1. Organic Agriculture: A Trade and Sustainable Development Opportunity for Developing Countries Sophia Twarog, Ph.D.

2. What is organic agriculture?

3. Certified organic production: over 30 million hectares, 138+ countries

4. OA as a national sustainable development opportunity Economic benefits Food security benefits Environmental benefits Social & cultural benefits

5. Economic benefits Net income = (price x quantity) – total costs Generally, organic farmers earn more.

6. Food security benefits Higher incomes Higher yields Diversified production Improved nutrition

7. Environmental Benefits Less pollution Improved soil, incl. increased water retention and less soil erosion Enhanced biodiversity No genetic contamination

8. Environmental Benefits, cont’d Mitigated climate change Reduced energy consumption Landscape services

9. Social & cultural benefits Benefits for smallholders Women’s empowerment Builds on traditional knowledge Reduced rural-urban migration Improved health & safety Community revitalization

10. OA as an export opportunity—rapid global market growth

11. OA as an export opportunity Global sales growth rates at least double those of conventional food products Acute supply shortages since 2005 Developing country exports rising fast Price premiums

12. Regional Distribution of Organic Food Sales 2006 RegionBillion USD% Western Europe20.052 North America17.345 Asia 0.782 Oceania/Australia0.341 TOTAL38.6 Source: Sahota (2008)

13. Regional Distribution of Organic Food Sales 2006

14. Regional distribution of certified organic production 2006

15. Export opportunities include Fresh and processed tropical products Counter-seasonal fresh produce Other products with demand-supply gaps Ingredients for food processing industry

16. Production challenges Little or no government support (policies, ag extension, R&D) Conversion period Knowledge intensive Sometimes lack of organic inputs Lack of secure land tenure

17. Export challenges OA exports must: Meet SPS requirements in import mkt (same as for convent’l products) Meet requirements of OA regulations & be certified by approved cert. body Meet additional requirements of private standards (sometimes)

18. Export challenges Agric. Subsidies in import markets Need for market information Consumer preferences for local food Lack of harmonization, equivalence & mutual recognition

19. Recommendations to developing country governments Assess national organic sector & policies OA action plan Consider supporting OA R&D, extension services, certification costs, development of domestic market, exports, harmonization

20. Other factors contributing to success Community organization Group certification

21. Recommendations at international level Pursue harmonization and equivalence Take into acct special conditions in developing countries Provide market info Support TC/CB in OA

22. UNCTAD initiatives Publications UNCTAD-FAO-IFOAM International Task Force on Harmonization and Equivalence on Organic Agriculture (ITF) UNEP-UNCTAD Capacity Building Task Force on Trade, Environment and Development (CBTF)

23. For more information www.unctad.org/trade_env Sophia.twarog@unctad.org

24. Thank you!