Wednesday, September 12, 2012

What Next For The Organic Industry

Apart from North America, by far the greatest consumers of organic produce are European countries in Scandinavia, the Netherlands and Germany. Organic cotton is growing strongly, with sales rising 63 % in the US to $3. 2 billion in 2008. This trend has been conspicuously helped by the rise in exaltation of social standards like Fairtrade attached to cotton and textiles, which often have elements of organic production. Recent figures from the International Federationof Organic Agriculture Movement ( IFOAM ) indicate the biggest organic producers, based on hectares of land used for livestock, dairy farming and crops, are Australia, Argentina and Brazil. On a national prone, the highest proportion of agricultural land under organic management is in Austria ( 13. 4 % ) and Switzerland ( 11 % ).

Certification serves to regulate and forward the sale of organic products. It assures product quality and prevents falsification it also helps forward organic produce. As the market for organic food and other products grows and becomes mainstream, consumers rely on catechism party certification to identify products. In some countries, certification is awarded at government level and the commercial use of the descriptive term organic is restricted legally. This is the situation in the US, EU and Japan where the term may only be used by certified producers.

The US governments National Organic Program distinguishes three categories of organic: 100 % Organic, Organic ( contains at least 95 % organic ingredients ) or made with organic ingredients ( at least 70 % ). Only products in the first two groups are eligible to carry the USDA Organic Seal.

The relevant EU standard is the EU - Eco - regulation ( 1992 ). This is used as a basis for a number of standards and implemented by certification bodies at a national level. Non - EU countries, both in Europe and globally, have widely adopted the European certification regulations for organic food in order to increase export chances to EU countries.

There are many organic standards in use globally most derived from the national organic guidelines of the larger markets described above. The International Federationof Agriculture Movements ( IFOAM ) is an umbrella organization with more than 750 members in more than 100 countries. IFOAM offers an Organic Guarantee System which enables organic certifiers to become " IFOAM Accredited " and for their certified operators to label products with the prestigious IFOAM Seal next to the logo of their IFOAM accredited certifier. Other similar large membership organizations are the Organic Crop Improvement Association ( OCIA ) and Ecocert.

In Japan, the Japanese Agricultural Standard ( JAS ) is administered by the countrys Ministry of Agriculture, Forestry and Fisheries and certification to this standard can be awarded by international organizations. Chinas Organic Food Development Center ( OFDC ) provides an IFOAM Accredited organic certification service to the National Organic Product Standard of China and OFDC Organic Certification Standard.

While the organic sector may have suffered some setbacks in the wake of the 2007 - 2009 global recession and in the wake of recent consumer skepticism it is diversifying, clarifying its message and going more global. For example, a hugely growing segment is organic cotton which has emerged as a result of the Wests desire for eco - fashion and environmentally aware procurement in highly visible consumer segments. The sector is now worth 40 billion USD per year and traditional low cost producer India is hopingfor a large slice of this from almost a zero production base at present. Coffee, driven by the blockbuster success of Fairtrade, is also a hugely growing organic market. In short, the global organic markets will have to rely less on claims of health benefits and more on social and environmental factors. They will also need to address the price differential between organic and non - organic produce.