Organic agriculture potential still remains

Dr N Yogaratnam

Although as yet only a small industry in Sri Lanka, organic agriculture is becoming of growing importance in the agriculture sector in a number of other countries.

It has come to represent a significant portion of the food system, growth rate exceeding 20 percent annually in USA, France, Singapore, 10 percent in Austria, and 7.8 percent in Switzerland. In Sri Lanka it is still at a non-significant stage.

Consumer demand for organically produced food and fibre products provides new market opportunities for farmers and businesses around the world.

It also presents new challenges. For many years, and with great success, the private sector alone has developed the concepts and markets for organic products.

However, the surge in consumer interest, environmental benefits and enhancement of sustainability has created new interest from the public sector in developing countries like Sri Lanka.

This article discusses the opportunities and constraints of organic agriculture and the policies influencing the adoption of organic agricultural practices with the objective of promoting the expansion of organic agriculture industry in Sri Lanka.

Definition

An organic label indicates to the consumer that a product was produced using certain production methods. In other words, organic is a process claim rather than a product claim.

Tea produced by practices approved for organic production may very well be identical to Tea produced under other agricultural management regimes.

The International Federation of Organic Agriculture Movements (IFOAM), a non-governmental organization internationally networking and promoting organic agriculture, has established guidelines that have been widely adopted for organic production and processing.

According to the Codex definition, “organic agriculture is a holistic production management system which promotes and enhances agro-ecosystem health, including biodiversity, biological cycles and soil biological activity.”

It emphasises the use of management practices in preference to the use of off-farm inputs, taking into account that regional conditions require locally adapted systems.

This is accomplished by using, where possible, agronomic, biological, and mechanical methods, as opposed to using synthetic materials, to fulfil any specific function within the system. What makes organic agriculture unique, as regulated under various laws and certification programs, is that: (1) almost all synthetic inputs are prohibited, and (2) `soil building’ crop rotations are mandated.

Naturals and synthetics

The basic rules of organic production are that natural inputs are approved and synthetic inputs are prohibited. But there are exceptions in both cases.

Certain natural inputs determined by the various certification programs to be harmful to human health or the environment are prohibited (e.g. arsenic).

As well, certain synthetic inputs determined to be essential and consistent with organic farming philosophy, are allowed (e.g. insect pheromones).

Many certification programs require additional environmental protection measures in addition to these two requirements. While many farmers in the developing world do not use synthetic inputs, this alone is not sufficient to classify their operations as organic.

Markets

The demand for organic products has created new export opportunities for the developing world. While some consumers express a preference for locally-grown organic foods, the demand for a variety of foods year-round makes it impossible for any country to source organic food entirely within its own borders.

As a result, many developing countries have begun to export organic products successfully (e.g. tropical fruit to the European baby food industry, Zimbabwean herbs to South Africa, six African nations export cotton to the European Community).

Typically, organic exports are sold at impressive premiums, often at prices about 20 percent higher than identical products produced on non-organic farms. The ultimate profitability of organic farm varies, however, and few studies have assessed the long-term potential for such market premiums.

Nevertheless, under the right circumstances the market returns from organic agriculture can potentially contribute to local food security by increasing family incomes.

Entering this lucrative market is not easy, however. Farmers are denied access to developed country organic markets for two to three years after beginning organic management since such countries will not certify land and livestock as organic before that time, arguing that it is necessary for the purging of chemical residues.

Under the Codex guidelines, however, products produced on land under organic management for at least one year but less than the two-three year standard can be sold as “transitional organic”, although few markets have yet developed for such products.

Certification

In most cases farmers and post-harvest businesses seeking to sell their products in developed countries must hire an organic certification organization to annually inspect and confirm that these farms and businesses adhere to the organic standards established by various trading partners.

The cost for this service can be expensive, although it varies in relation to farm size, volume of production, and the efficiency of the certification organization (e.g. IFOAM recommends that certification costs a maximum of 5 percent of sales value, but where local certification organizations exist it is estimated that costs can be reduced to two percent of sales value).

Few developing countries have certification organizations within their borders, and even when sufficient resources are available to pay for certification farmers often lack the information to find credible inspectors.

While most developing country traders have focused on export markets in the developed world, domestic market opportunities for organic food or eco-food may also be exploited.

In China, for example, there is a growing market for “green food” which, according to government grading standards, is produced without certain pesticides and fertilizers and with biological methods.

Chinese farmers also produce organic food for export (e.g. tea to the Netherlands, soybeans to Japan).

Farm productivity

Farmers will probably experience some loss in yields when converting their operations to organic production. There is a period of time between the discarding of synthetic inputs and sufficient biological activity being restored to the land (e.g. growth in beneficial insect populations, nitrogen fixation from legumes) during which pest suppression and fertility problems are typical.

The degree of yield loss varies, however, and depends on factors such as the inherent biological attributes of the farm, farmer expertise, and the extent to which synthetic inputs were used under the previous management system.

Where soil fertility is low and biological processes have been seriously disrupted, it may take years to restore the ecosystem to the point where organic production is possible. In such cases other sustainable approaches, which allow judicious use of synthetic chemicals, may be more suitable start-up solutions.

One strategy to survive the difficult transition period involves converting farms to organic production in partial instalments so that the entire operation is not at risk.

Labour

Most studies find that organic agriculture requires significantly greater labour input than conventional farms.

This is especially true in areas of low ecological potential. However, when labour is not a constraint organic agriculture can benefit underemployed labour in rural communities.

Furthermore, the diversification of crops typically found on organic farms, with their various planting and harvesting schedules, may distribute labour demand more evenly which could help stabilize employment.

Soil-building rotations need to be designed both from the economic and the technical points of view - uses must be identified for all the crop and livestock products produced.

As in all agricultural systems, diversity in production increases income-generating opportunities.

It also spreads the risks of failure over a wide range of crops. It is possible that, even on those farms where organic crop yields are lower than those produced under systems which use high levels of inputs, the overall economic yields of the farm will be competitive since organic systems benefit from market premiums and sometimes lowered input costs.

Knowledge

The insights generated by organic farmers in their search for site-specific production strategies can be of great benefit to non-organic farmers interested in expanding their management options. However, organic farmers still face huge uncertainties. A lack of knowledge is an obstacle to organic conversion.

Extension personnel rarely receive adequate training in organic methods and studies have shown that they sometimes discourage farmers from converting.

Furthermore, institutional support in developing countries is scarce. Professional institutions with a capacity to assist farmers throughout the production, post-production and marketing processes are non-existent in many developing countries.

Sustainability

The explicit goal of organic agriculture is to contribute to the enhancement of sustainability. Nevertheless, negative impacts may occur and organic agriculture is not an exclusive method for sustainable farming.

The soil and water protection and conservation techniques of sustainable agriculture used to combat erosion, compaction, salinization and other forms of degradation are evident in organic farming.

The use of crop rotations, organic manure and mulches improves soil structure and encourages the development of a vigorous population of soil micro-organisms.

Mixed and relay cropping provide a more continuous soil cover and thus a shorter period when the soil is fully exposed to the erosive power of the rain, wind and sun.

Terracing to conserve moisture, and soil are used in appropriate situations and particular attention is paid in irrigated areas to on-farm water management.

Environment

Properly managed organic farming reduces or eliminates water pollution and helps conserve water and soil on the farm (although improper use of manure can seriously pollute water).

A few developed countries compel or subsidise farmers to use organic techniques as a solution to water pollution problems (e.g. Germany, France).

Organic farmers rely on natural pest controls (e.g. biological control, plants with pest control properties) rather than synthetic pesticides which, when misused, are known to kill beneficial organisms (e.g. natural parasites of pests, bees, earthworms), cause pest resistance, and often pollute water and land.

Reduction in the use of toxic synthetic pesticides, which the World Health Organization (WHO) estimates to poison three million people each year, should lead to improved health of farm families.

Soil fertility

Organic farmers aim to make the maximum use of the recyclable fertility in on-farm crop residues (straws and other non-edible parts) either directly as compost and mulch or through livestock as farmyard manure.

Eliminating the use of synthetic nitrogenous fertilizer greatly lowers the risks of nitrogen contamination of water.

Fodder legumes are well-known fertility-building crops can be grown on vast areas in sub-tropical Asia for the dual purpose of feeding livestock and adding nitrogen to the farm fertility cycle. Grain legumes may also produce a reasonable crop without nitrogenous fertilizer.

Leguminous crops in rotations add various amounts of nitrogen to the overall farm system through biological fixation; other nitrogen-fixing plants such as Azolla may also be used.

Biological nitrogen fixation is a powerful technique but it often requires some addition of minerals to the soil, especially phosphorus. Most certification programs restrict the use of mineral fertilizers which may be necessary to supplement the organic manure produced on the farm.

Natural and organic fertilizers from outside the farm are used (e.g. rock phosphate, potash, slaughterhouse by-products, ground limestone, seaweed, wood-ash).

Crop rotations encourage a diversity of food crops, fodder and under-utilized plants; this, in addition to improving overall farm production and fertility may assist the on-farm conservation of plant genetic resources.

Integrating livestock into the system adds income through organic meat, eggs and dairy products, as well as draught animal power.

Tree crops and on-farm forestry integrated into the system provide shade and windbreaks while providing food, income, fuel and wood. Integrated agri-aquaculture may also be found within diverse organic agricultural systems.

Economic objectives are not the only motivation of organic farmers; their intent is often to optimize land, animal, and plant interactions, preserve natural nutrient and energy flows, and enhance biodiversity, all of which contribute to the overall objective of sustainable agriculture to preserve natural resources and ecosystems for future generations.

Public-private partnerships

The environmental and economic benefits of organic agriculture have captured the attention of several countries; however, only a small number have enacted policies to assist the organic sector.

Most assistance has developed in the private sector, especially by NGOs. This private sector infrastructure is not only recognized by countries, but also encouraged.

Farmers and consumers in almost all countries rely on a system of private self-organized producer organizations and independent certifiers which have, over the years, provided an economically-efficient mechanism of certification.

The degree to which private organizations are significant is indicated by the fact that IFOAM has some 650 individual and institutional members in over 100 countries, 75 percent of which are in developing countries.

However, the network of private certifiers needs to expand; as mentioned earlier, many developing countries still lack certification organizations.

Engaging in international trade requires quantities of goods well beyond the production capacity of individual small organic farmers. NGOs have supported farmers in their efforts to establish appropriate organizations for collecting, processing and marketing organic products.

Countries could support NGOs in building organizations which play a key role in disseminating best practices and ensuring that farmers use adequate production and post-production techniques.

Technical support

The lack of extensive formal organic research combined with the highly site-specific nature of organic agriculture, suggests that it would be most advantageous for farmers themselves to participate in locally-based, applied field research.

Codex guidelines, as well as most national and private organic standards, disallow genetically engineered organisms (GEOs), including transgenic crops, in organic production.

By providing consumers with a non-GEO produced alternative organic agriculture has secured an important market, at the same time relieving much of the pressure to impose out-right bans on GEO-produced food.

While current biotechnology applications have been rejected for organic production, it is possible that future scientific developments and further discussions may produce technologies acceptable to consumers (e.g. the value of tissue culture in producing disease-free planting materials).

Direct assistance

Interest in environmental protection and the preservation of small family farms has led developed European countries to subsidize organic production to varying degrees.

The subsidies can provide significant encouragement (e.g. UK provided assistance in terms of per ha basis during the conversion period for designated land areas; European Community subsidies have helped 15 percent of Irish organic farmers develop dairy operations).

Consumer confidence in the integrity of organic claims is essential if goods are to be sold at a premium. Because organic products cannot be distinguished from conventional products, consumers depend entirely on certifiers to truthfully distinguish organic from non-organic goods.

Countries could better enforce organic standards by punishing those who engage in fraudulent activities as well as undertaking systematic tracking and measuring of fraud and its impact on the market.

Conclusion

Although the Sri Lanka Government has established a Secretariat for this purpose, yet it should give organic agriculture a more legitimate place within sustainable agriculture programs and assist growers in their efforts to respond consumer demand in this sector. Organic agriculture may contribute to the overall goals of sustainability.

First, organic farmers and processors, in their attempts to adhere to rigorous certification standards, may discover new and innovative production technologies that apply to other agricultural systems as well.

Second, organic agriculture may provide market opportunities for farmers and processors who choose to alter their practices to meet certain consumer demands.

Finally, organic agriculture promotes the national and international public debate on sustainability by creating awareness of environmental and social concerns that merit attention.

In light of the above, a countrywide, cross-sectoral program in organic agriculture, inclusive of plantation sector, is needed. Such a program should focus on: provision of information and cost-effective discussion fora on organic production and trade; institutional support and policy advice to growers; facilitation of research, extension and networking; technical assistance for developing skills, organic standards and certification capacities; and pilot projects that explore and promote feasible location specific organic agricultural techniques.