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Organic Perspectives

November  2001

Discussions regarding the export of US organic agricultural products and processed foods to Japan between USDA and Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) began November 5-9, 2001, in Tokyo. Three broad topics were addressed during the meetings: approaches to exporting organic products to Japan; the US enforcement program for organic products, and the US permitted materials program. The two parties agreed to continue discussions, in Tokyo, from December 5-7, 2001. For more information on this topic contact Mark Manis, FAS, International Trade Policy, 202-720-1743,

e-mail manism@fas.usda.gov or Keith Jones, AMS, National Organic Program, 202-720-3233,

e-mail keith.jones@usda.gov. 

2. France: Updated Report Available on Organic Market

In 2000, organic food sales in France were estimated at FF 7.5 billion ($1 billion) and are expected to reach FF 15 billion ($2.4 billion) by the year 2003. The overall organic planted area has increased by 160 percent since 1995. In 2000, 370,000 hectares or 1.3 percent of the total French cultivated area were planted in organics.

Faced with strong demand, the French organic livestock and poultry sectors are at record level production. Other domestic organic products enjoying strong demand are grains, oilseeds and organic proteins, cereals, dairy products, fresh and processed fruits and vegetables, baby foods, and to a lesser extent wine. French supermarket chains account for almost half of organic food sales. The remaining half is split among health food stores, direct sales, and open air organic food markets.

France is both a market for and a competitor to U.S. suppliers. French concerns about health and food safety issues are driving demand for organic food products. Current French production cannot meet the demand, especially for vegetables and milk. As a result, French imports of organic food products have risen steadily. French processors are in short supply of organic ingredients such as exotic fruits, nuts, honey, milk, and grains for animal feed.

The European Union (EU) and the French are investing in organic agriculture. In 1999, the French Ministry of Agriculture budgeted FF 96 million ($16 million) to convert farmland to organic production. This program is financed 50/50 by the EU and the French Government and was instituted to stimulate organic agricultural production with the goal of making France the leading European supplier of organic food and products by the year 2010. To read the full report on the organic farming in France, go to report FR1071.

3. Danish Organic Feed Found to Contain GMOs

Since January 1, 2001, the Danish Plant Directorate under the Ministry of Food, Agriculture and Fisheries has been quietly testing organic feed for GMOs. The results of the most recent test of organic feed was published August 1, 2001. Almost half of the samples revealed GMO content. The Danish authorities interpret the EU organic feed regulations as not allowing GMOs. Danish organic feed is required to be entirely organic. Previous regulations allowed up to 25 percent conventional feed. To emphasize the seriousness of this offense, the Danish Minister of Food, Agriculture and Fisheries fined two firms.

Organic feed sampled from eight Danish feed companies revealed traces of GMOs in 20 samples out of a total of 48, and in 7 samples, in quantities of more than1 percent. The representative for the Organic Service Center stated that it is unavoidable that GMOs would be found in organic soybeans, since they are transported in the same ships which transport conventional beans. The Minister, Ritt Bjerregaard, an organic enthusiast herself, finds it unacceptable that any GMOs would be in organic feed. She said it is proven that some feed companies are able to provide 100 percent organic feed.

As most organic feed ingredients are imported, the Minister has written to her European colleagues to encourage them to intensify their controls. The Netherlands allows up to one percent of GMO's in their organic feed and although Sweden has a zero tolerance level, they do not randomly test organic feeds for GMOs.

The Minister wants to change legislation in order to be able to publish the names of the companies, and by that force them to be more cautious and eager to secure GMO free organic feed. The feed producers, on the other hand, have stopped selling organic feed at fixed prices until a threshold is accepted.

As a follow-up to a previous sample, the Ministry is now planning another series of random samples for food containing soybeans and corn products. The survey from February to July, 2000 disclosed that one third of all products contained more than one percent GMO and none of these were labeled, as required. Ten percent of all products tested had a GMO content above 3 percent. Labeling of approved GMOs is mandatory if the GMO content is above 1 percent. The results of this new survey will be published before January 1, 2002. To obtain a copy of this report, go to report DA1016.

4. German Organic Markets Boom as a Result of BSE Crisis

The European BSE crisis gave a big push to the demand for organic foods. The general public believes that organic products provide a generally higher level of food safety. Politicians across all political spectrums pretty much support this belief. It is mainstream thinking that organic is good for consumer health and per-se good for the environment. The current German government supports a program to convert 20 percent of German production area to organic production, a challenging goal. For the consumer, a new national organic seal has recently been launched, which can be applied to both domestic and imported organic foods.

The size of the organic market is estimated at DM4.0 billion in 2001, which is about 1.6 percent of the total food market. A longer term average annual increase of ten to fifteen percent is forecast. Growth will appear mainly in fresh products such as fruits and vegetables, dairy products and meats. Since the interest in organic products is growing Europe-wide, demand for raw materials and processed goods outpace supplies. Traditional food retail chains are also investing in this market segment, which may result in the regular consumer making spontaneous organic purchases.

To read the full report on the organic market in Germany, go to report GM1029.

5. Bearing the Fruit: FAO Study Urges Countries to Develop Organic Market--With Caution

According to a new FAO report titled World Markets for Organic Fruit and Vegetables, the organic fruit and vegetable market offers significant potential for countries to increase their export earnings and diversity their agricultural base. "Strong and steady growth in the sales of organic foods have provided these products with a viable and value-added market niche," said the 312-page report, jointly published by the FAO, the International Trade Centre, and the Technical Centre for Agricultural and Rural Cooperation.

The report provides detailed information about the demand for the products in the world's largest organic markets, which are the US, Japan, and European Community countries. It analyzes the prospects for further growth in sales and lists contact information for organizations in the organic sector, references, and web pages. It also contains case studies of the organic sector in seven developing countries.

For a copy of the report, contact: Ms. Daniela Piergentili at (011-39) 06 5705 2864 or by e-mail at daniela.piergentili@fao.org. To visit the FAO web site on organic agriculture, go to http://www.fao.org/organicag.

6. USDA News

AMS Still Accepting Applications for Certifiers: In a press release, AMS announced that it will continue to accept early applications for accreditation from potential organic certifying agents until Dec. 21, 2001. The extension gives applicants two additional months to submit applications to the National Organic Program (NOP) in order to be among the first round of USDA-accredited certifying agents, to be announced next April. For more information go to the NOP web site www.ams.usda.gov/nop.

7. Upcoming Events

Bio Fach Japan, a new trade show sponsored by the Nuremberg based Bio Fach Show, will be held in Tokyo, December 12-15, 2001. The show is expected to host 110 companies and organizations, including IFOAM and OTA. Approximately 10,000 attendees are expected. For more information about the show go to: http://www.nuernbergglobalfairs.com/va/BIOFACHJapan/e/index.html. Companies planning to attend should also contact Kevin Latner, Agricultural Attaché, in Tokyo, (latner@fas.usda.gov) to discuss show participation.

International - 2001

Dec. 13-15 - Bio Fach Japan, Tokyo (see above for details)

2002

Feb. 14-17 - Bio Fach, Nuremberg, Germany, (Contact State Regional Trade Group staff bonita.oehlke@state.ma.us, perry.brown@datcp.state.wi.us, nwitele@agr.state.tx.us, or tim.larsen@ag.state.co.us)

Domestic - 2002

May 9-11 - All Things Organic, Organic Trade Association trade show and conference, Austin, TX. Contact info: Dave Gagnon at dgagnon@ota.com.

ADDITIONAL RESOURCES

FAS, Horticultural & Tropical Products Division's Organic Page http://www.fas.usda.gov/agx/organics/organics.html 

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 

Last modified: Wednesday, July 21, 2004