Developing local and regional markets for organics

While the long term outlook of organic food and drink sales is positive, there are some problems on the horizon for producers and consumers alike. At the present moment, anticipated models of localised supply have become increasingly unlikely. This can be partly attributed to the rapid international growth of the organic sector in combination with disparities between the originating source and consumer driven demand for many organic commodities.

Food retailers and manufacturers in Europe and North America are now struggling to source sufficient organic produce and ingredients to realise their growth potential. In order to satisfy the immediate demand, providores at all levels have turned increasingly to international markets. In recent years, countries like China, Uruguay, and Mexico have rescheduled their agricultural priorities to deliver larger quantities of organic staples like grain, beans, seeds, vegetables, and nuts. Australia and Chile are providing organically certified meat products while countries across Africa and Asia are supplying organically grown fruit and vegetables.

It is a fact that demand for organically certified food is concentrated in affluent countries where the majority of consumers enjoy high disposable incomes. With restrictions on the availability of suitable agricultural land and the higher costs of labour, local organic production has levelled off and declined in many areas. By contrast, there are developing regions which have embraced full scale organic production without the inherent convenience and stability of local markets for these goods. In the absence of a local consumer base, production is largely controlled by external factors and the economic benefits are restricted to those facilitating capital investment.

For the long term benefits of the international community, importers and exporters of organic products must share responsibility for developing local and regional markets for such goods. This would be inherently more sustainable than the present situation.