Organic agriculture
markets in SE Asia
Dr Paul Kristiansen
School of Environmental & Rural Science
University of New England
Armidale, Australia
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
Some key publications
www.organic-world.net/yearbook.html
(2010 and earlier FREE)
www.organic-systems.org
Global review and
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
Trends over time…
(Cordell
et al.
2009)
1950
2000
1900
1800
1850
(Long 2009)
(Heap 2001)
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
What options are available?
Genetic engineering?
Hydroponics?
Low-input, GAP,
„
safe use
‟
systems
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
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
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
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
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
Global organic market
Global market for
organic food and
drink
(Sahota 2011)
~60
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
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
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)
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
”
Supply chain examples
(Jahroh 2010)
Organic vegetables in West Java
Organics in SE Asia
–
starting
Organic
tomatoes, Hlegu
Organics in SE Asia
–
diversifying
Organic & low-input retailer, Phnom Penh
Organic & low-input vege farm, Phnom Penh
Organics in SE Asia
–
underway
Organic & low-input vege farm, IBP, Bogor
Breeding organic chilies, UNJA, Jambi
Organics in SE Asia
–
social aspects
Community garden, Kusuman, Esaan
Training & education, Chiang Mai
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
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
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
”
Adopting OA in developing countries
(Kristiansen & Merfield 2006)
‘Organic by default’ is a good starting point,
but usually not enough for most markets,
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
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.
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.