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| Horticultural & Tropical Products Division | Return to the H&TP Home Page |
Organic Perspectives
May 2001
1. Japan Trade Update
USDA has been negotiating with Japan’s Ministry of
Agriculture Forest and Fishery (MAFF) on an interim agreement for
much of the past 12 months, in an effort to ensure that U.S.
exports of organic products to Japan are not interrupted due to
Japan’s new requirements on organic products standards and
third party certification (by a Japanese certifier)–which
went into effect on April 1, 2001. The agreement will serve as an
interim measure in lieu of an equivalency agreement until one is
reached. Once finalized, the terms of the agreement will allow
the use of ISO-65 certification for both raw and processed U.S.
ingredients. There will be some additional certification
requirements imposed at the plant and farm level, with U.S.
certifiers certifying that they meet the JAS standards.
Negotiators are optimistic that an agreement will be signed soon.
2. Updated UK Organic Market Statistics
The following is a summary
of key points from a recent report published by the United
Kingdom's (UK's) leading certifying agency, the Soil Association.
This organization is key in collating UK organic market
statistics:
3. BSE Found on Organic Farm in France
French media reported that in Jura, in eastern France, one cow on a certified organic farm was infected with bovine spongiform encephalopathy (BSE). The 8-year-old milk cow was converted to organic feed a year and a half ago. In its first years, the animal was fed with meat and bone meals, which are strictly forbidden in organic agriculture. The certifying agency ECOCERT had certified the breeding farm (110 head) organic according to EU regulations in place since August 2000. Converting a breeding operation from traditional agriculture to organic requires 24 months for soils and 6 months for milk cows. Beef animals older than 16 months must be raised on organic feeds for at least 3/4 of their life. Animals 16 months or younger must have been fed organic feeds for at least 12 months. In comparison, U.S. standards state that any animal sold for meat must be raised organically from the last third of gestation. Even dairy farmers in the United States who think they will sell their old cows for meat, must start off with organic cows.
About 3,500 breeders in France are certified organic, and their number is increasing. In 1999, 27,000 milk cows (an increase of 37 percent compared to 1998) and 23,000 beef animals (up 45 percent) were certified organic.
4. BSE Crisis Boosts Consumption of Organic Dairy Products in Germany
German cheese producers report that the demand for cheeses increased by 16 percent in January 2001 compared to January 2000. The cheese industry calls this a BSE effect. Consumers replaced the traditional sliced sausage with cheese. Especially trendy are organic dairy products with guaranteed origin labeling. The organic dairy processors are relatively lucky, in that prior to the BSE crisis, as much as 50 percent of the organically produced milk was being marketed through traditional channels without a profitable mark-up representing its organic origin. Now, in the face of higher demand, more of this organically-produced milk is actually being processed into organic cheese, yogurt and other organic dairy products.
However, since organic dairy products are not differentiated in quality or appearance from conventional dairy products, the German dairy industry is pessimistic that consumers will be willing to continue to pay higher prices for organic products after the BSE shock fades. In 2000, German farmers delivered 27.21 million tons of milk for processing to dairies, an increase of 0.9 percent over 1999, of which less than 1 percent was organic.
5. French Organic Imports From Third Countries Booming
France is the leading European producer of conventional agriculture and the largest exporter, but it is not able to meet its demand for organic products, according to FAS/Paris. Authorization to import organic products from third countries (those outside the EU, including Israel, Switzerland, Hungary, Argentina and Australia) increased from 1,370 tons in 1993 to 21,519 tons in 1999. More than 110,000 tons of organic oilseeds and grains have been imported in 1998 and 1999, as well as 50 million liters of milk from Germany and fresh fruits and vegetables from Spain and Italy. France is also short in organic bovine, poultry, sheep, eggs and butter. In 1985, France was the leading producer of organic commodities in the EU, but is now reported to have fallen behind Italy, Germany, Austria and Sweden.
6. Japan’s Organic Vegetable Imports From China Increasing
Nichirei, a large frozen-food importer in Japan, is planning to start selling frozen organic vegetables from China in supermarkets nationwide this spring, according to the Japan Economic Newspaper. Nichirei was able to reduce prices by contracting with local Chinese vegetable farmers and processing the final product in China. Similarly, last fall, leading supermarket retailer JUSCO began selling frozen spinach, green asparagus, onions, and broccoli imported from China as part of their "Top Value Green Eye" private brand. Both companies’ products will be certified under Japan’s new JAS organic standard, which took effect April 1.
7. In France, Organic Wines Now Available at Largest Supermarket Chain
After organic meat, fish and fruits and vegetables, Carrefour, Frances’ largest supermarket, and number two in the world after Wal-Mart, is now selling organic wines. During the International Agricultural Show (SIAL), Carrefour signed a partnership with French organic wine growers. AOC organic Cotes de Provence will be sold at $3, Anjou at $4 and table wines at $2.50. That wines are getting such unprecedented exposure shows two things: even the most sacred of products can be sold in a relatively new format, and anything organic is thought to attract consumer interest, given the recent food scares.
As a general rule, organic food products cost 20-25% more than traditional foods in France. However, according to the French Association of Organic Wines from Languedoc-Roussillon, if priced too high an organic wine will not sell. It needs to compete with traditional wines. The objective of French organic wine producers appears to be to produce quality wines and not to make a significant profit in order to compete with conventional products.
8. ERS Labeling Study Includes Organic Labeling
In a study published in December 2000 entitled "Economics of Food Labeling," USDA’s Economic Research Service (ERS) presents three case studies in which the government intervened in labeling decisions (nutrition content, dolphin-safe tuna, and organic) and two examples in which government intervention has been proposed (country-of-origin and biotechnology). They examine how benefit-cost calculations influence the information supplied by private firms, the information required by governments, and the role of third-party entities in standardizing and certifying the veracity of the information. To order a copy of the study, call 1-800-999-6779 and ask for Economics of Food Labeling , AER-793. There is a small fee for the study. For free copies--while they last--contact Cathy Greene, ERS, Tel.: (202) 694-5541; E-mail: cgreene@ers.usda.gov
9. FAO Web Site on Organic Agriculture
The Food and Agriculture Organization (FAO) of the United Nations (UN) has begun the construction of an organic agriculture web site at www.fao.org/organicag . The aim of the website is to offer information on organic agriculture available at FAO. It also functions as a "road map" whereby users are directed to other relevant websites. Statistics on production and trade are not yet available, however many FAO documents on organic production and marketing are included. Check it out.
10. USDA News
AMS will hold an accreditation workshop. On May 16, an accreditation workshop will be held in conjunction with the Organic Trade Association’s (OTA's) Conference and Trade Show at the Austin Convention Center in Austin, Texas. For information contact Beth Hayden, Tel.: 202-720-8405.
11. Opportunities for U.S. Exporters
ORGANEX: FAS/London is hoping to recruit at least three U.S. companies to join them in a small U.S. pavilion at the Organex show at the Olympia Exhibition Halls, London, England, Oct. 9-10, 2001. Organex, is the UK's only trade show dedicated solely to organic food and drink products. The show has been growing year-on- year with the UK organic market and the show organizers specifically aim to attract major retail chain buyers as well as the smaller independent stores.
Further information can be obtained from: Amanda Newell, Tarsus Organex Ltd. Tel.: 011 44 1494 730677; Fax: 011 44 1494 730688; E-mail: amanda@organex.net Web site: www.organex.net
Organic Promotion and Trade Mission in Taiwan: The Montana Department of Agriculture, in cooperation with the Western United States Agricultural Trade Association (WUSATA), is sponsoring a natural products and organic promotion and trade mission in Taiwan in June 2001. The intent of this trade mission is to introduce prospective buyers to quality natural and organic products, assist retail and wholesale outlets in promoting natural and organic products, and educate bakery buyers on utilizing Western natural and organic products in making their products. Interested parties should contact Sara Bowles, Tel.: 406-444-2402; E-mail: sbowles@state.mt.us
12. Upcoming Events
International - 2001
Domestic - 2001
* Indicates a USDA-endorsed show.
ADDITIONAL RESOURCES
FAS's Trade Shows and Other Marketing Events site - a complete list of international food and trade shows including those for conventional products: http://www.fas.usda.gov/scripts/agexport/EventQuery.asp
National Organic Program web site - www.ams.usda.gov/nop
Organic Trade Association - comprehensive listing of organics/sustainable agriculture events: www.ota.com
National Organic Initiative - international promotional opportunities for U.S. growers/exporters of organic/natural food sponsored by state regional trade groups: http://www.susta.org/generic/organic.stm
| Compiled by Kelly Strzelecki, HTP/Organics, Tel.: (202) 690-1341; Fax: (202) 720-3799; E-mail: strzelecki@fas.usda.gov |
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