Status of Organic Agriculture in the

Philippines

GILBERTO F. LAYESE
Director, BAFPS
 Definition of Organic
Agriculture

 Organic agriculture is an agricultural

production system that promotes
environmentally, socially and economically
sound production of food and fibers, and
excludes the use of synthetically compounded
fertilizers, pesticides, growth regulators,
livestock feed and additives and genetically
modified organisms. (IFOAM)
 Principles of Organic
Agriculture
 The Principle of Health - Organic Agriculture should sustain and enhance
the health of soil, plant, animal and human as one and indivisible.
 The Principle of Ecology - Organic Agriculture should be based on living
ecological systems and cycles, work with them, emulate them and help
sustain them.
 The Principle of Fairness - Organic Agriculture should build on
relationships that ensure fairness with regard to the common environment
and life opportunities.
 The Principle of Care - Organic Agriculture should be managed in a
precautionary and responsible manner to protect the health and well being
of current and future generations and the environment.
 Why Go Organic Agriculture?

 Increasing cost of chemical based inputs

 Increasing resistance of pest and diseases
 Decreasing farm income
 Declining soil fertility
 Ground water contamination
 Health
 Some facts on Organic
Marketing Worldwide (ITC, 2002)

 56 percent of US citizens believe organic foods are

healthier;
 US$2.2 billion sale values of organic fruits and vegetables
in the US;
 60% of Danes often buy organic vegetables and milk;
 6% market share for organic food in Denmark
 “Number one” teas in Egypt are organic teas from SEKEM
 30% of the daily bread in and around Munich/Germany is
organic
 80-90% percent market share for organic baby food in
Germany
 Overview of World Markets for
Organic food and beverages
Markets Retail Sales % of total Annual Retail Sales
2003 food sales Growth % 2005 (M
(M US$/€) 2003- US$/€)
2005
U.S.A. 11,000 – 2.0 – 2.5 15 - 20 -
13,000
Europe 10,000 – - - -
11,000
Canada 850 – 1,000 1.5 – 2.0 10 - 20 -

Japan 350 - 450 < 0.5 - -

Oceania 75 - 100 <0.5 - -

TOTAL 23,000- - - 29,000-

25,000 31,000
Organic Agriculture in Asia
 Organic Agriculture in the
Philippines
 Best described at its emergent or infancy stage (Briones et.al., N.D;
FAS/USDA, 2000)

 Its production is limited through steadily growing at 10-20% annually.

(FAS/USDA 2000)
 2003 – a total of 2,000 hectares is devoted to organic production (Yuseffi
and Willer, 2003)
 2004 – 3,500 hectares is devoted to organic production (IFOAM Statistics
2004)
 2005 – based on the Organic Agriculture conference last April 2005
Organic production is being practiced in 23 provinces in the country (9 in
Luzon, 5 in Visayas and 9 in Mindanao).
 Commonly grown organic crop is rice, vegetables, fruits, herbs and spices
for domestic consumption while muscovado sugar, fresh bananas, banana
chips and coconut oil are for export.
 Success factors (IFOAM, 2003)

 Strong consumer demand

 High degree of support from food firms
 Sales through “conventional”
supermarkets
 Moderate (<50%) price premium
 ONE organic label
 Professional promotion
 Marketing of Organic Products

 Niche market? NO MORE

 Though its true that it started as a niche
marketing activity (weekend markets frequented
by upper middle class and elite shoppers), now
organic products can be seen in supermarkets
like SM. SHOPEWISE and LANDMARK
(where middle class income earners shop)
 Pricing and Value of Organic
Products

 Organic Products command premium price ,

it ranges fro 20-50% higher than non-
organic products (Yussefi and Willer 2003)
 The value of domestic organic industry is
estimated at 100 million pesos and imports of
processed organic food products at another
150 million pesos (FAS/USDA, 2000)
 Government Initiatives

 Philippine National Standard for Organic Agriculture and

Processing (PNS/BAFPS 07:2003 ICS.65.020)
 Administrative Order 13 series of 2003 – accreditation of
certifying bodies
 Administrative Order 1 series of 2004 - Phil. National
Organic Agriculture Board
 4 house bills in Congress authored by; Rep. Barinaga, Rep.
Cajes, Rep. Syjuco and Rep. Zubiri.
 4 senate bills authored by; Sen. Osmeña, Sen. Magsaysay,
Sen. Villar and Sen. Estrada
 Executive Order for Organic Agriculture in process
 Executive Order on Organic
Agriculture
 (a) promote Organic Agriculture as a farming scheme especially in

rural farming communities;

 (b)forge effective networking and collaboration with the
stakeholders involved in the production, handling, processing
and marketing of organic agriculture products;
 (c) guarantee food safety and environmental safety by means of
an ecological approach to farming;
 (d) ensure the integrity of organic products through the approved
organic certification procedures and organic production,
handling and processing standards;
 The National Organic
Agriculture Program (NOAP)
The Department of Agriculture (DA) National
Organic Agriculture Program shall focus on,
but not be limited to:
 Regulations and Guidelines
 Certification and Accreditation
 Market Promotion and Networking
 Organic Information for Producers, Handlers
and Processors
 Research, Development and Extension
 The National Organic
Agriculture Board (NOAB)
The NOAB shall be composed of the following Regulations and
Guidelines
 Secretary of the Department of Agriculture as Chairperson
 Secretary of the Department of Trade and Industry as Vice-Chair
 Secretary of the Department of Health as Vice-Chair
 Secretary of the Department of Interior and Local Government;
 Secretary of the Department of Environment and Natural
Resources; and
 Secretary of the Department of Science and Technology
There shall be appointed to the NOAB seven (7) representatives
engaged in the practice of organic agriculture
Functions, Duties and Responsibilities of
the NOAB and the NTC

 Formulate policies, plans, programs and projects to promote and

develop organic agriculture
 oversee the successful implementation of the Organic Agriculture
Programs and Projects
 call upon any government agency to carry out and implement
programs and projects identified by the Board
 call upon private sectors, people’s organizations (POs) and non-
government organizations (NGOs), and the academe to provide
advise on matters pertaining to Organic Agriculture
 identify sources of financing to expand organic agriculture
 submit annual and other periodic reports to the Office of the
President
 Challenges in Organic Agriculture

 Declining yield during conversion period

 Transition period during certification
 Certification and labeling
 Consolidating information and database
 Marketing and increasing demand
SALAMAT PO