1st African Organic Conference

Transcription

1 1st African Organic Conference Challenges in meeting European consumer demands for organic products from Africa Niels Halberg & Lise Andreasen International Centre for Research in Organic Food Systems

2 Why focus on organics for export in Africa? Certified organic agricultural products is a sub set of high value chains The fastest growing food market segment Potential in Africa is under-exploited Good basis in selected countries, experience is there, and legislation is underway Organic agriculture offers more than price premium, delivers on other MDGs - But do not forget the holistic principles and practices of organic agriculture Support the local development of agro-ecological methods

3 The global organic market , Billion US$? What happens with demand for organics during the financial crisis? Market growth rates in Europe and North America: 15-25% yearly Organic Monitor;Willer and Kilcher, 2009

4 Organic market share in Percent of food retail in DK 6 Økologisk markedsandel * Shift due to a MEGA-trend: From Proper food, sufficient amount, cheap prices To Healthy food, meaningful stories and decent production Af Kirsten Lund Jensen, Dansk Landbrug

5 Segments of Danish organic consumers Survey by Katherine O Doherty Jensen, KU-Life Engaged in cooking: Yes: No: Quality oriented Yes NO Price oriented Organic better and healthier Yes Only healthier No Confident in organic: Yes Don t know No Global care Yes Don t know No 1. The convinced 2. The brand focused 3. The positive 4. The food focused 5. The careless 6. The sceptics 90% 71% 92% 100% 100% 64% 39% 68% 44% 100% 76% 61% 100% 56 % 41% 93% 86% 58% 40% 67% 100% 47% 59% 90% 71% 57% 55% 73% 91% 90%

6 Segments appreciation of products: Percent of respondents agreeing to the following beeing important motives for their own purchase of organic products: Motive/Segment: all, %: Animal welfare 78 Better environment 74 Avoid pesticide/ medicine residues 70 Better quality 68 95% 49% 97% 46% 92% 43% 92% 42% Family s own health 67 95% 41% Supporting organic principles 61 95% 21% Better taste 55 78% (64% 43% 45% 44%) 30% Survey by Katherine O Doherty Jensen, KU-Life, 2007

7 Proportion of consumer segments divided by approach to organic in Denmark Proportion of habitants Proportion of organic sales 1. The convinced 17% 46% 2. The brand focused 16% 19% 52% 88% 3. The positive i 19% 23% 4. The food focused 24% 8% 47% 13% 5. The careless 11% 3% 6. The sceptical 12% 2% Survey by Katherine O Doherty Jensen, KU-Life SURVEY DATA GfK PANELDATA 2006

8 Consumer opinions and motives for buying organic food in Denmark, 2007 Segments 1-3 also generally believe that t organic farmers take more considerations for global environment in their production, It gives them better consciousness to buy organic products They prefer smaller producers and believe this to be supported by organic agriculture They still prefer Danish to import Few consumers in Segments 4-6 have the same opinion Survey by Katherine O Doherty Jensen, KU-Life

9 Meaningful stories Connecting consumers and farmers Creating reliability in the organic product being organic Creating an understanding for the organic production and principles Creating an image of a responsible, sustainable producer Creating a sense of health and impact with the consumer

10 Meaningful stories

11 Example from Canada g Campaigning for Health, Justice, Sustainability, Peace, and Democracy

12 The affluent Consumers dilemma: What to buy? What are Healthy, tasty and sustainable foods? Large Consumer segments trust in organic products as a way to reduce complexity in food choices The sociological perspective: The function of trust is the reduction of complexity. Trust makes it possible for us to give otherwise unclear surroundings a structure, develop stable expectations of the future, and thereby give action a clear direction Luhmann, Niklas Trust: AMechanism for the Reduction of Social Complexity, in Luhmann, Trust and Power. New York: Wiley: ? What will happen to the organic sector if consumers loose their trust in the self-regulation, the production and the chains?

13 The ideals of organic consumers?

14 The four basic principles of organic agriculture Endorsed by IFOAM, September 2005 Healthy soil Agro-ecology Healthy crops Diversity Healthy livestock Recycling Healthy people Ecological and social justice Fari Trade? Precaution

15 Soil degradation and dfood security Soil degradation d Food security Erosion Compaction Crusting and salinization Nutrient mining Loss of soil organic matter Yield reduction Efficiency of input use reduced Micro nutrient deficiency Need for paradigm shift in land husbandry and Principles and practices for soil management R. Lal, Food Security journal, 2009

16 Solutions for soil and food quality improvements improve soil structure and quality Water conservation and water use efficiency Adoption of diversified cropping systems, indigenous foods, Agro-forestry and mixed farming No-till agriculture On-farm experimentation and adaptation Mulching and recycling organic residues Inoculating soils for improved Biological Nitrogen Fixation Microbial processes to increase P-uptake R. Lal, 2009; Okalebo et al., 2006 With adoption of proven management options, global soil resources are adequate to meet food and nutritional needs of the present and future population

17 OA is good for biodiversity and biodiversity is good for OA Organic farmers use more Agro-ecological methods: Mixed crop rotations, intercropping, Grasslands and green manure, Habitats and non-farmed areas Non-chemical pest management Promoting functional diversity means enhancing and benefitting from Ecological service functions: Pollination Pest and disease prevention Biodiversity preservation, Soil quality Resilience In situ conservation of genes

18 Globalisation of organic food chains, a challenge to organic principles? EUROPA NORDAMERIKA ASIEN AFRIKA LATIN- AMERIKA AUSTRALIEN

19 Challenges for organic farming in light of the globalisation process Global procurement systems and increased supermarket sales Harmonisation and supply-on-demand favours Large-scale production and trade specialisation Increased global competition means pressure on organic principles and commodification of common goods Long distance transport (food miles, energy use) Transperancy, trust, t nearness? Local ownership and control of certification Local embedment of Organic principles Fair trade, partition of price premium (Hall & Mogyorody, 2001; Woodward et al., 2002; Rundgren, 2003; Schwartz, 2002; Milestad & Darnhofer, 2003; Raynolds, 2004; Alrøe et al, 2006)

20 HOW TO COMMUNICATE AND CREATE NEARNESS IN LONG DISTANCE TRADE? g _ Farm _Foods.cmt Let's go! The combination of a uniquely wide range of products all year round, efficient logistics and pre-packing p facilities, have made Eosta into a leading market force in the retail and healtfood marked. Enter the Nature & More code here and start your virtual journey into the real world of our individual growers Eosta participates in Nature & More program, because it gives us an opportunity to be in closer contact with the people who eat our food. sh/licensees/eosta.cmt

21 Potential drawbacks at the local level when engaging in organic high h value chains Knowledge intensive, requires training and motivation Labour demanding Development focus can be too cash crop oriented (limited capacity building) Certification costly (group certification developed) Ownership to certification and control of market link centralised (often not in the hands of local farmers or institutions) Community development and social coherence not guaranteed by rules (Fair Trade as add-on certification) Limited use of agroecological methods, diversification, soil fertility improvement Agro-ecological methods under-researched

22 December 2003 The risk of single cash crop solutions to development. - is this also relevant in Organics? March 2004

23 Sustainability in high value chains Secure capacity building in primary production, value adding and marketing Whole farm oriented extension and development of agro-ecological methods Community empowerment through facilitation of grower groups and marketing Local action research and innovation Make sure there is reality behind the good stories sold to the idealistic i consumers!

24 What is OA in Afican countries? Certified OA: Oriented towards products Focused on few highvalue crops and quality Agro-organic organic methods used in varying degrees Gives access to the market and better prices Increasing market, globally Will remain a niche in the great number of small householdersh Non-certified/informal OA: Agro-ecological farming systems Conscious use of organic methods Follows the principles or ideas of IFOAM, - but is not neccesarily certified Improving the soil fertility Using primarily local resources Using diversity in time and space Promote natural regulation and recycling Decreasing the use of limited ressources s

25 Organic Agriculture is a good option for food security in Africa " organic agriculture can be more conducive to food security than most conventional systems, and.. it is more likely to be sustainable in the long term." (UNEP-UNCTAD, 2008). Remember this theme on Friday!

26 How to secure local/regional innovation and capacity building in organic agriculture and food chains? Radical change of research in agriculture is needed: Degradation of ecosystems limits or reverses productivity gains A fundamental shift in AKST is required to successfully meeting development and sustainability goals [Agro-]Ecosystem research is the only approach to cope successfully with food security in a long term perspective Interdisciplinary research indispensable. Involving of indigenous/tacit knowledge of farmers crucial. Very critical assessment of technology impact is urgent. J h b R t f IAASTD (2008) Johannesburg Report of IAASTD (2008) International Assessment of Agricultural Science and Technology for Development

27 Thank you! More:

28 Example: Science for development of agro-ecological methods `vuta sukuma = pull - push system for reducing stem borer and striga infestation in Maize and Sorghum in Eastern Africa Trap crops to attract moths to reduced pest problems in crops: Napier and other fodder grasses Intercrops with repellant properties: legumes Striga control by intercropping i with Desmodium species (legumes) Opportunities for breeding and use of molecular Oppo tu t es o b eed g a d use o o ecu a genetics

29 Trends in demand for organic products in Denmark Demands for organic products increased by 18% in 2006, Expected growth in 2007: 25% Import of organic fruits up 27% and vegetables up 51% between

30 Organic market share in percent of national retail markets, Europe

31 Key challenges for market oriented organic farming: How may certified organic farming meet the challenges of the increased globalisation of organic food chains in order to continue to offer a significant alternative to mainstream food production? How can the sector maintain its integrity, credibility and trust with consumers over long distance trade? From organic agriculture to organic food chains

32 1st African Organic Conference 1. Why focus on organics in Africa 2. What are the status of the European/global market for organic products? 3. What are the European consumer s motivations for buying organic 4. What are the characteristics of the European consumer example from DK 5. What are the challenges in meeting the demands of the European consumer

33 Organic Agriculture and soil quality Results from different long term experiments: The organically treated soils were physically y more stable, contained smaller amounts of soluble nutrients and were found to be biologically more active than conventional. (DOK trials, Mäder et al., 2002) Under organic farming the soil organic matter captures and retains more water in the crop root zone. Water capture in organic fields can also be 100% higher than in conventional fields during torrential rains. (Rodale Institute, 2008)

34 At the COAG meeting, the committee stressed that t "an ecosystem approach be adopted in agricultural management in order to achieve sustainable agriculture, including integrated pest management, organic agriculture and other traditional and indigenous coping strategies that promote agroecosystem diversification and soil carbon sequestration.

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36 Market growth rates in Europe and North America 15-25% yearly? What happens with demand for? What happens with demand for organics during financial crisis?

37 British retail chain promises fresh organic products globally procured.

38 ..but the same chain also promotes their local organic products: Culture Much of our cultural heritage comes from our farming communities and the landscape they fashion over time. Global and local at the same time? Meet the farmer