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

• 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)

Global Organic Farms

Growth of organic agricultural land and wild collection 1998- 2006

• Organic agriculture becomes

mainstream

• Government and international

institut ions have policies to support

• rganic f arming
• Agro- chemicals are expensive and not

available

• LDCs see as export opportunities
• Not enough supplies

Organic Production Trends

• 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

Global Organic Markets

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

• 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 Fruits

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

• 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

TST Fruit : mango

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

• f 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
• ver 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

• f 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
• f 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.