Organic food presents opportunity for local farmers

Tina Nleya

THE appetite for organic food continues to grow, with Europe and the United States driving demand.

Spurred by increased consumer awareness about health, sustainability and environmental protection, the organic food market has expanded significantly in recent years.

This trend presents a lucrative opportunity for Zimbabwean farmers.

In 2022, the global organic food market was valued at approximately US$227 billion.

It is projected to grow at a compound annual growth rate of 8,8 percent from 2023 to 2030.

Europe and the US collectively account for over 70 percent of the market share.

Organic food sales in the US alone now surpass US$60 billion annually.

In Europe, Germany and France are the largest consumers of organic products, while Scandinavia boasts the highest per capita spending on organic foods.

The European Union’s Farm-to-Fork Strategy, which aims to have 25 percent of its agricultural land under organic farming by 2030, is further driving demand.

Similarly, in the US, a growing segment of health-conscious consumers is willing to pay a premium for organically certified fresh produce, dairy and packaged goods.

Consumer preferences and trends

The shift towards organic products is fuelled by several factors:

Health awareness: Consumers increasingly link organic foods to better nutrition, fewer chemicals and reduced pesticide residues.

Sustainability: Organic farming’s eco-friendly practices appeal to environmentally conscious buyers.

Quality and taste: Many perceive organic produce to be fresher, tastier and of higher quality than conventional alternatives.

  1. Ethical concerns: Ethical considerations, including animal welfare and fair trade practices, also boost demand for organic products.

Opportunities

Zimbabwe’s agricultural potential, coupled with its favourable climate, makes it well-positioned to penetrate the organic export market.

However, success requires strategic planning, adherence to international standards and targeted market-entry strategies:

Organic farming practices: Farmers must transition to organic farming methods, which prohibit synthetic fertilisers, pesticides and genetically modified organisms (GMOs). Internationally recognised certifications, such as EU Organic and USDA Organic, are essential for export.

Certification and compliance: Certification from institutions like GLOBALG.A.P. and the Hazard Analysis and Critical Control Point are critical when exporting.

The Agricultural Marketing Authority (AMA) is working on a statutory instrument that will help the Zimbabwean horticulture sub-sector meet international requirements and standards.

Collaboration in farmer groups: Smallholder farmers can form cooperatives to pool resources, share knowledge and achieve economies of scale in meeting export requirements.

Targeting high-demand products: European markets have a strong demand for fruits like avocados, mangoes and berries, as well as vegetables like peas, green beans and sweet potatoes. In the US, organic leafy greens, citrus fruits and herbs are particularly sought after.

Leveraging agro-processing: Beyond fresh produce, value-added products such as organic dried fruits, essential oils and herbal teas can capture niche markets.

Market intelligence and branding: Understanding consumer preferences and positioning Zimbabwe’s organic produce as premium, sustainably grown products can provide a competitive edge.

What the stats say

Organic farming can be highly profitable due to the premium prices the produce commands in international markets.

In Europe, organic produce often fetches prices that are 30 percent-50 percent higher than conventionally grown products.

For instance, organic avocados have been known to sell for over US$3 per fruit during peak demand periods. Similarly, the US’ organic market offers significant price premiums for fresh vegetables and fruits.

According to the International Federation of Organic Agriculture Movements, organic farmland worldwide increased by three million hectares in 2022, reflecting growing global demand. Zimbabwe, however, lags behind in organic farming adoption, with limited certified farms.

This gap presents an opportunity for local farmers to carve out a niche and supply unmet demand.

High demand for fresh produce

European and American markets rely on imports to meet their organic fresh produce needs. High-demand items include:

  • Fruits: Avocados, bananas, mangoes, berries (especially blueberries) and citrus fruits.
  • Vegetables: Leafy greens, green beans, sweet potatoes and peppers.
  • Herbs and spices: Ginger, turmeric and basil.

Seasonality also plays a role, with off-season exports fetching even higher prices.

Zimbabwe’s climate allows for year-round production of certain crops, giving it a strategic advantage.

Trends in Europe and the US

Europe’s organic imports have steadily risen, with tropical fruits and off-season vegetables among the top categories.

The European Commission reported a 15 percent increase in organic imports in 2023, emphasising the region’s reliance on external suppliers.

In the US, imports of organic products grew by 12 percent in 2022, with fresh produce constituting 40 percent of organic imports.

Trade agreements, including reduced tariffs for African exports, further ease access to this lucrative market.

The rising demand for organic food in Europe and the US presents a promising opportunity for Zimbabwean farmers to diversify their income streams and contribute to the nation’s export growth.

By adopting organic practices, investing in certification and targeting high-demand produce, Zimbabwe’s agriculture sector can position itself as a significant player in the global organic market.

With the right support and strategic planning, this endeavour not only promises profitability but also aligns with sustainable farming and rural development goals.

 

Tina Nleya is AMA’s marketing and public relations manager. She can be contacted on email: [email protected]. Word From The Market is a column produced by AMA to promote market-driven production

 

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