Organic Perspectives
September 1998

Inside This Issue:
1. Organics in Austria
2. Natural Products Expo East '98
3. USDA Opens Regional Export Outreach Office in California
4. European Organic/Natural Food Promotion Planned for Winter/Spring 1999
5. Upcoming Events

1. Organics in Austria
Organic foods constitute about 5 percent of the volume, and 2 percent ($U.S. 200 million) of the value of total food consumption in Austria. Organic prices are 10-20 percent higher than conventional products, although prices for organic meat and meat products are about 50 percent higher. Austria's two largest supermarket chains now carry 150-200 organic products, and both feature a line of their own-brand items. Billa, the larger of the two chains, stocks its shelves with organic products grown under contract by 1,400 certified organic growers. Organic products are considered prestige items and are sold in separate sections of the store instead of side-by-side with conventional products.

Imports account for about 30 percent of total organic food sales. A large share of fresh organic fruits and vegetables found in the Austrian market are grown under contract in Hungary and the Czech Republic. Other sources include Italy (citrus); New Zealand (kiwi); South America (avocados); and Israel (fruits and vegetables.) EU countries also provide a variety of organic products.

Approximately 20,000 farms (10 percent of all farms) are certified organic, and account for about 300,000 hectares (750,000 acres). Major products include grains, fruits, vegetables, poultry and livestock products. Austria's major organic export category consists of dairy products destined for Germany. Organic food processing is relatively undeveloped in Austria, although there is some domestic production of ready-to-eat meals, a line of baby food, flour and bakery products, and frozen foods.

With long vacations and high personal incomes, Austrians increasingly are traveling overseas where they sample new cuisines. This trend has resulted in an increase in ethnic restaurants in Austria. Tex-Mex is overtaking Chinese as the latest trend in eating out, creating potential opportunities for U.S. processed organic products. Other U.S. organic products that show promise in the health-conscious Austrian market include rice, nuts, fruits (particularly citrus and dried fruits); kamut (an ancient variety of wheat); and processed foods.
Source: Attache Report AU8039 of 8-25-98.

2. Natural Products Expo East '98
FAS personnel participated in Natural Products Expo East '98, the largest natural products trade show on the East Coast, held September 9-13 at the Baltimore, MD. Convention Center. Expo East is produced by New Hope Natural Media and has grown over 14 years to include more than 3,000 exhibitors displaying organic and natural food products, supplements, and personal care items. The show floor was divided into five product pavilions: Organic, Personal Care, Supplements, Vegetarian, and Eco. Attendance was estimated at approximately 18,000 retailers, industry members, and media representatives.

FAS's AgExport Services Division staffed an information booth at the trade show. On Saturday, September 12, Laura Scandurra, Agricultural Attache with the U.S. Embassy, the Netherlands, and Audrey Talley, International Marketing Specialist with FAS's Office of Food Safety and Technical Services, presented a seminar on exporting to an audience of approximately 40 people.

Ms. Scandurra gave an overview of the organic food market in Europe. Major points of the presentation: the European organic market is growing rapidly; production in Europe is increasing but demand still exceeds supply; opportunities exist for U.S. companies to export to Europe, particularly food ingredients; and, no two markets are alike. Ms. Scandurra noted the countries with the most growth potential are the United Kingdom, Germany, and France. Reasons stated for the growing demand for organic products include consumer concerns over the environment, animal welfare; health, food safety and genetically modified organisms (GMOs); distribution through supermarkets; wider assortments of products available; and improved product quality.

Ms. Talley's presentation covered U.S. involvement in determining an international definition of the term "organic" through the international Codex Alimentarias procedures. (See Organic Perspectives, July 1998, for a status report on Codex.)

3. USDA Opens Regional Export Outreach Office in California
Last week, USDA/ FAS opened a new office in Sacramento to help western exporters learn more about the growing export market. By developing active partnerships with key organizations in the region, the new office will serve as a resource center to alert industry and commercial interests about overseas opportunities and sources of private and public export assistance.

Bonnie Borris of FAS will head the new office located at 917 7^th Street, Sacramento, CA 95814; voice (916) 447-9827; fax (916) 443-2672; e-mail fascalif@windjammer.net

FAS already has export outreach offices in Des Moines, IA, and Portland, OR, and plans to open additional regional offices in Dallas and Atlanta this fall.
Source: USDA Release 0388-98.

To find out more about federal, state and local organizations in your state that provide export assistance, visit the AgExport Services Division web page.

4. European Organic/Natural Food Promotion Planned for Winter/Spring 1999
Recognizing the untapped potential for U.S. organic and natural foods in the European market, USDA is sponsoring several events next year for U.S. exporters of organic and natural products. MIATCO (Mid-America International Agri-Trade Council) and WUSATA (Western U.S. Agricultural and Trade Association), in cooperation with SUSTA (Southern U.S. Trade Association) and EUSAFEC (Eastern U.S. Food & Agriculture Export Council) are planning and organizing the following events:

• Trade Mission to the UK, the Netherlands and Germany - February 12-23, 1999
  This premier event includes a seminar for buyers, product showcase, reception and industry tour in both London and The Hague. The mission then moves to Nuremburg, Germany, for BIO FACH, the World Organic Show. Mission participants are encouraged to exhibit their products at BIO FACH using a tabletop display (no charge), or buying booth space in the U.S. Pavilion sponsored by the Organic Trade Association and supported by USDA. The cost is $150, excluding transportation, hotel, and shipping costs.

• Trade Mission to Munich and Hamburg, Germany - April 1999
  This event is for U.S. suppliers who want to target Germany, Europe's largest market and home to its most affluent customers. This event includes a seminar for buyers, product showcase, reception, and industry tour covering both Munich and Hamburg. The cost is $150, excluding transportation, hotel and shipping costs. Although U.S. suppliers are encouraged to send a representative on the trade mission, catalog representation is available.

(See Organic Perspectives, August 1998, to read about a similar program MIATCO and WUSATA conducted in Japan this past summer.)

5. Upcoming Events
1998

• Nov. 5-7 - Organic Show: III Foro Nacional sobre Agricultura Organica 1er. Premio Nacional en Agricultura Organica, Guadalajara, Mexico
• Nov. 6-9 - BIOCULTURA, Madrid, Spain (organic & diet food products)
• Nov. 16-21 - 12^th IFOAM Scientific Conference & General Assembly, Argentina
  

1999

• January - Ecological Farming Conference, Pacific Grove, CA
• Feb. 12-23 - European Organic/Natural Food Trade Mission - UK, Netherlands and Germany
• Feb. 7-11 - International Food & Drink Exhibition, London
• Feb. 18-21 - BIO FACH, the World Organic Show, Nuremburg, Germany
• Feb 22 & 23 - USDA's Agricultural Outlook Forum 99, Washington, DC
• March - BIOCULTURA, Sevilla, Spain (organic & diet food products)
• March 9-14 - Natural Products Expo West, Anaheim, CA
• April - European Organic/Natural Food Trade Mission, Germany
• Aug. 1-3 - Organic Farming Research Foundation Conference, Oakland, CA
• Oct. 16-18 - DIETEXPO '99, Paris, France (organic, health & diet trade show)
• Oct. 20-24 - Natural Products Expo East, Baltimore, MD

For a more complete listing of food and trade shows including those for conventional products, visit the FAS Trade Show site.

This newsletter was compiled by HTP's Organics Staff:
Janise Zygmont - Analysis, zygmont@fas.usda.gov Tel: (202) 720-1176 Fax: (202) 720-3799
Kelly Strzelecki - Marketing, strzelecki@fas.usda.gov Tel: (202) 690-1341 Fax: (202) 690-3346)

Last modified: Tuesday, May 08, 2001