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Caribbean Eyes Organic Food Markets

By Peter Richards

PORT OF SPAIN - In recent years, organic produce has earned a niche in global food markets, so much so that last year, products were exported to at least 21 countries.

Now, the Caribbean is looking to get in on the action. In 1999, the International Trade Centre (ITC) estimated that the worldwide sales of organic products exceeded 10 billion dollars, with the European Union,the United States and Japan being the main markets.

The ITC, a joint effort by the U.N.Conference on Trade and Development and the World Trade Organisation, says the figure is growing. The FAO estimates that more than 100 countries - a significant number of them in the developing world -produce certified organic commodities. The Dominican Republic is among the world ’s major organic banana producers, along with Colombia, Costa Rica, Honduras, Mexico,and the Philippines.

The producers, Honduras, Banana producers in the English-speaking Caribbean also are aware that there are opportunities in organic banana cultivation -a view that is driven primarily by the overwhelming desire to diversify both the methods and output of the agricultural sector.

Moses Kairo, Caribbean and Latin America director for CAB International,a London- based non-profit agricultural sciences organisation,says in the last 10 years, “organic production has been expanded greatly to the extent that it is now a significant part of the economy” of many developing countries.

“The market for organic produce continues to grow and the scope for expansion of production is therefore great,’’ Kairo says. “Competition at the global level will also grow and the key to success will depend on having cost effective production and marketing systems.”

In 1999, FAO estimated that the market for organic foods in the European Union (EU)- the world ’s largest organic market - was less than two percent of total food sales but pre- dicted that the situation would change asmore consumers were readily approving of the organic foods on supermarket shelves.

“Under the right circumstances,the market returns from organic agriculture can potentially contribute to local food security by increasing family income,” FAO said in a recent report.

The U.N. body now estimates that organic food sales in the United States have grown by more than 20 percent annually since 1990. Some developing countries also are exporting tropical fruits to the European baby food industry.

A number of African states export cotton to the EU, while Zimbabwe exports herbs to South Africa. China exports tea to the Netherlands and soybeans to Japan. FAO, along with a number of international organisations including the Inter-American Institute for Cooperation on Agriculture (IICA) and the Centre for Development of Enterprise (CDE), has been seeking to help Caribbean and Latin American countries explore and exploit market potential in organic horticulture.

Developed countries ’markets “may offer interesting diversification possibilities for coun- tries which are dependent on the export of a small number of commodities,” FAO says.

At a conference here in October 2001, participants from throughout the region pored over a new study on the major markets for organic horticultural products worldwide as well as an analysis of the opportunities offered by these markets.

The conference,“Supporting the Diversification of exports in the Caribbean/Latin America Region through the Development of Organic Horticulture ”, was organised by FAO, IICA, and CDE. It was supported by the ITC and hosted by the Trinidad and Tobago government.

FAO expert Nadia Scialabba, says the main drive of many developing countries to produce organic food and fibres is to tap market opportunities in industrialised nations.

Consumers are willing to pay higher prices for organic food, she says, so farmers are eager to experiment. In addition, potentially lucrative markets “stimulate government efforts to promote organic trade.”

However, she adds that “much needs to be done in establishing conditions that give equal opportunities for producers and equiv- alency among different national standards.”