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Organic Products in Global Trade :

Bangladesh Scenario and Way Forward

Dr. Md. Khurshid Alam


Principal Scientific Officer
Bangladesh Agricultural Research Institute
&
Fulbright (HHH) and AusAID Fellow
E-mail: Khurshidal@hotmail.com
Cell No. +88-01757290046
Presentation Structure
1. Introduction
- Concept of Organic Agriculture (OA)
- Principle, Standards and Certification
2. Global Scenario of OA
- Organic Production
- Organic Market
3. Status of OA in Bangladesh
- History, products
- Chronological development
4. Problems and Prospects in Bangladesh
5. Way Forward and Conclusion
1. Introduction
Concept of Organic Agriculture
• A production system avoids chemical Agro-
inputs
• Similar to other sustainable farming systems;
• Distinguishing character is certification
According to International Federation of Organic
Agricultural Movement (IFOAM) :

Organic Agriculture is a holistic production


management system which promotes and
enhances agro-ecosystem health, Including
biodiversity, biological cycles, and soil biological
activity.
Organic Farming Principle

Standards

Certification
Benefits of Organic Agriculture
• Safe to human health, life and environment
for sustainable
• Products of good quality and taste
• Gets higher prices
Higher Prices

Conventional Organic
United Nations study – OA increased yields
Organic Standard
Item IFOAM Codex EU
Alimentarious Regulation
2029/2091
Adopt in Initially 1975, 1999; 1991, Modified
Version 2005 Livestock & 2009
bee included in
2001
Scope Food and non- Mainly food Food and non-
food food
Conversion Farm or farm Farm or farm Farm or farm
period unit, minimum unit, minimum unit, minimum
12 months for 2 years for 2 years for
annual plant annual plant annual plant
production; at production; at production; at
least 18 least 3 years least 3 years
months for for perennials for perennials
perennials
Organic Standard
Item IFOAM Codex EU Regulation
Alimentarious 2029/2091
Plant material Ist Organic Ist Organic Similar to
sources; I sources; I Codex
generation generation Alimentarious
for annual for annual
and for and 2
perennial: 2 generation
generation or for perennial
12 months
which ever is
longer
Pest and Similar list Similar list Similar list
Disease
control
GMO products Excluded Excluded Excluded
Organic Certification Process

• Third party certification system


• Internal control system, and
• Participatory Guarantee System (PGS)

• Application

Inspection

Certification

Post-certification supervision
Categories of organic products
• Organic food

• Organic cosmetics

• Organic textiles

• Organic flowers

• Organic restaurant

• Organic hotel

• Organic inputs
Organic Market
BioFach India 2017
Global Organic Scenario

• Total land: 72.3 M ha; ~ 1.5 %


• Wild collection: 35.1 M ha
• No. of countries : 187
• No. of producers: 3.1 million
• No. of Countries with Regulation: 108
• Global organic trade: 106.4 billion Euro

(Source: FiBL & IFOAM, 2021)


Growth of Global Organic Farmland 2000-2016
Distribution of all organic areas
Global Organic Market
Global Organic Market
Distribution of Retail Sales value by Country

Source:FiBL Survey 2021


Global Organic Market
The ten countries with the highest per capita
consumption in euros

Source:FiBL Survey 2021


Global Organic Market
Demand of Organic products in Covid
situation in USA
• Organic food sales jump nearly 13% to
record high in 2020; well above the prior-
year gain of 4.6% (OTA, 2021)

• Organic spice sales climbed 51%, more than


triple the growth rate of 15% in 2019.

• Growth also was strong in organic meat,


poultry and seafood, the smallest of the
organic categories, which saw sales rise
almost 25%
Share of Different Organic Products
3.Status Of Organic Farming in Bangladesh
Started – in the early 1990s;

NGOs: Play a vital role; Proshika, UBINIG,


BARCIK etc.

Private Entrepreneurs: KKTE, WAB Trading,


Square Co, Excellent World, BOPMA
Total Area : 16200 ha (Including aquaculture);

No. of Producer: 9337

Marketing places: Nandan, Agora, Meena bazar,


On-line etc.
Export Organic Products

Tea & Shrimp


• Kazi & Kazi Tea • WAB Trading Intl. Ltd
- Organic shrimp project
- Export since 2010 USA
- Initiated by 2005 ; Shushilan
- Area 1423 ha but 309.8
NGO
- Exported 430 MT - Area 9338 ha; 4093 ponds, 3230
- Certify by OneCert, Lacon farmers
(Germany) - Exported 2645 MT
- Japan, EU & US standards - Certified by ‘Natureland’
- Followed EU regulation
Inputs
• Organic fertilizers: many companies
e.g. Paragon, ACI, GSF etc.
• Vermicompost and Kitchen Waste
Compost: some NGO’s and private
entrepreneurs
• Pest control:
– Neem based (Azadirachta indica)
– Mahogany oil industry at Khulna
– EM & pheromone traps, Ispahani
Agro-biotech
Organic Research at BARI

• BARI is involved to generate organic production


technology;

• Developed inputs production method:


Vermicompost, Trichocompost, Biofertilizers etc.

•Generated bio-control pest management methods


Government Intervention and chronological
stages to develop the NOAP

 March 15, 2009: Honourable Prime Minister


stressed to take initiative for exporting organic
products while addressing to a delegate of FBCCI
which was reflected in National Agricultural Policy
in 2013 under the clauses 4(3) and 11.4

 August 06, 2012: Hortex Foundation organized an


expert consultation meeting and decided to form a
National Working Group (NWG) consists of 11
members.
Government Initiatives
• Formed National Technical committee on OA
under MoA
• Adopted Organic Policy
Prospects of organic farming in
Bangladesh
• Land with buffer zone is available - Hilly region
• Indigenous knowledge (e.g scarecrow, floating agrl)
• Generate employment; wild collection (e.g. Honey)
• relevant for poor farmers who can’t afford chemicals
- Raw materials of compost/vermicompost available
- Fish processing industry, DCC waste
- The panacea of OA ‘Neem’ grown easily
• Labour intensive (e.g. AUD5/day)
• New trading opportunities
Land for Organic produces is available in
Hilly Region
Represents 10% of the total area of Yet not under cultivation
BD
Wild collection from Sundarban
• Located in southern part of
BD
• Largest single block of tidal
mangrove forest
• Area : 10,000 square
kilometers
• Honey production: 30,000
tones/year
• Wax: 10,000 t/year
• Bamboo seedling
Raw materials are available for composting
Kitchen waste produced only in Dhaka city: 5000 ton/day

+ =
WASTES CONVERTING TO RESOURCES
Trading opportunities

Share of different organic Export trends of fruits &


products sale in the world vegetables from Bangladesh
Fiscal Year Export Value
(in Million US$)
2006-07 40.53
2007-08 69.12
2008‐09 50.71
2009‐10 64.21
2010‐11 109.41
2011-12 134.59
2012-13 182.23
Problems faced by organic sector
1. Contradictory with Food Safety Act -2013
Problems Faced by Organic Sector
2. Inspection and Certification issues
Lack of domestic certification agency
Higher cost for certification by international Certifying
agency
3. Other institutional and Legal issues
Absence of internal infrastructure; cooperatives,
Weak institutional support; Course, training &
research
Marketing problems
4. Consumers’ Issues:
Lack of consumer trust because organic products
can not be distinguished from conventional products;
Organic foods are available in limited number of
shops;
Insufficient supply
Problems
5. Farmers’ issues
Lack of technical knowledge
Unavailability of organic inputs
Not willing to change their farm practices

6. Financial Issues
Temporary decrease of production may
cause financial losses
No incentives for organic farmers, lack of
access to premium prices
No loan/credit is provided for organic
farmers
Way Forward
• The Government should implement the National
Organic Agriculture Policy 2016;

• Establishing an association of organic farmers and


entrepreneurs at national and regional level which
would allow them to become organized.

• Raising mass awareness by providing training and


arranging seminar, workshops;

• Developing specialized marketing system with price


premium;

• Arranging a process for group certification,


Way Forward
• To establish model organic farms initiating a pilot
project covering selected crops focusing export
market requirements;
• To arrange national/Regional organic Expo fair,

• To consider Organic Agriculture as the ‘Highest


Priority Sector’ (under export promotion policy)
realizing the continued demand of organic products in
global market;

• To establish Individual Business Promotion Council for


organic products; and

• To undertake Integrated “Plan of Action” for organic


production as like APEDA (India).
Concluding Remarks
• Organic Agriculture is becoming popular around the
world

• The organic trade is increasing at a significant rate

• Adoption of OA in Bangladesh is increasing by all


measures (acreage, growers and sales)

• There is a great potential of OA in Bangladesh and


offers many opportunities to uplift the livelihood

• Bangladesh government should take action to


implement the NOAP 2106 and strengthening the
respective bodies/agencies to enhance exporting.
Let us work for
Introducing and promoting
organic agriculture

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