Best Practices for Organic Policy - What developing country - UNEP

Best Practices for Organic Policy
Leonard Mead, Chair of Organics South Africa, estimates that in the year 2005 there were about 200
certified organic farms in South Africa covering some 515,000 ha. Of this, he estimates that about
500,000 ha is natural veld (grass), and about 11,000 ha is Rooibos tea. Of the balance, 59 per cent is
fruit, 6 per cent essential oils, 4 per cent wine, and the rest vegetables 80 . The domestic and export
markets are both currently showing healthy growth.
Organic markets
The past five years have seen the development of a small but vibrant domestic market in South Africa.
Several supermarkets are actively promoting organic products, and some are supporting small farmer
producer groups 81 . However, the supermarkets tend to insist on exclusive supply to one market by a
farmer group, and are reluctant to provide meaningful developmental support to farmers, even though
they use their support of the farmers extensively in advertising campaigns. The organic export market
continues to grow steadily, with the main lines being Rooibos tea (to Japan), organic wines (mainly to
Europe) and subtropical fruits (mainly to Europe and the United States). Pack houses are inadequate
for current needs of the organic sector. Food processing is mainly developed for wine, soy, wheat and
fruit.
The table below gives a rough estimate of the value of the organic industry in South Africa. There are
only about 200 large and medium-scale farmers certified in the country, producing perhaps
US$ 16 million to US$ 19 million in (mainly export) earnings per year. Then there are a substantial
number of small commercial farmers, only a few of them certified. This sector represents a
tremendous potential for the growth of the organic industry, and will largely respond to the demands
of the domestic market. These farmers, like the large and medium sectors, comprise mainly white
farmers, but increasingly, emerging black farmers are showing interest in organic agriculture, seeing it
as a development of their indigenous knowledge systems, and also recognizing the potential of
certified organic production in opening up access to the marketplace. The category of emerging
farmers shown in the table represents the subsistence farmers, most of whom are not organic by
design, but rather organic by default. The estimated total value of organic produce is therefore
between US$ 30 million and US$ 60 million, but a big share of this is neither certified nor sold as
organic.
Table 13. Estimate of the value of organic produce in South Africa 82
Number per category
Intensively farmed area
and value
Total yield value/
category
100 large (500–5,000 ha) R5,000/ha x 200 ha = R1 million R100 million
100 medium (50–500 ha) R2,000/ha x 100 ha = R200,000 R20 million
5,000 small (5–50 ha) R1,000/ha x 10 ha = R10,000 R50 million
1 million emerging (0.5–5 ha) R200/ha x 1 ha = R200 R200 million
Sector organization
Four main farmer organizations exist in the organic sector. The oldest is the BioDynamic Agricultural
Association of Southern Africa. Organics South Africa is the largest organization and has now
established itself as a credible mouthpiece for commercial organic farmers. The Cape Organic
Producers’ Association is a small but highly commercial, and highly focused group in the Western
Cape. The Network of Community Organic Farming Associations works with small-scale emerging
farmers.
80
Key developments in the global organics market, and their potential for KwaZulu-Natal, keynote address by
Leonard Mead, Chair, Organics South Africa, 23 November 2005.
81
The Organic Journey, 2005. Woolworths (www.woolworths.co.za).
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The organic industry in South Africa, 2003. Dr. Raymond Auerbach, Director, Rainman Landcare Foundation.
R1 = US$ 0.16. Paper delivered to the Symposium on the Potential Contribution of Organic Farming to South
Africa’s Economy.
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