The early development of organic farming in China, The early development of organic farming in China In China, the organic agricultural movement was initially pushed by environmentalists who sought ways to reduce rural environmental pollution and soil erosion, to improve agricultural ecosystems, and enhance biodiversity. In 1989, the Rural Ecology Sector of the Nanjing Institute of Environment Sciences (NIES) of the State Environment Protection Administration (SEPA) attended IFOAM as the first member from China. However, the term ‘organic food’ was completely new to the Chinese people at that time. External demand from developed countries was another initial driving force for organic production in China. In 1990, an international inspector, assigned by a foreign certifier, inspected the first Chinese operators. Three researchers from NIES accompanied the inspector and experienced the first organic inspection. Thanks to increasing international organic trade, the organic sector has gradually increased since the early 1990s. Since the mid 1990s, organic food has become better known, and more and more researchers, government officials, and producers have begun to get involved in organic farming. In 1994, the Rural Ecology Sector of NIES was restructured as the Organic Food Development Centre of SEPA (OFDC-SEPA), and since then has been devoted to promoting the organic sector of China. OFDC has attended almost all the important events organized by IFOAM and has established relations with a broad range of organic actors around the world. Starting in 1998, a 5-year program, ‘Chinese Organic Agriculture Development’, was carried out as a cooperative effort of the Chinese and German governments. The program was mainly undertaken by GTZ and OFDC, and proved to be a huge contribution to sowing ‘organic seeds’ in China. Supported by the program, OFDC has developed into the first certification body, performing certification, research, and promotion of organic. Since 2000, organic agriculture has developed rapidly and many operators and certifiers have entered the organic sector. However, the strong development brought the disadvantage of false certification and products. In 2002 the Certification and Accreditation Administration of China (CNCA) was authorized by the State Council and is responsible for the administration of the whole certification industry, including organic certification and accreditation. Since then, the Chinese organic sector has been regulated more strictly. Market development 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:
The early development of organic farming in China:

In China, the organic agricultural movement was initially pushed by environmentalists who sought ways to reduce rural environmental pollution and soil erosion, to improve agricultural ecosystems, and enhance biodiversity. In 1989, the Rural Ecology Sector of the Nanjing Institute of Environment Sciences (NIES) of the State Environment Protection Administration (SEPA) attended IFOAM as the first member from China. However, the term ‘organic food’ was completely new to the Chinese people at that time.

External demand from developed countries was another initial driving force for organic production in China. In 1990, an international inspector, assigned by a foreign certifier, inspected the first Chinese operators. Three researchers from NIES accompanied the inspector and experienced the first organic inspection. Thanks to increasing international organic trade, the organic sector has gradually increased since the early 1990s.

Since the mid 1990s, organic food has become better known, and more and more researchers, government officials, and producers have begun to get involved in organic farming. In 1994, the Rural Ecology Sector of NIES was restructured as the Organic Food Development Centre of SEPA (OFDC-SEPA), and since then has been devoted to promoting the organic sector of China. OFDC has attended almost all the important events organized by IFOAM and has established relations with a broad range of organic actors around the world. Starting in 1998, a 5-year program, ‘Chinese Organic Agriculture Development’, was carried out as a cooperative effort of the Chinese and German governments. The program was mainly undertaken by GTZ and OFDC, and proved to be a huge contribution to sowing ‘organic seeds’ in China. Supported by the program, OFDC has developed into the first certification body, performing certification, research, and promotion of organic.

Since 2000, organic agriculture has developed rapidly and many operators and certifiers have entered the organic sector. However, the strong development brought the disadvantage of false certification and products. In 2002 the Certification and Accreditation Administration of China (CNCA) was authorized by the State Council and is responsible for the administration of the whole certification industry, including organic certification and accreditation. Since then, the Chinese organic sector has been regulated more strictly.

Market development

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:

Case Studies of Organic Sector Development

Agricultural Conditions for Organic in China

Regulations and Policies

Organization and Lessons Learned

(Adapted From IFOAM, Building Sustainable Organic Sectors)

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