Organic
Agriculture Grows Worldwide
More than 24 million hectares
(1 hectare = 2.5 acres) of farmland are under organic management
worldwide, according to a February 2004 report by the International
Federation of Organic Agriculture Movements (IFOAM). The World
of Organic Agriculture: Statistics and Emerging Trends 2004,
attributes the growth in organic acreage primarily to an increased
global demand for organic food and the expansion of markets for
organic products. If current growth rates continue, organic agriculture
may be seen less as a "niche" market and more as a primary
option for farmers in both northern and southern countries.
Since the last IFOAM report
in 2003, the amount of farmland under organic management has grown
by two million hectares, or 9%. In addition, IFOAM identified 10.7
million hectares of land certified as "wild harvested plants,"
which include naturally grown herbs and timber. Currently three
continents -- Australia (42%), Latin America (24.2%) and Europe
(23%) -- represent roughly 90% of the organically certified acreage
worldwide. Countries fueling the expansion include Australia with
approximately 10 million hectares, followed by Argentina (close
to three million hectares), and Italy with close to a million hectares.
The study estimates that less than half of total worldwide organic
acreage is on arable land, since most of the organic acreage in
Australia and Argentina consists of grazing land supporting extensive
livestock systems.
The growth in organic farming
is the direct result of expanding global markets for organic products,
which totaled approximately US$23 billion in 2002. Demand for organic
products remains concentrated in affluent, industrialized continents,
such as North America and Europe. North American markets experienced
a growth rate of 12% in 2002, totaling US$11.75 billion, with the
bulk of the revenue coming from the U.S. ($11 billion). Growth rates
for European markets have slowed in recent years, yet still increased
at a respectable 8% in 2002, totaling US$10.5 billion. These two
regions represent nearly 93% of the total market share for organic
products and are thus the primary destination of exported organic
goods.
In addition to North America
and Europe, the organic food market in Australia has grown rapidly
and now represents close to US$200 million. Although initially farmers
were attracted to organic farming in order to supply growing export
markets, research indicates that farmers there now have difficulty
meeting domestic demand, which is increasing at a rate of 20 - 30%
annually. Despite Australia's status as a leading producer
of organic food, domestic demand has caused the country to import
organic products from abroad. Industry growth is projected to continue
as farmers earn a reported 50 - 75% price premium for organic
products.
The report identifies two
principle reasons why demand for organic products has remained concentrated
within industrialized nations. First, the price premium for organic
foods requires a sizeable middle class with the purchasing power
to consume higher quality products. Second, the study found that
as education levels rise, demand for organic products increases,
especially as consumers gain a greater awareness of food issues.
IFOAM reports that demand
for organic products is unlikely to remain concentrated in industrialized
nations indefinitely. As more and more developing countries are
attracted to organic farming for export purposes, domestic and regional
organic markets are also expected to grow. In Asia, for example,
export opportunities remain the principle factor in the conversion
of farms to organic production in the region's developing
countries. However, expansion of domestic organic markets in China,
Malaysia, Philippines, Singapore and Thailand has continued to fuel
the region's growth. In China, demand for organics reportedly
exceeds supply, with premiums for organic goods ranging from 10%
to 400%. As southern economies become more developed, it appears
that both the supply and demand for organic foods will continue
to grow.
Sources: The World
of Organic Agriculture: Statistics and Emerging Trends, 6th
Edition, February 2004, and 5th Edition, February 2003, IFOAM, http://www.fibl.org/english/index.php.
Contact: PANNA; International
Federation of Organic Agriculture Movements, IFOAM, Bundeshaus,
-Görresstraße 15, 53113 Bonn, Germany, phone (49-0) 228
926 50-10, fax (49 -0) 228 926 50-99, email headoffice@ifoam.org,
website http://www.ifoam.org/.
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