Organic Agriculture Worldwide. Helga Willer Research Institute of Organic Agriculture FiBL, Frick, Switzerland Presented at The Fourth Organic Meeting of Latin America and the Caribbean, Salinitas, El Salvador October 13, 2009. Content. About FiBL
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Organic Agriculture Worldwide Helga WillerResearch Institute of Organic Agriculture FiBL, Frick, Switzerland Presented at The Fourth Organic Meeting of Latin America and the Caribbean, Salinitas, El SalvadorOctober 13, 2009
Content About FiBL Organic agriculture world-wide: Area, farms, land use The organic market Legislation Africa - Asia – Oceania – North America – Europe Latin America and the Caribbean Outlook
FiBL Switzerland in brief > Private foundation established in 1973 > 120 staff members > 20 trainees, students etc. > Experimental farm 40 ha > On-farm research on 200 organic farms
The Global Organic Survey 2009 The global organic survey 2009 as well as the production of the yearbook ‘The World of Organic Agriculture’ was carried out with the support of • International Trade Centre, Geneva • Swiss State Secretariat of Economic Affairs SECO, Berne • Nürnberg Messe, the organizers of the BioFach Organic Trade Fair
SECO ITC project: Global information system for organic market and production data • Since 2008 there has been support by the Swiss State secretariat of Economic Affairs SECO and the International Trade Centre, Geneva, for: • Data collection; • Support of local partners for the data collection; • Development of a classification of organic products (including manufactured products); • Ease data collection through database improvement and an online data entering tool; • Setting up the website www.organic-world.net; • Carrying out a global overview of data availability.
Organic agriculture worldwide 2007 – the tenth global organic survey Source: FiBL & IFOAM Survey 2009
Global organic survey 2009 • The tenth survey on organic agriculture world-wide was carried out by FiBL and the International Federation of Organic Agriculture Movements IFOAM (IFOAM for Africa). • The survey was carried out between July and December 2008 • Most data collected are from 2007, for some countries for 2008 • Data were received from 141 countries (2006: 135 countries) • Data were provided by country experts, (representatives from NGOs, certification bodies, governments, researchers) • The results are published in the yearbook ‚The World of Organic Agriculture‘ and at www.organic-world.net
Key data 32.2 million hectares of agricultural land are managed organically In addition to the certified organic agricultural land (including in-conversion areas) there are 0.4 million hectares of organic aquaculture areas 30.7 million hectares of organic wild collection areas More than one third of the world‘s organic land is in Oceania, followed by Europe (24%) and Latin America (20%) 12 million hectares are in Australia, followed by Argentina (2.8 million hectares) and Brazil (1.8 million hectares) Almost 30 % of the agricultural land in Liechtenstein are organic, followed by Austria (13.4 %) and Switzerland (11 %) 1.2 million organic producers were reported Source: FiBL & IFOAM 2009
World: Distribution of organically managed agricultural land by geographical region 2007 Source: FiBL & IFOAM Survey 2009
World: The ten countries with the most organic agricultural land 2007 Argentina, US and Uruguay: Only fully converted areas Source: FiBL & IFOAM Survey 2009
World: The ten countries with the highest shares of organic agricultural land 2007 Source: FiBL & IFOAM Survey 2009
World: Shares of organic land 2007 (142 countries) Source: FiBL & IFOAM Survey 2009
World: Shares of organic land 2007 (142 countries) Source: FiBL & IFOAM Survey 2009
World: Development of organic agricultural land 1999-2007 (Revision date: May 2009) Source: FiBL, IFOAM & SOEL 2000-2009
World: Development of organic agricultural land 2006 to 2007 by geographical region Source: FiBL & IFOAM Survey 2009
World: Organic producers by geographical region 2007 Source: FiBL & IFOAM Survey 2009
World: The ten countries with the largest numbers of organic producers 2007 Source: FiBL & IFOAM Survey 2009
World: Use of total land under organic certification (63.3 million hectares) 2007 Source: FiBL & IFOAM Survey 2009
World: Use of organic AGRICULTURAL land 2007 (total 32.2 million hectares) Source: FiBL & IFOAM Survey 2009
Agricultural land use by geographical region in organic agriculture 2007 Source: FiBL & IFOAM Survey 2009
Legal protection • Today 71 countries have organic laws (not fully implemented in all countries) • 21 countries are in the process of developing an organic law. • The organic regulations in the major markets like the European Union, Switzerland, the US and Japan are of particular relevance to the development of the global organic market, as these countries are all major importers of organic products. • Organic laws are important in order to protect producers and consumers. • They are also important because they are a basis for governmental support measures like action plans. (and also as a basis for governmental data collection).
Certification Worldwide there are 481 certifying organisations Most are in Europe (177), followed by (157) and North America (73). The countries with the most certifiers are Japan, the US, Germany, South Korea and China. In 78 countries certification is carried out by local bodies. In many countries of Africa and Asia the certification structures are not yet developed and many foreign certifiers are carrying out the certifications. Source: Organic Standard 2009
Number of certification bodies/shares of the regions 2008 Source: Organic Standard/Grolink, Rundgren 2009
The global market for organic food and drink Global demand for organic products remains robust, with sales increasing by over five billion US dollars a year. Organic Monitor estimates international sales to have reached 46.1 billion US dollars in 2007, thus having trebled since 1999. In the past five years annual growth was five billion US Dollars The marketing research company Organic Monitor is predicting lower growth rated for the coming years. Source: Organic Monitor 2009
Global organic market by regions: Shares 2007 • Consumer demand for organic products is concentrated in North America and Europe; according to Organic Monitor these two regions comprise 97 percent of global revenues. • Here are the largest markets for organic products, many products are imported. • Asia, Latin America and Australasia are important producers and exporters of organic foods. • The countries with the largest markets are the United States, followed by Germany and the UK. • Up to 2008 strong growth rates have led to an undersupply with organic products. Source: Organic Monitor 2009
The global market for organic products 2008Survey date: 5.10.2009 Compiled by: FiBL
Global market for organic products: Outlook In 2007 for Europe and the US the biggest challenge for the organic sector was the lack of supply with organic products. Since the autumn of 2008 the economic crisis is felt, slowing down consumer demand in the UK and the US, since the second half of 2009 also in Germany (for some products). Organic Monitor expects that there may be an oversupply for some commodities like cereals, fruit, meat and dairy products. Organic Monitor expects that perhaps producers in countries with a strong focus on exports will be hit more by the financial crisis as they are very dependent on exports. It is therefore very important to develop domestic markets. Source: Organic Monitor 2009
Africa: Land under organic management (ha) in the countries of Africa 2007 • In Africa, organic farming makes an important contribution to income and food security. • In 2007, almost 0.9 million hectares – about 3 percent of the world’s organic agricultural land – were certified organic. • This constitutes an increase of more than 185,000 hectares compared to 2006. • One percent of Africa’a agricultural land is organic. • The data situation is difficult as only few countries have private or public data collection systems. Source: IFOAM and FiBL 2009
Africa: Development of organically managed agricultural land 2000-2007 Source: IFOAM and FiBL 2009
Africa: The ten countries with the most organic agricultural land 2007 Source: IFOAM and FiBL 2009
Africa: Distribution of organically managed land by country 2007 (total: 870,000 ha) Source: IFOAM and FiBL 2009
Land under organic management (ha) in the countries of Asia 2007 • The total organic area in Asia is nearly 2.9 million hectares. This constitutes nine percent of the world’s organic agricultural land. 230,000 producers were reported. • The leading countries are China (1.6 million hectares) and India (1 million hectares). It should be noted that in addition to China’s organic agricultural land a further 0.4 million hectares are certified aquaculture areas. • The highest shares of organic land in relation to all agricultural land are in Timor Leste (seven percent). Source: FiBL Survey 2009
Asia: Distribution of organically managed agricultural land by country 2007; total: 2.9 million hectares Source: FiBL 2009
Asia: Market • Whereas up to recently the growth of the organic sector was mainly due to export activities, this is now changing. • Today imported products are beginning to play an important role, and the organic market is growing. • The market, is however still small, 780 million US Dollars in 2006 (ca. 2 percent of the global market at that time). • The biggest demand in Japan, South Korea, Singapore and Taiwan. • The growth of the Asian market is mainly due to increasing consumer awareness and better availability in general retail stores. • Market growth is however hindered by high prices (high transport costs as many products are not produced in the region and, in some parts of Asia, a low purchasing power.
Oceania: Land under organic management (ha) 2007 • This region includes Australia, New Zealand, and island states such as Fiji, Papua New Guinea, Tonga and Vanuatu. • Altogether, there are 7,222 producers, managing almost 12.1 million hectares. • This constitutes 2.6 percent of the agricultural land in the area and 38 percent of the world’s organic land. • Ninety-nine percent of the organically managed land in the region is in Australia (12 million hectares, 97 percent extensive grazing land), followed by New Zealand (65,000 hectares) and Vanuatu (8,996 hectares). Source: FiBL 2009
North America: Land under organic management (ha) 2007 • Seven percent of the world’s organic agricultural land is in North America. • In North America, almost 2.2 million hectares are managed organically. • This represents approximately 0.6 percent of the total agricultural area. • There are 12,064 producers. • The major part of the organic land is in the US with 1.6 million hectares in 2005. • For the US the latest data available are from 2005. New data are expected to be published autumn 2009 by the United States Department of Agriculture USDA. Source: FiBL Survey 2009
North America: Development of organically managed agricultural land 2000-2005 For the US 2006 and 2007 data are expected to be published summer 2009 Source: USDA and Canadian Organic Growers 2000-2009
North America • Valued at more than 20 billion US dollars in 2007 (Organic Monitor), the North American market accounted for 45 percent of global revenues. • Growing consumer demand for healthy & nutritious foods and increasing distribution in conventional grocery channels are the major drivers of market growth. • The US organic industry grew 21 percent in sales in 2006, and was forecast to experience 18 percent sales growth each year on average from 2007 through 2010. Whether this rate will actually be realized is uncertain due to the economic downturn and reduction in consumer spending in the last quarter of 2008. • However, during 2008 the organic market continued to grow: According to OTA (2009), the US market for organic food reached 22.9 billion US dollars. • Likewise, a downturn is expected in Canada, even though the market growth in Canada, paired with the introduction of the new organic regulations, should provide a good outlook over the coming years.
US: Organic food sales 1997-2008 Source: OTA: Organic Industry Survey 2009 and previous surveys; data 2008 according to USDA.
Organic farming in Europe: Key facts • In Europe, the history of organic dates back to the 1920s. • European organic farming is characterised by • Comparatively high shares of the agricultural land; there is no other region in the world which has similar shares. • Comparatively high market shares; • Many forms of government support; • Early regulations of the organic law. • Europe is the cradle of organic agriculture; here the International Federation of Organic Agriculture Movements was founded and the first organic regulations were developed.
Land under organic management in the countries of Europe 2007 • At the end of 2007, 7.7 million hectares in Europe were managed organically by more than 200,000 farms. • In the European Union, 7.2 million hectares were under organic management, with more than 180,000 organic farms. • 1.9 percent of the European agricultural area and 4 percent of the agricultural area in the European Union is organic. • Twenty-four percent of the world's organic land is in Europe. Source: FiBL & ZMP Survey 2009
Europe: Development of the organic land 1985-2008Survey date: 5.10.2009 Source: Aberystwyth University, FiBL
Europe: The ten countries with the largest organic areas 2008 5.10.2009 Source: FiBL-Survey
Europe: Distribution of organic land by countries 2008 Survey date: 5.10.2009 Source: FiBL-Survey
Europe: The ten countries with the highest share of organic agricultural land of all agricultural land 2008 Survey date: 5.10.2009 Source: FiBL Survey
The European market for organic food and drink: Key data 2008Survey date: 5.10.2009 • Market growth in 2007: 15 %, in 2008: approx 10 %; • In some countries growth rates were higher; • Total market in 2008: Ca. 18 billion Euros; • Germany is the largest market with 5.85 billion Euros in 2008; • In most countries most of the organic products are sold in supermarkets.
The European market for organic products 2008Survey date: 5.10.2009 Dompiled by: FiBL
The European market for organic food: The countries with the highest sales 2007 and 2008Survey date: 5-10-2009 Source: Aberystwyth University, FiBL & ZMP Survey 2009* For the UK the data are not comparable due to fluctuations in the exchange rate of the British Pound
Europe: Distribution of sales of organic food and drink by country 2008 (provision total for 2008: 17.9 billion Euros) Source: Aberystwyth University, FiBL & ZMP 2009