Organic Updates

 

Germany’s Organic Sector

 

Germany is one of the world’s major producers and consumers of organic food products. By the end of 1998, 8,277 farms were registered as organic, and 417,000 hectares (1,030,000 acres) or 2.5 percent of Germany’s agricultural land was under organic production. About half of the organically-farmed land was devoted to field crops and the rest to grass and pasture. Germany produces a wide variety of organic commodities including milk, grains (wheat, rye and oats), potatoes and other vegetables, beef, oilseeds, pulses, fruit and wine.

 

Organic food sales in Germany were estimated at $2 billion in 1998, or approximately 2 percent of the total food market. Opinion polls indicate that the average consumer is becoming more interested in organic food, but that demand is dampened somewhat by confusing labels, high prices, limited availability in mainstream markets compared to other western European countries, and limited variety.

 

Italy and Spain are Germany’s leading foreign suppliers of organic products, and the United States is believed to be the largest non-EU supplier. Increasingly, organic commodities and products from China, Latin America, and Central European countries such as Poland and Hungary are finding their way to Germany.

 

Best prospects for U.S. exporters of organic products include uniquely American items which are already familiar to consumers of non-organic food, as well as dried fruit, nuts, wine, rice, sports drinks and supplements.

 

News from the United Kingdom

 

Following are tidbits on organics in the United Kingdom gleaned from media reports:

 

According to Datamonitor, sales of organic food in Western Europe have grown from $3.1 billion in 1995, to an estimated $5.3 billion in 1999. The U.K. organic market more than doubled in size from $228 million in 1995 to $544.3 million in 1998. Imports continue to account for about 70 percent of organic food sold.

 

According to Mintel, a U.K. market research firm, limited availability and high prices are dampening growth in organic food consumption. Mintel reports that 70 percent of U.K. consumers want to buy organics, but many are put off by the cost. Fresh produce, meat and dairy are the most dynamic sectors, and fastest growing categories are baby food, organic bread, tea and coffee. [Note: Mintel also reports that the United Kingdom will spend over £2.7 billion ($4.3 billion) this year on American-style fast food including burgers, pizza and chicken--more than France, Italy and Spain, combined.]

 

The U.K. Ministry of Agriculture, Fisheries, and Food has reopened the Organic Farming Scheme, which supports U.K. farmers as they convert to organic production methods. The scheme exhausted its £16 million ($25.8 million) funds in September after just six months. Another £10 million ($16.1 million) was allocated in November 1999.

 

 

Members of USDA’s Advisory Committee on Small Farms Named

 

On December 6, Secretary Glickman named 19 individuals to serve on USDA’s Advisory Committee on Small Farms. In announcing the appointments, Secretary Glickman stated that he "will rely on this committee to provide insight and input on actions to strengthen USDA programs that contribute to the viability and growth of small farms and ranches." One member of the committee, George L. Siemon, is a farmer and CEO of Organic Valley Cooperative, based in Wisconsin. According to the Organic Valley web site, the farmer-owned and operated marketing cooperative represents more than 190 farm families in ten states. The co-op is the largest producer of certified organic dairy products in the United States, and distributes them, as well as organic eggs, meats and vegetables, nationally.

 

For more news on organics, see HTP’s monthly newsletter "Organic Perspectives," available at the HTP home page: www.fas.usda.gov/htp/organics/organics.html The newsletter contains reports on organics from around the world gleaned from attache reports, trips made by HTP’s organics staff, and other sources. The newsletter also covers items of interest about the U.S. national organic program and the domestic organic industry. A list of upcoming conferences, trade shows and other events is included in every issue.

 

(For further information, contact Janise Zygmont (analysis) at 202-720-1176 or Kelly Strzelecki (marketing) at 202-690-1341.)

 

 

Last modified: Thursday, April 06, 2000