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Market expansion for organic foods depends on the outcome of a number of evolving issues like organic price premiums, the price-quality trade off, country of product origin, genetically engineered content, and integration of social goals into the production process. In the past five years, expanding global markets for organic foods have seen annual growth rates of 15 to 30 % in Europe, the United States, and Japan. Over 20 to 30 % of consumers surveyed across Europe, North America, and Japan claim to purchase organic foods regularly. The worldwide market for organic foods is estimated at about US $ 17.5 billion, with the US accounting for about $8 billion. The European organic market is estimated at $5.255 billion, while the Japanese organic market is estimated at $2.5 billion.
Market Growth Projections
According to ITC projections, the organic market size in 2010 is estimated at $ 46 billion in the EU, $45 billion in US and $11 billion in Japan. The exchange of organic products internationally is increasing dramatically. Markets are evolving to demand highly processed organic products as well as raw commodities. In Europe, markets are expanding for ready-to-eat meals, frozen foods, baby food, snacks, and beverages. Organic food processing ingredients include juices, fruit powders, dried fruit, meat, flavorings, essential oils, herbs and spices, and nuts. Sample trade flows into Europe are from Israel (fresh produce), Brazil-Chile-Argentina (fresh produce, soy, and wheat), other European countries (baby food, processed foods, cereals, and meat), Canada (wheat, soy, and canola), Mexico-Central America (bananas, citrus, and coffee, cocoa), Sri Lanka-India (tea), and the United States (processed foods of all types, wheat).
International Organic Market
• Current market size o World - USD 25 billion o USA - USD 8 billion o European Union - USD 7.5 billion o Japan - USD 3 billion o Growing market in metropolitan cities in India • World average growth rate 20-25% • Commands premium prices 15-50% over conventional produce • Entry barriers limited, as organic certification is critical Source compiled by ITC-2002
Market potential- (INDIA)
With the change in dietary need and enhanced income coupled with awareness for health there is a growing appreciation for organic products. Many of the hotels consume green food grown under the contracts. Organically labeled fruits and vegetables are also appearing on some of markets. Since India has much larger area, which have used minimal pesticides and chemical where potential for conversion exist, organic movement has taken a root in many of the states and there is growing demand especially in cities and market is expected to grow more than 20 per cent annually. It is envisaged that 20 per cent of production shall be organic in 5 years.
Existing Regulatory provision for domestic market
• Presently there is no regulatory mechanism for production & sale in domestic market. • Some private agencies/organizers are doing on their own in sporadic pockets. • Since country has enormous potential for organic agriculture, the Government of India has identified the organic farming as major thrust area during X Plan. • The existing legal framework deals with export of organic products and not for sale in the domestic market. • The Government is proposed to be restricted to formulating standards and designating accreditation agencies. • The private sector, NGOs etc. will continue to have a major role in promotion of organic farming and also in certification process.Existing Regulatory provision for domestic market.
Most common organic products exported from India
Compared to other products, organic tea and spices is the most common organic Products being exported. Major Product Tea Season Throughout the year States Assam, West Bengal, Uttranchal Locations Darjeeling, Guwahati, Dehradun Kerala, TamiNadu, Cochin, Coimbatore, Karnataka Idduki, Coorg Kerala, TamilNadu, Coimbatore,Coorg, Karnataka Wayanadu,Peeremade Punjab, Haryana, Amritsar, Jalandhar, Assam,Maharashtra, Tamil Darrang, Ratnagiri, Nadu Kanchipuram, Thiruvallur Punjab, Haryana, Uttar Ambala, Patiala, Pradesh Bhatinda, Faridkot All States Various location All States Various location Maharashtra, Gujarat Akola, Amravati, Madhya Pradesh, Amreli, Kheda, Indore
Spices Coffee Rice
Throughout the year Throughout the year Kharif & Rabi
Wheat Vegetables Fruits Cotton
Kharif & Rabi Throughout the year Throughout the year Kharif
Growth in the domestic market for organic products
The major organic products for which a growing demand is anticipated would be tea, spices and bananas.
Most organic food in India is exported
Over the past decade the production of organic food in India has grown rapidly to meet demand. Globally, an awareness of the health benefits of organically produced food, and knowledge of the terrible damage done to the environment by conventional, intensive farming methods, has created a huge demand for organic produce. In 2005, $26 billion was spent around the world on organic foods and that figure has been rising ever since. By the year 2020, it is estimated that the organic food market will be at least a $102 billion industry. The production of organic food in India seems set to benefit from this explosion of demand. The large amount of farm land available has created a substantial market for organic exports. The country has more than 77,000 hectares dedicated to certified organic farming in India and up to 70% of the 120,000 tons of organic products grown there are exported each year. Domestic consumption is on the increase In 2005, only 1% of the Indian population actually consumed the organic food produced in their own country, primarily because the products were too expensive for the average person, costing as much as 30% more than the same non-organic food. High prices were mainly due to the process of becoming a certified organic farm. This can be very costly as years must pass for intensively farmed land to convert to organic. The fact that more human labour is required in order to provide soil with the care of cultivation it needs to produce quality organic produce, also played a part. Of course, the fact that the rest of the world is willing to pay these high prices for the benefits of
organically grown merchandise also plays a role in setting the average price paid by Indian consumers – the price charged by mainstream, commercial outlets that is. However, as organic farming in India has expanded and become established, the costs have been coming down and many more Indian people are now, thankfully, able to afford them. Be inspired by this movie of Organic India members visiting an organic farm! The growth of organic farming in India If you played the inspirational video above, you will have become aware of the company, Organic India. In the mid to late 1990’s, it was the founders of this company that introduced organic farming methods to a small group of Indian farmers. These farmers, along with many others, had been watching the health of their land decline through the use of toxic, synthetic chemical pesticides, fertilizers, herbicides and fungicides. The wildlife adjacent to their farms was also suffering as natural habitats were destroyed by conventional, industrial farming techniques for obtaining more crops, more quickly.
As a result of these first steps taken by Organic India and the farmers with whom it worked, organic farming took off in India. Revenue generated by exports are bringing a better quality of life to organic farmers, their workers and families. Farming organically is bringing fantastic benefits in health to the environment and to those who consume the foods it produces. Now, there are at least 15,000 certified organic farms in India and that number is growing rapidly. There are just as many small farmers using the same organic practices to grow their foods. As the domestic demand for organic food in India continues to grow , more stores and markets are carrying both certified and uncertified foods that claim to be organic. While organic exports must be certified, there are no laws in effect as of yet to control natural foods sold domestically. A lack of knowledge among the general population and the absence of an organized system to regulate the sale of organic products create a great deal of confusion regarding the difference between natural and organic foods sold within India. However, organic markets are becoming increasingly common throughout the country and this helps community members find foods that are truly organic, being produced at the many known and trusted small local farms that do not seek certification for whatever reason. The first organic food store in India opened in 1997, before the heightened interest in domestically grown organics. Greenway still supplies the residents of Mumbai with affordable organic products from about 20 local farms that use chemical free, organic cultivation. Conscious Foods was started two years later, also supplied by small local farmers, and today there are organic grocers, organic markets, and even organic restaurants in every major city in India. The market for organic food in India has seen tremendous growth over the past decade. India is quickly becoming an organic centre for all types of crops and is making terrific progress towards supplying their own residents with the high quality and healthy benefits of organic food. How about growing your own organic produce? Our organic vegetable gardening guide shows you how to do so. You don't need a big garden and you don't even need soil. With just a few feet
of land you can grow an abundance of quality organic vegetables. Click on organic vegetable gardening to learn how.
There are many advantages of organic food here is a summary of the Top 5:
The advantages of organic food have been a hot topic for more than a decade now but it wasn't until relatively recently that these benefits were supported by more than just hearsay. Extensive research conducted over several years has proven that organic food not only tastes better than commercial foods, but is better for us and our children, as well as our animals, wildlife, and the environment as a whole.
#1) Organic Food Advantages - Nutrition
Care and maintenance of soil, and preventive farming methods like crop rotation create fruits and vegetables that contain up to 50% more vitamins, minerals, and other nutrients than intensively farmed foods. Organic foods have higher levels of many disease-fighting antioxidants and essential vitamins, including Vitamin C. Read more on the nutritional benefits of organic food.
#2) Organic Food Advantages - Reduction and prevention of some allergies and diseases
Industrial pesticides and fertilizers used in intensive farming contain synthetic, toxic chemicals, residues of which remain in the food they are involved in producing.
Organic farming uses natural, synthetic chemical-free methods that produce foods much safer for humans, as well as animals that consume them. Such chemicals are responsible for a number of common allergies and have also been linked to serious diseases like cancer and Alzheimer’s Disease. An organic diet significantly lowers these risks. Read more about the dangers of pesticides in food.
#3) Organic Food Advantages - No genetically modified ingredients
One of the major advantages of organic food is the fact that it is not genetically modified. Very little data actually exists regarding the safety of genetic modification and there are grave concerns that the negative effects are being ignored because of the huge profits these controversial production methods generate. Research has been carried out into the dangers of GM and have found plenty of cause for concern. Read more about Genetically Modified Foods.
#4) Organic Food Advantages - Healthier Environment
The advantages of organic food and farming reach far beyond our own health and well-being. Organic food is safer for the entire planet. The procedures and methods used in organic farming protect the structure and the nutrient content of the soil and preserve its worth over time. Organic farming practices also conserve valuable natural resources by requiring less water as well as less energy. Read more about Environmental Health. The organic system for meat production is safer and more humane for livestock than industrial farming methods. Instead of spending their lives in dirty, cramped cages, animals raised for organic food enjoy fresh air and open space. The routine use of antibiotics is prohibited as a purely preventative measure, the use of growth hormones is prohibited outright, and the animals are fed an organic diet to ensure a happy, healthy life. Slaughter is also far more humane. Read more about meat farming
#5) Organic Food Advantages - Saving our Wildlife
Organic farming is also beneficial to wildlife, unlike commercial methods of food production. The synthetic, toxic chemicals used in commercial farming can be deadly to birds and other wild animals that depend on the land for food. Traces of chemicals left behind on seeds and berries can have a tremendous impact on the health and safety of all life-forms that come into contact with them. Industrial farming also destroys natural habitats by cutting down hedgerows and trees in order to take more and more land for growing, and to make these areas easier to farm. In the process, animals, insects and even micro-organisms are displaced from their natural and rightful place in the environment, as local eco-systems are ravaged. Read more about Wildlife and Farming.
The advantages of organic food ...
...are evident around the globe. If the fresher, more appealing taste isn’t enough to win you over (and that is likely the #6th advantage), the incredible health benefits of organically produced food should. Organic food is not just better for you and your family, but for the entire planet.
Why a definition of organic food became necessary
The organic food market has grown in leaps and bounds over the past few years. To protect consumers, producers, and to avoid confusion, a legal definition of organic food has been accepted in most countries. Laws to uphold and enforce the standards required to meet that definition have been put in place. Organic foods are defined as those that are produced without the use of chemicals, including pesticides and fertilizers commonly used in cultivation and drugs, such as antibiotics and hormones given to commercial livestock. Further, foods are held to be organic when the methods of production encourage environmental health and avoid environmentally damaging and destructive actions.
The History Of Organic Food
Before there was a globally accepted definition of organic food, small farms around the world were using natural, organic farming methods to grow the best crops and to protect their most valuable resource, the land they use for cultivation. Many locally owned stores and farmers’ markets have always provided a wonderful selection of fresh organic produce. By 1990, the demand for organic food was growing rapidly and soon became too great for these small suppliers to meet. As larger farms began to produce foods considered organic and the overall number of organic farms steadily increased, a need for uniform standards arose. Today, most countries have a certification procedure for organic foods to ensure that those standards are met.
What Foods are Organic?
About a decade ago, organic food was limited to fruits and vegetables. Today it’s possible to enjoy a completely organic diet without missing your favourite foods. Organic pasta and cereals are quite common. Meats and dairy products, including milk and eggs, are produced organically as well. You can even find frozen and canned organic foods, organic ice cream, cookies and cakes, and organic beer.
Definition of 'Certified Organic'
Certification for organic food producers has been made available in a number of countries and is required before a product can be marketed as organic. Foods that are certified organic have been grown, handled, and produced according to the guidelines in place and the farm has satisfied all the requirements set by the particular country they are certified through.
Products are labelled with the certifiers logo and code to confirm certification for the consumer.
Defining Organic Farming and Production
Both arable crops and livestock must meet stringent guidelines to be considered organic. Organic production is an intricate system that strives to maintain balance within nature by preventive practices that protect the environment and minimize the negative impact farming can have on natural resources. Organic crops typically begin with organic seeds and are cultivated without the use of synthetic chemical inputs. Genetic engineering, irradiation, and other questionable practices are prohibited in organic farming. During processing, additives, preservatives, and other unnatural substances are also not permitted. Livestock raised for organic production live stress-free lives in open spaces. Preventive care keeps these animals healthy, rather than routine use of antibiotics, while organic feed ensures that there are no dangers of synthetic chemical residues. Organic farming and production have seen many changes in recent years, not to mention exponential growth. Organizations have been created in several countries around the world to regulate and oversee these processes, so that shoppers can buy organic with confidence. While the regulations, standards, and certifications associated with organic foods may be new, the enthusiast's definition of organic food remains the same - a product grown naturally and that benefits us, the planet and all living things on it.
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