organic agriculture: a trade and sustainable development opportunity for developing countries sophia...
TRANSCRIPT
Organic Agriculture: A Trade and Sustainable Development Opportunity for Developing
Countries
Sophia Twarog, Ph.D.
What is organic agriculture?
Certified organic production: over 30 million hectares, 138+ countries
OA as a national sustainable development opportunity
• Economic benefits
• Food security benefits
• Environmental benefits
• Social & cultural benefits
Economic benefits
Net income = (price x quantity) – total costs
Generally, organic farmers earn more.
Food security benefits
• Higher incomes
• Higher yields
• Diversified production
• Improved nutrition
Environmental Benefits
• Less pollution• Improved soil, incl. increased water
retention and less soil erosion
• Enhanced biodiversity
• No genetic contamination
Environmental Benefits, cont’d
• Mitigated climate change
• Reduced energy consumption
• Landscape services
Social & cultural benefits
• Benefits for smallholders• Women’s empowerment• Builds on traditional knowledge• Reduced rural-urban migration• Improved health & safety• Community revitalization
OA as an export opportunity—rapid global market growth
Growth of the global market for organic food and drink 2002-2006 (Billion US Dollars)
23.1 25.528.7
33.238.6
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
2002 2003 2004 2005 2006
Bill
ion U
S D
olla
rs
Source Source: The Global Market for Organic Food & Drink, Organic Monitor 2007
OA as an export opportunity
• Global sales growth rates at least double those of conventional food products
• Acute supply shortages since 2005
• Developing country exports rising fast
• Price premiums
Regional Distribution of Organic Food Sales 2006
Region Billion USD %Western Europe 20.0 52North America17.3 45Asia 0.78 2Oceania/Australia 0.34 1
TOTAL 38.6Source: Sahota (2008)
Regional Distribution of Organic Food Sales 2006
Distribution of Global Revenues by Region 2006
Europe52%
North America45%
Asia/Pacific2%
Oceania1%
Source: Sahota 2008
Regional distribution of certified organic production 2006
Export opportunities include
• Fresh and processed tropical products
• Counter-seasonal fresh produce
• Other products with demand-supply gaps
• Ingredients for food processing industry
Production challenges
• Little or no government support (policies, ag extension, R&D)
• Conversion period
• Knowledge intensive
• Sometimes lack of organic inputs
• Lack of secure land tenure
Export challenges
OA exports must:• Meet SPS requirements in import mkt
(same as for convent’l products)• Meet requirements of OA regulations
& be certified by approved cert. body• Meet additional requirements of
private standards (sometimes)
Export challenges
• Agric. Subsidies in import markets
• Need for market information
• Consumer preferences for local food
• Lack of harmonization, equivalence & mutual recognition
Recommendations to developing country governments
• Assess national organic sector & policies
• OA action plan• Consider supporting OA R&D,
extension services, certification costs, development of domestic market, exports, harmonization
Other factors contributing to success
• Community organization
• Group certification
Recommendations at international level
• Pursue harmonization and equivalence
• Take into acct special conditions in developing countries
• Provide market info
• Support TC/CB in OA
UNCTAD initiatives
• Publications
• UNCTAD-FAO-IFOAM International Task Force on Harmonization and Equivalence on Organic Agriculture (ITF)
• UNEP-UNCTAD Capacity Building Task Force on Trade, Environment and Development (CBTF)
Thank you!