 |
Market development in China
Domestic Market
In recent years, the living standard and consequently the consciousness of health and environmental protection among the Chinese have been increasing. This has created greater demands for healthy foods and organic foods. Organic food is often sold in big supermarkets in big cities like Beijing, Shanghai, Guangzhou, and Nanjing. There are also a few specialty stores for organic products. However, neither the distribution system nor direct marketing systems have been established so far. One limiting factor for the development of a domestic market is the high price of organic products. The consumer can accept an extra cost of 1020%, but the price is often 3-5 times higher than that of conventional food, which restricts the domestic market to a special group of consumers in the major cities. Local media, in their efforts to promote organic food, have sometimes twisted the concept of organic food, which has reduced ordinary consumers’ confidence in it.
Export Markets
At present, organic products in China are sold mainly to developed region such as North America, the EU, and Japan. It is believed that the export value of organic products has risen to about US$100 million and is forecast by some experts to have an annual growth rate of over 30%. The major export products are processed vegetables, soybeans, honey, grains, green tea, herbal medicines, and beans. The most important places to make contacts regarding exports are expositions such as Biofach in Germany. There is a growing interest in these products, including textile fibers such as cotton and hemp, but current organic production is not able to satisfy the foreign market demand. Another major factor limiting exports are the trade barriers caused by the importing countries’ own organic regulations and standards.
Initiatives to increase consumers’ awareness have included annual exhibitions held in Beijing and Shanghai and directed towards organic operators and consumers. Pioneering organic stores and restaurants in Beijing, Shanghai, Nanjing, and others also can contribute much more to increase consumers’ awareness.
Role of standards
Organic standards provide a theoretical basis and operational criteria for organic production and were the first publicity and educational material for Chinese organic farming. The standard and labeling rules help to regulate the organic market, and help consumers to clearly identify organic products. This has increased consumers’ trust in organic products. Certification is considered the main factor for the development of organic farming in China. Since certification can satisfy the demand of the organic market, especially the international market, organic certification has had a strong influence on the operators(Authors: Ms. Weihua Xie, Mr. Wenpeng You, Mr. Dong Lu and Mr. Xingji Xiao)
Further Reading on China's Organic Sector development:
Early Development of Organic Farming Practices
Agricultural Conditions for Organic in China Regulations and Policies Organization and Lessons Learned (Adapted From IFOAM, Building Sustainable Organic Sectors)IFOAM is constantly updating the information on this website. Comments or suggestions contact the Platform Coordinator
Back to the Growing Organic main page IFOAM is constantly updating the information on this website. Comments or suggestions contact the Platform Coordinator
Back to the Growing Organic main page
|
|
