Export of Organic products

Spain’s Organic agriculture accounts for 2% of the world. Since the start of the Spanish production has revealed a major export-oriented, primarily due to strong consumer demand Central estimated that 80% of the production are for export.

According to market organic products, only 5.8% of producers export their products directly, while the percentage rises to 44.7 processors.

The average percentage of production destined for EU countries is 89.2%. It is significant that 100% of operators surveyed run their goods to Germany, France and the 62.7% UK 58.8%.

U.S. Market

The origin of the market for organic products in the United States in 1960 can be placed in the "Natural Food Stores", selling products from small retailers and farmers' associations. Today, companies such as Dole, Heinz and Mars have entered the organic market. The initial data on market volume of organic products in the United States were published in 1980.

At that time, the market was valued at $ 178 million, and spent 10 years in 1000 to move millions. With an annual growth rate of at least 20 percent, sales of distribution increased to 6,400 million dollars in 1999 and it is estimated that in 2000 reached 7800 million. The supply of organic products is large and includes fruit, vegetables, dairy, frozen food, beverages and various processed products among others. 62% of organic products are sold through natural food stores, 31% through supermarkets and only 7% through direct marketing (distribution of boxes to home directly from the producers). The total value of exports of organic products is estimated at between 200 and 300 million U.S. dollars.

The main markets are in Europe: Britain, Germany, France and Holland. Also important markets in Asia from Japan and Taiwan. Most important exports: Soybeans, fresh and dried fruit, nuts and rice, but also exported additives. Currently one third of the U.S. population buys organic products occasionally, and about 3 per cent regularly buy. Organic products are priced on average 20% more expensive than conventional ones. Canada in the organic sector is gaining popularity, although its presence in the market is still very small compared with the conventional food market. Growth estimates ranging from 10 percent (Government of Manitoba, 1997) to 25 percent (Natural Life, 1999). Today, demand far exceeds the supply (Orton, 2000), which primarily comes from foreign countries like USA, Europe and Japan. Distribution channels for organic products in Canada include the Health and Natural Stores and conventional supermarket chains, including ecological lines. Canadian exports are mainly wheat, rye and barley. The main destinations are the United States, Europe and Japan (USDA, 1997). With regard to imports, they come in a 85-90% in the U.S. Among them dominate the processed products, processed and packaged, representing 80% of U.S. exports to Canada.

Latin American Market

Some Latin American countries have domestic market for organic products. In Brazil for example, there are associations of producers that sell their products in boxes at home or in outdoor fairs. Similar initiatives can be found in Ecuador. In Argentina, the production is supplied to supermarkets by dozens of producers who have been unified. Supermarket chains are beginning to sell organic products throughout Latin America. For example, you can now find organic products in supermarkets in Uruguay, Costa Rica, Honduras, Peru, Brazil and Argentina.

However, the range of products on offer is limited by the difficulty of acquiring large amounts of organic products. Argentina offers a wide variety of oils, flours, honey, wine on the shelves of supermarkets. In most Latin American countries are specialized shops where farmers bring their products to be sold to a customer expert in environmental issues. However, possibly the most popular form of marketing organic products is through small local markets. Also important is the direct marketing as an example that is usually referred to the initiative and delivers boxes of organic produce at home.

The significance of this is that at times has been the starting point for creating other marketing channels and to stimulate demand for these products. Despite growing demand for organic products, the export market remains the main destination of Latin American production. Since coffee beans and bananas from Central America to Paraguay and sugar cereals and beef from Argentina, the trade in organic products has been directed mainly to foreign markets. This trend is typical of the southern countries with poorly developed markets, a total lack of promotion and marketing activities, and a large need for cash to pay the debt. In many instances, the products are exported in fresh with no added value, being processed and sold in developed countries.

Sources: Ministry of Agriculture, Fisheries and Food, Plan for the Promotion of Organic Agriculture of Andalusia

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