1 experiences with organic agriculture dr. sophia twarog, unctad standards and trade workshop 16 may...
TRANSCRIPT
![Page 1: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/1.jpg)
1
Experiences with Organic Agriculture
Dr. Sophia Twarog, UNCTAD
Standards and Trade Workshop
16 May 2002
![Page 2: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/2.jpg)
2
Opportunities
• Demand growing 10-20% in most major markets
• US$ 17.5 billion market in 2000• Economic,social, health and
environmental benefits for DCS• Possible DC comparative advantage• Over 100 DCs produce certified
organic products
![Page 3: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/3.jpg)
3
Production Constraints
• Limited governmental support
• Lack of technical know-how
• Lack of organic inputs
• Little R&D on plant varieties and prod’n methods best suited to DCs
• Conversion period- smallholders have limited financial reserves
![Page 4: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/4.jpg)
4
Export Constraints
• High certification costs
• Lack of market information and marketing strategies
• Limited physical transport and storage infrastructure
• Complex import procedures
• Tariff and non-tariff protection
![Page 5: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/5.jpg)
5
Certification
• Most DC exporters depend on certification by international certification bodies
• National certification infrastructure limited in most DCs
• Unaffordable for smallholders• Smallholder group certification SGC
not recognized in importing C reg’s
![Page 6: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/6.jpg)
6
Standards and import regulations
• Multitude of private standards and government regulations
• No well-functioning mechanisms for mutual recognition
• Multiple certification/accreditation is costly
• Obtaining import permits-cumbersome and time consuming
![Page 7: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/7.jpg)
7
Market information and channels
• Limited market information available at producer level
• Sometimes DC certified organic products get sold as conventional
![Page 8: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/8.jpg)
8
Other market risks
• Organic market is fairly small (LT 2% of total food market in most dev’d C’s)• Dev’d C efforts to promote OA
production, including subsidies• Eastward enlargement of EU could
increase OA supply• Increasing consumer preference for
locally supplied food
![Page 9: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/9.jpg)
9
EU Regulation 2092/91
• Para 1: “third country list” (6 C’s)• Para 6: “importer derogation”– Importer submits documentation that
products are produced and certified according to rules equivalent to EU’s
– Permit takes several weeks or months– Over 80% of EU OA imports, from over
85 countries– Due to expire 31 December 2005
![Page 10: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/10.jpg)
10
Other EU Regulations
• No. 1788/2001: aims to harmonize import procedures throughout EU– from 1 July 2002– requires an original certificate of
inspection for each consignment– Is expected to increase delays
• Since July 1999, certification bodies must conform to EN 45011 or ISO 65
![Page 11: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/11.jpg)
11
USA Regulations
• Standards adopted December 2000
• Certifiers operating in foreign countries may apply for USDA accreditation.– In first round (April 2002), 37 foreign
certifiers applied, incl. 12 from 10 DCs.– 4 were accepted, including 1 from Peru– The other applications are pending.
![Page 12: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/12.jpg)
12
USA Regulations, cont’d
Otherwise, certifiers seek recognition– USDA determines, upon the request of a
foreign gov’t, that its authorities are able to assess and accredit certifying agents as meeting the requirements of the National Organic Programme (NOP),
– Or as meeting requirements equivalent to the NOP under an equivalency agreement
![Page 13: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/13.jpg)
13
Costa Rica
• 1.9% of land under permanent cultivation is under organic production or in conversion
• Small producers (94% of certified farms are LT 5 hectares)
• Exports to EU and USA
• Main exports: coffee & bananas
![Page 14: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/14.jpg)
14
Costa Rica
• Institutional support– National Programme for OA (est. 1995)– Dept. on Accreditation and Registration
of OA in Ministry of Agriculture, deals with issues related to inspection
– National standards– Procedures for accreditation of
certifiers; regulations for inspection
![Page 15: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/15.jpg)
15
Costa Rica
• Good certification and accreditation infrastructure– 3 authorized inspection agencies
(2 national, 1 German)– These have arrangements with import
market-based certifiers
• Expected to be soon included in the EU “third country list”
![Page 16: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/16.jpg)
16
India
• National Programme for Organic Production
• National Standards—March 2000
• Tea, Coffee, Spices Boards and APEDA—accreditation agencies for products under their responsibility
• Applied for EU “third country list”
![Page 17: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/17.jpg)
17
India
• Key role of NGOs and farmer organizations
• Commodity-specific boards providing some support to OA– Spices Board meets 50% of certif. Costs
• Price premiums—difficult to secure– Ex: organic pepper
![Page 18: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/18.jpg)
18
Uganda
• Small scale producers
• Exports include cotton, sesame, coffee, fruits
• No national standard
• No clear government policy or support
• No locally-based certification body
![Page 19: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/19.jpg)
19
Recommendations
• Raising awareness and promoting policy dialogues
• Research and development• Training (farmers, agricultural
extension workers)• Development of national legislation
and standards (for C’s with larger OA sector)
![Page 20: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/20.jpg)
20
Recommendations, cont’d
• Develop domestic markets
• Improve access to market information
• Develop marketing strategies
• Appropriate government support
![Page 21: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/21.jpg)
21
Recommendations, cont’d
• Reducing certification costs– Assistance in meeting certification
costs– Local certification/inspection body– Inspections done by local staff charging
local fees– Provisions for smallholder group
certification based on Internal Control Systems (ICS)
![Page 22: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/22.jpg)
22
Recommendations, cont’d
• Reduce expensive multiple certification through harmonization and mutual recognition of OA regulations, standards and certification– Among governments– Among accrediting agencies– Among private/public certifying bodies
![Page 23: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/23.jpg)
23
Recommendations, cont’d
Facilitating imports of OA products• Regulations reflecting the needs of
DCs, e.g. provisions for SGC• Transparent and understandable
procedures• Mutual recognition of OA regulations• Providing information (standards,
market opportunities, etc.)
![Page 24: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/24.jpg)
24
Recommendations, cont’d
Bilateral and multilateral aid agencies can provide/finance technical assistance to:– Promote OA production– Obtain certification– Identify business partners
![Page 25: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/25.jpg)
25
Trade rules issues
• Implications of developed country subsidies to OA production
• Need for transparent and non-discriminatory labelling
• Possibilities to grant special & differential treatment, incl. trade preferences, to OA products fr. DCs
![Page 26: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/26.jpg)
26
Trade rules issues,cont’d
• Post-Doha: could the mandated negotiations aimed at reducing or eliminating tariff and non-tariff barriers to environmental goods and services benefit DC exports of OA products?
![Page 27: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/27.jpg)
27
Possible follow-up activities
By UNCTAD and UNEP/UNCTAD CBTF, working closely with IFOAM, FAO, ITC and other relevant institutions
![Page 28: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/28.jpg)
28
Possible follow-up activities
Assisting DCs in designing and implementing appropriate gov’t support for OA production & export, through
• Studies, including identifying promising products, ways to reduce certification costs, overcoming constraints
• Policy dialogues, incl. to create awareness of benefits of OA and promoting multi-stakeholder committees
![Page 29: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/29.jpg)
29
Possible follow-up activities
Exploring mechanisms for recognition of organic guarantee systems of DCs
• Promoting mutual recognition• Examining ways to promote the
practical application of the concept of equivalence, including through Task Force involving Governments, IFOAM, FAO, UNCTAD and others.
![Page 30: 1 Experiences with Organic Agriculture Dr. Sophia Twarog, UNCTAD Standards and Trade Workshop 16 May 2002](https://reader036.vdocuments.us/reader036/viewer/2022062801/56649e295503460f94b16bf2/html5/thumbnails/30.jpg)
30
Possible follow-up activities
• Promoting transparent and simple rules governing OA imports
• Exploring trade preferences for OA products from DCs
• Examining market strategies (ITC) incl. disseminating market research to DCs, explore e-commerce opportunities, promoting partnerships w/ buyers, donors