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ORGANIC PERSPECTIVES
March 1999
Inside This Issue:
1. FAS/HTP Expands the Organics Web Site
FAS's Horticultural & Tropical Products Division organics web site has been expanded and given a new
look. In addition to the monthly Organic Perspectives newsletter, and links to
articles published by FAS, the new home page features a direct link to attache reports from around
the globe that relate to organics. Also included are links to other agencies and programs,
and to USDA press releases relating to the National Organic Program. Comments on the new
home page are welcome.
2. U.S. Companies Participate in . . .
First Organic/Natural Foods
Promotion in Europe - More than 45 U.S. companies participated in the
European Organic/Natural Food Promotion held February 12-21, 1999, in the Netherlands, the
UK, and Germany. A wide variety of organic and natural products from around the United
States were featured including grains, beans, fresh produce, salad dressings, snack foods,
chocolate, dairy products, beverages and cotton products.
The first in a series of events planned for Europe, the promotion included seminars designed to provide an overview of the U.S. organic market, and trends in the U.S. organic ingredient and processed food sectors. More than 100 buyers and members of the press in the UK heard the message, as did 40 of their counterparts in the Netherlands, and 120 in Germany. The mission also participated in the BioFach organic trade show, the largest of its kind in the world (see next item).
In addition to seminars for buyers, the promotion included industry tours and briefings for U.S. companies which gave participants valuable insights into individual markets and the opportunity to speak directly with a variety of industry representatives. Preliminary estimates indicate that U.S. participants garnered projected total sales of $4.6 million as a result of this promotion.
Organizers chose to begin their European promotions in these three countries because of
certain key characteristics of the markets. The UK is heavily dependent on imports to
supply its $445 million organics market which continues to grow rapidly. Despite efforts
to encourage domestic production, currently about 70% of the organic products are
imported. The Netherlands, although itself a small market, serves as Europe's main
re-exporter. Nearly a third of all EU organic food import authorizations are issued here,
so products entering via this channel have access to other EU markets. Finally, the German
retail market for organic food and beverages is the largest in Europe at about $1.5-$2
billion annually, and growing.
Source: Kirsten Brooks, International Trade Representative, Minnesota Trade Office.
NOTE to U.S. Companies: Recruitment will begin soon for a similar trade mission to Germany scheduled for September 1999.
BioFach, Germany's Organic Trade Show - BioFach is perhaps the most important event for the organic industry in Europe. Attendance at this year's event, held February 18-21 in Nuremberg, attracted 21,750 trade visitors and 1,300 exhibitors. Three exhibition halls were dedicated to organic food and agricultural products, and another featured non-food products.
For the first time, U.S. exhibitors were organized under a U.S. Pavilion cosponsored by the Organic Trade Association (OTA) and the Agricultural Trade Office (ATO) in Hamburg. Fifty-five companies participated--15 had individual booths in the pavilion while the others exhibited as part of a trade mission and product showcase organized by the State Regional Trade Groups (see previous item). A seminar program, running parallel to the trade show, included a press conference and presentations by OTA director Katherine DiMatteo on the U.S. organic market, and Dr. Enrique Figueroa, Administrator of the Agricultural Marketing Service, on the status of the U.S. national organic program. Several U.S. exhibitors gave overviews of the U.S. organic dairy, grain, and ingredient sectors.
The large, high-profile U.S. presence generated a great deal of interest in U.S.
organic products, and one U.S. exhibitor, Badger Mountain Vineyards, received an award at
the first organic wine competition held at the show. Building on these successes, ATO
Hamburg and OTA will plan for the next BioFach to be held February 17-20, 2000.
Source: ATOHamburg.
3. Highlights from Natural Products Expo West Trade Show
According to the Natural Foods Merchandiser, more than 30,000 people--about a
third of them retailers--attended Natural Products Expo West in Anaheim,
California, March 10-14. Preliminary estimates indicate that more than 2,200 exhibitors
(up 15% from last year), and 31,000 visitors (up 9% from 1998) attended.
FAS Attache Participates on Exporting Panel - Laura Scandurra, Attache from The Hague, presented "An Overview of the Organic food Market in Europe" to about 70 people attending a session called "Understanding the International Marketplace." Attendees also received information about FAS research on overseas markets and FAS services designed to facilitate U.S. exports at a booth staffed by Mark Smith of AgExport Services.
FAS Brings Japanese Mission to the Show - Terrence Barber, Senior Director of the Agricultural Trade Office (ATO) in Japan, led a group of Japanese representatives from the press and the retail and food service sectors to the show. The Japanese trade mission met with U.S. organic and natural food exhibitors interested in exporting to Japan, and attended a special marketing seminar cosponsored by ATO Japan, the show organizer, and New Hope Natural Media. After the show, part of the group visited organic/natural livestock farms and ranches in California, while others headed to Minnesota and Iowa to meet with Midwest food exporters.
Increased Presence of Mainstream Companies - Reflecting the
growing interest in organics by major manufacturers, General Mills introduced Sunrise,
a certified organic wheat and corn cereal, at the show. According to General Mills, Sunrise
was developed for consumers who want to eat organic foods, but are concerned about limited
availability, high price and taste. Sunrise will sell at an average retail price
of $3.39 per 12.5 ounce box and will be available at stores nationwide.
Sources: ATO Japan, Mark Smith, FAS AgExport Services, and General Mills press
release.
4. Danish Government Support for Organics to Continue
In early February, Denmark's Minister of Food, Agriculture and Fisheries
announced Action Plan II that will continue support for the Danish organic sector into the
21st century. Proposed funding of DKK 2.2 billion (US$338 million) for
1999-2003, will cover both production and marketing.
The action plan calls for 10% of Danish farmers to be using organic production methods by 2003, and will result in a tripling of Danish organic production over five years. In 1998, there were approximately 2,500 farms using or converting to organic farming methods, a twofold increase since 1996, and about 99,000 hectares (245,000 acres) or 3.7% of Danish agricultural area devoted to organic production. For 1999, as farms and acreage in transition go fully organic, the numbers are expected to climb to 3,300 farms and 150,000 hectares (371,000 acres).
Denmark's main organic products are dairy, meat, eggs, vegetables and grains. Approximately 20% of the milk produced in Denmark is organic. The average organic farm size is 38.5 hectares (95 acres), which is roughly equivalent to the size of a conventional Danish farm.
The action plan also will focus on strengthening exports to neighboring countries,
especially the UK, Germany, Sweden and the Netherlands; improving the quality of organic
products; and centralizing distribution especially for the hotel and restaurant sector.
The plan calls for establishment of organic distribution centers around the country to
facilitate the sale and delivery of a wide range of organic food products in commercial
quantities. The new support program is in addition to an already-established government
support scheme which covers half of the cost of research and development associated with
new product development. Projects such as market studies and new product development which
will be funded under the $30 million action plan are intended to eventually be
self-financing.
Source: Attache reports DA9002
and DA9003.
Also, see attache report DA8012
for additional background.
5. Five-Step Guide to the Dutch Organic Food Market
A new report (NL9017)
for U.S. exporters outlines the steps necessary to export organic products to the Dutch
market. The five-step guide emphasizes the importance of working with an experienced
importer who knows the ins and outs of successfully bringing an organic product to the
market. Documentation required along each step of the way also is discussed.
6. Organic Farming Increased in France in 1998
France ranks fourth among EU countries in acreage devoted to organic agriculture.
In 1998, 220,000 hectares (543,000 acres) were already under, or transitioning to, organic
production, up 32 percent from the previous year. The number of organic farms grew 28
percent during the period from 4,780 to 6,130 farms. Organic livestock numbers also rose
at a very fast rate.
Despite the growth in production, output is still inadequate to meet growing consumer demand. Shortfalls are being experienced in grains, milk, and high-protein animal feed which must be met through imports. Currently, France imports 40 percent of its organic food from non-EU countries.
Predictions are that by the year 2000, the organic share of total household food
consumption will reach 3 percent. However, continuing expansion of domestic production is
threatened by high prices, consumer expectations that organic food should match
conventional food qualities, confusion about and lack of recognition of organic logos; and
reluctance of some French farmers to go organic because of uncertainty over future demand
and the status of EU regulations for the livestock sector.
Source: Attache report FR9022.
7. Growers' Group to Work with USDA Seed Banks
A cooperative project of researchers, organic growers, and others could help
replenish the nation's seed banks, and create market opportunities for new public and
heirloom crop varieties according to USDA's Agricultural Research Service (ARS). ARS,
which maintains the National Plant Germplasm System with its 27 repositories holding over
400,000 specimens of seeds, cuttings and other tissue, is cooperating with the Farmer
Cooperative Genome Project to test a new way for organic growers, farmer cooperatives and
small seed companies to tap into this "storehouse of genetic diversity." Plants
with potential include heirloom and wild relatives of a variety of vegetables, fruits and
herbs including tomatoes, lettuce, beans, berries and black cumin, to name a few. More
than 200 small family farmers, organic growers, seed producers, breeders and others will
participate in the project.
Source: ARS press release.
8. Upcoming FAS Promotional Activities/Events
FAS activities listed below represent opportunities for U.S. organic and/or
natural foods exporters to showcase their products in overseas markets. The events listed
may be entirely devoted to organic foods or products, or may be part of a larger activity.
| Date | Event | Location | For More Information |
| April 21-27 1999 |
Takashimaya Dept. Store Promotion | Osaka, Japan | ATO Report JA9704 |
| October 5-8 1999 |
Hoteres & Foodex Kansai '99 | Osaka, Japan | ATO Report JA9704 |
9. Upcoming Events
International - 1999
International - 2000
Domestic - 1999
Domestic - 2000
* Indicates a USDA-sponsored show. For more information and a 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) |
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