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An Overview and Facts on Worldwide Organic Agriculture Organic Trade a Growing Reality

Bernward Geier,
Director of International Relations, IFOAM

Nobody can deny that organic trade is a growing reality all over the world. Growth is certainly something very natural and the growth rates of the organic sector are showing that organic products come out of the "niche" and enter mainstream markets.

A condition for the further development of the organic food sector is a fast increase of conversion to organic on the farm level. It is impressive to have about 15.000 organic farmers in Germany. In Switzerland the "organic" share has reached the range of 10 %, with the largest canton Graubünden, having around 50% Austria with more than 20.000 organic farmers, totals also around 10 % organic farming. Sweden and Finland show similar proportions. In 1996 Italy had a level of about 60.000 organic farms.

Similarly impressive developments can be seen in countries like Uganda, where 15.000 farmers choose to cultivate organic coffee and/or cotton or Mexico where ten thousands of small farmers (campesinos) produce organic coffee, as well as staple food the organic way for the local market.

Today the reality of the organic trade sector also comes up with impressive data. The organic market in the USA is in the range of ten billion Dollars and foreseen to double in the next two or three years. In Germany, we can see how the whole baby food sector is on its way to becoming more or less exclusively organic. Also the fact that more than 30% of the daily bread in and around Munich is baked with certified organic gives a clear indicator, that we conquer mainstream markets. Surprising is the fact that even in a country like Egypt, organic produce becomes mainstream. The biodynamic SEKEM initiative, employing about 1.000 people delivers its products to 20.000 pharmacies and shops in Egypt. Rapidly growing consumer demands are also reported from countries like Argentina, Japan, Brazil, Poland and Australia. Especially encouraging is the fact that local markets for organic food are also getting increasingly established in so-called "developing" countries. Of growing importance in this context will be the close cooperation between organic agriculture and the fair trade movement.

It cannot be denied that there are some marketing problems in certain sectors, but the above mentioned facts leave no doubt that organic trade continues to grow remarkably. Respected organic market analysts like Prof. Ulrich Hamm have forecasted annual growth rates of 20% - 30% a year. The largest organic trader in the UK expects today's 25 billion US Dollar organic market to go to a volume of 100 billion US Dollar in the next five years with a major share of this growth taking place in the USA, Europe and Japan. In the context of these figures and forecasts, Denmark's target of reaching a 20% market share of the total food market for organic products sounds quite realistic. An indication of the future ahead is also the fact that McDonalds, Nestle, and Unilever have entered the organic market.

The rapid growth of organic farming and food brings certainly quite some challenges along for the organic movement. Yet if we do not give up our holistic principles on the "altar of market expansion" we will be able to contribute to the establishment of organic ideas as a starting point for a change in lifestyle and consumption patterns reaching way beyond food and nutrition.

Bernward Geier
Hofgut Imsbach, D-66636 Tholey-Theley/Germany
Phone: +49-6853-919890, Fax: +49-6853-919899
E-Mail: [email protected]
web: www.ifoam.org

Since 1987, Bernward Geier has been Director for International Relations IFOAM (International Federation of Organic Agriculture Movements), the global umbrella organisation of organic farming and research with more than 750 member organisations in 105 countries all over the world. Author of the book "Saving seeds from your own organic garden". Editor and/or co-author of many books on organic farming and related subjects. Some 90 popular and scientific publications in the area of organic agriculture and related fields have also been published. So far lecturing activities, moderation and seminar experience in about 60 countries.

Member of the International Federation of Agricultural Journalists (IFAJ) and active in the field of agricultural politics and policies for about 20 years. Lobbying experiences include UNO, FAO, UNEP, WTO, OECD, EU - Commission, as well as national governments and ministries. Cooperative activities include Greenpeace, IUCN, WWF, PAN and Friends of the Earth.

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