China’s renewed interest in organic production

Over recent months, there has been considerable interest in China’s contribution towards international trade in organically certified produce and consumer items. With increasing concerns about industrial pollution and the environment, there is a resurgence of privately developed industries offering safer alternatives. The current popularity of organic items in Beijing and Hong Kong has encouraged many entrepreneurs to seek financial investment and technological support for organic business propositions.

The statistics for organic trade indicate substantial export growth. In 2003, the total value of organic products destined for export was $US142 million dollars. This increased to $US200 million in 2004, and $US350 million by 2005. The estimate for the current period is in excess of $US700 million. While these amounts appear low compared to US organic exports, the trend for future growth is clearly evident.

There are also positive signs for the role of organic products within China’s huge domestic economy. Organic products, which would have failed to attract attention several years ago, are currently sought by a small yet increasing number of consumers. This is determined by the new wealth being created through China’s booming economy. Analysts remain confident about future growth despite the high percentage of domestic consumers who cannot afford to purchase organic at premium prices compared to conventional products. In a country with its fair share of food scandals, there is also some suspicion and a general lack of consumer assurance that organic products are genuine in their claims.

Independent monitors like IFOAM and Greenpeace have closely observed China’s renewed interest in organic production. There are some concerns that China may be designating organic farmland without the certification controls required by international agreement. Critics argue that widespread degradation of China’s air, soil, and water resources make it difficult to guarantee organic status. Despite these concerns, global markets for organic and sustainable produce are welcoming the Chinese contribution. This alone will provide ongoing incentives for Chinese farmers and manufacturers to develop and maintain internationally recognised standards.