INTRODUCTION AND SCOPE OF THE STUDY

During the second half of the 1990s, a strong and steady

growth in the sales of organic foods has provided these
products with a viable and sometimes value added market
niche. Changes in dietary habits among many segments of
the population of developed countries - resulting from
increased health awareness and the increasing demand for
a wider variety of products, including convenience food have contributed to this growth. Due to major food scares,
which hit many countries in western Europe in the late
1990s and early years of this century, consumers in general
have become more critical when purchasing food. Moreover,
they have become more demanding regarding information
on production and processing aspects (including tracability
of the product). The sales of organic horticultural products
have been expanding rapidly in many of the major organic
markets (e.g. the United States, countries in the European
Community and Japan). However, the market share of
organic products in total food sales is still small, with shares
ranging between one and three percent.
The economies of many developing countries are
dependent on the export of a relatively small number of
(mostly agricultural) commodities. Several of these
commodities (e.g. bananas and sugar) are likely to face
further market liberalization pressure in the near future. As a
result, diversification of agricultural production is more than
ever of utmost importance. Diversification towards highvalue crops can help to reduce the vulnerability of many
agricultural producers in those countries, especially for
resource poor and small scale farmers.

Despite ongoing conversion towards more sustainable

farming methods in developed countries and government
support to further boost organic production, consumption of
organic foods is expected to continue to outgrow domestic
production in developed countries, leaving room for
significant organic imports, at least in the short- to mediumterm and probably beyond. Moreover, tropical and offseason products will continue to provide an attractive
potential for which many developing countries have
comparative advantages.
Customs and regulatory authorities have not made a
distinction between organic and conventional food products,
resulting in a lack of reliable information on organic
horticultural market development and internationally traded
volumes. Decision-makers in the public and private sector in
developing countries therefore lack the necessary
information on which decisions should be taken concerning
conversion towards organic production. The development of
demand for organic products, the type of products and
anticipated prices are key issues when deciding on
conversion.
This publication aims at contributing to filling that information
gap. It provides detailed information on organic horticultural
market development and global trade in fresh organic fruit
and vegetables. The study gives quantitative and qualitative
information on the demand in the main developed markets,
organic production and import figures. Moreover, it provides
case studies of seven developing countries which have
established an organic export sector or have the potential to
do so. These case studies may provide useful insights on

how to establish a successful organic export sector, and

also discuss possible difficulties that need to be tackled.
Scope of the study
This study focuses on fresh certified organic fruit and
vegetables (both temperate and tropical). For some
countries where other organic products (e.g. processed and
frozen vegetables) are of significant importance, short
sections on these products are included.
Market analysis has been carried out in the following
developed markets: Austria, Belgium, Denmark, France,
Germany, Italy, Japan, the Netherlands, Sweden,
Switzerland, the United Kingdom and the United States of
America. Case studies on the (potential) organic export
sector in developing countries include: Argentina,
Cameroon, Chile, the Dominican Republic, Madagascar,
Papua New Guinea and Zambia.
Objective of the study
The main objective of the study is to support developing
countries in their efforts to diversify exports through
environmentally sound agricultural production methods. The
study aims to help key players in the private and public
sector in developing countries to make informed decisions
on whether to develop exports of organic horticultural
products. Moreover, it provides a source of information on
the latest market developments and trends that can be
useful for a number of individuals and organizations,
including importers and retailers, in developed countries. It
covers the main issues related to production and marketing

of organic horticultural products, including market outlets,

logistics, certification and standards.
The specific aims of the study are to:
Analyze the current situation of demand and supply
of fresh organic horticultural products in the main
importing countries and selected producing
countries;
Provide estimates for further organic market
development in the short to medium term;
Identify
market
opportunities
for
organic
horticultural products in developed and developing
countries;
Identify the constraints to be overcome by
developing countries in order to successfully
produce and export organic horticultural products;
and
Define strategy options for the development of the
export organic horticultural sector.
Methodology
Organic products are currently not classified separately
under the Standard International Trade Classification (SITC)
and the Harmonized Commodity Description and Coding
System (HS). Both systems group organic products together
with conventional products. It is therefore not possible to

analyze international trade in organic products using the

data provided under these systems.
For this study the following approach was adopted. First,
relevant literature, publications and studies were reviewed in
order to get in-depth information on organic trade in general
and organic horticultural trade in particular. Also country
specific information on the organic horticultural sector was
reviewed. Second, key players of the organic sector in the
studied countries were surveyed through a combination of
questionnaires, telephone interviews and face-to-face
discussions. Key players include market operators,
importers and retailers, among many others. The willingness
to respond to the questionnaire and telephone interviews
and to provide quantitative information on traded volumes
and values, for example, differed significantly between the
contacted persons. Finally, the information obtained from
market operators was analyzed and processed, and
checked against information obtained from literature and
other sources.
Remarks
The reader should keep in mind that the data provided in
this publication are estimates, based on information
obtained from market sources. The data on prices and price
premiums over conventional products should especially be
treated with caution. Prices may vary significantly over time,
particularly in the case of fresh fruit and vegetables.
Therefore, the basic data needed to make reliable
projections on market developments and future prices are
lacking. Any exporter preparing a business plan should seek
more up to date information on prices by contacting

importers and other trade and industry sources in the

targeted market.