Bahan Presentasi Organic Market in SE Asia 20 Mei 2013

Organic agriculture
markets in SE Asia
Dr Paul Kristiansen
School of Environmental & Rural Science
University of New England
Armidale, Australia
paul.kristiansen@une.edu.au
www.une.edu.au/organic

Overview of talk

The challenge for food production
Can mainstream agriculture deliver?
What is organic agriculture (OA)?
–history, extent, processes

Performance of OA?
–food, environment, social, regional issues

Examples of OA in SE Asia
Constraints?

–production, marketing, structural issues
–addressing them

References

Some key publications
Global review and
text-book, 2006

National organic
sector report, 2008

National organic
sector report, 2010

Global organic
sector reports

www.organic-world.net/yearbook.html
(2010 and earlier FREE)

www.organic-systems.org

The challenge for food production
Demographics
–increasing population, longevity, affluence, dietary
expectations

Resource capacity
–little room to increase farmed land
–urbanisation
–soil & water degradation
–climate change

Energy use
–limits to „cheap‟ energy
–competition for productive land
from bio-fuels

(Lal 2010)

Trends over time…
(Long 2009)

(Heap 2001)

(Hubbert 1956)

(Cordell et al. 2009)

1800

1850

1900

1950

2000

Can mainstream agriculture deliver?
Fertilisers?
“Diminishing returns of fertilizer application imply that further
applications may not be as effective at increasing yields.”
(Tilman et al. 2002)

Genetics?
“Current and expected future relative rates of progress in Yp
and Yw are a matter of real concern and are insufficient to
meet projected demand for cereals by 2050”
(Yp=potential water scarce yield conditions, Yw=water scarce yield, Hall & Richards 2013)

Biocides?
“Please tell the farmers there is no cavalry coming over the
hill.” Dr Anne Thompson, Head of Development & Registration, Dow AgroSciences, at the „The
Future of Weed Research‟ Conf., London, 2008 (cited in Merfield 2010)

What options are available?
Genetic engineering?
Hydroponics?

Low-input, GAP, „safe use‟ systems

Organic agriculture?

Definition of OA … no chemicals?
IFOAM definition..
“…sustains the health of soils, ecosystems and people. It
relies on ecological processes, biodiversity and cycles
adapted to local conditions, rather than the use of inputs with
adverse effects. Organic agriculture combines tradition,
innovation and science to benefit the shared environment and
promote fair relationships and a good quality of life for all”

WHO/FAO definition..
“…practices which seek to nurture ecosystems which achieve
sustainable productivity, and provide weed, pest and disease
control through a diverse mix of mutually dependent life forms,
recycling plant and animal residues, crop selection and
rotation, water management, tillage and cultivation.
(WHO & FAO 2007, IFOAM 2008)

OA principles
The principle of health
The principle of ecology
The principle of fairness
The principle of care

(IFOAM 2009)

Prinsip kesehatan
Prinsip ekologi
Prinsip keadilan
Prinsip perlindungan

OA history – what the West can learn
Indigenous/farming knowledge
–e.g. intercropping, biofertilisers, biopesticides, ash seed
coating, etc.

Traditional farming systems

–home-gardens, forest-garden, permaculture
–ecological and economically efficient

„New‟ system components
–aquaculture, mariculture
–excellent for nutrient cycling and protein production, but
never included in early Standards

Standards and Certification
Extent
–Basic Standards (IFOAM) from 1980
–Codex Alimentarius (FAO/WHO) from 1999
–86 countries have Standards (more soon…)
–576 certification bodies globally

Recent trends

–organics a world leader in certification processes
–global harmonisation, reduce trade barriers, e.g. ITF
FAO,IFOAM,UNCTAD), GOMA (Global Organic Market

Access)
–Internal Control Systems (ICS) for group certification
–Participatory Guarantee Systems (PGS) for small holders

(Willer et al. 2013)

Organic agriculture globally
Production (2011 data)

–37.2 million hectares (0.9% of all agricultural land)
–largest areas: Australia, Argentina, USA
–~65% grazing: cattle, sheep, goats
–17% arable: rice, fodder, oil seeds, legume, veges
–7% perennials: coffee, olives, nuts, grapes, cacao
–1.8 million producers: India, Uganda, Mexico, etc.

Consumption (2011 data)

–US$59.1 billion
–double-digit annual growth since 2000 (except „09, „10)

–largest markets: US (almost half), Germany, France
–highest per capita consumption: Denmark, Switzerland,
Austria

(Willer et al. 2013)

Global organic market

~60

Global market for
organic food and
drink

2011
(Sahota 2011)

Scope of OA in Asia
10% of organic land is in Asia (3.6 million hectares)
40% of organic producers are in Asia (731,315)

mostly in China & India
some reduction in numbers due to compliance costs
cash crops and processed goods exported
food crops sold locally or wider domestic market
– supermarkets, specialist shops
– farmer markets, restaurants

(Ong 2011, Willer et al. 2013)

Food quality

methodological issues

–foods not always comparable between systems
–health has complex causes
–what to measure, long-term effects?

more “good” things in food?
–some consistent evidence of nutritional benefits
–more phenols, omega-3 fatty acids, vaccenic acid

less “bad” things in food?
–significantly less pesticides, etc.
–no greater risk from pathogens (possibly less)
–less anti-biotic resistant bacteria
–less fungal toxins
(Brandt & Mølgaard 2006, Smith-Spangler et al. 2012

? 



Environmental impacts of organics

Organic versus
conventional
farming?
Absolute and
relative impacts
(data mainly
from Europe)

(Kasperczyk & Knickel 2006)

Social impacts of OA
community
–increased demand for local goods and services
–increased employment
–more participation in civic institutions
–valuing local knowledge

personal & household
–less health risks
–improved income security

regional & national
–social justice, „fair trade‟
–regional development
(Pyburn & Wals 2006, MacRae et al. 2007, Ortiz Escobar & Hue 2007)



Developing organics in Indonesia
started in 1980s with NGOs
Indonesian Organic Ag Network (JAKERPO), 1998
Indonesian Organic Community (MAPORINA), 2000
organic standard launched by Aliansi Organik
Indonesia (AOI) 2005 based on IFOAM and Codex

plus at least 7 overseas certifiers!

(Jahroh 2010, Ariesusanty 2011)

Organic production in Indonesia
71,208 hectares in 2010 (~0.1%)
… up from 57,000 ha in 2007
~10,000 producers and processors

cocoa: 2,225 ha (global: 290,000 ha)
coffee: 34,533 ha (global: 600,000 ha)
vegetables: (only)150 ha (global: 270,000 ha)
rice: 560 ha?? 2009
… “supply is greater than demand”
(Jahroh 2010, Ariesusanty 2011, Willer et al. 2013)

Supply chain examples
Organic vegetables in West Java

Organic rice in North Sumatra

(Jahroh 2010)

Organics in SE Asia – starting
Organic
tomatoes, Hlegu

Organic vege farm, BMNP, near Huế

Organic products, BMNP, near Huế

Organics in SE Asia – diversifying
Organic & low-input vege farm, Phnom Penh

Organic cashews, etc., Banlung

Organic & low-input retailer, Phnom Penh

Organic pepper, O Yadav

Organics in SE Asia – underway
Breeding organic chilies, UNJA, Jambi

Organic & low-input vege farm, IBP, Bogor

Organic & lowinput supply
chain, IBP, Bogor

Organics in SE Asia – social aspects
Training & education, Chiang Mai

Organic farmer group, Gunung Sago

Community garden, Kusuman, Esaan

Organic farmer & entrepreneur, G. Sago

Production constraints
soil fertility management

–P especially difficult
–replacing what ever is exported (mass balance)
–tillage impacts

weeds, pests and diseases in cropping

–controls not “100% effective”
–less specific controls, more off-target impacts?

internal and external parasites in livestock
–controls not “100% effective”
–must put animal welfare first
–breeding/selection very important

(Kristiansen & Merfield 2006, Kristiansen et al. 2006)

Marketing constraints
fluctuating, low volume of supply
Standards

– complex, demanding, unaffordable
– global harmonisation, avoid multiple processes
– regional adaptation helpful

variable quality
prices … ensuring premiums
cost of inputs
buyer power (local vs. supermarkets)
breaks in the supply chain
domestic vs export
(Kristiansen & Merfield 2006, Jahroh 2010, Ariesusanty 2011)

Structural constraints
industry development

– disharmony and conflict
– poor representation to government

lack of training & educational infrastructure

– locally based organic farmer groups
– govt extension agencies not able/willing to support OA

lack of R&D funding
standards & certification:

– effective and credible
– locally adapted and global harmonised

lack of laws limiting the use of “organic”
(Kristiansen et al. 2006)

Adopting OA in developing countries
‘Organic by default’ is a good starting point,
but usually not enough for most markets,
especially international trade

(Kristiansen & Merfield 2006)

Overcoming constraints
more and better information
– farmer groups, info networks
– NGO/GO support
– training material, extension processes
– adapting/revising organic Standards

supply chain development
– ensuring sufficient, affordable inputs
– ensuring timely handling and processing
– achieving critical mass
– consumer awareness (e.g. definitions, labels)

References
Ariesusanty, L. 2011. Indonesia: Country Report. In: Willer, H. and Kilcher, L. (eds.) The World of Organic Agriculture - Statistics and Emerging Trends
2011. IFOAM & FiBL, Bonn & Frick. pp. 137-139.
Brandt, K. and Mølgaard, J.P. 2006. Food quality and organic agriculture. In: Kristiansen, P., Taji, A. and Reganold, J. (eds.) Organic Agriculture: a Global
Perspective. CSIRO Publishing, Collingwood. pp. 305-327.
Cordell, D., Drangert, J.O. and White, S. 2009. The story of phosphorus: Global food security and food for thought. Global Envi’l Change. 19: 292-305.
D’Amario, A., Marzoli, F., Martino, F. and Morettini, M. 2005. Social aspects of organic farming. In: Organic Farming in Poland as Example of Organic
Farming in CEE Countries - from farm to plate, 25-29 July 2005, ENAOS 2005 - 4th ENAOS Summer Meeting. ENAOS, Warsaw.
Hall, A.J. and Richards, R.A. 2013. Prognosis for genetic improvement of yield potential and water-limited yield of major grain crops. Field Crops
Research. 143: 18-33.

Heap, I. 2001. Graphs on the Occurrence of Herbicide Resistant Weeds Globally. International Survey of Herbicide Resistant Weeds, Corvallis.

Hubbert, M.K. 1956. Nuclear Energy and the Fossils Fuels. Shell Development Company, Houston.
IFOAM. 2008. Definition of Organic Agriculture. IFOAM, Bonn. ifoam.org/growing_organic/definitions/doa
IFOAM. 2009. The Principles of Organic Agriculture. IFOAM, Bonn. www.ifoam.org/about_ifoam/principles
Jahroh, S. 2010. Organic farming development in Indonesia: lessons learned from organic farming in West Java and North Sumatra. In: Coudel, E.,
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Long, B.K. 2009. Human Population through the Ages. EconoSystemics.

References (continued)
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Long, B.K. 2009. Human Population through the Ages. EconoSystemics.
MacRae, R.J., Frick, B. and Martin, R.C. 2007. Economic and social impacts of organic production systems. Canadian Jnl of Plant Sci. 87: 1037-1044.
McCluney, R. 2004. Renewable energy limits. In: MacKillop, A. (ed.) The Final Energy Crisis, Pluto Press, London.
Meadows, D.H., Meadows, D.L., Randers, J. and Behrens, W.W. 1972. Limits to Growth. A Report for the Club of Rome's Project on the Predicament of
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