average super mar kets and hyper mar kets gradu ally expand the incomes. variety of organic foods stocked, pur chasing by this latter group of cus tomers will increase, because they q Attach high importance to the official AB tend to do a major part of their gro cery shop ping in organic logo and the labels of traditional organic these out lets, rather than in spe cialist shops, organic organizations like Nature et Progrès for a guarantee mar kets, etc. of organic quality. q Are faithful to established distribution channels The most important expectations of the French in their for organic food (direct purchases, markets, Biocoop food purchasing, both individually and collectively, cooperative shops, etc.). and the required responses in terms of food production are summarized in the box on page 159. q Are concerned about the ecological or envi ron- mental aspects of food produc tion, consump tion and According to INRA (Institut national de la recherche buying. The AB logo backs up their socio-political agronomique), the French agricultural research world view. institute, half of the consumers choose organic food q Are prepared to accept price differentials for primarily for health reasons, one third are certified organic foods of 50% or more over the ecologically motivated and about a fifth purchase for conventional alternatives. the better or fresher taste of organic food. Despite the strong potential demand and a good certification New occasional buyers 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 High prices. Organic products are expensive and can be priced at between 30% and several hundred q Are most concerned about the product itself and per cent higher than the conventional alternatives, its measurable characteristics (taste, freshness, depending on the product and the sales outlet. quality, etc.). q Inadequacy of communication with the q Want safe food, free from chemical residues and consumer. Despite much improvement in the other pollutants. Recent food scares, like BSE situation since the early 1990s, French consumers CHAPTER 7 – FRANCE 159 still have great difficulty in understanding exactly number of intermediary distributors sell small what constitutes an organic product. It is estimated quantities of a wide range of products, again leading that about 50% of consumers can now correctly to high costs and prices. define organic products. q Inconvenience. Shops selling organic foods are The product range on offer is too restricted. often too far away. The more multiple chains become involved in selling organic foods the better, because q Appearance of the products. of the habit of French households of doing one major weekly shopping visit to the hypermarket. q Long, inefficient chains of distribution. A large

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 Cultivation without inorganic fertilizers or pesticides. Ecology Exclusive use of natural fertilizers and in small quantities. Protecting the earth Preservation of the soil, water table, fauna, flora and ecosystems. Preservation of the countryside. Social concerns Family farming – roots. Human factors Individual and motivated approach of farmers. Employment/unemployment Dialogue between the various participants in the branch. Migration from the countryside 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 q Edible oils; distributors) and consumers generally distinguish q Wine, beer, vinegar; between the following major groups of organic food and beverage products: q Prepared and pre-cooked dishes. q Products derived from cereals and oil-seeds; A detailed list of most of the organic foodstuffs consumed in France can be found in Annex III. It has q Fruits and vegetables (fresh, preserved, been compiled from catalogues issued by producers, dehydrated, dry, juices, deep-frozen, concentrated); processors and distributors, from data supplied by q Coffee, tea, cocoa; various types of shops and from the Annuaire vert 1998. q Dairy products; q Meats, meat-based products, poultry, eggs, Since 1990, French consumption of organic food pork-based products; products has grown dramatically, and the trade expects an average annual rate of growth in consumption of q Spices, aromatic and medicinal plants; about 20% in the coming years. This demand will be q Sugar, honey, sweeteners; met by the steady increase in French production and by 160 CHAPTER 7 – FRANCE

imports both from EU member States and from third q Dried tropical and Mediterranean-type fruits and countries. Domestic production will not be able to nuts; meet the demand for a large number of products, q Deep-frozen and concentrated fruit purées and either because they cannot be produced locally in pastes for the processing industry; sufficient quantities or because they cannot be produced in France at all, e.g. tropical products. q Coffee, tea, cocoa in all forms, raw or semi-processed. In recent years, the most rapidly developing sectors have been fresh fruits and vegetables, cereals and Developing countries, which already export a large cereal-based products and beverages. These three number of organic products that have been certified product groups together currently represent about half for sale in other European markets, can investigate of the total organic market and are expected to grow the possibilities for exporting these products to from 10% to 20% annually. Dairy products, meat, France. meat products, prepared and pre-cooked dishes are among the products for which demand will probably The development of sales of deep-frozen and grow the fastest over the next five years, at an expected convenience organic foods has been slower in France annual rate of over 20%. Pork is an interesting than in some neighbouring countries but is now example: while there is currently an oversupply of catching up rapidly. conventional pork, the organic pork industry is unable to meet demand and imports are growing. Growth With regard to organic fish, there are no EU or French prospects of about 20% per year are also forecast for a regulations on either ocean or aquaculture fish third group of products, comprising dried fruits, products. However, since 1997 the French authorities legumes, edible oils, coffee, tea, cocoa, sugar, honey, have been working on the certification of aquaculture aromatic and medicinal plants, and spices. products according to an agreed set of specifications. A project for the aquaculture sector in France is under The main product groups showing a strong import review. potential, which can be supplied by developing countries in Africa, Asia and Latin America, either as Most food supplements such as vitamins, minerals raw materials or as semi-processed or fully processed and trace elements, proteins and some dietetic products ready for consumption, include: products fall outside the categories of organically certifiable products. It should be noted, however, that q Cereal products such as soya beans, quinoa, they constitute, together with products that can be sesame seed, amaranth; certified organic (such as herbal teas or infusions, medicinal plants, essential oils and others), a q Rice and derived products; fast-growing market segment. Trade sources estimate q Dried legumes: flageolet, chickpeas, broken the yearly growth rate at over 20%. lentils, green lentils, yellow lentils, soya beans, aduki beans; Organic animal feed has developed well in France and is marketed by half a dozen producing and q Fresh tropical and Mediterranean-type fruits and distributing companies. Organic pet-food products, vegetables; which are sometimes imported (mainly from the q Concentrates, juices and nectars of tropical and Netherlands) have recently taken off, but are not yet Mediterranean-type fruits; covered by EU regulations.

Market access

Regulations on organic foods into force in 1991, France has con tinued to adopt regula tions on animal prod ucts. At the end of the France was the first European country to adopt a 1997, these com prised speci fi ca tions issued and rati- national regu la tion on organic farming (in 1980). fied by the Ministry of Agri cul ture, Fisheries and Since Council Regu la tion (EEC) No. 2092/91 came Food and by the Min istry of Economy, Finance and CHAPTER 7 – FRANCE 161

Plan ning in accor dance with the 1980 law and its ena- There is one legally designated symbol, AB, which bling decree of 1996. The speci fi ca tions are mod elled signifies that a food product conforms with French on IFOAM’s Basic Stan dards of Organic Agri cul ture national and EU regulations on organic agricultural and Food Proc essing. EU regu la tions on animal prod- production. It is an official certification mark, and is ucts came into effect in June 1999. the exclusive property of the Ministry of Agriculture. The control of the use of the logo is entrusted to the Regulations on organic production methods for cow approved certification bodies. The logo is protected milk and other dairy products, veal and beef, dairy in Europe and in countries such as Japan and the cows, rabbits, eggs, sheep, poultry, etc. were ratified United States. by an inter-ministerial decision in 1992. Since then, regulations have also been adopted on pork, honey, Importers wishing to use the AB logo on imported goat milk, sheep milk and other dairy products. organic food products are subject to a mandatory Additional specifications are planned for all forms of control procedure. Under the procedure, importers processed meats. must provide the following:

Organic ingredients of animal origin that are in q A complete description of premises and import conformity with existing French regulations may be activities with, as far as possible, details of the points used in the manufacture of essentially plant-derived of entry of the imported products into the European organic products. These rules will now be supplanted Union; by the EU regulation on animal products, though France may maintain a more stringent national q Evidence of a commitment to carry out import legislation. operations in accordance with what the European Union authorizes and through a competent authority Certification in an EU member country;

France oper ates a system of pri vate inspec tion bodies q Banking information on credit transactions; approved by law. The system meets the require ments of the Asso cia tion française de nor mali sa tion (French q Information on the certifying body for each Stan dards Asso cia tion) and EU Regu la tion 2092/91. consignment imported into the Union. COFRAC (Comité français d’accrédi ta tion) is the official body for the accredi ta tion of cer ti fi ca tion The importer must obtain one certificate for each organi za tions, estab lished in accor dance with Euro - product to be imported and apply for import pean stan dard EN 45011 and its inter na tional equiva- permission (unless the exporting country is on the EU lent ISO/IEC Guide 65. Five organi za tions have so Regulation 2092/91 Article 11 list of approved far been accred ited by COFRAC as cer ti fi ca tion countries). The permit is valid for one year. bodies: Ecocert SARL, Qualité-France, AFAQ- Ascert- International, QNPC and ULASE. In the past there were over 20 associations operating their own organic labelling schemes. Some of these Ecocert is by far the most important body, certifying traditional labels (such as Nature et Progrès and, to a around 80% of all French organic products. Ecocert lesser extent, ABF), although no longer officially also has offices in Belgium and Germany and carries recognized, are often still found next to the official out certification in many countries outside EU, for AB logo on French organic products and continue to instance in Africa. appeal to many French consumers.

Distribution channels

Retail structure 1994 retail distribution developed much more slowly than in neighbouring countries to the north and east of The level of penetration of organic foods into France, as sales by specialist organic retailers different types of retail outlets is a key factor in the stagnated and the multiple retail chains (grandes development of consumption. Between 1985 and surfaces) made only very limited efforts to enter the 162 CHAPTER 7 – FRANCE organic market. A high proportion of sales still took Catering and institutional sales have not expanded place direct from producer to consumer through substantially to date. weekly organic markets (marchés bio), through consumer cooperatives buying direct from producers Processors/packers and wholesalers and through farms selling to the public. The distribution of organic products to retail outlets Since 1994 the situa tion has changed rap idly. Organic and sometimes, in the case of direct farm sales, prod ucts are now avail able in most of France’s major straight to the consumer, is handled by the following: supermar kets and hypermar kets and, by 1997, the market share of these mul ti ples had risen to nearly q About 4,200 producers (farmers); 40% of total sales. Spe cialist shops selling organic, q About 40 importers (some of which are also die tetic, naturel prod ucts and food sup ple ments wholesalers) trading with non-EU countries; accounted for around 30% of con sumer expen di ture on organic prod ucts. Tra di tion ally, bread and bakery q About 500 processors/packers; prod ucts and, there fore, bakery out lets have had a q Five national wholesalers; sig nifi cant share of organic sales in France, but their posi tion has been eroded by the growing super market q 30 regional wholesalers distributing fresh involve ment. Bakery sales and direct sales by farms products and dry groceries. and organic mar kets now have a market share of between 25% and 30%. The huge geographical size of France means that whole salers play a sig nifi cant role in distri bu tion, The first retail chain to intro duce a coherent organic from the col lec tion of pro duce to sup plying proc es- assortment was Mono prix under its own sors and retailers and the han dling of for eign trade. Monoprix-Bio brand. Car re four also intro duced its Until very recently the domi nant force in the dis tri bu- own Carrefour-Bio brand, which is used on both dry tion of organic foods has been Dis tri borg, a national and fresh prod ucts other than fresh fruits and whole saler of organic and diet foods, which had a vegeta bles. Organic fruits and vegeta bles as well as turn over in 1997 of FF 1,478 mil lion. Dis tri borg sells dairy and bakery prod ucts are now being sold by to spe cialist shops and dis trib utes many health food most chains, although sometimes only in a lim ited brands and for eign deli ca tessen prod ucts to the super- number of out lets. Assort ments are avail able at Cora, market or hyper market trade. Its major brand Bjorg is Auchan, Leclerc, Casino, Conti nent, Super U and sold suc cess fully, not only in France, but also in Bel- Prisunic. The fact that three quarters of French gium and Italy; its other labels include La Vie Claire, house holds are said to do one large weekly pur chase Equili brance, Ven do mine, Thé Tuocha, Evernat and of groceries at a hypermarket and the growing Bon ne terre. Dis tri borg controls the chain of health involve ment of these mul ti ples in organic food sales food shops Dame Nature (8 organic super mar kets); should be a major stimu lant to demand in the near the fran chise group of spe cialist shops La Vie future. Claire/Dame Nature (about 150 out lets), pur chased in 1996; and the chain Aux Plaisirs de Fleurance. Dis tri- There are an estimated 1,800 specialist retailers of borg is also active abroad: in addi tion to Dis tri borg organic, dietetic, naturel products and food com pa nies in Italy and Bel gium, it has sub sidi aries supplements in France. After a long period of like the Bel gian groups Prona, Hagor and Genucchi; stagnation, they started to reorganize in purchasing the Italian firm GB TRE; and Bre whurst Health Food groups, cooperatives and franchising systems, such Sup plies (UK), Tasty Food, and Nicholson & Evans as Naturalia, Croque Nature, Bio Markus, Satoriz, in the United Kingdom. L’Eau Vive, Biocoop, Aux Rayons Verts and La Vie Claire. Their sales started to grow again, although Since the mid 1990s Dis tri borg has met fierce com - their relative market share has diminished because of pe ti tion from a new market entrant Le Goût de la Vie, increasing competition from the grandes surfaces. which was set up in 1995 and now supplies a full range of fresh, dry and frozen organic foods. The There are over 25 organic markets (marchés bio) and com pany, with its main commer cial base at Sablé- 140 cooperative (Biocoop) outlets. Box schemes, sur- Sarthe (Loire), sells its prod ucts under three which have been established successfully in other EU brands: Le Goût de la Vie in super mar kets and hyper- markets, have developed more slowly in the French mar kets, and Favrichon and Pro- Sain in specialist market. shops. Le Goût de la Vie organic foods are now CHAPTER 7 – FRANCE 163 stocked by many supermarket chains, including Future trends Mono prix, Auchan, Leclerc, Intermarché, Cham - pion, Prisunic, Con ti nent, Champion, Cora, Match, According to trade sources the following developments Système U and ATAC. Le Goût de la Vie has are likely to take place over the next few years: acquired some of the foremost organic proces sors and its indus trial units now include La Cepad et les q Supermarkets and hypermarkets will increase Domaines de la Nature at Bagues, which pro duces their dominant market share to about 50% of all pre served vege ta bles, fruits and jams; a proc essing French retail sales of organic food and beverages. plant for cereals; and two bakery and bis cuit fac to- ries. Le Goût de la Vie has a Bel gian sub sidiary and q At the time of the prepa ra tion of this survey, the has consid er able exports, mainly to other European major retail organi za tions (like Carre four, Promodès, countries. Auchan, Leclerc, Cora, Mono prix, Prisunic and Super U) were plan ning to launch signifi cant new The other major national oper ating whole salers which product ranges in 1998 and there after, subject to the also handle imports include Bon ne terre, Natouring avail ability of produce and the regu larity of deliv eries, France, Lima, Celnat, Céréales Wander Nutri tion, which are expected to improve. In these outlets, part of Borsa, AEDA, Bio prim and Roussillon. There is also a each product shelf will be reserved for fresh organic network of regional wholesalers. It should be noted products (dairy products, meat and meat products, that wholesalers are facing increas ingly strong fruits and vege ta bles) and dried fruits. In the case of compe ti tion from the organic assortments developed dry groceries, organic prod ucts will either remain in by the big retail chains them selves. the diet product assort ment or be inte grated into the rele vant special ized product shelf (e.g. jams, fruit and Imports vege table preserves, coffee, tea, biscuits, etc.).

The most usual channel of distribution for imported q Catering and institutional sales, as well as mail organic foods is through a specialized importer order and box schemes, are likely to grow. and/or a processor/packer, then through a wholesaler to the retail outlet, which makes the final sale to the q Specialist retailers will continue to reorganize consumer. Direct sales from foreign exporters to and consolidate in chains, cooperatives and franchise central purchasing units of retail chain stores are still organizations (Naturalia, Croque Nature, Bio rare. However, these sales are likely to be of growing Markus, Satoriz, L’Eau Vive, Biocoop, Aux Rayons interest to the multiples as their organic volumes and Verts, La Vie Claire, etc.). However, their market their uptake of new organic products increase. There share may decline vis-à-vis supermarkets and is a rising tendency towards sourcing supplies more hypermarkets. The speciality shops are already globally and developing partnerships at all levels. successfully developing the mini-market concept.

Food manu fac turers tend to buy their imported sup - q Processors/packers and wholesalers will grow in plies either direct from importers or from spe cial ized size and capability in order to meet the increasing (Euro pean) proces sors, which can meet speci fi ca- requirements of the retail sector and consumers for tions and ensure con ti nuity of supply. The manu fac- organic products. turers do not often import direct from out side Europe, though it is likely that this will increase, espe cially as The names and addresses of major importers, the more con ven tional food manu fac turers become processors and packers and retail organizations can involved and set up organic product lines. be found in Annex I.

Competition, prices and margins

Although the retail prices of many organic products increasing penetration of supermarkets in organic have fallen in the last few years because of food sales, price remains a major brake on the growth economies of scale, better management and the of consumption. Prices are still typically far above 164 CHAPTER 7 – FRANCE those of comparable conventional products, and hypermar kets tends to be lower and varies between frequently higher than what many consumers are 10% and 50%. Aver ages are between 10% and 40% prepared to pay. for dairy prod ucts, over 50% for fresh fruits and vege ta bles, and between 5% and 25% for dry goods. Premiums vary according to distribution channels Increasing vol umes of turn over and the intro duc tion and are generally highest in specialist shops. They of pri vate label ranges of organic prod ucts should range from 25% to 80% and sometimes more gradu ally make it pos sible to reduce the dif fer en tial, according to the product range and the type of but the key ques tion is whether consumers are shop. prepared to pay the premium which will usu ally be nec es sary to cover the higher costs of raw mate rials The price dif fer en tial in supermar kets and and of proc essing cer ti fied organic prod ucts.

Prospects and opportunities

Overall prospects and spices, sales of which should increase by about 20% annually. The prospects for the further development of the French market for organic food products depend on Offi cial policy. Between 1985 and 1995 France lost its three closely linked factors: supply and consumer lead er ship role in the Euro pean organic food market. A demand, official policy, and growing professionalism major objec tive of official national policy now is to in the organic trade. close the gap, particu larly with Aus tria, Den mark, Ger many and the Neth er lands. At the end of 1997, the Supply and consumer demand. Since 1990 French Min istry of Agri cul ture, Fish eries and Food launched consumption of organic food products has increased an ambitious five- year plan (1998-2002) for the dramatically, and the trade expects an average annual devel op ment and pro mo tion of organic farming. growth rate of 20% in the coming years. This demand will be met partly by the steady increase in domestic France has a number of advantages which have not production and also by imports both from EU been sufficiently exploited to date: member States and from third countries. q A favour able home market based on the Domestic production will not be able to meet demand consump tion criteria of health, the envi ron ment and for a large number of organic products, which cannot flavour; be locally produced in sufficient quantities or which are not produced at all in France, e.g. tropical products. q Committed farming leaders and a network of organic farming advisers; In recent years, the most rapidly developing sectors have been fresh fruits and vegetables, cereal-based q Large areas with low population densities where products and beverages. These three product groups extensive farming methods are similar to those of together currently account for about half of the total organic farming, and other more populated areas but organic turnover and are expected to have an annual whose farmers, nonetheless, are aware of the growth rate of between 10% and 20% over the next excesses of certain intensive methods and the several years. Other products with excellent growth sizeable potential of the organic market; prospects are: q A strong and pioneering regulatory and control q Dairy products, meat, meat products, prepared framework with rigorous national specifications, and and pre-cooked dishes: demand for these product a control system set up in conformity with European categories will probably grow by over 20% annually standard EN 45011, which ensures the independence, over the next several years; 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 CHAPTER 7 – FRANCE 165

which, within five years, should lead to the doubling q Large-scale supply and improved supply of public financial assistance. It is hoped that these regularity. priorities (listed below) will give a new growth impetus to organic food production and trade: q Improved logistics between producers and processors to retail outlets. q The harmonization and strengthening of regulatory and control measures within the European q Greater proximity to consumers owing to the framework to avoid distortion of competition; rapid multiplication of supermarkets and specialist shops. q The enhancement of territorial advantages by increasing financial aid for conversion to organic q The modernization of processing methods, agriculture and product development; adaptation of product quality by processors and distribution to new groups of consumers, including q The strengthening of the distribution system at those who want products which are both modern and regional and local level; organic. q Product promotion: quality, availability, q Satisfactory storage conditions. information; q Mass communication on the concept of organic q New efforts to improve product quality and products (and the AB logo) aimed at improving pricing; consumer awareness. q The strengthening of public assistance and joint q Improved packaging of, and information on, action with the trade. products on the shelves, especially with regard to the guarantee of quality; quality and taste characteristics: One of the key elements of this plan involves health, nutrition, security, absence of residues, increasing the number of organic farmers from 4,500 flavours; respect for the environment; appearance; at the end of 1997 to 25,000 by the year 2005. freshness; and identification of place of origin.

Growing professionalism in the organic trade. Since q A simultaneous increase in sales to regular 1995 changing attitudes to the organic business have buyers and growing numbers of occasional buyers. resulted in: q Increased investments by the major food groups Specific market opportunities (e.g. Besnier, Bourgoin, Danone), processors and packers; Developing countries in Africa, Asia and Latin America, which already export a large number of q Heightened industrial transformation with the products that are certified organic in EU, can increase appearance of genuine manufacturer’s brand names their exports to France. As said earlier, the main as well as a stronger presence of the large retailers product groups showing a strong import potential, marketing manufacturer’s brands and/or private whether as raw materials or as semi-processed or fully labels; processed products ready for consumption, include: q Improved presentation of organic products by q Cereal and other products derived from soya supermarkets and hypermarkets with a view to beans, quinoa, sesame, amaranth; narrowing the price difference between organic products and conventional products. This has the q Rice and rice-derived products; effect of broadening the product range to include items which previously were sold only by certain q Dry legumes such as lentils, beans, flageolets, specialist chain stores. chickpeas, broken lentils, green lentils, yellow lentils, soya beans, aduki beans; Consumption will be stimulated by the new trends which have emerged since 1995. These include the q Fresh tropical and Mediterranean-type fruits and following: vegetables; 166 CHAPTER 7 – FRANCE

q Concentrates, juices and nectars of tropical and cocoa, peanut, sesame and even olive oil. Mediterranean-type fruits; For most of these products, penetration of the French q Dried tropical and Mediterranean-type fruits and market will usually be through importers or through nuts; 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; The development of partnerships with or without transfer of technology between suppliers in developing q Coffee, tea, cocoa in all forms, raw or countries and importers and processors/packers is semi-processed. making progress in a large number of EU countries, including France, and should help in the further France is largely self-sufficient in meat and meat penetration of the French market. Overall there is a products, including beef and lamb, as well as dairy tendency to source supplies more globally. The products, and is even an important exporter of poultry creation, development and strengthening of certifying products. The market potential for aromatic and authorities for organic products in developing medicinal plants and essential oils is limited, except, countries, which meet the standards required by EU of course, for those growing only in tropical areas. and French regulations, will strongly increase the There are better prospects for honey, cane sugar and opportunities for exporters in these countries to gain some edible oils and fats, including palm oil, soy, access to the French market. Annex I

France: selected addresses*

IMPORTERS Fax: +33-4 78 43 87 70 Tel: +33-4 42 24 42 57 E-mail: [email protected] Fax: +33-4 42 24 36 62 Arcadie SA http://www.atgi.fr/exodom.htm (Importer of organic tea and coffee) 1115 route d’Uzès (Importer of organic exotic fruits and 30100 Alès vegetables, fruit juices, dried fruits, Pimpexport Tel: +33-4 66 56 99 33 cocoa and coffee) 103 boulevard Mac Donald Fax: +33-4 66 30 62 61 75019 Paris (Importer of organic spices, fresh Fimex Tel: +33-1 45 91 05 88 and dehydrated aromatic herbs, 10 rue du Perche Fax: +33-1 45 91 05 78 dehydrated vegetables, herbal teas, 75003 Paris (Importer and trader in organic teas, Tel: +33-1 48 04 54 07 infusions) aromatic plants, herbal tea plants, Fax: +33-1 42 71 83 84 plant extracts, spices) Bioprim (Importer of organic tea) 530 Av. de Milan ZI du Grand Saint Charles IMAGO Pronatura 66000 Perpignan Marché St. Charles MIN 68 Tel: +33-4 68 54 79 79 BP 5129 84953 Cavaillon Cedex Fax: +33-4 68 54 57 68 66031 Perpignan Tel: +33-4 90 78 73 04 Email: [email protected] Tel: +33-4 68 68 40 40 Fax: +33-4 90 78 73 14 (Importer, packer and wholesaler of Fax: +33-4 48 68 40 48 (Importer and trader in organic fruits fruits and vegetables) Email: [email protected] and vegetables, citrus fruits, dried (Importer, packer and wholesaler of fruits) Dynamis France fruits and vegetables) 54 avenue de la Vilette René Devalance 94637 Rungis Cedex Jean Jacques Boutrou Domaine de Choisel Tel: +33-1 45 60 43 44 67 rue Robespierre 51120 Queudes Fax: +33-1 46 87 44 05 93558 Montreuil Cedex Tel: +33-1 42 87 70 21 Tel: +33-3 26 80 53 85 (Importer of organic fresh fruit and Fax: +33-3 26 81 35 02 vegetables) Fax: +33-1 48 51 52 73 (Agent for Tradin Organic BV, (Importer and trader in organic cereals, flour, edible oils, dried Euro Breizh Netherlands) 8 rue des Martyrs legumes, legumes, oil-seeds, 29270 Carhaix-Plouguer JK Nature oil-seed/protein products, salts, Tel: +33-2 98 99 25 20 ZI La Saussaye semolina, preserves, rice) Fax: +33-2 98 99 25 21 124 rue du Rond d’Eau (Importer, processor and wholesaler 45590 Orléans Sté Arcada France of cereals and pulses) Tel: +33-2 38 25 00 70 Domaine du Blazy Fax: +33-2 38 25 00 77 47130 Port-Sainte-Marie Exodom (Importer, packer and wholesaler of Tel: +33-5 53 87 20 24 Centre Commercial le Chateau fruits and vegetables) Fax: +33-5 53 87 26 18 108 rue Jean Fournier Email: [email protected] Les Rois Mages BP 9025 (Importer-distributor of organic fruit 69261 Lyon Cedex 09 210 rue Louis Arnaud and vegetables) Tel: +33-4 78 43 83 85 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 168 CHAPTER 7 – FRANCE

PROCESSORS AND Tel: +33-5 62 18 72 50 Sté Prosain PACKERS ** Fax: +33-5 62 18 72 51 (Group Le Goût de la Vie) (Processor and distributor of Les Mates organic soya-based products) 66670 Bages BIO Planete Sarl Route de Limoux Tel: +33-4 68 21 60 23 Sté Bio d’Armor Fax: +33-4 68 21 80 36 11150 Bram La Croix Rouge Tel: +33-4 68 76 51 27 (Jams, purées, vegetable Ergué - Gabéric preserves: organic peas, beans, Fax: +33-4 68 76 54 73 29556 Quimper Cedex 9 (Cooking oils) lentils, gazpacho, tomato or Tel: +33-2 98 59 58 00 piperade, ratatouille, juices, nectars, Fax: +33-2 98 59 69 99 syrups) Celnat (Processor and distributor of ZI de Blavozy organic fresh produce and grocery Sté Provence Régime SA 43700 Saint-Germain-Laprade products) Tel: +33-4 71 03 04 14 ZI La Verrerie Fax: +33-4 71 03 54 31 Sté Biovivre Diepal-NSA BP 99 (Processor and distributor of BP 432 30130 Pont-Saint-Esprit organic cereals, cereal-based 69654 Villefranche-sur-Saône Tel: +33-4 66 90 54 54 products, tea, etc.) Cedex Fax: +33-4 66 39 42 31 Tel: +33-4 74 62 63 64 (Processor and distributor of edible Distriborg France Fax: +33-4 74 62 61 96 oils, speciality products from the 217 chemin du Grand Revoyet (Processor and distributor of south of France, oil-seeds, 69561 St-Genis-Laval organic condiments, bakery vinegars, organic sauces and Lyon products, cooking cereals, pasta, condiments) Tel: +33-4 72 67 10 20 rice, biscuits, pre-cooked dishes, Fax: +33-4 72 67 10 57 sauces, juices, infusions, coffee, Viver SA (Processor and distributor of breakfast foods, flours) Le Marchon organic products) 47130 Bazens Sté Bonneterre (Group Tel: +33-5 53 87 27 76 Florame Distriborg) Fax: +33-5 53 87 21 69 34 boulevard Mirabeau 1 place des Planteurs (Processed tomato product, fruit 13210 Saint-Rémy-de-Provence 94538 Rungis Cedex juices, jams, marmalade, fruit Tel: +33-4 90 92 48 70 Tel: +33-1 49 78 25 00 purée, etc.) Fax: +33-4 90 92 48 80 Fax: +33-1 46 87 91 68 (Essential oils, etc.) (Distributor of organic dairy products, fresh fruits and Fytosan - La Drome Provençal vegetables, cereals, edible oils, ZA de Cocause flours, jam, dried fruits) SPECIALIZED RETAIL 26150 Die CHAINS FOR ORGANIC AND Tel: +33-4 75 21 09 09 Sté Brugier Sillon NATURAL PRODUCTS AND Fax: +33-4 75 22 18 70 (Group Distriborg) (Essential oils, etc.) ZI en Tourré FOOD SUPPLEMENTS 11400 Castelnaudary Le Goût de la Vie s.a. Tel: +33-4 68 94 52 10 Aux Rayons Verts 83 boulevard Montparnasse Fax: +33-4 68 94 02 80 (60 shops) 75006 Paris (Processor and distributor of 41 rue Léon Blum Tel: +33-1 53 63 24 70 organic dried fruits) ZA La Neuvillette Fax: +33-1 53 63 24 71 51100 Reims E-mail: [email protected] Sté Favrichon Tel: +33-3 26 87 22 90 (Group Le Goût de la Vie) (Importer, processor, wholesaler Fax: +33-3 26 04 88 79 BP 2 and exporter of grocery items and 42470 Saint-Symphorien dairy products) Biocash Distribution Tel: +33-4 77 64 75 09 (Central buying) Fax: +33-4 77 62 74 11 281 avenue du Marché Gare Markal (Organic muesli, cornflakes, rusks, ZA Les Plaines MIN Espace No. 13 biscuits, dried legumes, creamed 34047 Montpellier Cedex 1 26320 St-Marcel-lès-Valence corn, infant cereals) Tel: +33-4 75 58 72 20 Tel: +33-4 67 58 68 58 Fax: +33-4 67 58 59 70 Fax: +33-4 75 58 81 85 Sté Hervé Produits Biologiques (Processor and distributor of 36700 Clion-sur-Indre organic cereals, cereal-based Tel: +33-2 54 38 66 03 Biocoop products, rice, grains and legumes) Fax: +33-2 54 38 66 04 (180 shops) (Processor and distributor of 22 cours Gambetta Nutrition et Soja-Soy organic dried fruits, purées and 65000 Tarbes Chemin de l’Horte dried fruit sweets, lacto-fermented Tel: +33-5 62 34 10 37 31250 Revel cereals, instant beverages) Fax: +33-5 62 44 15 96

______** Of which some are also importers. CHAPTER 7 – FRANCE 169

Biothiclub 94000 Créteil Cedex (Ministry of Agriculture, Fisheries 46 rue Pierre Germain Tel: +33-1 45 17 92 00 and Food) 11000 Carcassonne Fax: +33-1 45 17 92 20 30 rue Las Cases Tel: +33-4 68 72 09 00 75340 Paris Cedex 07 Fax: +33-4 68 25 48 48 Tel: +33-1 49 55 57 03 Fax: +33-1 49 55 56 01 La Vie Claire ACCREDITATION AND (Responsible for planning the (Group Distriborg - 120 shops) CERTIFICATION development of the organic 35 avenue du 1er mai ORGANIZATIONS agricultural sector) 91127 Palaiseau Cedex Tel: +33-1 64 53 83 00 AFAQ-ASCERT International Direction générale de l’alimentation Fax: +33-1 64 53 83 01 116 avenue Aristride Birand Bureau des labels et des BP 83 certifications de produits 92225 Bagneaux Cedex 175 rue du Chevaleret Tel: +33-1 46 15 70 60 75646 Paris Cedex 13 SUPERMARKET/ Tel: +33-1 49 55 80 03 HYPERMARKET CHAINS Fax: +33-1 46 15 70 69 (Certification) Ministère de l’économie, des Auchan COFRAC finances et du plan Centrale d’achats 37 rue de Lyon (Ministry of Economy, Finance and 200 rue de la Recherche 75012 Paris Planning) 59656 Villeneuve-d’Ascq Cedex Tel: +33-1 44 68 82 58 (General Directorate of Competition, Tel: +33-3 20 67 55 78 Fax: +33-1 44 68 82 48 Consumers Affairs and Fraud Fax: +33-3 28 37 61 39 (Accreditation and certification Repression) E-mail: [email protected] organization) Bureau H4 59 boulevard Vincent Auriol Carrefour ECOCERT SARL Télédoc 051 BP 75 BP 47 75073 Paris Cedex 13 Zae de Saint Guénault 32600 L’Isle-Jourdain Tel: +33-1 44 87 17 17 1 rue Jean Mermoz Tel: +33-5 62 07 34 24 Fax: +33-1 44 97 30 43 91002 Évry Cedex Fax: +33-5 62 07 11 67 Tel: +33-1 60 91 37 37 E-mail: [email protected] Fax: +33-1 60 79 44 98 (Certification) RESEARCH CENTRES

Centres Leclerc QNPC (Qualité CREDOC - Centre de recherce 149 rue Saint Honoré Nord-Pas-de-Calais) pour l’étude et l’observation des 75001 Paris 241 avenue de la République conditions de vie Tel: +33-1 46 62 52 00 59110 La Madeleine (Research Centre for the Study and Fax: +33-1 46 62 96 00 Tel: +33-3 28 38 94 84 Observation of Living Conditions) Fax: +33-3 28 38 90 87 142 rue du Chevaleret Cora/Loceda Hyperselection (Certification) 75013 Paris BP 81 Tel: +33-1 40 77 85 61 Domaine de Beaubourg Qualite France Fax: +33-1 40 77 85 09 77183 Croissy-sur-Beaubourg 18 rue Volney Tel: +33-1 64 62 65 00 75002 Paris CRITT-CRISALIDE - Centre de Fax: +33-1 64 80 40 51 Tel: +33-1 42 61 58 23 transfert de technologie dans le Fax: +33-1 42 60 51 61 secteur végétal Monoprix SA (Certification) (Centre for the transfer of 3 rue Paul Cézanne technology in the crop sector) 75008 Paris ULASE 2 rue Henri Becquerel Tel: +33-1 40 75 15 15 Place du Champ de Mars 49070 Beaucouzé Fax: +33-1 40 75 11 16 26270 Loriol-sur-Drôme Tel: +33-2 41 48 13 50 Tel: +33-4 75 61 13 00 Fax: +33-2 41 48 07 87 Prisunic SA Fax: +33-4 75 85 62 12 67-69 boulevard Gal. Leclerc (Certification) INRA - Institut national de la 92110 Clichy recherche agronomique Tel: +33-1 41 17 85 000 147 rue de l’Université Fax: +33-1 41 27 88 77 75338 Paris Cedex 07 GOVERNMENT OFFICES, Tel: +33-1 42 75 90 00 Promodès RESEARCH CENTRES, Fax: +33-1 47 05 99 66 http://www.inra.fr ZI, Route de Paris TRADE AND INDUSTRY 14120 Mondeville Tel: +33-3 17 06 060 ASSOCIATIONS INRA-UREQUA - Unité de Fax: +33-3 18 35 619 recherche spécialisée sur MINISTRIES l’économie des qualifications Système U Centrale Nationale SA agro-alimentaires Immeuble Créteil Expansion Ministère de l’agriculture, de la (Specialized research unit on the 9-11 rue George Enesco pêche et de l’alimentation economic aspects of agro-food 170 CHAPTER 7 – FRANCE

specifications) biologique regroupant des régions de France 8 avenue Laënnec transformateurs- industriels et (National Federation of Organic 72000 Le Mans distributeurs français de produits Farming of the French Regions) Tel: +33-2 43 39 94 00 biologiques 40 rue de Malte Fax: +33-2 43 39 94 09 (Association of Organic Agriculture 75011 Paris comprising processors, Tel: +33-1 43 38 38 69 manufacturers and distributors of Fax: +33-1 43 38 39 70 organic products) PROFESSIONAL 1 avenue de Verdun Mouvement de Culture ORGANIZATIONS 33500 Libourne Biodynamique Tel: +33-5 57 51 96 82 Jean Michel Florin APCA - Association permanente Fax: +33-5 57 51 97 28 5, Place de la Gare des Chambres d’agriculture 68000 Colmar (Permanent Association of Fédération française de la Tel: +33-3 89 24 36 41 Agricultural Chambers) diététique Fax: +33-3 89 24 27 47 9 avenue Georges V (French Dietetic Federation) E-mail: [email protected] Paris (Federation of several professional Tel: +33-1 53 57 10 05 unions organizing the DIETEXPO SETRAB - Syndicat européen des trade show in Paris) transformateurs de produits de Association Demeter France 14 terrasse Bellini l’agriculture biologique BP 286 92807 Puteaux (European Union of Processors of 67606 Sélestat Cedex Tel: +33-1 47 75 03 09 Organic Agriculture) Tel/Fax: +33-1 30 71 11 24 Fax: +33-1 47 55 03 09 40 avenue des Terroirs de France 75611 Paris Cedex 12 BIO CONVERGENCE - FNAB - Fédération nationale de Tel: +33-1 44 74 53 56 Association d’agriculture l’agriculture biologique des 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)

Estimated Estimated Products tonnage Origin Products tonnage Origin Apples 100 Poland Dried apricots 30 Turkey Pears 50 Dried figs 60 Apples 500 Poland Fig pieces 5 Pears 50 Fig cream 5 Dried cinnamon 13 Madagascar Raisins 150 Dried cloves 4.2 Raisin cream 10 Avocado pears 30 Mexico Shelled hazelnuts 15 Late oranges 34 Morocco Green walnuts 15 Dried apricots 70 Pine nuts 10 Dried figs 100 Chickpeas 330 Fig pieces 5 Lentils 270 Fig cream 20 Beet sugar 100 Slovakia Raisins 200 Cocoa beans 90 Dominican Republic Raisin cream 10 Raisins 5 United States Peeled hazelnuts 80 Raisins 15 United States Green walnuts 10 Beet sugar 240 South Africa Pine pips 2 Quinoa 200 Bolivia Chickpeas 5 Black tea 7 Sri Lanka Lentils 5 Black, white and green tea 2 India Palm oil 7 700 Colombia Oranges 2.4 Morocco Green coffee 69 Mexico Lemons 0.3 Green coffee 35 Costa Rica Sweet mint 1 Mangoes 30 Dominican Republic Marjoram 0.5 Oranges 250 United States Citronnella 0.2 Lemons 70 Sage 0.5 Grapefruit 150 Basilic 0.2 Nutmegs 4.5 Madagascar Rosemary 0.2 Green walnuts 25 India Olives 0.2 Tomatoes 20 Morocco Molasses 0.3 Carrots 90 Nettles 0.1 Melons 15 Parsley 0.2 Zucchini 20 Deep-frozen apricots 5 Turkey Cucumbers 25 Dried apricots 0.275 Turkey Pistacchio nuts in shell 1 United States Pine pips 0.1 Sesame 40 Ethiopia Hazelnuts 0.16 Dried chicory 150 Hungary Sultanas 0.2 Fresh lychees 8 Madagascar Dried figs 0.2 Fresh pineapple 2 Black vanilla 0.5 Madagascar Fresh rambutans 1.5 Cocoa beans 18 Dominican Republic Peppers 0.2 Peeled almonds 2 United States Deep-frozen blackcurrants 40 Canada Peeled almonds 2 United States Eucalyptus oil 1 Zimbabwe Peeled almonds 10 United States Tea tree oil 1 Dates 10 United States Green walnuts 25 India Cocoroll dates 2 172 CHAPTER 7 – FRANCE

Products Estimated Origin Products Estimated Origin tonnage tonnage Dried apples 2 United States Fresh coconuts 2 Dried pears 1 United States Dried coconuts 1 Dried apples 0.5 United States Apples 100 Madagascar Dried pears 0.5 United States Tea tree oil 0.75 Zimbabwe Dates 4 United States Dried figs 60 Turkey Cocoroll dates 1.5 United States Late oranges 422.5 Morocco Dates 1.3 United States Navel oranges 240 Cocoroll dates 3 United States Tampla oranges 60 Dried bananas 10 Colombia Valencia oranges 80 Fresh mangoes 1 Lemons 147.5 Fresh pineapples 2 Clementines 339.5 Dried pineapples 1 Grapefruits 20 PROVISIONAL TOTAL IMPORTS OF ORGANIC FOOD PRODUCTS IN 1997: 13 288.18 metric tons Annex III

Commercial organic products sold in 1997

CEREAL PRODUCTS AND Cereals, germs Papaya PULSES Corn flakes Pear Crackers Pineapple Cereals Cream of barley, cream of rice Flour, rye flour, barley flour, Artichoke Barley cornflour, soya flour, buckwheat Avocado Buckwheat flour, quinoa flour Beans, green, butter, mung Millet Gingerbread Beetroot Oats Muesli Broccoli Popcorn Oat flakes, cereal flakes Brussels sprouts Rye Pasta: all types and varieties Cabbage, Chinese Spelt Pastry Cabbage, green Wheat Rusks and toasts Cabbage, pak-choï Soya, oats, rice, wheat, malt Cabbage, red drinks Carrot Seeds Viennoiserie Cauliflower Amaranth Wheat, corn, bulgur semolina Celeriac Bulgur (pre-germinated and White wholemeal couscous Celery crushed wheat) Courgette Cucumber Colza Dried seeds (pulses) Green or yellow soya Eggplant Linseed Azuki beans Endive, curly Lucerne (alfalfa) Black, white, red, brown, mung, Fennel Quinoa ingot beans Garlic Safflower Chickpeas Horseradish Sesamum seeds Green peas Kale, curly Squash Soya beans Leek Sunflower Split peas Lettuce Sheat bran White, green, red and ‘coral’ Lettuce, lamb’s lentils Lettuce, Webb White, pink, red, black kidney Onion, yellow Rice beans Parsley Yellow peas Pepper, green, red, yellow Basmati rice Potatoes Brown rice Pumpkin Glutinous rice (red brown) Tomatoes, Roma, round Indian rice Spinach Precooked white rice FRUITS AND VEGETABLES Turnip, white, yellow, purple Rice cakes Under-milled rice Wild rice Fresh Canned Apple Dried fruit purée Cereal by-products Baby banana Fruit in syrup Banana Fruit purée and compote Biscuits Banana, red Jams: strawberry, blackcurrant, Bran Carob raspberry, bilberry, fig, chestnut, Bread for sandwiches Grape, red and white kiwi, pear, plum, apricot, peach Cereals, breakfast Grapefruit Canned vegetables: peas, green Cereals for babies Kiwi fruit beans, lentils, chickpeas, Cereals made of vegetable Lemon beetroot salad, whole tomatoes paste Mandarin in juice Cereals, purées Mango Tomato sauces Cereals, steaks Orange Vegetable soups 174 CHAPTER 7 – FRANCE

Candied hazelnuts in sugar cane Apricot purée Colza juice/in honey Banana slices Corn germ Candied almonds in sugar cane Banana purée Groundnut juice/ in maple syrup Banana paste Hazelnut White sesamum in sugar cane Frozen banana Marsh thistle almond juice Bilberry Nut Purées: hazelnut, almond, Elderberry Olive sesamum, peanut, cashew Gooseberry Palm Chocolate, karouba, kokolo Guava purée Safflower spread Mango purée Sesamum Maracuya juice Soya Dried fruits (loose or Orange concentrate Squash seed Orange juice Sunflower packaged) Peach Wheat germ Almond Pear Amazonia nuts Pineapple Apple Pineapple juice Apricot Plum WINE, BEER, VINEGAR Bilberry Raspberry Raspberry purée Cashew nuts French and imported wine Redcurrant Cherry French and imported beer Sour cherry Currants Wine vinegar, cider vinegar, Strawberry purée Deglet nour date raspberry vinegar Dried banana Tomato concentrate Fig Wild bramble Grape Grenoble nuts Hazelnut COFFEE, TEA, COCOA Mango PREPARED, COOKED Medjool jumbo date Raw coffee DISHES Medjool supreme date 100% pure arabica ground coffee Papaya Freeze-dried coffee Aubergine niçoise Pear Tea Aubergine caviar Pine nut Instant chicory Courgette purée Pineapple 100% pure cocoa drinking Couscous Pistachio nut chocolate Creams Shredded coconut Cocoa beans Fresh sprouts/germs: soya bean, Sultanas Cocoa cream alfalfa, lentil, radish, wheat Thompson grape Black, milk coating Mixed soya Carob powder Mixed salads with germinated Juices, nectars and syrups seeds Mixed salads Apple Mousselines (whipped purées) Blackcurrant DAIRY PRODUCTS Piperade Carrot Ratatouille Celery Butter Ravioli Cereals Cheese: Emmenthal, Comté, Seitan (preparations of wheat Grapefruit gouda, tofu (soya cheese), gluten) Lemon Camembert, fresh cheese Tabbouleh Mint (syrup) Fresh cream Vegetarian cooked dishes Orange Faisselle Plum Ice cream Potato Milk desserts : cocoa, soya and Radish caramel, natural yoghurt, stirred Red and white grape yoghurt, fruit flavour, with fruit Tamari Milk: cow, soya, rice/soya, MEAT, MEAT PRODUCTS, Tomato vanilla/soya, almond POULTRY, EGGS, Powdered milk, whey powder PREPARED MEAT Frozen fruits and PRODUCTS concentrates Acarillo purée OILS Beef, veal, mutton Apple Poultry Apple concentrate Almond Eggs Apricot Coconut Prepared meat products CHAPTER 7 – FRANCE 175

HERBS, SPICES, SALTS Green oregano Harissa AND CONDIMENTS Scots pine Olives Ravensara Rosemary Vanilla Turpentine Tea tree SUGAR, HONEY, Basil Thyme Ylang-ylang SWEETENERS Lemon Salts Clove Brown cane sugar, unrefined Cypress Tomato concentrate Tomato coulis Honey: black alder, chestnut tree, Eucalyptus Peeled tomato lavender, mountain, mixed Juniper berries flowers, sunflower, acacia, Geranium rosat Salted ketchup Tomato sauce à la Provençale heather, dandelion pollen royal Fine lavender with basil jelly Lavandin Honey sweets, agave syrup Peppermint Soya sauce: shoyu (made with soya and wheat, salted) Maple syrup Punk tree Beetroot syrup Sweet orange Tofu sauce: tamari (made with soya and wheat, salted) Glucose syrup Chapter 8

GERMANY

Organic farming: historical development

Organic agricul ture commenced in Germany at the brands Eden (estab lished in 1893 and now owned by time of the organ ized land and food reform move ment DeVauGe and Gra no vita) date from that period. (1893-1925), when Reform shops (Reformhäuser in German) were established. As early as 1903 Gustav This situa tion lasted until the 1960s and 1970s, when Simons of the Reform Colony in Eden- Oranienburg, the natural food move ment gained impor tance and near Berlin, wrote a booklet about the rela tion ship cre ated its own cir cuit of farmers, proc es sors, between the health of the soil, the growth of plants and whole salers and natural food stores (Natur kos tläden the health of man kind. Bio dy namic agri cul ture started in German). Major growth started in the late 1980s and in 1924 with Rudolf Steiner’s “Agri cul tural Course”, early 1990s, when con ven tional food retailers became given in Kober witz. His pupil Ehren fried Pfeiffer was involved. Their entrance into the market forced the instru mental in spreading aware ness of bio dy namic stag nating natural food stores to reorganize and agri cul ture in Ger many, the Neth er lands and the mod ernize. United States. From the mid 1930s onwards the Müller-Rusch biological- organic method devel oped Today Ger many as a market for organic prod ucts is strongly, but organic (and biody namic) agricul ture Euro pe’s largest and the world’s second largest after remained mar ginal, and organic prod ucts were sold the United States. How ever, despite the fact that it only in Reform shops. Well- known brands of natural con tinues to grow, there are also rea sons for serious body care prod ucts and natural medi cines like con cern about its future devel op ment, as will be seen Dr Hauschka (Wala) and Weleda and the Reform food in the sec tion on sum mary and market pros pects.

Supply and demand

Domestic production farms are gen er ally larger and have lower pro duc tion costs than in western Ger many (see table 8.1). The area under organic pro duc tion increased sharply from 45,000 hec tares in 1989 to 416,500 hec tares by Until about 10 years ago Germany could easily the end of 1998. Con ver sion to organic farming has absorb any organic supplies offered even at high been stimulated partly by political and financial prices. How ever, the country has now become largely support. Public funding has been especially self- sufficient in many basic organic food items, like suc cessful in eastern Germany, where at the time of cereals, vege ta bles, milk and meat, and has even reunifi ca tion in 1990 cer ti fied organic farming was started to export prod ucts like pota toes, some vir tu ally non- existent. Today a higher per centage of vege ta bles and cereals. Sur pluses in these sec tors are agricul tural land is used for organic farming in the no longer exceptional, which can have a nega tive Neue Bundesländer (new federal States), where effect on price levels. CHAPTER 8 – GERMANY 177

Table 8.1 Germany: number of farms and areas under organic farming, 1 January 1998

Federal State No. of organic % of all farms Area (hectares) % of all farms agricultural land Total, western Germany 5 898 1.19 185 734 1.59 of which: Bayern (Bavaria) 2 572 1.47 69 476 2.06 Baden-Württemberg 1 277 1.58 32 894 2.28 Niedersachsen (Lower Saxony) 467 0.62 22 496 0.84 Schleswig-Holstein 283 1.17 19 619 1.88 Nordrhein-Westfalen (North Rhine-Westphalia) 541 0.81 16 209 1.05 Hessen (Hesse) 369 1.08 14 563 1.89 Rheinland-Pfalz (Rhineland-Palatinate) 330 0.95 8 193 1.15 Saarland 31 1.41 1 505 2.02 Hamburg 21 2.27 686 5.04 Bremen 7 2.49 93 1.01 Total, eastern Germany 888 2.83 166 640 3.00 of which: Mecklenburg-Vorpommern (Mecklenburg-Western 443 8.65 85 599 6.35 Pomerania) Brandenburg 185 2.48 46 052 3.42 Sachsen-Anhalt 83 1.58 14 153 1.21 Thüringen (Thuringia) 48 0.91 10 542 1.32 Sachsen (Saxony) 122 1.50 10 145 1.13 Berlin 7 8.54 149 7.84 TOTAL, GERMANY 6 786 1.29 352 374 2.05

Source: AGÖL and ITC compilation.

Table 8.1 only covers farms that are mem bers of one of organic prod ucts in Ger many. The most impor tant of the nine member asso cia tions of AGÖL (Arbe its- catego ries are bread and bakery prod ucts (over 90% gemein schaft Ökolo gischer Landbau), the German of the raw mate rials used to pro duce these items are Federa tion of Organic Agri cul tural Asso cia tions. of domestic origin), dairy and tofu prod ucts and eggs There are about 1,500 organic farms with an (about 80% domestic), fruits and vegeta bles (45%) estimated 100,000 hec tares which are not mem bers and meat (99%). A signifi cant pro por tion of the of an AGÖL- affiliated asso cia tion. whole grains, cereals, muesli and drinks consumed are also locally produced. The two key growth According to esti mates, domestic produc tion sec tors are meat, meat prod ucts and poultry, and dairy sup plies over 60% (DM 2.2 bil lion) of all retail sales prod ucts, whilst organic seed and plant production

Table 8.2 Germany: AGÖL member organizations, 1 January 1999

Name No. of farms Area (hectares) Date founded Characteristics ANOG 85 3 287 1962 Small organization; produces fruits and vegetables. Biokreis Ostbayern 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 1985 Wine producers. Gäa 313 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 CHAPTER 8 – GERMANY are also on the increase. in the world after the United States.

Meat, meat products, poultry Fruits and vegeta bles are the most sig nifi cant sales item and accounted for 18% of sales in 1996. Since To date meat has had a minor place in organic food then this share has undoubt edly increased as sales but, according to Frost & Sul livan (1997), it is con ven tional supermar kets have con sid erably now the fastest growing sector. One reason for its widened their range of organic produce. Other slow devel op ment in the past was the high cost of impor tant product groups are dairy and tofu prod ucts produc tion. This is especially true of pork and (16% of sales in 1996), bread and bakery prod ucts poultry, the organic fodder for which is expen sive. (14%) and baby food (13%). Another reason was the absence of economies of scale: the stocking, slaugh tering, proc essing and Table 8.3 gives a break down of sales of organic foods mar keting of small quanti ties of organic produce is in Ger many by product cate gory. For this pur pose the costly. Finally, tra di tional whole food con sumers did BNN clas si fi ca tion has been used. BNN or not and still do not eat meat or eat only small Bun des ver band Natur kost is the umbrella quan ti ties of it. organiza tion for the spe cial ized natural food retail trade. Organic baby food has been added at the end of This situa tion is changing as con ven tional food the table because, although it is of little signifi cance distribu tors, which appeal to a wider range of to overall sales in natural food shops, it is an consumers, are begin ning to carry organic meat and impor tant product cate gory in total organic sales. meat prod ucts in a lim ited number of out lets. The domi nant multiple Rewe has formed a partner ship Fruit and vegetables are the most significant segment with the produc ers’ asso cia tion Naturland, with the of sales and accounted for 18% of sales in 1996. objective of obtaining more stan dard ized meat Since then this percentage has undoubtedly increased supplies to suit con sumer demand for uniform as conventional supermarkets have considerably products. Under the auspices of Bund, the German widened the range of organic produce sold. Other League for Environmental Protection and Nature important product groups are dairy and tofu products Preservation, the supermarket chains Edeka and (16% of sales in 1996), bread and bakery products Tegut also entered the organic meat sector in 1999. It (14%) and baby food. is expected that the exten sion of the EU regu la tion on organic food to animal prod ucts, which took place in Imports and exports June 1999, will fur ther stimu late pro duc tion and trade in organic meat. Although domestic organic produc tion has grown dramati cally during the last decade, exports remain Dairy products small, with some exceptions like the baby food of which Hipp is a large exporter. Vege ta bles and even Dairy prod ucts are impor tant to both conven tional wheat and other cereals have recently been exported. and special ized trade chan nels, and make up about Ger many remains, how ever, by far the largest 18% of all food prod ucts sold in the country. A large importer in Europe, and imports a wide assort ment of volume of organic milk is pro duced domes ti cally, and organic prod ucts. In table 8.3, the typical dis tri bu tion, apart from the typical cheeses from Den mark, France processing and packaging mar gins have been and the Neth er lands, the German dairy market offers deducted from the retail value of each organic food no real oppor tu ni ties for organic imports. The leading cate gory and an estimate has been made of the organic dairies are Andechser Molkerei Scheitz per centage level of imports (column H) in order to GmbH in Andechs and Molkerei Söbbeke in deduce an approximate import value per product Gronau-Epe. group (column G).

Retail sales Overall, imports account for an esti mated 38% of the value of raw mate rials for the German organic market Ger many has about 82 mil lion inhabi tants and total (table 8.3, bottom of column H), equiva lent to about retail food sales in 1997 amounted to approxi mately DM 307 mil lion (bottom of column G), or about 10% DM 300 billion. Organic food accounts for an of total sales at retail level. About 44% (valued at estimated 1.2% of the market, or about DM 3.6 about DM 135 mil lion) of these imports are fruit and bil lion. Ger many is the second largest organic market vege table prod ucts – of which DM 93 mil lion in fresh CHAPTER 8 – GERMANY 179

Table 8.3 Germany: sales of organic foods, by product group (in millions of deutsche mark)

Distribution Processing/packaging Imports of raw Product group Sales at retail level margins: 45-60% margins materials A B C D E F G H Value % Value Value % Value % 1 Bread and bakery 515 14 289 58 20 3 5 2 Dairy, tofu products; eggs 589 16 327 262 80 52 20 3 Fruits and vegetables 662 18 294 206 70 93 45 4 Meat, sausages, snacks 110 3 55 41 75 0 1 5 Wholegrain, seeds, nuts Wholegrain 110 3 55 28 50 3 10 Seeds 37 1 18 9 50 9 100 Nuts 74 2 37 22 60 22 100 6 Pasta, dried fruit, cereals, muesli Pasta 74 2 37 11 30 9 80 Dried fruit 74 2 37 22 60 21 95 Cereals, muesli 110 3 55 28 50 8 30 7 Bread spreads, honey, nut butter Bread spreads 37 1 18 6 30 2 30 Jam, fruit spreads 37 1 18 6 30 5 90 Honey 37 1 18 7 40 7 90 Nut butter 74 2 37 11 30 10 8 Spices, oils, fats Soups, cans, convenience foods 129 3.5 64 19 30 12 60 Spices 18 0.5 9 3 30 2 90 Oils 37 1 18 6 30 5 95 9 Sweets, biscuits, pudding Sweets 37 1 18 4 20 3 80 Chocolate 37 1 18 4 20 4 100 Biscuits 37 1 18 4 20 1 15 Sweeteners, baking ingredients 37 1 18 6 30 4 80 10 Tea, coffee, cocoa Tea 74 2 37 11 30 10 90 Coffee, cocoa 74 2 37 11 30 10 95 11 Drinks Fruit, vegetable juices 74 2 37 11 30 6 50 Alcoholic drinks 110 3 55 11 20 7 60 12 Non-food products: body care, etc. 13 Total 3 200 100 1 628 804 49 307 38 Baby food 400 - - - - - TOTAL 3 600 - - - - -

Source: Trade estimates. A Main categories at Naturkostshops (1-12). C % of total sales of organic products (DM 3,200 million). D Estimated average distribution margin of retailers and wholesalers: 50% (from a range of 45% -60%) of sales. E Estimated value of raw materials before processing and packaging. F E as percentage of sales to wholesalers. G Approximate import value per product group. H Estimated percentage level of imports. fruits and vege ta bles, DM 21 mil lion in dried fruits, are esti mated at DM 32 mil lion, which seems rather DM 12 mil lion in vege ta bles for can ning and con ven- high and is plausible only if it includes dried fruit ience foods (mostly toma toes), DM 9 mil lion in fruit mix tures and nuts for use in cakes, muesli, choco late, juices and prepa ra tions, and dairy prod ucts (e.g. fruit biscuits and other prod ucts. Imports of organic tea, yoghurts), jams and fruit spreads. Imports of nuts and coffee and cocoa (util ized mainly in the pro duc tion of nut butter (peanut and almond spreads and the like) choco late), typically from devel oping coun tries, 180 CHAPTER 8 – GERMANY amount to about DM 24 mil lion. About half of these Mühle, Georg Rösner and Übelhör but proces sors imports are mar keted with the Trans Fair seal in con- also import direct. Imported oils, like palm oil, are the ven tional gro cery out lets and the other half in natural main ingre di ents for organic mar ga rine, which is pro- food shops by com pa nies like Rapunzel, Lebens - duced by the margerine facto ries Münster land and baum, Allos and others. Imports of spices, oils, fats, Saarwerke. sweets, sweet eners and baking ingre di ents, of which large shares also come from devel oping coun tries, are Further infor ma tion on organic prod ucts obtained valued at about DM 14 mil lion. Sub stan tial quan ti ties from devel oping coun tries is pro vided fur ther below are imported by indus trial sup pliers like Care, Davert in the sec tion on market char ac ter is tics.

Market characteristics

Consumer categories q 27% came from an alternative environment (2% of the overall population). The key influ ences on food purchasing by German con sumers are con ven ience, health and enjoy ment. q 14% came from a hedonistic environment (12% How ever, these and other influ ences are often of the overall population). con tra dic tory. For instance, health cannot easily be obtained by con ven ience, demand for the best pos sible q 6% came from a conservative environment (8% quality is not com patible with demand for low prices, of the overall population). and the keen interest in exotic foods (from dis tant pro ducing coun tries) con flicts with the growing interest q 9% came from all other backgrounds (68% of in and the redis covery of locally grown pro duce. the total population).

Con sumers in the 1990s have become increas ingly According to the Sinus Institut, at least 77% of the multi di men sional and can no longer be defined cus tomers of natural food stores come from the according to socio-economic cri teria alone. Typical higher and middle social classes. organic con sumers used to be char ac ter ized as having higher than average edu ca tional back grounds but not Other studies con clude that the organic food neces sarily higher incomes (many students buy customer more often than not has a higher level of organic food), belonging to small fami lies, and so on. edu ca tion, but not nec es sarily a higher income. Data Market research by Germany’s largest consumer on age and family size are often con tra dic tory. research organiza tion GfK has shown that the Ger mans of today often simulta ne ously dis play The ever more com plex cate go ri za tion of con sumers appar ently con tra dic tory behav iour in their food requires a shift from the more tradi tional focus on con sump tion: their pref er ences and actions can vary consumer behav iour to a much more finely tuned not only in the long term but even within the day. For view of the con sum ers’ dis po si tions, state of mind, example, it would not seem absurd for an indi vidual desires and expe ri ences. consumer to have a healthy breakfast with muesli, yoghurt and fruit, a fast- food lunch, and a cele bra tory In a market study carried out in 1996 by CMA (the dinner with lob ster and cham pagne. German Mar keting Agency for Agrarian Prod ucts) and Rewe, one of Germany’s largest food retailers, In a survey in 1991, the Sinus Institut für 74% of organic buyers claimed that health Leben swelt for schung catego rized natural food store con sid era tions were the key influ ence on pur chasing. cus tomers according to socio-economic cri teria and The other most impor tant rea sons were making a values as fol lows: personal contri bu tion towards improving the envi ron ment (51%), better nutri tional value (29%) q 44% came from a technocratic-liberal and better taste (20%). The survey also found that environment. This group accounts for 10% of the 56% of organic consumers were ready to pay an overall population. organic pre mium of more than 15%, 33% a pre mium CHAPTER 8 – GERMANY 181 of less than 15%, and 11% were not pre pared to pay growth of the German organic market. However, the any pre mium. A more recent survey shows a dif ferent rule limiting the use of the generic logo only in pic ture: only 20% of all con sumers are willing to pay combination with the logo of one of the AGÖL any pre mium on organic foods. member associations is considered by many to be a restricting factor. Consumer confusion about organic products Purchasing organic foods: the criteria used It is a matter of con tro versy whether con sumers really under stand what organic prod ucts are. The German con sumers con sider a wide variety of quali- CMA-Rewe market study revealed that 95% of all ties and other cri teria, rightly or wrongly, in deciding German fami lies claim to know what organic whether or not to purchase organic foods. They agri cul ture is and that organic prod ucts are pur chased include the fol lowing: fresh ness, espe cially of fruits by no less than two- thirds of them. Half of these and vege ta bles; tasti ness; food safety (e.g. absence of pur chasers buy at least once a week. About 32% of all contami nants); organic guaran tees; buying con ven- fami lies never buy organic prod ucts. The knowl edge ience; product conven ience; external appear ance; level would sug gest that the market share of organic con tri bu tion to health; product image in rela tion to prod ucts should be much higher than the current the consumer’s values and life style; appearance of estimated 1.2% share of total gro cery sales. It the point of sale; nutri tional value; ‘nat ura lness’; empha sizes the fact that pas sive con scious ness of the whole- food quality; absence of geneti cally modi fied need to preserve the environ ment is not translated organ isms (GMOs); absence of addi tives; absence of into the action of buying more environ men tally aller gens; origin of the product and the trans par ency friendly food stuffs. Around 6% of German adults are of its journey from field to shelf; quality man age- ‘green’ voters but they do not actively live a ‘green’ ment; animal- friendly hus bandry; eco logical packing life. In many people’s minds ‘bu ying organic food’ and logis tics; social impact (e.g. fair trade cri teria). seems to mean buying, for example, the occasional loaf of organic bread, a bag of organic car rots, onions Three critical aspects have a particu larly strong or pota toes, a bottle of organic milk or a jar of organic impact on organic food pur chasing in Ger many. baby food. Authen ticity and confi dence in source. In the Even the organically com mitted consumers eat far CMA-Rewe study referred to ear lier, 40% of the less organi cally than they think they do. In a survey of respon dents who did not buy organic foods cited devoted natural food consumers Brom bacher and doubts about their authen ticity as the main reason for Hamm found that, while these cus tomers esti mated non-purchase. Because people are unable to the organic share of their food spending at 75% or dis tin guish organic prod ucts from non- organic ones, more, the real figure was only about 40%. In 1998 they tend to trust farm shops and weekly farmers’ many hard- core natural food con sumers, and of mar kets more than other points of sale, though the course many more con ven tional food purchasers, pro duce they buy there may not even be organic. They were unaware of the EU regu la tion on organic foods often do not realize that cer ti fied organic produce is and were com pletely con fused by the numerous available from other shops and, to a growing extent, ‘nat ural food’ and ‘organic’ labels and logos from super mar kets. Major retailers such as appearing on the market. Tengel mann, Rewe, Edeka, Metro and Globus are gradu ally step ping up their cam paigns but the results The generic bio-label have not been spec tacular to date. The smaller retailer Tegut (Hawege) has been more successful and its After almost 10 years of prepara tions, AGÖL and organic sales account for pos sibly as much as 3.5% of CMA jointly launched a long due German generic its turn over. It is esti mated that a high pro por tion of the bio- label in early 1999. The label can be used on all organic purchases in conven tional supermar kets is prod ucts, domestic or imported, which are pro duced attrib ut able to con sumers whose main pri ority is, not in accordance with AGÖL standards. A joint specifi cally to eat organi cally, but to buy food which licensing com pany, Ökop rüfzeichen GmbH – also they per ceive to be fresh, tasty, nutri tious, con ven ient, known as ÖPZ GmbH – was established and funds environ men tally friendly, not too expen sive and were made avail able for mar keting pur poses. The which, by chance, also happens to be of cer ti fied scheme is expected to contribute considerably to the organic quality. 182 CHAPTER 8 – GERMANY

Fresh ness and the need for rapid turn over. The more con ven tional brands, typically at least DM 30 organic food enters main stream chan nels, the greater mil lion, needs to be set aside to pro mote organic the appli ca bility of the cri teria customers gener ally foods. A generic mar keting campaign sup ported reserve for con ven tional food. Fresh ness is a pri mary jointly by all market par tici pants would seem to be require ment, espe cially for per ish ables. Direct sales by the best way for ward. farmers do guar antee abso lute fresh ness, as they offer fruits and vegeta bles har vested only a few hours Fair trade and its relationship with before; how ever, this sales method reaches only a very organics small per centage of the poten tial organic con sumers in Germany. The logis tical costs of sup plying regular Fair traded prod ucts are widely recog nized in quan ti ties of fresh pro duce to natural food and Reform Ger many. The country has an impor tant niche market shops are high and have been a major obstacle to sales for a growing number of product groups like coffee, growth. If deliv eries are too slow or too infre quent, tea, cocoa, honey and bananas. The pri mary con cern shops can offer only a small range of prod ucts, which of the fair trade move ment is with the social and often are not fresh enough and have to be thrown away. economic situa tion of farmers and producers in the It is esti mated that, in order to offer a good range of South rather than with organic farming as an ideal, but fresh pro duce, a German food shop needs to have the two move ments are tending to con verge, as both annual sales of more than DM 1.5 mil lion. Only about contribute to genuine sus tain ability. Devel op ment 20% of natural food and Reform shops have which proves sustain able over genera tions is mod ern ized and improved their turn over of fresh com pel lingly linked to the use of organic methods of organic pro duce suf fi ciently to meet this require ment. culti va tion, proc essing and produc tion. Because of their tradi tional experi ence, producers often have a Rapid turn over is critical for suc cess. Major mul tiple sound basis for such con ver sion, it leads to addi tional super mar kets have effi cient logistic sys tems and are employ ment and, most sig nifi cantly, cer ti fied organic in a posi tion to dis tribute organic fresh food along side pro duc tion raises the market poten tial of the prod ucts. con ven tional produce, provided the mer chan dise is sold quickly. This has been the major problem for In Ger many, three main organi za tions are involved in German super mar kets: because fresh pro duce moves the fair trade move ment. off the shelves too slowly, con sumers have per ceived organic quality as old. It is pre cisely because car rots, Fair Trade eV. This is the reg is tered asso cia tion for onions and pota toes have a longer shelf life that these the pro mo tion of fair ness in world trade. It is a organic prod ucts often attain a double- digit non- profit organi za tion, funded largely by a number per centage share in total sales. A higher turn over of of churches and other bodies like Bread for the World the whole range of fresh foods including milk and and Mise rior. Its main purpose is to help dairy prod ucts, bread and even meat and sau sages is dis ad van taged producers improve their prod ucts to essen tial. The quality of the pro duce depends on the meet the strin gent quality requirements of the amounts sold, but these in turn depend on the quality Euro pean market through research, product and per ceived by the con sumer. project devel op ment. Public rela tions, and the initia tion and sup port of campaigns, such as for Percep tion and impulse. A con sumer’s deci sion to example against child labour, are also impor tant pur chase a par ticular food product in the super market, activi ties of Fair Trade. which stocks 8,000 or more food items, is made against the background of the above list of quality Anyone with a social com mit ment can apply for Fair require ments. How ever, he or she is basi cally looking Trade assis tance in researching the chances of a product to buy some good food, pos sibly organic and not too in the European market and devel oping it accord ingly. expen sive. The actual act of buying is made largely on About 25% of the prod ucts Fair Trade develops are impulse based on the cus tomer’s existing per cep tions. cer ti fied organic when the organi za tion starts handling them, and 85% are cer ti fied organic when Fair Trade’s Clear iden ti fi ca tion, good merchan dising and job is fin ished and the product is handed over to Gepa commu ni ca tion are the key to pro moting any food GmbH for mar keting (see below). product, whether organic or not. It has been suggested that for organic foods to make a real Fair Trade does not work exclusively with small break through in con ven tional super mar kets, the same pro ducers. Its prin ci ples are being extended to sec tors amount of money spent on launching the major pre vi ously not touched by it, including large pri vate CHAPTER 8 – GERMANY 183 con cerns. Fair Trade can give its ready- to- market com prises nuts and dried fruit, sugar and cocoa, wine, prod ucts to any trader, but to date common purpose cereals and spices. Spices, chocolate and sweets are and a his torical close ness as well as the fact that they the fastest growing product cate go ries. Gepa’s share the same prem ises has resulted in Fair Trade sources include almost every Latin American country handing over all its prod ucts to Gepa. as well as quite a few African and Asian coun tries.

TransFair . This is an independent non-profit The market pene tra tion of key Trans Fair prod ucts has organiza tion which issues a licence to use the been sig nifi cant. Trans Fair coffee, intro duced into the Trans Fair seal, con trols the con di tions of fair trade, and German market in spring 1993, is now sold in about works in edu ca tion, public relations and the 25,000 supermar kets and its market share, which dis semi na tion of infor ma tion. Together with 15 continues to rise, is currently 4%. Consumers can national Trans Fair and Max Havelaar sister choose from over 50 varie ties of coffee sup plied by organi za tions, it is part of FLO Inter na tional, the Fair more than 30 Trans Fair licen sees. Tea was intro duced Trade Label ling Organi za tion. FLO has its sec re tariat at the end of 1994 with the par tici pa tion of nearly all in Ger many and car ries out a dia logue with IFOAM on German tea traders. Within one year, Trans Fair black issues like joint cer ti fi ca tion. FLO’s motto is: fair tea had gained a market share of about 3%. First wages rather than chari table dona tions. pre sented at the Inter na tional Sweets and Biscuits Fair in Cologne at the begin ning of 1996, Trans Fair All prod ucts mar keted by Gepa carry the Trans Fair cocoa and choco late are now avail able in more then label. So far the Trans Fair label can be obtained for 10,000 shops in the country. Honey was intro duced in coffee, tea, cocoa and chocolate, honey, and fresh Sep tember 1996, and fresh bananas were launched in bananas. A growing number of prod ucts thou sands of super mar kets in early 1998. Trans Fair is simul ta ne ously carry both the Trans fair label and an readying other major product catego ries for market organic label. Gepa cooper ates closely with two entry. Its mar keting efforts have been so successful German organic farm ers’ asso cia tions, Natur land and that between 1993 and 1996, its annual sales grew Demeter, in organic cer ti fi ca tion. At present about from just over DM 50 mil lion to DM 100 mil lion. 25% of Trans Fair coffee, 60% of its tea and 50% of its bananas are cer ti fied organic. Very little cocoa is Bananas, a case of col labo ra tion between fair trade, cer ti fied organic. Gepa aims at 100% organic for each organics and conven tional dis tri bu tion. The banana project; about 65% of its food prod ucts are cer ti fied story illustrates TransFair’s rela tion ship with organic organic at any given moment. farming. For sev eral years, a German banana grower in Costa Rica had experi mented with using pes ti cides Gepa GmbH . A lim ited com pany, this is the main at a much lower level than was customary in the import and mar keting organi za tion in Ger many for fair banana plan ta tions owned by the big multi na tionals. trade prod ucts. It has pro fes sion al ized the move ment He replaced her bi cides completely and cut down on and today sup plies not only non-profit parish sales insec ti cides and fun gi cides but could not abolish them out lets but also any mar keting channel that seems entirely without losing his crop. He treated his suit able for the fair trade aim. Other organi za tions have labourers well and tried to find a way of mar keting to entered the fair trade field as well and fair trade gain a pre mium for his pro duce. This was very dif fi cult products can now be found in many different retail as his bananas could not be offi cially sold as organic. out lets, including super- and hyper mar kets. How ever, he got Trans Fair involved and he was soon able to receive a pre mium and find stable cus tomers Gepa’s sales to the con ven tional food retail sector now among main stream German food dis tribu tors. account for 15% of its total sales; the sector is Gepa’s fastest growing market. It con tinues to sell 63% of its In another instance, Rewe AG, a German food products to activist groups and One World Shops. mul tiple with some 7,000 out lets, wanted Trans Fair Some prod ucts are exported to similar organi za tions in organic bananas from the Dominican Republic to be other European coun tries. (The European fair trade mar keted under its organic pri vate label Füll horn. asso cia tions coop erate in the European Fair Trade Trans Fair inspected pro duc tion and trade con di tions Asso cia tion.) Gepa’s annual sales amount to DM 55 in the Republic and issued its licence. Today, organic mil lion. Of this 90% is attrib ut able to food, of which bananas from the Republic are being imported by almost 60% is coffee, 8% tea, 7% chocolate and Tradin of the Neth er lands, a com pany that calls itself sweets, 6% honey and nut spreads; the remainder the “No. 1 Im porter of Organic Bananas since 1988”. 184 CHAPTER 8 – GERMANY

Market segmentation which are con tinu ously involved in price wars. The remaining one- third comprises the classic As has been said, the value of the German market for supermar kets and other sales out lets, including organic foods is esti mated at approximately DM 3.6 tra di tional neigh bour hood stores, which suffer from bil lion, or 1.2% of the overall food retail market. Table the fierce price com pe ti tion. Their supply system and 8.4 shows a breakdown of the organic trade by main rele vance for organic foods and especially imports type of retail outlet. The catering and export seg ments are dis cussed in the sec tion on dis tri bu tion chan nels, are not cov ered by the table. fur ther below.

The largest seg ment is the organ ized food retail sector Direct sales, mainly by farmers, make up 20% of all (Lebensmitteleinzel-handel , LEH, in German) which organic sales. Catering is becoming impor tant, has overall annual sales of about DM 230 bil lion, of especially in the region of Hessen where the local which about 78% or DM 180 billion, is real ized by gov ern ment has obliged official insti tu tions like the seven largest chains. Two- thirds of the LEH hos pi tals, uni ver si ties and the admini stra tion to offer con sist of dis count stores and hyper mar kets, each of at least one organic menu. which has a market share of almost one- third and

Table 8.4 Germany: turnover of the organic trade, by main distribution channel, 1997

No. of outlets % share in total Trade channel carrying organics Estimated turnover organic market (estimates) (DM ’000 000 ) TOTAL 3 600 100 of which: Natural food shops 1 700 1 200 35 Mainstream supermarkets, hypermarkets, discount shops, drugstores 3 000-4 000 800 24 Direct sales, mainly by farmers 750 20 Reformhäuser (Reform shops) 2 000 300 9 Organic bakeries 400-500 250 8 Organic butchers 80 60 2 Sources: Lebensmittelzeitung 30 (24 July 1998) and trade sources.

Market requirements

This sec tion describes the main product groups Euro pean produce is available; also fruit for imported into Germany. The major focus is on proc essing into juices, purées, concen trates, and dried prod ucts which are not avail able to German or frozen prod ucts. importers from European sources and/or can be supplied by devel oping countries. There are good q Dried fruits and nuts, and by-products. import opportu ni ties in Germany, subject to the limi ta tions described in various sections in this q Vegetables in winter and spring, when no fresh chapter, espe cially for the fol lowing prod ucts: European produce is available. q Grains and cereals like durum wheat, rice, q Herbs, spices and medicinal plants, essential oils. millet, buckwheat, amaranth, quinoa. q Fruit juices and fruit preparations, not only of q Tropical and subtropical fruits like citrus and tropical and subtropical fruit, but also of berries and banana and, in much smaller quan ti ties, avocado, other fruits which grow in Germany but of which pine apple, mango, etc.; fruit like apples, pears from the production and collection are labour intensive and southern hemisphere in spring, when no fresh therefore expensive. CHAPTER 8 – GERMANY 185

q Wines especially from France, Italy and Spain q Honey: demand for imported organic honey is which taste differently from the much appreciated likely to increase substantially when the EU regulation German organic (white) wines. on certification is extended to animal products, including honey. Allos, the dominant importer of q Oleaginous seeds such as sesame, sunflower, honey for the natural food trade, has its own private safflower, pumpkin. standards for organic honey. TransFair has not placed much emphasis on the organic certification of this q Oils and fats for table oil and processing, such as product but this is likely to change. palm oil for margarine. q Tea, coffee, cocoa and by-products. q Cane sugar and other natural sweeteners.

Importers’ requirements

It is no longer as easy as it was in the past three comply, not only with the compul sory European dec ades to export any organic product of any quality regula tion, but also with spe cific pri vate standards. and at any price to Ger many. The exis tence of many To enter the German organic market it is essen tial to organic items which are typi cally imported does not assess one’s assets, par ticu larly one’s USP (unique imply by any means that automatic entry for these selling propo si tion), i.e. “What can I offer better or prod ucts is guar an teed. The German organic market cheaper than others? I can only be successful in the is charac ter ized by heavy compe ti tion and has long run in fields where I know I can com pete.” become extremely demanding in terms of quality/price ratios, quan tity and con ti nuity of supply, The search for a compe tent importer- partner is logis tics, serv ices and com mu ni ca tion. quin tes sen tial. The partner should be a successful com pany, which is effi cient, reli able and sol vent, and Prior to seeking market entry, the exporter should which takes a long-term view rather than that of carry out thor ough market research, obtain a basic making money quickly. The partner should also have knowl edge of the German organic market and its suf fi cient under standing of the spe cific situa tions and require ments, and understand that it may be prob lems facing suppliers in devel oping coun tries. peri odi cally satu rated, at least for some products. Assis tance in finding and con tacting a partner can be This will help to pre vent unnec es sary sought through Pro trade’s Green Trade Net. If fur ther dis il lu sion ment. The exporters’ organic cer ti fi ca tion invest ment to develop the project or the product is (see sec tion on certi fi ca tion, fur ther below) must be needed, Pro trade or Fair Trade eV can be contacted water tight and exporters must ensure that they for assis tance.

Competition and prices

This sec tion describes the critical role played by The food market tends to reflect upward and com pe ti tion and pricing in the organic food market in down ward trends in the general eco nomic situa tion Ger many and the way in which pricing policy affects and, as time goes on, households are spending future pros pects for the trade. pro por tion ally less of their budgets on food. Hard and soft dis count store groups have been con stantly For organic prod ucts, the highest growth rate occurs growing and eroding the market shares of the other in the mainstream supermarket channel which is super- and hyper mar kets. Compe ti tion is so fierce, domi nated by fierce com pe ti tion and price pres sure. that large food dis tribu tors are happy when their net Although the natural food shops, direct on- farm sales profits exceed 1% of their sales. Organic food has to and the catering industry con tinue to grow, the main develop within this extremely dif fi cult eco nomic expan sion of organic sales is in the mainstream food envi ron ment; sales have been affected by the market, which is domi nated by price com pe ti tion. price- cutting tech niques imposed by hard dis counters 186 CHAPTER 8 – GERMANY like Aldi and Lidl on the entire German main stream sub si dies for farmers. In the last 10 years distri bu tion. con ven tional grain prices in Ger many have fallen to 40% of their 1988 price levels. Pricing, mer chan dising and com mu ni ca tion will be deci sive in any effort by super mar kets to suc ceed in Over supply causes price col lapse. Prices, not only of mar keting organic food. To date the major strategy of con ven tional grain since the late 1980s, but also of the super- and hypermarket mul ti ples in dealing with organic grain (par ticu larly wheat) in the 1990s, have organic pro duce has often been to put a higher margin col lapsed to some times less than 50% of their former on organic food by com parison with regular food. levels. The reason for this is that the push of organic They saw a chance to make more money by selling grain pro duc tion grew faster during this time than the small quan ti ties of organic food in niche sec tors that pull of organic demand. According to ZMP, the did not seem to be driven as much by com pe ti tion. Central Price Infor ma tion Office for Agri cul ture, This still applies to most slow- selling organic dry For estry and the Food Industry, the prices of organic food ranges in super mar kets. How ever, the rye, barley, oats and spelt fell by 30% - 40% in the expanding volume of fresh organic prod ucts entering four years to 1998. The drop for organic wheat was supermar kets is changing pricing policy. As stated less spec tacular but was nevertheless con sid er able. In earlier, a store has to sell con sid er able quan ti ties of all cases the drop during this period was even steeper fresh pro duce quickly in order to sell it at all, as fresh than that for con ven tional cereals. Converting to pro duce ages rap idly and then becomes impos sible to organic produc tion was subsi dized by EU and, sell. To create the nec es sary demand, pricing must espe cially in the former East Ger many, many larger also be attrac tive. In addition, there has to be a farms turned organic. Cheap imports from other coherent assort ment, well mer chan dised and clearly former Eastern block coun tries, like Romania, the identi fi able, and with more than average efforts to Czech Republic, Poland and Ukraine, often had a com mu ni cate with the cus tomer. The key mes sage is dev as tating effect. therefore that to capture a larger share of the main stream gro cery channel, the organic industry has A more rele vant example for devel oping coun tries of to become more competi tive, efficient and able to the effects of over supply is that of organic vanilla. deliver the best quali ties at lower prices. Until the mid 1990s Mada gascar was the sole sup plier and prices were high. To take advan tage of the New chal lenges and oppor tu ni ties for the natural food demand Tonga, Indo nesia, Mexico and other coun tries shops. As the market expands, there is a spe cialist started to produce organic vanilla. Very quickly an market oppor tu nity for smaller quan ti ties of upgraded under- supply situa tion turned into over supply and organic prod ucts which can sell at higher prices. This prices fell to about half their former level. strategy is being adopted by most natural food shops, and the more suc cessful and bigger out lets are able to The posi tive side of this devel op ment is, of course, posi tion them selves as spe cialist retailers with a wider the move ment of many organic prod ucts away from range of organic products, sup ported by compe tent their former unre al is ti cally high price levels. service and advice. The major chal lenge for them is to develop more effi cient and less costly pro duc tion and ZMP pro vides cur rent prices for some basic German dis tri bu tion sys tems. How ever, the natural food trade organic agri cul tural prod ucts. Con tact details can be as a whole is still highly frag mented at all levels and, found in annex I. even though mar gins are high, very few par tici pants make enough profit to pro vide for future devel op ment. Balancing increasing supply with demand requires Bankruptcy rates have been high and mergers and well- adapted sales chan nels. When supply exceeds acquisi tions will continue until efficient and viable demand, as has been the case for organic grain, milk struc tures are estab lished. and vanilla in Germany, prices fall. When demand out grows supply, the price tol er ance rises. With The tra di tion ally fragmented German agri cul tural growth in real demand (not what people say but what system and its problems in coping with freer trade. they do and buy) for organic produce, distri bu tion When in the late 1980s the system that protected EEC sys tems become more effi cient and farmers are able agriculture became too expensive to support, and to receive higher organic price premiums. Without with GATT and WTO pursuing the policy of free the par tici pa tion of the main stream retail food chains, trade and globaliza tion, pres sure was put on the the for mi dable growth of German organic pro duc tion Euro pean Union to open its bor ders and to reduce can never be absorbed. It is expected that the CHAPTER 8 – GERMANY 187 situa tions of over supply described above will appro priate mar keting structures as well as a single dis ap pear in the middle to long term. organic seal in Ger many, and change is taking place at a snail’s space. These simple truths had not been suf fi ciently understood by many organic pioneers in Ger many. Consid ering organic food as a service product Supermarket mul ti ples were seen as a threat rather dis rupts organic pricing. The atti tude of con ven tional than an oppor tu nity by small farmers. To market super market out lets towards selling organic prod ucts organic food to super mar kets was con sid ered by the is critical. Some impor tant chains have damaged organic pio neers to be a sin against their vision of a organic price struc tures by car rying organic foods as better world in gen eral and of organic agri cul ture in service prod ucts on which they do not make any particular. Their view was to keep the organic profit. This makes it extremely dif fi cult to raise prices move ment small but beautiful. This atti tude at a later stage and can there fore cause lasting unavoid ably slowed down all efforts to estab lish prob lems for the trade.

Organic certification and food laws and regulations8

EU Regulation 2092/91 In each of the 16 federal States, a dele gated com pe tent authority is responsible for supervising The most impor tant regu la tion for the organic market the activi ties of cer ti fi ca tion bodies as well as is the EU Regu la tion 2092/91 on organic farming and authorizing imports from third coun tries (i.e. its amend ments. This regu la tion applies to the whole non- members of the Euro pean Union). (One fed eral of the Euro pean Union and is described in Part I of State has as many as four dele gated authori ties.) A this book. working group named Länder ar be its ge mein schaft der Öko-Kontrollbehörden (LÖK) coor di nates the Organic certification for the German activi ties of all com pe tent autho rities. market As indicated ear lier, the stan dards required by In Germany many cer ti fying bodies (pri vate) are German organic importers are fre quently higher than accred ited according to the EU regu la tion. Sev eral of those of the basic EU regu la tion. It is there fore often these are active in the cer ti fi ca tion of organic imports neces sary for imports from third countries to be and the sup plying pro duc tion units. They also pro vide inspected by a local German con trol or cer ti fying assistance and supervi sion for set ting up national body even if they have obtained equiva lency at the certi fying bodies in coun tries out side the European EU level. Union, especially in devel oping coun tries. The most active German cer ti fying organi za tions abroad are Harmonization of EU food laws BCS Öko-Garantie GmbH, Ecocert Interna tional, Natur land Verband, Lacon and INAC (Inter na tional Most food laws and regu la tions are being har mo- Nutri tion and Agri cul ture Cer ti fi ca tion). nized in the European Union. How ever, in some cases per mis sible residue levels (e.g. in baby food), The cer ti fying bodies are organ ized in two groups: con tami nant or pol lutant levels (e.g. aflatoxins) or Kon ferenz der Kon troll stellen (Con fer ence of micro-organic counts (e.g. of micro-organisms in Certi fying Bodies) which is currently under the spices) are set dif fer ently in indi vidual EU coun tries. aus pices of GfR, and the Arbeits ge mein schaft der This is such a wide field that infor ma tion rele vant to Kontroll stellen (Working Group of Cer ti fying spe cific prod ucts should be obtained from com pe tent Bodies). The chairmanship of these Groups rotates com pa nies or con sult ants. Labor Dr Wiertz, an ana- among their member certifying bodies. lytical labo ra tory for organic foods, is expe ri enced in

8 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 CHAPTER 8 – GERMANY residue detec tion even at the low levels needed for non- organic product and makes the use of the baby food. cer ti fied ingre dient com pul sory.

The list of per mitted non-organic ingredi ents is Permissible agricultural ingredients of con tinu ously updated. The list dated 31 July 1998 is non-organic origin 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 agricul tural ingredi ents of non- organic origin may Since the EU regu la tion on cer ti fied pro duc tion has some times be tem po rarily imported into the German now been extended to animal prod ucts, it will cover organic sector if suffi cient quanti ties of these organic honey as well. This product plays a ingredi ents in cer ti fied organic forms are not sig nifi cant role in the natural food sector and has been avail able. When enough supplies of a cer ti fied one of three items that does not have to be organic, organic ingredient become available, the water and salt being the other two. Honey has always Bun de san stalt für Landwirtschaft und Ernährung is been par ticu larly impor tant because of its whole-food informed; it then with draws the allowance for the quali ties and its use as a sub sti tute for sugar.

Distribution channels

The major suppliers of organic foods to the retail intro duced the generic organic Le Gourmet brand. trade in Ger many are whole salers/packers. The larger com pa nies tend to import direct from organic pro duc- Dennree Versorgungs GmbH, with a reported tion units abroad; others may obtain their sup plies turn over of DM 130 mil lion, is mainly active in fresh from special ized importers. Major organic food pro duce: dairy, fruits and vege ta bles. manu fac turers are often directly involved in organic projects abroad for the supply of raw mate rials, but Both Dennree and Rapunzel supply special ized many manu fac turers obtain their imported sup plies chan nels, as do similar com pa nies like Byodo Natur kost from importers and spe cial ized proc es sors. The latter GmbH (dry prod ucts), and Bio garten Han dels GmbH com pa nies pro vide requirements according to the and its sub sidiary Arche Natur pro dukte GmbH. manu fac tur ers’ speci fi ca tions and ensure con ti nuity of supply. Bio- Zentrale GmbH, with a turn over of DM 73 million in 1998 (partly owned by the Cologne-based The major players in the dis tri bu tion of organic foods Delvena Lebens mit telk ontor GmbH, an offshoot of in the German market are described below. the sugar company Pfeifer & Langen) owns the organic brand Gut & Gerne. The brand can be found in Traders, importers, packers, processors many super market chains in Ger many, including some and wholesalers multi ples like Rewe which have their own pri vate organic labels. Delvena also sup plies the dry organic Rapunzel Natur kost AG, with a turn over of DM 70 assortment for the pri vate label ranges Füllhorn of mil lion, is the largest importer, packer and whole saler Rewe, Grünes Land of Metro, Bio-Wertkost of Edeka of gro cery prod ucts. Its wide product assort ment and Terra Pura of Globus. Delvina is increas ingly ranges from nuts and dried fruits to cereals and mill involved in the dis tri bu tion of per ish able goods prod ucts, sugar, cocoa and choco late, pasta, tomato (including dairy prod ucts). products, oils and fats, spreads and nut butt ers, bis cuits, coffee and vanilla. It recently added frozen Alna tura Pro duk tions- und Han dels GmbH sup plies food and ice-cream lines. The Rapunzel brand is prod ucts (including fresh pro duce) carrying its named after a girl in a well- known German fairy tale. generic label Alnatura to Tegut and to Interna tion ally, Rapunzel is one of the leading DM- Drogeriemarkt. It also runs its own retail chain. com pa nies involved in organic projects in the developing world; it has sub sidi aries in Turkey and Auris Natur kost Ver triebs GmbH mar kets a range of the United States. Together with Allos, it recently organic prod ucts under the label BIO. CHAPTER 8 – GERMANY 189

Rila Feinkost-Importe GmbH & CO KG, based in As has been men tioned ear lier, con tact details for all Stemwede- Levern, puts together and sells the the com pa nies men tioned in this chapter are pro vided Zonnatura assortment, which was originally a in annex I. Neth er lands brand. How ever the range has a high pro por tion of non- organic prod ucts of Reform quality Food manufacturers (i.e. without chemical addi tives and mostly unrefined). The number of purely organic manu fac turers in Ger many is lim ited. The best known is the baby food Lehmann Natur GmbH and its partner organiza tion com pany Hipp. By making organic quality its unique Biotropic are the largest importers/packers and selling poi nt and by insisting on an organic con tent of whole salers of organic fruits and vegeta bles over 80% long before the regu la tions demanded a sup plying super mar kets. higher per centage, Claus Hipp strengthened his market leader ship for wet baby food (in jars), and Bergquell Agrar- Naturprodukte GmbH & CO KG obliged other big baby food producers like Alete supplies a large assort ment of fresh produce, (Nestlé) and Milupa (Nutricia) to follow. It is pos sible including fruits and vege ta bles, eggs, meat and that soon all of Ger many’s baby food in jars will be poultry to supermar kets and spe cial ized stores. It is organic. Hipp employs over 2,000 indi viduals, has an actively involved in proj ects in devel oping coun tries. annual turn over of more than DM 300 mil lion, and has fac to ries in Aus tria and France. Hipp is pos sibly Among the other impor tant fruit and vegetable the largest organic manu fac turer world wide and has packers and wholesalers are Natur kost Schramm, been instru mental in devel oping proj ects in coun tries Landlinie and Ernst Weber Natur kost. The like Costa Rica. last- named com pany also car ries dates, seeds, tea and juices. The baby food manu fac turer Hipp also runs a Since 1995 the baby food com pany Gerber in Costa fresh fruit and vege table pro gramme. Rica (a sub sidiary of Gerber USA, itself a sub sidiary of Novartis Swit zer land, for merly Sandoz) has been Addi tional traders, importers and packers selling to sup plied with organic bananas, not from monocul ture both special ized and mainstream retail out lets are plan ta tions, but from forest inter crop ping systems Care Natur kost GmbH & CO (grains, seeds, dried run by indigenous farmers in the Tala manca fruits), Grüner Punkt Natur kost GmbH (fruit Res er va tion. In the first years, the Reser va tion’s prepa ra tions), Georg Rösner Ver triebs GmbH (nuts, banana purée was exported exclusively to German seeds, flakes, dried fruits), Übelhör KG (cereals, baby food producers but Gerber has recently pulses, nuts, dried fruits) and Euro Bio Korn (cereals, introduced it to the American market. This project fruits, seeds, sweet eners). Gepa GmbH, described was started by Milupa, the first con ven tional baby ear lier in this chapter, imports and dis trib utes coffee, food pro ducer to launch an organic line. Even though tea, honey, choco late, nuts, rice and other prod ucts. nei ther Milupa nor Alete rely on organics as a major mar keting mes sage, they push organic ingre di ents for Landlinie Lebensmittel-Vertrieb GmbH & CO KG two major reasons. The first is that Hipp has set a markets a range of fresh products, including imports standard for consumer expectations of baby food. from developing countries, to specialized shops and The second has to do with the fact that German food supermarkets. regulation, by setting maximum levels at 10 ppb (parts per billion), in effect allows no pesticide Mühldorfer Naturkornmühle GmbH (commonly residues in baby food. From 1 January 2000 a similar known as Prima Vera) and its sister company, Ceralia regulation will be applicable to the whole of the Getreideprodukte GmbH, process, pack and trade in European Union. As detection at such low levels is a large assortment of products, in part imported from very difficult and expensive, is not possible at all for developing countries. Products include rice, millet, some pesticides and growth regulators, and demands sugar, oleaginous seeds and nuts. extensive auditing of the suppliers, it is often more convenient to go organic. Byodo Naturkost GmbH packs and trades in an assortment of products (including oils) largely Südzucker, Germany’s largest sugar group, is imported from developing countries. involved in the organic sector through its subsidiaries Candico in Belgium and Renco in the Netherlands. 190 CHAPTER 8 – GERMANY

Other major organic manu fac turers or proc es sors are deal exclusively with organic food proc essing and listed below: trading, continue to hold the lion’s share of dis tri bu tion in Ger many, although super mar kets and q Ludwig Stocker Hopfisterei GmbH, the bread other mul tiple food retailers are starting to eat away at specialist, processed 15,570 tons of cereals in 1997. It this share. These strictly organic out lets have the has an annual turnover of DM 93 million and runs advan tage of not being in direct price compe ti tion over 100 retail outlets, mostly in ‘pre-cashier’ outlets with the main stream food retailers, of being able to of supermarkets. commu ni cate the princi ples of organic farming to their cus tomers and of not depending on only a few q Döhler GmbH – deals in food ingredients, extremely powerful customer compa nies. Ide ology particularly those that are fruit based. forms an inte gral part of their product concept. They have the dis ad van tage of reaching pri marily a core q Kanne Brottrunk GmbH & CO KG – a ‘bread minority of already convinced or mili tant organic drink’ specialist. (This drink is derived from consumers. fermented old bread, hence its name.) Natural food shops (Naturkostläden) q Neumarkter Lammsbräu – produces 60,000 and organic supermarkets hectolitres of beer per year and two organic soft drinks. There are about 1,700 natural food shops in q Beutelsbacher Fruchtsaftkelterei – a juice Ger many, mostly united in the umbrella organi za tion producer. BNN (Bun des ver band Natur kost waren). They hold 35% of Ger many’s organic market, equiva lent to DM q Voelkel – a juice producer. 1.2 bil lion in sales. These out lets want to supply their main cus tomers not only basic prod ucts but also any q Lebensbaum Ulrich Walter GmbH – deals with imag in able food item in organic quality, whether it is coffee, tea, spices and herbs. a spice (for example, organic pepper in all its varie ties is required) or a con ven ience food with many q Davert Mühle – handles milling products. dif ferent ingredi ents. How ever, quite often the market can absorb only small, sometimes barely q Allos Walter Lang Imkerhof GmbH – deals with economi cally viable, quan ti ties. The larger natural fruit and amaranth products, cakes, fruit bars, etc. food stores now carry 2,000 or more items. q Bruno Fischer GmbH – a major processor of A key and recent devel op ment has been that of vegetarian products such as soy milk, vegetarian organic super mar kets. The first chain of organic burgers and sausages, and soups. supermar kets was cre ated by Götz Rehn under his Alna tura brand which, as early as 1985, formed the q Bauck Demeter Naturkost – handles cereals, basis for an organic shop-in- the- shop in the Tegut coffee, oils, spreads and specializes in biodynamic super mar kets. Alna tura first opened its own organic products. super market in the late 1980s in Mann heim and now runs a total of eight out lets in Mann heim, Karls ruhe, q Barnhouse Naturprodukte GmbH – deals with Freiburg and Darm stadt; these have a gross turn over breakfast cereals. of about DM 4 mil lion. Between 280 and 500 square metres in size, these modern stores have an q Münsterländische Margarine-Werke J. Lölf assortment of 6,800 articles (including non-food GmbH and Margarinwerk Saar – produce margarine. organic items like clothing, natural cos metics and toys) and run small res tau rants. Michael Radau’s Lebens baum, Davert Mühle and Allos have been Biogarten Natur kost Han dels GmbH has three instru mental in set ting up large organic projects in out lets, two in Osn abrück and one in Mün ster. Dieter devel oping coun tries and their brands are among the Dreher runs Tausend Körner (620 square metres) and best known in Ger many. Arkaden Natur kost (170 square metres), both in Kiel.

Specialist organic retail outlets In the whole of Germany there are now about 30 organic super mar kets, the newest of which is Basic Organic farmers and spe cialist retail outlets, which (400 square metres) in Munich, a pilot unit for a CHAPTER 8 – GERMANY 191 franchise system. Whereas some experts forecast estab lish ment and growth of natural food stores in the rapid growth to some 150-200 out lets by 2000, the 1950s and 1960s. Reform shops have a major asset in entre pre neurs men tioned here believe in more their com pe tence in health food advice. A problem for ‘organic’ growth. The choice of site, in towns with a them are their high prices. Many ill-informed popu la tion of at least 100,000, is critical for the consumers, who do not know what ‘organic’ really success of a new outlet, as are the com pe tence and means, assume that all food sold by Reform shops is moti va tion of its per sonnel. An invest ment of at least cer ti fied organic and, because they are not pre pared to DM 300,000 and a turn over of over DM 2 mil lion are pay the pre mium for pro duce in these shops, they are also needed. It is believed that the majority of then inclined to reject organic food as being too cus tomers of organic super mar kets are new organic expensive. consumers. Other specialist outlets; catering Farm shops, food boxes and other direct selling methods The other spe cialist com pa nies involved in organic food proc essing and trading in Germany include Direct sales account for about 20% of organic sales in weekly mar kets, whole food bakeries, organic Ger many (see table 8.4). A high pro por tion of these butchers, tofu and other vege tarian product makers, sales consists of direct farm sales, but during the and catering services for can teens and res tau rants. 1990s new direct selling methods have been Catering is rising in impor tance as an outlet for intro duced and have grown fast in popu larity. Food organic food, especially in the region of Hessen box or sub scrip tion sys tems (Abo- Kisten in German) where the local gov ern ment has obliged official offer consumers the possi bility of a weekly home insti tu tions such as hos pi tals, univer si ties and the delivery of a given range of prod ucts (e.g. fruit and admini stra tion to offer at least one organic menu. vege ta bles) at a set price (e.g. DM 30/delivery). There are now believed to be between 250 and 300 Major retail chains sub scrip tion sys tems for organic food boxes, which usu ally offer fruit and vege ta bles as the main product. The growth of organic farming and the shift in demand The minimum value per delivery is typi cally DM 25. for organic prod ucts from a lim ited number of mili tant The system is run by farmers or by spe cial ized or highly moti vated con sumers to a wider seg ment of organi za tions, 40 of which allow for on- line ordering the popu la tion con cerned with health and food secu rity via the Internet. The growing importance of home mat ters have made mar keting through the main stream shopping must not be underes ti mated and sales are supermarket channel logical and inevitable. This expected to grow rapidly over the next decade. channel requires much larger and more continuous supplies of uniform quality and usu ally demands Reform shops marketing extras from its suppliers. Mul ti ples are much less tolerant than the natural food stores of Tra di tional health food shops, known as Reform shops devia tions from external quality specifi ca tions, are or Reformhäuser in Ger many, have been in opera tion extremely price sen si tive, and so tightly organ ized that since 1893. The roots of the Reform Move ment lay in a from the first contact to delivery suppliers have to reac tion to the nega tive side effects of the Industrial per form to the highest stan dards in all ways. Revo lu tion, as well as in natural medi cine and the vegetarian movement. Nowa days Reform shops sell When main stream retailers first entered the organic many die tetic prod ucts or prod ucts with health claims, field, they had no real under standing of organics and but no meat or alco holic bev er ages. They have always merely put some prod ucts on the supermarket stocked organic prod ucts and the emphasis was on shelves, which often failed to sell. They failed whole food (Vollwert kost) in keeping with the motto because they had no master plan, because their staff “Keep our food as natural as pos sible.” Until the end of had not been edu cated on mat ters like the ori gins of the Second World War organic quality was the rule, the organic prod ucts, their legal status, the but then the rule became the exception, though the phi losophy and mar keting strategy behind them, and emphasis on whole food remained. Even with strong because no in- house or external exper tise was made and ongoing devel op ments during the last 10 years or avail able. The result was inade quate and badly so, the organic propor tion of sales by Reform shops merchan dised organic assort ments. Their does not yet exceed 20%. In fact, the rela tive absence con ven tional thinking on com pe ti tion, market shares, of organic food was the major reason for the easy access to many sources of supply, etc. was 192 CHAPTER 8 – GERMANY incom patible with the method of opera tion of organic Table 8.5 provides some infor ma tion on the sup pliers. The retailers were con fronted with a lack of involvement of Germany’s top 10 food retail effi cient organic sup pliers, with the excep tion of the organiza tions as well as Tegut in the distri bu tion of baby food manufac turer Hipp. They had to organic food. under stand that carrying organics can succeed only when lasting part ner ships with organic sup pliers are Rewe, Ger many’s largest food supermarket multiple built, so that new prod ucts of the right quality and in owns the pri vate organic label Füll horn (‘co rn uc opia’ suf fi cient quanti ties are made available. Moreover in Eng lish). Although the share of the Füll horn label in the prices must be such as to allow suf fi cient mar gins Rewe’s sales is less than 0.5%, this is equiva lent to a for all involved to make the whole process value of about DM 200 mil lion (com pared to a total sustain able, and the prod ucts afford able for the turn over of close to DM 40 bil lion), making Rewe one con sumer. Many existing organic sup pliers refused to of the largest distribu tors of organic prod ucts in supply supermar kets for ideo logical reasons, or Germany. Rewe takes particular care in set ting up because they were afraid to lose their existing organic pro duc tion pro grammes. As a conse quence, cus tomers. Others did a very poor job because they the Füllhorn organic fruit and vegetable sec tion is failed to understand that the requirements of the growing rap idly and is likely to make Füllhorn the con ven tional supermarket/gro cery trade are much fore most organic label. Rewe was also the first major stricter in terms of external product quality, main stream group to intro duce organic meat, which it con ti nuity of supply, logis tics and price. did in collabo ra tion with the farmers’ asso cia tion Naturland. This situa tion gradu ally changed. Tegut, a com para tively small and regional super market chain Edeka, no smaller than Rewe but still in the process with 300 out lets and overall food sales of DM 2 of building a more cen tral ized group, has just decided billion, was the first multiple really to understand to launch its own organic pri vate label nation wide. organics and rap idly became a suc cess in the late 1980s. As early as 1985 Tegut cre ated an organic Aldi, the third largest food market mul tiple and shop- in- the- shop con cept under the Alnatura brand dis count market leader, has so far carried only a few and trained and edu cated its staff on organic farming organic prod ucts. In one of the smaller regions, it has and ways of com mu ni cating the con cept to replaced con ven tional car rots with organic car rots and consumers. Tegut’s organic sales have grown is now selling over 1,000 tons of this product per year. dramati cally and are now estimated to account for 4% of its total sales. The shop- in- shop, often Metro is the largest overall retailer in Ger many, but con sid ered an organic ghetto, has been abandoned only the fourth largest in food. It owns the Makro and Tegut has set up an organic bakery. out lets, known in various coun tries around the world. Metro’s pri vate label for organics is Grünes Land (Green Land).

Table 8.5 Germany: major food retailers and their involvement in organic food sales

Organic assortment, Company Main outlets fresh Own label, dry Labels Rewe Minimal, Toom, Rewe Yes Yes Füllhorn, a/ Gut & Gerne b/ Metro Real, Extra, Metro, Kaufhof Yes Yes Grünes Land a/ Edeka Edeka, AVA Neukof, E-center, Marktkauf Yes Yes Bio-Wertkost Aldi Aldi 1 or 2 products No No Tengelmann Tengelmann, Kaiser, Grosso Yes Yes Naturkind a/ Spar Spar Various products Lidl & Schwarz Kaufland A few products Schlecker Schlecker Only baby food Dohle Group Dohle, Marktfrisch Different products Globus Globus Yes Yes Terra Pura a/ Tegut Hawege, Okay, Top Market Yes Yes Alnatura b/ Source: Trade information. a/ Own label/private label. b/ Manufacturers’ brand. CHAPTER 8 – GERMANY 193

Tengelmann is the fifth largest food mul tiple and was baum has recently been sold to Metro, the future of the first supermarket chain to launch a completely the line is uncer tain. In summer 1998 another organic pri vate label, Naturkind (child of nature). It regional supermarket mul tiple, Globus of Saar land was launched nation wide in 1993 and has been heavily and Rheinland- Pfalz launched its organic pri vate pro moted by the owner, Erivan Haub, a keen label Terra Pura with a big mar keting drive. Spe cial environ men talist. men tion should also be made of the DM Droger ie- markt, a national drug store chain with 410 out lets all Each of the top five super market mul ti ples has more over Ger many and some out lets in Aus tria, which has than DM 20 bil lion in annual food sales, but so far been selling the Alna tura organic range suc cess fully none of them has an organic share of more than 0.5%. for more than 10 years. Image has played an impor tant role up to now, but the super mar kets are expected to step up their efforts to In due course organic foods are expected to be pro mote organic prod ucts. In early 1998 the regional dis trib uted through the new sales chan nels which are super market mul tiple Kriegbaum in Baden- quickly becoming a feature of food retailing in Württemberg intro duced a line carrying its pri vate Ger many. They include gas sta tions, railway sta tions, organic label Natur zeit (nature’s time), in coop era tion cinemas and other lei sure out lets, auto mats and even with a farmers’ asso cia tion of Bioland. As Krieg - banks.

Summary and market prospects

Ger many appears to offer tre men dous oppor tu ni ties household budget will continue to decline in for organic pro ducers, both domestic and for eign, for impor tance rela tive to expen di ture on other goods. many rea sons, including the fol lowing: The key words used to describe food trends for the q Its population of 82 million is environmentally year 2000 are con ven ience, health and enjoy ment. aware. Ger many has a long tra di tion in natural medi cine, cure resorts and health food. The health-conscious q 6% of its electorate are green voters. German con sumer increas ingly relates health to food secu rity and a healthy envi ron ment, a sce nario within q Germany is the cradle of organic agriculture and which organic food obviously has very strong hosts the General Secretariat of IFOAM as well as argu ments. The organic food sector is discov ering BIOFACH, the biggest organic trade show in the con ven ience foods, including frozen foods and ready world. meals, opening up sales far beyond the people who have tradi tion ally been mainly con cerned with q The German import promotion organization buying “whole food” (Vollwert in German). The Protrade/GTZ runs the GreenTradeNet Web site, a future seems to hold out prom ising pros pects for the formidable tool linking organic farmers in organic food trade. None the less many people feel developing countries with the German market. that there is, at the same time, reason for serious con cern. The German organic market is second in size only to that of the United States. In 1998 it had about 8,200 q Jobs have outstripped environmental awareness organic farms (1.6% of all farms) and over 400,000 as primary preoccupations and influences spending. hectares (2.3% of the total agricul tural area) which were organically cer ti fied or under conver sion. In q Oversupply, structural or occasional, is 1997 organic food sales amounted to roughly DM 3.6 occurring. bil lion, only 1.2% of total food sales. The organic market is expected to con tinue growing for many q Oversupply, heavy competition and cheap years, if not at the double digit fig ures of the last 10 imports have devastating effects on prices. years, cer tainly at a rate of 5%-10% per year. This is remark able because the general food market is q Super- and hypermarkets continue to have gloomy and expendi ture on food within the problems in marketing organics and often apply 194 CHAPTER 8 – GERMANY conventional purchasing practices. be at least 10% instead of the current 1.2%. Other observers are worried by the fact that core organic q There is, as far as readiness to buy organics is values are being increas ingly eroded by the push of a concerned, a huge gap between what the consumer growing market and that mini mal istic approaches are says and what he does. gaining ground on farms, in proc essing plants and in trade. Social values, including lasting part ner ships Indeed, the prices of many organic prod ucts are from field to shelf, are more and more under attack, drop ping, some times steeply, because of over supply, as is the eco logical prin ciple of region ality. cheap imports, and merci less com pe ti tion. Con ver sion rates are slowing down. Some organic For the near future, as the involvement of the farmers, as well as traders and other suppliers, are mainstream supermarket trade increases, it will be dis cour aged. Devel oping country suppliers are crucial that the organic movement does not squander finding it increas ingly dif fi cult to enter the German its ideological message, which is an integral part of market and have to be much better pre pared than in efforts to improve organic techniques as well quality the past to do so. Some observers are wor ried because issues in general. Price monitoring systems are likely of the tremen dous gap between what German to be established. Both the specialized and the con sumers say about their readi ness to buy organics mainstream supermarket channels must continue to and the pre miums they are pre pared to pay com pared improve their organic impact, further lowering the to what they actu ally do. If people pur chased threshold for the new consumer. These developments according to their stated princi ples the share of should help to make Germany’s organic future organic prod ucts in total gro cery expen di ture should brighter than its past. Annex I

Germany: selected addresses

TRADERS/IMPORTERS/ BIOTROPIC Döhler GmbH PACKERS/PROCESSORS See Lehmann Natur GmbH Riedstrasse 7-9 D-64295 Darmstadt Byodo Naturkost GmbH Tel: +49-6151 3060 Allos Walter Lang Imkerhof Edisonstrasse 3 Fax: +49-6151 306339 GmbH E-mail: [email protected] Zum Streek 5 D-84453 Mühldorf Tel: +49-8631 32690 (Fruit-based ingredients) D-49457 Mariendrebber Fax: +49-8631 326950 Tel: +49-5445 9899-0 E-mail: byodo-naturkostgmbh@ Ernst Weber Naturkost Fax: +49-5445 9899-14 t-online.de Postfach 75 09 54 E-mail: [email protected] http://www.allos.de D-81339 München Tel: +49-89 746 3420 (Honey, fruit preparations, cereals) CARE Naturkost GmbH & Co Rudolf-Diesel-Str. 30 Fax: +49-89 746 34222 D-28876 Oyten E-mail: [email protected] Alnatura Produktions- und Tel: +49-4207 914 444 (Fruits and vegetables, dates, Handels GmbH Fax: +49-4207 7185 seeds, tea, juices) Darmstädter Strasse 3 D-64404 Bickenbach (Grain, seeds, dried fruits, nut pips) Georg Rösner Vertriebs GmbH Tel: +49-6257 93 220 Davert Mühle Regensburger Str. 32 Fax: +49-6257 932 244 D-94315 Straubing E-mail: [email protected] Ascheberger Str. 2 D-48308 Senden Tel: +49-9421 23619 Tel: +49-2598 6928 Fax: +49-9421 81736 Andechser Molkerei Scheitz Fax: +49-2598 6961 (Nuts, seeds, flakes, dried fruits, Molkereistrasse 5 (Cereals, pulses, oils, pasta, rice) almonds) D-82346 Andechs Tel: +49-8152 370 60 De-Vau-Ge Gesundkostwerk Gepa GmbH Fax: +49-8152 370 690 GmbH Bruch 4 E-mail: Scheitz@Andechser- Lüner Rennbahn 18 D-42279 Wuppertal Molkerei.de D-21336 Lüneburg Tel: +49-202 266 830 (Dairy processing and trade) Tel: +49-4131 98501 Fax: +49-202 266 8310 Fax: +49-4131187135 (Coffee, tea, honey, chocolate, nuts, Auris Naturkost Verbriebs GmbH E-mail: [email protected] rice, etc.) D-28091 Bremen http://www.de-vau-ge.de Tel: +49-421 396 0180 (Group of organic and Reform Grüner Punkt Naturkost GmbH (Owns the brand BIO) manufacturers, traders and Schwanenkirchnerstr. 28 importers; brands: Granovita, Eden, D-94491 Hengersberg Bruno Fischer, Martin Evers and Tel: +49-9901 1842 Bergquell Agrar-Naturprodukte Linusit) Fax: +49-9901 1875 GmbH & Co E-mail: [email protected] Klosterhof 5 Delvena Lebensmittel Kontor (Fruit preparations) D-38312 Dorstadt GmbH Tel: +49-5337 92 510 Linnicher Strasse 48 Hipp-Werk Fax: +49-5337 925 123 D-50933 Köln Münchener Str. 58 E-mail: BergquellNaturhoefe Tel: +49-221 498 0387 D-85276 Pfaffenhofen a.d. llm @t-online.de Fax: +49-221498 0399 Tel: +49-8441 757 481 (Eggs, poultry, fruits and vegetables, (Runs the own Gut & Gerne generic Fax: +49-8441 757 492 milk products, dried goods) label and organizes several others) (Baby food)

Bio-Frost Westhof GmbH Dennree Versorgungs GmbH Landlinie Lebensmittel-Vertrieb Hofer Str.11 GmbH & Co KG Zum Westhof 6 D-95183 Topen An der Hasenkaule 24 D-25764 Friedrichsgabekoog Tel: +49-9295 180 D-50354 Hürth-Kalscheuren Tel: +49-4839 9101 Fax: +49-9295 1850 Tel: +49-2233 974510 Fax: +49-4839 9105 E-mail: [email protected] Fax: +49-2233 9745199 E-mail: [email protected] (Full organic food range, including (Trader, packer and importer of (Wholesaler of deep-frozen food) fruits and vegetables) fresh produce) 196 CHAPTER 8 – GERMANY

Lebensbaum U. Walter GmbH MAJOR RETAILERS Fax: +49-6322 8794 Maschstr. 31 http://www.infogen.org D-49356 Diepholz Edeka Zentrale AG (Data bank on GMO-free Tel: +49-5441 98560 New-York-Ring 6 production) Fax: +49-5441 985 622 D-22297 Hamburg E-mail: [email protected] Tel: +49-40 63770 Arbeitsgemeinschaft der (Herbs; spices; herbal, fruit and Fax: +49-40 63772231 Kontrollbehörden Ökologischer black tea; coffee) (Supermarket chain with organic Landbau programme) Tannenstr. 24 b Lehmann Natur GmbH D-40476 Düsseldorf Am Churkamp 20 Globus Betriebs-GmbH & Co KG Tel: +49-211 456 6456 D-47059 Duisburg Postfach 1420 Fax: +49-211 456 6452 Tel: +49-203 932 550 D-66594 St. Wendel (State working group of control Fax: +49-203 932 5599 Tel: +49-6851 909 912 authorities) E-mail: [email protected] Fax: +49-6851 909 610 (Wholesaler, importer and exporter (Supermarket chain with organic BCS ÖkoGarantie GmbH of fruits and vegetables) programme) Cimbernstr.21 D-90402 Nürnberg Mühldorfer Naturkornmühle Metro International GmbH & Co Tel: +49-911 491 73 GmbH (Prima Vera) GmbH KG Fax: +49-911 492 239 Mühlenstrasse 15 Postfach 230351 E-mail: [email protected] D-8444 Mühldorf D-40089 Düsseldorf (Worldwide control and certification) Tel: +49-8631 37730 Tel: +49-211 96 250 Fax: +49-8631 377349 Fax: +49-211 962 5271 Bioland Bundesverband (Processor, trader and importer of (Germany’s overall largest retailer) Kaiserstr. 18 cereals and other foodstuffs) D-55116 Mainz Rewe AG Tel: +49-6131 239 790 Münsterländische Domstr. 20 Fax: +49-6131 238 7927 Margarine-Werke J. Lülf GmbH D-50668 Köln E-mail: [email protected] Postfach 1229 Tel: +49-221 1490 (Umbrella group of Bioland farmers’ D-48720 Rosendahl Fax: +49-221 149 9000 associations) Tel: +49-254 7700 (Dominant supermarket chain) Fax: +49-254 77030 Bundesanstalt für Landwirtschaft E-mail: [email protected] Tegut Zentrale und Ernährung (Producer and trader in margarine; Gerloserweg 72 Adickesallee 40 importer of oils and fats) D-36039 Fulda D-60322 Frankfurt/Main Tel: +49-661 104 843 Tel: +49-69 156 4480 Naturkost Schramm GmbH Fax: +49-661 104 496 Fax: +49-69 156 4444 Ludwig-Winter-Str. 6 (Supermarket chain distributing (Issues list of allowed non-organic D-77767 Appenweier organics) ingredients)

Rapunzel Naturkost AG Tengelmann Bundesverband Naturkost Haldergasse 9 Handelswarengesellschaft Naturwaren (BNN) D-87764 Legau Postfach 1020 Robert-Bosch-Str. 6 Tel: +49-8330 910 124 D-45466 Mülheim a/R D-50354 Hürth Fax: +49-8330 910 139 Tel: +49-208 5806 Tel: +49-2233 963 3811 E-mail: [email protected] Fax: +49-208 6763 Fax: +49-2233 963 3810 (One of Germany’s leading (Supermarket chain distributing E-mail: [email protected] importers and traders in organic organics) (Association of natural food retailers food) and wholesalers) Bundesverband der Produzenten Rila Feinkost-Importe GmbH & GOVERNMENT OFFICES AND CO KG Ökologischer Produkte Hinterm Teich 5 OTHER ORGANIZATIONS Robert-Bosch-Str. 6 D-32351 Stemwede-Levern D-50354 Hürth Tel: +49-5745 9450 AGÖL eV Tel: +49-2233 9633833 Fax: +49-5745 945 139 Brandschneise 1 Fax: +49-2233 9633830 (Manages the Zonatura brand) D-64295 Darmstadt (Association of natural food Tel: +49-6155 2081 manufacturers) Übelhör KG Naturkost Imex Fax: +49-6155 2083 Friesenhofen-Bahnhof 23-25 E-mail: [email protected] Demeter Bund e.V. D-88299 Leutkirch (Umbrella organization of the Brandschneise 2 Tel: +49-7567 820 German Organic Farmers D-64295 Darmstadt Fax: +49-7567 834 Association) Tel: +49-6155 84690 E-mail: [email protected] Fax: +49-6155 846911 (Cereals, pulses, nuts, dried fruits, ALOG eV E-mail: [email protected] sweeteners) Tel: +49-6322 8666 (Biodynamic association) CHAPTER 8 – GERMANY 197

Ecocontrol Ecocert GmbH D-37213 Witzenhausen Protrade/GTZ Sulte 20a Tel: +49-5542 911 400 Dag- Hammarskjöldweg 1 -5 D D-37520 Osterode Fax: +49-5542 911 401 D-65760 Esch born Tel: +49-5522 951 161 E-mail: [email protected] Tel: +49-6196 793 155 Fax: +49-5522 951 164 Fax: +49-6196 797 414 E-mail: [email protected] Labor Dr Wiertz http://protrade.gtz.de/protrade (Inspection and certification) Stenzelring 14b (Assis ts in the devel op ment of D-21107 Hamburg pro duc tion and trade in organic Fair Trade eV Tel: +49-40 752 7090 products) Bruch 4 Fax: +49-40 752 70935 D-42279 Wuppertal (Analytical laboratory for organic Stiftung Ökologie und Landbau Tel: +49-202 648 9221 goods) Fax: +49-202 648 9235 (SÖL) E-mail: [email protected] Lacon GmbH Weinstr. Süd 51 (Assistance in fair trade) Hanns-M.-Schleyer-Str. 10 D-67098 Bad Dürkheim D-77656 Offenburg Tel: +49-6322 8666 GfR Gesellschaft fur Tel: +49-781 55802 Fax: +49-6322 8794 Ressourcenschutz Fax: +49-781 55812 E-mail: [email protected] Prinzenstr.4 E-mail: [email protected] (Publisher on organic agriculture) D-37073 Goffingen http://www.lacon-institut.com Tel: +49-551 586 57 TransFair Germany Fax: +49-551 587 74 Naturland - Verband für Remigiusstr. 21 E-mail: [email protected] naturgemässen Landbau e.V. D-50937 Köln http://www.gfrs.de Kleinhaderner Weg 1 Tel: +49-221 942 0400 (Group of certifying bodies) D-82166 Gräfelfing Fax: +49-221 942 04040 Tel: +49-89 854 5071 E-mail: [email protected] Green Trade Net Fax: +49-89 855 974 Tel: +49-69 811 228 E-mail: [email protected] Verlag Gesund Essen GmbH Fax: +49-69 824 684 http://www.naturland.de Am Eichwald 24 E-mail: oekologiemarketing (Certification and control) D-64860 Schaafheim @compuserve.com Tel: +49-6073 748 251 http://www.green-tradenet.de Ökoprüfzeichen (ÖPZ) GmbH (Protrade/GTZ’s international Rochusstrasse 2 Fax: +49-6073 748 299 database on organic production and D-53123 Bonn E-mail: [email protected] trade) Tel: +49-228 9777700 http://www.naturkost.de Fax: +49-228 9777799 (Publisher on natural food) IFOAM (Company licensing the use of the Ökozentrum Imsbach national organic logo) ZMP - Zentrale Markt- und D-66636 Tholey-Theley Preisberichtstelle GmbH Tel: +49-6853 5190 ÖkoWelt Veranstaltungs GmbH Rochusstrasse 2 Fax: +49-6853 30110 Industriestrasse 12 D-53123 Bonn E-mail: [email protected] D-91186 Büchenbach Tel: +49-228 977 7173 http://www.ecoweb.dk/ifoam Tel: +49-09171 - 9610-0 Fax: +49-228 977 7179 (Head office, International Tax: +49-09171 - 4016 E-mail: [email protected] Federation of Organic Agricultural E-mail: [email protected] http://www.zmp.de Movements) http://www.biofach.de (Central Price Information Office for (The world’s largest organic food Agriculture, Forestry and the Food INAC fair; has many exhibitors from Industry) Rudolf-Herzog-Weg 32 developing countries) 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) 1 312 kg 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 Egg protein (dried) 1400 kg Redcurrant (freeze-dried) 30 kg Lemon powder (spray-dried) 70 kg Glass noodles 200 kg Strawberry pieces (freeze-dried) 255 kg Bamboo sprouts 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 30 kg Pepper, green 24 kg Protein meringue 30 kg Pepper, green, pickled 24 kg Ginger 252 kg Nutmeg, milled 24 kg White pepper 96 kg 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, hot 3 kg Paprika pieces (red, dried) 9 x 9 mm 150 kg

Source: Arbeitsgemeinschaft der Kontrollbehörden. Chapter 9

THE NETHERLANDS

Although its domestic market is small and has been and currently operates cer ti fi ca tion services in over devel oping slowly until recently, the Neth er lands is a 30 coun tries. major pro ducer, importer and re- exporter of fresh organic fruits and vegeta bles to the fast growing This chapter focuses on product sec tors in which northern Euro pean mar kets. It is a sig nifi cant sup plier Neth er lands importers play an impor tant European to many EU mar kets of bulk organic foodstuffs trading role (high lighting key com pa nies) as well as imported from out side the region. SKAL, the on the state of devel op ment of the domestic organic coun try’s only des ig nated organic inspec tion market. authority, has offices in seven inter na tional loca tions

Supply and demand

Domestic production with approxi mately 21,000 hec tares were reg is tered with SKAL, the offi cial organic inspec tion authority. The Neth er lands is a major agri cul tural pro ducer and About 10% of this area was under going con ver sion. trader and plays a leading role in the import and The fig ures for 1998 are given below. There were 587 re- export of a wide range of con ven tional pro duce for proc es sors in the same year. In the spring of 1999 the the European market. Local pro duc tion methods are 1000th farmer was reg is tered. extremely inten sive and the emphasis is on horti cul ture (especially pota toes, vege ta bles, flowers Neth er lands: cer ti fied organic agri cul ture, 1986-1998 and bulbs), and animal hus bandry (par ticu larly for the Number of farms Utilized area pro duc tion of dairy prod ucts, beef and pork). The scale (hectares) of organic pro duc tion is small, accounting for just 1986 278 2 724 under 1% of agri cul tural land usage in 1997. Until very 1991 439 9 227 recently its rate of devel op ment lagged behind that of 1995 561 12 789 most other European coun tries, despite a strong 1996 656 14 334 awareness of the environ ment which has made the 1997 790 21 000 1998 956 20 270 country highly innova tive and successful in con ven tional food pro duc tion. Until the mid 1990s the Sources: SKAL and the Central Statistics Bureau (CBS). pro spec tive com mer cial returns from the slow growing domestic demand for organic foods and the A number of key fac tors are stimu lating a more rapid lack of substan tial financial sup port deterred many rate of con ver sion to organic pro duc tion: pro ducers from con sid ering organic con ver sion. q Government policy. At the end of 1996 the Since 1995 the rate of conver sion to organic Ministry of Agriculture launched a concerted produc tion has acceler ated. The number of farms initiative to stimulate organic agribusiness (the Plan increased by under 10% in 1995, by 17% in 1996 and van Aanpak Biologische Landbouw). About f. 60 by 20% in 1997. At the end of 1997 790 organic farms million were allocated for a four-year period to 200 CHAPTER 9 – THE NETHERLANDS provide increased subsidies and fiscal benefits for 5,000 hectares. Natuurweide, a dairy cooperative, conversion, to support marketing and quality covers about 70% of all organic dairy farmers and improvement schemes and to educate and inform the distributes products on their behalf to the major public about organic foods by means of national processors. publicity campaigns on television and radio. In 1999, an additional f. 9 million were allocated to support The entrance of the Greenery into the organic sector organic farming. in early 1999 is changing the organic landscape. A big player in the conventional sector, the Greenery q Growth in domestic consumption. Demand runs nine auctions and groups 7,500 conventional through the main retail channel (specialist organic vegetable producers. shops) rose by 10% - 15% in 1997, and most of the major supermarket chains, whose sales were limited In the livestock sector, conventional pork production mainly to potatoes, carrots and onions until 1995, are is undergoing structural changes in the face of increasing their involvement in organic food sales, overproduction, a sharp drop in prices, and heavy especially vegetables and dairy products; environmental problems. One of the largest pork producers, Sturko Meat Group BV, has began to q Rising demand for exports. The Netherlands is establish an organic programme. The country’s the largest exporter of organic vegetables in northern biggest dairy company, Campina-Melkunie, has Europe. acquired the two main organic dairies, Zuiver Zuivel and De Zwaluw; the former concentrates on milk, In 1996 the value of the country’s organic agricultural yoghurt, butter and fresh cheese, the latter on hard output at producer prices was over f. 112 million. cheese. The second largest dairy company, Livestock-based production is the most significant Friesland-Coberco (brand name: Natuur Best), segment and accounted for about 40% of the total opened a fully organic plant in Drachten. output in that year. In 1998, about 28% of the organic acreage was for fruit and vegetable production, 24% Finally the country produces organic seed, which is was for arable crops, 39% for livestock production of great importance to the organic sector. and 9% for mixed production. Imports Of the livestock farming output, the most important product groups are dairy produce (50% of the total), The Netherlands does not collect official statistics on beef (30%), eggs (11%), lamb and poultry meat. In the production, import and export of organic foods. the vegetable farming sector, which covers 827 The trade in certain product groups is substantial in hectares, the products include carrots, cabbage of comparison to that of other EU markets, but makes different types, chicory, leeks, beetroot, celery and up only a tiny percentage of the volumes traded of the many other items. corresponding conventional foodstuffs. The Netherlands is a sizeable importer of organic fresh The national agricultural statistics categorize fruits and vegetables, grains, cereals, dried fruits, nuts potatoes and some other products like onions as and seeds, coffee, tea, spices and herbs. ‘crops’. In this category therefore potatoes for human consumption account for over 33% of the output, All types of fresh fruits and a wide range of wheat 26%, seed onions 18%. The remainder off-season vegetables are imported. The main consists largely of seed potatoes, maize, lucerne, suppliers are producers in other EU, Mediterranean onions, sugar beet and marrowfat peas. There were and eastern European countries because of their 5,114 hectares under crops in 1996. physical proximity and ease of access to the market. The main imports from other sources are off-season Over 90% of the country’s output of fruits is made up and exotic products, for which demand is increasing of apples; pears are the only other fruit of any rapidly. significance. About 209 hectares are planted to fruit trees. Southern European countries, especially France, Italy, Spain and Greece, are significant suppliers of The dominant producer of organic grain and cereals, nuts, dried fruit and herbs. Outside the EU, vegetables is Coop Nautilus, a cooperative of about Turkey is the major source, providing raisins, 75 member farmers working a total organic area of currants, figs, apricots, plums, almonds, hazelnuts, CHAPTER 9 – THE NETHERLANDS 201

Key supplying developing walnuts, seeds, lentils, chickpeas, bay leaves, etc. Imports Among the other important supplying countries countries/areas around the Mediterranean are Israel, Egypt, Morocco Cashew nuts Brazil, El Salvador, India, Mozambique, Turkey and Tunisia. North America is also a well-developed Cocoa Belize, Bolivia, Brazil, Dominican Republic source, especially for cereals, seeds, pulses, raisins Coconut Dominican Republic, Sri Lanka and nuts. Coffee El Salvador, Guatemala, Mexico, Nicaragua Dried fruits Burkina Faso, Guinea, Morocco, Sri Lanka, Imports from central and eastern Europe have grown Togo, Tunisia, Turkey substantially in the last five years. Important products Fruit, processed Israel, Latin America, Sri Lanka include buckwheat, millet, wheat, other grains and Fruits, fresh Algeria, Argentina, Bolivia, Brazil, Chile, Costa Rica (bananas), Dominican Republic, cereals, berries, fruits and vegetables, herbs, apple Egypt, Guatemala, Honduras (pineapple), juice concentrate, dried fruit, nuts, honey, oil-seeds, Israel, Madagascar (lychees), Morocco, Puerto Rico (banana puree), South Africa, wine, coffee substitutes etc. Significant suppliers Tunisia, Turkey, Zimbabwe include Hungary, Poland, the Russian Federation, Grains, cereals Egypt, India, Turkey, Latin America Slovakia, the Czech Republic and Romania. Ground-nuts Argentina, China, Mexico, South Africa Hazelnuts and Turkey Supplies of organic produce from many developing walnuts countries, especially in Asia and Latin America, are Honey France, Hungary, Mexico, New Zealand, United Republic of Tanzania also making an increasing impact. Most imports are Palm oil Benin delivered in bulk for packing and/or processing in the Pine nuts Pakistan Netherlands before distribution to Netherlands and Pistachio nuts Islamic Republic of Iran European organic trade buyers. The list to the right Raisins Turkey gives an overview of key sources mentioned by Rice India, Myanmar, Pakistan, Sri Lanka, Netherlands importers. It does not aim to be complete Thailand (the number of suppliers and certified organic Sesame seed Central and South America, Mexico, El Salvador, Burkina Faso, Uganda, Paraguay, products is increasing all the time) and there is no China, Malawi, Sri Lanka official statistical information available. Soya beans Argentina, Brazil, China, Paraguay, Spices and herbs Argentina, Bolivia, Brazil, China, Dominican Exports Republic, Egypt, Guatemala, India, Indonesia, Madagascar, Malawi, United Republic of Tanzania, Mexico, Morocco, Peru, Comoros, Organic traders in the Netherlands are significant Sri Lanka, Uganda, Zimbabwe exporters of the following products: Sunflower seed Argentina, China, Egypt, Paraguay Tea China (green tea), India, Sri Lanka, United Republic of Tanzania, Viet Nam q Vegetables. Three quarters of exports are Vegetables, fresh Egypt, Ethiopia, Israel, Kenya, Morocco, domestically produced, especially potatoes, carrots, Tunisia, Senegal onions, other root and leafy vegetables. The remainder consists of re-exports of imported off-season vegetables. traders in organic spices and herbs in northern q Fruits. About 80% of exports are re-exports of Europe. fruit imported from sources all over the world. (In 1996, the Netherlands exported a total of 1.4 million q Processed organic foods. About half of the tons of conventional fruit.) consumer-packed products manufactured in the Netherlands is exported. q Dairy products (mainly cheese). About one quarter of domestic production is exported. Belgium, Denmark, France, Germany, Sweden, Switzerland, the United Kingdom and Japan and the q Grains and cereals. Although the domestic United States are the most important export markets. output is small, there is a significant re-export trade in grains from southern and eastern Europe, Latin Retail sales America, and Asia (rice). Organic foods account for a very small share of total q Spices and herbs. A major company based in the grocery expenditure in the Netherlands. No official Netherlands is one of the most important specialized calculations are made, but it is estimated that the 202 CHAPTER 9 – THE NETHERLANDS sector was worth f. 700 million-f. 800 million at retail heavily in environmental protection, individual prices in 1997, which is equivalent to about 1% of the consumers were slow to support cleaner food total grocery market. production by paying the premium prices required for organic foods. The organic move ment and general demand for healthier foods grew steadily in the 1980s, and The year 1996 marked a turning point in the country’s Neth er lands traders began to play an active role in organic trade: retail sales increased by 3%-5% in that sourcing organic foods worldwide for sale in the year and most estimates agree that the rate of increase Neth er lands and other European coun tries. Between accelerated to between 10% and 15% in 1997 and 1990 and 1996, while retail trade in neigh bouring 1998. The key changes that are stimulating organic mar kets such as Aus tria, Den mark, Ger many, sales are described below. Swit zer land and the United Kingdom expanded rapidly, retail sales in the Nether lands grew at an q The expansion of supply and more efficient esti mated rate of only 2%-3% per year. This was distribution of dairy and vegetable produce. This is despite the increasing pro fes sion ali za tion of the sector directly linked to increased promotion through and the major con tri bu tion by the coun try’s organic supermarkets and through the subscription system for farmers and import- export traders to sup plies for other vegetables (called the groentenabonnement in Euro pean mar kets. The major fac tors that have lim ited Dutch). In 1998 Odin, the most important supplier, growth are discussed below. sold approximately 27,000 vegetable and fruit boxes a week under a subscription scheme; by early 1999 q High prices. Netherlands consumers spend a weekly sales had risen to 30,000 boxes. Odin plans to smaller percentage of their disposable income on include meat in its subscription scheme. The key food than their EU neighbours and price is a key factors stimulating consumers to buy organic quality influence on expenditure on groceries. The price are taste, freshness and a reasonable price premium premiums for most organic foods were extremely (today a 20% - 30% premium over the conventional high, owing to the dominance of the retail trade by alternative is considered the maximum acceptable). It specialist shops and the fragmented and costly is estimated that over two thirds of all purchases of distribution required to service them. 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 q Increased penetration into supermarkets. At least chain Albert Heijn. Most supermarkets carried a very three-quarters of the country’s supermarkets now small range of organic vegetable products: potatoes, stock some organic vegetables and they are slowly carrots, onions and sauerkraut. For organic foods to expanding the range carried. Sales of dairy products, attract the man in the street as a regular customer a particularly from Zuiver Zuivel and De Zwaluw (both comprehensive product range in the supermarkets is of which have been acquired by the main Netherlands essential. Specialist organic stores attracted mainly dairy group Campina-Melkunie), are developing convinced customers. Their prices were perceived as successfully in a growing number of stores. Albert being too high and their product assortment was too Heijn now sells organic potatoes in all its 630 limited to be convenient to the many people who supermarkets, accounting for about 5% of all potatoes wanted to do one-stop shopping. It should be noted, sold; organic milk, yoghurt, butter, cheese and a wide however, that Albert Heijn launched an organic range of dried goods are available in 650 branches. assortment under its own brand in 1998 and is rapidly Other supermarket groups that are actively introducing building up a full range of products. 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 q Uptake of new product groups by supermarkets. produce in the Netherlands since 1993 and While the introduction of new product ranges has considerable promotional efforts by the Biologica heretofore been limited, there are signs of change. In foundation and the trade, consumers were still February 1998 Albert Heijn announced the confused by the wide variety of food products which introduction of fresh wholemeal bread, eggs, orange were supposedly more environmentally friendly and and apple juice. Later in the year wine, coffee, tea, healthier than their conventional alternatives. While vinegar, jam, biscuits and chicken were added. on a public level the Netherlands was investing Konmar already sells a similar range of foods. CHAPTER 9 – THE NETHERLANDS 203

q More efficient distribution to specialist organic from only 55% in 1993 to 95% in late 1997. shops. Rationalization is gradually taking place both in the wholesale and in the retail trade (see section on Despite these very positive trends, the domestic distribution). Bigger stores, some of which are now market for organic produce, and especially for supermarkets in size and layout, and the growing imported foods, remains small. Its development will range of products stocked are helping shops to attract depend strongly on the rate of expansion by more casual consumers – the number of persons supermarkets into a fuller range of products and the buying at health food shops in 1997 rose by 8%. ability of suppliers to offer organic produce to consumers at price premiums they are prepared to q Intensified government initiative to stimulate pay. Although supermarkets are introducing more organic production and consumption through the organic products, the stores do not generally have a Plan van Aanpak (see above). According to a recent marketing concept specific to organic foods, and their survey by CBL, the central organization for the primary motivation is profitability per square metre, grocery trade, the number of consumers aware of service to customers and preserving a publicly organic foods and familiar with the EKO symbol rose correct image.

Market characteristics

Consumer behaviour and organic farm ers’ mar kets. ‘Sele ctive pur chas ers’ buy some organic prod ucts regu larly and a high pro - One major difference between the Netherlands and por tion of con ven tional foods at super mar kets. Price most other EU markets where organic spending has and the price/quality ratio are sig nifi cant ele ments in increased at a much faster rate has been the failure of their pur chasing deci sions; incon ven ience, lack of selective and occasional purchasers to increase their avail ability or unac ceptably high prices are fac tors expenditure across a wider range of organic food which can make them revert to main stream prod ucts. products. Despite fast growing awareness and ‘Occ asional purchas ers’ are quite well informed knowledge of the environment and a conspicuous about organic quality but tend to do one- stop shop - public policy, the average consumer does not relate ping at large super mar kets and only occa sion ally pur- food purchases to any principles on production chase organic prod ucts on impulse. They expect methods. In general, the more time, money and organic produce, first, to meet exactly the same changes in habit are required of customers, the less require ments as con ven tional foods in terms of environment friendly their behaviour is likely to be. appear ance, taste, quality and fresh ness and, second, This is because product availability, ease of access, to be avail able at their one- stop outlet. Moreover, the product prices and habitual preferences in regard to price pre mium they have to pay must be per ceived as quality, appearance and taste remain critical factors. reflecting real extra value in terms of quality.

The Netherlands food market can be divided roughly The major factors which influence consumer demand into five consumer segments: for organic foods are briefly analysed below.

Consumer group % of all consumers Value for money. It is said that the Neth er lands Heavy users of organic food 1 con sum ers’ first loy alty is to their purse: the high Selective purchasers of organic food 4 pre mium prices of many organic foods have been a Occasional purchasers of organic food 34 major obstacle to the growth of sales. ‘Heavy users’ Non-purchasers aware of organic quality (as 55 represented by the EKO label) place top pri ority on the growing method and origin Non-purchasers unaware of organic quality 5 of their food. How ever, most other consumers (as represented by the EKO label) consid ering shifting from con ven tional to organic Sources: Landbouw-Economisch Instituut (LEI); trade quality need to be con vinced that the pre mium they estimates. pay will guar antee them supe rior taste and fresh ness as well as envi ron men tally friendly pro duce. They do ‘Heavy users’ are con sumers who, as far as pos sible, not expect to give up any of the quality fea tures they buy only cer ti fied organic quality at health food stores are used to in con ven tional prod ucts, such as 204 CHAPTER 9 – THE NETHERLANDS uni formity of shape, colour, unblemished of all food stuffs for sale. The Neth er lands is one of the appearance, clean li ness and avail ability of different leading EU coun tries in terms of imple menting varie ties of the same product. The current new leg is la tion and regula tory meas ures to protect the accel era tion in the Neth er lands market is taking place envi ron ment. Consumer aware ness is high and is in those product sec tors where these needs are being reflected clearly in areas like car pur chasing, rub bish met, especially dairy prod ucts and fresh vege ta bles. col lec tion and energy saving. The link indi vidual Pota toes are the most suc cessful organic product sold con sumers make between food pro duc tion and its and have an esti mated market share of 5%. Fresh effect on the envi ron ment is less clear – pri ori ties such vege ta bles are proving instru mental in attracting new as price, taste, appearance and conven ience often organic consumers – 60% of subscribers to the weigh more heavily than envi ron mental argu ments. vege table abonne ment system are people who do not Con sumers are con fused by the dif ferent schemes and visit organic food shops regu larly. sym bols used for envi ron men tally friendly foods and do not sup port the need to take the ‘costly’ step of Interest in health matters. The traditional diet is a pur chasing cer ti fied organic pro duce. Several fairly healthy one, including a high proportion of examples of these schemes are briefly described fresh fruits, potatoes, vegetables, dairy products, below. meat, fish, wholemeal breads, etc. As in most western countries consciousness about the positive q Since 1995 the Neth er lands Ministry of Envi - contribution that a balanced diet can make to good ronment has awarded a mark, the Milieukeurmerk, health, longevity, physical fitness and the prevention for foodstuffs that are environ men tally the least of sickness and disease has been an important polluting prod ucts of their kind. stimulus to growing purchases of health foods. Consumers are overwhelmed by the different terms q Many individual supermarket groups have (eco-, bio-, green, natural, functional, light, low-fat, introduced ‘clean’ logos and terms to indicate low-salt, gluten-free, etc.), symbols and brands used, minimum usage of fertilizers and pesticides, e.g. all implying healthier, more naturally produced Aarde en Waarde (Albert Heijn), Groene Kikker foodstuffs. On an individual basis they do attach (Aldi) and milieubewuste teelt, which means importance to the natural preservation of foodstuffs, ‘environmentally conscious cultivation’. limited processing and the absence of artificial additives, flavours and colours for their own personal q Fair trade prod ucts, launched in the Neth er lands health, but the majority do not consider the purchase in 1988 (the Max Havelaar label) and subsequently of certified organic foods the only way of meeting marketed on a large scale in many other European this need. The astounding success of the Montignac countries, are widely recognized. Several fair trade range of health food products (by the end of 1997 product groups like coffee, cocoa and bananas have their weekly retail turnover was averaging f. 200,000 an impor tant niche market. Sustain able agri cul ture is and the Montignac diet book was the best selling a primary aim of the fair trade move ment but cannot non-fiction book title of the year with sales of necessarily be directly iden ti fied with (certi fied) 370,000 copies) and the rapidly increasing sales of organic production, which is its ideal form. food supplements in the Netherlands illustrate this Never the less fair trade and organic issues do tend to view. The promotion of the single EKO label for converge, and a growing number of prod ucts, like certified organic products has increased consumer coffee and bananas, carry both EKO (organic) and understanding and confidence in the origin, quality Max Havelaar (fair trade) certi fi ca tion. and composition of organic foods. Moreover, the publicity and discussion of various food Demographic and socio-economic factors. Typical controversies in the last few years (BSE, pig disease, purchasers of organic foods are persons between 25 use of growth hormones, genetic manipulation of and 50 years old, who have higher than average soya beans, etc.) have contributed to rising distrust of income and education levels. They tend either to live some conventionally produced food and encouraged on their own or to come from households where both consumers to purchase guaranteed organic quality. parents earn an income and want the best and healthiest food that money can buy for their children. Atti tude to protec tion of the environ ment . The This target group in the Netherlands comprises some envi ron mental aspects of prod ucts are a major issue in 1.3 million persons. The reasons that have been given all European coun tries and, in addi tion to price and for the failure of this group to buy more organic quality, are a key deter mi nant of the legal accept ability produce are: CHAPTER 9 – THE NETHERLANDS 205

q They lack real knowledge of organic products radio are informing the public about organic foods and the presentation in shops does not make organic and the EKO symbol as a guarantee of organic foods easy to recognize; quality. q They can buy only a limited range of organic q The umbrella organization Biologica is working foods at supermarkets; hard to motivate supermarket organizations to increase their uptake of organic products and to stimulate q They do not visit specialist health food shops, consumer interest through many types of publicity. which are perceived as meeting mainly the needs of heavy users and people with special dietary q A broad coalition of public organizations, require ments. including CBL (the central organization for the grocery trade) and the Consumentenbond Over the last two years this situa tion has changed (consumers’ association) are supporting individual con sid erably, as the government-backed pro mo tional and collective organic promotional campaigns. efforts of Biologica and the trade have increased consumer aware ness and the more widespread q More and more provinces are stimulating avail ability of dairy and vege table pro duce has started organic production and distribution on a project by to obtain results. Also, the growing product assort ment project basis. For example, the North Holland avail able in organic food shops makes them attrac tive province is subsidizing the distribution of vegetables to more con sumers. The eco nomic boom and the high by subscription. level of economic confi dence have stimulated an overall increase in con sumer spending. q So-called green financing schemes make it possible for individuals to earn tax-free dividends on Availability and convenience. Like most northern investments in approved environmentally friendly Euro pean consumers, Neth er lands consumers are projects and for organic farmers to borrow capital at used to buying their groceries at large modern lower interests. super mar kets, which offer the con ven ience of one- stop shop ping, a huge variety of products, Market segments and end-users com peti tive prices and year- round avail ability. Most con sumers of organic prod ucts with some While this study concerns a small niche of the overall understanding of the princi ples of culti va tion and grocery trade, it encompasses the whole range of pro duc tion will accept some incon ven ience in terms food products. Only general comments on market of a smaller choice and (non- seasonal) lack of supply. segments can therefore be made. How ever, particu larly in the case of casual con sumers who tend to com pare organic products The retail trade is ultimately the main outlet for more directly (at face value) with the alterna tive imported organic foods, although much produce con ven tional foods, con ven ience and avail ability are imported into the Netherlands in bulk undergoes highly impor tant. Many natural food shops are primary processing and packaging before sale to the currently too small to offer the wide assort ment consumer. The proportion of produce used for further required. The entry of main stream super mar kets and manufacturing depends on the product group, as is the larger spe cial ized self- service organic food shops indicated below: into the cost-effective and bigger-scale dis tri bu tion of organic foods is essen tial to attract more cus tomers. q Fresh fruits and vegetables: primarily for direct consumer consumption, but also for processing. Pro mo tion. Impor tant ini tia tives, backed by gov ern- ment policy and funding (f. 60 mil lion until the year q Processed fruits and vegetables: juices, 2000), are now in place to stimu late the devel op ment conserves, pulp, purée, soups, pizzas, baby food, fruit of organic culti va tion, proc essing, dis tri bu tion and yoghurts or desserts. con sump tion. Among these ini tia tives are: q Dried fruit: about three quarters of the total q Higher subsidies are available for the conversion volume goes to the bakery trade; the remainder is used of agricultural land to organic production. for the production of muesli and consumer snacks. q National publicity campaigns on television and q Edible nuts: mainly for the industrial production 206 CHAPTER 9 – THE NETHERLANDS of peanut butter, other nut pastes, sauces, bakery At the end of 1997 there were 480 certified organic products and snacks. traders, packers and food processors in the Netherlands, 17% more than in 1996. A wide range of q Grains and cereals: used by the bakery trade food products is manufactured for the local market (mainly for baking bread, utilization in biscuit- and and for export. Important categories include dairy cake-making is not substantial); by consumer packers products (milk, yoghurt, butter, cheese), vegetable for retail sale; and for the production of animal feed. products (conserves, juices, concentrates), nut pastes, bakery products, cereals and baby food. The q Pulses: mainly for consumer packing and the importance of the food industry as an end-user of retail trade. organic foods is growing in relation to the two other sectors, because consumers, both local and in export q Coffee, tea: mainly for retail. Catering and markets, are looking for an assortment of processed institutional use is small but growing. foods similar to that available from conventional production. A key development in the last two years q Herbs and spices: usage is about 60% for retail has been the rising involvement of the mainstream and consumer consumption, and 40% for industrial grocery trade in the sector and the growing number of purposes (for the production of soups, ready meals, mainstream processors adding organic production etc.). The industrial segment is growing. lines to their factory operations. Many of the new registrations are for the organic departments of q Oil-seeds: mainly for the industrial production conventional food companies, rather than for of margarine, cooking oil and bread. Oil-seeds have specialist organic businesses. some use as consumer snack foods. The catering and insti tu tional sector for organic foods q Honey: mainly for consumer retail. is tiny but growing. Organic coffee and tea are regularly avail able to employees in a number of Although domestic demand is fairly small, the gov ern ment depart ments, banks, pro vin cial offices Netherlands is a significant primary processor of and town halls, and catering com pa nies have started organic agricultural produce, because of the active role to offer organic menus as a service in company played by a number of large international traders. They res tau rants and can teens. About 600,000 indi viduals import raw produce, which is processed (inspected, eat their midday meal on company prem ises. The cleaned, graded, sorted, blended, roasted, packed, etc.) asso cia tion for cooks using organic ingre di ents now into a form suitable for direct sale to consumers, for has 70 members, of which half are top-level food manufacturing or for re-export to other European restau rants and the other half are insti tu tions markets. It is estimated that over 80% of imported (health- care insti tu tions, homes for the aged, etc.) and organic products is re-exported. The Netherlands is can teens. One major catering com pany, Marfo, thus a major trader in grains, cereals, pulses, nuts, sup plies ‘nat ural gour met’ organic meals to the Swiss herbs and spices, oil-seeds, coffee and tea. national air line, Swis sair.

Market requirements

This section describes the main product groups re-exporter, plays a major role in the conventional imported into the Netherlands and lists the most European fresh fruit and vegetable trade. Its traders important items within each group. The major focus are also significant importers of organic fruits and is on products which are not available to importers vegetables for distribution not only to the local from European sources and which can be supplied by market but also for re-export to many European developing countries. countries. Consumers are used to the availability of a wide range of produce in all seasons, and there is Fresh fruits and vegetables growing demand for off-season fruits and vegetables and exotic fruits. National consumer sales of organic The Netherlands, as producer, importer and fruits and vegetables grew by over 30% in 1997, and CHAPTER 9 – THE NETHERLANDS 207 the rate of increase is expected to be sustained, owing How ever, as demand grows for an increasing variety to the rising uptake by supermarkets and the success of proc essed organic foods, larger sup plies of of the subscription system. vege table and fruit ingre di ents will be required. The food industry is the main end- user. The most Fruit. The average consumer ate 75 kg of fresh fruits impor tant items which can be sourced in devel oping (conventional) in 1996. The most popular fruits are countries are fruit pulp, purée and juice concen trate apples and oranges, which together account for about for reproc essing into juice and fruit ingredi ents for half of consumption, followed by bananas and proc essed foods (e.g. baby foods, fla voured yoghurts, mandarins. Only about 3 kg of exotic fruit are desserts and ice-cream). Single- strength juices are purchased; kiwi fruit, pineapple and mango are the usu ally less inter esting because, in the final analysis, most important, but there is increasing interest in more they cost more to trans por t than concen trated exotic items like lychees and passion fruit. Only apples prod ucts. Fruit con cen trates are also impor tant and, to a lesser extent, pears, prunes, cherries, melons sweet ening agents in organic food proc essing and in and various berries are produced domestically, so all domestic cooking. types are imported and over half of imports are re-exported. The main import requirements from Tradin, a major organic trader, imports from devel - non-EU sources are: oping coun tries the fol lowing frozen and/or con cen- trated items: acar illo purée, agave con cen trate, apple q Off-season fruit: citrus fruit (oranges, con cen trate, apricot purée, banana purée, banana mandarins, grapefruit, lemons), apples, pears, kiwi slices, frozen bananas, guava purée, mango pulp, fruit, avocado, grapes, melons; orange juice, orange con cen trate, papaya purée, pas- sion fruit juice, pear juice, pine apple juice, tomato q Tropical fruit: bananas, mangoes (the red con cen trate, and soft fruit purées and con cen trates. (A varieties are more popular than the green), more complete list of prod ucts traded by this com - pineapples, papayas. pany is given in Annex IV.) q Vegetables. The average inhabitant consumed Dried fruits and edible nuts nearly 60 kg of fresh vegetables (excluding potatoes) in 1996. Consumption is dominated by domestically Dried fruits. Imports total about 1,000 tons yearly grown products like cauliflower, carrots, tomatoes, and are intended mainly for the domestic market. Key cucumbers and leafy vegetables. A large share of items are raisins (about two-thirds of the total), imports originate in other EU countries. The main currants, prunes, apricots, dates, apples and figs. products which could be of interest to exporters from Demand for tropical items is small but growing, and developing countries are: peas and beans, capsicum, is mainly for pineapple chips, banana chips, papaya, courgettes, eggplants and artichokes. mango and guava. The bakery trade is the main end-user and demand has recently been stimulated by It is essential that poten tial sup pliers of organic fruit one major organic bakery commencing production of and vege ta bles realize that organic cer ti fi ca tion is only vacuum-packed raisin and nut breads for export. one con di tion that fresh pro duce must meet in order to Other end-uses are consumer retail packs, breakfast be accept able for sale in Euro pean mar kets. Importers cereals and muesli and snacks. will specify precisely the product pro file, quality stan dards and pack aging/label ling requirements Edible nuts. Imports are for the local market and for against which each delivery will be inspected. An re-export. The Netherlands has the highest per capita unblem ished external appear ance is essen tial. One of consumption of nuts in the European Union. The the main obsta cles to sup plying Neth er lands importers major import product is shelled ground-nuts (which lies in the trans port and storage of fruits and vege ta bles make up an estimated three quarters of the total), which must be in keeping with organic regu la tions and which are used in the production of peanut butter, which must ensure that the prod ucts reach the final snacks, sauces and meals sold both domestically and con sumer in a top-quality con di tion. in export markets. Indonesian and Chinese cuisine have a strong place in the population’s eating habits Processed fruit and vegetables owing to the country’s historic links with the Far East. Coconut, in flaked and desiccated form, shelled Demand for imports of proc essed goods is cur rently sweet almonds, hazelnuts and walnuts are the next much smaller than demand for fresh produce. most important items, primarily for the bakery trade 208 CHAPTER 9 – THE NETHERLANDS but also for the production of muesli and other sunflower seeds, walnuts, almonds, dried apple and processed foods. Demand for other nuts, especially currants. There is rising demand for many other cashew nuts, pistachios, Brazil nuts, pecan nuts and additional ingredients for their distinctive flavours pine nuts is growing. and colours, e.g. roasted buckwheat, cashew nuts, sesame seeds, banana chips, dried pineapple and One major importer of organic dried fruits and nuts, papaya, coconut, dried apricots, and unrefined sugar. Horizon Natuurvoeding, dominates the Netherlands (and the Belgian) market. Horizon is one of the key Rice. The inhabi tants of the Neth er lands are partners in the Good Food Foundation, a cooperative tra di tion ally potato- eaters, and households spend venture established by European organic companies to about five times more on pota toes than on rice every stimulate, establish, subsidize, develop and run organic year. How ever, changing eating habits and the cultivation projects for dried fruits, nuts, seeds and other increasing popu larity of all types of inter na tional products, primarily in Turkey but also in Benin, El cui sine are stimu lating rising demand for rice and Salvador, Mozambique, Sri Lanka and Uganda. pasta. Over 80% of the rice con sumed is long grain, of which more than half is white. There is The Foundation’s licensee importers in other major fast- growing demand for bas mati and Thai rice. The EU markets have a controlling share of the market for major end use is in retail packs for sale to con sumers, dried fruits and nuts in France, Germany, the United but use in ready meals and baby food is expanding. Kingdom and Scandinavia. It has been estimated that Imports are mainly of husked rice for proc essing in Good Food together with the two major German the Neth er lands. Re-exports are size able and a organic traders (Rapunzel and Morgenland), control sub stan tial part of the re-exported rice is ready about 80% of the EU trade in organic dried fruits and milled. Organic rice cakes are also a popular product, nuts. Horizon produces pastas under three brand manu fac tured in the Neth er lands for domestic names (Horizon, Monki and Jori) and supplies con sump tion and for export, par ticu larly to Ger many. organic bakeries and consumer-packed products to wholesalers. Pulses. The main pulses con sumed are locally grown len tils, split peas, and white and brown beans. Grains, cereals, pulses and seeds Important import items for the home and re- export markets are aduki beans, black beans, chickpeas, Netherlands plays a significant role in the trade in this flageo lets, kidney beans, lentils, mung beans, soya product group, importing from sources worldwide. beans and yellow peas. Soya beans are the most Over 80% of its imports are re-exported to Belgium, impor tant product. Demand for organic soya beans is Denmark, Germany, Sweden, the United Kingdom growing rap idly, and has been boosted espe cially by and other European markets. Imports are mainly of recent scares arising from the non-differentiation bulk raw products – cleaning, sorting, quality control, between tra di tion ally grown and genetically milling and (bulk) packing are carried out according manipu lated soya beans. IFOAM basic stan dards do to the customer’s requirements before re-export. not permit the use geneti cally modified organ isms. Moreover, under EU food laws, the presence of Grains. The most important are wheat, oats, barley genetically modified ingredi ents in foodstuffs must and rye, for which southern and eastern Europe are be clearly indi cated on the product labelling. The the main sources. Other items are amaranth, Neth er lands is a major importer of soya beans for buckwheat, maize, millet, quinoa, which are processing into oil (for use in may on naise, salad generally imported from the Americas, and durum dress ings, mar ga rine, coffee whit eners, etc.), pro tein wheat, which originates mainly in Italy (Sicily). Flour for human con sump tion (meat substi tutes, sauces, millers and bakers are the major customers for grain. imita tion dairy prod ucts, des serts, sweets, etc.), Because of the entry of mainstream bakers and animal feeds and for crushing/semi-processing supermarkets into the supply of organic bread and before re- export. factory expansions planned by existing bakers, demand in the Netherlands is expected to increase Oil- seeds, edible oils and fats. Apart from soya, considerably in the near future. Manufacturers of men tioned above, the main seeds required are cereal-based foods and packers of grains and muesli sunflower seed, sesame seed and, in smaller for the retail trade are also important users. Typical quan ti ties, pumpkin seed, saf flower seed and poppy basic ingredients for muesli are oat flakes, barley seed. Imports of sunflower seeds are sig nifi cant flakes, wheat flakes, raisins, hazelnuts, rye flakes, because of its use in poly un satu rated oils and CHAPTER 9 – THE NETHERLANDS 209 mar ga rine, which are widely used for commer cial India and Sri Lanka). and domestic cooking; supply is domi nated by Euro pean sources. Sesame seeds are imported The efficiency and output of existing suppliers of pri marily for use by bakers in or on bread, and in organic tea and coffee are improving rapidly, lim ited quanti ties for producing cooking oil. according to Netherlands trade sources. These Pumpkin seeds are required as a snack product. sources say that the best opportunities for first-time suppliers are likely to be in new and unusual Import demand for edible oils is small except for varieties. olive oil (mainly from Spain and Italy), and palm oil. Because of the high risk of rancidity and loss of Herbs and spices. Usage of spices and herbs is quality, most seeds are imported for crushing and heavier in organic food prepara tion than in further processing in the Netherlands. con ven tional food prepa ra tion and proc essing owing to the many alterna tive (artifi cial) fla vour ings and Coffee. The Neth er lands is a nation of coffee drinkers addi tives also used in the latter sector. House hold and per capita con sump tion is over 8 kg of coffee usage currently accounts for about 60% of beans (about 175 litres) per year. The main demand require ments, but demand is growing faster in the (about three- fourths of the total) is for ara bica coffee food proc essing and catering seg ment. The entry into and nearly all imports are of green coffee, because force on 1 January 1998 of a stricter EU regu la tion on coffee blenders need con stantly to supply their the per mitted usage of non-organic ingredi ents in cus tomers with the same fla vour, aroma and quality cer ti fied organic prod ucts has stimu lated an increase under a named brand. The various coffee types in require ments. According to EU Regu la tion blended together may come from a number of 2092/91, cer ti fied organic foods may con tain a different sources, according to availability, quality, maximum of 5% of approved non-organic har vest levels, etc. A con sid er able pro por tion of the agricul tural ingredi ents, including spices and herbs; bulk organic coffee imported into the Neth er lands is the organic foods with such con tent are referred to as re- exported fol lowing cleaning, blending, roasting 95% prod ucts. (the taste requirements of individual EU mar kets vary), grinding and pack aging in branded or pri vate The major European importer and developer of label consumer retail packs. Demand for organic organic herb and spice projects in source countries coffee, now increasing at about 10% per year, is worldwide is located in the Netherlands. Euroherb expected to continue growing at a healthy rate, Bio BV, established in 1989, is a joint venture stimu lated by increasing use in insti tu tional catering, between Piramide, the Netherlands market leader by the successful pro mo tion of Max Havelaar fair with an estimated 90% of total sales, and trade coffee (although it is not all cer ti fied organic, Lebensbaum Krauter, the most important distributor Max Have laar coffee now accounts for over 3% of all of organic herbs and spices in Germany. The coffee consumed in the Neth er lands) and by the company cooperates with producers of organic intro duc tion of organic coffee on to supermarket herbs, spices, tea, coffee, sugar and cocoa products shelves. in many developing countries, providing consultation on growing, processing and Tea. Netherlands consumers drink an annual certification, as well as contracting to import the average of 83 litres of tea per person, which makes resulting organic produce. them the third largest consumers of tea in Europe after the Irish and the British. Black tea dominates Euroherb imports about 200 base products and and four types of tea account for 75% of organic expects demand to increase by 10% - 15% annually demand: Earl Grey, India (Ceylon tea), low-tannin over the next few years. Pepper is the most tea and Darjeeling. As in the mainstream trade, significant spice import; the other important items demand for single-origin teas and for flavoured teas are paprika, coriander, cinnamon, ginger, nutmeg, (e.g. cinnamon, forest fruit, lemon, tropical fruit, mace, caraway seed, cloves, cumin seed and lavender, lemon grass, aniseed, etc.) is growing. A turmeric. The key dried herbs are parsley, marjoram, high proportion of tea is purchased as tea bags thyme, bay leaf, oregano, sage, rosemary, basil, (packed in boxes containing 10 or 20 tea bags of mint, tarragon and dill. Because of the climatic 1.75 grams). Loose tea is packed in 100 gram bags. conditions required for production, a high Tea is mainly imported loose in chests, but there is proportion of spice imports is sourced in developing some growth in imports in consumer packing (from countries. The main suppliers of dried herbs are 210 CHAPTER 9 – THE NETHERLANDS southern and eastern Europe, Egypt, Turkey, developing countries. Morocco and Latin America. q Demand for dairy products is among the fastest Honey and other sweeteners. Organic honey is traded growing. They are supplied primarily by domestic widely, not only as a spread but as a natural sweetener producers; some supplies are obtained from in domestic cooking and in food manufacturing. neighbouring EU countries. Because it is a natural food, Netherlands consumers, even people whose grocery purchases are mainly q There is a small but increasing demand for meat, certified organic foods, have not to date placed great stimulated by consumer worries about BSE, pig importance on approved organic quality for honey. disease, salmonella and growth hormones. Supplies The main requirement is for polyflora honey, which are provided by domestic producers. accounts for three-quarters of sales; clover, acacia and sunflower honeys are also popular. Organic food q Agro Eco, a leading Netherlands organic consumers buy a far wider variety of types of honey consultancy agency, is working on several organic than mainstream consumers, including such flavours fish and seafood projects, both in the Netherlands and as buckwheat, rapeseed, heather, lavender, thyme, abroad. rosemary and eucalyptus. Supermarket honey is sold mainly in 450- and 500-gram jars but organic food q Imports of manufactured food products for the customers tend to favour bigger containers of 900 - retail trade are sourced mainly in other European 1,000 grams. For re-export to Germany, 2.5-kilogram countries, the United States and Japan. jars are also popular. q The expanding livestock sector has a growing According to two specialist organic importers, De demand for organic animal feeds. These are pro duced Traay and De Rit, demand for organic honey is in the Neth er lands using both local and imported rising, par ticu larly from German and Scan di na vian grains, cereals, soya beans, etc. How ever, organic customers. De Rit was plan ning to launch a new feeds are also imported (and re-exported) by range of five types of cer ti fied organic honey from Neth er lands traders; exam ples of import New Zea land in 1998. Within its stan dards for the require ments are saf flower cakes and pel lets, sesame certi fi ca tion of animal- based prod ucts, SKAL has cakes, and sun flower cakes and pel lets. laid down con di tions for cer ti fi ca tion of honey producers and honey, but there are as yet no q Interest in organic cut flowers and pot plants is har mo nized EU regu la tions. small; an initiative by the Netherlands flower auctions to promote organic products was abandoned Demand for certified organic honey from food in 1997 because sales failed to grow towards the manufacturers has been increasing since EU imposed target 3% share of the mainstream market. However, the compulsory use of certified organic ingredients in the project is likely to be revived. There is also a January 1998. It is important for exporters to take growing interest in certified wood and wood account of the fact that the price-quality ratio must be products. attractive as processors would otherwise replace honey with alternative sweetening products, such as q The production of organic seeds and plants is cane sugar and molasses. promoted by several seed companies. Koppert BV is one of Europe’s most important suppliers of biological Other products. Other product sectors, although traps for biological pest management, bumblebees for perhaps significant in demand terms, are less relevant pollination and other important aids to organic as sectors for export development by producers in production, generically called biological systems.

Importers’ requirements

Organic certification according to Council Netherlands and other European countries. Demand Regulation (EEC) 2092/91 is only one of the many for organic produce is expanding fast among new requirements for attaining import acceptability in the consumers, who are used to buying a huge variety of CHAPTER 9 – THE NETHERLANDS 211 high-quality foods. Their readiness to pay premium food ingredients meeting strict quality specifications. prices is influenced not only by the guarantee of certified organic quality but also by the availability of Besides being able to produce the item required, a foods which at least match the conventional pro spec tive sup plier in a devel oping country must be alternatives in appearance (which should be capable of deliv ering that product in the con di tion unblemished), size, variety, taste, uniformity, colour, specified in the con tract or agreed on the basis of absence of extraneous matter, etc. samples. Neth er lands trade sources have indi cated that logis tics (appropriate pack aging, quality Against the background of the food safety and quality preser va tion during transit, storage, trans por ta tion) standards strictly regulated by the European Union fre quently pres ent the major obstacle to a suc cessful and the individual re-export markets, Netherlands export trade in organic foods. Many of the importers clearly specify the quality standards instruments avail able to mainstream food exporters required per product, according to the specifications for quality preser va tion cannot be used by organic of their client retailers and food processors. sup pliers because they are disal lowed by Relationships with new suppliers in developing envi ron mental pro tec tion and cer ti fi ca tion countries almost always commence on the basis of regu la tions. One example of a logis tics problem cited imports of bulk agricultural produce which has during the research for this study was that of an undergone very little processing. As the relationship excellent organic honey suit able for cer ti fi ca tion and trade develops it is quite usual for the exporter to pro duced by a coopera tive in Africa, which the start carrying out more value-adding processes prior importer could not buy because of the absence of to exporting the merchandise to Europe. It was in this food- quality metal drums for storing and trans porting way that Turkish organic producers developed into the honey from the coopera tive to the port of suppliers of consumer-packed dried fruits and nuts, ship ment. India and Sri Lanka into sources of tea, and Egypt into a source of ready-packed herbs. A number of Netherlands organic traders are active not only in the import/export trade but also in Many European food manufacturers prefer to obtain working directly with new conversion projects in supplies from well-known Netherlands, German and developing countries. They provide consultancy and other European importers according to their advice on the requirements of specific European individual specifications rather than to import direct market sectors and on obtaining certification, which from developing countries. Some Netherlands traders is based on their first-hand experience with other play a crucial role in certain product sectors by similar projects. Most importantly, they contract to importing raw materials, carrying out basic buy and distribute the produce as soon as suitable processing and delivering to food producers organic organically certifiable supplies are available.

Competition and prices

Competition and prices are discussed mainly in Part distribution, as in the case of organic potatoes, Two of this survey. Owing to the huge diversity of vegetables and dairy products, which are now products covered, it is not possible to give any distributed through supermarkets, make economies specific information on prices and margins. The of scale possible and so reduce the premium charged mark-ups at each level are strongly influenced by to consumers. such factors as the type of product, the processing activities undertaken, the volumes involved, As prices and margins vary considerably for different available supply, competitive products, packaging, products and can fluctuate strongly, it is essential to and promotional activities carried out. Both prices have continuous access to up-to-date price and margins are considerably higher for organic information. An important source of information for foods than for the conventional articles and this has exporters is their importer or business partner in the proved to be one of the major obstacles to growth in Netherlands. The major wholesalers of organic foods consumer sales in the Netherlands. Increased publish detailed price lists which give recommended volumes of output by producers and more efficient retail prices and trade discounts. 212 CHAPTER 9 – THE NETHERLANDS

Food laws and regulations

In the Neth er lands, EU Regu la tion 2092/91 is imple- services to organic producers worldwide. Outside the mented through national legis la tion enti tled Decree Netherlands it has its own offices in Germany, on the Agri cul tural Quality of Organic Produc tion Turkey, Hungary, Sri Lanka, Suriname, Peru and Methods, and con comi tant regu la tions (Land- India, and currently operates in over 30 countries (see bouwkwal iteits bes luit and the Land bouwkwal iteits re- list in Annex II). SKAL inspects and certifies not only geling biolo gische produk tie metho den). This to EU Regulation 2092/91 but also to the often leg is la tion des ig nates the organiza tion SKAL as the stricter standards of major trade groups in Europe. sole official inspec tion body for organic farming in Among these groups is the German organic trade the Neth er lands. SKAL’s cer ti fi ca tion mark, EKO, association BNN, which represents organic retailers indicates that the product car rying it origi nates from and wholesalers in Germany and lays down its own organic culti va tion and has been proc essed with standards for admitting food products into its organic methods. Prod ucts bearing the symbol have approved list; it commands great respect in the trade. sat is fied both EU Regu la tion 2092/91 and SKAL Since 1996 SKAL has been accredited by the Dutch stan dards. Where EU har mo nized regu la tions do not Council for Accreditation which means that it meets yet exist, as in the case of tex tiles and for estry prod- the requirements for certification institutions set out ucts, cer ti fi ca tion and inspec tion and the granting of in EU norm EN 45011. the EKO symbol are moni tored according to SKAL stan dards, which are based on IFOAM standards. All foodstuffs offered for sale in the Netherlands When har mo nized EU stan dards come into force, must comply with the Food and Drug Act these SKAL stan dards will no longer apply. Import (Warenwet). This is a general law and largely reflects licences for organic prod ucts from out side EU are EU legislation. Specific decrees and regulations issued by the Min istry of Agri cul ture, Nature Man- provide norms for some individual product groups. age ment and Fish eries. Exporters are strongly advised to obtain accurate and up-to-date information from Netherlands importers, SKAL is one of the main organizations in the who are ultimately responsible for ensuring the European Union offering inspection and certification compliance of their produce with national legislation.

Distribution channels

Most usually, imported organic foods pass from a distribution throughout Europe fast and efficient. specialized importer to a processor/packer, then to a wholesaler and thence to a retail outlet, which The functional distinctions between different types of makes the final sale to the consumer. Food distribution channel are often not clear because many manufacturers receive their imported supplies either companies undertake different levels of intermediate direct from importers or through specialized processing, according to the type of product and the processors. end use.

Despite the small size of the domestic organic Traders, importers, packers, processors market, a number of specialized Netherlands traders have become major importers and suppliers of In each of the major product groups a few specialized organic produce to northern European markets, organic traders tend to dominate imports and these especially Germany, the United Kingdom, Belgium, companies are the key (potential) customers for Denmark and Sweden. This reflects the pivotal role foreign exporters. They import on their own account which the Netherlands plays as one of the major and sell to packers, processors and food traders in agricultural produce in the world and as a manufacturers. Importers often also perform other gateway to Europe. The port of Rotterdam, with its functions, such as that of: concentration of trading companies and distribution services and its excellent trade infrastructure, renders q Packer: packs goods in standard bulk packs; CHAPTER 9 – THE NETHERLANDS 213

q Refiner: subjects goods to further processes (e.g. importer of organic dried fruits, edible nuts and seeds sorting, cleaning, grading, recon di tioning, and a manufacturer of nut spreads, pastes and organic micro bio logical inspec tion, quality control); syrups. (See page 208, dried fruits and edible nuts.) q Wholesaler: supplies bulk-packaged goods to q Eosta Int. BV. This is a major importer of the catering and retail trade; organic fresh fruit and vegeta bles from sources worldwide, especially South Africa, Egypt, Argen - q Processor: prepares products as ingredients for tina and many other countries in North Africa the food industry according to specification; (Morocco, Tunisia), East Africa (Kenya, Mada - gascar) and South America. About 70% of its imports q Re-exporter: engages in re-exporting, a major are re-exported to other European coun tries; the activity, mainly to other European markets; remainder is distrib uted to super mar kets and whole- salers in the Neth er lands. q Developer: cooperates with growers or producers in origin countries in the process of q Simon Levelt BV. This is a specialist coffee and seeking entry into the European market; activities tea trading company with its own roasting, blending cover certification requirements, quality standards, and packing facilities. It helped initiate the market information, etc. establishment of Max Havelaar and the fair trade mark, and is the largest Netherlands importer of In organic terminology the word ‘processor’ is organic coffee and tea. In 1997, it traded about 200 frequently used as a generic word for packers, tons of organic coffee and about 50 tons of organic tea. primary processors and food manufacturers alike. It supplies 95% of the requirements of the Netherlands retail trade and has significant exports of Among the leading Netherlands organic traders are consumer-packed coffee and tea to distributors and the following: supermarket chains in a number of European markets. q Tradin Organic Agri cul ture BV. A major trader The other important traders and packers include: special izing in organic imports (all certified Ariza BV (processed fruits and vegetables); De Traay according to EC Regu la tion 2092/91), primarily (honey), De Rit (honey), Doens Food Ingredients BV grains, rice, seeds, nuts, dried fruit, oil- seeds, animal (grain, pulses, oil-seeds, spices, horticultural seeds, feeds, oils, beans, coffee, cocoa, sweet eners, bakery animal feed), Green, Fresh & Anywhere (fresh fruits fat, dairy prod ucts, fresh bananas (imported by its and vegetables), Koffiebranderij G. Peeze BV (coffee sister company Traba nana BV), and frozen fruit and and tea), Neuteboom BV (coffee and tea), ODIN concen trate. It had a turn over of about f. 28 million in Holland CV (fresh fruits and vegetables) and Trouw 1997. Its largest suppliers are Latin America, North BV (buckwheat). America, Eastern Europe and China. It has offices in Bulgaria and Honduras. It exports to Europe and to Relevant addresses are given in Annex I. the rest of the world. Imported organic produce may be processed and q DO-IT BV. This is a special ized distributor of a (re)packed by the importers themselves or sold to wide range of proc essed organic foodstuffs specialist companies for further processing. The throughout Europe. Its products include pasta, tomato mixing and blending of products like muesli, dried products, nuts and Mexican goods. Greenfood fruits, nuts and coffee, and their packaging in Inter na tional BV is a trading company special izing in consumer packs for the retail trade are important the import and export of organic cereals and, to a activities. The packaged range of goods may carry lesser extent, seeds, nuts, pulses and dried fruit. Both the packaging company’s own brand or the private companies are subsidi aries of Mulder Natuur vo eding label for organic products of a major wholesaler, BV. chain of shops or supermarkets. q Euroherb Bio BV. (See the description of this Wholesalers company on page 209, subsection on herbs and spices.) Because sales of organic foods to Netherlands consumers take place primarily through small q Horizon Natuurvoeding BV. This is a large specialist shops, the wholesale trade is an important 214 CHAPTER 9 – THE NETHERLANDS distribution link between the large number of small carry out common promotional activities. Central producers and suppliers on the one hand and the retail buying of the common product assortment and trade on the other. private label foods will be carried out by an independent division, Natural Trade Services. Wholesale distribution of fresh produce, especially fruits, vegetables, dairy products and bread, is carried De Natuurwinkel and the other two groups out by a few major companies. For imported fruits mentioned above are the leading franchise and and vegetables the most significant are Odin, BICK, buying groups for organic shops in the Netherlands. van der Steen and Kroon. Udea BV is the principal Natuurwinkel currently has about 40 shops in the wholesaler for dairy products, frozen food and fresh country and is associated with a cooperative of 30 vegetarian products. other organic outlets in Belgium. Gimsel has over 30 stores in the Netherlands and Belgium, including it The distribution of dry organic foods in the new flagship supermarket in De Groene Passage in Netherlands is dominated by one major wholesaler, Rotterdam. The supermarket has 2,000 square metres Natudis, which has a turnover of f. 120 million and of selling space; other shops in the location include an has 130 employees. The company controls an organic butcher, a ‘natural’ interiors store, a fair trade estimated 80% of the dry goods market in the shop and an organic café. De Groene Winkel has Netherlands and is also the second most important about 10 outlets. wholesaler in the Belgian market after Reformwaren/Nonkels. Natudis is the exclusive Supermar kets used to be com para tively unim por tant distributor of numerous imported products carrying in the dis tri bu tion of organic foods, but their involve- foreign brands; it also sells a full range of ment in the organic trade has expanded con sid erably private-label products through its subsidiary in recent years and they now have an esti mated 25% Natuproducts. The raw materials for the latter of the market. Organic pota toes and other basic vege- products are bought in bulk and packed in-house or tables (onions, car rots, cabbage) are avail able in are processed and packed under contract by a third many super mar kets, and sales of dairy prod ucts, par- party. Among the important private labels are ticu larly the brand De Groene Koe of Zuiver Zuivel, Ekoland, Akwarius (EKO and Demeter), Fertilia and are growing the fastest. Taste, freshness, an accept - Molenaartje. able price premium and conti nuity of supply have been signifi cant fac tors in growing con sumer sales. The other main national wholesalers supplying dry Sev eral super market groups (Konmar, Vomar, Deka- groceries are De Nieuwe Band, De Rit and Terrasana. markt and De Nieuwe Weme) have expanded their Faan Zuidhorn supplies cheese. organic ranges to include eggs, bread, fruit juices, apple purée, conserved vege ta bles, tea, coffee and Retail outlets other dry gro ceries. In Feb ruary 1998, the domi nant super market chain Albert Heijn, which has 650 Organic and health food shops are the most stores, launched a wide range of organic prod ucts. important consumer outlets for organic foods in the Netherlands. They are losing some market share to Despite these positive trends some major supermarkets, especially in basic vegetables and supermarket chains are not yet involved in the dairy products, but retain control of an estimated 65% strategic marketing of organic foods, and decisions to - 70% at the market. Over half of their sales are fresh include organic versions of conventional food produce, and they dominate the retail distribution of products are made largely on purely commercial all dry groceries. The cooperative NWO, established grounds, i.e. their profitability per square metre of by the specialist retail and the wholesale trade in shelf space. The barriers to developing profitable 1997, aims to expand sales by improving efficiency sales (consumer resistance to high prices, lack of in the sector and reducing the price difference continuity of supply and the need for guarantees of between organic and conventional foods. About excellent quality) continue to be obstacles to the one-third of its stores, mainly former members of the increased participation of these supermarket chains in De Natuurwinkel, Gimsel and De Groene Winkel the organic trade. groups, were initially holders of NWO franchises. In due course, they and other NWO franchisees will all Farmers’ organic markets are held weekly in 15 trade under the name ‘De Natuurwinkel’ and will cities, and their umbrella organization expects this adopt a common product style and assortment and number to rise to between 40 and 50 cities by the year CHAPTER 9 – THE NETHERLANDS 215

2005. About three quarters of the produce sold is although trade contacts have indicated that there is a fresh and the markets perform an important function growing trend towards importing certain produce. in promoting the image of organic foods and offering This trend is likely to become more pronounced as a range of produce at considerably lower prices than mainstream manufacturers become more involved in the specialist shops. the organic sector.

Subscription schemes (the groentenabonnement) Among the leading specialist organic food have become important retail sales outlets for manufacturers or processors are the following: seasonal fresh fruits and vegetables. The bags of produce are distributed weekly to a growing number Bakery products Verbeek, van der Westen, Keune of consumers through about 250 points of sale. Chocolate Bonvita Conserves Balthussen, Bio-core Subscribers currently number between 35,000 and Dairy products Zuiver Zuivel, De Zwaluw, De 40,000. The main operators are Odin (the largest Dageraad, FEZ supplier), BICK, Konmar and a number of individual Honey products De Rit, De Traay Muesli De Halm, Natuproducts (Natudis), organic farmers. Mulder, BD Graan Nut pastes Horizon Other outlets for limited ranges of organic foods Processed foods De Vuurdoop, Joannusmolen include specialist organic butchers, reform and health food shops (which sell mainly dry foods and food Important mainstream processors now involved in supplements), conventional street markets, direct organic processing include: Koninklijke Numico NV farm sales and fair trade shops (wereldwinkels). (Nutricia) (baby foods), Remia (oils and fats), Marvelo (coffee and tea) and Renco BV (sugar and Food manufacturers sweeteners). Several major dairy companies and bakers are expected to introduce organic production Organic food manufacturers in the Netherlands tend lines in the near future. The Cosun group of to obtain their supplies of ingredients from domestic companies, including Suiker Unie (National Sugar and other European sources, including producers, Company), are encouraging producers to convert to importers and processors, who can provide organic methods. The renowned fruits and vegetable requirements according to specifications and ensure preserve company, HAK, has started an organic trial continuity of supply. They rarely import directly, programme.

Prospects

The Netherlands must be seen as a significant As indicated earlier in this chapter, Netherlands gateway for prospective exporters of organic foods traders are significant importers and re-exporters of interested in approaching the growing major markets bulk organic produce, especially non-seasonal fresh of northern Europe. The domestic market is small and fruits and vegetables, tropical fresh fruit, preserved consumes only a small proportion of total imports. Its fruit (concentrates, purées, etc.), grains, cereals, nuts, development will depend strongly on the rate of seeds, spices and herbs. These traders are highly expansion in supermarkets and the ability of experienced and are used to working with producers suppliers to offer organic produce to consumers at from the initial stages of conversion and certification price premiums they are prepared to pay. Although through to the final supply of food products. These supermarkets are introducing more organic products products meet the strict standards required both by the stores do not generally have a specific marketing European food safety legislation and by Netherlands concept for organic foods, and their primary and other European consumers. Prospective motivation is profitability per square metre, service to exporters are strongly advised to investigate the customers and preserving a publicly correct image. markets for specific products in close cooperation Fresh produce has the best near-term prospects in the with an established importer. domestic market. Annex I

Netherlands: selected addresses*

TRADERS/IMPORTERS/ Green, Fresh & Anywhere BV Rhumveld Winter & Konijn BV PACKERS/PROCESSORS Postbus 327 Postbus 29216 2990 AH Barendrecht 3001 GE Rotterdam Ariza BV Tel: +31-186 668 585 Tel: +31-10 233 0900 Overhorst 9 Fax: +31-186 668 588 Fax: +31-10 233 0574 5707 PP Helmond Tel: +31-492 528 364 Greenfood International BV Rijk Zwaan Nederland BV Fax: +31-492 545 151 Bellstraat 7 Postbus 40 3861 NP Nijkerk 2678 ZG De Lier De Traay Tel: +31-33 247 1030 Tel: +31-174 532 300 Fax: +31-174 515 334 Platinastraat 50 Fax: +31-33 247 1035 E-mail: [email protected] 8211 AR Lelystad (Organic seeds) Tel: +31-320 282 928 Horizon Natuurvoeding BV Fax: +31-320 282-028 Postbus 77 Simon Levelt BV 3400 AB IJsselstein A. Hofmanweg 3 Doens Food Ingredients BV Tel: +31-30 688 7730 2031 BH Haarlem Oranjestraat 40A Fax: +31-30 688 7142 Tel: +31-23 512 2522 Postbus 10 Fax: +31-23 512 2525 4515 ZG IJzendijke Koffiebranderij G. Peeze BV Tel: +31-117 302 020 Ringoven 36 Tradin Organic Agriculture BV Fax: +31-117 301 811 6826 TR Arnhem Latexweg 12 E-mail: [email protected] Tel: +31-26 362 2422 1047 BJ Amsterdam Fax: +31-26 361 3380 Tel: +31-20 407 4499 Do-It BV Fax: +31-20 497 2100 Prins Hendrikweg 19 Marfo E-mail: 3771 AK Barneveld Postbus 137 [email protected] Tel: +31-342 422 829 8200 AC Lelystad Web page: Fax: +31-342 422 192 Tel: +31-320 293 894 http://www.tradinorganic.com E-mail: [email protected] Fax: +31-320 232 096 E-mail: [email protected] Trouw BV Eosta BV Piekstraat 63-65 Postbus 132 Neuteboom BV 3071 EL Rotterdam 3980 CC Bunnik Aadijk 41 Tel: +31-10 486 6332 Tel: +31-30 656 6000 7602 PP Almelo Fax: +31-10 4886 0928 Fax: +31-30 656 6040 Tel: +31-546 864 062 E-mail: [email protected] Fax: +31-546 864 062 WHOLESALERS Euroherb BV Odin International BV Dynamostraat 12 Postbus 225 De Nieuwe Band 3903 LK Veenendaal 4190 CE Geldermalsen Noorderringweg 12 Tel: +31-318 543 288 Tel: +31-345 577 133 9363 TC Marum Fax: +31-318 542 458 Fax: +31-345 576 848 Tel: +31-594 644 3355 Fax: +31-594 643 385 Good Food Foundation E-mail: [email protected] Alike Last Renco BV Postbox 46 Postbus 219 De Rit Natuurprodukten BV 6600 AA Wijchen NL-3850 AE Ermelo Retsezijstraat 4 Tel: +31-341 560 210 Tel: +31-24 641 5304 4011 JP Zoelen Fax: +31-341 562 913 Fax: +31-24 641 5314 Tel: +31-344 681 653 E-mail: [email protected] E-mail: [email protected] Fax: +31-344 681 404

______* List not exhaustive. CHAPTER 9 – THE NETHERLANDS 217

Natudis BV (Natuproducts) GOVERNMENT OFFICES AND Stichting Biologica - Platform Postbus 376 Biologica 3840 AJ Harderwijk OTHER ORGANIZATIONS Postbus 12048 Tel: +31-341 464 211 3501 AA Utrecht Fax: +31-341 425 704 B-D Association Tel: +31-30 230 0713 (Vereniging voor Fax: +31-30 230 4423 TerraSana NL BV Biologisch-Dynamische Landbouw) E-mail: [email protected] Postbus 70 Postbus 17 http://www.platformbiologica.nl 2450 AB Leimuiden 3970 AA Driebergen (Umbrella association for organic Tel: +31-172 503 338 Tel: +31-34 353 1740 farmers, traders, retailers) Fax: +31-172 503 355 Fax: +31-34 351 6943 E-mail: [email protected] http://www.ecomarkt.nl/bdvereniging Udea BV Stichting Max Havelaar Postbus 478 Lucasbolwerk 7 5400 AL Uden CBI - Centre for the Promotion of 3512 EG Utrecht E-mail: [email protected] Imports from developing countries Tel: +31-30 233 4602 http://www.ekoland.com WTC Beursbuilding, 5th floor Fax: +31-30 233 2992 Postbus 30009 E-mail: [email protected] 3001 DA Rotterdam http:www.maxhavelaar.nl Tel: +31-10 201 3434 RETAILERS Fax: +31-10 411 4081 E-mail: [email protected] Albert Heijn Project Organic Products Dutch Food Inspection Service ORGANIC Proviancialeweg 11 Ministry of Welfare, Health and PROJECTS/CONSULTANCY Postbus 3000 Cultural Affairs 1500 HA Zaandam Postbus 5840 Tel: +31-75 659 2218 Agriterra 2280 HV Rijswijk Willemsplein 44 Fax: +31-75 659 8644 Tel: +31-70 340 5060 E-mail: [email protected] 6811 KD Arnhem Fax: +31-70 340 5435 Tel: +31-26 445 5445 De Nieuwe Weme BV (Consultancy/development of Fair Trade Association organic projects) Postbus 90 Beesdseweg 5 8440 AB Heerenveen Postbus 115 Tel: +31-513 630 333 4100 AC Culemborg Fax: +31-513 650 170 Agro Eco Consultancy Tel: +31-345 545 151 Postbus 176 Fax: +31-345 521 423 DekaMarkt BV 3970 AD Driebergen Postbus 86 Tel: +31-343 536 137 1940 AB Beverwijk Good Food Foundation Fax: +31-343 531 700 Tel: +31-251 276 600 PO Box 219 E-mail: [email protected] Fax: +31-251 276 680 3850 AE Ermelo http://www.agroeco.nl/agroeco/ Tel: +31-341 560 210 (Organic agriculture consultants) Konmar BV Fax: +31-341 562 913 De Werf 13 E-mail: [email protected] 2544 EH Den Haag (Agricultural production, consulting, Koppert BV Tel: +31-70 321 5121 training/education) Veilingweg 17 Fax: +31-70 329 1174 2651 BE Berkel-En-Roderijs Ministry of Agriculture Tel: +31-10 514 0444 NWO (De Natuurwinkel/Gimsel/ PO Box 965 Fax: +31-10 514 5203 De Groene Winkel) 6040 AZ Roermond E-mail: [email protected] Postbus 193 Tel: +31-475 355 555 (Supplier of biological systems) 3840 AD Harderwijk Fax: +31-475 318 939 Tel: +31-341 464 211 (Import licences for organic foods) Fax: +31-341 464 204 LEI-DLO E-mail: [email protected] SKAL Agricultural Economics Research Postbus 384 Institute Vomar Voordeelmarkt BV 8000 AJ Zwolle Postbus 29703 Postbus 217 Tel: +31-38 426 8181 2502 LS The Hague 1970 AE IJmuiden Fax: +31-38 421 3063 Tel: +31-70 330 8341 Tel: +31-255 563 700 E-mail: [email protected] Fax: +31-70 361 5624 Fax: +31-255 521 649 http://www.skal.com E-mail: [email protected] Annex II

Countries in which SKAL carries out organic inspection services

Belgium India Switzerland Bulgaria Indonesia The former Yugoslav Republic of Costa Rica Italy 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 CHAPTER 9 – THE NETHERLANDS

SUPPLEMENT: LIMITING VALUES FOR HERBS AND SPICES

Bundesgesundheitsblatt Nr. 3 Guide value (CFU/g) Maximum value (CFU/g) Aerobic plate count 1.0 x 106 1.0 x 10 7 Anaerobic plate count – – Escherichia coli 1.0 x 104 – Microbiology Staphylococcus aureus 1.0 x 102 1.0 x 10 3 Bacillus cereus 1.0 x 104 1.0 x 10 5 Clostridium 1.0 x 104 1.0 x 10 5 Yeasts and fungi 1.0 x 105 1.0 x 10 6 Salmonella/25g negative negative ‘Aflat. Verordn. (Anlage zu JJ Detection limit Maximum value 1en 2) Stand 06-11-90’ (German) (mg/kg) (mg/kg) B1 0.1 2.0 Aflatoxin B2 0.1 G1 0.15 G2 0.1 S B1, B2 , G1, G2 4.0 ‘BGVV; Richtwerte für Schadstoffe * Maximum value in Lebensmitteln, BGB 5-96’ (mg/kg) (German) Heavy metals Cd 0.10 Pb 2.00 Hg 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 Brown flax Olive Cane sugar raw Amaranth Cress Palm Glucose syrup Barley Fenugreek Safflower Maple syrup Buckwheat Mustard Sesame Buckwheat cracks Mustard, oriental Sunflower BAKERY FAT Buckwheat flour Mustard, yellow Sunflower, deodorized Cream fat Buckwheat hulled Poppy Pastry fat Buckwheat whole Pumpkin BEANS Pastry margarine Corn Safflower Aduki beans Millet Sesame Black beans DAIRY PRODUCTS Oats Sesame, hulled Brown beans Milk powder Oats hulled Sunflower, hulled Chickpeas Whey powder Popcorn Yellow flax Flageolets Demineralized Quinoa Green lentils Rye NUTS Green peas FRESH FRUIT Wheat Almonds Kidney beans Baby bananas Wheat, durum Almonds flaked Lentils, Dupuis Bananas Cashew nuts Mung beans Grapefruit RICE Coconut grated Red lentils Pineapple Basmati brown Hazelnuts Soybeans Red bananas Basmati white Peanuts Split beans Extra long Walnuts White beans FROZEN FRUIT AND Long-grain Yellow peas CONCENTRATE Pre-cooked DRIED FRUITS Acarillo purée Red Apricots COFFEE/COCOA Apple concentrate Round Apricots tinned Carob powder Apples Sweet Banana Chocolate chunks, dark Apricot purée White Currants Chocolate drops, dark Apricots Wild Dates chopped Chocolate powder, dark Banana purée Figs Chocolate powder, milk Banana slices FLOUR/STARCH Figs chopped Cocoa beans Bilberries Barley flakes Figs paste Cocoa butter Blackcurrants Carob powder Mango Cocoa liquor Blackberries Cheese powder full fat Papaya Cocoa powders Elderberries Cheese powder low fat Pineapple Dark couverture Frozen bananas Corn flakes Raisins Hazelnut paste Mango purée Corn semolina Raisins (Blue Thompson) Milk couverture Orange concentrate Corn starch Sultanas Raw coffee Orange juice Demineralized whey powder Papaya purée Milk powder OIL-SEEDS SEASONINGS Passionfruit juice Oat flakes Rape Alcohol vinegar 10º Peaches Potato starch Safflower Cheese powder Pears Rice flakes Sesame Cider vinegar Pineapple Rye flakes Soya beans Sea salt coarse Pineapple juice Soy flour enzymatic Sunflower Sea salt fine Plums Soy flour toasted Shoyu Raspberries Soya granulate ANIMAL FEED OILCAKES Tamari Raspberry purée Wheat flakes Safflower cakes/pellets Vanilla powder Redcurrants Wheat flour 100% Sesame cakes Rose-hips Wheat flour 70% Soya flour SWEETENERS Sour cherries Whey powder Sunflower cakes/pellets Agave syrup Strawberries Beet syrup Strawberry purée SEEDS OILS Tomato concentrate Alfalfa Coconut Chapter 10

SWEDEN

Introduction

Sweden has an area of 450,000 square kilo me tres. Since 1995, Sweden has been a full member of the Half of the land is cov ered with forest, and less than Euro pean Union. Its share in the EU’s popu la tion is 10% is farm land. 2.3%, which means that it is one of the Union’s smaller national mar kets. How ever, the Nordic The country has a popu la tion of 8.9 million, with countries – Den mark, Norway, Finland, Ice land as about 85% living in the south. The three largest cities well as Sweden – are increas ingly regarded as a home – Stockholm, Göteborg and Malmö – account for market for com pa nies in the Swedish food trade and approxi mately 30% of the total popu la tion. Since industry. These coun tries have a total of 23.5 mil lion 1990, the popu la tion has grown by 280,000 (+3.3%), inhabi tants. including a sub stan tial number of immi grants.

Supply and demand

The lack of official data makes it dif fi cult to give product groups in which no organic items are exact fig ures on the market for organic prod ucts. cur rently avail able. Never the less, an attempt has been made in this chapter to pro vide an esti mate of market size, mainly In the market for organic prod ucts, the largest shares based on infor ma tion from trade sources. These were taken by dairy prod ucts and fats (more than 2% estimates, which cover direct con sump tion in both by value), fresh produce (1%) and coffee, tea and the retail and restau rant sec tors, are given in cacao (1.1%). table 10.1. The bulk of the organic prod ucts mar keted in Sweden As shown, con sump tion of organic foods amounted is cer ti fied by KRAV, the Swedish Organic Agri cul ture in 1997 to roughly 50,000 tons in volume and SKr Asso cia tion. At present about 2,200 food prod ucts 1,000 mil lion in value ($130 mil lion). Con sump tion carry the KRAV certi fi ca tion symbol; of these is at present domi nated by dairy prod ucts and fresh prod ucts, around 10% are imported. In 1997, 200 new pro duce, which together account for about 70% of the KRAV prod ucts were intro duced into the market. volume and 65% of the value of the market. Domestic production The market share of organic prod ucts has not yet reached 1% of total food sales. In 1997, the esti mated Sweden has a compara tively large area of organic shares were 0.6% by value and 0.7% by volume. It farmlands. In 1997, about 205,000 hec tares of should be noted that these fig ures cover all farm land received envi ron mental sup port from EU con sump tion of food and bev erage in both the retail and national authori ties; this area is equiva lent to and restau rant sec tors, including con sump tion of 7.3% of the coun try’s total farm land. A gov ern ment CHAPTER 10 – SWEDEN 223

fluid milk, which amounted to 23,000 Table 10.1 Sweden: consumption of organic foods, by volume and by value, 1997 tons in 1997, or 3% - 4% of the total fluid milk output. In addition, small Volume (tons) Value (SKr million) quanti ties of organic yoghurt, cream, Product group Total % share Total % share butter, hard cheese and dried milk are pro duced. Total 50 000 100 1 000 100 of which: Dairy products and fats a/ 29 000 58 500 50 The dairies are sup plied by about 350 Fresh fruits and vegetables 11 000 22 150 15 KRAV- certified dairy farms. In 1997, Processed fruits and vegetables 2 000 4 50 5 these farms deliv ered approximately Cereal and bread products b/ 4 000 8 70 7 62,000 tons of organic milk to the Meat and cured meats 1 500 3 100 10 dairies, which make up 2.4% of all milk Fish and crustaceans - 0 - 0 deliv eries. The aim is to raise this share Coffee, tea and cacao 800 2 70 7 to 5% by the year 2000. The Swedish Other food products c/ 1 500 3 50 5 dairy industry is domi nated by five Beverages d/ 200 0 10 1 farmer-owned coopera tives. Of these Source: Fox Research, based on trade sources. Arla is the largest, with about 60% of a/ Including eggs. both dairy produc tion and the market. b/ Including rice and pasta. The dairy coop era tives are also the c/ Ice-cream, chocolate, confectionery, sauces, sugar, spices, salt and honey. leading pro ducers of juices and nec tars. d/ Mineral water, soft drinks, beer, wine and spirits. Meat goal is that by the year 2000, 10% of the farmlands should be using organic methods. Domestic produc tion of organic meat and cured meats is not well devel oped. Pro duc tion in 1997 can According to Swedish regu la tions, the output of these be esti mated at about 1,500 tons, which means that farm lands may be mar keted or sold as ‘organic’ only just about 0.2% of all cattle, pig and lamb if pro duc tion has been cer ti fied by either one of the slaugh tering is organic. The market demand is far two official national organi za tions control ling bigger: it is thought that pro duc tion of organic cattle organic farming: KRAV and the Swedish Demeter and lamb needs to double and that of organic pigs Asso cia tion. KRAV is the domi nant control should rise at least ten fold. organi za tion. The main sup plier of organic beef, pork and lamb meat The area under KRAV- controlled organic farming is Swedish Meats, a newly formed meat- processing amounted to 118,000 hec tares in 1997, cor re sponding com pany owned by the coun try’s large slaughtering to 3.4% of the total farm land. Most of this land was coopera tives. Swedish Meats and its mar keting used for growing animal feed. The areas under sub sidiary, Scan Foods, con trol about 80% of the various other organic crops, total ling 33,000 hec tares, Swedish market for beef, pork and lamb. Organic meat were dis trib uted as fol lows: cereals 30,000 hec tares; prod ucts are also sup plied by Ekokött (EcoMeat). vege ta bles and fruits 2,000 hectares; and oil plants 1,000 hec tares. The currently small share of organic meat is mainly due to its low availability and high price dif fer en tial. In total, KRAV had 3,000 affili ated farms. Of these, The leading coop era tives within Swedish Meats report there were 2,746 plant culti va tors; 1,126 livestock that the goal for the near future is to increase pro duc - farmers; 350 milk pro ducers; 67 egg pro ducers; 70 tion of cattle from 5,000 to 7,500 head, pigs from bee- keepers; 30 mush room growers; and 162 5,000 to 20,000 head, and lamb from 5,000-6,000 to green house pro ducers. 10,000 head. As a conse quence, the share of organic meat will undoubt edly rise within the next few years. Dairy products Domestic produc tion of poultry prod ucts is The dairy industry is by far the most impor tant domi nated by Scan di na vian Poultry, which has domestic pro ducer of organic foods. Since 1990, the processing activi ties in both Sweden and Den mark. output of organic dairy prod ucts has risen by around Organic chicken was intro duced into the Swedish 30% yearly. Current produc tion mainly focuses on market in 1997, but sales remain insig nifi cant. 224 CHAPTER 10 – SWEDEN

Eggs prod ucts are green peppers, lettuce, and herbs and spices. It is esti mated that organic toma toes account Of Swe den’s 5.7 mil lion laying hens, about 2.5% or for 5% of all toma toes pro duced in Sweden. 140,000 are organic. The market requires at least twice that number. There is also consid er able Other products consumer interest in eggs from farms using alterna tive produc tion methods. The so-called The other domestic organic prod ucts con sist mainly ‘scratch eggs’ (pro duced by laying hens that can of sugar and, to a lesser extent, oil-seeds. The scratch freely indoors or out doors) have already cul ti va tion of organic sugar beets is carried out by gained over 20% of the total egg market. some 100 farmers. In 1998, they should have pro duced about 2,000 tons of sugar, equiva lent to Cereals 0.6% of the coun try’s total sugar pro duc tion.

Produc tion of organic cereals amounted to about Processed foods 20,000 tons in 1997, of which 40% was exported. Of the pro duc tion, about half con sisted of wheat and the Sweden is a fairly large manufac turer of proc essed other half of barley, oats, rye and yellow split peas. The organic prod ucts. These include canned fruits and main domestic users are flour mills and animal feed vege ta bles; juices; fruit pre serves (jams, mar ma lade, manu fac turers. A small pro por tion of the peas is also fruit syrups); dried vegeta bles (peas and beans); dis trib uted to food packers and food manu fac turers. frozen prod ucts (vege ta bles, fruits, berries, ready- to-eat meals, ice- cream, etc.); baby food; break fast Mills and animal- feed manu fac turers import cer tain cereals, gruel and porridge; plain bread, bis cuits, quali ties of cereals, mainly those not pro duced in the crackers, crisp bread; herbs and spices; potato snacks; country. tomato ketchup and other sauces; roasted coffee; and beer. The list is expanding fast and will undoubt edly The output of organic flour was esti mated at 7,000 - cover many more food product groups in the near 8,000 tons in 1997, equiva lent to a market share of future. about 1%. How ever, this share has cer tainly risen since: for 1998, Juvel, the main producer of organic Exports flour, had fore cast a dou bling of its own output from 5,000 to 10,000 tons. Organic foods account for only a frac tion of Sweden’s food exports. The main organic export Organic flour is pro duced for both consumers and prod ucts are cereals such as oats and malt for manufac turers of organic breakfast cereals, bread, pro ducing beer. The other impor tant export items are pasta, baby food, gruel, etc. With increased jams and frozen ber ries. Organic beef is a new export avail ability of organic flour, the output of these food product. Produc tion of organic pork for export to items should be sub stan tially higher in the future. other EU coun tries has started.

Vegetables, fruits and berries Imports

About 1,700 hec tares were planted to organic Sweden is more or less self- sufficient in basic foods vege ta bles in 1997, of which two- thirds were devoted like dairy prod ucts, meat, bread, cereals and sugar. Its to pota toes and car rots. Other impor tant prod ucts are primary imports in the food sector con sist of goods beet root, onions and cabbage. Owing to climatic that are not pro duced domes ti cally (such as citrus and con di tions, prod ucts such as toma toes and cucumber tropical fruits, nuts, green coffee, spices and wine) are dif fi cult to grow organi cally in Sweden. and those that are pro duced only part of the year (e.g. vegeta bles, deciduous fruits and ber ries). Imports of Organic fruits and berries were pro duced on about these items depend on how much local produce is 200 hec tares. Half were planted to straw ber ries. available or when importing is more favour able. Sweden has a sig nifi cant import trade in packaged Organic greenhouse produc tion cov ered 56,000 prod ucts, i.e. canned, dried and frozen foods. All in square metres in 1997, of which 90% was devoted to all, imports account for an estimated 20% of the toma toes and cucumber. The other greenhouse overall Swedish food market. CHAPTER 10 – SWEDEN 225

Market requirements by major product group

Since organic foods are not recorded separately in the Mali), pineapple (from Brazil) and strawberries (e.g. trade statistics, it is impossible to give accurate from Israel). Newly introduced products include figures on imports. However, it is estimated that plums, nectarines, peaches, melons, grapes and about 200 different organic food products were papaya as well as several species of berries. imported into Sweden in 1997, mainly within the following product groups: Organic bananas were introduced into the market in 1994. In 1997, imports increased 400% to 900 tons; a q Fresh fruits and vegetables; rise to 1,500 tons was expected in 1998,which would have been equal to about 1% of the overall market for q Dried fruits and vegetables; bananas. As supplies increase and prices go down, this share could reach at least the 5% mark in the near q Packaged foods; future. q Raw materials and ingredients for the food Owing to inadequate supplies, imports of organic industry (mainly green coffee, herbs and spices, citrus fruits remain insignificant, well below 1% of cereals, and vegetable oils and fats). the total volume. The current product range consists of oranges, grapefruit and lemons. There is a demand Fresh produce and green coffee account for the for other citrus fruits, especially clementines and largest share in imports, both by volume and by satsumas. Since citrus fruits have a big market in value. Sweden, fruit importers generally regard organic citrus fruit as having a large potential.

Fresh fruits and vegetables Interest in tropical fruit is growing. Consumers are curious about new and exotic products, especially if The total Swedish market for organic fresh fruits and they are sold at moderate prices so that they can be vegetables amounted to about 11,000 tons or SKr 150 sampled at not too high a cost. Trade sources are million in 1997 ($20 million). This means that therefore certain that there is a market potential for organic fresh produce had a market share of 0.8% by organic tropical fruits in Sweden. volume and 1.0% by value. Another product in demand is avocado. The market Consumption of organic fruits amounted to around share of organic avocado has already reached 20% in 2,000 tons in 1997, equivalent to a market share of one of the leading supermarkets in central 0.4%. Consumption by value amounted to about SKr Stockholm. This figure would have been higher had 50 million ($6.5 million), or 0.6% of the market. there been more supplies.

The Swedish market for organic fresh fruits is fairly Consumption of organic vegetables amounted to an new, which also explains why the market share is estimated 9,000 tons in 1997, equivalent to 1% of all still below 1%. However, fruit importers say that if vegetables consumed. In terms of value, the market more supplies were available, this share would rise was worth SKr 100 million ($13 million) or 1.3% of substantially. In order to expand the market for the total. organic fruit, more suppliers are needed, especially those that can offer products during more than one Potatoes had about half of the market for organic season. vegetables in 1997, i.e. 4,500 tons. This means that organic potatoes have obtained 3% - 4% of the Most of the fruits consumed are imported. The largest overall market for fresh potatoes. Organic carrots are import of organic fruits consists of bananas from the also important, and they are thought to have attained Dominican Republic. Among the other import items a share of 10% of the entire market for carrots. Both are oranges, grapefruit and lemons (from Israel), these items are mainly supplied by domestic growers. apples (from France, Italy, Argentina, Chile), peaches The only real potential for suppliers outside Sweden (from France), avocado (from Israel, South Africa), probably arises during April and June, just before the kiwi fruit (from New Zealand, Italy), mango (from domestic harvest begins. 226 CHAPTER 10 – SWEDEN

Among the other important organic vegetables and trade estimates, consumption amounted to just 2,000 herbs are tomatoes, cucumber, lettuce, onion, tons or SKr 50 million in 1997. cabbage, mushrooms, paprika and fresh herbs. There are no official figures available, but trade sources The Swedish market for dried organic fruits and estimate current imports of these products at 1,000 - vege ta bles is currently modest. Of the market, 1,500 tons per year. (esti mated at around 100 tons in 1997), household con sump tion accounts for 70% and indus trial use for The domestic growing season for vegetables 30%. Importers pre dict that as sup plies increase, the generally starts in June and ends in August or market for dried organic fruit and vege table prod ucts September. During this period it is normally difficult will grow sub stan tially. for foreign suppliers to compete with domestic growers. This is especially true for items such as All dried fruits consumed in Sweden are imported. Of lettuce, cucumber, cabbage and onions. these, the most important are raisins, dates, figs, plums, apricots, apple flakes and mixtures of dried Owing to climatic conditions, organic tomatoes are fruits. There is a demand for other dried organic difficult to grow economically in Sweden. This item products such as citrus fruits, bananas, papaya, is therefore imported the year round. By contrast, mango and other tropical fruit, either for use in cereal problems of shelf-life make organic products like mixtures, diary products or to be sold as sweets. A lettuce, cabbage, celery, asparagus and eggplant range of imported organic nuts is also consumed, (aubergines) difficult to import into Sweden. including almonds, cashews, hazel-nuts, walnut kernels and macadamia nuts. The best market potential is for vegetables and herbs that are not produced in the country, such as paprika The present range of organic dried vegetables mainly and artichokes, and for products that are not yet consists of domestically grown yellow split peas and imported. brown beans. There are also imports of chickpeas; dried kidney, mung, aduki and other beans; lentils; There is growing demand for fresh organic herbs (i.e. onion and garlic products; desiccated coconut; and basil, thyme, tar ragon, cori ander, savory, mar joram, soy products (including roasted soy beans). oregano and rose mary), as well as consumer- packed mixed and sliced let tuce. The market for alter na tives The market for other canned and preserved fruits and to pota toes, such as sweet pota toes and cas sava, has vegetable products amounted to about 700 tons expanded in recent years, which means that there (SKr 20 million or $2.6 million) in 1997. should also be a market for the organic forms of these items. Organic canned fruits are rare and are much sought after. The most popular conventional items are Processed fruits and vegetables pineapples, peaches, pears and mixed fruits, which means there should also be a market for their organic The market for processed organic fruit and vegetable versions. Since all canned fruits consumed are products is in general little developed. According to imported, there is an obvious potential here.

Table 10.2 Sweden: market for processed fruits and vegetables, by quantity and by value, 1997

QUANTITY (tons) VALUE (SKr million) of which: Organic of which: Organic Product group Total Value Quantity % share Value % share Total 515 100 2 000 0.4 11 150 50 0.5 of which: Dried fruits and vegetables 13 700 100 0.7 320 5 0.6 Canned fruits and vegetables a/ 231 300 700 0.3 5 680 20 0.4 Juice and fruit beverages 178 200 500 0.3 2 220 10 0.5 Frozen fruits and vegetables 76 700 400 0.5 1 700 10 0.6 Potato flour, chips, etc. b/ 20 600 100 0.5 1 230 5 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. CHAPTER 10 – SWEDEN 227

The main organic fruit preserves are jams, on the market since 1995. Potato-based products are in marmalades and apple sauce. Jam, an important general marketed by domestic manufacturers, which ingredient in many Swedish dishes, is made mostly means that it is a difficult product area for exporters to from domestically grown berries, such as cowberries, enter. However, snacks based on other raw materials strawberries, raspberries, blueberries, blackcurrants (such as apple, corn, plantain and cassava) should have and cherries. The share of imports of marmalades is a much bigger potential. far larger, since they are mostly based on fruits not grown in Sweden. Cereal and bakery products

Canned vegetables are mostly imported. The main Cereal products, such as flour, breakfast cereals, rice, import items are tomato products, mushrooms, peas, pasta and bread, have a large share of the Swedish beans, yellow corn, asparagus, olives and capsicum. diet. However, even though there is an abundance of However, preserved vegetables, such as cucumber organic cereal products, their combined market share and beetroot, are mainly supplied by domestic is still rather low (about 0.5%), partly because of their manufacturers. high prices.

The market for organic juice and other beverages Wheat, rye, oats and barley are the main cereals used made from fruits and vegetables amounted to an by domestic flour mills and animal feed estimated 500 tons (SKr 10 million) in 1997. These manufacturers. Most supplies are of domestic origin, correspond to market shares of 0.3% by volume and even though imports have increased in recent years. 0.5% by value. The main import suppliers are Canada, the United States and Hungary. Manufacturers of breakfast The organic juices found in Sweden today are mostly cereals also use other processed grains. There is a made from carrots, beetroot, mixed vegetables and growing consumer interest in the various varieties of cereals. This means that there should be a large flour and grains, such as quinoa, polenta (maize demand for other – and more common – types of semolina), couscous, spelt, bulgur and amaranth. juices, such as orange, grapefruit, apple, lemon, apricot, grape and mixed juices (like apple and Most of the trade is carried out by a specialized mango, apple and carrot). Almost all fruit juices and company, Eco Trade, which in 1997 handled about nectars are imported in bulk and are repacked for the 20,000 tons of organic cereals. The company foresees consumer market by domestic manufacturers. continued demand for basic organic cereals and for other grains, especially if they can claim a high Fruit syrup (which is diluted by the consumer with nutritional value. tap water) is one of the most popular Swedish beverages. The import share is rather low, since a The market for organic bread has grown substantially large part of the supply is based on domestic apples or in recent years; today more than 50 different types of berries. However, fruit squash produced from bread are sold in Sweden. The current product range imported citrus fruits is also consumed. mainly consists of Swedish types of soft and crisp bread. There is also a demand for biscuits (including The market for frozen organic vegetables amounted digestive biscuits) and cookies. Examples of to about 400 tons in 1997. The range includes potato imported bread products are rice cakes and frozen products, spinach, cauliflower, broccoli, peas, haricot plain bread (baguettes and other products). beans, yellow corn, carrots, leeks and certain vegetable mixtures. Very few products (cauliflower, Rice and pasta prod ucts have a rap idly expanding mixed vegetables) are at present imported, and this market. Organic rice is imported both pack aged and only from Denmark. in bulk from sev eral coun tries, including Italy, Thai- land and the United States. The most com monly used The range of organic frozen fruit on the market is so types are: long- grain white pol ished rice for boiling, far not extensive and consists of just a few products, and round- grain white pol ished rice for gruel and des- mainly domestically grown berries. However, serts. Other types are also becoming popular, such as organic frozen fruits and berries are used by the food aviori rice (Italian), jas mine rice and bas mati rice, as industry for making jams and fruit drinks. well as pre-dried, fast-cooking rice. Brown rice is also sold. Roasted, round- grain hulled rice is a Organic potato snacks and similar products have been popular ingre dient in break fast cereals. 228 CHAPTER 10 – SWEDEN

There are several types of organic pasta on the increased sales in recent years. White, red, and market, such as spaghetti, lasagne and noodles. balsam vinegar are imported. About 60% of the supplies are normally imported. Other organic condiments such as salt, mustard, Coffee and tea dressings, and ketchup and other sauces, are much in demand. Among recent organic introductions are Sweden has one of the highest per capita sesame salt, chilli sauce, pesto and rucola sauces, soy consumption rates for coffee in the world. The sauce, sesame paste (tahini) and tofu products. country’s roasters use only the highest qualities of arabica coffee. Practically all of them offer organic The Swedes are among the three highest per capita coffee, some under fair trade labels. consumers of herbs and spices within the European Union. Two domestic manufacturers – Nordfalks Sales of organic coffee have followed a highly (Santa Maria brand) and Kraft (Kockens brand) – positive trend since 1992, when it was first have 80% to 85% of the market. Both companies introduced. Sales in 1997 are estimated to have have recently introduced organic varieties of some of reached about 900 tons (equivalent to 1.2% -1.3% of the more popular articles. Additionally, the domestic the overall coffee market), valued at between SKr 80 food industry consumes an increasing amount of million and SKr 90 million. Inadequate supplies of herbs and spices. Of special interest are organic coffee of high quality are a big obstacle to the manufacturers of ethnic foods (e.g. Nordfalks, one of future growth of the organic coffee market. Europe’s largest exporters of Mexican specialities), which require items such as coriander, ginger, Roasted coffee is mainly supplied by domestic cinnamon, cloves and pepper. Sweden is an obvious roasters, but some quantities are obtained from potential market for exporters of organic herbs and roasters in Denmark and the Netherlands. The spices. domestic roasters import green coffee from many countries, of which the most important are Mexico, Sugar and syrup Nicaragua, Honduras, Guatemala, Costa Rica, Colombia, Peru, Brazil and the Dominican Republic. Organic sugar, obtained from sugar beets grown in Sweden, has been on the market for only a short Total imports of conventional tea have in recent years period. So far, the market response has been highly amounted to around 3,000 tons per year. Even though positive, partly because the difference between the organic tea from Sri Lanka and India has been on the prices of organic and conventional sugar is small. market for a few years, the market share remains small, under 1%. Flavoured and herbal varieties of Some quantities of non-refined organic cane sugar organic tea have recently been introduced. are obtained from Paraguay and Madagascar; raw syrup is also imported. However, import volumes are Vegetable oils, vinegar, and condiments, still rather low. spices and herbs Beverages The current range of organic vegetable oils and fats includes olive oil and sunflower oil, as well as Organic products have not penetrated the beverage margarine and palm fat for baking. Several types of market (for mineral water, soft drinks, beer, wine and oil-seeds are imported, especially linseed. New spirits) to any significant extent. Even where organic products are constantly added. One example is a new products exist, the quantities sold are almost series of sunflower oils flavoured with herbs (basil, negligible. thyme, tarragon and garlic). Nevertheless, the trade believes that if the tastes are There is a demand for organic oils (mostly soy oil, up to standard and the price differential is kept to a sunflower oil and rapeseed oil) for the domestic oils minimum (i.e. 10% - 15%), it should be possible to and fats industry, which is dominated by Karlshamns market organic beverages on a much larger scale, AB. Organic oil-seeds (e.g. rapeseed), copra and shea especially beer and wine. are also imported. A domestic brewery has entered into a joint venture Vinegar is another product group which has seen with a retailer to market organic beer in CHAPTER 10 – SWEDEN 229 supermarkets. Organic beer is brewed from organic therefore concentrate on complementary products, malt; conventional hops are used as organic hops are such as biscuits and meat snacks, which are normally not readily available. Sweden currently imports only imported. one type of organic beer, and this from Germany. The domestic animal feed industry imports large Five organic varieties of wine (three reds and two amounts of protein feed (mainly soy-meal and whites) are marketed in Sweden. Four are of French fish-meal) as well as molasses feed. Some cereals are origin and one is German. The first organic liquor on also imported. Owing to the planned expansion of the market was introduced at the end of 1998: this is a domestic production of organic dairy and meat Swedish type of flavoured vodka made from products, there is an apparent need for increased organically grown domestic wheat. It is interesting to imports of organic raw materials for the domestic note that this product is marketed mainly as a manufacture of organic animal feeds. ‘Chateau Aquavit’ of the highest quality, and not primarily as an organic product. Organic honey is today mostly of Swedish origin, but since domestic supplies are not sufficient to meet the Among the other organic bev erage prod ucts in the growing demand, imports have become rather market – of which many are imported – are fruit- significant. There is also an expanding market for based still drinks and several alterna tive products, honey flavours not produced within the country, such such as soy- and oat- based bev er ages. as orange honey.

Other product groups Cacao-based products have a comparatively large market in Sweden and the country is also a The other organic product groups marketed in considerable exporter of chocolate bars and other Sweden primarily comprise dairy, meat and animal cacao-based products. However, owing to inadequate feed products, as well as honey, baby food, and supplies of organic cacao, only a few imported cacao-based products and confectionery. organic chocolate and cacao-powder products are sold locally. The food industry imports small With the exception of cheese and of yoghurt to some quantities of organic cocoa powder and butter. A extent, the dairy market is entirely supplied by direct import trade in organic cacao with the domestic dairies. Since about 15% of the cheese Dominican Republic has recently begun. marketed in Sweden consists of imports, there is an obvious potential here for exporters of organic There is no current market for organic confectionery. cheeses. It should be noted that, while the Swedes But since some products within this category – such as have a preference for mild hard cheeses, soft, chewing gum and cough drops – can be associated moulded and fermented cheeses have in recent years with improved health, interest may grow in the future. also become popular. Organic baby food products have attained a large Foreign meat products are difficult to market in market share, as high as 10% for certain products. Sweden, and items of organic origin are no exception. Nonetheless, since baby food products are almost Nevertheless, since domestic production is still rather entirely supplied by domestic manufacturers, this is a undeveloped, there should be a market potential for very difficult product area for foreign suppliers to certain imported specialities, such as salami, spicy or enter. flavoured sausages, sliced delicatessen products, and French pâtés. There are currently no certified organic fish products in the Swedish market. However, KRAV has started Organic dog and cat food have been on the market for to implement rules for the certification of farmed and a very short time, but sales are highly promising. wild fish and crustaceans. Since fish and crustaceans However, all organic products are so far supplied by have a fairly large share in Swedish food domestic manufacturers. Furthermore, dry dog food, consumption, their organic forms should gain a the largest organic category, is mostly based on substantial part of this market in the near future. domestic cereals and imported proteins. Foreign suppliers of organic cat and dog food should 230 CHAPTER 10 – SWEDEN

Market characteristics

Market segments Market trends

There are three market segments for imported food According to several market studies, two out of three products in Sweden: the retail sector, the catering Swedes say they often purchase environmentally sector, and the domestic food manufacturing industry. friendly products, including foodstuff. About 40% buy organic foods from time to time, while 15% do it on a The retail sector accounts for 80% of direct food more regular basis. Surveys have also shown that consumption. Two subsectors can be identified: organic foods are especially preferred by young people general grocery stores and specialized food stores (aged 15-30 years) and families with young children. (including health food stores and ethnic stores). Another characteristic is that buyers of organic foods A market characteristic is that organic foods are sold are mainly found in the large metropolitan areas and predominantly through supermarkets and other in university towns. In the Greater Stockholm area, general grocery stores. Most of the larger grocery with about 1.5 million inhabitants, the largest fruit stores therefore have a wide range of organic foods in distributor reports that sales of organic fruits and their selections. vegetables now account for 5% of its total sales.

The retail market is dominated by three integrated A general problem with organic foods is the price retail and wholesale groups – ICA, KF and D&D. differential with the corresponding conventional These have 70% of the food retail sector. All three foods; this is especially true of newly introduced groups promote organic and other environmentally organic food items. Even though a few organic foods oriented products. are priced only slightly more than the conventional varieties, the price difference is generally between The health food sector comprises 800 stores. Even if 20% to 40% and often higher. To enlarge the market the specialized health food stores do sell organic for organic foods, the price difference should not foods, they increasingly concentrate on nutritional exceed 10%, according to trade analysts. products, supplements and vitamins. Furthermore, as a rule, health food stores do not sell fresh produce and Here are some examples of the price differential for dairy or meat products, a fact that also explains their various products: beef 20% - 25%, milk 15% - 20%, small share in organic food sales. wheat flour 70%, fresh potatoes 15% -50%, muesli (breakfast cereals) 15% - 25%, and coffee 0% - 20%. There are four national chains within the health food sector, Life (which holds about 30% of the market), It is generally believed that environmental awareness Naturapoteket, Hälsokraft and Hälsokost för Alla. among consumers will continue to be high. With increased availability of organic foods, which will The catering sector accounts for 20% of direct food lead to lower unit prices, the market for organic foods consumption in Sweden. However, organic food should grow substantially. It should also be noted that products remain uncommon on menus. In the larger three of Sweden’s largest supermarket chains – ICA, cities, a few restaurants specialize in organic and Gröna Konsum (KF) and Hemköp (D&D) – have all health food. Some municipal and regional institutions set sales targets for organic foods, which if (such as school canteens and day-care centres) have implemented, will expand the market four to five also started to provide organic menus. times. This means that within the near future, organic foods could account for 4% - 5% of total food The domestic food manufacturers produce about consumption in Sweden. 80% of the foods consumed in Sweden and are therefore an important target for foreign suppliers of Sales promotion and marketing organic foods. These manufacturers have been quick to adapt to new consumer trends, and offer both Even though food manufacturers and retail chains ethnic and organic food items. advertise their awareness of environmental issues and CHAPTER 10 – SWEDEN 231 their commitment to developing the market for active marketing efforts for a particular organic organic foods, individual organic food items are in product should be undertaken only when the parties general not actively promoted. One of the main involved can be absolutely sure that problems of reasons is the scarcity and irregular availability of availability and reliability of deliveries have been certified organic products. Sales promotion and dealt with. marketing activities include campaigns offering goods at reduced retail prices, which usually raises It is clear that when active marketing of specific sales of the promoted products four- to fivefold. It is organic food items becomes more common, it will also a fact that when specific organic products are substantially enlarge the market for organic food promoted, sales rise even higher. This means that products as a whole.

Market access

Food laws cur rent mem bers are drawn from the farming, trade, processing, animal protec tion, envi ron mental and EU regu la tions on food labelling, nutri tional infor - con sumer sec tors. ma tion, addi tives and food con trol are appli cable in Sweden, which is an EU member. How ever, during a The objectives of KRAV are: to formulate standards tran si tional period, some Swedish regu la tions may for organic production; stimulate the development of still be applicable. Addi tional infor ma tion can be methods of organic farming; inspect and certify obtained from the National Food Admin istra tion organic production; disseminate information on (whose address is given in the annex to this chapter). organic production; and promote organic production.

In order to be imported as organic products into All pro ducers that are mem bers of, and inspected by, Sweden or to be traded as such, these products have to KRAV are author ized to mark their organic prod ucts be certified by a control organization. KRAV, which is with the KRAV symbol. KRAV has the right to inspect owned by parties involved in the production and the han dling of these prod ucts at all stages, from distribution of organic products – i.e. growers, food cul ti va tion to the retail trade. The KRAV logo manufacturers, importers, wholesalers and retailers – indi cates, for instance, that vegetable prod ucts have issues the only organic label recognized by the been grown without any chemical pesti cides or Swedish retail trade. If other labels are used, they must fer til izers, that animal prod ucts come from animals be accepted by KRAV or comply with EU regulations. that are well taken care of and have free outdoor access, and that pro duc tion does not involve the use of However, a few import ers also sell products that are geneti cally modified organ isms. To guar antee these, certi fied by other control organi za tions. These KRAV inspec tors regu larly inspect farms, shops, include SKAL, FVO, Ovana, Ecocert and proc essing facilities, res tau rants, etc. KRAV is an EKO-BCS. active member of IFOAM.

Swedish control organizations In addition to crop production and animal husbandry, KRAV certifies the following: processing, distribution In line with EU regulations, the Swedish Parliament and handling, apiculture, cultivation of wild berries has designated two organic organizations, KRAV (the and mushrooms, import operations, shops, restaurants, Swedish Organic Agriculture Association) and the textiles, and the use of production inputs. Swedish Demeter Association, as official inspection bodies. Only KRAV-accepted import products can be sold as KRAV certified. KRAV works closely with the KRAV, the domi nant con trol organi za tion. KRAV is a IFOAM accreditation system in this respect. These coop era tive society consisting of 22 member products should have labels which clearly state the organi za tions. Any company or organiza tion with country of origin. Products that are sold unpacked nation wide cov erage and with an interest in obtaining should have the following information on the KRAV cer ti fi ca tion may become a member. Its covering invoices and delivery notes: country of 232 CHAPTER 10 – SWEDEN origin, name of the control body, and indication of may not con tain preserva tives, fungi cides or other approval by KRAV. chemical agents. All wrap ping and pack aging mate- rials should be envi ron mentally friendly. Import prod ucts may con tain addi tives made from KRAV-certified raw materials and using KRAV- KRAV also inspects and cer ti fies for eign com pa nies certified processes. Food addi tives such as sweet - which pro duce or package according to its stan dards eners, col ouring, pre serva tives, anti oxi dants, emul si- or those of IFOAM. In addition, it may enter into fiers, thickening agents and sta bi lizers must be col labo ra tion agreements with for eign inspec tion approved by both the National Food Admin istra tion bodies; the latter are evalu ated by KRAV, IFOAM or and by KRAV. A list of approved addi tives is pub - other third par ties. These agreements are reviewed lished annually. Wrap ping and pack aging mate rials every other year.

Distribution channels

The Swedish distribution system for organic foods ICA’s own label for organic products. The ICA consists of three different channels: integrated retail organic product range now includes fresh fruits and and wholesale groups; importers, agents and vegetables, fresh meat and cured meat products, wholesalers; and food and beverage manufacturers. deep-frozen products and packaged food products, such as flour and grains, yellow peas and crisp bread. Integrated retail and wholesale groups About 50 new organic products were introduced in As mentioned earlier, the Swedish food trade is 1997. Even though many product groups reported characterized by a relatively high degree of vertical large sales increases during the year (sales of organic integration between the wholesale and retail trade. fruits doubled and those of vegetables went up by No less than 70% of both the retail and wholesale 15%), the market share for organic products remains market is dominated by three trade groups, all of insignificant. The exceptions are carrots (which have which also import and distribute organic foods: ICA, a 10% market share) and baby food (7%). However, KF and D&D. an important decision was taken in 1997 to raise to 10% by the year 2000 the proportion of ICA sales of ICA Group organic products in the product areas where these products are available. The ICA Group is the largest retailer and wholesaler on the Swedish market for foods and other daily KF Group consumer items and holds about 35% of the market. In Sweden it has 2,100 independent retailers and is The KF Group, which consists of KF (the Swedish joint owner of ICA Handlarnas AB, which handles Cooperative Union) and 80 local retail cooperatives, the Group’s purchasing, distribution, marketing, holds about 20% of total sales in the food retail trade. retail development and financing operations. In early KF started to market organic food products in 1990. 1999, the Group merged with the Norwegian Sales have increased rapidly since and are expected company Hakon. The new ICA Group has more than to reach SKr 400 million in 1998. This means that KF 4,000 food stores in Sweden, Norway and Denmark holds between 35% and 40% of the Swedish market and is thus the largest retailing group in Scandinavia. for organic food products.

Of the 2,100 Swedish stores, about 500 have been The organic product range con sists of 350 prod ucts, granted special ICA environmental status; they carry of which 200 prod ucts are mar keted under KF’s own a wide assortment of environmental products. The brand for envi ron mental friendly prod ucts, Ängla - objective is to increase the number to 750 by the year mark. In 1997, sales of Ängla mark goods reached 2000. ICA also has about 100 stores that have been SKr 250 mil lion ($52.5 mil lion), corre sponding to certified as ‘ICA Environmental Stores’. 1% of all food sales.

ICA has launched some 200 organic food products, of During the two years to 1998, sales of Ängla mark which 70 are marketed under the SUNDA brand, prod ucts have risen by approxi mately 50% per year. Most of these prod ucts are sold with the KRAV logo, the Fauna brand. The brand is now used on around with the excep tion of prod ucts not cov ered by organic 20 products, including pasta, muesli, cornflakes, regula tions. Even though Ängla mark prod ucts are grains, rice, crisp bread, jam and preserved not priced higher than the equiva lent conven tional vegetable products. Importing of both organic and prod ucts, company policy dic tates that prod ucts conventional products is carried out by D&D Unil, car rying the brand have to be as profit able as other which coordinates its purchasing activities with brands. In 1998, organic prod ucts accounted for 1% United Nordic, a company co-owned by Dagrofa of total sales by value, but KF expects this figure to (Denmark), Unil (Norway) and Tuko Spar rise to around 5% within the next few years. In order (Finland). to reach this target, the Ängla mark selec tion has to expand strongly. The D&D chain with the largest assortment of organic products is Hemköp, owned by Axel The KF Group has 1,100 food stores in three retail Johnson. The chain has some 100 large supermarkets for mats: Gröna Konsum super mar kets, Prix dis count all over Sweden. Hemköp reports that in 1997 about stores, and Obs, B&W and Robin Hood hyper mar kets. 2.5% of its total food sales were organic. Its aim is to raise that figure to 10% by the year 2000. Gröna Konsum runs 450 stores, of which 200 are KRAV-certified to carry non- packaged fresh Importers, agents and wholesalers organic pro duce. Gröna Konsum, Swe den’s largest super market chain, holds 6% of the overall food The two largest importers and wholesalers of fresh retail market. Its share in the national organic market produce import organic products. Both companies are is far bigger at around 20%. In terms of value, its directly connected with the dominant retail groups. sales of organic foods reached SKr 200 mil lion in a recent year, equiva lent to 2.5% of its total food The importer and wholesaler Saba Frukt & Grönt sales; the goal is to raise this per centage to 10% by holds about 50% of the Swedish market for fresh the end of 1999. fruits, vegeta bles and flowers. About 60% of the com pany is owned by the American fruit and vege - Each retail chain within KF decides which ta bles group Dole Food Com pany; the other owners assortment to carry. To benefit from economies of are the D&D Group (25%) and KF (15%). The scale, all deci sions con cerning the Ängla mark brands catering sector is one of its impor tant cus tomers. – purchasing con trol, selec tion coordi na tion, logis tics, mar keting and quality con trol – are made Saba imports bananas through two subsidiaries, coop era tively. Banan-Kompaniet (Chiquita) and Skandinaviska It should be noted that KF imports only ready- Bananimporten (Dole, Fyffes, etc.). Another Saba packaged goods. All fresh produce is imported by subsidiary is FTK in the Netherlands, one of Europe’s Saba Frukt & Grönt, which KF partly owns. leading importers of tropical fruits.

D&D Group ICA Frukt & Grönt is part of the ICA Group and is the second largest importer and wholesaler of fresh fruits The D&D Group is a newly formed joint venture and vegetables in Sweden, of which it has a market between the wholesaling and retailing group Axel share of about 30%. Its main customers are food Johnson and independent retailers. The Group, which stores within the ICA Group. It carries a large started operations in early1999, now comprises both assortment of organic fresh produce. the wholesaling company and the retail group, which consists of 1,000 supermarkets and convenience Biodynamiska Produkter (BP), another important stores. It has about 18% of the overall market. company, is a specialist importer of organic products, both fresh and packaged. BP imports fresh produce Dagab is the principal wholesaler for several retail from other EU countries and from other countries in chains within the D-Group (Vivo, Spar, etc.), the Europe, Asia, Africa and Latin America. Besides Hemköp chain, and convenience stores. However, supplying other wholesalers (including Saba and fresh fruits and vegetables are mainly supplied by ICA), BP sells direct to supermarket chains and Saba Frukt & Grönt. Dagab started to market health food stores, as well as to the catering sector organic and environmental products in 1995 under and the food manufacturing sector. 234 CHAPTER 10 – SWEDEN

BP has a large range of packaged products of which a q Dagsmeja is a small specialized producer and substantial part is imported. The total range consists importer of organic cereal and other products. of more than 1,000 different organic products. q Ekokött (EcoMeat) is owned by the cooperative Other companies importing fresh organic produce are Scan Group; it distributes and markets domestic Direkt Frukt & Grönt, Alt-Grönt and Samodlarna. organic meat products. Samodlarna is mainly a buying and marketing organization for domestic farmers and gardens but it In addi tion to the above, various agents are active in also imports some products. the market. Some of them are also importers, and deal mainly with either raw mate rials for the food industry In addition, the following companies trade in organic or branded prod ucts, especially health foods and berries and mushrooms: bev er ages. q Norrfrys: wild berries; It should be noted that in addition to domestically q Olle Svensson: wild berries; based companies, a number of foreign groups operate in Sweden, mostly from Denmark and the q BjörnMat: wild berries and wild mushrooms; Netherlands. q Samodlarna: cultivated berries. The catering sector There are several specialized importers of packaged organic foods, of which the largest are Biodynamiska Distribution to the catering sector is dominated by a Produkter and Kung Markatta. Organic products are few large and specialized catering wholesalers, which also imported by a large number of companies engage to varying degrees in the import of organic specializing in certain product groups. Some foods. The most important of these groups are: companies are described below. q Servera (D&D Group); q Kung Markatta is a medium- sized whole saler and importer. The company sells 800 catego ries of q Meny (ICA Group); prod ucts (some of which are marketed under its own q Martin Olsson; label) and has the largest assort ment of KRAV- labeled prod ucts. It also markets produce carrying the q Service Grossisterna. fair trade label. About 60% of its sales are to the health food sector and 25% to super mar kets. Its sales Food and beverage manufacturers to super mar kets consist mainly of pasta, dried fruit, There are about 300 KRAV- certified domestic rice, seeds, oils, soy prod ucts, herbs and spices, and coffee (which is also fair trade labelled). Its other manufac turers producing organic food prod ucts. They include farmers’ coopera tives, large customers are restau rants and food manu fac turers. mul ti na tionals and family- owned compa nies, of which sev eral are small or medium- sized. A selected q Torfolk Gård produces and imports fruit list of KRAV- certified manu fac turers of organic preserves, chilli, pesto and other sauces, tomato foods and bev er ages is given below. products, vinegar and wine, among other products. q Sackeus is an importer of organic foods and Products Companies goods carrying the fair trade label, including coffee Baby food Semper, Nestlé (Café Organico), cacao, tea, peanut butter, honey and Cereal and bread products Cerealia (flour, cereals, plain bread), Juvel (flour, rice and spices. plain bread), Wasabröd (crisp bread), Göteborgs Kex (biscuits, cookies), Saltå Kvarn (flour, q Garbo Food imports and markets several grains, bread), SLR (feed) organic products such as olive oil, vinegar, mustard Dairy products and juices Dairy cooperatives: Arla, and pasta. Skånemejerier, Milko, NP, Norrmejerier Canned food, fro zen food, Procordia Foods (Orkla), Nestlé, q Biofood imports several products, including pre pared fruits and vege ta bles, Nutana, Scan Foods (Swedish po tato prod ucts, ready- to- eat Meats) vegetable oils, syrup, sugar, dried fruits, raisins, dishes seeds, pasta, and milk powder. CHAPTER 10 – SWEDEN 235

Products Companies raw materials or ingredients import all or part of their Herbs and spices Nordfalks, Kraft Freia Marabou requirements either direct or through importers. The (part of Kraft Foods) following wholesaling companies are listed as Coffee Kraft Foods (Gevalia/Maxwell/ KRAV-certified importers of organic raw materials Blå Mocca), Arvid Nordquist (Classic), Löfbergs Lila, Zoéga and ingredients: (Nestlé), Kaffebönan (Neuteboom), Karlbergs (Aroma) q Abr Lundberg Ice-cream Hemglass, Carlshamn Mejeri, q Contifood Smith & Co. SIA Glass Meat and cured meat products Scan Foods (Swedish Meats), q Appelkvist Fryseri (berries) Samfood q Oils and fats Karlshamns (oils and fats, feed), Eco Trade (cereals) Carlshamn Mejeri (margarine, ice-cream) q Verner Frang (cacao) Potato snacks Estrella, Chips OLW, Dalslands Chips For logistic, food safety and environmental reasons, Water, soft drinks, beer Åbro Swedish manufacturers generally prefer to buy their raw materials either from domestic growers and The food manufacturers using organic products as processors or from suppliers in nearby countries.

Market prospects

As shown, Sweden is a relatively large consumer of that are not produced in Sweden, such as citrus and organic foods, in particular of dairy products and tropical fruits, rice, green coffee, tea, cacao, and fresh vegetables, but also of many other food spices. Other product groups of interest are products. Furthermore, demand for organic products vegetables, deciduous fruits and berries, since the has increased significantly in recent years and domestic output is insufficient to meet demand. meeting that demand is a problem. That being said, There should be market opportunities for exporters of the market share of organic products has not yet processed food items, such as juices, canned fruits, exceeded the 1% mark. biscuits, pastas, snacks, oils, vinegar, condiments, honey and confectionery. Another product group Since organic foods are sold predominantly through with good prospects is organic fish and crustaceans, supermarkets, it is of interest to prospective suppliers farmed as well as wild. to note that the leading supermarket chains have all set high targets for their sales of organic foods. If Though most industry people seem to agree that reached, these would raise the current market share imports of organic food products will rise four or five times. Additionally, the catering sector substantially in the next few years, the comparatively has just recently started to show interest in offering high consumer prices may impede market their customers organic menus. This indicates that development. According to trade analysts, in order to within a few years organic foods could account for capture a significant market share, the price 4% - 5% of total Swedish food consumption. differential should not exceed 10%. However, it should be possible to market organic products priced The planned expansion of the organic food market at higher levels, but only if value added is associated also implies that new suppliers are needed, including with the product, such as quality, taste or suppliers abroad. This is especially true of products convenience. Annex

Sweden: selected addresses*

RETAIL GROUPS Biodynamiska Produkter (Roasted and instant coffee, PO Box 42 packaged foods) D&D Unil AB 153 21 Järna Anderstorpsvägen 22 Tel: +46 8 55170830 Zoégas Kaffe AB 171 78 Solna Fax: +46 8 55171337 PO Box 7073 Tel: +46 8 734 4416 (Green coffee; also imports fresh 250 07 Helsingborg Fax: +46 8 7357756 produce and packaged foods) Tel: +46 421 93300 E-mail: [email protected] Fax: +46 421 47680 http://www.dod-dagligvaror.se Kaffebönans Rosteri AB (Coffee roaster) Kvarngatan 13 ICA Handlarnas AB 784 63 Borlänge Fresh fruits & vegetables 171 93 Solna Tel: +46 243 23 95 60 Tel: +46 8 585 500 00 Fax: +46 243 23 31 89 AltGrönt AB Fax: +46 8 585 500 09 (Coffee roaster; also imports Vargmötesvägen 14 E-mail: [email protected] roasted coffee) 186 30 Vallentuna http://www.ica.se Tel: +46 8 511 700 60 Kraft Freia Marabou AB Fax: +46 8 511 763 64 KF (Fruits and vegetables) PO Box 15200, 104 65 Stockholm PO Box 615 801 26 Gävle Tel: +46 8 7431423 BananKompaniet AB Fax: +46 8 7431575 Tel: +46 26 656230 PO Box 27294 E-mail: [email protected] Fax: +46 26 106369 102 53 Stockholm http://www.kf.se (Coffee roaster; also imports herbs Tel: +46 8 6679160 and spices) Fax: +46 8 6613607 (Bananas) Kung Markatta AB IMPORTERS Hjälmarsberg Biodynamiska Produkter 705 90 Örebro PO Box 42 Animal feed Tel: +46 19 307300 153 21 Järna Fax: +46 19 320201 Tel: +46 8 55170830 Foderringen HB, Fori (Roasted coffee, packaged foods) Fax: +46 8 55171337 PO Box 814 (Fresh produce and packaged 721 22 Västerås Löfbergs Lila AB foods) Tel: +46 21 108100 PO Box 1501 Fax: +46 21 187291 651 21 KARLSTAD Direkt Frukt och Grönt AB Tel: +46 54 140100 Flintrännegatan 21 Vänfor HB Fax: +46 54 140135 211 24 Malmö PO Box 2093 (Coffee roaster) Tel: +46 40 180900 531 02 Lidköping Fax: +46 40 180901 Tel: +46 510 88757 (Fruits and vegetables) Fax: +46 510 21944 Merrild Coffee Systems AB PO Box 50594 Frukt & Grönsaksspecialisten 202 15 Malmö Coffee 256 69 Helsingborg Tel: +46 40 936010 Knut Påls Väg 8 Fax: +46 40 187869 Arvid Nordquist H.A.B. Tel: +46 42 201160 PO Box 1285 (Roasted coffee) Fax: +46 42 153727 171 25 Solna (Fruits and vegetables) Tel: +46 8 7991800 Sackéus AB Fax: +46 8 294162 Veterinärgränd 6 ICA Frukt & Grönt (Coffee roaster; also imports 121 63 Johanneshov PO Box 713 branded packaged foods) Tel: +46 8 915020 251 07 Helsingborg Fax: +46 8 912838 Tel: +46 42 189000

______* List not exhaustive. CHAPTER 10 – SWEDEN 237

Fax: +46 42 189288 Fax: +46 454 31375 Tel: +46 31 293650 (Fruits and vegetables) (Margarine, vegetable oils, Fax: +46 31 292943 ice-cream) (Packaged foods) Marianne’s Farm AB Dalsgård 2393 CHE-BE Trading AB Gösta Appelkvist Fryseri AB 262 92 Ängelholm PO Box 247 Skansen Tel: +46 422 07133 151 23 Södertälje 272 36 Simrishamn Fax: +46 422 07049 Tel: +46 8 55032890 Tel: +46 414 12280 (Vegetables) Fax: +46 8 55030277 Fax: +46 414 14112 (Soy products, canned vegetables, (Frozen foods) Saba Frukt & Grönt AB jasmine rice, etc.) PO Box 9065 Helhetshälsa AB 120 05 Årsta Dagsmeja Ren Mat HB 59293 Borghamn Tel: +46 8 6026000 Verkstadsvägen 24 Tel: +46 143 20200 Fax: +46 8 6026038 245 34 Staffanstorp Fax: +46 143 20208 (Fruits and vegetables) Tel: +46 46 253600 (Vegetable oils) Fax: +46 46 252111 Hilda & Hulda AB Samodlarna Svea (Cereal and other products) Fabriksgatan 3 Folkungavägen 1B 684 00 Munkfors 611 34 Nyköping Di Luca Branded Food AB Tel: +46 155 286400 Tel: +46 563 52530 Bondegatan 29 Fax: +46 563 52191 Fax: +46 155 286444 6 TR, 116 33 Stockholm (Roasted soy products) (Fresh produce, dried vegetables, Tel: +46 8 6419569 cereals, packaged foods) Fax: +46 8 6404079 HNC Agenturer (Pasta products, vegetable oils) PO Box 154 Samodlarna Sverige 147 23 Tumba PO Box 16 263 EnarSahn AB Tel: +46 8 53030987 103 24 Stockholm Stenslingan 4 Fax: +46 8 53035425 Tel: +46 8 14 19 01 182 34 Danderyd (Bread products) Fax: +46 8 14 50 06 Tel: +46 8 7550706 (Fresh produce, dried vegetables, Fax: +46 8 7550706 Håkansson Tony cereals, packaged foods) (Fruit and vegetable juices, canned Slättåkra Gård vegetables, fruit purées) 230 42 Tygelsjö Other foods Tel: +46 40 466300 Falcon Bryggeri AB Fax: +46 40 469666 Arvid Nordquist H.A.B. PO Box 164 (Fresh produce) PO Box 1285 311 22 Falkenberg 171 25 Solna Tel: +46 346 57105 JO-Bolaget Fruktprodukter HB Fax: +46 346 17155 Torsgatan 14 Tel: +46 8 7991800 105 46 Stockholm (Brewery owned by Carlsberg, Fax: +46 8 294162 Tel: +46 8 7895271 (Imports branded packaged foods; Denmark) Fax: +46 8 7895480 coffee roaster) (Juice and nectars) Föreningen Mana EkoSol c/o Groth, Erikshällsg 40 Biofood AB Karlshamns AB 151 46 Södertälje Verkstadsvägen 14 Västra kajen Tel: +46 8 55086508 137 37 Västerhaninge 374 82 Karlshamn Fax: +46 8 55031967 Tel:+46 454 82424 Tel: +46 8 50020000 (Herbs and spices) Fax: +46 454 82820 Fax: +46 8 50024215 (Oils and fats) (Vegetable oils, sugar, syrup, dried Formidabel AB fruits, raisins, seeds, pasta Kvarnbyvägen 13 Kraft Freia Marabou AB products, milk powder) 212 36 Malmö 172 85 Sundbyberg Tel: +46 40 497470 Tel: +46 8 627 10 00 Björnekulla Fruktindustri AB Fax: +46 40 497420 Fax: +46 8 98 61 00 Tvärgatan 1 (Herbs and spices) (Chocolate products) 265 31 Åstorp Frebaco Kvarn AB PO Box 615 Tel: +46 42 56400 PO Box 878 801 26 Gävle Fax: +46 42 50525 531 18 Lidköping Tel: +46 26 65 62 30 (Fruit preserves, juices, canned Tel: +46 510 86000 Fax: +46 26 10 63 69 vegetables) Fax: +46 510 86019 (Coffee roaster; also imports (Cereal products) herbs and spices) Carlshamn Mejeri AB 374 82 Karlshamn Garbo Food AB PO Box 156 Tel: +46 454 82500 Hälleflundragatan 12 751 04 Uppsala 426 58 Västra Frölunda Tel: +46 18 65 56 00 238 CHAPTER 10 – SWEDEN

Fax: +46 18 69 27 20 Fax: +46 8 912838 Vårgårda Kvarn (Sauces and dressings, other (Fair trade labelled and organic PO Box 136 packaged foods) packaged foods, coffee) 447 24 Vårgårda Tel: +46 322 23085 Kung Markatta AB Samodlarna Svea Fax: +46 322 24273 Hjälmarsberg Fabriksgatan 3 (Cereal products) 705 90 Örebro 684 00 Munkfors Tel: +46 19 307300 Tel: +46 563 52530 Wasabröd AB Fax: +46 19 320201 Fax: +46 563 52191 682 82 Filipstad (Packaged foods) (Fresh produce, dried vegetables, Tel: +46 590 18100 cereals, packaged foods) Fax: +46 590 18500 Kvarn AB Juvel (Crisp bread, rice crackers) PO Box 8878 Saltå Kvarn AB 402 72 Göteborg Saltå Raw materials and ingredients Tel: +46 31 7791600 153 91 Järna Fax: +46 31 220579 Tel: +46 8 55150280 for food manufacturers and (Cereal products, rice) Fax: +46 8 55150240 packers (Bread, flour and other cereal Natura AB products) Almarkaröd B. Engelhardt & Co AB 242 92 Hörby PO Box 49 Tel: +46 415 62107 Seege AB 421 21 Västra Frölunda Fax: +46 415 62035 PO Box 123 Tel: +46 31 490290 Fax: +46 31 455782 (Fresh produce) 311 22 Falkenberg Tel: +46 346 55900 Contifood Smith & Son Nordfalks AB Fax: +46 346 80525 PO Box 63 (Flour, grains and breakfast cereals) PO Box 104 201 21 Malmö 431 21 Mölndal Semper Foods AB Tel: +46 40 71545 Tel: +46 31 674200 Fax: +46 40 236071 Fax: +46 31 875045 105 46 Stockholm (Herbs and spices, tea, Mexican Tel: +46 8 6773271 Eco Trade AB foods) Fax: +46 8 6773101 PO Box 905 (Baby foods, health foods, herbal 601 19 Norrköping Ölands Frö AB salt, raw materials and ingredients) Tel: +46 11 218000 PO Box 58 Fax: +46 11 126670 380 62 Mörbylånga Svenska Nestlé (Cereal products, dried vegetables) Tel: +46 485 40660 267 81 Bjuv Fax: +46 485 40329 Tel: +46 42 86000 R. Lundberg AB (Dried vegetables) Fax: +46 42 78300 PO Box 104 (Packaged foods, raw materials for 201 21 Malmö Raggårdens Produkter AB manufacture) Tel: +46 40 71545 Arentorp Fax: +46 40 236071 534 94 VARA Svenska Nutana AB Tel: +46 512 13490 Ekebyholm Verner Frang AB Fax: +46 512 13077 762 91 Rimbo Box 313 (Fresh produce, preserved Tel: +46 175 70905 503 11 Borås vegetables) Fax: +46 175 70190 Tel: +46 33 12 78 00 (Canned and frozen foods, cereals Fax: +46 33 10 64 99 Risenta AB (Cacao) PO Box 7411 and grains) 103 91 Stockholm Torfolk Gård AB Tel: +46 8 6797680 Seeds and planting materials Fax: +46 8 6115366 Ö Skymnäs (Health foods, dried vegetables, 684 95 Höje seeds, etc.) Tel: +46 563 72368 Frökompaniet Landskrona Fax: +46 563 72066 Bromsgatan 5 Råby Biogrönt AB (Fruit preserves; chilli, pesto and 261 35 Landskrona Råby 4, PL 250 other sauces; tomato products; Tel: +46 418 16860 242 92 Hörby vinegar; wine) Fax: +46 418 28510 Tel: +46 415 311156 (Onion sets, seeds) Fax: +46 415 311156 Vinägron AB (Fresh produce) Lindbloms Frö Skogsvägen 1 PO Box 86 417 29 Göteborg 277 21 Kivik Sackéus AB Tel: +46 31 228860 Veterinärgränd 6 Tel: +46 414 70880 Fax: +46 31 518351 Fax: +46 414 70009 121 63 Johanneshov (Vinegar) Tel: +46 8 915020 (Onion sets, seeds) CHAPTER 10 – SWEDEN 239

Olssons Frö AB Federation of Commercial Agents National Food Administration Mogatan 2 PO Box 1137 PO Box 622 254 64 Helsingborg 111 81 Stockholm 751 26 Uppsala Tel: +46 42 155540 Tel: +46 8 411 00 22 Tel: +46 18 175500 Fax: +46 42 156390 Fax: +46 8 411 00 23 Fax: +46 18 105848 (Onion sets, seeds) E-mail:[email protected] E-mail:[email protected] http://www.agenturforetagen.se http://www.slv.se Svalöf Weibull Trädgård AB 276 50 Hammenhög Föreningen för Rättvisemärkt Svenska Demeterförbundet Tel: +46 414 443800 (Member of Fair Trade Labelling Skillebyholm Fax: +46 414 43990 Organization International (FLO) 15391 Järna (Onion sets, seeds) Drakenbergsgatan 11 Tel: +46 55157988 117 41 Stockholm Fax: +46 55157976 Törnvik Gård AB Tel: +46 8 668 03 50 Törnvik Fax: +46 8 668 03 14 Swedish Board of Agriculture 179 65 Stenhamra E-mail: [email protected] 551 82 Jönköping Tel: +46 8 56024161 http://www.raettvist.se Tel: +46 36 155000 Fax: +46 8 56024459 Fax: +46 36 190546 (Onion sets) GroLink AB E-mail:[email protected] Torfolk http://www.sjv.se 684 95 Höje Tel: +46 56372345 Swedish Federation of Trade and OTHER USEFUL Fax: +46 56372066 Service ADDRESSES http://www.grolink.se 103 23 Stockholm (Consultancy) Tel: +46 8 7627700 Association of Swedish Fax: +46 8 7627777 Chambers of Commerce KRAV E-mail: [email protected] and Industry (Swedish Organic Agriculture http://www.svenskhandel.se PO Box 16050 Association) 103 21 Stockholm PO Box 1940 Tel: +46 8 555 100 37 751 49 Uppsala Fax: +46 8 566 316 37 Tel: +46 18 100290 E-mail:[email protected] Fax: +46 18 100366 http://www.cci.se E-mail: [email protected] http://www.krav.se Chapter 11

SWITZERLAND

Switzer land is a small country with an area of just agri cul ture, having ini ti ated bio- dynamic farming as over 41,000 sq km and a popu la tion of about 7 well as organic (natural) gar dening in the 1930s. The mil lion, of which close to 20% are for eigners. The Research Insti tute of Organic Agri cul ture (FiBL) was country has three prin cipal lin guistic areas, and set up in 1974; it organ ized the first Scien tific approxi mately 73% of its popu la tion speak German, Con fer ence of IFOAM in Sis sach (near Basel) in 21% French and 4% Italian. All three lan guages are 1977. Though organic prod ucts have long been sold offi cial lan guages. Of the seven mar kets cov ered in through farm- gate sales and other direct sales and detail by this study, Swit zer land is the only one that is later on through Bioläden (organic shops), the market not part of the European Union. How ever, it is a started to grow seri ously only after 1993 when the big member of the European Free Trade Agree ment super market chain Coop began to market organic (EFTA). food, fol lowed by another big supermarket chain, Migros, in 1996 ( see sec tion on dis tri bu tion chan nels, Switzer land is one of the pioneers of organic pages 246 ff.).

Supply and demand

Production The country’s output of animal prod ucts includes milk and other dairy prod ucts, meat and meat The area under organic agricul ture is expanding products, and eggs. Organic dairy prod ucts are an rap idly in Swit zer land and reached over 70,000 ha, or impor tant product group. The big gest dairy com pany about 7% of the total cul ti vated land, in 1997. In is Swiss Dairy Food Ltd, which resulted from a 1998, organic agri cul ture accounted for an esti mated merger between the Toni Group (a company in 8% of the total agri cul tural land, which is very high Ostermun digen) and Säntis Milchver band (Gossau). com pared with proportions in most coun tries. The The next largest is the Emmi Group (Lucerne). There Euro pean (EU+EFTA) average is 1.45%. are sev eral smaller com pa nies like Baer Küsnacht.

Since 1991 the number of organic farms has risen Organic farmers belong to more than 30 organi za- steadily from just below 1,000 to about 5,000 in tions. The main umbrella organiza tion is Bio 1998, cor re sponding to an average increase of 28% Suisse – the Vere inigung schweizeri scher biolo- annu ally. The highest growth rate occurred in gischer Landbau- Organisationen (VSBLO), Basel. 1995-1996; the figure for 1998 was just 8%. By the end of 1999 the number of farms is expected to reach Market size 5,600, and fur ther expan sion is antici pated. Since offi cial pro duc tion and for eign trade sta tis tics The main crops are cereals for human con sump tion, on organic food and bev er ages are either incom plete cereals for animal fodder, vege ta bles, maize (Indian or non- existent, it is dif fi cult to give an exact pic ture corn) and pota toes. of the Swiss market. CHAPTER 11 – SWITZERLAND 241

How ever, on the basis of data pro vided by FiBL and coffee, tea, cocoa, durum wheat, rice, millet, spices, Bio Suisse, the retail market for cer ti fied organic food subtropical and tropical fruit, nuts and some dried can be estimated at Sw F 500 mil lion - Sw F 520 fruit. The import rate is gen er ally fairly low as market mil lion in 1997 (roughly 2% of the total food access is diffi cult, mainly because of the privately market), and between Sw F 560 mil lion and Sw F 580 con trolled labels on organic food and strict mil lion in 1998. About two thirds of organic sales require ments. consist of items pro duced domes ti cally; the rest are prod ucts not grown in Switzer land. They include

Import and market requirements by major product group

General q Hazelnuts, figs, almonds, dried apricots and raisins (Turkey, California); Though demand for organic food in Switzer land cannot be cov ered by local pro duc tion, with some q Bananas, though consumers do not usually exceptions the range of imported prod ucts is fairly make a distinction between organic and fair trade lim ited. The main rea sons include the fol lowing: (e.g. Max Havelaar) bananas; q The private farmers’ umbrella organization Bio q Pineapples (from Ghana); Suisse controls most of the market (75% today, a share that was presumably even higher up to the q Mangoes (from Ghana); period ending 1997 when official legislation on organic products was introduced). q Various berries, especially for the food industry for the production of fruit preparations for dairy q Logistical difficulties with imports (small quantities, insufficient distribution network, etc.). products, bakery products, etc. (from Hungary); q The concept of organic food implies for many q Vegetables (for example, beans from Egypt). consumers that the product has to be fresh and should be transported to the market by the shortest possible The fact that these items are imported and in some way, preferably from a neighbouring or nearby cases trans ported by air leads to regular dis cus sions regional producer. on whether they are fully ‘organic’ or ‘ec olog ical’. Bio Suisse does not permit prod ucts imported by air q Processed food, which is easier to handle from to carry its logo. the logistical point of view, was generally not regarded as fully organic or completely natural by Dried fruits and nuts many consumers. This is the classic range of imported organics. Nev er the less, imports of organic food and bev er ages How ever, the overall Swiss market for dried fruits are on the increase, mainly items not pro duced in and nuts is small. An estimated 40% of sales may Switzer land but also items similar to domes ti cally already be cov ered by organically or other pro duced goods that are in short supply. Some of the sustainably grown produce. In addi tion to organic main imports by product group and some sup plying produce, consumers look for con ven tional prod ucts coun tries/areas are listed below. not treated with SO2 (sulfur dioxide). Imports include dried bananas, apri cots, pine ap ples (small market), Fresh fruits and vegetables man goes (very small market), and various nuts.

Most fresh fruits and vege ta bles are locally sup plied. Processed fruits and vegetables Imports include: The market for deep- frozen organic food and q Lemons, oranges and other citrus fruit (mainly ready- to- serve mixes for catering is expanding. from Italy and Spain); Supplies are mainly obtained locally. Schmutz 242 CHAPTER 11 – SWITZERLAND

Gemüse AG processes 8,500 tons of prod ucts in this Sales of organic spices and spice prod ucts are rising cate gory. fast, and requirements need to be imported. One retail organiza tion is in the process of converting There is a market for other forms of proc essed fruits from con ven tional to organic prod ucts to the fullest and vege ta bles, such as fruit juices, jams and extent pos sible. mar ma lades. Domestic proces sors include Hero in Lenzburg and Biotta in Tägerwilen. Some raw Sugar and sweeteners mate rials (e.g. tropical fruit juices, con cen trates or pulp/purée, and frozen fruit) are imported. Imports The organic market for this product group is small but are small and are normally sourced through growing. It is cur rently esti mated at 100 - 200 tons of mid dlemen in the European Union, notably in organic sugar and about 30 tons of organic glu cose Ger many and the Neth er lands. 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 usu ally Cereals, flour and bakery products consid ered a health product in any case. The cer ti fi ca tion of organic honey is not yet fully regu lated. 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 Oil products to bread. The other major end- uses for organics are This is a highly pro tected market with spe cial levies break fast cereals (e.g. muesli), con fec tionery, snacks and porridge. Though Switzer land has a size able on imports of, for example, vege table oils, which are regarded as com peti tors to butter. There is almost no domestic pro duc tion, imports of organic cereals import market for organic prod ucts, with the cover about one third of demand, and this despite the fact that these imports are often sub ject to high import exception of olive and sun flower oils for which the market is growing. duties and spe cial levies. Dairy products Coffee, tea and cocoa This is tra di tion ally the most impor tant organic In this sector, organic prod ucts have an established product group in Switzer land and the largest dairy though small market share. Herbal teas have the coop era tive, the Toni Group, actively pro motes sales largest share in the market, fol lowed by choco late and of organic prod ucts. In 1997 the Group proc essed coffee. There is also a growing market for organic 1,000 tons of organic milk. It has a range of more than tea from fair trade pro grammes (such as Max 20 prod ucts of which the most impor tant are Havelaar). pas teur ized 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 sea soning as well as for further The fol lowing prod ucts of impor tance should also be processing in the food industry into teas, herbal men tioned: baby food, meat and sau sages, fresh eggs, can dies, fla vours and aro matic extracts. Though yeast for making bread at home, and wine. Most of some Swiss farmers in the moun tain areas spe cialize these prod ucts offer few oppor tu ni ties for devel oping in this product group, importing also takes place. coun tries, if any.

Market characteristics

Consumer habits by FiBL in 1998, the main rea sons are envi ron mental and health concerns, followed by taste and other Swiss con sumers buy organic food and bev er ages for factors. Usu ally, a price premium of 10% - 20% is a variety of rea sons. According to a survey pub lished accepted, though this may be higher for some CHAPTER 11 – SWITZERLAND 243 prod ucts, say up to 40%. According to another tele vi sion, the Internet, etc. survey, 40% of Swiss con sumers buy organic food at least once a week. q The supermarket chains are increasingly asking suppliers to pay ‘listing fees’ when new products are Promotion and advertising accepted for sale on their shelves.

As compe ti tion between the two largest q Suppliers are asked to give special rebates or super market chains (Migros and Coop) is becoming discounts and to participate in promotional activities increas ingly keen, sales pro mo tion and adver tising by offering special packaging. have become impor tant instru ments in the battle for market share. This applies not only to food stuffs in In addi tion, suppliers are being asked to pro vide general but also to organic food and bev er ages. logis tical extras in the form of spe cial pal lets, spe cial Typical mar keting and promo tional tech niques pack aging, price stickers on retail packs, place ment of include the fol lowing: EAN codes, taking prod ucts off the shelves when not sold, etc. This fairly aggres sive develop ment, which q Heavy adver tising through national and regional also takes place in other mar kets, makes it more and news pa pers, flyers, the groups’ own weekly more dif fi cult for for eign and even the smaller Swiss promotional leaf lets and newspa pers, radio, pro ducers to enter the retail market direct.

Market access

Customs duties and restrictions have to meet the general requirements of the Swiss laws and regula tions appli cable to all foodstuffs The Swiss customs tariff follows the Har mo nized (organic and con ven tional), including the fol lowing: System. Swiss customs duties are spe cific, that is, they are levied on the weight of the product imported q Food law and regulations; and not on its value. Tar iffs are quoted in Swiss francs per 100 kg gross weight. There are no spe cial tar iffs q Hygiene law and regulations; on organic prod ucts which carry the same duties as the equiva lent con ven tional goods. q Regulation on weight and declaration which stipulates that the declaration has to be made in at There are high duties and/or spe cial levies on a range least one of three official languages (German, French of agricul tural prod ucts such as sugar, cereals, or Italian); vege table oils and dairy prod ucts. In addi tion, for some of these prod ucts spe cial import licences are nec es sary, q Regulations on pesticides, herbicides and heavy which nor mally can be obtained only by a Swiss metals. importer. For imports of meat and fishery products, sani tary cer tifi cates and the like are also needed. Although the above regu la tions largely con cern con sumer packs and do not directly affect imported Exports of some prod ucts from devel oping coun tries bulk prod ucts, exporters should take them into may be sub ject to pref er en tial rates of duty under the consid era tion as the end- products proc essed from Gen er al ized System of Pref er ences (GSP). imported raw mate rials must con form to them.

A value- added tax, which is cur rently 7.5%, has to be Since 1 January 1998, the pro duc tion, proc essing and paid by the first importer into Swit zer land. The VAT mar keting of organic prod ucts have been regulated rate is the same for imported and for domes ti cally by the Swiss Regu la tion on Organic Farming pro duced goods. (Schweizer Bio-Verordnung ), which is modelled on EU regu la tions. The Swiss regu la tion is stricter than Food laws and regulations 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 CHAPTER 11 – SWITZERLAND cer ti fied by a cer ti fi ca tion body con forming to can label their prod ucts with the pri vate Knospe label. Euro pean stan dard EN 45011 (see chapter 2). This label is the most com monly used in Swit zer land. Swit zer land has the fol lowing cer ti fi ca tion bodies: The Knospe label consists of a graphic depicting a q bio.inspecta: jointly founded by FiBL, Bio bud and the let ters “BIO”. Only farmers, proc es sors Suisse and Demeter; located in Frick. and importers of Swiss origin can obtain per mis sion to use this logo. The word “Suisse” may be added to q Institut für Marktökologie (IMO), based in the logo, indicating that a minimum of 90% of the Sulgen. product is of Swiss origin. Addition ally, the word “Umstel lung” must be added to the logo if the q Schweizerische Vereinigung für Qualitäts- und product is from farms under con ver sion. Management Systeme (SQS), based in Zollikofen. There are other labels of lesser but growing Another body, ABCert, is expected to be accred ited impor tance, such as the MIGROS BIO Production in the near future. The Swiss Accredi ta tion Service label of Migros, the largest retail organiza tion in (SAS) and the Fed eral Office of Agri cul ture carry out Swit zer land. For Swiss prod ucts, Migros applies the super vi sory activi ties in rela tion to cer ti fi ca tion. Until same stan dards as BIO SUISSE, but its require ments the new law on organic food entered into force in for imports are less demanding. 1998, the pri vate stan dards of the Swiss organic farm ers’ organiza tion, Vereinigung Schweizer Bio- In total, about 5,000 Swiss farmers and 600 Landbau- Organisationen (Bio Suisse) were com- com pa nies are reg is tered as organic units; some monly applied to organic pro duc tion and trade. Those com pa nies are reg is tered more than once. Bio Suisse stan dards were and remain stricter than those of the has around 520 reg is tered com pa nies, MIGROS BIO law. Pro ducers and traders who operate according to Production about 60, Demeter about 30, others about these standards, and who are cer ti fied against them, 75.

Distribution channels

Importers and agents the annex to this chapter.

As the Swiss market is com para tively small and Food industry highly segmented (with numerous small and medium-sized com pa nies), it is usu ally better to Though Switzerland is the home country of Nestlé, export organic prod ucts through an importer rather the world’s biggest food company, and several other than to sell direct to the food industry or the retail major food manufacturers, organic food processing is trade. Importers can pro vide the exporter with carried out mainly by small and middle-sized units. nec es sary infor ma tion on market require ments, These units focus on the domestic market, though quality standards, market access and import several also target export markets, largely in the for mali ties; they can also offer the logis tical serv ices European Union. Among the companies with required by the final cus tomer. Many industrial well-known products are Bio-Familia AG (breakfast buyers are not used to car rying out nego tia tions in cereals), E. Zwicky AG (cereal and muesli mixes) dif ferent lan guages. They insist on DDP (deliv ered and Bioatta AG (juices). 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. Retail trade

Several importers and agents spe cialize in or have The Swiss food retail market is dominated by two sec tions dealing with organic food. They include supermarket chains, Migros and Coop Schweiz, Kündig & Cie. AG (based in Zürich), Tra wosa AG which together control an estimated 70% of the (Ror schach) and Var istor AG (Lengnau). The names country’s food sales. They are also pre-eminent in the and addresses of these and other enti ties are given in organic food business. CHAPTER 11 – SWITZERLAND 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 Migros organic food sales in Switzerland. It is, however, second to Migros in terms of overall sales. Its With total sales of food and non-food items turnover of food and non-food items amounted to amounting to Sw F 13 billion in 1997, Migros is the about Sw F 11 billion in 1997. Its sales of organic largest retail group in Switzerland. However, its share food and beverages climbed from Sw F 116 million of the market for organic food and beverages is in 1996 to Sw F 168 million in 1997 and Sw F 200 estimated at only 15% (valued at about Sw F 85 million in 1998. It expects to attain sales of about million in 1997), roughly half of Coop’s share. Sw F 500 million in the year 2000. Like FDB in Migros currently offers about 150 organic food items, Denmark, for example, Coop has clearly stated sales and is trying hard to expand sales. All organic food targets (given in terms of percentage of overall sales) products are certified and sold under the Migros Bio for specific organic food items. It also has a policy of logo, usually certified by FiBL or IMO. minimizing price premiums in relation to conventional food products. Migros owns about 10 food processing plants, including Jowa AG (bakery products, pastas), Frey Coop owns a number of food processing plants, AG (chocolate and confectionery), Estavayer SA including Arni AG (confectionery), Panofina AG (dairy products, drinks, sauces, etc.), Bischofzell AG (bakery products), Pasta Gala AG (pasta) and (canned and frozen food, jams, etc.) and Midor (ice Stadtmühle CMZ. Some plants produce organic cream, desserts, cookies), several of which produce products. some organic food products.

Since the mid 1990s Coop has strongly pushed In a constant fight for market share, Migros has been organic food products, which are sold under its own promoting strongly for over 20 years its range of Naturaplan label and with the Bio Suisse (Knospe) M-Sano products – mainly fruits and vegetables, logo. Certification is carried out by Bio Suisse. The and meat and meat products. The focus is on the range currently consists of more than 200 different mass market for healthy and environmentally items (see list below) and is constantly being friendly products with value added. The concept is expanded. 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 Eggs 2 is considering developing the Sano concept Pasta and rice 8 Fresh and dry into another form, inter alia, in order to avoid Meat 30 Fresh meat, ham and sausages, confusion with its Bio label. poultry Frozen products 4 Vegetables, potatoes, hamburgers Others Fruits and vegetables 35 Mainly of Swiss origin Bread and other baked 20 USEGO-Trimerco Holding is a large retail goods buying group and wholesaler. It supplies about Flour 3 Cereals 26 Muesli mixes and single cereals 5,000 retail outlets, including some 285 Primo Wine 10 supermarkets, about 1,200 Vis-à-Vis stores, and Fruit juices 3 All of Swiss origin a large number of independent retailers, most of Baby food 25 Juices and ready-to-use purée which carry organic products (including goods Oils 4 carrying the Bio Domaine and Knospe labels). Spices and herbs 7 All of European origin USEGO is also a majority owner of the food Tea 5 Herbal teas of Swiss origin discount chain Pick Pay AG, which has about 100 outlets. 246 CHAPTER 11 – SWITZERLAND

A number of other supermarket chains also carry Sales with other logos organic food items (including Bio Domaine and Migros Bio 84 Knospe products). Among these chains are Volg AG Others, including imported organics in 50-70 (based in Winterthur), Manor (based in Basel), and retail packs Spar (in St Gallen).

Until the early 1990s, Bioläden (organic shops) were Catering the main sales outlets for organic food together with farm-gate or direct sales. Reformhäuser (health food Apparently the catering and institutional market for shops), though of lesser importance, were also organic food and beverages is not yet well amongst the first outlets for organic foods. Since then developed, though sales are growing. One company, sales of organic food in these types of shop have Delinat AG (of Heiden) is the exclusive supplier of stagnated or even declined while supermarket sales organic wines (of Swiss and other European origins) have soared. to restaurants.

Retail sales by sales outlet and certification Bio Suisse started a project in 1998 in cooperation logo 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 Special mention should be made of Swissair, the first Sw F 500 million - Sw F 520 million in 1997) can be airline to use naturally grown products. It has utilized divided by sales outlet and certification logo as these products since 1997, when it first applied the follows: concept naturalgourmet™ to all Swissair flights from Switzerland. According to the plan, 90% of the Outlet Value of sales products needed to prepare meals should be naturally (Sw F ‘000 000) grown by the year 2000 and, to the extent possible, Sales with the Bio Suisse (Knospe) logo only organically grown products will be purchased. Coop 170 Passengers will have a choice between organic and Health food shops 150 conventional wines and beers. This important initiative has the additional benefit of making Farm-gate and direct sales 30-50 Swissair passengers more aware of health and Spar, USEGO, etc. 15 environmental issues.

Market prospects

Overall, the market for organic food products may be q To gain an edge over the competition, retailers expected to grow at a rate of 20% - 40% a year over the are offering customers ‘ethical’ products, including next three to five years, the principal reasons being: organics. q The consumers’ positive attitude to health food, However, the Swiss market is likely to remain a and naturally and ethically produced food. difficult one for exporters for a number of reasons, including the following: q Growing price pressure in the market for conventional agricultural products will persuade q The protective character of Bio Suisse, the most more and more farmers to go into organic farming, important certification body with its very high which will raise domestic supplies. 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 q High quality standards in general and for Sw F 47.5 million. organic products in particular. CHAPTER 11 – SWITZERLAND 247

q For most products with import potential, only should not be ignored by exporters in developing relatively small quantities are needed. countries. The products with the best opportunities are those that cannot be grown in Switzerland, q Growing competition and price pressure. The including coffee, tea and cocoa, citrus and tropical assumption is that eventually organic products will fruits, rice, durum wheat and various spices. Other enjoy a premium of no more than 10% over products, such as off-season fruits and vegetables and conventional food as consumers and even retailers products in short supply, may also find openings in think that all food has to be as natural as possible the market. It should be noted that SIPPO, the Swiss anyway, and producers of foodstuffs, whether fully Import Programme (see the annex for the address), organic or not, will move in that direction. provides assistance to exporters in developing countries. Nevertheless, Switzerland is an important market that Annex

Switzerland: selected addresses*

IMPORTERS OF ORGANIC Tel: +41 41 761 2727 Fax: +41 71 844 98 49 FOOD FOR RETAIL AND Fax: +41 41 761 2840 E-Mail: [email protected] (Specializes in herbs and tea) (Handles raw materials for the food RAW MATERIALS FOR THE industry, particularly dried FOOD INDUSTRY Heider Teeimport vegetables) Trockenloosstrasse 45 Biofarm-Genossenschaft 8105 Regensdorf Vanadis AG beim Bahnhof Tel: +41 1 840 1600 Fischingerstrasse 66 4936 Kleindietwil Fax: +41 1 840 1646 8370 Sirnach Tel: +41 62 957 80 50 (Specializes in tea) Tel: +41 71 966 37 77 Fax: +41 62 957 80 59 Fax: +41 71 966 37 91 (Cooperative/wholesaler handling a Hima la Vie (Medium-sized company, often buys large range of products, mainly Avenue C.-F. Ramuz 101 via German organizations like cereals) 1009 Pully Rapunzel) Tel: +41 21 729 6566 Claro AG Fax: +41 21 729 6166 Varistor AG Schweizer Organisation für Fairen Westrasse 5 Handel Kündig & Cie. AG 5426 Lengnau AG Byfangstr. 19 Stampfenbachstrasse 38 Tel: +41 56 266 50 60 2552 Orpund 8023 Zurich Fax: +41 56 266 50 70 Tel: +41 32 356 0700 Tel: +41 1 368 25 71/368 2525 E-mail: [email protected] Fax: +41 32 356 0701 Fax: +41 1 362 8414 http://www.hitlne.ch/vari-food (Handles fair trade products; E-mail: [email protected] (Agent/importer; deals with organic imports for organic shops and http://www.kuendig.com food products, especially raw Reformhäuser) (Handles a wide range of organic materials for the food industry) raw materials and food products for Giovanelli Fruchtimport AG retail and industry) Via Verde AG Schaffhauserstrasse 200 Brunnmatt 8500 Frauenfeld Steiner Mühle AG 6264 Pfaffnau Tel: +41 52 728 0909 3436 Zollbrück Tel: +41 62 747 07 47 Fax: +41 52 728 0900 Tel: +41 34 496 8781 Fax: +41 62 747 07 37 (Specialist importer of fresh fruits) (Processor of cereals, especially for (Specializes in distributing fresh Demeter) fruits and vegetables to smaller Granosa AG retailers of organic food) St. Gallerstrasse 117 Stutzer AG 9403 Goldach Seminarstrasse 28 Tel: +41 71 841 6423 8057 Zürich Fax: +41 71 841 7726 Tel: +41 1 360 3636 WHOLESALERS (Importer of cereals and food raw Fax: +41 1 360 3600 materials) Biogemüse Galmiz Suntra AG Zährli 9 Hans Buob AG Im Brühl 1 3285 Galmiz Grenzstrasse 26 4123 Allschwill/Basel Tel: +41 26 670 4242 9430 St. Margrethen Tel: +41 61 487 9100 (Fresh fruits and vegetables) Tel: +41 71 747 43 33 Fax: +41 61 487 9105 Fax: +41 71 747 43 34 (Trader in dried fruits and nuts, Somona GmbH (Specialist importer of dried fruits processed fruits and vegetables) Bodenackerstrasse 51 and nuts) 4657 Dülliken Trawosa AG Tel: +41 62 354 646 Hans Kennel AG Eisenbahnstrasse 41 Fax: +41 62 353 259 Lättichstrasse 4 9400 Rorschach (Retail packs; handles supplies for 6342 Baar Tel: +41 71 844 98 40 Reformhäuser, for example)

______* List not exhaustive. CHAPTER 11 – SWITZERLAND 249

FOOD PROCESSORS/ 2501 Biel/Bienne Migros Genossenschafts-Bund Tel: +41 32 365 0111 Limmatstrasse 152 MANUFACTURERS OF Fax: +41 32 365 6226 8005 Zürich ORGANIC PRODUCTS (Packer of dried fruits and nuts, Tel: +41 1 277 2111 honey) Fax: +41 1 277 2333/ Bio-Familia AG 277 2525 Brünigstrasse 141 Neumühle Töss http://www.migros.ch 6072 Sachseln Neumühlestrasse 40 Tel: +41 41 666 2555 8406 Winterthur Migros-Genossenschafts-Bund Fax: +41 41 666 2550 Tel: +41 52 202 64 31 Service Agro-écologique E-mail:[email protected] Fax: +41 52 203 74 41 2, Rue de la Gare http://www.bio-familia.com (Specializes in cereals and flours) 1030 Bussigny (Cereal products, including muesli) Pronatec AG USEGO AG Bioforce AG Fröschenweidstrasse 10 Industriestrasse 25 Grünauerstrasse 8404 Winterthur 8604 Volketswil 9325 Roggwil Tel: +41 52 235 0909 Tel: +41 1 947 1414 Tel: +41 71 454 6161 Fax: +41 52 235 0919 Fax: +41 1 947 1535 Fax: +41 71 454 6162 E-mail: (Bio Domaine) (Vegetable salt and fresh plant [email protected] extracts) (Sugar, syrups, chocolate, cocoa, vanilla, nuts) Biotta AG CATERING Pflanzbergstrasse 8 8274 Tägerwilen Schmutz Gemüse AG Delinat AG Tel: +41 71 666 8080 Dorfstrasse 25 Haus zur Glocke Fax: +41 71 666 8081 3216 Ried bei Kerzers 9410 Heiden (Fruit juices) Tel: +41 31 755 5621 Tel: +41 71 898 8070 (Processed fruits and vegetables) Fax: +41 71 898 8077 Haco AG http://www.delinat.ch Worbstrasse 262 Schweiz. Schälmühle E. Zwicky (Supplier of organic wines) 3073 Gümligen AG Tel: +41 31 950 1111 8554 Mühlheim-Wigoltingen Gate Gourmet Zürich AG Fax: +41 31 950 1515 Tel: +41 52 763 17 44 The Quality Caterer (Cereal products and snacks) Fax: +41 52 763 32 14 8058 Zürich-Flughafen (Specializes in cereals and muesli Tel: +41 1 812 1212 Hauser + Cie AG mixes, organic pet food) Fax: +41 1 812 9192 Neumühle Töss http://www.swissair.com/ourservices/ air/gourmet.htm Neumühlestrasse 40 Stadtmühle CMZ Zürich 8406 Winterthur Sihlquai 306 (Swissair) Tel: +41 52 202 6431 8031 Zürich Fax: +41 52 203 7441 Tel: +41 1 447 2525 (Raw materials for the bakery Fax: +41 1 447 2588 CERTIFICATION BODIES, industry) AUTHORITIES Swiss Alpine Herbs Hero Gassenmatte AND OTHER USEFUL 5600 Lenzburg 3763 Därstetten ADDRESSES Tel: +41 62 885 5111 Tel: +41 33 783 2000 Fax: +41 62 891 5103 Fax: +41 33 783 2083 Bio Suisse/VSBLO E-mail:[email protected] (Herbs and spices, fruits and Missionsstrasse 60 (Processed fruits and vegetables) vegetables) 4055 Basel Tel: +41 61 385 9610 Hügli Nährmittel AG Fax: +41 61 385 9611 Bleichestrasse E-mail:[email protected] 9323 Steinach RETAIL ORGANIZATIONS Internet: [email protected] Tel: +41 71 446 9292 Fax: +41 71 446 2089 Coop Schweiz bio.inspecta (Bouillons, soups, sauces, yeast) Thiersteinerallée 12 Ackerstrasse 4002 Basel 5070 Frick Kentaur AG Tel: +41 61 336 6666 Tel: +41 62 865 6300 Gässli 9 Fax: +41 61 336 7491 E-mail: [email protected] 3432 Lützeflüh http://www.coop.ch http://www.bio-inspecta.ch Tel: +41 34 460 6111 Fax: +41 34 460 6166 Manor AG Demeter-Verband (Cereals, baking mixtures) Reggasse 34 Grabenackerstrasse 15 4058 Basel 4142 Münchenstein Narimpex AG Tel: +41 61 686 1111 Tel: +41 61 416 0643 Schwanengasse 47 Fax: +41 61 681 1192 Fax: +41 61 416 0644 250 CHAPTER 11 – SWITZERLAND

FiBL - Research Institute of Fax: +41 71 644 9883 Schweizerische Gesellschaft für Organic Agriculture E-mail:[email protected] biologischen Landbau Department of Economy and http://www.imo.ch (Bioterra) Standards Dubstrasse 33 Ackerstrasse Schweiz. Vereinigung für 8003 Zürich 5070 Frick Qualitäts- und Management- Tel: +41 1 463 5514 Tel: +41 62 865 7253/865 7272 Systeme (SQS) Fax: +41 1 463 4849 Fax: +41 62 865 7273 (Swiss Association for Quality and (Small-scale gardening) E-mail:[email protected] Management Systems) http://www.fibl.ch Industriestrasse 1 SIPPO - Swiss Import Postfach 686 Promotion Programme OSEC Institut für Marktökologie 3052 Zollikofen Swiss Office for Trade Promotion (IMO) Tel: +41 31 910 35 35 (OSEC) (Institute for Market Ecology) Fax: +41 31 910 35 45 Stampfenbachstrasse 85 Poststrasse 8 E-mail: [email protected] PO BOX 492 8583 Sulgen 8023 Zürich Tel: +41 71 644 9880 Tel: +41 1 365 5151 Fax: +41 1 365 5221 E-mail: [email protected] http://www.osec.ch Chapter 12

UNITED KINGDOM

Introduction The dedica tion of some of the United King dom’s shops and, even tu ally, dedicated organic shops. agricul tur ists and natu ral ists in the first half of this Producing spe cifi cally for the organic market thus cen tury led to devel op ments which contrib uted began to approach eco nomic viability only over an sig nifi cantly to the foun da tions of the organic extended period of time and the per centage of move ment. It was as a con se quence of this work that pro duce bearing the organic label increased very The Soil Asso cia tion (SA), which is still the leading slowly. organi za tion in the coun try’s organic move ment, was formed in 1946 and adopted as one of its aims the The growth that could there fore have been expected fol lowing: “to bring together all those working for a of the British market did not mate ri alize and, by the fuller under standing of the vital rela tion ships between end of the 1960s, mar kets in the United States and in plant, animal and man”. other Euro pean coun tries were more diver si fied and wide spread. In spite of this, how ever, the United Some years later and at a time when the Gov ern ment Kingdom was once again involved in securing the and global agro- chemical com pa nies were directing long- term authen ticity of the sector. British agricul ture towards chemically enhanced farming, a small group of mem bers of The Soil With the fast growth that was taking place else where Associa tion established the United King dom’s first and the price premiums that were becoming Organic food shop in London (in 1960). This shop avail able, a number of oppor tunist growers and was, in effect, the retail outlet for the organic pro duce traders who were not exactly in tune with organic grown by The Soil Asso cia tion’s mem bers but, being prin ci ples began to appear in the market. It was thus the only one of its kind at the time, did not pro vide a nec es sary to define the term ‘organically grown’ to large enough outlet for such produce. As a guar antee the purity of the product and protect it conse quence organic farmers still had to sell most of during the entire pro duc tion, distri bu tion and their pro duce through normal com mer cial chan nels if mar keting process. In response, The Soil Asso cia tion they were to make ends meet. The specific established a set of organic stan dards in 1974; iden ti fi ca tion of organic prod ucts came gradually with together with the official French stan dards and increasing conscious ness of green issues and the IFOAM’s Basic Standards, these became the emer gence of health food outlets, fol lowed by farm foun da tion of EC Regu la tion 2092/91.

Supply and demand

Retail sales up to $650 mil lion. This trend is set to con tinue at an increasing rate with trade esti mates put ting the retail At the end of 1997, the British retail market for value of the market at about $10 bil lion within 10 organic foods was valued at $450 million, having years, raising the market share of organics from the practi cally dou bled in size in the two years since cur rent 0.4% to 10% - 15%. This appears some what 1995. Prelimi nary fig ures for 1998 indi cate sales of opti mistic and will be fea sible only if there is good 252 CHAPTER 12 – UNITED KINGDOM supply availability, a suppor tive and more active Imports gov ern ment policy and the gradual ero sion of price dif fer en tials (prices still appear to be up to 50% Roughly half of the imports of organic foods comes higher on average than those of con ven tional foods in from other EU countries. The major non-EU many cases). suppliers are currently the United States, Egypt, Israel, Argentina and, increasingly, South Africa and In terms of domestic con sump tion, a recent survey Central America. Apart from these main suppliers, (by AC Nielsen, Homescan UK, Sep tember 1997) trade research reveals a wide and fast expanding of 105,000 house holds found that, although 25% of range of suppliers of individual products (see annex II the con sumers sur veyed bought organic food, these for an example of this). Of the total imports of food purchases were ham pered by the lack of supply. and drinks, one third is estimated as coming from Further more consumers continued to find organic developing countries. food too expen sive in spite of retailer price cuts. This means in effect that 75% of British On average, some 80% of organic fruits and households do not buy organics despite the large vegetables are imported; the estimate for fruits is as growth in recent years. There is thus poten tial for high as 85%. Of the rest, 100% of tea and coffee, 90% market expansion. At the same time, there are of wine and alcohol, and 50% of juices and cereals obstacles that have to be removed before such are imported. Most meat products, eggs and dairy poten tial can be fully exploited: 55% of the products are domestically supplied. Further households interviewed cited “high price”, and information on imports by product groups is given 25% referred to the “lim ited range of prod ucts” as further below (market characteristics). their rea sons for not buying. Domestic production The major organic product categories sold are fruits and vegetables, cereals, and meat and dairy products The high percentage of sales attributable to imports is although there are significant markets for products mainly explained by the fact that organic production such as processed foods, raw ingredients, beverages in the United Kingdom is still comparatively small. and baby foods. Although there has been steady According to The Soil Association, there were an growth in the largest product category (fruits and estimated 1,200 organic farms out of a total of vegetables), this has been slower than the extremely 100,000 farms of all types in the country in 1997. rapid expansion in products such as organic meat, These 1,200 farms were using 75,000 hectares, an dairy produce and baby food. These products have area equivalent to only 0.4% of the total farmed land. benefited from consumers switching away from This compares with 900 farms in 1996 producing on intensively farmed products in response to recent 50,000 hectares (0.3% of the overall farmed area). In food scares. The baby food market in particular has spite of the growth, the total is still less than half the seen a rise of almost 50% a year (compared to 30% EU average, a little less than in France and for all organics) and is now worth almost 6% of the considerably less than in Denmark and Germany. overall baby food market which was valued at more than £145 million in 1997. Domestic organic production (in terms of total retail sales of £81 million in 1997) is divided into 20% Trade estimates indicate that fruits and vegetables arable crops, 35% livestock products and 45% (including dried and processed goods) account for horticultural produce. Again according to The Soil 45% of the market. The rest of the market is Association, the highest growth rates between distributed as follows: cereals and pulses 14%; meat 1995/96 and 1996/97 in terms of specific products 12%; dairy products 8%; processed organic foods were registered by triticale 208% (a growth from a 6.5%; baby foods 4%; tea and coffee 3%; wine and very low base); protected crops 196%; brassicas other alcoholic beverages 3%; eggs 1.5%; herbs 111%; barley 95%; rye 76%; dairy production 74%; 1.3%; confectionery 1%; and juices 0.7%. beef cattle 45%; and pigs 33%. No figures were available for peas, beans or poultry. In 1997, the The problem of availability has led to a high largest areas (in hectares) were allocated to the dependence on imports. Of total organic food sales, production of organic potatoes (836), followed by an average of 60% - 70% is imported, with cabbage (544), swede (275) and cauliflower (189). percentages varying significantly according to Most other organic products had a total land product sector. assignment of less than 100 hectares each. CHAPTER 12 – UNITED KINGDOM 253

The Ministry of Agriculture introduced an Organic Although these terms were improved in new Aid Scheme in 1994; the Scheme is part of an overall proposals in April 1998 (with payments increasing initiative taken by the European Union (EU from £250 to £450 per hectare for land eligible for the Regulation 2078/92). It is an area-based payments Arable Areas Payments Scheme, £350 per hectare for scheme open to any farmer who registers for organic other eligible grassland and £50 for ineligible conversion and complies with an inspection system grassland), the simple flat rate was continued as was governed by the United Kingdom Register of Organic the 300-hectare limit for any one organic unit. There Food Standards (UKROFS). Any agricultural land not also appears to be no realistic allowance for setting already in organic production is eligible to enter the land aside, which is an essential part of the organic scheme with a minimum size of one hectare and no process. maximum except a limit of 300 hectares for which aid will be granted. The Scheme gives payments to The trade view is that the Government is not truly alleviate both the costs of conversion and some of the committed to organic production and takes a more losses in income incurred. ‘free market’ interpretation of the Organic Aid Scheme than elsewhere in the European Union. In the In 1996 the Gov ern ment also intro duced an Organic United Kingdom, farmers are paid £70 per hectare for Con ver sion Infor ma tion Service, a free advi sory the first five years to convert to organic, less than half service to farmers and growers inter ested in con - the average disbursement from the Scheme by other verting to organic pro duc tion. It includes a tele phone European countries. The Government on the other help line, an infor ma tion pack and a pos sible on- farm hand argues that it does not want to encourage a con sul tancy for up to one- and- a- half days. The use of subsidy-reliant mentality among new organic farmers the scheme has increased signifi cantly since it was and that the sector needs to be put on a commercially introduced. viable footing as soon as possible.

Market characteristics and requirements

Market characteristics large as might be expected from the rela tive afflu ence of the United Kingdom and its early start in the The structure of the retail market has also reduced the devel op ment of an organic sector. Even today (July opportunity for extensive exposure of organic foods 1998) the market is far less devel oped than might be to the British consumer. The market for foodstuffs is expected, given its importance in inter na tional dominated by a few multiple chain stores (see cer ti fi ca tion and the fact that the people and below). Their policy towards food retailing has been organiza tions involved in the organic move ment in one of vertical control where possible of most stages the country are very active, quite popular with the of the distribution chain. In essence they have media and strongly com mitted. imposed an industrial regime on food production, insisting on strict specifications and time deadlines. One other pos sible reason for the com para tively small This is the antithesis of organic production and demand lies in the cul tural traits of the British distribution, and therefore organic products have not con sumer. The British seem less prone to featured significantly (until recently) within their envi ron mental alarmism than the citi zens of other development plans for food retailing. This in turn has coun tries. Many of them dis like the politi cally cor rect, meant that the majority of British consumers (over are scep tical of scare sto ries and are not as respon sive 70% of food retailing is controlled by these chains) to the so-called ‘whol esome and natu ral’ trends as have not had ready and regular access to organic con sumers in other European coun tries. Only a products. Furthermore, in those chain stores in which minority of consumers within cer tain social and age organic products have had a presence, the price brackets buy organics regu larly or respond to scares differential has been so high as to restrict demand. and media con cerns by increasing pur chases of their organics; they number far less than their coun ter parts Thus, nei ther the demand (though growing strongly) in some northern Euro pean coun tries. The cross over of for, nor the supply of, local organic prod ucts is as organics to main line con sump tion in major food 254 CHAPTER 12 – UNITED KINGDOM out lets is still in the process of occur ring, although it main ones are Israel, Egypt, the United States, is now increasing its pace with the greater Argentina, northern African countries and South involve ment and com mit ment of the mul ti ples. Africa.

The United Kingdom has also been experiencing a The vegetable and fruit trade stresses that British rapid increase in the number of vegetarians in recent consumers buy produce with their eyes. This applies to years. Although organic foods are not exclusively all fresh produce. It may always have been the case, vegetarian, consumers now opting to stop eating but it is probably all the more so nowadays when so meat for ethical reasons will be more likely to have an much consumer shopping is done in supermarkets interest in organic foods. A recent survey indicates where the customer cannot ask questions of staff, and that the number of vegetarians in the country where touching and smelling produce is somehow continues to grow at the rate of around 5,000 per inhibited. Only in recent years has there been much week: there were an estimated 3.1 million in 1997 (a scepticism among the British that the food offered to 100% increase on the total for 1990). them was other than fresh and wholesome, especially if it looked as though it was both.

Fruits and vegetables As regards distribution, the fruit and vegetable trade differs from that of some countries in Europe because It is estimated that fruits and vegetables (mainly its major outlets are supermarkets and box schemes fresh, but including dried and processed produce) rather than health food stores. make up about 45% of all organic food sold in the United Kingdom. Growth in this product sector has In terms of actual exposure to customers, the situation been steady but in recent years less spectacular than varies between type of retail outlet and indeed that of other products. The reasons are the lack of between parts of the country. First-hand observation acceptable supplies and the switching of consumer in one of the large multiples in the North of England interest from mainstream products to other organic revealed a separate, relatively small, organic fresh products as a result of food scares. fruit and vegetables section with about seven or eight different items, including bananas and avocados, and Vegetables have the largest demand, which is almost displaying a notice announcing that organic produce twice the size of the demand for fruit. Although this was now priced the same as their conventional has been assisted by the emergence of vegetable box equivalent. As seems to be a common occurrence schemes, it is the recent upsurge in the participation with organic fresh produce generally, however, the of the supermarkets that is likely to cause growth in boxes for one or two of the products were empty. the vegetable sector to pick up speed in the near future. In some stores visited, each organic item was displayed alongside its conventional alternative, The most popular vegetables are the all-year-round rather than in a separate organics section, and was not domestic products such as potatoes, onions, carrots easy to find. On the other hand observation in one of and other root crops. These often also have a lower the more organically committed multiples in London price differential than imported and seasonal revealed a wide range of very fresh and abundant products. fruits and vegetables with premiums averaging around 30% for domestic produce and up to 100% for Although only a limited range of organic fruit is imported fruit and exotics. A whole section was grown in the United Kingdom, fresh fruit still ranks devoted to them and they were marked with a in second place in sales by product category (with a distinctive organic logo. share of around 15% in 1997). Apples, pears and bananas are the most popular of the fruits sold There is no hard and fast rule as regards pricing, and although most outlets do have a small range of exotic the practice varies not only between chains but also fruit. between stores in different parts of the country. First-hand observation identified price premiums in As stated above, the United Kingdom imports around one store ranging from 50% on organic vegetables 80% of its organic fruits and vegetables. These come (carrots, mushrooms, new potatoes and white from other European countries or from a group of cabbage from Spain, the United Kingdom, Italy and established third-country suppliers, of which the the Netherlands respectively) to at least 100% on CHAPTER 12 – UNITED KINGDOM 255 organic fruits (apples, pears, grapes, oranges from the terms of a potential market for third-country suppliers United States, Argentina, Chile and Italy). In another outside EU, this sector thus provides little potential. store the premiums on a similar range of products from more or less the same countries varied from Having said that, growth prospects are expected to be 10% - 20% to over 100%. very good (the market is expected to triple in the next five years). This is particularly so for meat, since the Processed fruits and vegetables United Kingdom has one of the lowest European per capita consumption levels for organic meat. The BSE A wide range of processed organic foods scare has already catalysed growth in organic meat incorporating organic fruit and vegetable ingredients consumption and concern over animal welfare has is available from some of the wholesalers, in various further increased consciousness of animal husbandry forms – dried, canned, chilled and frozen. practices.

The chilled range is reported to be growing quickly. Premiums for organic meat and other animal produce One wholesaler has found that its sales of organic can be very high, but consumers seem likely to chilled foods (fruit juices, yoghurt, margarine, and demand and then to accept the consequences of the cheese) are now growing faster than those of dried, development of production systems with a higher ambient or frozen products. Another wholesaler than normal welfare component. The variations in identified chilled organic fruit juices as one of his premiums reflect production conditions for different significant growth areas. However, observation in types of meat, with organic pork and poultry having one supermarket store revealed a price premium of the highest premiums because of the low costs of the up to 200% on organic Israeli orange juice, though intensive mass production methods used. premiums of up to 50% are more normal. Cereals and pulses Organic soups are said to be increasing in range and popularity in all their various forms (chilled, fresh, Roughly half of the organic cereal supplies to and canned). One of the smaller chains has industry in the United Kingdom are from domestic introduced a limited range of frozen organic growers, and most of the rest comes from the vegetables, which are displayed alongside the European Union and the United States. The main standard version but with a high price premium. imports are hard wheat, durum wheat, maize and rice. Demand for fruits and vegetables for ready meals and baby foods is growing rapidly and significant market Most cereals are milled (sometimes by stone) by some opportunities exist for suppliers of appropriate 20 companies in the country. The two largest, Doves products. Farm and Shipton Mill, produce flour and bakery products. Cereal products include flours, breads, Supplying the processed foods sector requires a biscuits, breakfast cereals, porridge and cakes. long-term commitment to individual processors or intermediate suppliers. It also calls for growing A major grain merchant that has traded in organic produce to slightly different specifications than the cereals for over 12 years said that organic grains, a fresh market – a possible disincentive to growers. fifth of which it imports through brokers, currently Producing for both markets together should, represents just 1% of its total sales. Wheat and barley however, provide some balance in revenue and give are its two biggest purchases and it also deals in oats more return for products not reaching top grade. This and oil-seed rape. Its organic imports come mainly in turn could lead to more competitive pricing. from Europe, North America and Australia and none Overall, however, the prospects appear very good for from developing countries. processed organic food products. A significant part of the British output of organic Meat and dairy products cereals is used as feed for organically farmed animals from which meat, eggs and dairy items are obtained. Although this is a comparatively important segment of The grain is sold either direct to farmers who mill and the British organic market, most supplies of meat and mix it themselves, or to compounders who then sell meat products come from domestic production. In their mixes to farmers for different end-uses. 256 CHAPTER 12 – UNITED KINGDOM

The biggest growth area recently has been in organic For example, organic nuts (peanuts) and dried fruit wheat and soya for use as chicken feed by organic (raisins and sultanas from Turkey) are bought in large free-range egg producers. There has also been sacks by one wholesaler who then supplies them to a growing interest on the part of the supermarket chains manufacturer of fruit and nut bars. These bars are in organic poultry (and thus, poultry feed). Demand then bought back by the wholesaler for resale to the has grown somewhat for malting barley for use in the retail trade. production of organic beer, which sells overseas (particularly in Japan) as well as in the United One of the key British importers of organic dried Kingdom. fruits and nuts (and other organic ingredients for food products) is Community Foods. In fact, it offers such As grains used for animal feeds undergo little a wide range of organic products that many of the processing and packaging, the cost of raw materials other major organic food suppliers, packers and constitutes a high proportion of the price charged by processors use it almost as a one-stop shop. The bulk the grain merchant. Because of lower yields, the price of its organic sales is, however, made up of organic premium on the organic variety is high, generally in dried fruit, nuts and sunflower seeds, and this despite the region of 80% - 100%. Currently, however, the the fact that the large quantities of nuts and fruit that it premium is more likely to be 150% because the prepares and packs for some multiples and growing popularity of organic free-range eggs has independent department stores are not organic produced an excess demand situation. because of the large price premium. Indeed, although this wholesaler supplies a wide range of organic Cereals for bakery products tend to be bought direct products in addition to dried fruit and nuts (olive oil, by the millers rather than through grain merchants. A coffee, rice, etc.), and is regarded as a major British bakery (The Village Bakery) whose products are supplier, its organic sales make up only 1% of its almost entirely organic buys its organic flour from a business. domestic mill although about half of the raw materials for this originates in Europe and North Some of the dried fruits (mango, pineapple and America. Organic flour is the bakery’s most banana) which a bakery uses in producing important ingredient. The bakery supplies some of non-organic cakes and other products to order for a the multiples, independent retailers, caterers and trade customer are in fact organic at source. They are wholesalers with bakery products. not however certified as such because they are grown and dried by many small producers in Uganda and A number of importers/wholesalers (Hider Food Kenya. In this particular case, the baker’s customer is Imports, Harley Foods and Juniper Fine and Organic not convinced that demand for products containing Foods) buy and sell organic grains. One buys organic dried exotics and carrying the organic label is rice from Italy and North America in bulk from sufficient to justify the costs of having the growers Community Foods (see below) and then sells in bulk and the rest of the supply chain certified. or in smaller packs to retailers. Another imports organic rice direct from Italy and North America, Dealers in dried fruits and nuts offer a wide range of packed at source with the wholesaler’s label, and then serv ices. One importer and whole saler imports large sells it to other wholesalers which supply it to health quanti ties of organic rai sins from Argen tina in food shops. The same importer/wholesaler supplies con tainers and sells them in bulk quan ti ties to bakers organic grains to a muesli manufacturer which sells and other food manu fac turers and in retail packs to to the multiples. Another stocks a range of organic health food shops, at a premium of 25% over the pastas. non- organic variety. It also imports organic dried apri cots, pine apple and dates. Organic prod ucts make It seems clear that the cereals market is established up 50% of its overall turnover. Another wholesaler, and buoyant. Product inno va tion and an ever- whose turn over is 30% organic, buys organic rai sins increasing range of uses give it good potential for from another whole saler and then sells them to health further growth. food shops, deli ca tes sens, smaller gro cery chains, etc. Dried fruits and nuts A bakery has identified important gaps in the supply For dried fruit and nut products, supply systems are of organic nuts. This bakery is almost 100% organic, complex with much intertrading between suppliers. is certified by The Soil Association and supplies CHAPTER 12 – UNITED KINGDOM 257 organic bread and other bakery products (cakes, Another fair trade organization, Equal Exchange, flapjacks, etc.) to supermarkets, independent retailers supplies wholesalers with retail packs of various teas and wholesalers. It buys its dried fruit and nuts in (from India and the United Republic of Tanzania) and bulk, mainly from Community Foods. It reported coffees with the dual fair trade/organic tag. Percol that, whereas non-organic nuts can be bought by coffee, produced by the Food Brands Group from bakers and other food manufacturers in the numerous sources in South America, is also available. forms required for their different products (e.g. ground, blanched, ribbed almonds) the organic range Although the scene appears somewhat disjointed, was more limited (organic almonds, for instance, are there are some encouraging signs in the market. One supplied only shelled or blanched). of the major British packers of tea and coffee has decided that for products that are certified as organic Coffee and tea at source, it will “go through the hoops” to have the rest of the supply chain certified so that it can put an Most of the major coffee and tea companies in the organic label on them. This, the company hopes, will United Kingdom do not produce organic blends enable the product to be sold at a higher price to either for themselves or for the supermarket chains’ recoup the higher prices that it has to pay to suppliers own labels. of organic produce.

It appears that the volume of supply is not the limiting Coffee was identified by a number of respondents factor to market expansion but rather the entire during the fieldwork for this study as having economics of organic certification and the awareness relatively promising prospects for developing of consumers. Non-certified organic teas and coffees countries wanting to exploit the growing market for are already used but within traditional non-organic organic foods. This is because almost all of the products, e.g. coffee from Cuba, Ethiopia, Kenya, product is grown in tropical conditions. Furthermore, Yemen and the Galapagos Islands, and tea from the price premium required for organic coffee to Kenya. recoup its higher production costs is comparatively Several wholesalers in the United Kingdom supply low as the cost of the basic product constitutes a small organic tea and coffee. One of the country’s biggest proportion of the total cost of the final product on the importers of organic coffee (Hider Food Imports) is retailer’s shelf. Price need therefore not be a the exclusive importer of organic coffee from the significant limiting factor. Netherlands roasting house Simon Levelt. The coffee, a South American-Asian blend with the fair The important question that remains, however, is trade mark, is bought in retail packs and sold on to whether or not the overall market for all types of other wholesalers, health food shops, delicatessens coffee and tea is growing or whether growth in sales and department stores. Another wholesaler buys of the organic variety would be at the expense of the organic tea and coffee from Community Foods. non-organic, thus resulting in little overall impact on the income of producers in developing countries. Traid craft plc, one of several fair- trading organiza tions in the United Kingdom, sells tea As with organic foods generally, a key influence will (Darjee ling) and coffee (Peruvian, sourced through be the degree of involvement of the multiples. the Neth er lands) which are cer ti fied organic at source First-hand observation reveals some presence, with but which it cur rently does not label organic because most chains stocking the labels mentioned above. At the rest of the supply chain has not been certi fied. least one, however, now provides own-label organic Only about 2% of Traidcraft’s turn over is currently teas. The scene is set for an expansion generally in derived from organic foods. Oxfam, too, sells tea this sector especially if the costs of organic with the fair trade mark but without an organic label, certification can be justified by bulk trading and though the tea estates it buys from are con verting to retailing through major retail outlets. 100% organic gardening under IFOAM guide lines. Café Direct, which carries the fair trade mark, has Fish and fishery products achieved the highest market pene tra tion; it had around 4% of the ground coffee market in 1996. Organic fish (wild and farmed) is also now available Clipper Fair trade Tea has also had a degree of market in some outlets (e.g. Planet Organic). Such fish are suc cess since its launch in 1994. caught by sustainable and environmentally friendly 258 CHAPTER 12 – UNITED KINGDOM fishing methods in unpolluted waters. Although it is Other products difficult to establish a chain of custody,9 some suppliers have been certified. For instance, The Soil The other products of potential importance to Association has registered suppliers from Saint developing countries and which have prospects in the Helena (a British dependent territory in the South United Kingdom are sweeteners, pulses, oil-seeds, Atlantic Ocean) for tuna smoked by a British edible oils and fats, wines, and herbs. company – it won an Organic Food Award in the fish category in 1997.

Food laws and regulations

As mentioned earlier, the United Kingdom was a Asso cia tion, Organic Farmers and Growers Ltd, major contributor to the formulation of the EU-wide Organic Food Fed era tion, Scot tish Organic standards and systems, which now regulate the Producers Asso cia tion and The Soil Associa tion. organic market and ensure the integrity of the organic Arguably, The Soil Asso cia tion is pre emi nent. chain from farm to table. Surveys have demonstrated the importance of a logo As a basis for certi fi ca tion, EU Regu la tion 2092/91 in that 85% of the seasoned purchasers of organic estab lishes the rules for pro duc tion, proc essing and produce look for a symbol. Until recently the symbol importing, including inspec tion, record keeping, of The Soil Association was the best known, but this labelling and mar keting. Each country in the may well change. In the new wave of supermarket Euro pean Union is respon si ble for setting up an activity in the market it has been observed that they inspection system. Each inspection body has a degree are using a range of approved certifiers. Indeed one of of flexi bility in interpre ting and enforcing the the major chains has developed its own logo (a blue Regu la tion because the latter provides only the circle) for its organic range. British supermarkets are minimum require ments for cer ti fi ca tion. very jealous of their own reputations and branding, and are widely trusted by their customers, so it is The United Kingdom Gov ern ment desig nated quite likely that their customers will accept any UKROFS (United Kingdom Registry of Organic UKROFS-registered certifier which the supermarket Food Stan dards) as a con trol body in 1987. It has of their choice cooperates with. However, the pro duced a set of national stan dards and estab lished importance of a generic logo, e.g. that of The Soil an independent cer ti fi ca tion and inspec tion scheme Association, should not be underestimated. for organic producers. It has an independent board with exper tise from the pro duc tion, retail, con sumer As regards imports into the United Kingdom, and trade stan dards sec tors. It has a sec re tariat within UKROFS enforces one of the basic tenets of EU the Ministry of Agri cul ture, Fisheries and Food. Regulation 2092/91 in the country, viz. that “... UKROFS can operate as a cer ti fying body, but organic food imported from outside the EC is grown pre fers to monitor and safeguard the activi ties of and certified to equivalent standard (to that within the other cer ti fying bodies rather than under take that EC) and that the exporting country’s standards and work itself. There are a number of approved inspection systems must be notified to and assessed cer ti fi ca tion bodies in the country (see Annex I). by the EC.” The Regulation is discussed in some They include The Bio- dynamic Agricul tural detail in chapter 2.

9 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. CHAPTER 12 – UNITED KINGDOM 259

Distribution channels

Importers, traders and wholesalers Although other suppliers proliferate in the United Kingdom, they are either mainly small product To date the major suppliers of organic foods to the specialists or suppliers of conventional produce British retail trade have been specialists in various increasing their participation in organics in response product ranges. Many supermarkets and other outlets to supermarket demand. deal with a handful of well-established wholesalers which operate with overseas as well as domestic Some supermarkets are seeking imported organic suppliers of fresh organic produce. Some wholesalers supplies from their traditional suppliers on the also sell on to other wholesalers with whom smaller grounds that such suppliers are familiar with the retailers deal. nature of the supermarket business and have the requisite standards of efficiency. Thus traditional In the fresh fruits and vegetable sector, the largest and suppliers to supermarkets, such as Sapphir, Mack best known is Organic Farm Foods of Wales (now Multiples and Wealmoor, are attempting to increase with branches throughout the United Kingdom). This their involvement in the organic business. This company supplies supermarkets, box schemes, health requires reconciling the rigorous logistics of normal food shops, specialist organic supermarkets, supermarket supply with the more ‘natural’ processors and even customers in other European characteristics of organic supply operations – not a countries. It has branches and pack houses in the simple conversion. United Kingdom, France and the United States, and agreements with companies in other European There are a large number of specialist suppliers. countries. It meets its customers’ requirements Information on some of these companies (e.g. through its wide network of suppliers in the United importers of cereals, dried fruits and nuts, coffee and Kingdom, in Europe and in countries in most other tea) is given in the earlier section on market regions of the world – over 60 suppliers in all. This characteristics (pp. 255 ff.). network was established and is maintained through an active policy of nurturing its suppliers and assisting them with agronomic practices, financing, The retail sector certification and export servicing. The shares of the various types of outlets in the The Organic Marketing Company, also a specialist market for organic foods in 1997 are estimated at supplier, is a large organic vegetable production firm 60% - 65% for supermarkets, 18% for farm gate and in Herefordshire and is cooperatively owned by its box schemes, 14% for independents, 3% for health members, mostly growers. It now concentrates on food shops and the rest for market stalls. Although supplying box schemes. It is not, however, an the share of box schemes has grown the most in importer. Another important company in the fruit and recent years, supermarkets are now likely to gain vegetable trade is Congelow Produce Ltd (located in share faster in the near future. Kent). It is clear that any significant future expansion of the Wholesalers may deal in pre-packed produce, or organic market in the United Kingdom and a operate as a pack house. Perhaps the largest in both crossover into mainline consumption rests with the these groups (with a turnover of about £30 million) is supermarkets. This is already happening and growth Community Foods, a leading importer, wholesaler expectations are high. and distributor of ‘natural foods’ which have gone through a degree of processing. At about 10% of its All in all it can be concluded that the major turnover, organics are a growing part of the business, determinants of development in the organic retail but in big product lines such as apricots, peanuts and sector are the supermarkets’ perceptions of what almonds, organics remain a small line. A range of consumers want, the availability of quality supply, a organic produce – especially oils and dried or relationship with suppliers who understand the otherwise preserved goods, and including teas – is standards of the retailer and can confirm a chain of wholesaled under its own or other labels, often after custody, and a reduction in the price premium for packing in its own warehouse. organic foods. 260 CHAPTER 12 – UNITED KINGDOM

Developments in various types of retail outlets are reversed, some of the large chains started to have discussed below. doubts about the willingness of large numbers of shoppers to pay price premiums for produce which Multiples often looked unattractive and were not regularly available. It is estimated that the top five supermarket chains control over 70% of the food market in the United During the last decade or so this has resulted in Kingdom. They have evolved into extremely something of a pattern among the mul ti ples of powerful forces, controlling the range and quality of venturing into, testing, drop ping out of and, after a supply and the level of availability of products to number of years, re-entering the market for organic British consumers. Over the last 20 years they have fresh produce. Most of them clearly see this as a extended their influence all the way through to the potential growth area but one with a number of original producer, regardless of where it is located, com pli ca tions to overcome. These are related and today not only dictate product specifications and particularly to reli ability and conti nuity of supply, quality but also planting, harvesting, packaging, quality require ments and pricing. transportation and delivery. The high degree of competition between them has resulted in increasing The approaches taken to tackling these supply and stringency and rigour in their expectations of the pricing issues have varied. products they handle and their purchasing power has enabled them to direct their suppliers towards During the field investigations for this survey, increasingly mechanistic and almost industrial Sainsbury’s, one of the most active players in the methods of producing food. organic sector, stated that it sold twice as many lines of organic produce as its nearest rival. It has The United Kingdom is one of the leading countries committed itself to expanding its range so that in terms of the volume of organic products sold wherever possible an organic product is on offer through supermarket outlets. However, the alongside every conventional product. It is pledged to supermarkets, because of the very nature of their increasing the percentage of organics from 1% to 5% business and their insistence on control, regularity in of its total food sales. It is also actively involved in the specifications and timing of supply, have, until just wider organic movement in the United Kingdom by recently, reduced the consistency and pace of their fostering domestic production and sponsoring involvement in the trade. Their requirements do not conferences, workshops and the like. In associating fit in with organic products which of essence are not with the organic supplier group SOURCE, its uniform in shape, size or colour, are not blemish free objective is to raise the quality and increase the and are not produced to a strict timetable. Thus in quantity of organic supplies and promote R & D. spite of its strong position, the involvement of the supermarket sector in the organic trade has been Waitrose, another of the major multiple chains, has characterized by periods of enthusiastic development gone into organic sales in a big way. One of its stores followed by complete withdrawals from handling in London, visited during the field research for this organic produce. study, had a wide range of clearly presented organic products. There was for example about 6 - 8 metres of In the late 1980s, there was considerable media individual shelf space given over to organic attention on green issues and, anxious to appear green vegetables and fruit. There were clear “Organic” and to command the loyalty of high-spending green signs and the products were all labelled with a large consumers, supermarkets began increasingly to blue “O”. The average price premium for organics devote a good deal of time and space to organic was about 30%; many items were priced 10% - 15% produce. They also identified a gap in the market for higher than their mainstream counterpart products. organic produce that was not being met because of the incapacity of the health food sector to handle such Tesco, one of the largest supermarket chains, has merchandise. As a consequence, sales increased created a specialized staff post solely devoted to the fivefold between 1988 and 1993 (from a base of development of organic sales from its outlets. It £20 million). began heavily promoting organics in October 1996, and did so on the basis of near-parity of prices This period of rapid growth did not continue between organic and conventional produce, deciding however. Although the trend was never quite as a matter of strategy to pass on profits from the CHAPTER 12 – UNITED KINGDOM 261 sector to the consumer in the form of discounts. It retailers and dedicated organic shops. An organic says that it has seen a fivefold increase in sales of supermarket, Planet Organic in London, specifically organic produce in the period and hopes to raise the aims to provide space and facilities for an organic share of organics from the present 1% of the firm’s alternative to most products, fresh and processed, and £1.6 billion fruit and vegetable sector to perhaps 5% thus offers a full range of organic food and beverages. in three to four years, quadrupling the number of It is now experiencing good growth after a difficult stores stocking organic produce. first year and is planning to set up similar stores in cities in the South. Safeway, a pioneer in the organics market 10 or 15 years ago, has in recent years concentrated its Most British cities have health food stores (chains attention in the area of organics on the young family such as Holland and Barrett) on their high streets market. This was particularly motivated by the which carry an increasing range of organic foods, anxiety of mothers concerning food safety. notably processed foods such as grains, raisins, pasta and pulses. It is unlikely however that they will For one of the major chains (Asda) the experience has become significantly involved in the further not been that encouraging. In 1998 it tested the development of the organic food market. market for the second time in five years, with the testing restricted to its larger stores. Though significant customer interest was generated, the Box schemes company temporarily withdrew from the market because its supplier had been unable to meet its Box schemes are another signifi cant market outlet quality specification. This supermarket chain is of the and one in which there has also been a dra matic rise opinion that its customers want organic produce to in sales in recent years. Mem bers of such schemes have the same quality and appearance as the pay a fixed price for a box of in- season organic fruits conventional variety. In a deliberate effort to secure and vege ta bles, accepting the mixed range, quality customer interest, the company earlier this year and quanti ties that are pro vided. It is an attempt to started to offer its organic fresh produce at price strengthen ties between producers and consumers levels similar to its traditional lines, in the belief that and pro moting accep tance of the less uni form nature customers are resistant to significant price premiums of organic pro duce. Such boxes can be bought at the on organic produce. shop/farm or at a cen tral delivery point; they can be delivered to the home or by mail order. Although Health and organic stores accu rate fig ures are dif fi cult to get, The Soil Associa tion has estimated that there were 130 such Unlike in some other countries where health food schemes in opera tion in 1997, catering to some shops have been important, the British health food 40,000 fami lies and involving 30% of growers in the trade has never tried to compete with the supremacy United Kingdom. of the supermarket as a supplier of fresh organic produce and groceries. In some European countries Although there was good growth in this market (as in the United States), health food stores have segment between 1994 and 1996, it appears that there carried organic produce, especially fresh foods, is now some evidence of a degree of disenchantment which has made possible the development of a with the schemes. Consumers are starting to network of local growers and suppliers. In the United complain, and journalists are starting to write about Kingdom, by contrast, organic farmers and growers the wastage of unwanted produce, the lack of have had to sell direct to the public (in farm shops), or identification of some of the produce and its have developed links with a small number of unattractive appearance. All this is seen as increasing wholesalers and the small number of supermarket the real price differential. chains in which most people do most shopping. Health food shops have not had the physical capacity Other outlets for organic produce are farm shops, to handle fresh produce, although this is now mainly for fruits, vegetables, meat and dairy changing. products. These arose at a time when health food shops could not handle fresh produce and Several other organic retail outlets are more supermarkets were either reluctant to stock the range important than health food stores. They include or were demanding specifications which were butchers, farm shops, greengrocers, independent impossible to meet. 262 CHAPTER 12 – UNITED KINGDOM

Processors and food manufacturers This company produces a range of baby meals, cereals, pasta shapes and drinks which are free from True conversion of organic produce into a processed additives, added sugar, processing aids and fillers. product is in its infancy in the United Kingdom. The They source their ingredients from local organic number of companies that can be called true farms. The company, which is still the market leader, processors is small. The Soil Association does have a faces strong competition from Hipp UK, which large register of processors but most of those listed claims to have increased market share by 140% over are packers and re-distributors or family-type kitchen 12 months. operations. Few large food manufacturers have considered broadening their range of products to Whole Earth Foods, a London-based company which include organics. was involved in the genesis of organized organic retailing in the country, has pioneered the manufacture Grain milling is the primary activity of the organic of foods from imported organic produce over many processing sector and Doves Farm Foods, Jordans, years. Its processed products began to appear in the Shipton Mill and Morning Foods are the major late 1970s with avowedly ‘healthy’ and ‘natural’ foods, suppliers of organic flours and cereals. Some large sold to a generation of consumers interested in dairies have also gone into processing with, for alternatives. Among their products were low-sugar, example, Yeo Valley producing organic yoghurt low-salt versions of traditional foods such as baked from milk supplied by the Organic Milk Suppliers beans, jams, peanut butter, chocolate and ketchup. Co-op. In essence, although British organic retail shelves are The significant recent growth in organic baby foods stocked with wide ranges of dried, canned, bottled, (approximately 50% yearly) as a result of food scares ready meals, oils, beers and other processed products, has supported the development of a processing most of these are either imported or produced on a company in the United Kingdom – Baby Organix. small scale by local organic producers.

Market prospects

The United Kingdom is clearly one of the prime gov ern ment sup port for domestic organic farming markets to be targeted by prospective suppliers of because, even if the number of domestic organic organic foodstuffs. As already mentioned there farmers were to double, the resul tant increase in appears to be enormous prospects for growth in the supply would not meet existing demand. At present market for organic foodstuffs. Informed trade sources the United Kingdom has to import close to 70% of its at all levels anticipate organics taking 10% - 15% of total organic require ments and this situa tion is likely the food market within 10 years compared with 0.4% to con tinue. at present. As explained above, there are various rea sons for the Steady growth is forecast for fruits and vegetables. low level of involve ment of British farms in organic The anticipated growth rates of the markets for meat, produc tion. First, the compara tively large size of wine and beer and all processed foodstuffs are among these farms makes con ver sion more dif fi cult. Second, the highest in Europe as a result of the relatively gov ern ment policy has not been viewed as being as undeveloped state of these markets in the United practi cally encour aging as in many other European Kingdom. The current average growth rate for all countries. Finally, the market structure requires organics in the country is estimated at around 30% speci fi ca tions which are not easily met by organic per year by The Soil Association. The trade expects produc tion. future growth rates for specific produce to be even higher. Although it is reported that the volume of domestic organic supply is increasing steadily and that the Achieving this, how ever, will require a sig nifi cant number of farmers switching to organic systems is increase in supply avail ability. In terms of domestic growing, there is still considerable doubt about the pro duc tion there will need to be effec tive pro ac tive commitment of the Government to the process. CHAPTER 12 – UNITED KINGDOM 263

Whatever the interpretation, the fact remains that produce remain a niche market because its promotion domestic supplies of organic produce are unlikely to may be taken to imply that there is something wrong increase at a level that will keep pace with the overall with the standard product. growth of the market. This means that even if growth in overall organic sales were to slow down there will Thus a major issue for organic producers must be still be an incremental growth in the market for whether promotion by the multiples of their ICM imported organics. This will be reinforced through produce as a more affordable alternative with more the increased participation of the supermarkets in the control over supply will limit the growth in demand sector and their search for new sources of regular and from consumers for organic produce, or perhaps the reliable supply. competition will force the organics price premium down to a level which consumers will tolerate. The There are, of course, threats from alternative supply implications of this trend are as applicable to sources. Integrated crop management systems have processed products (dried, chilled, frozen, etc) as they been actively supported by some supermarkets: these are to fresh produce. combine the efficiency of intensive systems with organic practices. To tackle the growing public The other potential threat is from genetically unease with high levels of usage of chemical modified foods, which have developed very quickly pesticides, etc., health scares and the increasing in the United States and have started to make inroads concern with related environmental issues, all the into the United Kingdom. There is a considerable multiples have come together to develop crop lobby against them, however, and resistance is strong. protocols with which all their United Kingdom Such foodstuffs do have an impressive list of growers of fresh fruits and vegetables and now their qualities, however, and are available at competitive overseas suppliers must comply and be inspected prices. The attitudes of the major supermarkets will against. These Integrated Crop Management (ICM) once again be crucial in the forthcoming contest for protocols impose lower levels of usage of chemical shares of the changing United Kingdom market for pesticides and fertilizers, and the use of natural pest foodstuffs. A four-part market may thus emerge in the control techniques, e.g. the introduction and short to medium term, divided amongst intensively encouragement of natural predators. farmed products, pure organics, ICM protocol products and genetically modified produce. One of the top three multiples started a programme to encourage ICM among its suppliers as early 1991. By In spite of this struggle for the food market, there is still the end of 1996, over 80% of its domestic fruits and likely to be a sub stan tial vacuum for sup pliers abroad vegetables and 45% of its overseas produce were of organic pro duce. For prospec tive developing being grown to ICM protocols and it had plans for country suppliers seeking to make an effec tive and further increases in these percentages. At the same sustain able entry into the United Kingdom, the time it is involved in assisting the development of the oppor tu nity does exist and is poten tially sig nifi cant as organic sector. long as they realize that this is not a trade to enter lightly and that a proper under standing of what Some specialists anticipate that before long this ICM ‘organic’ truly means is essen tial. produce could become the standard against which organics will have to compete and that there will be With pressing competition from alternative systems, an ever-increasing availability of ‘halfway house’ it will become increasingly crucial therefore that the producers supplying products with no obvious price development of an organic supply base and premium attached and which are marketed as having distribution system is done properly by developing features which take account of the growing interest in country suppliers through appropriate national or the environmental, health and social aspects of food international certification, state-of-the-art agronomic production. Indeed, the question has been raised support and a strong relationship with an established whether the multiples would prefer to see organic distributor. Annex I

United Kingdom: selected addresses*

IMPORTERS/PROCESSORS/ Fax: +44-1488 685235 Juniper Fine Foods DISTRIBUTORS (Importer, distributor, miller, Unit 2, Downs Way Industrial Estate processor of cereals and flour) Tinwalds Downs Road, Heathall Dumfries DG1 3RS Anglia Oils Lim ited Tel: +44-1387 249333 King George Dock English Village Salads Camblesforth Grange Fax: +44-1387 249900 Kingston-upon-Hull Brigg Lane, Selby (Wholesaler of fresh, ambient, East Yorkshire HU9 5PX chilled and frozen foods and Tel: +44-1482-701271 Yorkshire YO8 8ND Tel: +44-1757 617161 beverages) Fax: +44-1482-709447 Email: [email protected] Fax: +44-1757 614109 (Importer of fresh salad products Just Wholefoods (Importer of raw materials; and supplier to major multiples – Unit 2, Cirencester Business Estate processor of oils) part of Geest plc) Long Lane Cirencester GL7 1YG Baby Organix Gleadell Banks Ltd Tel: +44-1258 651910 Organix Brands plc Fax: +44-1258 651910 No. 4 Fair fields Close, Christ church Lindsay House, Gainsborough Lincolnshire DN21 5TH (Food manufacturer of organic Dorset BH23 1QZ Tel: +44-1427 421225 instant soup mixes, etc.) Tel: +44-1202 479701 Fax: +44-1202 479712 Fax: +44-1427 421230 (Large grain merchant – cereals Oasis Food & Drink (Proc essor/importer/dis tributor of baby foods) and pulses) Sunset House Ennis Close, Wythenshawe Harley Foods Manchester M23 9LE Clearspring Ltd Blindcrake Hall, Blindcrake Tel: +44-161 283 8888 Unit 19, A. Acton Park Estate Fax: +44-161 283 8899 London W3 7QE Cockermouth GA13 0QP Fax: +44-1900 828276 (Wholesale distributor of chilled, Tel: +44 181 7491781 frozen and ambient health food Fax: +44-181 81118893 (Importer, wholesaler – dried fruit, pulses, grains, herbs, rice) products) (Importer and wholesaler mainly of exotic food products) Hider Food Imports Organic Farm Foods Wiltshire Road Llambed Estate, Lampeter Com mu nity Foods Kingston upon Hull HU4 6PA Carmarthenshire SA48 8LT Brent Ter race Tel: +44-1570 423099 London NW2 1LT Tel: +44-1482 561137 Fax: +44-1482 565668 Fax: +44-1570 423280 Tel: +44-181 450 9411 (Importer, wholesaler, processor, E-mail: [email protected] Fax: +44-181 208 1551 packer – nuts, dried fruits, beans, (Major importer and wholesaler of (Leading importer, packer and dis - coffee, pulses, herbs, spices) all types of organic produce) tributor of organic prod ucts including dried foods, pulses, cereals) Hipp Nutrition UK Organic Marketing Company 169 Greenham Park, Newbury Unit 1, Leighton Court Congelow Products Ltd Berkshire RG15 8JH Lower Eggleton, Ledbury Den Farm Lane, Collier Street Tel: +44-1635 528250 Herefordshire HR8 2UN Tonbridge, Kent TN12 9PX Fax: +44-1635 528271 Tel: +44-1531 640819 Tel: +44-1892 730447 Fax: +44-1531 640818 Fax: +44-1892 730566 (Baby food manufacturer/importer) (Packing and pre-packing importer (Importer and wholesaler of organic Infinity Foods of fruits and vegetables) fruits and vegetables) 67 Norway Street, Portslade East Sussex Suma Wholefoods Doves Farm Foods Tel: +44-1273 424060 Dean Clough Salisbury Road, Hungerford Halifax HX3 5AN Berkshire RG17 0RF Fax: +44-1273 417739 (Importer and wholesaler of a wide Tel: +44-1422 345513 Tel: +44-1488 684880 range of organic produce) Fax: +44-1422 349429

______* List not exhaustive. CHAPTER 12 – UNITED KINGDOM 265

(Wholesaler and manufacturer of Tel: +44-181 395 9749 Fax: +44-1344 825072 organic vegetarian and vegan Fax: +44-181 395 95749 (Major multiple chain store retailing products) (Importer of bulk ingredients for organic products; see also annex III) on-sale to food manufacturers) Taylors of Harrogate Pagoda House, Prospect Road RETAIL ORGANIZATIONS CERTIFICATION BODIES Harrogate HG2 7NX Tel: +44-1423 889822 Fax: +44-1423 881083 ASDA Bio-Dynamic Agricultural Asda House, Great Wilson Street (Tea blender and coffee roaster) Association (Demeter) Leeds LS11 5AD Woodman Lane Tel: +44-1132 435435 Clent, Stourbridge The Food Resource Base Fax: +44-1132 418304 Fife Food Centre, Faraday Road West Midlands DY9 9PX (Major multiple chain store increasing Tel: +44-1562 884933 Southfield Industrial Estate its involvement in organic products) Glenrothes KY6 2RU Tel: +44-1592 775884 Organic Farmers and Growers Cooperative Wholesale Society 50 High Street, Soham, Ely Fax: +44-1592 775955 Hanover Building, Hanover Street (Manufacturer of fresh organic soups Cambridgeshire CB7 5HF Manchester M60 4WS Tel: +44-1353 720250 and sauces) Tel: +44-161 827 5592 Fax: +44-161 827 5495 Organic Food Federation The Quiet Revolution (Major cooperative with increasing The Tithe House, Peaseland Green The Coach House, 6 Duncan Street involvement in organic retailing) London N1 8BW Elsing, East Dereham Tel: +44-171 278 2121 Planet Organic Norfolk NR20 3DY Fax: +44-171 278 1958 42 Westbourne Grove Tel: +44-1362 637314 (Processor of fresh organic soups) London W2 5SH Fax: +44-1362 637398 Tel: +44-171 221 7171 The Village Bakery Fax: +44-171 221 1923 Scottish Organic Producers Melmerby, Penrith (Organic supermarket in London with Association Cumbria CA10 1ME plans to establish regional outlets in Milton of Cambus Farm, Doune Tel: +44-1768 881515 major cities in the United Kingdom) Perthshire FK16 6HG Fax: +44-1768 881848 Tel: +44-1786 841657 (Wholly organic bakery, importer and Safeway Fax: +44-1786 841657 caterer, supplier to major multiples) Argyll House Millington Road, Hayes The Soil Association Traidcraft plc Middlesex UB3 4AY 40-56 Victoria Street Kingsway North, Gateshead Tel: +44-171 695 6000 Bristol BS1 6BY Tyne & Wear NE11 0NE Fax: +44-171 695 7610 Tel: +44-117 914 2400 Tel: +44-1914 910591 (Major multiple retailer involved with Fax: +44-117 925 2504 Fax: +44-1914 822690 organic products) E-mail: [email protected] (Fair trade food organization) Sainsbury’s Ltd GOVERNMENT OFFICES Vintage Roots Stamford House London SE1 9LL Sheeplands Farm, Wargrave Road Ministry of Agriculture, Fisheries Berkshire RG10 8DT Tel: +44-171 695 0024 and Food Tel: +44-118 940 1222 Fax: +44-171 695 7507 Nobel House, 17 Smith Square Fax: +44-118 940 4814 E-mail: robert.duxbury@tmo. (Importer and wholesaler of organic sainsbury.co.uk London SW1P 3JR wines, beers, ciders, spirits, juices (Major multiple with long involvement Tel: +44-171 238 5803 and oils) in retailing organic products) Fax: +44-171 238 6148

Whole Earth Foods Tesco United Kingdom Register of 292 Portobello Road Tesco House Organic Food Standards (UKROFS) London W11 1LR Delamare Road, Cheshunt Nobel House, 17 Smith Square Tel: +44-171 229 7545 Hertfordshire EN8 9SL London SW1P 3JR Fax: +44-171 221 6416 Tel: +44-1992 632222 Tel: +44-171 238 6004 E-mail: Fax: +44-1992 644747 Fax: +44-171 238 6533 [email protected] (Major multiple chain store with increasing involvement in retailing http://www.earthfoods.co.uk OTHERS (Retailer, producer and wholesaler of organic products) organic foods throughout Europe under its own labels) Waitrose Mintel Market Intelligence Doncastle Road 18-19 Long Lane Windmill Organic Foods Southern Industrial Area, Bracknell London EC1A 9HE 66 Meadow Close Berkshire RT12 4YA Tel: +44-171 606 4533 London SW20 9JD Tel: +44-1344 424680 Fax: +44-171 606 5932 Annex II

Source countries of a sample of organic products seen at one supermarket outlet in London, March 1998

Apples: Italy, Argentina, Austria Fennel: Italy (Sicily) Silk: China Artichoke: Italy (Sicily) Ginger: Uganda Sultanas: Turkey Asparagus: Spain Grapefruit: Corsica Sunflower oil: France Aubergines: Italy (Sicily) Grapes: Chile Teas: India (Assam) and Sri Lanka Avocados: Spain, especially Hazelnuts: Corsica Tomatoes: Morocco Andalucia Lentils: Turkey, United States Beans (aduki, haricot, mung, pinto, Lettuces, various: Italy red kidney, soya): Mango: Cameroon Organic produce sourced United States Medlar: Italy (Sicily) from Israel’s Agrexco Carmel Beetroot: Spain Melon: Italy (Sicily) Organic Department Cashews: Sri Lanka Onions, white: Argentina Celery: Italy (Sicily) Oranges: Spain, Morocco Avocados Cherries: Italy (Sicily) Pears: Argentina Capsicums, red and yellow Chickpeas: Turkey Peppers (green): Italy (Sicily), Carrots Chopped tomatoes: Italy Morocco Celery Cocoa: West Africa, Belize Potatoes: Italy (Sicily) Chinese leaf Coconut chips: Sri Lanka (via Good Prunes: France Grapefruit, white and red Food Foundation) Raisins: Turkey Lemons Cotton: Egypt, India, Turkey and Peru Raspberries: Italy (Sicily) Oranges Dates: Tunisia Sesame: Ethiopia Sweet potatoes Dried papaya: Sri Lanka (probably Shelled Bolivian amazon nuts Tomatoes, cherry organic, but not certified) (probably organic but not Dried apple, apricots: Turkey certified): Bolivia 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, Grocery items: baked beans, biscuits, brown sugar, wholemeal; rolls – white, stone-ground, wholemeal; canned tomatoes, chocolate, cocoa powder, coffee, patisserie – cakes, pastries and flapjacks. cornflakes, crisps/chips, flours, fruit and vegetable juices, honey, hot chocolate, jams and marmalades, milks, Chilled products: cooked meats, fresh pastas, fresh muesli, oatcakes and rice cakes, olive oil, pasta, porridge salads, fresh juices, soups. 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 Brochure describing principles and aims of organic Office, Ökozentrum Ismbach, D-66636 Tholey-Theley, farming.

Germany. Tel: +49-6853-5190, Fax: +49-6853-30110, th E-mail: [email protected]. Proceedings from the 4 International IFOAM Conference on Trade in Organic Products, Directory of Training and Education Opportunities Frankfurt, 1995. Tholey-Theley: IFOAM, 1995, for Tropical Organic Agriculture. Tholey-Theley: 132 p. IFOAM, 1995, 140 p. Proceedings from the 5th IFOAM International Ecology and Farming. Tholey-Theley: IFOAM. Conference: The Future Agenda for Organic Trade, Oxford, 1997. Tholey-Theley: IFOAM, 1997, Published six times a year, reports on 60 p. developments of organic agriculture worldwide; covers production, research, agropolitics and Rundgren, G. Building Trust in Organics: a guide to conference reports; each issue has a special focus set up certification programmes. Tholey-Theley: on organic agriculture in a certain region. IFOAM, 1998, 150 p. IFOAM Basic Standards of Organic Agriculture 12th IFOAM International Scientific Conference: and Food Processing. Tholey-Theley: IFOAM, 1997, Programme/Book of Abstracts. Tholey-Theley: 44 p. IFOAM, 1998. 237 p.

Organic Agriculture Worldwide. IFOAM Directory Vaupel, S. and Commins, K. Guide to Regulatory of the member organizations and associates. Requirements for Exporting Organic Food into Tholey-Theley: IFOAM - Annual. 1998/99, 64 p. International Markets. Tholey-Theley: IFOAM, 1997, 61 p. Organic Farming. Tholey-Theley: IFOAM, 1997, 18 p.

Other publications

Annuaire Vert. Paris: OCEP, annual. Edition OCEP, 11 Ausstellung der BIO Fach: Catalogue. Büchenbach: rue Saint Ambroise, 75011 Paris, France. Tel: Ökowelt Veranstaltungs, annual. Ökowelt Veranstaltungs +33-1-47004646, Fax: +33-1-47002491. GmbH. Industriestrasse 12, D-91186 Büchenbach, Germany. Tel: +49-171-96100, Fax: +49-171-4016. Annual directory, listing producers, suppliers, distributors, wholesalers, retailers, exporters and Catalogue of the annual organic trade fair, held in importers of organic products in France, entries Germany, usually in February of each year; lists cover full address information, products handled exhibitors in alphabetical order, as well as under and type of activity. product groups, with contact details and products handled.

* Annotations have been provided when possible. 270 SELECTED BIBLIOGRAPHY

Australia. Department of Primary Industries and Energy. Organic Farming: An International Perspective. Oxen: International Market for Organic Food: Survey. CAB International, 1994, 480 p. CAB International. Queensland, 1998, 45 p. Department of Primary Industries Wallingford, Oxen OX10 8DE, United Kingdom. Fax: and Energy, Rural Industry Business Services Group, +44-1491-833508. Suite MG46, Parliament House, Canberra Act 2600, Australia. Neuendorf, J. and Sabel-Koschella, U. Local Certification of Organic Foodstuffs in Developing GTZ-Protrade. Exporting Organic Products: Countries. Eschborn: GTZ, 1999. 34 p. Deutsche Marketing Handbook - 2nd ed. Eschborn: Protrade, Gesellschaft für Zusammenarbeit (GTZ), Postfach 5180, 1997. 212 p. Protrade, P.O. Box 5180, 65726 Eschborn, 65726 Eschborn, Germany. Tel: +49 6853 5190, Fax: Germany. +49 6853 30110, Web: http://www.gtz.de.

Manual covering the EU and United States Organic Production in Developing Countries: markets, outlines legal framework for trade and Potential for Trade, Environmental Improvement and gives hints on marketing organic products. Social Development. Geneva: UNCTAD, 1996, 48 p. (UNCTAD/COM/88). United Nations, Documents Health Foods: A Survey of the Netherlands and Other Distribution. Palais des Nations, 1211 Geneva 10, Major Markets in the European Union. Rotterdam: Switzerland. CBI, 1997, 128 p. CBI, P.O. Box 30009, 3001 DA Rotterdam, Netherlands. Schmidt, Hanspeter and Haccius, Manon. EU Regulation Gives overview on EU market for organic foods, “Organic Farming”. GTZ, Eschborn. Published and and gives practical advice on how to access it - also distributed by Margraf Verlag, P.O. Box 1205, D-97985 covers packaging, labelling and other trade-related Weikersheim, Germany. environmental measures, tariffs and relevant trade Van Elzakker, B. et al. Benefits of Diversity: An practices. Incentive towards Sustainable Agriculture. New York: International Trade Centre (ITC) and Commonwealth UNDP (Bureau for Programme Policy and Evaluation), Secretariat. Business Guide to the Uruguay Round. 1992. UNDP, One United Nations Plaza, New York, N.Y. Geneva: ITC/CS, 1995, 392 p. 10017, United States of America. Guide explaining rules of the Uruguay Round Willer, Helga, ed. Ökologischer Landbau in Europa. trade agreements and their implementation. Bad Dürkheim: Stiftung Ökologie und Landbau, 1998. 392 p. Stiftung Ökologie und Landbau, Weinstr. Süd 51, International Trade Centre (ITC) and Commonwealth D-67089 Band Dürkheim, Germany. Tel: +49-63-22 86 Secretariat. Business Guide to the World Trading 66, Fax: +49-63-98 97 01. System – 2nd ed. Geneva: ITC/CS, 1999, 329 p. Wright, S. Handbook of Organic Food Processing and Guide explaining rules of the Uruguay Round Production. London: Blackie Academic and trade agreements and their implementation. Professional, 1994. Blackie Academic and Professional, Lampkin, N., and Padel, S. eds. The Economics of 2-6 Boundary Row, London, SE1 8HN, United Kingdom.

Periodicals

Consumer Goods Europe (formerly: Marketing in FoodNews. Foodnews Company Ltd. 80 Claverley Road, Europe). London: Corporate Intelligence on Retailing. Tunbridge Wells, Kent TN1 2UN, United Kingdom. Tel: Corporate Intelligence on Retailing, 48 Bradford Square, +44-1892-533813, Fax: +44-1892-511803. London WC18 3DP, United Kingdom. Tel: Weekly providing market information on food +44-171-6969006, Fax: +44-171-6969004. products, dried and processed fruit and vegetables, Monthly featuring short market studies on various worldwide; occasionally covers information on consumer goods in Western European countries; organic products. occasionally also contains sector reviews on organic foods. Fresh News. Fresh and Healthy Foods, 125 West Seventh Street, Wind Gap, PA 18091, United States of America. Food Institute Report. American Institute of Food Tel: +1-610-8636700, Fax: +1-610-8634622. Distribution, Inc. P.O. Box 972, 28-12 Broadway, Fair Lawn, NJ 07410-0972. Tel: +1-201-791-5570, Fax: Quarterly newsletter, introduces latest organic +1-201–791-5222. products in the United States market. Weekly giving selected news. Comments and data Fruchthandel - Magazin. Dr Rolf M. Wolf Verlag on food products in the United States; occasionally GmbH, Postfach 105551, 40046 Düsseldorf, Germany. features market information on organic products. Tel: +49-211-991040, Fax: +49-211-663162. SELECTED BIBLIOGRAPHY 271

Weekly occa sion ally providing market infor ma tion Monthly providing information on issues affecting on organic fresh fruit. the organic food industry, including legislation and regulatory matters, production and trade. Fruitrop. Cirand-Flhor, 12 Square Pétrarque, 75016 Paris, France. Tel: +33-1-53702165, Fax: +33-1-53702170. Veille Internationale: Fruits et Légumes Frais. Paris: CFCE. Librarie du Commerce International, B.P. 428-16, Publishes 11 times per year, in English and French; 75769 Paris Cedex 16, France. Tel: +33-1-40733460, Fax: occasionally includes market information on +33-1-40733146. organic tropical fruit. Bimonthly featuring market information on fruit Frozen and Chilled Foods. DMG Business Media, and vegetables with international fresh coverage; Queensway House, 2 Queensway, Redhill, Surrey RH1 occasionally carries information on organic 1QS, United Kingdom. Tel: +44-1737-768611, Fax: products. +44-1737-855470. Veille Internationale: Fruits et Légumes Transformés. Monthly featuring news on the United Kingdom Paris: CFCE. Librarie du Commerce International, B.P. frozen and chilled food industry and market; 428-16, 75769 Paris Cedex 16, France. Tel: occasionally covers information on organic food +33-1-40733460, Fax: +33-1-40733146. products in the sector. Monthly featuring market information on Health Food Business. Bestway Designs Ltd, Claremont processed fruit and vegetables with international House, 12-18 Claremont Road, West Byfleet, Surrey coverage; occasionally carries information on KT14 6DY, United Kingdom. Tel: +44-1932-336325, organic products. Fax: +44-1932-533670. World Food Regulation Review. BNA International, Monthly highlighting new products, legislation Heron House, 10 Dean Farrar Street, London SW1H 0DX, and news on small business; occasionally features United Kingdom. Tel: +44-171-222-559-4801, Fax: news on organic products. +44-171-222-5550. Organic and Natural News. Virgo Publishing Inc. 3300 Monthly reports covering food regulations N. Central Ave., Phoenix, AZ 85012, United States. Tel: worldwide and issues arising from them; track +1-602-990-1101, Fax: +1-602-990-0819. provisions governing nutrition labels, additives, Monthly covering news and analysis related to the hormones, pesticide residues as well as packaging organic and natural products market in the United and disposal issues. States. January issue includes an annual “Buyer’s World Horticultural Trade and US Export Guide”. Opportunities. Washington DC: USDA. US Department Organic Trends: Critical Issues and Global News. of Commerce, Technology Administration, National Agrisystems International, 125 West Seventh Street, Wind Technical Information Service, Springfield, VA 22161, Gap, PA 18091, United States of America. Tel: United States of America. Tel: +1-703-6056060, Fax: +1-610-8636700, Fax: +1-610-8634622. +1-703-6056880. Bimonthly providing information on market trends Monthly providing information on the world for organic products, with international coverage. market situation and outlook for horticultural products; occasionally includes market The Organic Report. Organic Trade Association, 50 information on organic products. Miles Street, Box 1078, Greenfield, MA 01302, United States of America. Tel: +1-413-7747511, Fax: +1-413-7746432.