Market Trend and Production Challenge of Organic Tropical and Sub- - PowerPoint PPT Presentation

Market Trend and Production Challenge of Organic Tropical and Sub- Tropical Fruits Vitoon Panyakul Eart h Net Foundat ion / Green Net vit oon@greennet .or.t h

Global Organic 2006

Global Organic Farms  30. 4 million hectares of agricultural land are managed organically  Slightly more or less are wild collect ion areas  12. 3 million hectares are in Australia  Continues to expand  Large areas are grassland (livestock)

Growth of organic agricultural land and wild collection 1998- 2006

Organic Production Trends  Organic agriculture becomes mainstream  Government and international institut ions have policies to support organic f arming  Agro- chemicals are expensive and not available  LDCs see as export opportunities  Not enough supplies

Global Organic Markets  Global turnover with organic products 2006: almost 40 billion US Dollars  EU and US accounted f or 95% of markets, half each  69 countries have a regulat ion, 21 are draf ting  More than 468 organic cert if yers

Major Market Trends  Food saf ety : pesticides, GMOs, antibiot ic  Key players ent er organic markets  Change of organic consumer bases  Variet ies of organic products, especially processed f oods  House brand, and supermarket organic seals  Organic seals linked to regulat ions

TST Fruits  Well- known: banana, pineapple, kiwi  Exotic f ruits are less known, rambutan, mangosteen, durian, lychee, jack f ruits  Estimate EU market in 2004 of organic TST f ruits 10, 000 tons  UK (330 m euro) 96% imported TST f ruits and orange (banana 80, 000 tons)  German market expanded by 42% e. g. banana, apple, orange

TST Fruit : pineapple  EU markets need around 4, 000 tons per year (5 container per week)  High demand in May – June and Christ mas  Prepared t o pay premium, but expect quality  Currently, EU import s Smooth Cayenne pineapple f rom Af rica

TST Fruit : mango  EU consumers just start to know about mango, but less than pineapple  EU need around 5, 000 tons of organic mangoes per year, and increasing  EU consumers like yellow- red mango, no f ibre, tasty, juicy, but they do not like to peel it themselves  Ready to eat mango may have a wider market

Processed Fruits 3 types  dried or de- hydrated  Fruit juice (concentrat ed, ready to drink) and puree  Canned f ruits

dried or de- hydrated  2 market groups, f inal consumers or f ood manuf act urers  Most ly used as ingredients f or breakf ast cereals, snack bar, and dessert  Food manuf act uring is expanding f ast, especially cereals and snack bar

dried or de- hydrated  Already in high demand f or consumer markets, banana, mango, papaya, pineapple  Some EU importers interested in candy tropical f ruit, esp. pineapple and papaya (no organic available)  Quite compet itive because high premium  Currently, imported f rom Mediterranean producers

Fruit juice  Popular juices are orange and apple  Others are less known  Opport unities exist f or guava, mango, pineapple, and papaya  major manuf act urers are in I taly but consumer markets are in Germany, consuming around 40% of EU organic f ruit juice

Fruit juice  Another growing markets are I taly, with public and school procurement programme  Vegetable juices are possible, but smaller market s  Mainly in Germany through health f ood shops

Canned f ruits  Just started with canned pineapple  Possible market channels: – f ood industries (two third of canned pineapple) uses canned pineapple pieces f or sauces, pizza, bread – Consumer markets in UK, NL, GM with tin can or glass jar

Challenges: Production  Supplies are seasonal, no regularity  Lack of support mechanism during conversion: ext ension, knowledge  Processing needs economy of scale, dif f icult to start with small volume  Need cold supply chain and good logist ic inf rastructure  Air f reight costs are high & increasing  I mport rules are complicat ed

Challenges: Markets  Anti- air f reight attitudes among EU consumers  Supermarkets have its own organic standards  Local cert if iers are recognized internationally but not support ed by national authorities  “Eating local” becomes an important trend

More I nf ormation  Helga Willer, Minou Yussef i-Menzler , Neil Sorensen (Eds.) (2008): The World of Organic Agriculture. Statistics and Emerging Trends 2008 . I FOAM and FiBL; DE-Bonn and CH-Fr ick < www.ifoam.org and www.fibl.org/shop/index.php>  a sur vey carr ied out mid 2006 by Bir t he Thode J acobsen, BI OService, Denmark, on behalf of t he I nt er nat ional Tr ade Cent r e (UNCTAD/ WTO) as part of t he pr oj ect “St r engt hening t he Expor t Capacit y of Thailand’s Or ganic Agr icult ur e” < www.int r acen.or g/ dbms/ Or ganics/ index.asp>

www.organicmonitor.com/100242brochure.htm

Research Highlights  Et hical f r uit & veget able sales increases over 20% a year and exceeded EUR 5 billion f or t he f irst t ime in 2007  Rising et hical consumerism is dr iving demand f or organic and f air t r ade product s . Ret ailers are responding by expanding organic product r anges and making f air t rade sour cing pledges.  The market share of et hical pr oduct s is approaching 10% of all f ruit & veget able sales in some European count ries .

Research Highlights  Undersupply is dogging t he organic f ood indust ry, wit h suppliers & ret ailers sour cing product s f rom Af r ica , Asia , Aust ralasia and t he Amer icas because of t he short f all in European supply.  Fair t rade f ruit & veget ables ar e report ing t he highest growt h , wit h sales expanding by 92% last year .  Most FT growt h is in t he UK, a quart er of all bananas ar e now cert if ied f air t rade .

Research Highlights  The supply - side is becoming incr easingly compet it ive as mergers & acquisit ions and rat ionalisat ion t ake place .