the world of organic agriculture - Organic Eprints

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The World of Organic Agriculture 2006
The Italian and French markets are the next most important in Europe, however growth rates
have slowed in these countries. Other important markets are in Switzerland, Austria, Sweden
and the Netherlands.
There is a small market for organic food in Central & Eastern Europe (CEE) with the region
comprising less than three percent of European revenues. Although the amount of organic
farmland in CEE countries is rising, mostly primary products like grains, seeds and herbs are
grown. There is a lack of organic food processing in the region with high volume of the organic
crops exported to Western Europe. Organic food companies export some of the resultant finished
goods back to the region. Demand for organic products is growing rapidly in countries like Czech
Republic and Hungary, especially in the country capitals.
8.3 North America
The North American market for organic products is the fastest growing in the world. Sales of
organic food increased by about 14 percent to 13 billion USD 7 in 2004. With healthy growth
rates continuing, the region is expected to overtake Europe and represent most global revenues
in 2006.
The USA has the largest market for organic food, valued at about 12.2 billion USD 8 in 2004.
Although organic fresh produce and dairy products comprise most revenues, all sectors are
reporting high growth rates. American consumers cannot get enough organic products and
manufacturers have launched organic versions of many popular products. For instance, organic
versions of American favorites like pizza, hot dogs, and peanut butter are now available in
retailers.
Increasing distribution is a major driver of market growth. The traditional retail outlets for organic
food were natural food shops like Whole Food Market and Wild Oats, however mainstream
grocery retailers now comprise most organic food sales. The range of organic products continues
to expand in supermarkets like Safeway, Albertson’s and Kroger. Even Wal-Mart, renown for its
low-cost products, has jumped on the organic bandwagon.
The Canadian market is also reporting high market growth. Sales of organic food & drink were
estimated to have reached 900 million USD 9 in 2004. As in the USA, a major driver is increasing
distribution with a growing number of conventional supermarkets launching organic products.
Demand for organic products is so high in USA and Canada that many industry sectors are
experiencing supply shortages. Producers are importing organic products from across the globe
due to insufficient production in North America. For instance, organic seeds and grains are coming
in from Europe and Asia; organic herbs & spices from Latin America and Asia; organic beef is
7 13 billion USD = 10.9 billion EUR (per 31.12.2005)
8 12.2 billion USD = 10.3 billion EUR (per 31.12.2005)
9 900 million USD = 760.2 million EUR (per 31.12.2005)