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Global market
Market expansion for organic foods depends on the outcome of a number of evolving issues like organic
price premiums, the price-quality trade off, country of product origin, genetically engineered content, and
integration of social goals into the production process. In the past five years, expanding global markets for
organic foods have seen annual growth rates of 15 to 30 % in Europe, the United States, and Japan. Over
20 to 30 % of consumers surveyed across Europe, North America, and Japan claim to purchase organic
foods regularly. The worldwide market for organic foods is estimated at about US $ 17.5 billion, with the US
accounting for about $8 billion. The European organic market is estimated at $5.255 billion, while the
Japanese organic market is estimated at $2.5 billion.
According to ITC projections, the organic market size in 2010 is estimated at $ 46 billion in the EU, $45
billion in US and $11 billion in Japan. The exchange of organic products internationally is increasing
dramatically. Markets are evolving to demand highly processed organic products as well as raw
commodities. In Europe, markets are expanding for ready-to-eat meals, frozen foods, baby food, snacks,
and beverages. Organic food processing ingredients include juices, fruit powders, dried fruit, meat,
flavorings, essential oils, herbs and spices, and nuts. Sample trade flows into Europe are from Israel (fresh
produce), Brazil-Chile-Argentina (fresh produce, soy, and wheat), other European countries (baby food,
processed foods, cereals, and meat), Canada (wheat, soy, and canola), Mexico-Central America (bananas,
citrus, and coffee, cocoa), Sri Lanka-India (tea), and the United States (processed foods of all types, wheat).
With the change in dietary need and enhanced income coupled with awareness for health there is a growing
appreciation for organic products. Many of the hotels consume green food grown under the contracts.
Organically labeled fruits and vegetables are also appearing on some of markets. Since India has much
larger area, which have used minimal pesticides and chemical where potential for conversion exist, organic
movement has taken a root in many of the states and there is growing demand especially in cities and
market is expected to grow more than 20 per cent annually. It is envisaged that 20 per cent of production
shall be organic in 5 years.
The major organic products for which a growing demand is anticipated would be tea, spices and bananas.
Over the past decade the production of organic food in India has grown rapidly to meet demand.
Globally, an awareness of the health benefits of organically produced food, and knowledge of the
terrible damage done to the environment by conventional, intensive farming methods, has
created a huge demand for organic produce.
In 2005, $26 billion was spent around the world on organic foods and that figure has been rising
ever since. By the year 2020, it is estimated that the organic food market will be at least a $102
billion industry. The production of organic food in India seems set to benefit from this explosion of
demand.
The large amount of farm land available has created a substantial market for organic exports. The
country has more than 77,000 hectares dedicated to certified organic farming in India and up to
70% of the 120,000 tons of organic products grown there are exported each year.
In 2005, only 1% of the Indian population actually consumed the organic food produced in their
own country, primarily because the products were too expensive for the average person, costing
as much as 30% more than the same non-organic food.
High prices were mainly due to the process of becoming a certified organic farm. This can be very
costly as years must pass for intensively farmed land to convert to organic. The fact that more
human labour is required in order to provide soil with the care of cultivation it needs to produce
quality organic produce, also played a part.
Of course, the fact that the rest of the world is willing to pay these high prices for the benefits of
organically grown merchandise also plays a role in setting the average price paid by Indian
consumers – the price charged by mainstream, commercial outlets that is.
However, as organic farming in India has expanded and become established, the costs have
been coming down and many more Indian people are now, thankfully, able to afford them. Be
inspired by this movie of Organic India members visiting an organic farm!
If you played the inspirational video above, you will have become aware of the company, Organic
India. In the mid to late 1990’s, it was the founders of this company that introduced organic
farming methods to a small group of Indian farmers.
These farmers, along with many others, had been watching the health of their land decline
through the use of toxic, synthetic chemical pesticides, fertilizers, herbicides and fungicides. The
wildlife adjacent to their farms was also suffering as natural habitats were destroyed by
conventional, industrial farming techniques for obtaining more crops, more quickly.
As a result of these first steps taken by Organic India and the farmers with whom it worked,
organic farming took off in India. Revenue generated by exports are bringing a better quality of
life to organic farmers, their workers and families. Farming organically is bringing fantastic
benefits in health to the environment and to those who consume the foods it produces.
Now, there are at least 15,000 certified organic farms in India and that number is growing rapidly.
There are just as many small farmers using the same organic practices to grow their foods.
As the domestic demand for organic food in India continues to grow , more stores and markets
are carrying both certified and uncertified foods that claim to be organic. While organic exports
must be certified, there are no laws in effect as of yet to control natural foods sold domestically.
A lack of knowledge among the general population and the absence of an organized system to
regulate the sale of organic products create a great deal of confusion regarding the difference
between natural and organic foods sold within India.
However, organic markets are becoming increasingly common throughout the country and this
helps community members find foods that are truly organic, being produced at the many known
and trusted small local farms that do not seek certification for whatever reason.
The first organic food store in India opened in 1997, before the heightened interest in
domestically grown organics. Greenway still supplies the residents of Mumbai with affordable
organic products from about 20 local farms that use chemical free, organic cultivation.
Conscious Foods was started two years later, also supplied by small local farmers, and today
there are organic grocers, organic markets, and even organic restaurants in every major city in
India.
The market for organic food in India has seen tremendous growth over the past decade. India is
quickly becoming an organic centre for all types of crops and is making terrific progress towards
supplying their own residents with the high quality and healthy benefits of organic food.
How about growing your own organic produce? Our organic vegetable gardening guide shows
you how to do so. You don't need a big garden and you don't even need soil. With just a few feet
of land you can grow an abundance of quality organic vegetables. Click on organic vegetable
gardening to learn how.
Care and maintenance of soil, and preventive farming methods like crop rotation create fruits and
vegetables that contain up to 50% more vitamins, minerals, and other nutrients than intensively
farmed foods.
Organic foods have higher levels of many disease-fighting antioxidants and essential vitamins,
including Vitamin C. Read more on the nutritional benefits of organic food.
Industrial pesticides and fertilizers used in intensive farming contain synthetic, toxic chemicals,
residues of which remain in the food they are involved in producing.
Organic farming uses natural, synthetic chemical-free methods that produce foods much safer for
humans, as well as animals that consume them.
Such chemicals are responsible for a number of common allergies and have also been linked to
serious diseases like cancer and Alzheimer’s Disease. An organic diet significantly lowers these
risks. Read more about the dangers of pesticides in food.
One of the major advantages of organic food is the fact that it is not genetically modified. Very
little data actually exists regarding the safety of genetic modification and there are grave concerns
that the negative effects are being ignored because of the huge profits these controversial
production methods generate.
Research has been carried out into the dangers of GM and have found plenty of cause for
concern. Read more about Genetically Modified Foods.
The advantages of organic food and farming reach far beyond our own health and well-being.
Organic food is safer for the entire planet. The procedures and methods used in organic farming
protect the structure and the nutrient content of the soil and preserve its worth over time.
Organic farming practices also conserve valuable natural resources by requiring less water as
well as less energy. Read more about Environmental Health.
The organic system for meat production is safer and more humane for livestock than industrial
farming methods. Instead of spending their lives in dirty, cramped cages, animals raised for
organic food enjoy fresh air and open space.
The routine use of antibiotics is prohibited as a purely preventative measure, the use of growth
hormones is prohibited outright, and the animals are fed an organic diet to ensure a happy,
healthy life. Slaughter is also far more humane. Read more about meat farming
Organic farming is also beneficial to wildlife, unlike commercial methods of food production. The
synthetic, toxic chemicals used in commercial farming can be deadly to birds and other wild
animals that depend on the land for food.
Traces of chemicals left behind on seeds and berries can have a tremendous impact on the
health and safety of all life-forms that come into contact with them.
Industrial farming also destroys natural habitats by cutting down hedgerows and trees in order to
take more and more land for growing, and to make these areas easier to farm.
In the process, animals, insects and even micro-organisms are displaced from their natural and
rightful place in the environment, as local eco-systems are ravaged. Read more about Wildlife
and Farming.
Organic foods are defined as those that are produced without the
use of chemicals, including pesticides and fertilizers commonly
used in cultivation and drugs, such as antibiotics and hormones
given to commercial livestock.
Further, foods are held to be organic when the methods of production encourage environmental
health and avoid environmentally damaging and destructive actions.
Before there was a globally accepted definition of organic food, small farms around the world
were using natural, organic farming methods to grow the best crops and to protect their most
valuable resource, the land they use for cultivation. Many locally owned stores and farmers’
markets have always provided a wonderful selection of fresh organic produce.
By 1990, the demand for organic food was growing rapidly and soon became too great for these
small suppliers to meet. As larger farms began to produce foods considered organic and the
overall number of organic farms steadily increased, a need for uniform standards arose.
Today, most countries have a certification procedure for organic foods to ensure that those
standards are met.
About a decade ago, organic food was limited to fruits and vegetables. Today it’s possible to
enjoy a completely organic diet without missing your favourite foods.
Organic pasta and cereals are quite common. Meats and dairy products, including milk and eggs,
are produced organically as well. You can even find frozen and canned organic foods, organic ice
cream, cookies and cakes, and organic beer.
Certification for organic food producers has been made available in a number of countries and is
required before a product can be marketed as organic.
Foods that are certified organic have been grown, handled, and produced according to the
guidelines in place and the farm has satisfied all the requirements set by the particular country
they are certified through.
Products are labelled with the certifiers logo and code to confirm certification for the consumer.
Both arable crops and livestock must meet stringent guidelines to be considered organic. Organic
production is an intricate system that strives to maintain balance within nature by preventive
practices that protect the environment and minimize the negative impact farming can have on
natural resources.
Organic crops typically begin with organic seeds and are cultivated without the use of synthetic
chemical inputs.
Genetic engineering, irradiation, and other questionable practices are prohibited in organic
farming. During processing, additives, preservatives, and other unnatural substances are also not
permitted.
Livestock raised for organic production live stress-free lives in open spaces. Preventive care
keeps these animals healthy, rather than routine use of antibiotics, while organic feed ensures
that there are no dangers of synthetic chemical residues.
Organic farming and production have seen many changes in recent years, not to mention
exponential growth. Organizations have been created in several countries around the world to
regulate and oversee these processes, so that shoppers can buy organic with confidence.
While the regulations, standards, and certifications associated with organic foods may be new,
the enthusiast's definition of organic food remains the same - a product grown naturally and that
benefits us, the planet and all living things on it.