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Organic Farming in Belgium 2008Petra Tas, BioForum Vlaanderen
2 Development of the sector, comparison with surrounding countries, expectations for growth 2.1 Status quo of the Belgian organic sector - maturity 5 Production and processing: Scale & evolution 7 Most important organizations 9.1 Consumption - scale and evolution 9.3 Analysis per subsector – import & export 10 Strengths and weaknesses of the Belgian organic sector 1 General SituationBelgium is one of the smaller countries of the European Union, surrounded by the Netherlands, Luxemburg, Germany, France and, with the Channel in between, the UK. Belgium has a surface of 30’528 km2 and 10.5 million habitants. This results in a very high population density (344/km2 in 2006). Belgium is divided in two principal regions, Flanders and Wallonia, both with their own official language: Dutch and French. There is also a small German speaking minority. Today agriculture is of minor importance: Only 1% of the gross national product GNP is realized through agriculture. The total agricultural area is about 1’371’955 hectares (in 2007) with 47’936 farms. In 2004, Belgian families spent 15.8% of their budget on food, drinks and tobacco. That makes food, drinks and tobacco the second most important group. Belgium uses the Euro as currency. . 2 Development of the sector, comparison with surrounding countries, expectations for growth2.1 Status quo of the Belgian organic sector - maturityThe Belgian organic sector has known an important growth in the late nineties until 2001. After five years of fall and stabilization, the sector has grown again slowly since 2006. This evolution should however not be seen apart from the general evolution in agriculture: the number of farms tends to decline every year (in 2007 by 4%) as well as the agricultural area (minus 0.8% in 2007). From that point of view, the growth in organic is rather remarkable. The regional differences in the organic sector in Belgium are quite important: Flanders reaches only 0.6% (in 2007) whereas Wallonia comes up to 3.9% (2007). As a whole, Belgium achieves 2% which is comparable to the Netherlands, where the organic area has a share of 2,5%. The weak growth in Belgium has several causes. The intensive character of the agriculture in Belgium, and especially in Flanders makes the conversion difficult. Belgian agriculture demands a lot of (expensive) work and capital; organic agriculture is even more demanding, and the conversion is financially difficult to bear. Moreover the country is very small, quite urbanized (especially Flanders) and import from the surrounding countries (like France, Germany, the Netherlands) is very common. The Belgian population is rather conservative and is not easily convinced to change its buying habitudes. Finally, until 2007 the most important general farmers’ organization was only marginally interested in organic production and did not stimulate conversion. 2.2 ExpectationsSince the early 1990 several non-profit organizations are working in the field to promote organic agriculture: Velt, Belbior, Probila-Unitrab, Unab, Nature & Progrès and others. In order to strengthen their actions, they professionalized and some of them united in Flanders into one organization - BioForum Vlaanderen - in 2008. The demand for organic products seems to be growing. In 2007, domestic sales were evaluated at about 283 million Euros. The organic sector has a share of approximately 1,87% of food sales, constituting a 15 percent growth compared to 2006. Politically, organic production gains more and more recognition and has been supported over the last few years by several Ministers of Agriculture. However it has been considered more as an experimental agriculture, interesting enough to try out techniques that can stimulate agriculture in general to become more environmental friendly, but not as a full alternative. In June 2008, the Flemish government starts a new action plan to stimulate organic agriculture. The most important farmers’ organization finally seems to be interested in organic agriculture, which could make a big difference in the number of conversions. In Wallonia the growth of the organic area is obvious. . 3 LegislationBefore the government showed interest in the organic sector, a group of pioneers organized themselves. They wrote the standards for organic farming, developed a label 'Biogarantie' and organized inspection and certification. In Belgium, the use of the word 'biologisch' or 'biologique', which means 'organic', has been legally protected since 1991 (European regulation 2092/91) and 1994 (Belgian standards). One cannot use the word 'biologisch' (nor one of its translations) on food products without complying with the legal standards and being controlled by one of the two accredited control bodies. Only their certificate gives the authorization to place organic products on the market. Companies that wish to market organic products have to bear the control cost themselves. The Belgian organic sector has to respect legal standards that are equal for the whole European Union. Each country can impose additional rules to comply with. Nevertheless, from January 1st 2009, all national legislations in the European Union will be harmonized. At that date the revised regulation 834/2007 will become valid. Information on the European legislation as well as the legislation itself can be found at the Organic Europe homepage. Information on the Belgian legislation can be found, in French, at: http://www.integra-bvba.be/Frans/f-framebio.html (look at 'notice explicative'). . 4. Labeling
However, this label is not compulsory. Some organic products only mention the word 'biologisch' or 'biologique', with additionally the name or code of the inspection body. With the words 'biologisch' and 'biologique' being legally protected, they guarantee the organic character of the concerned product. There are quite a lot of foreign organic products on the Belgian market, with one or more labels. The current European label for organic production is not very common due to some additional conditions. Most of the European countries have their own organic label. In Belgium, the most known are 'EKO' from the Netherlands and 'AB' from France. Foreign organic products can obtain the Belgian label Biogarantie as soon as they have been certified as equivalent. This will facilitate recognition by the Belgian consumer. Some products comply with the standards of the organic-dynamic movement. They are considered to be the pioneers of the organic sector and respect an additional range of standards. Their label 'Demeter' is the same in the whole world. The Demeter-label and standards are developed by Demeter International. In Belgium only few farmers follow Demeter. Demeter products are only sold in specialized organic shops. . 5. Production and processing: Scale & evolutionThe organic area has known an important growth in the late nineties (1998 - 2000), partly due to some food scandals. At that time organizations and a single minister had the ambition of reaching 10% organic area in 2010. However, after a short period of expansion (until the end of 2001), organic production lost much ground. By the end of 2007, the organic area had recovered and counted for 2.4 % of the total agricultural area. 5.1 Land area and farms. Table 1: Evolution of the organic area (organic and in-conversion) in Belgium 2002 to 2007
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Graph: Development of the organic land area in Belgium 1994-2007Source: BioForum Belgium, Eurostat; Graph: FiBL
Table 2: Development of the number of organic farms in Belgium 2002-2007
5.2 Land use
Graph: Main land use types in organic farming in Belgium 2007Source: BioForum, Graph: FiBL 5.3 Animal husbandry
5.4 Processing
Table 3: Development of organic processors in Belgium 2003-2007
. 6 EmploymentIn 2005, only 1% of the Belgian GNP was realized by agriculture. The organic sector counting for only 2% of the agricultural area and realizing only 2% of the market sales, has only minimum impact on the GNP. In 2006 Belgian agriculture had 46’355 full employments and 42’386 partial employments. There are no exact figures available for the organic sector. However, considering the fact that the organic sector counts for 2% of the total area and that the work on an organic farm is slightly more intensive, we estimate that the organic agricultural sector accounts for 930 to 1000 full employments and 850 to 1000 partial employments. The food industry is the third employer in Belgium with 90’000 employees. Considering the fact that the organic market represents only 1.65% (2006) of the food market, we estimate that organic food processing gives work to approximately 1500 people (2006). The labour cost for farm work is about 9 Euros per hour. . 7 Most important organizationsPolitically, agriculture is a regional matter; this means that the politics on organic agriculture is quite different in the Flemish (northern) and Walloon (southern) part of Belgium. The Flemish government has, since a few years, stimulated organic agriculture by means of an action plan. (see http://lv.vlaanderen.be/nlapps/docs/default.asp?fid=34) This action plan includes among other things, financial support for organic farmers and for the umbrella organization BioForum Vlaanderen, actions to manage the supply chain, to promote organic products, to integrate organic agriculture in educational programs, to improve the coordination of scientific investigation on organic agriculture, etc. The new action plan for 2008 is being written in close cooperation with the organic sector and the conventional professional organizations. It will be presented in June, during the national 'Organic Week': 'Bioweek'. For organic processors or distributors, there is no specific support. The Walloon government is favorable towards organic agriculture and they strongly hold on to the principles of organic agriculture. However, the support for the organic sector is rather minimal and is focused more on supporting the professional market channel. The interest group BioForum Wallonie receives less support than in Flanders. Among the organizations that stimulate organic consumption and production, we need to mention the following: BioForum
VeltVelt is one of the most known 'amateur organic gardeners' organizations that promote an ecological way of life. Eating (local) organics is one of their mottos. Their action radius is Flanders. Nature & Progrèsis a similar organization to Velt but operates mainly in Wallonia. Belbiorused to be the Flemish organic farmers organization and Probila-Unitrab the national professional organization for organic processors. However, both organizations merged with BioForum Vlaanderen during spring 2008. Unabis the Walloon organic farmers organization. Narediis the national federation for food supplements and dietary products. They support both organic and non-organic supplements. Vredeseilandenis an development organization that battles for sustainable and fair agriculture in the South and in Belgium. In Belgium their actions mainly concentrate on organic agriculture. They organize organic fruit supply in elementary schools (www.biofruitopschool.be) and support the production of products that bear both fair trade and organic labels. Bond Beter Leefmilieuis the umbrella organization of the environment action groups. They support organic agriculture for being more environment-friendly. VLAMis a division of the Ministry of Agriculture and Fishery responsible for the promotion of all farm products. They also promote organic products. . 8 Action plansAs stated above the Flemish government works out action plans on regular bases with financial support for organic farmers and for the umbrella organization BioForum Vlaanderen, actions to manage the supply chain, to promote organic products, to integrate organic agriculture in educational programs, to improve the coordination of scientific investigation on organic agriculture, etc. Action plans for organic production are always linked to the Ministry of Agriculture. Other Ministries like Health, Economics, Environment did not yet formulate goals for organic agriculture or food products. Apart from these action plans, Belgium does not have covenants as we see for example in the Netherlands, in which all parties (farmers, government, wholesalers) commit themselves to well defined amounts and prices. . 9 The Market for Organic Food9.1 Consumption - scale and evolutionSince several years, organic food sale in Belgium is evaluated by GfK, commissioned by VLAM, the Flemish promotion bureau for agriculture and fishery. Their figures are based on the purchases of a selected consumer panel. According to GfK, the sales of organic food products decreased since 2002 to reach 184 million euros in 2006. However this figure is in conflict with the figures gathered by BioForum Vlaanderen based on actual sales figures of the different distribution channels. According to BioForum Vlaanderen, organic sales reach an amount of 245 million euros in 2006 and of 283 million Euros in 2007. As BioForum Vlaanderen only just started the market evaluation, there are no figures for the years before 2006 and comparison is not possible.
Graph: Development of the Belgian market for organic food 2006 and 2007; Sales in million Euros Share of total domestic marketSource: BioForum, Graph: FiBL
The market share of organic products is about 1.65% in 2006 and 1.83 % in 2007 (only 1.3% in 2006 according to GfK). However, we see a great difference between the different product groups. Table: Importance of organic products by product group
9.2 Marketing channels
The last decennia we have seen the independent groceries in city centers disappear under the pressure of supermarkets and hard discounts. The last years, supermarkets tend to reinstall small 'grocery-like' shops in city centers. Bakeries and butcher's shops seem to be able to withstand the pressure of the supermarkets by their personal service and a broad range of fresh products. Organic food is nowadays available in many different ways. We can distinguish supermarkets, specialized organic shops, market sales and farm shops. Unlike the common food market, there are very few organic bakeries and butcher's shops.
9.2.2 SupermarketsThe supermarkets of Delhaize and Colruyt both offer a wide range of products. Their shops are dispersed through the whole country in the neighborhood of every town. Most of the organic products that they offer are packed under their own name and label. The Colruyt group also has an organic supermarket chain, named Bioplanet. With only 4 shops in 2007 (of which one in the Netherlands), they plan starting up several additional shops. Carrefour, the third important supermarket chain has only few organic products, mostly under their own label. These supermarkets reach a broad variety of consumers and therefore help the sector to grow and to improve market penetration. The Belgian branches of discounters such as Lidl and Aldi do not yet follow the trend of organics.
9.2.3 Specialized shopsApart from the supermarkets, there are approximately 365 specialized organic shops, most of them independent. However, there are two chains of shops organizing themselves together for purchase, promotion and quality check, using the same name and identity. In Flanders the Bioshop-chain unites +/- 26 of them. Origin'O is a small but important chain with 5 shops. These shops usually offer a range of organic products quite different from the supermarkets: whole grain products, products without any sugar, without food additives, all kinds of vegetarian products and so on. Apart from fresh products (like fruit and vegetables) and food that keeps well, they usually sell a great amount of (often imported) organic bread and a choice of organic cheese. Often they not only sell food but also ecological cleaning products and ecological beauty products. These shops mainly reach a public that is already regular buyer and convinced of the quality of organic products. Quite a lot of organic farmers (32%) market their organic products themselves. They sell at the farm, at the market or offer a weekly package of fruit and vegetables that the consumer can pick up in a sales point of their choice. (cfr. Voedselteams) . Graph: Marketing channels for organic food in Belgium 2007
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Key documents- Puur - April 2008: Bio in cijfers (data 2007, in Flemish) - Puur - April 2007: Bio in cijfers (data 2006, in Flemish) - Puur - April 2007: Le Bio en chiffres (data 2006, in French)
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