Background of Study

During the second half of the 1990s, a strong and steady growth in the sales of organic foods has
provided these products with a viable and sometimes value added market niche. Changes in dietary
habits among many segments of the population of developed countries - resulting from increased health
awareness and the increasing demand for a wider variety of products, including convenience food -
have contributed to this growth. Due to major food scares, which hit many countries in western Europe
in the late 1990s and early years of this century, consumers in general have become more critical when
purchasing food. Moreover, they have become more demanding regarding information on production
and processing aspects (including tracability of the product). The sales of organic horticultural products
have been expanding rapidly in many of the major organic markets (e.g. the United States, countries in
the European Community and Japan). However, the market share of organic products in total food sales
is still small, with shares ranging between one and three percent.

The economies of many developing countries are dependent on the export of a relatively small number
of (mostly agricultural) commodities. Several of these commodities (e.g. bananas and sugar) are likely
to face further market liberalization pressure in the near future. As a result, diversification of
agricultural production is more than ever of utmost importance. Diversification towards high-value
crops can help to reduce the vulnerability of many agricultural producers in those countries, especially
for resource poor and small scale farmers.
Despite ongoing conversion towards more sustainable farming methods in developed
countries and government support to further boost organic production, consumption of
organic foods is expected to continue to outgrow domestic production in developed
countries, leaving room for significant organic imports, at least in the short- to medium-
term and probably beyond. Moreover, tropical and off-season products will continue to
provide an attractive potential for which many developing countries have comparative
advantages.

Customs and regulatory authorities have not made a distinction between organic and
conventional food products, resulting in a lack of reliable information on organic
horticultural market development and internationally traded volumes. Decision-makers in
the public and private sector in developing countries therefore lack the necessary
information on which decisions should be taken concerning conversion towards organic
production. The development of demand for organic products, the type of products and
anticipated prices are key issues when deciding on conversion.
This publication aims at contributing to filling that information gap. It provides detailed
information on organic horticultural market development and global trade in fresh organic
fruit and vegetables. The study gives quantitative and qualitative information on the
demand in the main developed markets, organic production and import figures. Moreover, it
provides case studies of seven developing countries which have established an organic
export sector or have the potential to do so. These case studies may provide useful insights
on how to establish a successful organic export sector, and also discuss possible difficulties
that need to be tackled.
Scope of Study
This study focuses on fresh certified organic fruit and vegetables (both temperate and
tropical). For some countries where other organic products (e.g. processed and frozen
vegetables) are of significant importance, short sections on these products are included.

Market analysis has been carried out in the following developed markets: Austria,
Belgium, Denmark, France, Germany, Italy, Japan, the Netherlands, Sweden,
Switzerland, the United Kingdom and the United States of America. Case studies on the
(potential) organic export sector in developing countries include: Argentina, Cameroon,
Chile, the Dominican Republic, Madagascar, Papua New Guinea and Zambia.