Japan's QR Code

When Japan was struck by magnitude 8.9 earthquake last 11th of March 2011, several international organizations sent their assistance, calling for donations through the mainstream media and the internet. One interesting campaign, though not yet standardized in other countries like the Philippines was the utilization of the QR code1 that has appeared in various websites, personal blogs, Facebook, Twitter, almost everywhere. Example of the campaign designed by SET Japan (see image 1) links the QR code (short for Quick Response) to the Japanese Red Cross site as every smartphone and tablet users could directly make donations from the comfort of their handsets. International news organization CNN, has also began testing QR code on-air that would also direct people to a site where they can help Japanese earthquake and tsunami victims (see image 2). The QR code not only becomes a medium to help the Japanese but also made people outside Japan realized its practical usage, flexibility, and more importantly, education with regards to the application of the technology.

Image 1. Help Japan Now QR code by SET Japan 

Image 2. QR code on-air by CNN

So what is a QR code? It may appear to other people as crossword puzzle or a blown-up pixels. Yet others who are already familiar with the code may simply describe it as bar code on steroids. Invented in 1994 by a Japanese company called Denso Wave, a subsidy of Toyota, QR code is a specific matrix barcode (or two-dimensional code), readable by dedicated QR barcode readers, camera phones and tablets. The code consists of black modules arranged in a square pattern on a white background. The information encoded can be text, URL or other data2. The inventor of the technology has elected not to exercise their patent rights on QR codes which has encouraged their widespread use. Japan has been using QR codes in their wide variety of applications, such as manufacturing, logistics, and sales applications. In terms of common everyday use, QR code is being printed on their paperback spines, rental video cases, and sushi plates used in revolving sushi bars. It is ubiquitous in Japan as it already lost its novelty value that have simply blended into the background, just like the other common symbols such as traffic signs3.

As smartphone usage are gaining momentum in the global market and QR scanning application are standardized inside these handsets, it may very well generate interest, obviously not in Japan but in other countries such as the Philippines. In the United States, QR codes have become mainstream in marketing that have been integrated into both traditional and interactive campaigns. QR codes can be seen in their magazine and billboard ads, storefront displays, business cards, event ticketing and tracking, direct mail campaigns, websites and even on T-shirts just to name a few. In New York City, Mayor Michael Bloomberg has announced last 22nd of February 2011, the use of QR codes on building permits. This is to provide New Yorkers with easy access to information related to buildings and construction sites throughout the city. All New York permits are expected to have QR codes by roughly 20134. Starbucks has also applied the code since 2009 in their Starbucks Card Mobile iPhone app as an alternative payment for a cup of coffee. A barista would just simply scan the QR code in the smartphone’s screen when it comes time to pay up. As of today, there are only less than twenty Starbucks stores that have implemented the technology in the US.

To clearly illustrate the concept of QR code, you may try this very simple steps and perhaps your Facebook page (or a personal blog) can be used as your testing ground:

1) Open your Facebook page, then copy your URL address.

2) Go to this link to generate your own QR code for free at Kerem Erkan site.

3) From this link, paste or place your Facebook URL address in the Web Site URL field, other fields may provide you options such as color preference, pixel size, etc.

4) Then click Generate Code, as your personal code would only take a few seconds to produce. You may drag your QR code result to your desktop (for sample output, see image 3).

5) Open the QR scanning app from your smartphone or tablet. If you still do not have the app, you may download this for free at RedLaser site. The application is available for Android, iPhone, Blackberry and Symbian phones (or tablet).

6) Use your smartphone’s (or tablet) camera to focus the code in your screen.

7) The application will recognize the code and automatically open up the link to your Facebook URL address, video or image in your phone’s browser.

Image 3. Sample of QR code which is a link to this blog,

Tech Pinoy Trend. The code was generated at

Kerem Erkan's site.

The QR code is a 15-year old technology, but its widespread use is still in infancy. Some marketers who adopted the QR code early in their campaigns had failed primarily because most people simply do not know what QR codes are and how to decode them. Another factor is that QR codes are not the only 2D code standard available. There are others such as the semacode, shotcode, and the Aztec code, and the data matrix code5. QR codes, however, are more effective than these other codes because of the availability of the QR code scanner in smartphone.

Is the Philippines ready for QR code? The increasing sales of smartphone units which is around 40,000 per month according to Ayala-led Globe Telecom followed by the rising demand for mobile broadband service6 may contribute to ease of penetration of QR code in the country. Another factor is the inclination of Filipinos to novelty that would give them other ‘fashionable’ means to access social networking sites such as Facebook. Based from the latest survey, the country jumped from sixth to fifth spot in the roster of Facebook users globally in the last three months alone, with over 22.5 million members7. This would allow awareness campaign for QR code a clear head start already. Likewise, the country is in the fourth largest number across Asia in Twitter with over 3 million users. No doubt that QR code would be easily grasped by Filipinos, not to mention personal prints for shirts, mugs and even dog tags that would link to their Facebook or Twitter page.

The QR code would also provide opportunity for the country’s micro, small and medium enterprises (MSMEs) in terms of shipping control, logistics, property inventory system, etc., as the technology is basically at minimal cost. Like in the logistics management of food products, data such as product code, expiration date, and manufacturing history, are encoded into QR code similar to the process done at Chukyo Coca-Cola Bottling in Japan. This would enable first-in first-out execution based on expiration date control as well as improves traceability based on manufacturing history control which is among its primary benefits.

Other practical uses are the Access Control System which encodes into QR Code the personal identification data, including company names and individual names, and Property Inventory Control System which encodes into QR Code the property data, including model numbers, user names, and usage locations. These QR Code can be printed to any QR Code compatible printer. There are also Windows compatible software that can be used to create QR Code for printing.

The effectiveness of QR code used for marketing is still under deliberation. There is a June 2009 study from NetAsia Research that showed 76 percent of the Japanese have or to be more precise “know they have”, the ability to access QR Codes. Obviously some use the facility more or less than others but the average across this group is only 1.24 times per week. The main reasons given for scanning the codes are also enlightening. There are really only three, 31.6 percent to use a coupon, 30.9 percent to apply for a special promotion and 22.7 percent to have more information on a product3. They may generate curiosity or local publicity at the moment but QR Codes on real estate signs, business cards, product packaging etc., are not going to increase sales just because they are present. QR Codes that provide deep discounts, free samples, exclusive content etc., may increase sales but the number of scans and conversions will depend on the value of the offering.

References:
1 QR Code is a registered trademark of Denso Wave Incorporated
2 Wikipedia, wikipedia.org/wiki/QR_code
3 The QR Code Hype Cycle by Roger, 2d-code.co.uk/qr-code-hype/
4 TechCrunch, “New York City to Put QR Codes on all Building Permits by 2013” by Lora Kolodny, February 22, 2011
5 BeQRious, “Real World Examples of QR Code Fails”, beqrious.com/show/real-world-examples-of-qr-code-fails
6 abscbnNews.com, “Globe Expects Increasing Demand for Smartphone”, by Lenie Lectura, Business Mirror, 25 November 2010
7 All About World, “Top 10 Countries with the Most Facebook Users in the World 2011”, by Shankar, 03 March 2011

One more thing...

Once people become accustomed to the QR code,

its applications are limitless just like the signage

on the above photo.

Interview with Application Developer Yves Gonzalez (Part 2)

TPT: Are you planning to go full time?

YG: This year, not yet, because I am still trying to adjust here in the government office, but I already want to have my own office space instead of going to Starbucks. My vision actually is to build a school one day where you can train iOS developers. There’s good money in iOS only if you will shift that call center mentality by teaching these young people to develop an app, which is not that hard. Just give them the vision and direction, set the quality, and if that happens, for sure, you would be able to help a lot of people.

TPT: Do you need to be an IT or a graphic artist?

YG: There are different roles, like in advertising, you need to have an artist, otherwise you would come up with a substandard looking apps. There was no app that became popular without a graphic artist. As you go along, if you want to excel, you need to have a graphic artist because not all of us are artists, but there are less developers and more artists. I know someone locally, she designs apps for foreign clients, just graphics, and she is earning well. In general, the weakness of developers all over the world is in the interface design. They do not have in-house designer, and I think this is also one of the advantages of Giro Apps, who does not only concentrate in the development but also in design. Just before spending a single day on coding, my designer already has the design so that the client would already know how it would look.

TPT: Barrier to entry?

YG: Actually, the number one barrier to entry is you need to have a Mac. Still minority are using Mac. Number two is the US$99 (PhP4,290) to download the SDK or the Software Development Kit. There are a lot of Filipino youths, I think given the proper training and direction, would be very good developers and they would really earn from it. In our case, we are turning down projects left and right because we do not have time, but imagine if there are already pool of developers. Let’s say the client only wants a very simple app, just spend one week on it and earn at least US$1,000. So the more the market matures, like more iPads and more iPhones, a lot of very good apps would come out.

TPT: Would that mean, the market is not yet matured in the Philippines?

YG: In iPhone, the market is already matured but not yet in iPad. If you are going to build an iPad app, the market is still small. In our case, we are planning to make a Law App but we are still waiting for that market to mature. You can only launch once and when you launch, that is the time that you can sell a lot, but if the market is not yet matured, you won’t make that much. If most lawyers and justices are already using iPads, then we can release the Law App. Since I myself is a lawyer, I already tasked myself to do the Law App and nobody else would do it because for sure, others would do different apps. The Law App is one of my visions ever since I was in law school.

Image 4

TPT: How much is the cost to develop an app, like if I would want to get your services?

YG: The cheapest would be US$1,000 and that is at least two to three functionalities. There is an application that we did, Golf Philippines (see image 4), that one is US$1,000. It has searchable table, you have the detailed view of the establishment, and you have the mapping. But that would also depend on who is doing it. Others may charge you for PhP30,000 or PhP20,000, I do not know.

TPT: How about royalties? Let’s say the app was placed in the iTunes?

YG: I have not yet done client app that is being sold in the iTunes and probably would not accept it. Most of our clients just want to have an app for promotion purposes only. We’ve not yet done an app for profit sharing. With regards to our process, I would give you a quotation, included there is the six months support, meaning, minor updates, tweaks or some minor problem. But if you want to have additional new features, let's say an Augmented Reality feature, we would have an expansion contract. But within those six months, if the users of your app would have problems, the email support goes directly to us and we’ll take care of the troubleshooting. A good app with a very rich content can cost you about PhP200,000. In the U.S., the minimum charge is at US$5,000 and this is just an acceptance fee. We only cater to local clients because we tend to really talk to them and get the feel of what they want. We had inquiries from international clients that we had to turn it down because we are having a hard time talking with them.

TPT: Your company is already formalized?

YG: We are SEC registered, we issue receipts, we are a formal company. We have investors and there is somebody who is willing to invest big. But my advise is not yet, we have to wait for the market to mature and if we launch, we will launch big.

TPT: Yves, what are you doing here in MMDA? Are you an IT guy?

YG: When I got here, I was a spokesperson but now I handle multiple functions. I am in-charge to resolve the traffic in EDSA and fortunately, I am also in-charge of the technology, I call myself the technology evangelist, meaning, I am the one who is always advocating the use of technology to make our work better. For example, the CCTV’s, without it, I would not know what is going on. If you are in-charge of EDSA, you cannot be God who knows what is going on everywhere, so you have to use the technology. Now, I can see what the traffic situation is, if there is traffic, I know where it is and who to call. I am also in-charge of the MMDA twitter team, that’s a mixture of two duties, traffic and technology. I am also in-charge of emails, communications with the public handling complaints. In a way, it all works together, for example, this app that I am doing for MMDA which our company is developing for free, is actually useful for me as a person who is monitoring EDSA. Again, we will go back to the mentality that we make apps that we want for ourselves. If you don’t make it, no one else will. I conceived this traffic app two years ago when I was still not connected with MMDA. When I got here, I found out that they have traffic data but only written in a white board. So when somebody asked for a traffic update, they would just read the data from the white board, but that is not good. The moment you erased it, it’s gone. So I immediately started working on a project that would digitized the traffic information and we are about to launch that very soon. So when you digitized that traffic information, you already have that underlying data which is what you need to create the app or website that would utilize that data and present it to the end users. A paradigm shift would also happen to the traffic reporters of networks and radio stations, instead of calling MMDA and asked for the traffic updates, they would just read the traffic app which is actually updated every 10 to 15 minutes.

TPT: Would you have a company in mind, probably in the U.S. or in other parts of the world where you look up to as a model, for example, with best practices?

YG: In the development industry, well first there is Apple. I think that company is Tapbots. When they make an app, it is all down to the very last detail. They make a lot of money in apps, because everyone knows that they make quality and useful apps. The design elements even have sounds to it. Like when you press a button, you would hear a hissing sound. They really spend time on developing the apps and we are trying to emulate them as much as possible.

TPT: The school that you were envisioning, probably, you can inject Apps Development course in La Salle (College of St. Benilde) for example in their Multimedia Arts?

YG: I think U.P has, probably the old school route would also be fine. But for me, I was thinking that with the school establishment comes with a baggage. I am more of a believer that this is something new and you are not supposed to rely on old schools. Otherwise, you will carry the baggage along with that old school mentality. So, probably every once in awhile, you would invite international resource person to give lectures on apps development. These developers are very helpful anyway, what you have to do is just to fly them here and provide the hotel accommodations. It would be an honor for them as well as bragging rights that they were able to give lectures internationally. It is very good to imagine that in the future, you have this school of developers and just for a year, the first graduates would compete each other to develop very good apps. The more they compete each other, the quality of the apps would keep on improving.

TPT: How did you get into developing apps and your advise for would-be developers?

YG: Well first, I started out as an Apple user, then here comes iPhone 1, where my best friend who became my partner will purchase a unit which I myself would unlock. Since, I was the one delivering the unit, my client would ask me, what if it stopped working, who is going to fix it? So, eventually, I made my career out of it and in 2007, I made my first million just unlocking iPhones, spending my whole day at the Rockwell. So when the iPhone became official in the Philippines, my career died down, then by that time, the SDK (Software Development Kit) was also released. I have not yet started with that until at certain point in 2009, while I was studying for the Bar Exam, I concurrently studied the iOS. So I did the basic zip code app, I was doing that during the bar review, so that after the review, I would have something else to do. Well, you need to start somewhere, learning the components one at a time, like the tables, scroll view, then if you have already mastered that, then go to mapping. In 2010, after my Bar Exam, I released Tawag Pinoy. The Giro Apps was incorporated in that same year but prior to that, we have already released the ZZips and Enjoy apps. These are free apps which started out as our practice ground. I am just lucky that Greg (Reichow) was there who became my mentor. If I am encountering some roadblocks in coding that I can no longer solve through googling, he is the one whom I approach by email. Then he will email back with the solutions and I think that is my advise for the developers, you need to have a mentor, someone who will get you through those moments that even Mr. Google cannot answer and that is a very important factor.

With Yves Gonzalez at his MMDA office in Makati City

For more information about Giro AppSolutions, Inc. and their products, you may visit Giro AppSolutions, Inc.

Interview with Application Developer Yves Gonzalez (Part 1)

“In today’s world it is easy to be first, but it is different to be the best.” One of the Philippines’ emerging application developers for the Apple iPhone and iPad platforms, Yves Gonzalez speaks with Tech Pinoy Trend.

Image 1

Having worked as application developer on utility apps for Apple, it is hard to imagine that Yves actually started off as an iPhone jailbreaker in 2007. Basically, the most common benefit of unlocking those phones is to break away from the exclusive carrier of service that is locked to the iPhone oftentimes purchased outside of the Philippines. Jailbreaking would immediately make the phone compatible to a local network’s SIM card. The owner would then reap the benefits and savings as well as the many more apps that can be installed offering more options and features. Eventually, when Globe Telecom become the official network carrier of iPhone in 2008, his “career” in unlocking iPhone has naturally died out.

On June 2009, Yves founded Giro AppSolutions, Inc., building apps exclusively for the Apple iPhone and iPad. Together with his partner, Laura Noel, who is the company’s user interface and designer, had made their very first app, ZZips Philippines (see image 1), a mobile resource for Philippine area and zip codes, which continues to be one of the Top Reference apps in the PH AppStore. Their second app, Enjoy Philippines (see image 2), is a reference app that provides Enjoy members guide to all the benefits and privileges of establishments that are part of the Enjoy Program. It is one of the Top Lifestyle apps in the PH AppStore. Both of these apps are available in the Apple iTunes PH AppStore for free. Their very first paid application is the Tawag Pinoy (see image 3) launched last year 2010, an address book app that automatically filter and sort the user’s contacts into three major networks, i.e. Globe, Smart and Sun, as well as landlines.

Tech Pinoy Trend: It is a lean team at Giro Apps, you worked as the developer and another partner, who worked as designer?

Yves Gonzalez: There’s a lot of developers who don’t have a designer and it is very obvious when a developer company does not have a designer. Take for example the ABS-CBNNews.com app for iPhone (newly released last 16 March 2011), you may noticed that the icon that they have used is not yet Retina Display Ready. When you say Retina Display Ready, you make apps for iPhone 4 which is four times the pixel count from the previous iPhone models. Any iPhone 4 users would see the benefit on the clarity of the graphics and would not just view a blow-up version of it. This automatically shows that any decent designer would not allow an app to be released without a Retina Display Ready version. So obviously, the one who made the app is an engineer and not a designer.

TPT: There are developers who are more inclined to using HTML and CSS since this can also be read easily by iPhone or iPad.

YG: The developer can also take that route but it becomes a website that pretends to be app. It is different when you do it in SDK or the Software Development Kit from Apple. These tools are made specifically to build the apps.

Image 2

TPT: What is your company’s philosophy in doing those applications?

YG: In today’s world it is easy to be first, but it is different to be the best. That’s what a lot of people are doing, trying to be first even if their product is crap, just for the sake of being first. The iPad should teach you that lesson. Microsoft was the first in tablet, but look what happened. They do not put their heart into the product. In Giro Apps, we may say that our apps are few because, 1) we do not build apps that we would not use for ourselves and we also don’t accept app just for the sake of having an app. 2) we do not make apps that we would not do great. All the elements from the design, functionality, up to the last details like determining the locations for each of the functional buttons in the design interface, we give much attention to it. Although, there is a trade-off, others may have probably been earning well, doing multiple apps at the same time just for the sake of doing it without paying much attention to details, or taking that Microsoft route so to speak. In our case, we do the Apple way, that if we cannot do it well or in an excellent manner, we will not do the app at all.

TPT: What is the average number of projects that you handle?

YG: Because of our mentality, we only accept one and maximum of two simultaneous projects per development cycle. We never worked on three projects at the same time. Currently, we are working on two projects which includes the MMDA (Metropolitan Manila Development Authority) app. Those two projects have similar functionalities, but we made it a point that their respective designs and user interface are totally different. Currently, my sole focus are on those two projects, yet the moment I accept a third one, it would already take away my time and attention particularly that I am also busy working with MMDA agency.

TPT: Most of your projects are released for app store?

Image 3

YG: There are some client apps for release in app store and there are client apps applied for their internal usage only, which they usually use for promos. This is what we did for San Miguel and Globe. If you want to earn as an app developer, right now, the money is in the internal client apps. It is easier to earn in the internal because once you have produced the game app for their promo purpose, that’s it, you’re done. There is no need of updating since the project is seasonal by nature and they have budget for it. It would only take at least 3 to 4 days to develop the app. Yet, even with internal client apps, I have seen competitor’s apps which noticeably has no design. Obviously, just for substantial compliance, you may notice that the quality of their apps, particularly in the buttons, have used the standards from the Xcode application, drag and drop style. In some cases, that would be fine but it is better if you make the buttons yourself, giving more time designing it.

TPT: Who are your top local competitors, for sure there’s a lot, and what is your selling proposition as compared to these competitors?

YG: In the Philippines, there are no more than ten iOS development companies. Currently, we don’t see anyone as a competitor and so far, we have not seen anyone who really pays that much attention to details. I won’t name names but you would see it in the list of the PH App Store. The company that I admire is MangoCode, run by Greg Reichow, a foreigner living here in the Philippines who does quality apps. He became my mentor and learned a lot of app development from him. He is not a competitor, and in fact, he gives me clients that I had to refuse due to workloads. Another one which we also have high regard is Kuyimobile company. Its main focus is on games, and it is noticeable that they give time developing the apps. They do it because they really love doing it. On the other hand, apps based on pdf file is a shortcut and you will not win any awards by putting up your content on a pdf or jpeg style. So, for substantial compliance, just to tell your boss that your company already has an iPad app, that would be fine. But if you want to tell the world, that you have an iPad app, and which has to be good, you need to spend a lot of time developing it. The advantage that our company have over our competitors in case that a potential client asks me? I would tell that we are the only company that goes to WWDC (Apple Worldwide Developers Conference*). I was the lone representative of the Philippines last year and we are that serious. If you are really serious with your apps development, you will go, because you want to learn as much as you can, direct from Apple itself and then you get to meet the other developers. So for us, which we started last year, we go to the conference and we are planning to go again. If you are really that serious as an iOS developer, you should go.

TPT: There are a lot of apps being developed in the U.S. as well as in Europe, so what do you think would be the trend here in the Philippines?

YG: What I can see is that there will be a lot of clones, the mentality of just to produce an apps. In Giro Apps, we are happy that for every apps that we made, we hope to change the world positively or at least change the development scene by introducing new innovations. Here in the Philippines, we were the first to have an app with Google maps, we were also the first to introduce Augmented Reality. It is a map that utilizes compass plus GPS. Nobody is still using gyroscope in local apps, because it is more on gaming, if ever, Kuyimobile may take advantage of that for their game apps. Ours is more of a utility or useful apps where our company is mainly focused.

*The Apple Worldwide Developers Conference, commonly abbreviated WWDC, is a conference held annually in California by Apple Inc. The conference is primarily used by Apple to showcase its new software and technologies for developers, as well as offering hands-on labs and feedback sessions. The number of attendees usually varies between 2,000 to 4,200 developers; however, during WWDC 2007, Steve Jobs noted that there were over 5,000 attendees. WWDC 2008–2010 were capped and sold out at 5,000 attendees (5,200 including special attendees). Reference: Wikipedia

Fukushima: What it Means to the Philippines?

Last week, 11 March 2011, at 2:46 PM (local time), Japan was struck by the largest recorded earthquake in its history off the coast of northeast city of Sendai. It was logged at 8.9 on the Richter scale that knocked out the electrical grid powering Japan’s Fukushima Daiichi nuclear plant facility. This was followed by a powerful 30-foot tsunami triggered by the earthquake that washed away the plant’s diesel fuel tanks flooding its critical switching gear. These emergency diesel generators were supposed to provide the power needed to keep water from pumping to cool its nuclear fuel rods (even if the reactor was shut down since the fuel still gives off heat). When the pumping failed, it caused its water to boil and created a steam which then heated the rods further and melted its zirconium alloy casings. The zirconium alloy reacted to the steam which then created a highly-volatile hydrogen gas that eventually exploded, causing the outer building of the plant blew off its roof.

The Fukushima incident has also triggered the more than two decades debate in the Philippines whether to revived the already mothballed Bataan Nuclear Power Plant or not.

The demand from the environment organization Greenpeace yesterday (16 March 2011), when they called on the Aquino administration to abandon all its nuclear power plans including those currently included in the Philippine Energy Plan and the Energy Reform Agenda has challenged the statement provided by the Department of Science and Technology (DOST) chief, Mario Montejo, from his yesterday’s interview at ANC’s (ABS-CBN News Channel) Headstart.

According to Secretary Montejo, he supports the nuclear power option since it is still a viable source of energy for the Philippines despite of the partial meltdowns of nuclear reactors in Japan. "Nuclear power is a safe, economical source of power. You have to look at it in relative terms. Our power rates are too high. The only way to bring it down is to use nuclear power," he told ANC's Headstart. Secretary Montejo also said that the Bataan Nuclear Power Plant (BNPP) was designed to withstand an earthquake that would cause higher ground elevation than the magnitude 8.9 earthquake that hit the northeast part of Japan last Friday. "The assumption is, the BNPP is much stronger than the one in Japan," he said. He also added that the BNPP would need retrofitting to upgrade its technology using the lessons learned in the Japan incident1.

Secretary Montejo’s views were supported by the director of the University of the Philippines-National Institute of Geological Sciences (UP-NIGS), Dr. Carlo Arcilla, also during the interview at ANC’s Headstart2. He said that the Bataan Nuclear Power Plant (BNPP) is much safer than the Tokyo Electric Power Co. Fukushima Daiichi power plant in Japan because according to Dr. Arcilla, the plant is a very old nuclear power plant that uses boiling water reactor (BWR) technology that was used in the 70s. On the other hand, the nuclear power plant in Morong, Bataan uses pressurized water reactors used in many nuclear power plants in France and the United States.

Dr. Arcilla also said that there is an exact replica of the BNPP in Japan which up to now has been running properly since 1983. His own studies also showed that the BNPP was not built on an active fault. However, one could be near the plant. He also added that the only thing that damaged the Fukushima plant though it withstood a massive 8.9 earthquake was the 30-foot tsunami. The BNPP is built 18 meters above sea level, which is still higher than the 30-foot tsunami that struck Japan.

Currently, the Philippines has the highest residential power rates in the world which is at 18 US cents per kilowatt-hour which overtook Japan at 17 cents, followed by Singapore at 15 cents, eight in Thailand, seven in Malaysia, five in Indonesia, three cents in Vietnam, and five cents in Indonesia. In terms of the commercial rate, it is 14 cents in Singapore, 13 in the Philippines, 12 in Japan, eight in Thailand, seven in Malaysia, six in Vietnam, and five cents in Indonesia3. Again, Japan is in the top 3 while the Philippines is in the second spot next to Singapore which has the highest commercial power rate in the world. Now we would wonder, Japan, which has 14 nuclear reactors placed all over their country is still among the nations that has the highest residential and commercial power rates? These then would challenged the claims of Secretary Montejo as well as Dr. Arcilla that the BNPP would lead to lower power rates?

Dr. Arcilla also said that nuclear power is the cheapest to produce in the entire world since it is not reliant on fossil fuels such as coal and oil as well as uranium is readily available. The Philippines is very much dependent in oil importations which is currently at US$135 per barrel for diesel albeit similar scenario would take place for uranium in case that the Bataan Nuclear Power Plant will be in its full operation. Importation from uranium-rich countries like Canada, Australia, Kazakhstan, Russia, Nigeria, Namibia, and Uzbekistan would again prompt the country in its dependence with the said primary resource for the nuclear power.

The 2007-2035 Philippine Energy Plan released by the Department of Energy states that the Philippines - a net energy importer - must consider a renewed nuclear power program amid oil price volatility. With the said proposal, the Aquino government is not keen on reviving BNPP due to safety concerns that also made more certain with the nuclear reactor incident in Fukushima.

To be continued...

References:
1 abs-cbnNews.com, DOST chief still supports nuke power option, posted by David Dizon, 16 March 2011
2 abs-cbnNews.com, Bataan nuke safer than Fukushima plant: UP-NIGS chief, posted by David Dizon, 17 March 2011
3 eia.doe.gov/emeu/international/elecprih.html. As of February 2011, the Philippines has the highest cost, not just in Asia, but in the world, philstar.com/Article.aspx?articleId=660035&publicationSubCategoryId=63

A Call to Scrap All Plans for Nuclear Power

Environment organization Greenpeace* reiterated their position today, 16 March 2011 on their stance against reviving the Bataan Nuclear Power Plant. They called on the Aquino administration to abandon all nuclear power plans, including those currently included in the Philippine Energy Plan and the Energy Reform Agenda, and instead focus on achieving long term sustainable progress through safe and renewable energy and energy efficiency technologies.

The environment organization also challenged legislators, particularly those who have just this week reversed their pro-nuclear stance, to author a bill that would declare the Philippines a nuclear energy-free zone.

“Our thoughts remain with the Japanese people, who in aftermath of the earthquake and tsunami are now faced with a dreadful situation, where instead of being able to plough all resources into rescue and relief efforts, the government is dealing with a crisis caused by the inherent and inescapable risks of nuclear power,” said Amalie Obusan, Climate and Energy Campaigner of Greenpeace Southeast Asia.

Ms. Amalie Obusan, Climate and Energy Campaigner
with Mr. Tara Buakamsri, Campaigns Director,
both of Greenpeace Southeast Asia

“It is unfortunate that Philippine nuclear proponents need a tragedy such as the one unfolding in Japan, for them to reflect on their dangerous propositions. But they should go beyond merely statements that they are reconsidering their position on nuclear energy, or are putting a moratorium on their nuclear proposals. Nuclear power should be removed from the country’s current and future energy plans: it should be deleted from the energy agenda, and there should be legislation to block all future nuclear proposals,” she added.

Nuclear proponents in the Philippines have been trying to promote the technology with claims that nuclear power is ‘safe,’ and that it is a ‘cheap’ source of electricity. But the statements from the nuclear lobby are more rhetoric than reality. Nuclear power has been proven to be an economic and environmental disaster around the world, aside from threatening peace and stability, and shrouding communities residing near nuclear power plants and waste sites under constant fear of accidents.

Japan, which has 54 nuclear reactors (eleven of which have been shut down since the quake), still has one of the highest costs of electricity in Asia1. France, which operates 58 reactors that provide 83 percent of the country’s electricity needs, is the largest nuclear energy user, but looking at its economic development for the last 40 years with comparable countries that have made very different energy choices reveal that no competitive advantage can be attributed to nuclear power2.

In the Philippines, the lack of a nuclear safety framework, which include legal and governmental infrastructure, radioactive emergency response and management systems, protocols on radioactive materials transport and nuclear waste management, and accident liabilities, are questions that nuclear advocates have never addressed.

“After more than half a century of study, development and use, nuclear technology still cannot guarantee energy security, much less the safety and health of people and the environment. Nuclear energy is inherently dangerous and an expensive distraction. Progress can only be achieved through clean renewable energy, unhindered by dirty, dangerous and finite fuels. The government must phase out both nuclear plans and fossil fuels as soon as possible, and invest in renewable energy and energy efficiency technologies that are not only environmentally sound, but also affordable and reliable,” said Obusan.

References:
1 eia.doe.gov/emeu/international/elecprih.html.  As of February 2011, the Philippines has the highest cost, not just in Asia, but in the world, philstar.com/Article.aspx?articleId=660035&publicationSubCategoryId=63
2 cleantechasiaonline.com/philippine-bataan-nuclear-power-plant-revival-lessons-french-experience; global-chance.org/spip.php?article89

Greenpeace is proposing a roadmap targeting 50 percent RE and 20 percent EE by 2020 for the Philippines. greenpeace.org/seasia/ph/What-we-do/Climate-and-Energy/The-solution-an-Energy-revolution/

*Greenpeace is an independent global campaigning organization that acts to change attitudes and behavior to protect and conserve the environment and to promote peace.

Building the Future in Organic Farming (Part 4)

The organic industry globally has achieved compounded growth of 23 percent per annum for seven consecutive years, while the natural and organic cosmetic sector grew by a massive 39 percent in 2001 alone. Recent market research has shown that consumer demand for organics is growing rapidly worldwide. The global sales of certified organic products is expected by the UN Conference on Trade and Development to increase to 52 billion euros by 2012, up nearly half from the 30 billion euros in 2006, in turn a 20 percent increase over the previous year. Moreover, sales in the personal care market globally, including natural personal care, reached US$122 billion in 2000 and are growing at 1.6 percent. The trend towards natural ingredients is running through every segment of personal care with sales in the USA in this area reaching US$1.56 billion in 2001 and growing at 10 percent. This segment is expected to grow 6 to 7 percent annually over the next few years.

Consumer sales of organic products in the US reached US$5.6 billion in 2000, a rise of 19 percent from 1999. The organic segment is worth between US$13-US$18 billion last 2005. Natural Personal Care Market climbed to US$7.9 billion last 2009. In Europe, research across its seven countries found that organic spending would nearly double over the next 5 years. In 2006, 58 percent of its European consumers chose to use organic products. Japan on the other hand has the largest per capita consumers of organics in the world and are substantial importers of organic consumer products. Japan had a national market value of US$1.5 billion in 1998 and has a current estimated value of US$3.2 billion. The majority of organic products in Japan are distributed through a 'tei-kei' arrangement, which is a type of cooperative1. In the Philippines, as mentioned in Part 2 of this report, estimate demand for organic products would outpace local production which is expanding at approximately 10 to 20 percent annually valued at PhP250 million in 20002.

Industry associations consist of NGOs, SMEs, and farmers become the key players in the growth of organic agriculture sector in the Philippines. Based from the paper by Girlie Sarmiento entitled ‘Organic Agriculture in the Philippines - A Country Report’ dated 12-15 December 2007, many of these organic agriculture advocates and practitioners organized themselves into groups and contributed to the promotion of organic agriculture as a sustainable farming system. This can be traced back in the eighties where the existing movement at that time captured public attention. Although the term ‘Sustainable Development’ was already in popular use, the concept of organic agriculture was not yet well known.

The launch of a program on organic agriculture and appropriate rural technology in 1980 by the Farmers’ Assistance Board (FAB) captivated the interest of other advocates, and soon similar projects were established in various parts of the Philippines. New farming technologies emerged such as bio-dynamic, Low External Input Sustainable Agriculture (LEISA), Sloping Agricultural Land Technology (SALT), etc. as alternatives to Green Revolution technologies which was perceived as faltering in its aim to propel the agriculture industry forward3.

Some of the key players in the Philippines are: MASIPAG (Magsasaka at Siyentipiko Para Sa Pag-unlad Ng Agrikultura or Farmers-Scientists Partnership for Development, Inc) is an NGO, and one of the oldest organizations engaged in sustainable agriculture. MASIPAG provides services through farmer-to-farmer extension. MASIPAG is best known for its rice varieties, known as MASIPAG rice varieties throughout the country. MASIPAG has a total of 456 base peoples’ organizations, 42 NGOs, and 15 individuals in its pool of researchers/scientists.

OPTA (Organic Producers Trade Association) was established in 1995, and its members are traders, producers, academics, advocates and consumers. OPTA is active in the domestic market, and distributes products ranging from fresh to processed products. However, the majority of their products have not yet received organic certification. OPTA operates a cooperative store in Quezon City.

VCOP (Virgin Coconut Oil Association of the Philippines) is an organized association of producers and traders, established in 2004. The VCOP promotes the industry’s development in partnership with the DTI particularly when they started participating in the Export Development Council (EDC) Group under the National Cluster Team.

Other new players emerged as organic agriculture became more popular due to various promotional initiatives, training programs, conferences and advocacy. Among these are: NISARD or Negros Island Sustainable Agriculture and Rural Development Foundation, Inc. whose vision is to make Negros Island the “organic food basket of Asia”. Another NGO engaged in organic agriculture development is PDAP or the Philippine Development Assistance Program with its banner PRIME or Promoting Rural Industries and Market Enhancement Program. It supports the sustainable development of small and medium enterprises and rural industries such as organic rice, sugar and seaweed. Others are ALTERTRADE; AVDF (Alliance of Volunteers for Development Foundation); SIBAT (Sibol ng Agham at Teknolohiya) and some church-based organizations (social action centers)3.

References:

1 Certified Organic Skin Care Products, hubpages.com/hub/Certified_Organic_Skin_Care_Products

2 Canono, J.F. Philippines Organic Products, Organics Market Brief 2000. Paper prepared for Foreign Agricultural Service / Global Agriculture Information Network of the USDA

3 Organic Agriculture in the Philippines - A Country Report by Girlie Sarmiento, December 12-15, 2007

Building the Future in Organic Farming (Part 3)

The 2011 national budget of the Philippines, also known as the General Appropriations Act of 2011 was signed into law by President Benigno Aquino III last 28th of December 2010. The said national budget is 6.8 percent higher than the 2010 budget of PhP1.540 trillion (See Chart 1). It represents 18.2 percent of the projected Gross Domestic Product (GDP) this year. The approved budget assumes revenues of PhP1.41 trillion, or 15.6 percent of GDP in 2011, and disbursements of PhP1.70 trillion, or 18.8 percent of GDP, lower than the 19.5 percent last year1.

Chart 1

Amongst the top ten government departments receiving the biggest allocation from the approved PhP1.645 trillion budget, five of which were part of the National Organic Agricultural Board. The said departments are: the Department of Education (including Educational Facilities Fund) at PhP207.3 billion representing the largest government subsidy at 12.6 percent of the total budget; the Department of Interior and Local Government (including pension) at PhP88.2 billion; the Department of Agriculture at PhP37.7 billion from PhP41.2 billion which is a slight decrease of 8.5 percent in its budget due to the reduction in the allocation for input subsidies (e.g., seeds, fertilizers, farm implements and biologics) for the production of rice, corn, fisheries, livestock and high-value commercial crops with the better targeting of these subsidies; the Department of Health at PhP33.3 billion, up by 13.6 percent from the 2010 level of PhP29.3 billion; and the Department of Agrarian Reform at PhP16.7 billion which is a 20.7 percent decrease on account of the transfer of the Tulay ng Pangulo program and its fund allocation to the DPWH1 (See Chart 2). On the other hand, the Department of Environment and Natural Resources, the Department of Science and Technology, and the Department of Trade and Industry were allocated at PhP8.982 billion, PhP2.264 billion, and 2.118 billion budget respectively.

Chart 2

The Aquino administration said that they had made a reform on the 2011 budget addressing the critical gaps in social services, i.e. education, health, social welfare, and housing for the poorest segment of its population. This is to ensure that the segment will be provided greater means to have a fighting chance to build a better future. Studies have shown how the country’s per capita growth rates have lagged behind those of its neighbors and how slow its methods on poverty reduction have been. From the 2011 budget, top level priority was again given to education as there has been a sharp increase of 18.4 percent (PhP32.3 billion) from its budget of PhP175 billion last year, attributed to the construction of 13,147 classrooms and the creation of 10,000 teaching positions. It is the biggest increase allocated to education in over a decade1 (See Chart 3). The budget would also fund research and development in various state colleges and universities which is at PhP268 million increase. There is also an additional PhP222 million budget for scholarship grants for undergraduates in the Science Education Institute under the DOST, and another PhP100 million for Science Technology and Engineering Fellowship and Scholarships for the Philippines to Taiwan and Korea2.

Chart 3

From the paper ‘Education is our Future’ by Senator Edgardo Angara, also chairman of the Senate education committee, he emphasized that the field of Science, Technology, and Innovation (STI) have the potential to contribute substantially to economic growth and poverty reduction. Basic to the realization of this potential is education which is fundamental for a knowledge economy based on information technology and the country’s human capital3. One of the factors for development underlying the STI efforts, given his examples with other countries such as China, Singapore and Thailand, these countries’ respective governments have supported, funded and nurtured higher education institutions, as well as academies of engineering and technological sciences, professional engineering and technological sciences, professional engineering and technological associations, and industrial and trade associations.

In the Philippines, current efforts in promoting STI include government-initiated STI programs, budgetary allocations for agriculture R&D and higher education, and academic networking. The additional PhP268 million budget would fund SUCs that have the capability to utilize research. In 2008, the budget has funded R&D and scholarships for scientists, engineers, and students which has trickled down to the Department of Agriculture (DA), better-performing State Universities and Colleges (SUCs), the Commission on Higher Education (CHED) and the University of the Philippines (UP), likewise having received increased budget allocations for R&D.

Special support to upland agriculture has been given through the creation of a research consortium among six SUCs in the Cordillera Administrative Region (CAR). This research consortium will focus on conserving national agricultural heritage such as the rice terraces, the native textile industry and wood-based arts and crafts; improving the variety of rice and vegetables in the uplands; introducing organic farming; and creating a joint program on fish breeding. The six CAR institutions include Abra State Institute of Science and Technology, Apayao State College, Benguet State University, Ifugao State College of Agriculture and Forestry, Kalinga-Apayao State College, and Mountain Province State Polytechnic College3. Among the state universities and colleges, the Benguet State University (BSU) has become the first organic school in the country which was declared as the Organic Agriculture University4.

References:
1 General Appropriations Act 2011, The 2011 Budget at a Glance, Department of Budget and Management Publication, The President’s Budget Message, Benigno S. Aquino III, President of the Philippines, 24 August 2010
2 Senate starts 2011 Budget Deliberation, abs-cbnNews.com by Ryan Chua, 23 November 2010
3 Education is our Future, lecture by Senator Edgardo J. Angara 2008
4 Regional Conference on Organic Agriculture in Asia by Girlie Sarmiento, December 2007

Building the Future in Organic Farming (Part 2)

The increase in consumer demand for organic products over the past decade has also made parallel growths in literatures and researches dedicated to organic farming. The US Department of Agriculture GAIN conducted its own research for the Philippines and based from their year 2000 report, the organic industry of the country is estimated to be worth PhP250 million or US$6.2 million. Of this value, domestic organic industry is about PhP100 million while imports of organic products are estimated at PhP150 million. Estimate demand for organic products would outpace local production which is expanding at approximately 10 to 20 percent annually1. The said growth could be accelerated by the implementation of the Republic Act No. 10068 or the Organic Agriculture Act of 2010 signed into law last 6th of April 2010 by then President Gloria Macapagal-Arroyo2.

The positive growth of the organic agriculture in the Philippines may be contributed to the continuing interconnections between government, academe, and the industry. So as to fully understand its development, the Triple Helix Model has been utilized as its conceptual framework in this report (see Diagram 1).

Diagram 1

Based on the primary definition of organic farming, it refers to agricultural production systems used to produce food and fiber. Organic farming management relies on developing biological diversity in the field to disrupt habitat for pest organisms, and the purposeful maintenance and replenishment of soil fertility. Organic farmers are not allowed to use synthetic pesticides or fertilizers. All kinds of agricultural products are produced organically, including produce, grains, meat, dairy, eggs, fibers such as cotton, flowers, and processed food products3. Aside from the harmful pesticides, it also excludes or strictly limits the use of plant growth regulators such as hormones, livestock antibiotics, food additives, and genetically modified organisms4. Produce from organic farming is not only limited to food and fibers but also been used as raw ingredients applied to personal skin and hair care products, body and oral hygiene, insect repellant agents, room scent, etc. From the local production of its raw materials, to intensive research and development in the universities and manufacturing companies, locally-produced all-natural products are not only beneficial for the environment but also becoming an opportunity for wealth creation among the Micro, Small and Medium Enterprises (MSMEs). In addition, it provides employment and alternative source of income, improvement on the quality of life to the farmers and producers, and a beneficial commodity to the consumers.

Since the Philippines is largely an agricultural country, as Senator Edgardo Angara pointed out, government support particularly in science and technology in agriculture (and fisheries) must be prioritized. Support, especially to small and medium enterprise (SMEs), must be delivered because SMEs create around 90 percent of jobs and operate in mostly rural areas5. The signing of the Organic Agriculture Act is a step towards improvement of the country’s organic farming industry. This would possibly lead the Philippines to become the major player in the agricultural production sector in Southeast Asia through its all-natural food and high-quality organic products. As stated earlier, the plight of the farmers would also be addressed by providing alternative crop that yields to high income raw materials, aside from their regular rice and vegetable produce. It would also encourage local entrepreneurship as well as innovations from these organic outputs that would produce Philippine-made, world-class exportable products.

The Organic Agriculture Act of 2010 is a state policy to promote, propagate and further develop and implement the practice of organic agriculture in the Philippines. The policy is expected to condition and enrich the fertility of the soil; increase farm productivity; reduce environmental degradation and prevent the depletion of natural resources; further protect the health of farmers, consumers and the general public; and save on imported farm inputs. It will also establish a comprehensive program which will promote organic-farming methods through education of farmers and consumers. The State recognizes and supports the central role of farmers, indigenous people and other stakeholders at the grassroots of the program6.

The law will be carried out by the National Organic Agricultural Board (NOAB) that will provide the direction and general guidelines for the implementation of the national program. It is composed of representatives from the Department of Agriculture (DA); the Department of Interior and Local Government (DILG); the Department of Science and Technology (DOST); the Department of Environment and Natural Resources (DENR); the Department of Education (DepEd); the Department of Agrarian Reform Administration (DAR); the Department of Trade and Industry (DTI); the Department of Health (DOH); Non-Governmental Organizations (NGOs); farmers; agricultural colleges and universities; and private sectors or agri-business firms7.

On research, development and extension, its lead agency - the Bureau of Agricultural Research (BAR) will coordinate with the other agencies of the Department of Agriculture, the Department of Agrarian Reform (DAR), the Department of Science and Technology (DOST), the Department of Education (DepED), the Department of Interior and Local Government (DILG), the strategic agriculture-based state universities and colleges (SUCs), and private organizations8.

The objective of the said lead agency will develop, enhance, support and consolidate activities and related technologies for the formulation and implementation of a unified and integrated organic agriculture Research, Development and Extension (RDE) plans and programs from the national to the field level. The organic agriculture RDE plans and programs will include, but not limited to the following: research, development and commercialization of appropriate, innovative and viable organic agriculture technologies; nationwide promotion of developed and commercially viable biodegradable farm wastes and by-products through various extension strategies to accelerate the production, use and distribution of organic fertilizers; and conduct research for market development, policy formulation, regulation and certification.8.

The sum of PhP50 million budget is being allocated for the Department of Agriculture’s (DA) organic farming promotion program for the first year of the law’s implementation. The said fund will support the coordination, implementation, and monitoring and evaluation, of the research, development and extension activities on Organic Agriculture Program. The DA will subsequently allocate at least 2 percent of its annual budget for the implementation of its programs9.

Other highlights from the Organic Agriculture Act of 2010 are the following: exemption from the payment of duties on the importation of agricultural equipment, machinery and implements; identification by LGUs of local taxes that may be offered to organic input production and utilization; provisions of preferential rates and special windows by the Land Bank of the Philippines; zero-rated VAT on bio-organic product transactions, whether organic inputs or organic products; and tax Holidays and exemption for seven (7) years from the date of registration, on all income taxes. Tax incentives shall be given only to purely organic agricultural entities/farms, subject to the accreditation of the BAFPS and available to micro, small and medium enterprise10.

References:
1 Canono, J.F. Philippines Organic Products, Organics Market Brief 2000. Paper prepared for Foreign Agricultural Service / Global Agriculture Information Network of the USDA
2 Business Mirror, GMA signs Organic Agriculture Act 2010, by Mia Gonzalez, BusinessMirror.com, April 10, 2010
3 Organic Farming Research Foundation, ofrf.org/resources/organicfaqs.html
4 wikipedia.org/wiki/Organic_farming
5 Education is our Future, lecture by Senator Edgardo J. Angara
6 Implementing Rules and Regulations for Republic Act 10068 (Organic Act of 2010), Section 2 Declaration of Policy, approved by the Congressional and Oversight Committee on Agriculture and Fisheries Modernization (COCAFM) last 31 January 2011
7 Implementing Rules and Regulations for Republic Act 10068 (Organic Act of 2010), Section 7 Composition of the NOAB, approved by the Congressional and Oversight Committee on Agriculture and Fisheries Modernization (COCAFM) last 31 January 2011
8 Implementing Rules and Regulations for Republic Act 10068 (Organic Act of 2010), Section 20 Research, Development and Extension, approved by the Congressional and Oversight Committee on Agriculture and Fisheries Modernization (COCAFM) last 31 January 2011
9 Implementing Rules and Regulations for Republic Act 10068 (Organic Act of 2010), Section 25 Appropriations, approved by the Congressional and Oversight Committee on Agriculture and Fisheries Modernization (COCAFM) last 31 January 2011
10 Go Organic Philippines, goorganicphilippines.org

Building the Future in Organic Farming (Part 1)

Presented in this report are highlights of the results from the 12th global survey on organic agriculture 20111 leveraging on the Asia region. The survey was carried out between July 2010 and February 2011 from 160 countries (up from 154 countries in 2008). Data were provided by almost 200 country experts, i.e. representatives from NGOs, certification bodies, governments and researchers. The results are published in the yearbook ‘The World of Organic Agriculture 2011’ and at www.organic-world.net.

Presented in Chart 1 is the distribution of organic agricultural land by region (as of end of 2009). The data shows that the greatest share of the global agricultural land is in Oceania which is at 32.6 percent or managing 12.2 million hectares of organic agricultural land, followed by Europe at 24.9 percent or 9.3 million hectares, and Latin America at 23 percent or 8.6 million hectares. The region of Asia is nearly 3.6 million hectares that constitutes 9.6 percent of the world’s organic agricultural land. North America manages almost 2.7 million hectares or at 7.1 percent, then followed by Africa at slightly more than a million hectares that constitutes 2.8 percent of the world’s organic agricultural land. By far, the countries of Australia, Argentina and the US have the most organic agricultural land at 12 million, 4.40 million, and 1.95 million hectares respectively as presented in Chart 2. From 1999 to 2009, the world development in organic agricultural land has increased by 26.2 percent as seen in Chart 3 or an average of 2.6 percent growth per year for the past decade.

Chart 1

Chart 2

Chart 3

According to Organic Monitor2, since 1990, the global market for organic products has grown from nothing, reaching US$55 billion3 in 2009. This demand has driven a similar increase in organically managed farmland. Approximately 37,000,000 hectares (91,428,991 acres) worldwide are now farmed organically, representing approximately 0.9 percent of total world farmland. The largest amount of organic products is sold in Europe and North America. The trend in the global market for the organic food and drink is recovering from the repercussions of the economic crisis. Single-digit market growth was observed for the first time in 2009 due to economic slowdown reducing industry investment as well as spending power among consumers. The sales of organic food and drink expanded by roughly five percent to US$54.9 billion in 2009. Global revenues have increased over three-fold from US$18 billion in 2000 and double-digit growth rates were observed each year, except in 2009. Healthy growth rates are foreseen to restart as consumer spending power rises and as more countries come out of economic recession. The countries with the largest markets are the US, Germany, and France; the highest per capita consumption is Denmark, Switzerland, and Austria.

The region of Asia as mentioned earlier has a total organic agricultural area nearly at 3.6 million hectares which is a 0.7 percent increase from 2007 (2.9 million) to 2009 as seen in Chart 4. The country that provides the largest share of organic agricultural land is China which is at 1.9 million hectares followed by India at 1.2 million hectares and Kazakhstan at 134,862. Timor-Leste has the most organic agricultural area as a proportion to its total agricultural land which is almost at seven percent. The Philippines on the other hand has an estimated organic agricultural land at 52,546 hectares or 0.45 percent share of the total agricultural land area of the country as seen on Chart 5.

Chart 4

Chart 5

The region of Asia hosts a wide range of organic sector development scenarios, from early development to highly regulated. Far from the marginal position it held previously, organic is now an accepted concept and growing market trend in the region. Whilst export remains the dominant feature of sector development in the majority of developing countries in the region, local markets have emerged and are gaining ground. Primarily a market driven sector, government policy is an emerging and significant sector development factor today in many countries. Although domestic market size is still relatively small, the high value and profile associated with organic has led to civil society (consumer) calls and governments’ interest to regulate the sector. Seven markets have implemented organic labeling regulations (i.e., China, India, Japan, South Korea, Philippines, Taiwan, and Malaysia). Others, Sri Lanka and Nepal have established government competent authorities. Thailand and Indonesia have also established accreditation systems.

References:
1 Helga Willer and Lukas Kilcher (Eds.) 2011: The World of Organic Agriculture. Statistics and Emerging Trends 2011. International Federation of Organic Agriculture Movements (IFOAM), Bonn, and Research Institute of Organic Agriculture (FiBL), Frick. ISBN 978-3-940946-83-6 (IFOAM) und ISBN 978-3- 03736-192-4 (FiBL)
2 Organic Monitor, organicmonitor.com
3 US dollar = 0.71895 Euros = 48.250985 PHP; average exchange rate 2009, Source: oanda.com/lang/de/currency/average