The outlook for growth in the global market for organic products is positive. However, the pace of growth is likely to be mixed, particularly in Europe due to economic instability.
According to experts of the organic products industry who took part in BioFach 2012 that had India as the ‘Country of the year, the demand for organic products could witness a slower growth in the UK and Italy. However, Germany and France could see a better growth rate.
The US is witnessing better overall growth this year and therefore, it could see its demand for organic products increased to a record $30 billion. This year, the market for organic products in the US could further grow to $31.5-32 billion, according to Ms Laura Batcha, Organic Trade Association of the US.
“The growth for organic products in the US is currently 10 per cent against 0.6 per cent for conventional food,” she said, adding that farmers' markets in the US increased 17 per cent 2010 – an indicator of growth in organic products.
Dr Helga Willer, Research Institute of Organic Agriculture (FiBL), Switzerland, said that cultivation of organic produce increased to 10 million hectares in Europe last year, while it declined in Asia.
According to Mr Amarjit Sahota, Organic Monitor, the UK, the area under organic farming is likely to touch 2 million hectares this year with Asian organic markets likely to grow approximately by 20 per cent until 2012.
RISE IN DEMAND
The promise for growth comes from increasing small and medium enterprises sector that is developing awareness of food quality and a cosmopolitan outlook. This has led to rise in demand for organic products in China and India.
Ms Diana Schaack, Agrarmarkt Informations-GmbH, Germany, said that the growth in organic food last year was helped by dioxin and e-coli scandals in Europe.
Dioxins that were reported to have been found in animal feed, pushed up demand for organic animal products, particularly, she said.
The E-coli outbreak during May-June last year changed consumer spending from certain vegetables such as cucumber to organic and conventional foods.
“The year 2011 saw a rebound in prices and production of organic farm produce. Fresh products will continue to dominate the organic market,” she said.
Dr Susanne Padel of the Organic Research Centre in the UK, said the area under organic farming dropped to 50,000 hectares in the UK from 1,20,000 hectares in 2009 due to faltering ‘political commitment'.
“There is stagnation in land being diverted for organic farming, while retail outlets are unwilling to stock organic products,” she said, pointing to the dropping demand.
France, the second largest market for organic products in Europe, has been witnessing a boom since 2008 and already four out every 10 French people consume organic food.
Brazil, too, could see growth in demand for organic products.
However, the growth rate will depend on how the European crisis is solved according to Mr Sahota.
Russia and the US could see healthy growth but much would depend on how supply can match demand since there was a growing imbalance with consumption.
“Food inflation will also have a role to play in growth of organic food,” said Mr Sahota.
mrsubramani@thehindu.co.in