Organic Agriculture: A Trade and
Sustainable Development
Opportunity for Developing
Countries
Sophia Twarog, Ph.D.
What is organic agriculture?
Certified organic production: over
30 million hectares, 138+ countries
OA as a national sustainable
development opportunity
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Economic benefits
Food security benefits
Environmental benefits
Social & cultural benefits
Economic benefits
Net income = (price x quantity) – total
costs
Generally, organic farmers earn more.
Food security benefits
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Higher incomes
Higher yields
Diversified production
Improved nutrition
Environmental Benefits
• Less pollution
• Improved soil, incl. increased water
retention and less soil erosion
• Enhanced biodiversity
• No genetic contamination
Environmental Benefits, cont’d
• Mitigated climate change
• Reduced energy consumption
• Landscape services
Social & cultural benefits
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Benefits for smallholders
Women’s empowerment
Builds on traditional knowledge
Reduced rural-urban migration
Improved health & safety
Community revitalization
OA as an export opportunity—rapid
global market growth
Gro wth o f th e glo b a l m a rke t fo r o rga n ic fo o d a n d d rin k
2002-2006 (Billio n US Do lla rs)
45.0
40.0
Billion US Dollars
35.0
30.0
25.0
20.0
3 8 .6
3 3 .2
15.0
10.0
2 3 .1
2 5 .5
2 8 .7
5.0
0.0
2002
2003
2004
Source Source: The Global Market for Organic Food & Drink, Organic Monitor 2007
2005
2006
OA as an export opportunity
• Global sales growth rates at least
double those of conventional food
products
• Acute supply shortages since 2005
• Developing country exports rising fast
• Price premiums
Regional Distribution of
Organic Food Sales 2006
Region
Billion USD
Western Europe 20.0
North America
17.3
Asia
0.78
Oceania/Australia 0.34
TOTAL
%
52
45
2
1
38.6
Source: Sahota (2008)
Regional Distribution of
Organic Food Sales 2006
Distribution of Globa l Re ve nue s by Re gion 2006
Asia/ Pacific
2%
North Am erica
45%
Source: Sahota 2008
Oceania
1%
Europe
52%
Regional distribution of certified
organic production 2006
Export opportunities include
• Fresh and processed tropical products
• Counter-seasonal fresh produce
• Other products with demand-supply
gaps
• Ingredients for food processing
industry
Production challenges
• Little or no government support
(policies, ag extension, R&D)
• Conversion period
• Knowledge intensive
• Sometimes lack of organic inputs
• Lack of secure land tenure
Export challenges
OA exports must:
• Meet SPS requirements in import mkt
(same as for convent’l products)
• Meet requirements of OA regulations
& be certified by approved cert. body
• Meet additional requirements of
private standards (sometimes)
Export challenges
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Agric. Subsidies in import markets
Need for market information
Consumer preferences for local food
Lack of harmonization, equivalence &
mutual recognition
Recommendations to developing
country governments
• Assess national organic sector &
policies
• OA action plan
• Consider supporting OA R&D,
extension services, certification costs,
development of domestic market,
exports, harmonization
Other factors contributing to success
• Community organization
• Group certification
Recommendations at international
level
• Pursue harmonization and equivalence
• Take into acct special conditions in
developing countries
• Provide market info
• Support TC/CB in OA
UNCTAD initiatives
• Publications
• UNCTAD-FAO-IFOAM International Task
Force on Harmonization and Equivalence
on Organic Agriculture (ITF)
• UNEP-UNCTAD Capacity Building Task
Force on Trade, Environment and
Development (CBTF)
For more information
www.unctad.org/trade_env
[email protected]
Thank you!