REPORT ON SPICES BOARD S PARTICIPATION IN BIOFACH 2014 NUREMBERG MESSE, GERMANY
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1 REPORT ON SPICES BOARD S PARTICIPATION IN BIOFACH 2014 NUREMBERG MESSE, GERMANY FEBRUARY
2 ACKNOWLEDGEMENT We express our sincere gratitude to Dr. A. Jayathilak, IAS, Hon ble Chairman, Spices Board, Govt. of India for offering us opportunity to participate and to represent Spices Board in the international organic trade fair BioFach 2014, Nuremberg, Germany held from 12 th to 15 th February We also cordially thank the Publicity, Administration, Accounts and Marketing Section of Spices Board for extending prompt support for the arrangements made for successful participation in BioFach Dr. G. Lingappa Prabhu Pratap Kanel Asst. Director (Dev) Dy. Director (Mktg) Spices Board Spices Board
3 Economy of Germany Germany is the largest national economy in Europe, the fourth-largest by nominal GDP in the world and fifth by GDP (PPP). Since the age of industrialization the country has been a driver, innovator, and beneficiary of an ever more globalised economy. Germany's economic policy is based on the concept of the social market economy. The country is a founding member of the European Union and the Euro-zone. Germany is the third largest exporter in the world with $1.516 trillion exported in Exports account for more than one-third of national output. In 2013, Germany recorded the highest trade surplus in the world worth $270 billion, making it the biggest capital exporter globally. Among the top 10 biggest economies in the world, Germany is the only country with a stable Triple-A credit rating. The service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Most of the country's products are in engineering, especially in automobiles, machinery, metals, and chemical goods. Germany is the leading producer of wind turbines and solar power technology in the world. Combination of service-oriented manufacturing, R&D spending, links between industry and academia, international cooperation contribute to the overall competitiveness of the economy of Germany. In 2010 agriculture, forestry, and mining accounted for only 0.9% of Germany s gross domestic product (GDP) and employed only 2.4% of the population, down from 4% in Agriculture is extremely productive, and Germany is able to cover 90% of its nutritional needs with domestic production. Germany is the third largest agricultural producer in the European Union after France and Italy. Germany s principal agricultural products are potatoes, wheat, barley, sugar beets, fruit, and cabbages. Germany is the world's top location for trade fairs. Around two thirds of the world's leading trade fairs take place in Germany. The largest annual 3
4 international trade fairs and congresses are held in several German cities such as Hanover, Munich, Frankfurt and Berlin. BioFach 2014, Nurnberg The Biofach is the world s largest trade fair for organic food and agriculture held each year in the month of February. The BIOFACH celebrated 25 th anniversary in February, 2014 from 12-15, in Nuremberg, Germany and the 8 th edition of VIVANESS. 2,235 exhibitors from 76 countries (613 from Germany) including India presented their products for buyers from the food and cosmetic sectors, which was visited by 42,445 trade visitors from 135 countries. The maximum visitors recorded were from Germany (56%), Austria, Italy, France and Netherlands followed by Poland, Belgium, Switzerland, Czech Republic and Great Britain/Northern Ireland. The visitors according to the Sector of Economy were retail (37%), wholesale trade/ import & export (19%), Manufacturer (18%), Agriculture & Aquculture (11%), Service sector (8%) and others (6%).
5 The Special focus in BioFach 2014 was on the future of the organic food industry and the key theme Organic 3.0. About 996 journalists from 38 countries were accredited to BioFach The anniversary guests offered their congratulations on the 25 th anniversary edition and praised the exhibition. According to the result of the survey by an independent institute, about 91% of the exhibitors of BioFach 2014 rated their overall success positively. About 97% of the visitors were satisfied with the products offered in the exhibitions, 93% of the exhibitors reached their top target groups and 87 % of BioFach exhibitors expect good follow-up business as they have made new business contacts. Spices Board s stall in BIOFACH, 2014 The Spices Board of India, a pioneer of promoting organic cultivation of spices in India made its commendable participation in BioFach It s an annual phenomenon for the Board to contribute its significant presence and presentation in this leading organic trade fair with five of its co-participant Indian organic spices exporters in Hall 5 spread over 45 sq. mts. The Indian pavilion was coordinated by APEDA taking 498 sq mts. There were about 30 independent stalls of Indian manufacturers and exporters. Apart from the 5
6 Board s stall, the leading Indian organic spices exporting companies had individual stalls to promote export of organic spices. In BioFach 2014, Spices Board of India was represented by Shri P.P. Kanel, Deputy Director and Dr. G. Lingappa, Assistant Director. The following are the five co-participants at the Spices Board stall:- 1. M/s. Wayanad Social Service Society, Kerala ( Fr. John Joseph), 2. M/s. Aricha Trading Company, Kolkata (Mr. Vishal Jalan & Mr. Vivek Bhardwaj), 3. M/s. Plantrich Agri Tech Pvt. Ltd, Kerala ( Mr. Bijumon Kurian & Ms. Sheeba Susan Biju), 4. M/s. Jeevagram, Kalady, Kerala ( Mr. Johny Vadakkumchery) & 5. M/s. Indian Organic Farmers Producer Company Limited, Kochi, Kerala (Mr. P.J. Chackochan). Spices Board s stall attracted more than 600 visitors from Italy, Germany, Spain, Denmark, UK, Poland, Netherland, Ukraine, USA, Ireland, Switzerland, Singapore, China, Japan and France in the Spices Board stall besides Sri-Lanka, Pakistan and Nepal during the four day s show from 12 th to 15 th February All the co-participant exporters could revive their business relation with the German as well as international buyers of organic spices and spice products allalong every day, out of which they received about genuine new business visitors as reported. These five co-participants expressed their satisfaction over worth participation through the Board s stall. The queries received were mostly about availability of organic spices like ginger, turmeric, pepper, nutmeg, cardamom, coriander, chilli, pepper-long etc. The Indian organic spices exporters took the opportunity to visit the Board s stall to enquire about the prospects and scope of certified organic ginger, turmeric and chilli in India to meet their export requirements.
7 The Co-participant of Indian spices exporters in Spices Board stall in BioFach 2014 with the Board s officials (from left Dr. G. Lingappa, Asst. Director, Shri P.P. Kanel, Dy. Director, Mr. P.J. Chackochan, Mr. Johny Vadakkumchery, Fr. John Joseph and Mr. Bijumon Kurian & associates. Mr. M. Sevala Naik, IFS, Consul General, Embassy of India, Munich, Germany, Mr. Avinash K. Srivastava, IAS, Addl. Secretary, Ministry of Agriculture, Govt. of India and Mr. Santosh Sarangi, IAS, Secretary, APEDA visited the Board s stall and had discussions will all participants. They were received at the Board s stall by Mr. P.P. Kanel and Dr. G. Lingappa. Highlights of Biofach The highlights of the complete global show for the organic market were arranged for BioFach 2014 into five clusters of Trends & Innovations, World of Experience, Fachhandelstreff, Generation Future and Congress. 7
8 Trends & Innovations: Exhibitors and visitors discovered Trends & Innovations concentrated on two Novelty stands where 496 innovative and inspiring products could be experienced. Vegan food with 111 delicious products was a separate category and new in Worlds of Experience: Cheese Olive oil, Wine, Fish and Coffee were five Worlds of Experience discovered by buyers where traders were able to gather sound practical information about the respective range of products from recognized experts, to try out the products and obtain inspiration for their own shop. Fachhandelstreff: The Fachhandelstreff with Forum and Club confirmed its function as a central communication location for the German retail trade. The highlights of Generation Future were the career centre and the Organic Food Research Award, which was presented for the first time. Among the prizewinning organic products in the Best New Product Award competition were Fresh Chilli Noodles from frizzle (category fresh) and Ginger Verde organic from Querdenker (category drinks). Congress: The Congress at the 25 th anniversary edition of the BioFach 2014 exhibition with VIVANESS attracted 6550 participants to 104 individual events including 30 company presentations. The key theme Organic 3.0: At the Congress and in the exhibition halls, exhibitors and visitors showed an intensive interest and commitment to the focus theme Organic 3.0, which was organized jointly by IFOAM, the international patron of the world s leading exhibition, BOLW (German Federation of the Organic Food Industry), the national supporting organization, and BIOFACH. The most popular was the congress paper on the Organic 3.0 Trend & Potential Study by future researcher Hanni Rutzler, which was attended by 260 participants. This year s BIOFACH did not feature a country of the year. Rather, the fair was about the future of organic. As IFOAM s Executive Director, Markus Arbenz explained at the kickoff event in Nuremberg, following the pioneers of the movement (1.0) and development of the sector (2.0), the organic movement will have to ask itself just how it contributed to solve some of the world s most urgent problems such as food and health, soil and water protection, free access to seeds
9 and soils, issues of animal welfare etc. While discussing the impact of organic farming on these issues was necessary to re-access the position of the organic movement in today s and tomorrow s environment, as some BIOFACH visitors might miss more precise action plans as to what exactly needs to be done by whom. Prof. Pablo Tittonell compared the current situation to that of renewable energies some decades ago. What is seen as viable alternative today used to be on fringe back then. Organic farming is in a similar position today. As a viable alternative to conventional agriculture, it is ready to get going. The biggest question would be who or what is the trigger to spark the organic explosion! Surely no single individual or association will be able to provide the answer at least that more is for sure. The Research Institute for Organic Farming (FiBL) and the International Federation of Organic Agricultural Movements (IFOAM) are publishing a useful survey of organic farming all over the world every year. THE WORLD OF ORGANIC AGRICULTURE 2014 is available on-site at this year s BIOFACH, as well as directly from FiBL through their online shop: German organic market grows further The German organic market is the biggest in Europe. At BIOFACH 2014, leading market researchers presented recent statistics for The key figures are as follow: Market volume is up 7.2% from 7.04 bln Euro in 2012 to7.55 bn Euro in Little has changed in the distribution of sales among various channels: Multiple retailers dominate the market with a share of 60%, while a strong specialized organic retail can hold its own with a share of 32%. The area of organic farmland is up 1.0% to 1.04 bn ha in Focus on German Organic Market Hall 6 of BioFach 2014 was the first hall with a distinct focus on German Organic market, so it might be something of a terra incognita for you- but rest assured, it 9
10 was well worth the exploration! The right part of the hall was dominated by the Naturland Association and its partners, including Naturland Zeichen at stand and olive oil manufacturer Mani Blauel at stand Visitors did not missed the variety of organic food on offer. Just left of Naturland on the hall was the pavilions with companies from lower Saxony. This federal State, one of the 16 that form the backbone of Germany, has traditionally been a stronghold for agriculture, but also had a couple of established processors in the organic trade. Doing Business in Germany In the last couple of years, the German organic market has proven attractive to suppliers from abroad, not least because of the sheer market volume of more than 7 bn Euro. However, there is a growing discussion in Germany on increasing import rates. While there is possibly no other country where processing facilities for organic products are as widespread as they are in Germany, organic farming is staying far behind the rapid growth of the market. When trying to establish business relationships with German companies, please bear in mind that there is an increasing need to differentiate. Just like the conventional food market, the organic market has seen an ever increasing assortment on the shelves of supermarkets and stores. Organic a slow burner: Organic farming is thriving as a global scale, but in doing so proves a routine slow burner. Latest data collected by the International Federation of Organic Agricultural Movements( I F O A M) and Swiss Research Institute for Organic Farming, FIBL Show that Organic Farmland in 2012 was up a mere 0.5 percent to 37.5 million hectares worldwide. According to Market Research, done by London-based Company Organic Monitor, Global Organic sales were estimated with a total of 63.5 billion USD. The U.S remained the largest Organic market worldwide with sales of 22.6 billion Euro and 10% growth rates. The German and French Market followed with 7 billion Euros and 4 billion Euros, respectively. Swiss and Danish consumers were most eagerly buying organic with per capita spending of 189 and 159 Euro respectively.
11 REGION-WISE AREA UNDER ORGANIC CULTIVATION IN THE WORLD REGION 2012 AREA (Hac) 2011 AREA (Hac) 2010 AREA (Hac) 2009 AREA (Hac) AFRICA '026' ASIA '580' EUROPE '208' LATIN AMERICA '660' NORTH AMERICA '652' OCEANIA '152' (India s share) ( ) ( ) ( ) (1'180'000.00) Source: FiBL IFOAM Survey. Organic producers scenario Around 80 percent of the 1.9 million organic producers in the world care from LDC S small holding farmers dominates organic agriculture in India (some 60, 0000 reported) Uganda (1, 89,610), Mexico (1, 69,707) and Tanzania (1, 48,610). The area of the organic farm land increased modestly by nearly ha to 37.5 million ha worldwide. Africa was up 7% while European farmers added an area of 6%. Certified organic farming is still a mind phenomenon globally, with an estimated share of 0.87% of all agricultural land. While Australian dominated the statistics in terms of absolute figure (12.2 million ha) estimates range up to 97% comprised of extensive grazing areas if you leave out small countries like the Malvinas (Falklands) or Liechtenstein considering the share of organic farmland, Austria in still on top within 19.7% of all form land managed under organic regulations. 11
12 The share of organic agricultural land in relation to all Agricultural land was only 0.87% across the globe. (Certified) Organic Farming remains a very minor phenomenon yet, at least as facts & figures are concerned. Around the world, an average of 9.08 USD is estimated to have been spent on organic food in Organic Market increased by 9% in Europe Data compiled by the Research Institute of Organic Agriculture (FiBL) and the Agricultural Market Information Company (AMI) show that the organic market in Europe increased by nine percent in 2011 and it is now at 21.5 billion Euros. The Dutch and the Danes spent more than ten percent for organic food than in 2010 and Germany, the largest market, had a growth rate of nine percent. Germany showed retail sales of 6.59 billion Euros. France held second place with 3.76 Billion Euros, this market has shown a very dynamic growth in the past couple of years. In contrast, retail sales continued to fall in Ireland and decreased for the third consecutive year in the United Kingdom (1.88 billion Euros). Italy s organic market was estimated at 1.72 billion Euros and all expect it to supersede the United Kingdom in As in the past years, the highest market shares were reached in Denmark, Austria, and Switzerland. The highest per capita consumption of organic food in 2011 was in Switzerland (177 Euros), Denmark (162 Euros), Luxembourg (134 Euros) Austria (127 Euros), Sweden (94 Euros) and Germany (84 Euros). The average per capita consumption for all 39 countries for which data were available was 27 Euros. The European Union, with 9 percent growth and a market size of 19.7 billion Euros is the second largest market in the world after the United States, which showed a market growth of 9.4 percent in 2011 to a market size of 21 billion Euros. The comparison of the whole of Europe (21.5 billion Euros) and North America (22.9 billion Euros) shows that North America has the lead. It is interesting to note, that in the United States half of the turnover is made with fresh fruit and vegetables, but animal products are increasing in importance. Fruit and vegetables were also the pioneer organic products in Europe. They now have market shares between one third and one fifth of many
13 national markets. Animal products, especially milk and dairy products but also eggs, are achieving higher market shares in Europe than in the USA. Also dry products and bread have a higher importance in many European countries. More details on the importance of products and of product groups in the individual European markets have been compiled within the framework of a European research project (Organic Data Network) and the results of the detailed analysis are published in the European spring In 2012 many European countries experienced further dynamic growth, and growth rates were similar to those in 2011 (final figures are expected to be available in the first months of 2013). A preliminary analysis suggests that it is likely that the retail sales in France amounted to more than 4 billion Euros in 2012, and an increase of six percent was noted in the first six months of the year in the Netherlands and Italy. Consumer interest in organic products remains high in most major markets, even though organic products have to compete more and more with other sustainability and regional labels. In spite of the difficult economic climate in some European countries, in which market shares are still low, consumer concern about the way food is produced is increasing. (Courtesy to: DIANA SCHAACK, JULIA LERNOUD, SUSANNE PADEL, AND HELGA WILLER) FOCUSING ON JAPAN Along with India, Brazil, China & the USA, Japan is part of the global BIOFACH family. This year, we have seen Japanese organic producers in Hall 2 at stands and Organized by the Japan External Trade Organization (JETRO), no less than 14 Japanese exhibitors showed their products. These range from tea, sake, dressings to miso and an assortment of other products. There are presentations and front-cooking events on daily basis. At last year s BIOFACH JAPAN, there were 188 exhibitors, 21% of which came from abroad. 15,078 trade visitors sourced information at the oldest international BIOFACH fair. Among the innovations was an area devoted to organic products for Children, aptly titled, Organic is our future! In September 2013, the US & Japan announced a mutual agreement under which U.S. and Japanese organic standards were acknowledged as equivalent so that companies from either country would not need any re-certification anymore. 13
14 The organic sector BioFach will meet in Nürnberg next year from February 2015 featuring the Netherlands as Country of the year. Photo Gallery: Continued A view of Indian exporters having business discussions with international buyers of organic spices at Spices Board stall in BioFach 2014.
15 The trade visitors from Singapore discussing with Indian spices exporter in the Spices Board stall in BioFach 2014, Nuremberg, Germany. Spices Board s stall. Shri P.P. Kanel, Dy. Director and Dr. G. Lingappa, Asst. Director, Spices Board talking about various aspects of spices. 15
16 Mr. Avinash K. Srivastava, IAS, Addl. Secretary, Ministry of Agriculture, Govt. of India and Mr. Santosh Sarangi, IAS, Secretary, APEDA discussing about export prospects with the spices exporters at the Board s stall.
17 The spices buyers having business discussions at the Board s stall during Biofach 2014, Nuremberg, Germany. 17
18 The spices exporter with the importers of Germany busy with the business negotiation at the Board s stall during Biofach 2014, Nuremberg, Germany. A Buyer Seller Meet was organized on 14 th February 2014 at Indian pavilion in Biofach. Mr. Avinash K. Srivastava, IAS, Addl. Secretary, Ministry of Agriculture, Govt. of India addressing the BSM gathering. Mr. M. Sevala Naik, IFS, Consul General, Embassy of India, Munich, Germany, who also addressed the BSM seen in the right.
19 The Indian exporters and foreign buyers are seen discussing at the BSM with the Govt authorities at Biofach 2014, Germany. Some organic spices and spice products at Italy and Germany stalls displayed during Biofach 2014, Nuremberg, Germany 19
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24 Indian restaurant SANGAM at Nurnberg Central, Germany.
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