International Trade Centre (Geneva)
25 October 2007
Geneva — New ITC research shows that developing country exporters could lose their share of an estimated $66 million (£32.6 million) in annual retail sales of organic food if Britain's leading certifier of organic produce decides not to accept fruit and vegetables that arrive by plane.
The Soil Association, which certifies 70% of the United Kingdom's market for organic produce, will tell British consumers, retailers and importers next week whether they recommend a ban on airfreighted organic fruits and vegetables from the developing world.
No less interested are thousands of farmers in developing countries who make a living by exporting their organic food by plane to Britain. The livelihoods of at least 21,500 people will be "seriously compromised" if the ban takes effect and is enforced by retailers, the ITC report notes.
"A ban could have profound economic impacts on local communities in some of the world's poorest countries," notes Alexander Kasterine, an ITC expert on trade and environment, who commissioned the study to get data on the impact of a potential ban on African producers and the UK market.
Organic production is an African export success story. Airfreight is part of this and has allowed African businesses to export fresh produce and to add value to products through cutting, mixing and packaging.
However, many consumers are convinced that locally sourced food is better for the environment. This is despite a study by the UK's Department for Environment, Food and Rural Affairs (Defra) last year, which showed that most carbon emissions in the food supply chain come from UK distribution and consumers themselves when they shop and prepare food.
Alexander Kasterine adds: "Organic exporters in Africa risk losing UK markets in the name of stopping climate change when African farmers have a carbon footprint that is 3% of the average British consumer."
ITC's study, carried out by the Danish Institute of International Studies, notes that the world's poorer countries account for 79% of the organic foods that are exported by plane to the UK. The biggest exporters are Egypt, Kenya, Ghana, Zambia and Morocco. Between 50 and 60 exporters employing thousands of people worldwide could be badly affected.
Kenyan and Ghanaian communities affected
Country case studies in Kenya and Ghana show that:
Workers, particularly women, risk a decline in living standards. Many people who lose their jobs will probably be forced to sell their assets, as alternative job opportunities are scarce and, where available, pay about half of what workers can earn producing and processing organic food.
Communities may lose educational opportunities. Cancelled contracts for smallholders and other workers will mean their children or extended family members may not be able to attend fee-paying schools (in Kenya this includes all government secondary schools). At present, family income from organic export enterprises pays for the education of an average of two extended family members.
There are likely to be fewer opportunities for other local work. Smallholders and other workers will no longer be able to afford to pay local workers for agricultural and domestic services.
Fewer organic foods on UK market shelves
UK importers, including organic ones, are strongly opposed to the idea of a ban. Unless otherwise directed by their clients, they would respond to it by changing certification body, the ITC study notes. UK supermarkets are also against a ban.
If the ban is successfully introduced virtually all produce now transported by air will be removed from British markets, the study suggests. Conventionally grown products will replace organically grown ones on retail shelves. UK import businesses with a high proportion of organic sales will suffer. Some conventional importers are likely to drop organic products completely.
The annual retail sales of organic goods corresponds to about $85 million (£42 million). Losses of another $9.9 million (£4.9 million) will occur in "dynamic impacts" (demand stimulated by early season availability). Airfreight imports account for 3.1% of all organic fresh fruit sales, 13.9% of all organic fresh vegetable sales and 8.1% of the entire organic fresh produce category.
Organic imports consist mainly of exotic fruits, which account for slightly under half of the total volume, peas and beans with around a third of the total, and salad vegetables, about one-sixth. Of the total 160,000 tonnes imported last year, only 5,000 came by air.
Almost all food flown by plane (95% by volume and value) helps to extend the season of highly perishable products or make them available year-round, to meet consumer demand. Year-round demand cannot be met without importing some categories of fresh produce by air, including green beans, mangetout, snap peas, baby corn, leaf salads, tender-stem broccoli, asparagus and celery. Fresh vegetables and exotic fruits that are diced, chopped or prepared in other ways also cannot be imported by other means.
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For more information:
Contact: Ms Natalie Domeisen, ITC Senior Public Information Officer, tel.: +41 22 730 0370; e?mail: domeisen@intracen.org or Mr Alexander Kasterine, ITC Senior Market Development Adviser, tel.: +41 22 730 0292; e-mail: kasterine@intracen.org
The full report including an executive summary is available on http://www.intracen.org/organics (see Organic Link News).
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About ITC
The International Trade Centre is the joint technical cooperation agency of the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization (WTO).
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