Compared to total Dutch
french fry production of 1.2 million metric tons per
year, organic french fry production is small--only about
3,000 MT, but increasing rapidly. The largest producer, Oerlemans
Foods, produces 2,000 MT of organic french fries, but
this comprises only 5 percent of the company’s total
french fry production. Approximately 60 percent of Oerlemans’
organic french fry production is bound for U.K.
supermarkets and 25 percent goes to supermarkets in
Germany. Organic french fries are still a rare phenomenon
in the Netherlands; only two supermarkets, Konmar
and Albert Heijn, sell them. However, recently,
three Dutch french fry producers–Aviko, Lamb
Weston/Meijer and Farm Frites–were
certified by SKAL, a Dutch certifying agency, to produce
organic french fries. At this time, these three companies
together produce less than 1,000 MT of organic french
fries, but are expected to increase production.
It is believed that the most
important factor for future development of the organic
french fry market in the Netherlands will be lowering the
price differential between conventional and organic
potatoes. Organic french fries currently cost about 2.5
times as much as other french fries, while the price for
organic potatoes is three times higher than
conventionally-grown potatoes. Imports of organic
potatoes are almost the same as total Dutch production of
organic potatoes on a volume basis.
Australian Organics Market Continues to
Expand
The Australian organic
market is reportedly growing at 25 percent per year.
Although Australia’s organic sector is currently
geared to the export market, domestic demand is edging up
in response to consumer concerns about GMOs and other
food issues. Domestic retail sales and exports are
estimated to reach about US$143 million this year. The
expansion is fueling demand for domestic standards;
currently only organic exports are certified by entities
that are accredited by the Australian Quarantine and
Inspection Service. Organic food is rapidly moving into
mainstream supermarkets due to consumer demand and
responsive retailers.
German Subsidies for Organics
By the end of 1998, there
were 9,213 organic farms in Germany which together
cultivated 416,000 hectares (1.28 million acres) or 2 ½
percent of total German agricultural land. Organic and
conventional farmers operating similar sized farms are
financially comparable, but a larger share of organic
farmers’ income is due to higher subsidy levels.
Organic farmers receive subsidies that are about US$104
per hectare (US$42 per acre) higher than those offered to
conventional farmers. Without this higher level of
support, most organic farmers would not survive since
average per-farm income would be about US$6,150 lower.
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 at 202-720-1176.)
