FRAMEWORK ANALYSIS FRAMEWORK ANALYSIS REPORTREPORT

– Organic Romania - 2011– Organic Romania - 2011

EcoR Partener CRPMPEC

Plovdiv 29th, 2011, April 28th -

Table of content

• 1.Short presentation of organic sector current state of organic agriculture in Romania

• 2. The current state of organic food retailing

• 3. Training need analysis of beneficiaries interested in organic food retailing

• 4. Available training programs and courses

Brief history of organic farming in

Romania • 1992 – first trial / plot in organic agriculture• 1997 – establishment of the first organic association Bioterra in Cluj• 2000 - first legal framework Gov Ordinance 34/ 2000• 2001 – within Ministry of Agriculture – office for organic farming • 2002 – National Federation for Organic Farming• 2003 – national legal framework harmonized with EU legislation• 2004 – first national inspection and certification bodies • 2005 – first time – support for organic farming• 2006 – national logo “ae”• 2007 – 2009 – rapid and continuous evolution• 2010 – EcoR Partener is founded

Actual legal framework

- EU organic legal framework is adopted since 2007- National specific legal framework (most important)

- ORDER nr.252 from 2010 to amend Order of the Minister of Agriculture, Forestry and Rural Development no. 219/2007 for approving the rules on registration of operators in organic farming

- ORDER-No. Rules 417/110/2002 approving specific labeling of organic products with subsequent amendments

- ORDER-No. 65/2010 for approving the regulations on inspection and certification system, approving the inspection and certification bodies Supervision and inspection bodies

- Order of the Minister of Agriculture and Forestry and the president of the National Authority for Consumer Protection to allow imports of organic products from third countries

4

Minsitry of Agriculture – Division for organic farming

Inspection and certification bodies

Control

Approval

Farm or processing unit

Inspection

Certification

Annual and 6 months report

OrganismeNaționale

de acreditare

Regsitration

Organic sector structure

5

County Directions for Agriculture

Organic producers and surfaces in organic farming evolution

Indicator 2006 2007 2008 2009 2010*

Number of registered organic operators

3409 3834 4191 3228 4322

Total organic area (ha) 143.194 190.129 221.411

240.000 260.000

Share of cultivated land in organic farming in total agricultural area (%)

1 1 1,5 1,7 1,86

The area cultivated in organic farming, crops on arable land (ha)

45605 65112 86454 110014,4

129336

The area cultivated in organic farming, permanent crops (ha) grassland and meadow

51200 57600 46006,5

39232,8 46000

Certified organic farming area, permanent crops (ha) of orchards and vineyards

294 954 1518 1869,4 3600

Collection of spontaneous plnts (ha) 38700 58728 81279 88883,4 81064

Terminology and Identification (Regl.(CE) no. 834/2007)

“,,organic”/,,biologic” /,,ecologic”(Annex la R(CE) nr. 834/2007)

In Romania used term ,,ecologic”

7

Organic farming dynamics

Source: Minsitry of AGriculture registration

0

500

1000

1500

2000

2500

3000

3500

4000

4500

number of operators

2006 2007 2008 2009 2010*

year

Annual evolution of organic operators

Crop structure in organic farming

9

Cereals = 80,000 ha (18%), oilseeds and protein = 42,000 ha (14%), permanent pasture and forage crops 30,000 ha (20%), collection and certification of plants and flowers from the spontaneous flora 59,000 ha Source: MAD Register

Organic surface structure evolution

10

Number of registered operators in organic farming 2006-2009

11

Number of operators by counties

12

>700 200-700 100-199 60-99 40-59 20-39 <20

SV MS BC,TL,IL AB,SB,BV,CT, BH,HD,HR,IS,BR MM,SJ,BN,CJ,AR,TM,GJ,AG,TR,PH,VN

SM,BT.NT,VS,GL,CV,CS,MH,DJ,OT,VL,DB,IF,GR,BZ

Organic products available on the market

• Products of Plant Origin: fresh fruits and vegetables, dried fruits and nuts, vegetables, Cereals, Oil seeds, Spices, oil plants, medicinal and aromatic plants, etc

• Processed Products: Bread, Baked products, Wine from organic grapes, fruit juices, milk and diary products , Fruit juices, sunflower oil, jams / marmalades, processed soy products, pasta, herbal teas, pastries,

• Products of Animal Origin: Milk, Eggs, Oils, meat products, Honey

Organic processors

Number of processors in 2009:

74 Out of which

- 48 in vegetal production- 9 in animal producs- 17 in apiculture

Processors by sectors 2009

14

Processed products

Sursa: Inregistrare MADR

15

Sheep cheeseSheep cheeseSchweitzerYellow cheeseHoney

Other organic processed products

16

sunflower oil cold pressed fruit juices processed soy products Pasta herbal teas processed products from snails Pastries Confectionery processed pork products Processed products from hamp Wine from organic grapes Vegetable processed products

Inspection and certification bodies approved by Ministry of Agriculture

-2 national inspection and certification body ( SC ECOINSPECT SRL and CERTROM SRL ) + 14 branches or subsidiaries of EU certification bodies approved by Ministry of Agriculture:BCS ÖKO-GARANTIE ROMÂNIA S.R.L; QC&I S.R.L , S.C SUOLO e SALUTE S.R.L , ICEA ROMANIA S.R.L , S.C ECOCERT S.R.L, BIOS S.R.L ITALIA SUCURSALA ROMÂNIA, LACÓN PRIVATE INSTITUTE FOR QUALITY ASSURANCE, S.C IMO CONTROL SRL, CERES HAPPURG GMBH, AGRECO R.F GÖDERZ GMBH GERMANIA SUCURSALA ROMÂNIA, BIOAGRICERT ITALIA SRL SUCURSALA ROMÂNIA, CERTIFICATION SERVICES INTERNATIONAL CSI GMBH GERMANIA SUCURSALA ROMÂNIA, AUSTRIA BIO GARANTIE S.R.L SUCURSALA ROMÂNIA ECOGRUPPO – SUCURSALA BUCURESTI A ECOCERT ITALIA SRL

Each of them has a unique identification code RO – ECO - xxx

17

Organic products marketAn emerging domestic market estimated at about EUR 20 million (in 2009) with a constant increase.

Distribution channels:- Wholesale sales in stores- farm-gate sales- Sales in natural and healthy products shops- on-line sales through stock - hyper and supermarkets - Specialised organic shops- home delivery services

18

Selling channels of organic products - organic producers

16%

5%

5%

11%

26%

5%

32% Hypermarket

Supermarket

District Shops

Municipal open Market

Direct sales

Other

Bio Shops

Results from questionnaires analysis

Dynamics of organic products trading

2006=62.115 to Share 2008 cereals (54 %) 2007=99.356 to -oil plants (22 %) 2008=129.770 to - spontaneous flora collection (20%) - processed milk products 1 %) -honey 2007 (0,94%) -other products (2,06),• Main export markets: Netherlands, Germany, Italy, Denmark, UK

Perspective: U.S. market penetration

20

0

20000

40000

60000

80000

100000

120000

140000

Cantitate (to)

2006 2007 2008

cereals

Oil and proteic plants

Spontaneous flower and fruits

Milk processed products

honey

Sun flower oil

Other products

Total

Sursa: Comunicari comercianti

Training need analysis of beneficiaries interested in organic food retailing

Producers

Topics are:

•Organic Agriculture

•Organic food production

•Organic products labeling

•Processing requirementstraining in basic organic production and processing methods is required

Training tools • face to face training• printed materials• on job training and short seminars

Training need analysis of beneficiaries interested in organic food retailing

Most important topics of training - PRODUCERS

0

1

2

3

4

5

6

Org

anic

Agric

ultu

re

Fair

Trad

e

Car

e of

goo

ds

Satis

fyin

gEn

viro

nmen

tal

Org

anic

food

prod

uctio

n

Sale

sco

mm

unic

atio

n

Pric

e po

licy

Legi

slat

ive

basi

cs o

f ret

ail

Topics

Prio

rity

Organic Agriculture

Organic trade

Fair Trade

Food hygiene and safety

Care of goods

Communication Skills

Satisfying Environmental obligations

Processing

Organic food production

Organic products labeling

Sales communication

Retail structure

Price policy

Advertising

Legislative basics of retail

Training need analysis of beneficiaries interested in organic food retailing

Retailers

Topics are: • organic agriculture in general

• trade in Organic Agriculture• Organic food production

• other topics, communication skills, nutrition science

Training tools • face to face training• printed materials

Percentage of organic products purchased

46.15

26.92

3.85

26.92

3.85

69.23

15.38

42.31

34.62

57.69

3.85

50

7.69

19.23

0

15.38

29.92

11.54

0 10 20 30 40 50 60 70 80

1

Other

Stimulants

Baby food

Fish

Meat products

Beverages

Eggs

Mashrooms

Milk/Dairy products

Bakery products

Cereals and cereal products

Nuts

Honey

Grape

Herbs and medicaments

Potatoes

Fruit

Vegetable

• Romanian organic sector is dynamic and in continuous development

• Increasing of internal market

• A big demand from consumers

• Highest priority: conversion of conventional farms to organic methods

25

Conclusion

Action plan

Producers/processors• problem - lack of information related to organic production but mostly to

organic processing requirements and trading of organic products (legal framework, labeling, distribution channels and selling materials)

• solution: - seminars and informative materials on how to produce organic products and how to successful sale organic products on internal market.

Retailers • problem - lack of information related to organic agriculture methods and

organic trade. There is lack of knowledge also related to organic food production legal requirements.

• solution: - producing of qualitative, standardized informative materials (flyers and booklets) but also organizing face to face courses

Consumers, stakeholders and decision makers• problem - lack of information related to organic agriculture in general. Problems

related with trust in “made in Romania” organic products and inspection services, confusion with traditional/natural/healthy products.

• solution: - informative campaign related to EU rules for organic production with a clear, distinct and impressive message, training of mass media factors in organic concept, increasing the visibility of Ministry of Agriculture as a key and correct factor in control of the certification bodies activities, campaign for clarification of the difference between the mentioned products and organic products.

Continuous formation of the youngest consumers from kindergarten to universities even not related to agriculture.

EcoR Partener

Motto: Excellence in organic agriculture by partnership and professionalism - the key to success in business

•EcoR established in 2010

•Founder members – executive responsabilities

•Goal - promoting excellence in the sale of certified organic products

The Board team

EcoR PartenerInternational network

www.o-r-a.org

www.avalon.nl

www.ifoam.org

www.ifoam-eu.org

EcoR PartenerNational network• FNAE Federatia Nationala de

Agricultura Ecologica – Romania

www.fnae.ro• BIOTERRA Asociatia BioAgricultorilor

din ROMANIA – Cluj-Napocawww.bioterra.org.ro

• ADFR – Asociatia de Dezvoltare a Fermierilor din Romania

• CNIPMMR www.cnipmmr.ro • Ministrul Economiei,

Comerţului şi Mediului de Afaceri

http://www.minind.ro

EcoR PartenerEvents 2010-11

• Organic Romania: International Forum for organic business - Sibiu November 2010 - EcoKonnect

• BioFach Targul Mondial de EcologieNürnberg Germania Februarie 2011

2. EcoR Partener2.4 Evenimente 2010-11

Goal: development of a standardized qualification system for organic retailers (owners and sellers)

Target group: - organic farmers- organic food retailers - processors of organic products Period Start 2010 – end 2012

Bulgarian partners:Higher School “Agricultural College”, Prof. Dr. Mariana Ivanova

Eurocentre - Land and Environment, Prof. Dr. Vladislav Popov

Projects in implementation developed by EcoR

EcoQualify EcoQualify III project - "Implementing a Quality Assurance System for training of certified organic products retailers'

Other projects

• organic farms school type (South school organic farm - Constanta -

in collaboration with the Association and Eng Alexe Niculai BioKreis Center and organic farm school - Cluj Napoca

• materials (publications, videos, DVD) with practical aspects of crop / processing and marketing of organic products ;

• development of private standard "EcoR Partner" for organic business to be recognized by similar organizations. The ultimate goal is to achieve a higher degree of recognition of the organic sector in Romania and confidence in the products and manufacturers certified under this standard in Romania,

• "Travel packages - Organic trip" in collaboration with City Tours & Events (www.city-tours-events.ro) in EU countries (Austria, Germany, France, Greece)

• Economic missions development for organic producers and processors (Emirates, Canada and Japan – 2011)

Thank you!

EcoR Partener Teamwww.ecor.ro

Tel: 0212102124Fax: 031 8171136Email: info@ecor.ro