Archives

by Nihal B. Mawella, National Agribusiness Council

Though USA is the leading champion on growing genetically modified crops, it is also the largest and fast growing market for organic food products.

Organic food is cultivated with the commitment to respect biological and ecological processes. Organic farming is a science concerned with inter-relationship of living organism and their environments and the science covers economic and social aspects of agricultural production.

The objective of organic cultivation is to strengthen biological process without recourse, to chemical fertiliser, herbicide/pesticides and genetic modification of organisms. Therefore this approach is considered as a preventive method in controlling diseases, pests and weeds.

Organic products should be cultivated according to organic cultivation principles and the total production initiating from propagation, cultivation post-harvest, processing and handling process from cultivator to the market must be certified "Organic" by certification.

An accredited institution gives certified assurance that the produce labelled as "organic" is cultivated in a chemical free land or a converted land which complies with standards of organic cultivation.

"Organic" certification is compulsory for export trade in organic produce. An exporter should ensure the produce are certified according to the requirements of "Organic standards" applicable to particular market. Exporters also should be aware these Standards which differ from market to market.

The organic cultivation consists of two stages such as Inspection and Certification. In the inspection stage, production and handling functions are inspected according to the standards.

Certification function is a "system" or a stringent procedure to adhere that the production and handling regulations are followed strictly. The farm owner or planter has to sign an agreement with a Certifying Authority to obtain certification.

The following certification authorities handle organic projects in Sri Lanka; Organic Growers and Farmers Association, England;

M/S. SKAL - Holland;

M/S. BIO SWISS and Institute of Markatology - SWISS;

M/S. Naturland and M/S. Demeter International - Germany.

Once the certification is obtained, the labelling and marketing functions commence with the organic product carrying a certification markets, certifying the products as "organic" according to the requirement of the USA market.

The major markets, for organic products are USA, Japan and European Union. However, organic food sales in terms of a percentage of total food sales, (of organic and non-organic) are very small, varying between 3% and 4% of total food sales in the global markets. Though specific trade statistics are not available this indicates a strong potential for growth.

Germany is a growing market for Organic Produce with Sales of three billion Euro Dollars and the United Kingdom value of Organic Produce Sales is around two billion Euro Dollars in 2002. The other European markets such as Belgium, Spain and Greece and Holland are becoming important as their purchasing power has increased due to upgrade in standard of living during the last few years.

The United Kingdom is almost totally dependent on imported organic produce among all the European markets in Europe during the year 2002.

Specialised Organic Produce Importers are established in Rotterdam and serves as an important entry Port for European Union. Many importers in the Netherlands are distributors to European Union companies. The Port of Hamburg is another significant port of entry which distributes organic produce in EU.

Domestic production in the European Union is expected to increase in the coming years, but it is unlikely to meet the unsaturated demand of Europe Union for organic produce. The suitable products which can be grown and exported by Sri Lankan firms is mentioned in the latter part of this article. At present major organic produce suppliers are China, India, Mexico Brazil and the Dominican Republic.

The imports of produce into EU including organic produce is ever increasing. When the EU expands with the accession of new countries waiting to join the EU, total imports of produce and products will increase by hundred and fifty billion Euro Dollars according to CBI reports.

During the last eight years since 1995, the average annual increase of imports of accession countries ranged between 9 and 24% according to FIFO-Ost (www.fifoost.org).

The United States Department of Agriculture (USDA) introduced national standards on organic agricultural production and handling programs (National Organic program) and are likely to have a significant impact on the development of the organic food production and Organic food imports into USA.

The set up standards will increase the quality of organic foods, throughout the value chain, from farmgate to the supermarkets in major towns.

Potential for organic products in USA

Sri Lankan organic food producers should work with a reputable US importer who is associated with one or more USDA - credited certification bodies, as this will greatly facilitate the process. The Certification body does not have to be based in the United States.

The United States Department of Agriculture, National Organic Program web site http://www.ams.usda.gov/nop provides detail information on the NOP, its regulations and applications forms for accredition of certification bodies.

Organic produce suppliers can also obtain confirmation from the Independent organic inspectors associations (http://www.ioia.net) The Organic Trade Association is based on membership representing the organic industry in the USA Canada and Mexico.

Organic Trade Association encourages global sustainability and works to promote organic products and to protect the integrity of organic standards.

Information to prepare this article was obtained from the International Trade Centre, Geneva (ITC)

www.ceylincoproperties.com

www.ppilk.com

www.crescat.com

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries

Produced by Lake House
Copyright © 2003 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager