Publication #HS977
World Markets for Organic Fruits and Vegetables1
- Findings and Identified Opportunities for Developing Countries
- Requirements for Producing and Exporting Organic Produce to Major Markets
- Main Markets for Organic Fruit and Vegetables in Developed Countries (each country report is 20-30 pages): Austria, Belgium, Denmark, France, Germany, Italy, Japan, The Netherlands, Sweden, Switzerland, United Kingdom, United States
- Case Studies of Countries Producing and Exporting Organic Fruits and Vegetables (each country report is 20-30 pages): Argentina, Cameroon, Chile, Dominican Republic, Madagascar, Papua New Guinea, Zambia
FAO Assistance to Developing Countries in Organic Agriculture
Within each of these above market and case studies, topics covered include:- organic production figures
- government policy
- marketing and sales data
- premiums for organic products
- distribution channels
- trends and attitudes
- market growth
- constraints to market development
- market access
- import data
- major suppliers and products
- market characteristics
- strategies and recommendations for export development
- references
- listings of importers
- organic farmer organizations
- organic certification bodies
- trade and governmental organizations
- The Potential Contribution of Organic Agriculture to Sustainability
- Markets for Organic and Fair Trade Bananas
- A Socio-Ecological Analysis of Opportunities and Constraints of Organic Agriculture
- Food Safety and Quality of Organic Products
- Factors Influencing Organic Agriculture Policies, Especially in Developing Countries
- Spices and Medicinals as Bioactive Protectants for Grains
- Cost-Benefit Analysis of Organic Versus Conventional Production
- Organic Pastures and Feed
- Processing of Organic Fruits and Vegetables
Opportunities for Developed Countries
The USA had the highest level of organic food sales in 2000, followed by Germany, the United Kingdom (primarily England, Scotland, Wales, and Northern Ireland) and Italy. Belgium, Austria, and Sweden had the lowest sales. Organic fruits and vegetables had a higher proportional share of the total fruit and vegetable market than organic crops generally had of the overall food market. Organic fruit sales were estimated at 3-5 percent of total market share in developed countries but vegetable sales were greater than 10 percent of overall vegetable sales in countries like the UK and Switzerland. Denmark had perhaps the highest organic share (2.5 - 3%) of a domestic food market, followed by Switzerland, Austria, Germany and the USA. When only fruit and vegetable sales are considered, the United Kingdom, Austria, and Switzerland led other developed countries with the highest percentage of organic fruits and vegetables consumed in terms of total consumption of these commodities (Table 1).Sales of organic fruits and vegetables increased 20-30% annually during the 1990s, especially in countries like Italy where mad cow disease was detected in 2001, triggering a surge in overall fruit and vegetable sales and a greater than 85% increase in organic produce, generally. On the other hand, sales in Austria and Denmark, with well established organic markets and organic market share, showed little if any growth. Supermarkets were the fastest growing organic sales outlet in most countries studied in 2000 but their marketing position varied in different countries, with approximately 70 percent of all organic sales in the UK, Switzerland and Denmark handled by supermarkets but only 20 to 30 percent handled by supermarkets in Germany, the Netherlands, Austria, and France. The authors of this study note that although the European Union (EU) has been integrating markets and organic regulations, a uniform EU market for organic fruits and vegetables has not been clearly defined. Potential exporters to these markets should therefore pay careful attention to market differences, trends, consumer profiles, and distribution channels in targeted market countries.Organic Production in Developed Countries
Among developed countries, Italy had the greatest area in current organic production, with 2,570,772 acres, followed by the USA with 1,368,934 acres (Table 2). According to this report, southern Argentina has huge production potential with an estimated 3 million hectares (7,413,000 acres), already certified organic. However, 99 percent of this acreage is cattle pasture and some land is not in production at all. Wheat, sugar cane, fruits and vegetables are produced on the remaining 1 percent, about 60,000 acres. Other estimates of world wide organic acreage should also be examined carefully in assessing production potential. For example, Table 3, from an online publication by the International Federation of Organic Agriculture Movements, lists almost 22 million hectares (54,362,000 acres) under organic management in 2002, including 10.5 million hectares (26 million acres) in Australia and 3.2 million hectares (7,907,200 acres) in Argentina. Extensive grazing land in these countries, especially under dry land conditions, can support large livestock operations but may not be suitable for horticultural crop production. Uncultivated woodlands and other wild areas from which wild plants are harvested are also included in estimates of organic acreage.The USDA formalized National Organic Standards in 2003, partially subsidizes organic certification costs, and sponsors sustainable and organic farming research. However, the authors of this FAO report indicated that most countries in western Europe have stronger, more specific governmental policy and financial support to encourage growers to convert to organic farming, with some countries targeting as much as a 10 percent of all farmland for organic production by 2010. Demand for fresh organic produce is expected to exceed supply in developed countries, but already established consumer preferences may limit the growth of imported organic produce. For example, in virtually all countries surveyed, consumers distrusted the authenticity of imported organic produce. In Switzerland the domestic organic label, Bio Suisse, actually prohibits air transport of organic products. Austrians prefer domestic produce bought at the farm and tend to purchase imported organic produce only during the off season when local produce may not be available. Surveys in Denmark indicate that consumer confidence in imported organic produce decreased with geographical distance from Denmark. In the USA and Japan, consumers prefer locally grown produce. However in some countries like the UK and Belgium where domestic production can not match demand, consumers do not readily discriminate between domestic and imported produce. Clearly, those countries exporting organic produce to developed countries must gain buyers' confidence by working closely with organic importers, wholesalers, and retailers, even by using the domestic organic label, if possible, to encourage consumer acceptance. Some marketing trends observed in the survey included small supermarkets that sell only organic produce; biodegradable packaging; convenience organic foods like pre-packaged salads; internet sales; organic food sales through public canteens, and catering.Complete farm gate, fob3, and retail prices are generally not available partially because traders who dominate markets may consider this proprietary information. However, as markets become more competitive and transparent, pricing information may become more available and the differential between organic and conventional produce may decrease, depending on supply and demand. Produce prices vary widely over time and by location, with organic produce sometimes selling between 20 to 40 percent higher than conventional produce. Lacking a complete price series, potential producers and exporters of organic fruits and vegetables should cautiously examine potential future market supply and demand and consider near term organic fresh and processed fruit and vegetable production capacity of countries like Argentina and Brazil. Developing Countries
Domestic production of organic produce in developing countries is expected to increase but may not be able to supply local or regional demand, with the best export market opportunities in off-season fresh temperate-zone produce and non-temperate zone produce. Countries with Mediterranean climates like Italy, Spain, Israel, Morocco, and Egypt will have a geographical and in-house EU advantage in supplying EU temperate zone countries with tropical and subtropical produce compared with non-EU producers like the USA, except for off-season produce. Developing countries may also have to develop competitive producer and fob prices and a greener fresh produce export image while continuing to improve crop quality, phytosanitary and organic standards, post-harvest handling procedures, and importer/marketer/trade relations. With supermarkets being the fastest growing sales outlet for organic produce in developed countries, organic producers in developing countries may have to adapt to the purchasing strategies and standards of buyer-driven global commodity chains, including requirements for continual supplies, price, quality, delivery, food safety, and related issues. Related Topics
Other related FAO publications on the following topics can be accessed at http://www.fao.org/organicag/faodoc-e.htm.World Markets for Organic Citrus and Citrus Juices: Current Market Situation and Medium -Term Prospects (May, 2003)Economic and Financial Comparison of Organic and Conventional Citrus Growing [in Spain] (November, 2001)Handling and Processing of Organic Fruits and Vegetables in Developing Countries (September, 2002)The International Federation of Organic Agriculture MovementsThe World of Organic Agriculture 2003 - Statistics and Future Prospects http://www.soel.de/inhalte/publikationen/s/s_74.pdfTables
Table 1. Value and shares of international organic markets in 2000 (average 2000 exchange rates). Missing data were not available.
Country |
Estimated value of total organic sales ($ million) |
Estimated share of organic in total food sales (%) |
Value of organic fruit and vegetable sales ($ million) |
Estimated share of organic in total fruit (F) and Vegetable (V) sales (%) |
Austria |
195 |
1.8 |
29 |
3 F and 5V |
Belgium |
138 |
1 |
34 |
- |
Denmark |
372 |
2.5 - 3.0 |
- |
- |
France |
846 |
1 |
169 |
- |
Germany |
2 ,128 |
1.25 - 1.5 |
378 |
2.6 |
Italy |
978 |
1 |
264 |
2 |
Japan |
350 |
- |
- |
- |
Netherlands |
210 |
1.2 |
- |
- |
Sweden |
175 |
0.9 |
31 |
1.7 |
Switzerland |
457 |
2 |
- |
5F and 10V |
United Kingdom |
986 |
1 |
300 |
5-10 |
USA |
8,000 |
1.5 |
1, 450 |
- |
| Source: World Markets for Organic Fruit and Vegetables at http://www.fao.org/DOCREP/004/Y1669E/Y1669E00.HTM |
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Table 2. Organic area under production in 2000.
Country |
Area |
Percent of total production area |
Organic fruit and vegetable production area |
||
ha |
acres |
ha |
acres |
||
| Austria |
272,000 |
672,112 |
|||
| Belgium |
20,663 |
51,058 |
0.9 |
612 |
1,512 |
| Denmark |
165,258 |
408,353 |
6.2 |
1,912 |
4,725 |
| France |
371,000 |
916,741 |
1.3 |
27,945 |
69,052 |
| Germany |
546,023 |
1,349,223 |
3.2 |
7,118 |
17,584 |
| Italy |
1,040,377 |
2,570,772 |
- |
- |
- |
| Japan |
1,000 |
2,471 |
0.02 |
- |
- |
| Netherlands |
27,820 |
68,743 |
1.4 |
2,100 |
5,189 |
| Sweden |
139,000 |
343,469 |
5.1 |
2,300 |
5,683 |
| Switzerland |
95,000 |
234,745 |
9.0 |
1,238 |
3,059 |
| United Kingdom |
472,500 |
1,167,548 |
2.5 |
3,000 |
7,143 |
| USA |
544,000 |
1,368,934 |
0.2 |
41,266 |
101,968 |
| Source: World Markets for Organic Fruit and Vegetables at http://www.fao.org/DOCREP/004/Y1669E/Y1669E00.HTM |
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Table 3. Land area under organic management (SOEL-Survey, February 2003).
| Country |
Organic Hectares |
Organic Acres |
| Argentina |
3,192,000 |
7,887,432 |
| Australia |
10,500,000 |
25,945,500 |
| Austria |
285,500 |
705,470 |
| Azerbaijan |
2,500 |
6,177 |
| Belgium |
22,410 |
55,375 |
| Belize |
1,810 |
4,472 |
| Benin |
81 |
200 |
| Bolivia |
19,634 |
48,515 |
| Brazil |
275,576 |
680,948 |
| Bulgaria |
500 |
1,235 |
| Cameroon |
2,500 |
6,177 |
| Canada |
430,600 |
1,064,012 |
| Chile |
273,000 |
674,583 |
| China |
301,295 |
744,490 |
| Colombia |
30,000 |
74,130 |
| Costa Rica |
8,974 |
22,174 |
| Croatia |
120 |
296 |
| Cuba |
8,495 |
20,991 |
| Cyprus |
52 |
128 |
| Czech Republic |
218,114 |
538,959 |
| Denmark |
174,600 |
431,436 |
| Dominican Republic |
14,963 |
36,973 |
| Ecuador |
60,000 |
148,260 |
| Egypt |
15,000 |
37,065 |
| El Salvador |
4,900 |
12,107 |
| Estland |
20,141 |
49,768 |
| Fiji |
200 |
494 |
| Finland |
147,943 |
365,567 |
| France |
419,750 |
1,037,202 |
| Germany |
632,165 |
1,562,079 |
| Ghana |
5,453 |
13,474 |
| Greece |
31,118 |
76,892 |
| Guatemala |
14,746 |
36,437 |
| Guyana |
425 |
1,050 |
| Honduras |
1,769 |
4,371 |
| Hungary |
105,000 |
259,455 |
| Iceland |
5,466 |
13,056 |
| India |
41,000 |
101,311 |
| Indonesia |
40,000 |
98,840 |
| Ireland |
30,070 |
74,302 |
| Israel |
7,000 |
17,297 |
| Italy |
1,230,000 |
3,039,330 |
| Jamaica |
205 |
506 |
| Japan |
5,083 |
12,560 |
| Kenya |
494 |
1,220 |
| Laos |
150 |
370 |
| Latvia |
20,000 |
49,420 |
| Lebanon |
250 |
617 |
| Liechtenstein |
690 |
1,704 |
| Lithuania |
6,769 |
16,726 |
| Luxembourg |
2,141 |
5,290 |
| Madagascar |
1,230 |
3,039 |
| Malawi |
298 |
736 |
| Malaysia |
131 |
323 |
| Mauritius |
175 |
432 |
| Mexico |
143,154 |
353,733 |
| Morocco |
11,956 |
29,543 |
| Nepal |
45 |
111 |
| Netherlands |
38,000 |
93,898 |
| New Zealand |
63,438 |
156,755 |
| Nicaragua |
7,000 |
17,297 |
| Norway |
26,673 |
65,908 |
| Pakistan |
2,009 |
4,964 |
| Panama |
5,111 |
12,629 |
| Papua New Guinea |
4,265 |
10,538 |
| Paraguay |
61,566 |
152,129 |
| Peru |
84,908 |
209,807 |
| Philippines |
2,000 |
4,942 |
| Poland |
44,886 |
110,913 |
| Portugal |
70,857 |
175,087 |
| Republic of Korea |
902 |
2,228 |
| Romania |
18,690 |
46,182 |
| Russia |
5,276 |
13,036 |
| Senegal |
2,500 |
6,177 |
| Slovakia |
58,706 |
145,062 |
| Slovenia |
5,280 |
13,046 |
| South Africa |
45,000 |
111,195 |
| Spain |
485,079 |
1,198,630 |
| Sri Lanka |
15,125 |
37,596 |
| Suriname |
250 |
617 |
| Sweden |
193,611 |
478,412 |
| Switzerland |
102,999 |
254,510 |
| Syria |
74 |
182 |
| Tanzania |
5,155 |
12,738 |
| Thailand |
3,429 |
8,473 |
| Tunisia |
18,255 |
45,108 |
| Turkey |
57,001 |
140,849 |
| Uganda |
122,000 |
301,462 |
| Ukraine |
164,449 |
406,353 |
| United Kingdom |
679,631 |
1,679,369 |
| Uruguay |
678,481 |
1,676,526 |
| USA |
950,000 |
2,347,450 |
| Vietnam |
2 |
5 |
| Yugoslavia |
15,200 |
37,559 |
| Zambia |
5,688 |
14,055 |
| Zimbabwe |
40 |
98 |
| SUM |
22,811,267 |
56,366,640 |
| The World of Organic Agriculture 2003 - Statistics and Future Prospects http://www.soel.de/inhalte/publikationen/s/s_74.pdf |
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Footnotes
1. This document is HS977, one of a series of the Horticultural Sciences Department, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida. Publication date: May 2004. Please visit the EDIS Web site at http://edis.ifas.ufl.edu.
2. James J. Ferguson, professor, Horticultural Sciences Department, Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, 32611. 3. F.O.B. (Free on Board) - The prices of goods on board the specified vessel at the specified port of shipment. If you have quoted F.O.B. prices, you are responsible for the shipment until it is loaded on board.The Institute of Food and Agricultural Sciences (IFAS) is an Equal
Opportunity Institution authorized to provide research, educational
information and other services only to individuals and institutions
that function with non-discrimination with respect to race, creed,
color, religion, age, disability, sex, sexual orientation, marital
status, national origin, political opinions or affiliations.
For more information on obtaining other extension publications,
contact your county Cooperative Extension service.
U.S. Department of Agriculture, Cooperative Extension Service,
University of Florida, IFAS, Florida A. & M. University Cooperative
Extension Program, and Boards of County Commissioners Cooperating. Larry Arrington, Dean.
