CHAPTER 4: NON-TRADITIONAL AGRICULTURAL DIVERSIFICATION STRATEGY – THE
4.4. Developmental Phases in Organic Agriculture
The development of global organic agriculture has evolved in two key phases: the expansion phase and the growth phase.
4.4.1. Expansion Phase (1970-1990)
Organic agriculture research and practices expanded rapidly across the world after the 1960s. This expansion was triggered by the 1973 oil crisis, which brought about a measure of environmental awareness and called for sustainable agriculture. This also produced new ways of thinking about the use of natural resources and the concepts of low input and high efficiency, ensuring food security and maintaining sustainable development in agriculture through using ecological, organic, biodynamic and natural agriculture farming methods. These new ideas were considerably developed in terms of conceptual, research and practical aspects (Rigby et al., 2001; Pacini et al., 2002).
The expansion phase was further characterised by a strengthening of existing organic agriculture organisations as well as the formation of new organisations. A number of these organisations were particularly focused on the certification of farmers. Despite the rapidly growing interest in organic produce in the 1970s, it was not considered part of mainstream conventional agriculture and thus did not receive the government support that
conventional agriculture enjoyed. This resulted in individual groups collaborating and working with private organic organisations. Furthermore, the lack of government support promoted the formation of global organic networks. In 1972, the International Federation of Organic Agricultural Movement (IFOAM) was founded by five organic organisations from South Africa, the USA and Europe. To date, this is the largest non-governmental organic organisation in the world (Kristiansen et al., 2006; Luttikholt, 2007).
IFOAM‟s main activities are maintaining its organic guarantee system, improving harmonisation of regulations and trade and promoting organic agriculture at a global and intergovernmental level. The founding of IFOAM promoted the formation of other major organic organisations and research institutions around the world in the 1970s and 1980s.
These included FiBL (Forschungsinstitut für biologischen Landbau) and FNAB (Fédération Nationale ďAgriculture Biologique), which are the world‟s largest organic research institutes. FiBL and FNAB played a significant part in the standardisation of the production and marketing of organic produce and they advocated for consumer awareness (Luttikholt, 2007).
The 1980s saw the organic movement gain momentum and organic food become popular with consumers as a result of its health benefits and improved food safety. The growth in organic agriculture extended beyond Europe and the USA into parts of Australia, Central and South America, Asia and, to a lesser degree, Africa. The accelerated growth and awareness of organic agriculture also piqued the interest of scientists in the 1980s, bringing about increased research in organic agriculture. The focus of this research was primarily on comparative studies between conventional and organic farming methods, rather than on how to assist organic producers with improved methods to support and strengthen organic principles and practices (Lockeretz, 2002; Parrot and Marsden, 2002;
Freyer, 2007).
4.4.2. Growth Phase (since 1990)
The rapid growth in organic agriculture experienced in the 1970s and 1980s continued well into the 1990s and the 2000s. Both demand for and supply of organic produce grew at exponential rates of up to 20-30% per annum. In the 1990s, organic agriculture entered a new stage of growth. This was characterised by the foundation of organic producers
support from governments. In 1990, the first fair for organic products, the BioFach Fair, was held in Germany. To date, it is the biggest fair in the world for organic products (ITC, 1999; Kristiansen et al., 2006).
This growth phase saw increased collaboration between international players and increasing cooperation between governments, for example the EU and the FAO of the United Nations. In 1999, IFOAM and the FAO joined forces to produce a set of guidelines for the organic sector that focused on the production, processing, labelling and marketing of organic produce. These guidelines were particularly important in the synchronisation of worldwide organic agricultural standards (FAO, 2001a).
The growth in global organic agriculture is continually increasing in terms of both production and markets. Globally, there is an estimated 31.9 million hectares under organic management and approximately 700 000 organic farms. Table 4.6 provides key statistics on organic agriculture in Africa and other regions. It is evident that Australia has the largest share of land under organic management, with an estimated 12.4 million hectares, followed by Europe with 7.4 million hectares and Latin America with 4.9 million hectares. Asia, North America and Africa have 3.1 million hectares, 2.2 million hectares and 0.4 million hectares, respectively, under organic management.
It is clear that although Oceania has the largest area of organically managed land, it only accounts for 1% of the world‟s organic farms, but accounts for almost 60% of worldwide permanent organic grasslands. It appears that Europe has a substantial share in the global organic sector across all the listed categories. Surprisingly, North America has a considerably small share in organic agriculture across the board, despite its rapidly increasing consumer demand for organic produce. Latin America is gaining ground in the global organic sector, as its organically managed land is six times greater than that of Africa and its organic farms make up almost a third of organic farms globally. Asia‟s share of organic land is three times greater than that of Africa, but half that of Latin America; however, there are considerably fewer organic farms in Asia than in Africa and Latin America. Despite Africa‟s considerably small share in organically managed land, its share of organic farms makes up almost a quarter of the world‟s organic farms and accounts for 11% and 25% of the world‟s permanent organic crops and organic wild collection, respectively (Willer et al., 2008).
Table 4.2: Key Statistics on Organic Agriculture in Africa and Other Regions (Percentages of World Data)
Region Area (million ha)
Organic Land Share (%)
Organic Farms (%)
Organic Permanent
Crops (%)
Organic Permanent Grasslands
(%)
Wild Collection
(%)
Africa 0.4 1 24 11 0 25
Europe 7.4 24 28 48 15 28
Asia 3.1 10 13 4 4 24
Latin
America 6.4 16 32 34 18 22
North
America 2.2 7 2 3 5 1
Australia 12.4 42 1 0 58 0
Source: Willer et al. (2008)
Further to the increased land under organic production, consumer demand for organic produce is increasing significantly, particularly in the USA and the EU. This has led to the growth in the global organic market being primarily demand-led. The rising consumer demand has surpassed that of supply in both the USA and the EU, leading to increased imports from developing countries. In 2008, the trade in organic food and drinks reached US$50 billion per annum. Despite the recent global economic recession, the market for organic produce remains the fastest growing in the food sector. Consumers‟ preference for environmentally-friendly, healthy food, particularly in developed countries, is largely responsible for this significant increase in demand for organic produce. This growth, however, has not been limited to organic food and drinks, as demonstrated by the growth of the market for organic cotton, which grew from US$241 million in 2001 to US$5 billion in 2008. Despite the rapid growth of the demand and market for organic produce, many developing countries, including sub-Saharan African countries, have not been able to take advantage of the opportunities that the growing global organic market presents.
This can be attributed to a number of factors, such as lack of financial and government support, knowledge and training (Niemeyer and Lombard, 2003; Ndugire, 2010).
At present, sub-Saharan Africa‟s organic agricultural sector remains relatively small and underdeveloped. In fact, Africa accounts for a mere 1% of the world‟s land under organic management. Much of sub-Saharan Africa‟s small organic agricultural sector focuses on the export market, with the majority of exports destined for the EU. However, these exports originate from a handful of countries in the region. Sub-Saharan Africa‟s organic export products include fresh vegetables, bananas, coffee, tropical fruit, tea, sugar, cotton and honey (Raynolds, 2004; Parrot et al., 2006).
4.5. Critical Analysis of the Profitability, Environmental Impact and Export