Canada market development investment
Posted - April 12, 2010
Canada market development investment
The Organic Trade Association (OTA) in Canada announced a partnership with the Government of Canada on March 6 to develop a long-term international marketing strategy to expand Canada’s organic sector. Agriculture and Agri-Food Canada is investing over $118,000 in OTA in Canada’s international market development strategy for the organic sector.
“We are excited about what this means in terms of building new international markets for Canadian organic products,” said Matthew Holmes, managing director of the Organic Trade Association in Canada. “The global organic market is expanding rapidly and this support will allow Canada to establish itself as a supplier of quality organic products. When you know more about supply and demand in foreign markets, you are in a better position to make sales.”
OTA said Canada’s international market development strategy for the organic sector will identify which markets to target, what products or commodities are the best fit with those markets, and how Canadian companies can access these important markets. The strategy will also benefit the entire domestic sector by identifying gaps in the supply-chain, new opportunities and innovations, and providing a more coordinated approach to capacity development. The project will promote the availability and quality of Canada’s organic products in the quickly expanding global organic marketplace.
“Today, with the support of this program, an organic farmer and businessman from PEI is in Japan meeting with buyers and learning more about this important market for organic products,” Mr Holmes said. “The AgriMarketing Program will assist dozens of other Canadian organic businesses in exploring new markets who, in turn, are providing OTA in Canada with intelligence on how Canadian organics can compete and excel in world markets.”
Global organic sales were estimated at $50.9 billion (US) in 2008, and preliminary data shows that growth has continued through the global recession. In Canada, organic sales are approximately $2 billion per year, and have had an average annual growth rate of 20% for the past few years. Canada’s new Organic Products Regulations came into effect on June 30, 2009 and are overseen and enforced by the Canadian Food Inspection Agency.
Euro-Nat: Partnering Bolivian quinoa for 20 years
Posted - February 11, 2010
Euro-Nat: Partnering Bolivian quinoa for 20 years
By Angela Mallaroni
In 1988, entrepreneur Didier Perreol, discovered quinoa at a casual encounter during an exhibition in Geneva. He was looking for a unique cereal product to stand out from his 75 product line his firm Euro-Nat had recently introduced to natural health food stores in France.
Impressed with the grain, Mr Perreol went to Bolivia to meet with ANAPQUI, the only cooperative of small quinoa producers in the country at the time. With his first 500 kg order of Royal Quinoa, Mr Perreol went back home with the commitment to introduce quinoa to France. The emblematic company brand Primeal was born, and an intensive communications campaign followed.
Primeal Royal Quinoa was a success. It was versatile, easy to prepare and mix in many recipes and inspired Mr. Perreol and others to publish quinoa cookbooks. For the next ten years Euro-Nat imported quinoa from the producers in Bolivia and the Primeal brand entered every natural health food store in France. In 2001, Euro-Nat started distribution of quinoa products to major supermarket chains under private label.
To develop a stable project with constant delivery and traceability of the best quinoa available, Mr Perreol made a further commitment: to set up shop in Bolivia itself. In 1997, he founded Jatariy, (‘stand up’ in Quechua), in Oruro, as sister company of Euro-Nat to overlook production, collection, cleaning and packaging of the grain to be exported to France.
Quinoa demand made the price soar. It increased 300% in 2008. Long-term agreements with the producers can be more complicated, as there are many new buyers. Now, consumers in Bolivia can scarcely buy quinoa, while producers sell to all foreign markets.
Quick gains led farmers to plant quinoa in fields or areas not suitable for it, while neither rotating nor properly fertilizing fields, with soil deterioration, falling quinoa quality and plummeting yields.
All products offered by Euro-Nat are organic certified. Mr Perreol is also a founding member of Bioequitable, association established in France since 2002, to promote organically raised and fair traded products independently certified.
Under this scheme, the price to quinoa producers is fixed in agreement with the communities involved, at a higher rate than the conventional market price. Euro-Nat offers additional incentives in bonuses for quinoa grown in the highlands as opposed to the flats.
In the past three years, Jatariy has been working with Vets Without Frontiers to assist farmers raising llamas and alpacas, supplementing farmers’ income. The animals provide manure for fertilizing the quinoa fields.
The company has invested in other interesting community projects. In 2006 it contributed to launching the first radio station in Uru Chipaya language, allowing citizens of the small, Bolivian town of Chipaya to listen to radio broadcasts in their native language for the first time.
Jatariy is also active in a partnership with the BOLIVIA INTI association to provide solar powered stoves and reduce use of wood as fuel; cooperation with Sumax Waksay, for a health care mobile facility; and philanthropic actions such as donations of powder milk and dried foods for public schools.
Jatariy has 37 employees, exported 1,500 tonnes of quinoa in 2009 with a total annual income of 4 million USD. Of the more than 400 products under the brand Primeal, 40 include quinoa.
Over 80 percent of the 200 quinoa producers working with Jatariy have been with the group for 12 years. In France, Euro-Nat employs 84 people and reports an annual income of 53 million euro for 2009. Euro-Nat is also a holding group that acquired the name EKIBIO last year. With a total of 175 employees the holding reported a total turnover of 65 million Euro for 2009.
As result of 20 years committed to promote quinoa , Mr Perreol has built a solid cooperation in Bolivia and France. Currently Mr Perreol and his son Olivier, as export manager, plan to increase their presence in Belgium, Switzerland, Italy, Spain, and Britain. Canada and Japan are also countries of interest.
In Bolivia, Jatariy will diversify and offer black quinoa which is rich in lithium, and red, not only the white variety of Royal Quinoa that has been the one most appreciated in the market due to its larger-sized grain. The company will focus on maca as well. Cooperation was established with the Bolivian firm Naturalcos, which produces and exports the line Maca Spirit.
Another product of interest is stevia, following the EU market and particularly France opening the door for its import. Other grains like canihua and amaranth have interest in the market, and although not as high as quinoa, they have potential as ingredients for food products. After 20 years of commitment, Mr Perreol is still impressed with quinoa the ‘Mother Grain”, the people and the land where it grows.
Germany still leads the pack
Posted - January 30, 2010
Germany still leads the pack
Based on a report produced by Dr. Klaus-Juergen Holstein, Ein Herz fuer BIO magazine
Germany still represents the biggest organic market in Europe, with potential for growth, followed by France and Great Britain. Organic sales account for 6.5% of the total food sales in Germany, 3.4% in France and 2.2% in Great Britain.
Compared to the other two countries, the German food market is generally low-priced, including organic food. The German organic sales concentrate mainly on fruit and vegetables, supplements and wellness food from rice cakes to vegetarian spread, and on dairy products.
Regarding channels of distribution, at the end of the 1990s small specialist shops dominated with over 40% of organic sales. Today, the 2000 specialist shops account for only 23% of total sales. Supermarket chains with around 40,000 outlets account for 35 %, and 19% of sales go through discount-markets, which with 10,000 retail shops account to 40% of total food sales.
Specialist shops do not have a well developed structure yet.There are only two large chains , Alnatura and Denn´s. The leading organic seller is tegut. Wth only 300 shops, nearly 20% of the retailer’s annual turnover is organic food.
Sales of organics are reported higher in smaller outlets, with a 9.4% increase compared to 1% for the general food sales growth. Many small-sized German supermarkets are manager-owned within the food chains Edeka and Rewe. At Edeka some regional offices in the South of Germany buy organic food directly from regional wholesalers or producers. At Rewe management has a more national centralized purchasing operation.
Germany’s best known organic brands started as a combination of an organic umbrella or brand and wholesale operations such as Biozentrale with Gut & Gerne, Rila with Rinatura and Rapunzel/Biogourmet. The smaller supermarkets normally sell a range of about 12,000 products, 400 – 1200 of which are organic quality, while the larger retailers offer a selection of 20,000 to 30,000 products, with up to 3000 in organic quality. Maximum stock capacity per outlet is about 14,000 products, which means many products have to be delivered directly to the shops. Over 60% of organic products are distributed by wholesalers.
The main consumers of organic food in Germany are baby boomers 50+. The younger generation find organics too expensive and not attractive enough, while the 30 + generation, more into the “feeling good”, trend, is turning into the most avid advocate of organics. Buying local continues to be a strong motivator in general and health concerns are the main reason for buying organic.
During the current financial global crisis the German organic market has remained strong and stable, except in the consumption of dairy products. While there is high price pressure on all vegetables, products such as coffee, wine and preserves reported sales increase. The trend of organic products, offering good value, continues.
Irupana: building a sustainable model of social enterprise
Posted - January 25, 2010
Irupana: building a sustainable model of social enterprise
By Adriana Michael
With a jeep, 4,000 USD and two ideas, entrepreneur Javier Hurtado Mercado founded Irupana Andean Organic Food S.A. in 1985. First, he wanted to market natural and organic certified products from small indigenous producers in Bolivia. Second, he wanted to make available ancient forgotten nutritious foods. After working for several years with NGOs, Javier and his wife Marta Cordero realized that the only way to help peasant farmers was to set up a distribution business to bring products directly to the buyers.
Until 2004, the firm supplied mainly the domestic market with over 120 natural foods and a distribution network of 400 outlets. Opening a franchise followed, currently with 18 natural food shops that offer coffee, a variety of Andean cereals and baked goods, pasta and honey.
A tender bid from the government (2000-2004) allowed Irupana to offer a nutritious breakfast with quinoa to feed over 60,000 students from public schools. Instead of refined imported wheat for cheap bread, the children discovered a delicious and nutritious local staple.”Those four years were perhaps the most gratifying” says Mr. Hurtado.
Interest in quinoa increased gradually. Health related circles in Europe and the USA spread the word of its nutritional benefits. Irupana acquired new processing plants in 2006. Quinoa exports rose from 5 to 20 tonnes, offering a steady income to counter an unstable domestic market.
In 2008, food scandals around the world, consumer dissatisfaction with big agro-food manufacturers and demand for gluten-free foods drove Royal Quinoa sales even further. Last year, the farmers’ price for quinoa rose from 40 to 112 USD. That year Irupana was the number one exporter of Bolivian Royal Quinoa.
Mr. Hurtado attended BioFach to sell his value-added products. “It is an event to connect producers of raw materials from developing countries with trading and processing firms from industrialized nations. The international cooperation is oriented to strengthen a rigid North –South exchange”, says Hurtado.
Helping farmers become entrepreneurs
“Over the years we understood that to incorporate the small Bolivian organic farmers into the global economy, they needed subsidies”, says Mr. Hurtado.”They had to learn how to increase land for organic production and to get certification, and technical assistance to set up internal control systems for harvesting and warehousing, along with small agricultural machines and biological pest controls”. To fulfill these needs in a more efficient way, Irupana created its own NGO in 2007: El Instituto Bartolina Sisa.
The Institute immediately embarked on some interesting ventures. For example, Bolivia’s Altiplano offers little fuel options except wood from sparse forest. To control further erosion from cutting trees, the Institute supported a project to introduce solar powered stoves. The Institute has also studied local nutrition. The additional quinoa income has lead families to buy processed foods. Like consumers in other parts of the globe, to save on time and effort, local families also wanted access to ready-to-use foods. The Institute now supports initiatives to educate locals to eat healthier. There are plans of a retail operation for quinoa-derived foods, at subsidized prices, under management of the quinoa farming communities.
Although today Bolivian families have a more stable disposable income, fuelling demand for natural and healthier foods, Irupana aims to find new markets for finished lines. Currently, red, black and white Royal Quinoa and amaranth are available in grain, flakes, flour and puffed, packed for retail under private or own label. Another goal is to invest in technology and development of new products to reach foreign markets with value-added foods, such as energy bars with quinoa, canihua and amaranth - all gluten free.
Mr. Hurtado started with two ideas, which have materialized. But his vision goes further: “Our goal is to consolidate Irupana as a cooperative enterprise with 33 percent of shares open to our suppliers, employees and executives, 34 percent for the promoters and 33 percent open to financial investors.”
Mr. Hurtado has worked tirelessly to develop a model of organic production that preserves the environment, while encouraging farmers to become actively involved entrepreneurs in the process. A jeep, 4,000USD and two ideas to help farmers have already brought big dividends.
Hope for Haiti restoring the soil
Posted - January 21, 2010
Hope for Haiti restoring the soil
By Adriana Michael
What happens when a country has no trees left and its soil has been depleted with intensive farming, a high density population and poor governance? Look at Haiti. Our hearts go out to the people of this Caribbean nation. The recent earthquake is the latest in a series of problems which have left the country in a very challenging position.
Haiti is part of a tropical island shared with the Dominican Republic. Its land and mountains were once covered with at least 60 percent lush rainforest. Now it is deforested with 9 million inhabitants, 80 percent of whom are unemployed or living in slums and extreme poverty.
A dramatic history, political oppression and government corruption, lack of literacy, a growing population concentrated in one small geographical area with no access to basic services and external debt, have turned Haiti into the poorest country in the Western hemisphere.
Soil erosion is disastrous in this mountainous country. Haiti has no internal source of fuel except wood. For the past 200 years people have been cutting the trees of its rainforest without replanting. Currently over 98 percent of its land is deforested. With no trees, the remaining soil is washed away during the rainy season out into the Caribbean Sea.
Without its soil Haiti has also lost the means to feed itself and must import over two thirds of its food, while thousands of people in rural communities end up in Port-au-Prince with no work.
Providing water for the community is a major challenge. Only a few enjoy running water and sewerage systems.
The majority do not have access to potable water or toilets, leading to disease.
To get on its own feet, Haiti needs to be built on a new development model with a multi dimensional approach to solving its many problems. Where to start? Generating the structure to support sustainable agriculture is a solid base for long term positive social, environmental and economic change. Healthy soil retains and filters water resources, provides food and protects communities from flood and other natural disasters. Before the earthquake most funds from the continued international aid to Haiti focused on urban initiatives.
Knowing the causes of Haitian poverty is part of finding the right solutions. It helps people like us, the international organic community know where to focus our energies, resources, know –how and work attempting to lessen Haiti’s misery. This is an opportunity for organic and fair trade organizations and enterprises to join efforts and contribute in projects and initiatives that will bring real sustainable development to a nation neglected for so long. If you or your company would like to get more involved in Haiti, following are a couple of ideas.
The WASH Project: Use of human waste as fertilizer
Driven by a need to apply their knowledge helping the people of Haiti, three years ago Sarah Brownell and Sasha Kramer founded Sustainable Organic Integrated Livelihoods (SOIL), a non-profit organization dedicated to protecting soil resources, empowering communities and transforming wastes into resources. How could the much needed soil be recovered? With a well thought-out multi dimensional plan: Composting toilets to improve sanitation and agriculture.
Brownell is a mechanical engineer with a Masters in environmental engineering from Berkeley University and Kramer a Ph.D. in Ecology from Stanford University. Their rich knowledge and background and support from a strongly motivated team contributed to the successful launch of a water free ecological toilet. A pilot WASH Innovation Project with 25 indoor dry toilets and 4 public dry toilets began in 2008, in cooperation with Oxfam UK.
There are variations on the toilets, but the general idea is to separate liquid and solid wastes. The diluted liquid cargo irrigates fruit trees, while the solid waste is covered with sugarcane mash to improve the composting process and keep flies and odors away. Up to 600 gallons of solid waste is collected by each toilet and transported to a composting site where it converts into rich and safe compost, free of undesirable organisms after a year. The community can sell this compost to farmers who cannot afford any other fertilizers.
The WASH project works. There is high demand for more ecological dry toilets. Now that the latest earthquake has displaced over 400,000 Haitians from Port-au-Prince and huge tent cities are being prepared in open bare fields, SOIL could definitely contribute to the community and the environment. With more financial assistance, SOIL would generate more local jobs to build and deliver more toilets and offer an immediate solution that addresses simultaneously several social, economic and ecological problems. Now that is a sound sustainable project to support! To learn more about these dynamic and brilliant entrepreneurs and to help support the WASH project in Haiti visit www.oursoil.org
The 3M program More mangos certified more trees planted.
A couple of days after the Haiti earthquake, a message from organic certifier, teacher and volunteer John O’Malley Burns circulated among members of the Organic Trade Association, asking for help in protecting and expanding Fair Trade and organic certified mango plantations that he helped set up four years ago.
The Mouvman Moun Mango or 3M program is an initiative to produce Fair Trade Certified mangoes. It encourages small producers in different regions to plant and protect more trees as they receive a premium price. The harvest since the project started has been purchased by Whole Foods Market and the certification has also been covered by WFM and O’Malley. “Fairtrade mangoes at better farm gate prices is more money for the growers, who will see trees as more valuable, then they plant more mangos”, says Mr. O’Malley in Port-au-Prince.
“After so many years I continue to be amazed by the resilience of the people in Haiti dealing with the worst of catastrophes”, says Mr. O’Malley. “The informal sector has jumped back. They have re-established market places, sidewalk cookeries, moving about selling phone cards and cell phone recharge fees”. But Mr. O’Malley fears that without additional financial support the disasters will make it practically impossible to continue maintaining an Organic and Fair Trade certifiable grower group system in Haiti. “All hopes of exports of organic and Fair Trade mangos have been shattered, he says. “Life must go on, but establishing and implementing a long term plan that changes the way the country operates is key to a sustainable rebuilding”, says Mr. O’Malley. Contributions to help The Mouvman Moun Mango program are possible via Eco Ventures www.eco-ventures.org.
Support for more ecological toilets to solve major problems simultaneously and more organic and fair trade mango trees and other viable crops to generate more rural jobs while recovering the environment are definitely a way the international organic community could help Haiti now. To further discuss these and other options on how Haiti can restore the land and grow their own food or to share other initiatives we all could support, contact editorial@organicwellnessnews.com
Arbio, Interbio harvest fruit of strong cooperation
Posted - January 15, 2010
Arbio, Interbio harvest fruit of strong cooperation
By Angela Mallaroni
The lifestyle in the picturesque south-west of France is largely built around culinary delights sourced from traditional family farming in Aquitaine and Midi- Pyrénées that offer a whole range of top-quality produce. But until recently few regional menus could be offered 100 percent in organic quality.
This is why both associations, INTERBIO for Midi-Pyrénées and ARBIO for Aquitaine joined efforts to create their common brand Bio Sud-Ouest. “We have the same idea regarding the importance to develop organic networks. We realize how close our regions are in the economic, geographic and cultural aspects,” says Patrick Grizou, organic producer and president of ARBIO. “Bio Sud-Ouest shows how much we want to cooperate in order to further upgrade the (organic) production area in the South West.”
Today, organic production in the two regions is reaching 100, 000 ha across 3000 farms, still not enough to cover all local industry needs. To cope with this lack of organic raw materials, many long term cooperation have started between processors and producers with the support of the regional governments and the National Organic Agency (Agence Bio): 20 new sourcing development projects are supported in this way. For example in the fruit sector, Bio Sud-Ouest is aware that 350ha of organic apple trees, 300ha of prunes and 250ha of tomatoes are requested for processors such as Vitagermine to produce baby food, Danival, Favols and Biolo’klock for fruit spreads and jams, and for Meneau, Vitamont and Fructivia for healthier juice and smoothies.
“After a long stagnation, new conversions to organic production are expected to be a record in 2009 and 2010,” adds ARBIO director Jerome Cinel. There were around 500 new farms certified in 2009 in the whole southwest. Assisting organic growth was the Grenelle de l’ Environnement policy of the French government in 2007, which aims to have organic foods in 20% of catering by 2012.
Sales turnover of processors and distributors rose 25% in 2007, 34% in 2008, and in 2009 growth of at least 30% is expected, higher than the national level thanks to the interregional cooperation, according to Mr. Cinel.
“Managing common inter-regional projects under the same development strategy, Bio Sud-Ouest will be able to offer a consistent local supply and processing chain”, says Magali Baine of ARBIO. Bio Sud-Ouest has now around 95 members with most processors based in Aquitaine, while the majority of producers are located in Midi Pyrénées. Members are farmer organizations like Les Amis de Juliet ®, Agribio Union, Biogaronne and single small to medium sized enterprises. A common goal is priority to local suppliers to ensure genuine high quality end products.
Today, over 1000 products from the region are available in organic quality from fresh oil of Biopress to beepropolis of Pollenergie, with original products like the pre cooked chesnuts of Inovfruit, the fermented soya based products of Sojami, the delicious pastries and biscuits of Patidelis and Moulin du Pivert…with a coffee please ! thanks to Destination and Café Michel. The restaurant and catering sectors are joining the distribution network to offer complete organic menus or meals for schools.
The formidable task over seven years developing bridges between producers, processors and distributors to plan and work together to bring to market a complete range of organic foods has paid off. With the creativity of their Chef , the following enterprises will share with visitors the experiences, tastes and flavours, under the Bio Sud-Ouest umbrella, while exhibiting at BioFach, February 17-20 in Hall 1: Agribio Union, Biogaronne, Biolo’Klock, Biopress, Cafés Michel, Danival, Destination, Favols, Fructivia, Inovfruit, Le Sojami, Les Amis de Juliet®, Meneau, Moulin du Pivert, Patidelis, Pollenergie, Vitagermine and Vitamont.
Sanphi: France gains taste of Brazil
Posted - August 15, 2009
Sanphi: France gains taste of Brazil
By Adriana Michael
Sanphi International, a sourcing, trading and consulting agency established in Brazil two years ago, will be introducing well known organic certified Brazilian brands to France this Fall. After two decades of rich experience acquired dealing with the international market in Latin America, French national Philippe Leclerc decided to relocate to Brazil two years ago to start this new venture sourcing Brazilian foods and ingredients to satisfy the growing demand for organics in France. “I have worked in many parts of the world and mainly in the banking and wine industries”, says Philippe. “I like Brazil very much and with the growing interest in organic food and with the supply not keeping up with the demand in France, it was a good moment to start Sanphi”.
Leclerc has been sourcing the best products available for exporting and is pleased with the results so far: “We have exclusive distribution rights for Native, the largest producer of organicsugar in the world, a firm with 25% market share at the moment”. Native is a Brazilian organic pioneer that has been able to find ways to sustainable development in the highly competitive sugar industry.
Sanphi will introduce Native to BIOCOOP , the largest organic retail chain in France with 320 stores, to Naturalia with 30 stores in the Paris area and to Natureo, a new concept in organic retailing, currently with three very large outlets with over 3,500 sqm, modelled after Whole Foods. “Even though Brazil enjoys a large domestic market for many sectors and does not depend on exports like other countries in the region, I can see organic entrepreneurs taking the export activity seriously, they are eager to develop a good product for the international market”, says Leclerc.
Native has diversified its offer adding other foods such as coffee and Sanphi will introduce those lines to France as well. At first it was difficult for the buyers to understand why Native would not sell under private labels, but Leclerc says now they agree it is a great concept to allow consumers to get the direct connection from the farm to the shelf. To complement the Native line and offer French buyers a complete variety of the tastes and flavours from Brazil, Sanphi will also introduce heart of palm from Fazenda e Casa, instant coffee under its own brand Biograal, flavoured organic mate from Campo Verde and baby food imported from Argentina. “We are concentrating efforts in Brazil with a few companies to serve those three main chains for now, but expect to add other retail chains and other suppliers in the near future”. Leclerc and his partner Stephane Savigny will be present at NATEXPO, to meet their clients at other interesting items the French organic trade may suggest for them to export from Brazil and the Latin American region.
France’s Humble Boom
Posted - July 23, 2009
France’s Humble Boom
By John Coghlan
The next time you nestle into your chair at a Paris bistro and order a wine from Provence, you may be ordering organic. France’s organic market may be small, but, recession aside, growing fast. Sales of organic food jumped 25% last year and more than 60% in the past three years to reach 2.6 billion Euros. Agence Bio, France’s organic association said that sales would probably continue to grow as the public wanted to avoid pesticides in food and genetically modified foods.
Today, organic products in France are offered in all distribution and consumption channels. Already 36% of cafeterias offer at least one organic serving on their menu. In total food sales, organics still have a humble market, jumping from 1.1% of market share in 2007 to 1.7% in 2008. But the organic sector is still growing. Since 1999 organic farmers have almost tripled area allotted to growing organic produce to 580,000 hectares. And market share will continue to grow: 74% of those who had bought organic food said that they would maintain or increase their purchases over the next six months. In a recession, growing markets are something to watch. Agence Bio’s head, Elizabeth Mercier stated that organic products so far appeared resistant to the recession with sales continuing to increase.
One lesson for organic producers and retailers: keep prices modest. In a recent survey, 57% of French polled said that they compare organic and non-organic prices. Only 47% said so in 2006. As well, growth rates are down in all major organic food markets, such as the United States and Germany. The same is proving true for France.
To further build the organic sector, Agence Bio ,in cooperation with other organizations, launched in 2008 a two year national consumer communication campaign. Events that highlight the benefits of organic farming have been scheduled at major stores and fairs. And to increase organic production another initiative is courting grain farmers. Leading organics are the fruit and vegetable, wine and livestock sectors. In the south, Languedoc Rousillon’s organic vineyard area is increasing 36% a year, followed by Provence-Alpes-Côtes-d’Azure, with a 26% yearly growth in organic vineyard area. Last year, 5.6% of France`s fruit cultivation had become organic. Of note too, farmers are planting aromatic organic crops for the perfume industry – above all, lavender, and medicinal herbs for sales in health products. And despite humble cultivated area, in the past year, these crops registered a 25% increase. But the greatest jump in organic production has been the 40% increase in organic olive production. So at the Paris Bistro, even the olive in your Martini may soon be organic.
China’s market shows potential
Posted - April 1, 2009
China’s pretty face
By Adriana Michael - As printed in O.W.N. Winter 2009
When people think of China from a business perspective, probably the last thing to come to mind would be high-end, certified organic cosmetics, but Jasmin Skincare has broken the perception barrier. Run by Gordon Chalmers and Lihua Song, an Australian husband and wife team, the company has launched itself into the Chinese market with great success.
Jasmin Skincare opened its first retail counter in a high-end shopping centre in Guangzhou in October 2008, with plans for seven more points of sale next year.
“Significant sales have kicked off this year with our products now becoming available around China and at counters in the major department stores,” Chalmers said.
With the beauty and lifestyle industry booming in Asia, Jasmin Skincare is ready to tackle it head on, but theirs is not an overnight success. It took the company three years to go through China’s stringent product testing.
After setting up in an old bio-dynamic fruit orchard and jam factory at the top of Mount Tambourine, in the beautiful Gold Coast hinterland of Australia, Jasmin Skincare has focussed since 2005, on foreign rather than domestic markets.
“China does offer amazing market potential,” said Valerie Bell of Bell Alliances, a Canadian based consulting firm that assists Asian and North American companies in the natural and organic food and health care sectors, “but interested parties need to be aware that there is need of strong commitment, perseverance and a readiness to make serious investment”—something Chalmers and Song were definitely willing and able to do.
Bell also explained that the best type of person to navigate business challenges particular to China would be someone with a dual upbringing, perhaps Chinese-American or Chinese Canadian, who was also perfectly fluent in the language and customs of that country. Given that Australian citizen Lihua Song was born in China and is fully bicultural, tapping into the Chinese market seemed the logical choice for Jasmin Skincare.
Though there are no official systems in place to secure a national distributor and gaining national media coverage is notoriously difficult for foreign companies, Song’s bicultural advantage opened many doors. Amazingly, most local and national TV stations in China and Hong Kong have offered Jasmin Skincare major coverage. There was also a program about her life story on national TV during the Chinese New Year celebrations.
“This is obviously a huge thing for a small company,” said Lisa Tristam, spa and aromatherapy business development manager at Jasmin, “and we hope it’s the start of something big.”
Queensland Trade Minister John Mickel said Jasmin Skincare was making the most of the booming luxury markets in China, and have to be commended on being the first certified organic skincare range to pass the strict Chinese Government import certification.
“The Chinese are traditionally tough negotiators ,” said Bell. “They want imported goods, but as much as they are willing to pay for organics, they also want low prices.”
Responding to customers’ needs, Jasmin is committed to helping people by having nutritionists and skincare professionals available to educate people about the importance of organics. In fact, education is how the idea for Jasmin Skincare germinated. Several years ago, Song’s father was diagnosed with cancer, and she started looking into natural medicines. What she found inspired her to delve deeper into natural healing alternatives and natural skincare products. A mere seven years later, Jasmin Skincare is poised to go national across China, a country whose sense of organics is not highly spread yet.
“In Hong Kong the organic sector is much more developed than in mainland China,” said Valerie Bell. “Therefore it is a much easier gateway to enter the giant tiger. Hong Kong has a bilingual workforce, lots of people who have travelled the world, a better mix of west and east. There are also large distribution chains based there to serve not only China, but also other Asian markets.”
These challenges notwithstanding, Jasmin Skincare’s strategy for China is to open more upscaled skincare outlets, holistic lifestyle and well-being stores, and Jasmin spas.
Riding high on the crest of their success in China after only four months, Gordon Chalmers said, “If we got a 12 million dollar order on our first sale, don’t tell me there is no market in China for high-end organic products.”
Brazil Third in Organic Farms
Posted - March 30, 2009
Brazil Ranks Third in Number of Organic Farms
OrganicsBrasil Reported Successful Participation at Biofach
By Sofia Garcia, O.W.N.
Brazil, a country known for the cultivation of both exotic and staple food ingredients, currently ranks third in terms of number of organic farms, according to a recent survey by the International Federation of Organic Agriculture Movements (IFOAM).
This vast Latin American country, which concentrates most of the Amazon rainforest, has been leading the world in production or export volume of coffee, soy beans, cane sugar, orange juice and beef. Now it also offers a wide range of organic certified products for export. Thirty one exhibitors with quality ingredients such as cashews, acai berries, cacao, coffee, and processed foods, supplements, essential oils, cosmetics and even apparel made of organic certified cotton were on display at the OrganicsBrasil Pavilion at Biofach in Nuremberg, Germany this past February 19-22. Exotic Umbu fruit jam and Baru nuts, where two new product introductions at the fair.
OrganicsBrasil also had a stand for the first time at Vivaness (Biofach’s sister and parallel fair for personal care products), with leading Brazilian natural cosmetics firms Ecove and Surya present. Beraca, Brazilian leading supplier of natural and ethical cosmetic ingredients was also showing its range for the third time, first under the umbrella of OrganicsBrasil. “Biofach ‘09 was impressive”, said Filipe Sabara, Beraca’s business director. “The organic market has been growing each year in different product categories, and in the personal care market, it was amazing to see an increase of exhibitors and visitors, compared to Biofach last year”. Sabara added that visitors seemed more focused and knowing the products they wanted to find.
The Beraca group is working hard to supply products that will help natural cosmetics manufacturers continue strong focus on “naturally and organically” claims, which may help them go through tough economic times. Surya export manager Vinicius Vasconcelos was also satisfied with the response to his line at Biofach. “Interest has been high and we have excellent medium term prospects for closing deals with retailers and importers.” Surya’s products use ingredients from the Amazon and are fair trade certified.
According to Ming Liu, OrganicsBrasil project manager, the thirty one Brazilian exhibitors at Biofach generated an estimated $21.8 million in sales opportunities.
“Despite fewer visitors, approximately 30% less than previous years, we noted that those who did appear were more objective, focused on closing deals and establishing long term partnerships”, said Ming Liu. “The results achieved by Brazilian participants were solid and positive.” This season OrganicsBrasil also had a pavilion at Expo West in Annaheim , March 5-8 and is joining the Brazilian pavilion at Sial Montreal, April 1-3 exploring the Canadian market.
More information available at www.organicsbrasil.org.
