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INTERNATIONAL ORGANIC STANDARDS The Perspective of an Importer from Latin America Claudia Marin Daza INTERNATIONAL ORGANIC STANDARDS The Perspective of an Importer from Latin America Claudia Marin Daza Seminar in Regional Policy and Rural Areas (Marketing and Trade of Fresh Fruit and Vegetable) 31. 05. 08

OUTLINE 1. Organic F&V production in Latin America 2. Major markets for organic F&V OUTLINE 1. Organic F&V production in Latin America 2. Major markets for organic F&V 3. International organic standards 4. Procedures and requirements for importing organic F&V into US and EU markets 5. Implications standards 6. Conclusions for importers regarding international organic

1. ORGANIC FRUIT AND VEGETABLE PRODUCTION IN LATIN AMERICA 1. ORGANIC FRUIT AND VEGETABLE PRODUCTION IN LATIN AMERICA

1. ORGANIC F&V PRODUCTION IN L. A 1. ORGANIC F&V PRODUCTION IN L. A

2. MAJOR MARKETS FOR ORGANIC FRUIT AND VEGETABLE (2000 -2001) 2. MAJOR MARKETS FOR ORGANIC FRUIT AND VEGETABLE (2000 -2001)

2. MAJOR MARKETS FOR ORGANIC F&V 2. MAJOR MARKETS FOR ORGANIC F&V

3. INTERNATIONAL ORGANIC STANDARDS 3. INTERNATIONAL ORGANIC STANDARDS

3. INTERNATIONAL ORGANIC STANDARDS • Standard: “a documented agreement containing technical Standard specifications and 3. INTERNATIONAL ORGANIC STANDARDS • Standard: “a documented agreement containing technical Standard specifications and other precise criteria to be used consistently as rules, guidelines and definitions of characteristics, to ensure that materials, products, processes and services are fit for their purpose. ” (ISO) • Standards facilitate market transactions • Characterization of goods: – Search – Experience – Credence (Organics)

3. INTERNATIONAL ORGANIC STANDARDS 3. 1. IFOAM • Set of principles, requirements and guidelines 3. INTERNATIONAL ORGANIC STANDARDS 3. 1. IFOAM • Set of principles, requirements and guidelines for organic production and processing • Not used for certification • Standards for standards • IFOAM Accreditation Program (IAP): Equivalence 3. 2. CODEX ALIMENTARIUS • • Protection of consumer’s health Facilitation of international trade Harmonization of food standards worldwide Building consumer trust in organically produce

3. INTERNATIONAL ORGANIC STANDARDS 3. 3. NATIONAL/REGIONAL • • European Union (ECC 2092/91) USA 3. INTERNATIONAL ORGANIC STANDARDS 3. 3. NATIONAL/REGIONAL • • European Union (ECC 2092/91) USA (National Organic Program, 2002) Same principle: control for local and internationally produced Specific rules for: • Organic farming • Handling • Certification • Labelling • Inspection • Transportation • Imports • Accreditation of certification bodies • Allowed and prohibited substances 3. 4. PRIVATE • No so relevant for international trade • Stricter than national standards • Trust among consumers

4. PROCEDURES AND REQUIREMENTS FOR IMPORTING ORGANIC FRUITS AND VEGETABLES INTO THE US AND 4. PROCEDURES AND REQUIREMENTS FOR IMPORTING ORGANIC FRUITS AND VEGETABLES INTO THE US AND EU MARKETS

4. PROCEDURES FOR IMPORTING ORGANIC F&V INTO USA AND EU USA A) Equivalency determination: 4. PROCEDURES FOR IMPORTING ORGANIC F&V INTO USA AND EU USA A) Equivalency determination: • Austria • Netherlands • Denmark • Spain • Sweden • United Kingdom • Germany B) USDA recognition of conformity assessment. Governmental negotiations EU A) Article 11(1): “third-country list” • Argentina • Australia • Costa Rica • India • Israel • Switzerland • New Zealand Governmental negotiations B) Article 11(6): “non thirdcountry list” Case-by-case assessment

4. PROCEDURES FOR IMPORTING ORGANIC F&V INTO USA AND EU EU. IMPORTING FROM “NONTHIRD 4. PROCEDURES FOR IMPORTING ORGANIC F&V INTO USA AND EU EU. IMPORTING FROM “NONTHIRD LIST COUNTRY” EU. IMPORTING FROM “THIRD LIST COUNTRY” 1. Production (Farmer/Enterprise third country) 2. Certification (Certification body third country) 3. Application for import authorization 3. Submission of certification document to importer in EU (Importer in EU) (Certification body third country) 4. Granting import authorization (Competent authority in EU) 4. Import and marketing (Importer in EU)

5. IMPLICATIONS FOR IMPORTERS REGARDING TO INTERNATIONAL ORGANIC STANDARDS 5. IMPLICATIONS FOR IMPORTERS REGARDING TO INTERNATIONAL ORGANIC STANDARDS

5. IMPLICATIONS FOR IMPORTERS • (-) Increases costs and time in import process • 5. IMPLICATIONS FOR IMPORTERS • (-) Increases costs and time in import process • (-) Excessive paperwork (when there is not equivalence) • (-) Organic certification seen as a trade barrier • (-) Additional logistical requirements if importer also stores, packs or processes products • (+) IFOAM/IOAS Accreditation may influence granting of import authorizations (e. g. UK). Also influences positively the market entrance. • (+) EU import systems will end this year. The new systems aims for reducing administrative and economic burden for importers

6. CONCLUSIONS 6. CONCLUSIONS

6. CONCLUSIONS • The organic fruit and vegetables segment is one of the fastest 6. CONCLUSIONS • The organic fruit and vegetables segment is one of the fastest growing one among the food sector. It represents between 10% and 40% of all organic sales • Latin America has an important production of tropical and off-season organic fruit and vegetables oriented principally to export. Their major market destinations are United States and European Union • International organic standards constitute guarantee that the product comply with certain characteristics expected by consumers, but they have negative influence in international trade. • Importing from third countries may be a very time-consuming process, when there is no proved equivalence in standards. • However, this is not due to standards themselves, but due to regulations and specific procedures related with their application.

REFERENCES • • • • Bundesanstalt für Landwirtschaft und Ernährung (BLE). 2003. Import von REFERENCES • • • • Bundesanstalt für Landwirtschaft und Ernährung (BLE). 2003. Import von ökologischen erzeugnissen aus nicht-eu-ländern. Technical information, unpublished. Canavari, M; Cantore, N. 2007. The challenge of the international organic certification: a new opportunity for agricultural trading. Contributed Paper prepared for presentation at the 105 th EAAE Seminar ‘International Marketing and International Trade of Quality Food Products’, Bologna, Italy, March 8 -10, 2007. Centre for the Promotion of Imports from developing countries (CBI). 2008. From survey to success: guidelines for exporting fresh fruit and vegetables to the EU. Retrieved on 12. 05. 08 from: http: //www. cbi. eu/marketinfo/cbi/ Centre for the Promotion of Imports from developing countries (CBI). 2008. EU legislation: organic production. Retrieved on 12. 05. 08 from: http: //www. cbi. eu/marketinfo/cbi/ Department for Environment Food and Rural Affairs UK (DEFRA). 2008. Import organic produce. Retrieved on 10. 05. 08 from: http: //www. businesslink. gov. uk/bdotg/action/detail? type=RESOURCES&item. Id=1080062505&r. s=sl Department for Environment Food and Rural Affairs UK (DEFRA). 2008. Organic importers area. Retrieved on 10. 05. 08 from: http: //www. defra. gov. uk/farm/organic/imports/#73 Food and Agricultural Organization of the United Nations (FAO); International Trade Center (ITC); Technical Centre for Agricultural and Rural Cooperation (CTA). 2001. World markets for organic fruit and vegetables: opportunities for developing countries in the production and export for organic horticultural products. FAO, Rome. Foreign Agricultural Service (FAS). 2008. Organic foods. Retrieved on 03. 05. 08 from: http: //useu. usmission. gov/agri/organic. html Garcia, M; Bañados, F. 2004. Impact of EU organic product certification legislation on Chile organic exports in: Food Policy 29, 2004: 1– 14. Garibay, S. 2007. Organic supply chain: general trends. Presentation at Bio. Fach 2007, Nürenberg, February 15 -18, 2007. Golan, E; Kuchler, F; Mitchell, L. 2000. Economics of food labelling. Economic Research Service, U. S. Department of Agriculture. Agricultural Economic Report No. 793. Harris, PJC; Browne, AW; Barrett, HR; Cadoret, K. 2001. Facilitating the inclusion of the resource-poor in organic production and trade: opportunities and constraints posed by certification. United Kingdom Department for International Development, London, 61 p. Tondel, F; Woods, T. 2006. Supply Chain Management and the Changing Structure of U. S. Organic Produce Markets. Selected paper prepared for presentation at the American Agricultural Economics Association Annual Meeting, Long Beach, California, July 23 -26, 2006. United Nations Conference on Trade & Development (UNCTAD). 2003. Organic fruit and vegetables: market, certification and product information for producers and international trading companies. United Nations, New York and Geneva: 308 p. Willer, H; Yussefi, M. (Eds). 2007. The world of organic agriculture: statistics and emerging trends 2007. IFOAM, Fi. B

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