Wednesday, March 9, 2011

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

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