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A new campaign which aims to promote the benefits of organic food and farming across the EU was launched by the EU Commission at a major organic agriculture fair in Libramont in July. Detailed rules needed to implement the new EU regulation governing organic production and labelling were also agreed by the EU Standing Committee on Organic Farming in July. The new legislation, which is designed to further develop the organic sector, will apply from January 1 2009.
The EU Commission launched a new campaign designed to promote the advantages of organic food and farming across the EU at the Libramont fair, with EU Agriculture Commissioner Mariann Fischer Boel insisting "consumer demand for organic products is growing, offering increased business opportunities for all sectors of the food supply chain"; stakeholders in organic farming were called on to promote organic produce through the slogan 'Organic farming. Good for nature, good for you'.
NEW REGULATION
Detailed rules needed to implement the new EU regulation governing organic production and labelling were also agreed by the EU Standing Committee on Organic Farming in July. The new legislation sets out more explicitly rules on production, packaging, processing, storage and transport, in a bid to further develop the organic sector and will apply from January 1 2009. From July 2010, it will also be compulsory for producers of organic food to use the EU organic logo if at least 95% of the final product is organic, but national or private logos can still accompany it.
Approval of the rules was welcomed in part by EU industry, notably the fact that the new clarifications will facilitate daily work for EU organic farmers, processors and inspection bodies. But there are concerns about the short timeframe left for having rules in place in member states before January 2009, and worries over the rules relating to implementation of the new logo. Despite industry demands, Ms Fischer Boel has meanwhile warned against the idea of having a new Action Plan at this stage, and has also rejected calls to increase the EU compulsory modulation rate of farm support to 20% in the Common Agricultural Policy (CAP) review or health check, saying it is politically unrealistic at the moment.
ORGANIC SECTOR
The Commission insisted that there has been a big boost in the organic farming market over the last few years largely due to increased consumer awareness about food safety issues and environmental concerns. The organic farming market has turned into one of the most dynamic agricultural sectors in the EU, with sales of organic products being valued at £10 to 11 billion (€13-14 billion) in 2005. The largest market is Germany with around €4.6 billion, followed by the UK with over €2.8 billion and Italy with €1.9 billion. Austria and Denmark hold the highest market shares of around 5% of the total market. There was also a slight increase of 6% in the EU-25 in 2005 of the area used to grow organic crops in comparison to 2004. This brings the EU organic area to 4% of the total utilised agricultural area. A big drop of 12% in the organic area was, however, recorded in the UK in 2005. Austria has the highest share of organic area, reaching some 11% in 2005, followed by Italy with 8%. Despite the growth levels, officials indicated in Libramont that the organic sector is likely to remain a niche market over the next few years. | |
