Thursday March 8 11:10 AM ET
Organic Farmers Say They Will Soon Be
the Norm
dailynews.yahoo.com
By Greg Frost
PARIS (Reuters) - If Francois Thierry is right, organic farming will some day be the
norm.
How soon that happens, however, depends on the will of all the players in the European
food sector -- producers, consumers, retailers and politicians.
Thierry, a dairy producer who made the switch to organic farming 10 years ago, says he
has been flooded with so many calls from nearby farmers since the mad cow disease crisis
hit France last October that he is holding a one-day seminar to respond to their queries on
converting their farms.
``The day will come when organic farming is considered normal, mainstream,'' says the
suave, silver-haired Thierry, who could pass for a male model if he weren't so busy
minding some 50 cows in the Vosges region of eastern France.
Today, only about three percent of Europe's farmland produces food organically, or
without synthetic chemicals. In France, organic farms make up about 864,900 acres, or
1.2 percent of the total agricultural area.
Benoit Vergriette, a top official at the French organic farmers' union FNAB, said between
3,000 and 3,500 farmers are expected to make the shift this year, bringing the number of
organic producers in France to more than 11,000 by 2002.
``More and more farmers are looking at organic production. On the one hand, consumer
demand is growing for products of quality, particularly organic products. But it's also
producers who are realizing the problems of mainstream farming,'' he says.
``They are asking themselves: 'How is it possible that we've gotten to such an aberrant
system in which we have to slaughter two million head of cattle?' It's a shock,'' he adds,
referring to the EU's ``purchase-for-destruction'' scheme designed to resolve the beef
crisis by removing excess supply from the market.
Farmers' Minds
Dominique Verot, FNAB's spokesman, believes the biggest obstacle keeping European
farmers from going organic is in their minds.
``It's a different kind of production than they're used to -- the yields are lower than in
traditional agriculture ... and the amount of work on an organic farm is about 20 to 30
percent more than on a conventional farm,'' he says.
The pay-off for farmers is that organic food is better valued than the alternative.
Organic farmers can charge more for their goods because they cater to a niche market of
consumers tired of worrying over what they eat. In their search for an alternative, peace of
mind eclipses the price tag for many consumers.
A British survey last year comparing the price of organic and non-organic baskets of food
found that the former attracted a premium of between 70 to 80 percent.
But with more European farmers turning to organic agriculture, the premium they charge
for their goods may drop as supply rises.
On its own, that could deter more farmers from converting. But FNAB's Verot says more
farmers producing organically will mean lower production costs.
``It's clear that for the moment, we don't have economies of scale. But in the event that
production goes up, you'll start to see these. That's desirable,'' Verot said.
Distribution Key To Growth
European retailers and food companies have already seized on the value of organic
farming to European consumers sick of hearing about the dangers on their dinner plates.
According to industry consultants Euromonitor, Western Europe is the largest organic
food and drinks market in the world, with retail sales in 2000 of $9.55 billion. The
European market is set for sustained growth and will account for 5 to 10 percent of total
food sales in 2005.
The French retailer Carrefour recently expanded its already impressive selection of
organic products by signing contracts with four organic wine makers, while
multinationals Nestle and Danone have unveiled organic brands in recent years.
Observers say that while marketing and product development are important, organic food
producers must establish better collection and distribution networks.
``Before we start marketing organic products, collection and information flow has to be
improved, so when demand increases for certain products, they can be found and
delivered,'' says Johannes Michelsen, an agricultural economist from Denmark.
Farm Policy
With consumers, retailers and multinationals on board, and with more farmers joining
each day, there remains only one other key influence group to convince -- politicians.
Many European Union (news - web sites) countries already offer incentives to increase
the amount of food produced organically, and EU Farm Commissioner Franz Fischler
said in February he wants to do more to encourage less intensive-style agriculture.
But his call must now be accepted by the EU's 15 member states -- and that may be the
hardest part.
French Farm Minister Jean Glavany last month dismissed his German counterpart's
suggestion that organic farm production could grow to one-fifth of total food output
within 10 years in response to recent food safety scares.
Glavany struck down the idea in yet another sign of the fundamental difference of
approach between Paris and Berlin, which have clashed repeatedly over reforming EU
farm budgets and voting mechanisms.
``Yes, organic farming is growing in France, as it is everywhere else, but from there to
reaching 20 percent is an objective that seems to me, I won't say sheer lunacy, but
unattainable at any rate,'' Glavany said. |
