Global Organic Produce Marketing Dr. Ramu Govindasamy Professor and Chair Department of Agricultural, Food and Resource Economics, Rutgers University, New Jersey United States of America. Dr. Surendran Arumugam Postdoctoral Research Associate Department of Agricultural, Food and Resource Economics, Rutgers University, New Jersey United States of America. Dr. James E. Simon Distinguished Professor of Plant Biology, Department of Plant Biology & Plant Pathology Rutgers, the State University of New Jersey United States of America. Royal University of Agriculture Cambodia-March, 2016
INTRODUCTION
Organic Agriculture: Key Production Indicators - 2013 170 countries have data on organic agriculture Cambodia? 43.1 million hectares of agricultural land are organic (including conversion areas). 1 percent of the agricultural land is organic. 11 countries have more than 10 percent organic agricultural land. 2 million producers were reported, more than three quarters are in developing countries Source : www.fibl.org
Global Map-Organic Agriculture Area (Ha) Source : www.fibl.org
Source: FiBL-IFOAM Survey 2015, based on data from governments, the private sector and certifiers. Organic Agricultural Land and Other Areas 2013
Top Ten Countries With the Largest Areas of Organic Agricultural Land 2013 20 18 16 14 12 10 8 6 4 2 0 0.9 0.9 1.1 1.1 1.3 1.6 2.1 2.2 Canada Uruguay (2006) Million Hectare 3.2 17.2 Germany France Italy Spain China US (2011) Argentina Australia Source: FiBL-IFOAM Survey 2015
Countries With More than 10 Percent of Organic Agricultural Land Falkland Islands (Malvinas) Liechtenstein Austria Sweden Estonia Switzerland French Guiana Samoa (2012) Czech Republic Latvia Italy 20% 16% 16% 12% 12% 12% 11% 11% 10% 31% 36% 0% 10% 20% 30% 40% Source: FiBL IFOAM Survey 2015
50 45 40 35 30 25 20 15 10 Growth of the Organic Agricultural Land 1999 2013 Million Hectares 36 37.5 43.1 36.3 29.8 29 30.1 31.5 34.4 37.4 25.7 19.8 17.2 14.9 11 5 0 1998 2000 2002 2004 2006 2008 2010 2012 2014 Source: FiBL IFOAM SOEL Surveys 1999 2015
Source: FiBL-IFOAM Survey 2015 Top Ten Countries With the Highest Increases of Organic Land 2013 France Paraguay Canada Portugal Sudan Ukraine Italy Peru China Australia 27,815 33,775 35,355 73,381 86,634 120,550 149,815 190,611 194,000 Hectare 5,148,276 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000
Distribution of All Organic Areas in 2013 [CATEGO RY NAME] [VALUE] [CATEGO RY NAME] [VALUE] [CATEGO RY NAME][V ALUE] Source: FiBL IFOAM Survey 2015
Source: FiBL-IFOAM Survey 2015 Distribution of Global Use of Organic Agricultural Land in 2013 (Total: 43.1 Million Hectares) Perman ent crops, 7% Arable land, 18% No details, 10% Other Agril. Land, 2% Perman ent grasslan d, 63%
Distribution of Organic Wild Collection Areas by Region 2013 [CATE GORY NAME ], [VALU E]% [CATE GORY NAME ], [VALU E]% [CATE [CATE GORY GORY NAME NAME [CATE ], ],[VAL GORY [VALU UE]% NAME E]% ], [VALU E]% [CATE GORY NAME ], [VALU E]% The Ten Countries With the Largest Wild Collection Areas 2013 Morocco Turkey Tajikistan (2012) Romania Brazil (2012) China Namibia India Zambia (2012) Finland 0.82 0.96 1.06 1.08 1.21 1.44 2.4 Million Ha 5.18 6.1 9 0 10 Source: FiBL IFOAM Survey 2015
Source: FiBL-IFOAM Survey 2015 Distribution of Organic Permanent Cropland by Region 2013 Africa, 18% North [CATEGO America, RY 2% NAME],[V ALUE] Oceania, 2% Europe, 40% Latin America, 26%
Use of Permanent Cropland by Crop Group 2013 30% 25% 20% 25% 21% 15% 10% 5% 11% 11% 8% 7% 7% 3% 7% 0% Source: FiBL IFOAM survey 2015; in total for 42 countries data were available
Source: FiBL-IFOAM Survey 2015 Distribution of Organic Arable Cropland by Region 2013 (Total 7.7 Million Hectares) Latin America 3% Oceania 1% Africa 3% Asia 16% North America 17% Europe 60%
Source: FiBL-IFOAM Survey 2015 Use of Organic Arable Cropland by Crop Group 2013 Other Protein crops Vegetables Oilseeds 8% 4% 4% 10% Green fodder from arable land 31% Cereals 43% 0% 10% 20% 30% 40% 50%
Organic Export Values of Top Ten Countries 2013 Italy Netherlands Spain US France Mexico Canada China India Australia 400 393 373 370 365 291 248 590 783 1260 Million Euros 0 500 1000 1500 Source: FiBL IFOAM survey 2015; in total for 42 countries data were available
Top Ten Countries With the Largest Markets for Organic Food 2013 Sweden Austria Switzerland Italy United Kingdom Canada China France Germany United States of America 1018 1065 1668 2020 2065 2375 2430 4380 Retail sales in Million Euros 7500 24347 0 5000 10000 15000 20000 25000 30000 Source: FiBL IFOAM survey 2015; in total for 42 countries data were available
Source: FiBL-IFOAM Survey 2015 Top Ten Countries With the Largest Numbers of Organic Producers 2013 India Uganda (2012) Mexico Tanzania Ethiopia (2012) Turkey Peru Italy Spain Poland (2012) 189610 169703 148610 134626 65042 52284 45969 30502 25944 650000 Number of Producers 0 100000 200000 300000 400000 500000 600000 700000
UNITED STATES ORGANIC MARKET
US Organic Farming- An Overview Organic products are now available in nearly 20,000 natural food stores and nearly 3 out of 4 conventional grocery stores. Organic sales account for over 4 percent of total U.S. food sales, according to recent industry statistics. U.S. sales of organic products were an estimated $28.4 billion in 2012 over 4 percent of total food sales and will reach an estimated $35 billion in 2014 Source: USDA (2014).
U.S. Organic Food Sales by Category, 2005-14E
U.S. Organic Sales and Growth, 2004-2014 Source : USDA,ERS (2015)
Organic Acreage Vs Organic Food Sales 2003 to 2011 Source : USDA,ERS (2015)
USDA Certified Organic Operations Source : USDA,ERS (2015)
US Organic Exports 2013
US Organic Export Partners 2013
US Organic Imports 2013
US Organic Import Partners 2013
Cambodian Organic Agriculture
Cambodian Agriculture at a Glance-2013 China Agriculture GDP 37 percent and employed about 67 percent of the workforce in 2012. India 3.7 m.ha Cambodia Most of the Cambodian farmers are smallholders with less than 2 hectares per household. Sources: FAOSTAT (2014)
Cambodian Agriculture at a Glance-2013 The country s agricultural resources consist primarily of 3.7 million hectares of cultivated. Land - 75 percent is devoted to rice, and 25 percent to other food and industrial crops, primarily rubber. In 2013, Cambodia exported a record level of 1.2 million tones of rice, accounting for more than 3 percent of the total worldwide rice exports. Sources: FAOSTAT (2014)
Cambodian Agriculture at a Glance-2013 S.No Particulars 2012 1. GDP (current billion US$)* 14 2. GDP per capita (US$) * 944 3. Agricultural value added (% of GDP)* 36 4. Total population (thousand) 14 865 5. Rural population (% of total) 79.9 6. Agricultural labor force (% of total labor force) 65 7. Human Development Index ** 0.543 (ranking 138) 8. Per capita cultivated land (ha) 0.29 9. Total cultivated land (ha) 3.7 million 10. Area equipped for irrigation (ha) 354 000 (9.6%) 11. Value of total agriculture production (current million US$) 7 905 (2011) 12. Top 3 commodities available for consumption Rice, Maize, Pig meat Sources: FAOSTAT; *WB; **UNDP (2014)
Cambodian Agriculture at a Glance-2013 Particulars Top 3 Commodities Production quantity Rice paddy, Cassava, Maize (2012) Production value Rice paddy, Cassava, Meat indigenous (2012) Import quantity Food wastes, Veg prod for feed, Malt (2011) Import value Cigarettes, Food wastes, Veg prod for feed (2011) Export quantity Rubber, Sugar raw centrifugal, Palm oil (2011) Export value Rubber, Palm oil, Sugar raw centrifugal (2011) Import & Export Top 3 Trading Partners Import value Indonesia, Thailand, Viet Nam (2011) Export value Viet Nam, China, China Mainland (2011) Sources: FAOSTAT (2014)
Cambodia Top 10 Produce-2012 10000000 9000000 8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 Production (Int $1000) Production (MT) Sources: FAOSTAT (2014)
Cambodian Organic Agriculture at a Glance-2013 12000 10000 8000 Organic agricultural land (Ha) 9889 9055 8084 8285 6000 4000 2000 0 2010 2011 2012 2013 Source: FiBL-IFOAM Survey 2015
Source: FiBL-IFOAM Survey 2015 Cambodian Organic Agriculture at a Particulars Glance-2013 Land conversion of organic agriculture (2012/2013) Total Hectare Global share 835 9.2% Organic cereal area 2,964 0.1% Organic tropical and subtropical fruits 122 0.3% Organic vegetables 38 0.03%
Imported Vegetables and other Food to Cambodia Most come from Vietnam Pesticide residue is unknown Need for a market driven study Start with a demand study
CONSUMER SURVEY & DESCRIPTIVE STATISTICS
Consumer Survey Methodology 1097 mail surveys sent to NJ, NY, and PA consumers in 2000 606 completed surveys were returned 55% response rate ($1 incentive) Returned 55% Non- Response 45%
Consumer Descriptive Statistics Suppose your favorite fresh vegetable that you purchase regularly costs $1 per pound. Would you pay slightly more for organic certified produce? 35% 30% 25% 33% 20% 15% 10% 5% 25% 18% 11% 5% 8% 0% No 1-5 cents 6-10 cents 11-15 cents 16-20 cents More than 21 cents
Consumer Descriptive Statistics How do you think organically grown produce compares to conventionally grown produce in supermarkets and other retail facilities, in terms of prices? Unsure 22% Lower 1% Same 2% Higher 75%
SUMMARY
Summary Frequent buyers of organic produce Those who read labels Those who think country of origin is important Those who think absence of pesticide is important Those who say quality of produce is important Household with more than 3 members Female shoppers
Thank you. Questions...? For further information and suggestions contact Ramu Govindasamy at Govindasamy@aesop.rutgers.edu http://www.dafre.rutgers.edu/documents/ramu/agmkt.htm