Organic agriculture

markets in SE Asia

Dr Paul Kristiansen

School of Environmental & Rural Science

University of New England

Armidale, Australia

paul.kristiansen@une.edu.au

www.une.edu.au/organic

Overview of talk The challenge for food production Can mainstream agriculture deliver? What is organic agriculture (OA)?

–history, extent, processes Performance of OA?

–food, environment, social, regional issues Examples of OA in SE Asia Constraints?

–production, marketing, structural issues –addressing them

References

Some key publications

www.organic-world.net/yearbook.html (2010 and earlier FREE)

www.organic-systems.org

Global review and text-book, 2006

National organic sector report, 2008

National organic sector report, 2010

Global organic sector reports

The challenge for food production Demographics

–increasing population, longevity, affluence, dietary expectations

Resource capacity –little room to increase farmed land –urbanisation –soil & water degradation –climate change

Energy use –limits to „cheap‟ energy –competition for productive land

from bio-fuels (Lal 2010)

Trends over time…

(Cordell et al. 2009)

1950 2000 1900 1800 1850

(Long 2009) (Heap 2001)

(Hubbert 1956)

Can mainstream agriculture deliver? Fertilisers? “Diminishing returns of fertilizer application imply that further

applications may not be as effective at increasing yields.” (Tilman et al. 2002)

Genetics? “Current and expected future relative rates of progress in Yp

and Yw are a matter of real concern and are insufficient to meet projected demand for cereals by 2050” (Yp=potential water scarce yield conditions, Yw=water scarce yield, Hall & Richards 2013)

Biocides? “Please tell the farmers there is no cavalry coming over the

hill.” Dr Anne Thompson, Head of Development & Registration, Dow AgroSciences, at the „The Future of Weed Research‟ Conf., London, 2008 (cited in Merfield 2010)

What options are available? Genetic engineering? Hydroponics? Low-input, GAP, „safe use‟ systems Organic agriculture?

Definition of OA … no chemicals?

(WHO & FAO 2007, IFOAM 2008)

IFOAM definition.. “…sustains the health of soils, ecosystems and people. It relies on ecological processes, biodiversity and cycles adapted to local conditions, rather than the use of inputs with adverse effects. Organic agriculture combines tradition, innovation and science to benefit the shared environment and promote fair relationships and a good quality of life for all” WHO/FAO definition.. “…practices which seek to nurture ecosystems which achieve sustainable productivity, and provide weed, pest and disease control through a diverse mix of mutually dependent life forms, recycling plant and animal residues, crop selection and rotation, water management, tillage and cultivation.

OA principles

The principle of health Prinsip kesehatan The principle of ecology Prinsip ekologi The principle of fairness Prinsip keadilan The principle of care Prinsip perlindungan

(IFOAM 2009)

OA history – what the West can learn

Indigenous/farming knowledge –e.g. intercropping, biofertilisers, biopesticides, ash seed

coating, etc. Traditional farming systems

–home-gardens, forest-garden, permaculture –ecological and economically efficient „New‟ system components

–aquaculture, mariculture –excellent for nutrient cycling and protein production, but

never included in early Standards

Standards and Certification

Extent –Basic Standards (IFOAM) from 1980 –Codex Alimentarius (FAO/WHO) from 1999 –86 countries have Standards (more soon…) –576 certification bodies globally

Recent trends –organics a world leader in certification processes –global harmonisation, reduce trade barriers, e.g. ITF

FAO,IFOAM,UNCTAD), GOMA (Global Organic Market Access)

–Internal Control Systems (ICS) for group certification –Participatory Guarantee Systems (PGS) for small holders

(Willer et al. 2013)

Organic agriculture globally Production (2011 data)

–37.2 million hectares (0.9% of all agricultural land) –largest areas: Australia, Argentina, USA –~65% grazing: cattle, sheep, goats –17% arable: rice, fodder, oil seeds, legume, veges –7% perennials: coffee, olives, nuts, grapes, cacao –1.8 million producers: India, Uganda, Mexico, etc. Consumption (2011 data)

–US$59.1 billion –double-digit annual growth since 2000 (except „09, „10) –largest markets: US (almost half), Germany, France –highest per capita consumption: Denmark, Switzerland,

Austria

(Willer et al. 2013)

Global organic market

Global market for organic food and drink

(Sahota 2011)

~60

2011

Scope of OA in Asia 10% of organic land is in Asia (3.6 million hectares) 40% of organic producers are in Asia (731,315) mostly in China & India some reduction in numbers due to compliance costs cash crops and processed goods exported food crops sold locally or wider domestic market

– supermarkets, specialist shops – farmer markets, restaurants

(Ong 2011, Willer et al. 2013)

methodological issues –foods not always comparable between systems –health has complex causes –what to measure, long-term effects? more “good” things in food?

–some consistent evidence of nutritional benefits –more phenols, omega-3 fatty acids, vaccenic acid less “bad” things in food?

–significantly less pesticides, etc. –no greater risk from pathogens (possibly less) –less anti-biotic resistant bacteria –less fungal toxins

Food quality

(Brandt & Mølgaard 2006, Smith-Spangler et al. 2012

?

Environmental impacts of organics

(Kasperczyk & Knickel 2006)

Organic versus conventional farming? Absolute and relative impacts (data mainly from Europe)

Social impacts of OA community

–increased demand for local goods and services –increased employment –more participation in civic institutions –valuing local knowledge personal & household

–less health risks –improved income security regional & national

–social justice, „fair trade‟ –regional development

(Pyburn & Wals 2006, MacRae et al. 2007, Ortiz Escobar & Hue 2007)

Developing organics in Indonesia started in 1980s with NGOs Indonesian Organic Ag Network (JAKERPO), 1998 Indonesian Organic Community (MAPORINA), 2000 organic standard launched by Aliansi Organik Indonesia (AOI) 2005 based on IFOAM and Codex

(Jahroh 2010, Ariesusanty 2011) plus at least 7 overseas certifiers!

Organic production in Indonesia

71,208 hectares in 2010 (~0.1%) … up from 57,000 ha in 2007 ~10,000 producers and processors cocoa: 2,225 ha (global: 290,000 ha) coffee: 34,533 ha (global: 600,000 ha) vegetables: (only)150 ha (global: 270,000 ha) rice: 560 ha?? 2009 … “supply is greater than demand”

(Jahroh 2010, Ariesusanty 2011, Willer et al. 2013)

Supply chain examples

(Jahroh 2010)

Organic vegetables in West Java

Organic rice in North Sumatra

Organics in SE Asia – starting

Organic tomatoes, Hlegu

Organic products, BMNP, near Huế Organic vege farm, BMNP, near Huế

Organics in SE Asia – diversifying Organic & low-input retailer, Phnom Penh Organic & low-input vege farm, Phnom Penh

Organic cashews, etc., Banlung Organic pepper, O Yadav

Organics in SE Asia – underway Organic & low-input vege farm, IBP, Bogor Breeding organic chilies, UNJA, Jambi

Organic & low-input supply

chain, IBP, Bogor

Organics in SE Asia – social aspects Community garden, Kusuman, Esaan Training & education, Chiang Mai

Organic farmer group, Gunung Sago Organic farmer & entrepreneur, G. Sago

Production constraints soil fertility management –P especially difficult –replacing what ever is exported (mass balance) –tillage impacts weeds, pests and diseases in cropping –controls not “100% effective” –less specific controls, more off-target impacts? internal and external parasites in livestock –controls not “100% effective” –must put animal welfare first –breeding/selection very important

(Kristiansen & Merfield 2006, Kristiansen et al. 2006)

Marketing constraints

fluctuating, low volume of supply Standards

– complex, demanding, unaffordable – global harmonisation, avoid multiple processes – regional adaptation helpful

variable quality prices … ensuring premiums cost of inputs buyer power (local vs. supermarkets) breaks in the supply chain domestic vs export

(Kristiansen & Merfield 2006, Jahroh 2010, Ariesusanty 2011)

Structural constraints

industry development – disharmony and conflict – poor representation to government

lack of training & educational infrastructure – locally based organic farmer groups – govt extension agencies not able/willing to support OA

lack of R&D funding standards & certification:

– effective and credible – locally adapted and global harmonised

lack of laws limiting the use of “organic”

(Kristiansen et al. 2006)

Adopting OA in developing countries

(Kristiansen & Merfield 2006)

‘Organic by default’ is a good starting point, but usually not enough for most markets,

especially international trade

Overcoming constraints more and better information

– farmer groups, info networks – NGO/GO support – training material, extension processes – adapting/revising organic Standards

supply chain development – ensuring sufficient, affordable inputs – ensuring timely handling and processing – achieving critical mass – consumer awareness (e.g. definitions, labels)

References Ariesusanty, L. 2011. Indonesia: Country Report. In: Willer, H. and Kilcher, L. (eds.) The World of Organic Agriculture - Statistics and Emerging Trends 2011. IFOAM & FiBL, Bonn & Frick. pp. 137-139.

Brandt, K. and Mølgaard, J.P. 2006. Food quality and organic agriculture. In: Kristiansen, P., Taji, A. and Reganold, J. (eds.) Organic Agriculture: a Global Perspective. CSIRO Publishing, Collingwood. pp. 305-327.

Cordell, D., Drangert, J.O. and White, S. 2009. The story of phosphorus: Global food security and food for thought. Global Envi’l Change. 19: 292-305.

D’Amario, A., Marzoli, F., Martino, F. and Morettini, M. 2005. Social aspects of organic farming. In: Organic Farming in Poland as Example of Organic Farming in CEE Countries - from farm to plate, 25-29 July 2005, ENAOS 2005 - 4th ENAOS Summer Meeting. ENAOS, Warsaw.

Hall, A.J. and Richards, R.A. 2013. Prognosis for genetic improvement of yield potential and water-limited yield of major grain crops. Field Crops Research. 143: 18-33.

Heap, I. 2001. Graphs on the Occurrence of Herbicide Resistant Weeds Globally. International Survey of Herbicide Resistant Weeds, Corvallis. <www.weedscience.org/paper/graphs.htm>

Hubbert, M.K. 1956. Nuclear Energy and the Fossils Fuels. Shell Development Company, Houston.

IFOAM. 2008. Definition of Organic Agriculture. IFOAM, Bonn. ifoam.org/growing_organic/definitions/doa

IFOAM. 2009. The Principles of Organic Agriculture. IFOAM, Bonn. www.ifoam.org/about_ifoam/principles

Jahroh, S. 2010. Organic farming development in Indonesia: lessons learned from organic farming in West Java and North Sumatra. In: Coudel, E., Devautour, H., Soulard, C. and Hunert, B. (eds.) Innovation and Sustainable Development in Agriculture and Food 2010, Montpellier, June 28-30, 2010. Cirad, INRA, Montpellier.

Kasperczyk, N. and Knickel, K. 2006. Environmental impacts of organic farming. In: Kristiansen, P., Taji, A. and Reganold, J. (eds.) Organic Agriculture: a Global Perspective. CSIRO Publishing, Collingwood. pp. 259-294.

Kristiansen, P. and Merfield, C. 2006. Overview of organic agriculture. In: Kristiansen, P., Taji, A. and Reganold, J. (eds.) Organic Agriculture: a Global Perspective. CSIRO Publishing, Collingwood. pp. 1-23.

Kristiansen, P., Taji, A. and Reganold, J. 2006. Organic agriculture: opportunities and challenges. In: Kristiansen, P., Taji, A. and Reganold, J. (eds.) Organic Agriculture: a Global Perspective. CSIRO Publishing, Collingwood. pp. 421-441.

Lal, R. 2010. Managing soils for a warming earth in a food-insecure and energy-starved world. Journal of Plant Nutrition and Soil Science. 173(1): 4-15.

Long, B.K. 2009. Human Population through the Ages. EconoSystemics. <econosystemics.com/ AphetaBlog/?p=9>

References (continued) Lal, R. 2010. Managing soils for a warming earth in a food-insecure and energy-starved world. Journal of Plant Nutrition and Soil Science. 173(1): 4-15.

Long, B.K. 2009. Human Population through the Ages. EconoSystemics. <econosystemics.com/ AphetaBlog/?p=9>

MacRae, R.J., Frick, B. and Martin, R.C. 2007. Economic and social impacts of organic production systems. Canadian Jnl of Plant Sci. 87: 1037-1044.

McCluney, R. 2004. Renewable energy limits. In: MacKillop, A. (ed.) The Final Energy Crisis, Pluto Press, London.

Meadows, D.H., Meadows, D.L., Randers, J. and Behrens, W.W. 1972. Limits to Growth. A Report for the Club of Rome's Project on the Predicament of Mankind. Universe Books, New York.

Merfield, C. 2010. Physical and Ecological Weed Management An eBook Scoping Proposal. C. Merfield, Christchurch. <merfield.com/pewm/index.htm>.

Ong, K.W. 2013. Developments in Asia 2012. In: Willer, H., Lernoud, J. and Kilcher, L. (eds.) The World of Organic Agriculture. Statistics and Emerging Trends 2013. FiBL-IFOAM Report. FiBL & IFOAM, Frick & Bonn. pp. 178-190.

Ortiz Escobar, M.E. and Hue, N.V. 2007. Current developments in organic farming. Recent Research Developments in Soil Science. 2: 29-62.

Pyburn, R., Sriskandarajah, N. and Wals, A. 2006. Social responsibilities of organic agriculture: learning, collaboration and regulation. In: Kristiansen, P., Taji, A. and Reganold, J. (eds.) Organic Agriculture: a Global Perspective. CSIRO Publishing, Collingwood. pp. 329-350.

Sahota, A. 2011. The Global Market for Organic Food & Drink. In: Willer, H. and Kilcher, L. (eds.) The World of Organic Agriculture - Statistics and Emerging Trends 2011. IFOAM & FiBL, Bonn & Frick. pp. 62-66.

Smith-Spangler, C., Brandeau, M.L., Hunter, G.E., Bavinger, J.C., Pearson, M., Eschbach, P.J., Sundaram, V., Liu, H., Schirmer, P., Stave, C., Olkin, I. and Bravata, D.M. 2012. Are organic foods safer or healthier than conventional alternatives?: a systematic review. Annals of Internal Medicine. 157(5): 348-366.

Tilman, D., Cassman, K.G., Matson, P.A., Naylor, R. and Polasky, S. 2002. Agricultural sustainability and intensive production practices. Nature. 418: 671-677.

WHO and FAO. 2007. Codex Alimentarius. Organically Produced Foods. WHO & FAO, Rome.

Willer, H., Lernoud, J. and Kilcher, L. (eds.) 2013. The World of Organic Agriculture. Statistics and Emerging Trends 2013. FiBL-IFOAM Report. FiBL & IFOAM, Frick & Bonn.