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Market Commentary By Ital-Bras – Organic Ag. Products

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Nov 30, 2022 | Uncategorized

Reading time: 7 minute

EAEU countries plan to sign an agreement on free trade in organic agricultural products.

At a meeting of the Board of the Eurasian Economic Commission, a draft agreement on the procedure for recognizing organic products in the Eurasian Economic Union was approved. The document will be subject to internal approval in the Union States by March 10, 2023.

The draft agreement provides for the unification of requirements for the organic products labeling sold in the Member States, the equivalent use of the terms “organic”, “biological”, “ecological” in the labeling of products, as well as the placement of a single mark of conformity for the organic products production on its packaging.

The agreement will make it possible to unify within the EAEU the requirements for the production and labeling of organic products, which will serve as the basis for mutual recognition of certificates of conformity and free circulation of these products. The access of all producers of the EAEU countries to a common market with more than 180 million consumers will be a good incentive for increasing the pace of development of the organic sector in the EAEU, diversifying organic production and deepening the processing of organic products based on cooperation between agricultural producers of the Union countries

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Kazakhstan exported $36 million worth of organic products per year.

Kazakhstan in 2021 has sharply increased the export of organic wheat, flax seeds and soybeans. In total, organic products were sold in the amount of $36 million. For comparison, in 2020, organic exports amounted to $12.5 million, and in 2019 – $16.2 million.

Wheat occupies the largest share in the export of organic products – it was sold in the amount of $13.2 million last year. In 2020, at the height of the pandemic, sales were as low as $1.7 million, up from $9.7 million a year earlier.

Sales of flax seeds are steadily growing. Last year they amounted to $12.5 million. In 2020 it was $9.8 million, in 2019 it was $4.2 million.

The export of soybeans also increased manifold: in 2021 – $9.5 million, in 2020 – $0.2 million, in 2019 – $2 million.

In addition, last year there was an insignificant volume of exports of organic sunflower seeds – $0.7 million and millet – $0.1 million.

According to QazTrade, foreign certificates of conformity for the production of organic products in Kazakhstan have 38 farms that produce 26 types of products: cereals, oilseeds, legumes, fodder crops and honey. Under the production of organic matter in the country is 22 million hectares of land, which is 1.3% of the total area of agricultural land in Kazakhstan.
Out of 123 countries, Kazakhstan ranks 9th in the export of organic products to the European Union, 4th among the countries exporting organic wheat and 6th in the export of organic oil flax seeds to the European Union.

In total, 47 billion hectares of land are involved in organic production in the world. The global organic market in 2020 amounted to 120.5 billion euros, adding 14% to the previous year.

According to international experts, about 50% of arable land and 70% of pastures are suitable for organic farming in Kazakhstan. The potential of these lands is estimated at $2 billion.

Europe remains the main direction of export of organic products from the Republic of Kazakhstan.

Organic exports from Ukraine: 2022 sowing campaign is completed by 99 percent.

According to Liudmyla Khomichak from the Ukrainian Ministry of Agrarian Policy and Food, 30 percent of certified organic land in Ukraine is currently either occupied or mined. Nevertheless, she announced that the overall 2022 sowing campaign has been completed by 99 percent. Therefore, Ukraine should be able to maintain its high production levels of key crops such as cereals, legumes, and oilseeds. A.Bilych from ‘Arnika Organic’, a company that produces soybeans, sunflowers, corn and other organic crops on more than 15.000 hectares in the Poltava region, shared her experience: “At the beginning of the war, we struggled a lot with the lack of seeds, fuel, and spare parts. But we are proud to say that we managed to finish our sowing season.”

Danish organic exports still booming.

Danish companies exported organic food worth DKK 1.533m (about €206m) in 2013, an increase of 31% on 2012, data from Statistik Denmark has revealed. This is the country’s eighth consecutive year of increasing organic exports and the largest growth ever.

“Denmark is well-known for being the world’s leading organic nation, and we are the home of some of the world’s largest companies – for example in the organic meat and dairy sector. Moreover, we have one of the world’s most innovative and fastest growing industries with about 150 exporting organic companies. Danish organic products reach countries as far as China, Korea and the USA”, Helen Birk, export manager of Organic Denmark explains.

Germany and Sweden remain the largest export markets for Danish organic companies and account for 66% of exports. One of the Danish organic companies that have been increasing these markets is Ørbæk Bryggeri. Both 2013 and 2014 have been really successful, and export turnover has grown by 20 – 30% both years. Demand from Sweden has grown significantly, and the company has doubled exports to the Swedish market in 2014, Niels Romer, director and owner of Ørbæk Bryggeri states.

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Kyrgyzstan adopts the draft law “On Organic Production” in the first reading.

At a meeting of the Jogorku Kenesh today, November 23, the deputies considered the draft law “On Organic Production” in the first reading.

The bill was presented by Deputy Minister of Agriculture Nuria Sooronova. According to her, the draft law was developed in order to create a guarantee system for the safety of organic production for consumers, improve the legislative framework and conditions for the development of organic production, the competitiveness of organic production and increase exports.

In addition, the current Law of the Kyrgyz Republic “On Organic Agricultural Production in the Kyrgyz Republic” was adopted on May 18, 2019. Despite the fact that quite a bit of time has passed, the basic norms of this Law do not quite meet the objectives of the development of organic production and international standards of organic production.

During the discussion, MP Aibek Osmonov noted that the state should provide financial assistance to support entrepreneurs and manufacturers.

Deputy Kamila Taliyeva considers the bill unfinished. “Different activities are necessary for organic production. For the development of organic production, 34 thousand hectares of land is not enough for our 7 million population. Despite the fact that the village of Zardaly in Batken oblast was chosen as an organic region, appropriate support was not provided,” she said. MP Karim Khanjeza clarified which body oversees organic production. As a result of voting, the bill was adopted in the first reading.

Purple garlic in Spain on the way to organic production.

Growing garlic organically requires a European approach to agricultural production. Special products for this will be developed by a Spanish biotechnology company.

Peregrín CEO Felipe Gómez Garcia and Kimitec MAAVi Innovation Center CEO Felix Garcia Moreno have signed a strategic partnership agreement to maximize the sustainability of garlic cultivation by 2030.

“Supermarkets are increasingly calling for a new approach to food production and to meet the demand, we need natural products that offer a high level of efficiency without sacrificing product performance or quality. MAAVi will provide us with these natural solutions that have the same characteristics as their chemical counterparts,” said Peregrín CEO at the signing event.

In particular, Kimitec’s MAAVi Innovation Center will research and develop biostimulants and biopesticides adapted to Peregrín’s agronomic needs to control harmful insects and pathogenic fungi, improve yields and seed processing.

As a result of recent European and global strategies and policies restricting the use of chemical products in agriculture, finding natural alternatives with similar performance has become a priority for many companies in the food industry.

“We are being restricted from using active ingredients without being offered alternatives. This collaboration with MAAVi guarantees our survival,” said CEO Peregrín. “In addition, there is a growing demand for our purple garlic, which is unique in the world and offers a unique set of nutritional and organoleptic properties that go beyond the content of allicin. China is the world’s largest garlic producer and our main competitor in supermarkets, although our product is radically different from Chinese garlic. Its purple color and more intense spicy flavor make it unique and highly valued throughout Europe. This high-quality crop is produced by Peregrin at various production sites and then exported to more than 30 countries around the world.”

“There is a huge challenge ahead of the agricultural industry and growers are in two different positions: there are those who are actively looking for solutions and those who are just waiting for someone else to find them,” added Kimitec MAAVi Innovation Center CEO. – R&D will be a valuable tool, but there are other ways to change field practices, such as digitizing farming practices and using drones.

Plant bioproducts are for large growers who anticipate the inevitable changes in the agricultural sector and want to be the first to reach zero residue while maintaining or increasing their productivity, as organic yields are always premium.”

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Indian organic inspection bodies threatened with withdrawal of approval.

Soon, the European Commission will decide whether the organic certification bodies Control Union Certifications (CUC), Ecocert SA, Lacon and One Cert International will be removed from the list of authorities and inspection bodies authorized to certify agricultural food and feed from India as organic. Background: in the fall of 2020, contamination of ethylene oxide (ETO) had been found in conventional and organic sesame seeds from India, and later in other foods.

ETO is a disinfectant and pesticide that has been banned in the EU since 1979. It is considered carcinogenic and mutagenic. Food products have been recalled due to contamination findings. For food considered to be particularly at risk, for example ginger, guar gum, sesame or turmeric, certificates of analysis from India must be submitted and analyses are mandatory upon import. In addition, importers or processing companies have these foods consistently tested for contamination.

EU vote on glyphosate results in extended approval.

The EU Commission’s Standing Committee on Plants, Animals, Food and Feed (Scopaff) only formally objected to a time-limited extension of the glyphosate authorization. Member states did not achieve a qualified majority to avert an extension.

Popularity of organic food unbroken in Austria despite general price increases.

Organic sales in the food trade in the first half of 2022 are above the previous year in Austria. In the process, total organic sales crack the 2.5 billion Euros mark in 2021.

The first EU Organic Awards were handed out in the end of September.

The event was hosted by the European Commission that presented the eight winners within seven categories:

  • Best organic farmer (female): Nazaret Mateos Álvarez (Entresetas) – Paredes de Nava, Palencia, Spain
  • Best organic farmer (male): David Pejic (Zrno eko imanje) – Dubrava, Zagreb County, Croatia
  • Best organic region: Occitanie, France
  • Best organic city: Gemeinde Seeham am Obertrumer See – Salzburg, Austria
  • Best organic bio-district: Associazione Bio-Distretto Cilento – Campania, Italy
  • Best organic SME: Goodvenience.bio GmbH – Magdala, Thuringia, Germany
  • Best organic food retailer: La ferme à l’arbre de Liège – Lantin, Liège, Belgium
  • Best organic restaurant: Lilla Bjers HB – Visby, Gotland Island, Sweden

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