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Organic Farming in Europe: Recent Developments and Future Prospects

Organic Farming in Europe:
Recent Developments and Future Prospects

July 2002

 

by Foundation Ecology & Agriculture (SOEL, Germany) and
Research Institute of Organic Agriculture (FiBL, Switzerland)

 

 

Overview

 

Organic Agriculture World-wide: A Rapid Global Growth

 

Organic Agriculture in Europe

Statistical Development

History of Organic Agriculture in Europe and its Main Players

The European Market for Organic Foods

EU-Legal Framework

Organic Farming Research in Europe

State Support for organic agriculture in the European Union and Agenda 2000

Action Plans

Case Study Germany

 

Future

 

References

 

Links to institutions and information mentioned in the text.

 

 


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Organic Agriculture World-wide: A Rapid Global Growth

 

Organic agriculture is practiced in almost all countries of the world, and its shares of agricultural land and farms is growing. The market for organic products is also growing at a fast rate. Official interest in organic agriculture is emerging in many countries. On an international level FAO is giving increasing support to organic farming.

According to a survey carried out by SÖL (February 2002) about 17.2 million hectares are managed organically world-wide (Yussefi/Willer 2002). Presently the major part of this area is located in Australia (7.6 million hectares), Argentina (3 million hectares) and Italy (now more than 1 million hectares). Europe has the highest proportion of organic land - here in most countries the organic area is at least 1 % of the total agricultural area.

 

According to a study of the International Trade Centre ITC (2001) trade with organic foods has become a major business on the global market. Trade with organic products is showing growth rates which are rarely found in food markets. According to ITC, the biggest markets for organic products worldwide are the USA, Germany and Japan. The retail sales for organic products worldwide were estimated to be about 21 billion Euro in 2001 (International Trade Center, 2001).

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Organic Agriculture in Europe

 

Statistical Development: A Strong Growth

 

Since the beginnings of the 1990s organic farming has developed very quickly in almost all European countries. According to SÖL on the 31.12.2000 in the 15 EU-countries almost 3,8 million hectares were managed organically by around 130.000 farms. This constituted around 2,9 per cent of the agricultural area and almost two percent of the farms. If the accession countries and the EFTA countries are included the number of farms is almost 140 000 and the land under organic management more than 4,1 million hectares (see table).

 

Provisional figures for 2001 (FiBL, 2002) show that now more than 4,1 million hectares are under organic management in the European Union

 

In the European Union between 1986 and 1999 the organic land grew annually by 25 per cent (Lampkin 2001). The strongest growth is demonstrated in Scandinavia and the Mediterranean countries. Since the end of the 1990s also in Germany and in the United Kingdom a strong growth has taken place.

 

A detailed description of the current statistical situation of the organic sector is available from the brochure: "Organic Farming in the EU: Facts and Figures", which is available at the European Commission's Organic Farming web site. A complete overview of the statistical development of the organic sector is available from the internet site of the Organic Centre Wales.

 

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Figure 1: Development of Land under Organic Management and of Organic Farms in the European Union 1985 to 2000, Source: SÖL
(Click on Graph for enlargement)
 

 

There are, however, substantial differences between the EU-countries. In Austria almost nine per cent of the agricultural land is organic, in Switzerland ten percent. Some countries have not yet attained even one per cent. The country with the highest number of farms and hectares is Italy.

 

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Figure 2: Land under Organic Management in the Countries of the European Union (31.12.2000), Source: SÖL
(Click on Graph for enlargement)
 

 

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Figure 3: Organic Farms in the Countries of the European Union (31.12.2000), Source: SÖL
 

 

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Table 1: Organic Farming in Europe as of 31.12.2000 (provisional)
Source: Stiftung Ökologie & Landbau 2001
 
 

Date

Organic Area (ha)

%

Organic farms

%

European Union

         

Austria

31.12.00

271.950

8,68

19.031

8,42

Belgium

31.12.00

20.263

1,47

628

0,94

Denmark

31.12.00

165.258

6,15

3.466

5,50

Finland

31.12.00

147.423

6,79

5.225

6,60

France

31.12.00

370.000

1,31

9.260

1,36

Germany

31.12.00

546.023

3,20

12.732

2,93

Greece

31.12.00

24.800

0,71

5.270

0,64

Ireland

31.12.00

32.355

0,75

1.014

0,69

Italy

31.12.00

1.040.377

7,01

51.120

2,21

Luxembourg

31.12.00

1.030

0,81

51

1,70

Netherlands

31.12.00

27.820

1,39

1.391

1,48

Portugal

31.12.00

50.002

1,31

763

0,18

Spain

31.12.00

380.838

1,49

13.424

1,11

Sweden

31.12.00

171.682

6,25

3.329

3,70

UK

31.12.00

527.323

2,85

3.563

1,53

Sum EU

 

3.777.144

2,94

130.267

1,86

           
           

Accession Countries

         

Bulgaria

2000

500

0,00

50

 

Cyprus

2000

52

0,04

15

 

Czech Republic

31.12.00

165.699

0,49

563

2,04

Estonia

31.12.00

9.872

0,69

231

0,20

Hungary

31.12.00

47.221

0,77

471

 

Latvia

1999

20.000

0,79

225

 

Lithuania

2000

4.709

0,13

230

 

Malta

1999

 

0,00

   

Poland

31.12.00

22.000

0,12

1.419

0,07

Romania

1999

1.000

0,01

100

 

Slovakia

1999

60.000

2,45

100

 

Slovenia

31.12.00

5.200

0,66

620

 

Turkey

2000

21.000

0,05

10.000

 

Sum

 

243.344

0,28

1.555

 

Sum EU + Accession

 

4.020.488

1,74

131.822

 
           
           

EFTA-Countries

         

Iceland

31.12.00

3.400

3,40

30

0,80

Liechtenstein

31 X 2000

690

17,00

33

15.71

Norway

31.12.00

20.523

2,01

1.823

2,68

Switzerland

1.3.2001

95.000

9,00

5.852

9,50

Sum EFTA

 

119.613

2,73

7.738

 

Sum EU+EFTA

 

3.896.757

2,93

138.005

1,61

Sum EU; EU Accession, EFTA

 

4.140.101

1,76

139.560

 

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History of Organic Agriculture in Europe and its Main Players

 

The history of organic farming in Europe dates back to 1924 when Rudolf Steiner gave his course on bio-dynamic agriculture, and the first farms converted in the 1920s. In the 1940s in many countries the first organic agriculture organisations were founded, and the private sector has been the driving force for the development of organic farming in Europe since then. The organisations of the private sector are represented by the International Federation of Organic Agriculture Movements IFOAM, which was founded in 1972 in Versailles. In 1992 IFOAM established its Accreditation Programme (IAP) to provide international equivalency of organic quality claims. In the 1980s most of the organic agriculture organisations active at present were founded, and their efforts for harmonization and consumer protection were assisted by some governments Denmark, France).

 

In 1991 the EU-regulation on organic farming was published in the official journal of the EU, this year marking the beginnings of official interest in organic agriculture on an European level. Since 1999 the Global Codex Alimentarius of the FAO also covers organic agriculture. The Codex-guidelines are intended to guide and promote the establishment of definitions for organic agriculture and requirements for organic food labeling, to assist in their harmonisation, and in doing so, to protect consumers and to facilitate international trade.

 

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Table 2: Some Milestones in the history of organic farming from a European perspective

 

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The European Market for Organic Foods

 

In most European countries the market for organic products is still small; it is, however, growing. Scandurra (2000) predicts that in f2005 organic products will have a 5 to 10 per cent market share; with opportunities for every product category.

 

In the European Union Germany is the biggest market in absolute figures. Higher percentages of the total market are, however, found in Denmark, Switzerland, Austria and Sweden. Market growth is fastest in Great Britain (25-30%). The highest consumption levels tend to be in northern Europe; lowest levels tend to be in the south (Scandurra 2000, ITC 2001).

 

The importance of individual marketing channels differs from country to country. Whereas in Germany direct marketing and the marketing via specialised shops dominated for a long time, the organic sector in Great Britain, Denmark and Sweden concentrated on supermarkets at a very early stage.

Hamm and Michelsen (2000) found that in countries, where organic foods are mainly sold via supermarkets, growth and market shares are higher than in those where specialised shops are the main marketing channel. According to the authors other important factors for a high market share are dedication of processors and retail trade for organic food, the existence of a common logo (be it state or private), and premium prices for organic products lower than 50 %.

Clearly the support from consumers will be a decisive factor in the future development of organic farming. Consumer support can be enhanced by providing information and by advertising for organic farming as some governments do (Italy, Denmark, Austria).

 

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Table 3: Retail sales with organic products in Europe, Estimates for the year 2000 (ITC, 2001)

 

Country

Turnover in Million US-Dollars 2000

% of total food sales

Yearly expected growth rates

Germany

2,100-2,200

1.6-1.8

10-15

Italy

1,000-1,050

0.9-1.1

10-20

France

800-850

0.8-1.0

10-15

UK

1,100-1,200

1.0-2.5

15-20

Switzerland

450-475

2.0-2.5

10-15

Netherlands

275-325

0.9-1.2

10-20

Denmark

350-375

2.5-3.0

10-15

Austria

200-225

1.8-2.0

10-15

Sweden

175-225

1.0-1.2

15-20

Total

7,000-7,500

-

-

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EU-Legal Framework

 

With EU-regulation on organic production 2092/91 considerable protection for both consumers and producers had been achieved. In December 1999 the European Commission decided on a logo for organic products, which can be used for products produced in line with EU-regulation 2092/91.

 

The brochure "Organic farming - Guide to Community rules" published by the European Commission in 2001 informs extensively about EU-regulation 2092/91.

 

Also in countries outside the EU organic products are either legally protected, or work on organic regulations is in progress (Norway, Switzerland. Hungary, Slovenia, Czech Republic). Several EU countries have - in some cases long before the EU-regulation on organic production came into force – developed their own national regulations and also national logos for organic products.

 

These logos, for instance those in Denmark or in Austria, are well-known and much trusted in by the consumers. The existence of these logos is one reason for the organic boom in these countries (see table).

The EU-regulation 2092/91 has undoubtedly brought considerable security for consumers, but consumer confidence clearly needs to be increased by extra measures at national level.

 

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Table 4: Common Logos for organic products in Europe
 

Belgium (private)

Denmark (state)

Germany (state)

Netherlands (state)

Norway (private)

Austria (state)

Switzerland (private)

Finland (state)

France (state)

Spain (state)

Czech Republic (state)

Sweden (private)

In some countries (Italy, Germany) organic products are mainly labelled with private seals, of which numerous exit. Germany has had a state logo since September 2001.

 

 

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Organic Farming Research in Europe: More Efforts Needed

 

According to recent reviews organic farming research is now supported in many European countries. Looking across Europe, research is organised in different ways: Private research institutes originally connected to the organic movement are strongly involved in the Netherlands, UK and Switzerland. Associations of private and state advisors and researchers work as a national platform for research in France.

 

In contrast, in Germany, Austria, Italy, the Netherlands and Sweden, research has been carried out mainly at universities. In Finland, Denmark, Norway, Sweden and the UK, state research stations have been involved to a high degree. In several countries research efforts are now co-ordinated efficiently.

The situation is, however, not satisfactory, and far more resources are needed. The productivity as well as the economic and ecological performance of organic farming cannot be discussed before the potential of organic farming is strengthened by national and EU research activities. Only with a adequate funding of research the potential of organic farming can be fully exploited.

 

On a national as well as on EU-level, research funds should be directed substantially towards organic farming in order to improve the economic and ecological performance of organic farming.

 

National or regional centres of competence are needed in order to provide and to maintain an appropriate quality of research (Niggli/Willer, 2001)

 

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State Support for organic agriculture in the European Union under Agenda 2000

 

Agenda 2000 is the reform of the Common Agricultural Policy of the European Union (CAP) for the period 2000 to 2006. With the rural development regulation it is possible to support organic farming with subsidies in various ways: agri-environment programmes, investment aid, marketing aid, regional development.

Most EU countries have made use of the rural development regulation by providing area payments. Some countries also support marketing and processing structures, investments and the establishment of demonstration farms. There is clearly a lack of information for farmers. The possibility to use the rural development regulation also for such purposes needs to be exploited.

It may be expected that after the Agenda 2000's mid-term review in 2003 more support to organic farming will be given.

 

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Action Plans

 

It has been found that subsidising individual farmers is not a sufficient incentive for conversion and that subsidies cannot guarantee the maintenance of organic farming methods in the long run. Therefore some European governments have developed action plans in order to promote organic agriculture. As part of these action plans, marketing of organic products, advisory service and consumer information is supported (Denmark, Sweden, Netherlands, Flanders, Ireland, France, some of the German federal states).

 

At the Conference "Organic Food and Farming - Towards Partnership an action" in Denmark, 10./11.5.2001 agriculture ministers from 12 European countries called for an European action plan for the development of organic farming and food.

 

The Copenhagen Declaration was signed by agricultural ministers and by IFOAM, by representatives of European farmers' association Copa, by the European association of consumer co-operatives Euro Coop, and the European Environmental Bureau. Within the next two years the European Action Plan should: analyse the barriers to and potential for further growth of organic production; present a market-based strategy; cover all aspects concerning the development of organic food and farming; analyse the relationship of the development of organic food and farming and the Common Agricultural Policy.

 

Following the Copenhagen conference on organic farming, in June 2001 the European Council of Agricultural Ministers agreed on conclusions on organic farming, inviting the European Commission to consider a European Action Plan for Organic Food and Farming. In recognising that organic farming was one way of achieving sustainable development, the conclusions also invite the Commission, the Member States and stakeholders to share ideas on what further action could be taken at European Union level.

 

 

 

Table 5: Action Plans for Organic Farming in the Countries of Europe

Compiled by Research Institute of Organic Agriculture (FiBL) and Foundation Ecology & Agriculture (SOEL). Status of Survey: February 2002, (Currently up-dated, 8.7.2002)

 

Country

Name of Programme

Target year

Important Targets Measures

European Union

non

Work on Action Plan currently in progress

Belgium - Flanders

„Vlaams actieplan biologische landbouw' -  Flemish Action Plan

2010

10 %

  • investment support

  • Support for individual advice in the conversion

  • A network of demonstration farms

  • Demonstration projects

  • Introduction of organic farming in the school education

  • Support of research

Denmark

„Actionplan II – Developments in organic farming“ (February 1999)

2005
  • 10 % Organic Farmers
  • 20 000 ha more than 1999
  • Trebling of Ecological Production

France

“Plan Pluriannuel de Développement et la Promotion de l’Agri­culture Biologique“ (Five-Year Plan 1998-2002)

2005
  • 2010 France as the leading European organic producing country
  • Conversion of 1 million ha and 25 000 farmers by 2005

Germany

„Bundesprogramm Ökologischer Landbau“

Federal Programme for Organic Agriculture

www.bundesprogramm-oekolandbau.de

2002-2003
  • 20 % organic by 2010
  • Support in the fields of
    • Agricultural Production
    • Processing, Trade, Marketing
    • Consumers
    • demonstration farms
    • new technologies and transfer
  • State Logo

Netherlands

„Plan von Aanpak biologische Landbouw 2001-2004“

2005/2010
  • 5% organic land until 2005
  • 10% organic land until 2010

Norway

„Plan of Action for the Development of Organic Agriculture“ (2000)

2009
  • 10 % organic land

Sweden

Action plan 2000

2000
  • 10 % organic land

UK - Wales

„Welsh Agrifood Action Plan for the Organic Sector“ (March 1999)

2005
  • 10 % organic land
  • Establishment of a national organic centre

Source

Country reports of www.organic-europe.net

 

 

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Case Study Germany

 

Germany aims at 10 % by 2005 and 20 % organic land by by 2010. At present 632'165 ha are managed organically by 14'703 farmers (31.12.2001). This constitutes 3,7 % of the agricultural land which is slightly more than the EU average.

 

If the area is to reach 20 % of the agricultural area, higher growth rates than so far be necessary Even though the German market is the biggest market in Europe in absolute terms, the market share is still small (1,5 %). The growth of the German market is not as high as in the neighbouring countries (only 10 % as opposed to 30 % in the UK) and per capital spending is very low in a European comparison: 33 Euro compared to 127 Euro in Denmark (Willer / Yussefi 2002, ITC 2001).

 

The reasons for this slow development in spite of the long history of organic farming in Germany can be seen in: the fragmented organic movement, low supermarket involvement, lack of political support (until 2001), lack of clear labelling, lack of support e.g. from the conventional farmers organisations or research institutions, lack of research, lack of dialogue between researchers and end users of research, lack of information for farmers and consumers, lack of organic advisors. Aiming at 20 % organic in a period for less than ten years is therefore a major challenge for the German organic sector and the Minister of Consumer Protection, Food and Agriculture has announced and implemented several measures to promote organic farming.

 

 

Even though none of these measures are only beginning to be implemented their announcement and the change towards a climate more pro-organic in Germany has already has many impacts: For instance the agricultural magazines have increased their information and articles on organic farming substantially. Sales of organic foods went up, more organic food can now be found in supermarkets, the organic sector has begun to restructure itself. In 2001 a growth of 16 % of the land under organic management had been realised.

Future

 

The area under organic management went up continually since the mid 1980s in the European Union. This is due to strong consumer demand and a growing market, the EU support through area payments, the implementation of EU-regulation 2092/91 and its amendments, farmers looking for alternatives due to food scandals and the BSE-crisis.

 

Strong political support is now given by almost all European governments, which was demonstrated at the European Conference on organic farming held in Denmark in May 2001. In order to obtain the targets which many governments have set themselves further efforts will, however, be needed, including full political support for organic farming.

 

These are, for instance, higher incentives for organic farmers, better use of the possibilities to support organic farming under Agenda 2000, more information, advice and demonstration for farmers, consumer information, better accessibility of organic products, development of marketing strategies, introduction of organic foods in public canteens, more funds for research, establishment of specialised organic research institutes and technical universities, market development, and integrated action plans for organic agriculture - both on an European and a national level. Continual monitoring of the conversion process is also important, including the identification of barriers and finding solutions to them. The use of the long-standing experience and competence of the private organic sector is a key factor for the future growth and development of organic farming.

 

 

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References