Solid results for BioFach and Vivaness 2010
Posted - February 28, 2010
Solid results for BioFach and Vivaness 2010
By Warren Beaumont
About 43,500 trade visitors (2009: 46,771) defied the crisis and streamed into the exhibition centre in Nürnberg from 17–20 February for BioFach and Vivaness, the annual get-together for the global organic market, according to the organizers NurnbergMesse GmbH. The international share of visitors was 38% again with buyers from 121 countries, mainly from Germany, Austria, France, Italy, the Netherlands, Poland and Switzerland. The 2,557 exhibitors (2009: 2,733), two-thirds of them international, were very satisfied in view of the high quality visitors. 85% of the BioFach exhibitors and even 97% of the Vivaness exhibitors expect good follow-up business, according to the results of a survey by an independent institute. These figures are up 12 and 16 percentage points respectively on the year before – clear proof of an optimistic view of the future. Exhibitors spoken to by Organic & Wellness News noticed a fall in visitor numbers, while the majority were satisfied with contacts made or business achieved.
“The organic market over the past four days at the exhibition proved that this sector has retained its impetus,” says Claus Rättich, member of the management board of NürnbergMesse. “The trend to organic and ecologically sustainable consumption is uninterrupted. Periods of slower growth offer an opportunity for taking stock and preparing joint future concepts, which provide the best conditions for sustainable development of the market and its annual get-together. We were particularly pleased about the great political and media attention attracted by Organic + Fair, the Theme of the Year in 2010.”
With more and more customers focusing their consumption on quality and values, the basis for this is organic, and fair production and trading conditions are other vital aspects. The exhibition duo BioFach and Vivaness was geared to Organic + Fair in 2010, with 52 exhibitors and around 100 product presentations reflecting the variety of the Theme of the Year.
Almost 8,000 participants again used the 180 events at the BioFach Congress and the six special forums to exchange views on the market with special emphasis on the fairness and sustainability aspects. The Fair & Ethical Trade Forum alone attracted some 750 interested visitors.
Vivaness 2010: World market leaders and new discoveries
Fairness and sustainability were also key issues at Vivaness: “The visitors specifically asked about the added value of our products this year. Fair trade and sustainability for raw materials and for packaging are very decisive values today,” says Dr. Alexandra Vogel, director public relations, i+m Naturkosmetik Manufaktur, Berlin. “Buyers are more aware of labels and how natural ingredients are obtained”, says Geysa Rosa Belem, general manager of Brazilian personal care firm Arte dos Aromas. Exhibitors and visitors were eager to come to the booth of Brazilian firm Beraca, one of the leading suppliers of ingredients and natural formulations from the Amazon, exhibiting under the umbrella from Organics Brasil, a government sponsored promotion program.
At Vivaness, the international platform for natural personal care and wellness, 183 manufacturers from 21 countries presented their products. Germany with 88 manufacturers heads the statistics, followed by France (29), Italy (16), Great Britain (12) and Austria (8). Next year, the international organic sector meets in the Exhibition Centre Nuremberg from Wednesday to Saturday, 16–19 February 2011.
At BioFach Congress: Sophisticated consumers demand more
Posted - February 27, 2010
At BioFach Congress: Sophisticated consumers demand more
By Warren Beaumont
A major market trend is that consumers are becoming more sophisticated. Originally, consumers were buying organic food for health reasons and ecological reasons. However, consumers today are becoming better informed. They still care about the environment and today, climate change has made the environment more important. They are also concerned about the chemicals in products and are buying more natural products that are ‘free from’ additives, synthetic colorings and preservatives.
“Consumers are also asking where the product is coming from, where it is grown, if it is ethically sourced. They also want to buy products that are in season, that are locally grown. They’re asking about the carbon footprint of products, and don’t want to buy a product that has been flown halfway across the world.
These themes and the trends of over production; discounters driving down prices and consumer price sensitivity; industry consolidation; more sophisticated consumers demanding more from organic products such as sustainability, fair trade and ecological packaging, were part of one of the key presentations made at the BioFach Congress this past February at ‘The World of Organic Agriculture – Statistics and Emerging Trends’ presented by Helga Willer of the Research Institute of Organic Agriculture FiBL and editor of this annual report and book since 2000; Amarjit Sahota, of business research & consulting firm Organic Monitor, UK and IFOAM’s executive director Markus Arbenz.
“So, what we are seeing is that organics is only part of the equation, when consumers are buying organic foods they want more, they are looking at sustainability and sustainable values”, says Mr. Sahota. “Some of the pioneers of this industry adapted to that and realized that organic is no longer good enough, especially if discounters like ALDI are setting a very low price for organics. Apart from price, you need to compete on other values and these companies are highlighting their products with attributes such as sustainable values - fair trade, ethical sourcing, carbon neutral, local sourcing, promoting biodiversity, ecological packaging, energy usage, reducing waste.”
Growth in organics over the past nine years is quite significant, despite the downturn in 2008, with market growth rates expected to recover in countries such as the UK and Germany.
“Growth has been much lower than in previous years, with only 10% in 2008, while growth has been 235% over a period of nine years (to nearly US$51bn in 2008), that is very significant,” Mr Sahota said. “Sales of organic foods are still concentrated in Europe and North America and represent 97% of global sales. The USA has the largest market for organic food and drink sales, followed by Germany, then the UK, France and Italy.
“In terms of categories, today we’ve seen increases in production of grains and different crops, while most sales of organic food and drink products in almost every country are still coming from fresh products - fruit and vegetables, which represent about 30% of sales; fresh dairy – milk, yohgurt, cheeses; meats, poultry beef, pork; then beverages – juices, soy, tea and coffee; followed by other products such as baby foods and processed foods”, says Mr. Sahota.
“What we tend to find is that fresh and healthy products are the most favoured by consumers and that consumers who eat fresh and healthy foods tend to buy organic foods more than those who buy processed foods.”
Looking at the sales data by regions, the European market was worth about $US26 billion, a slower growth than in previous years, with the largest markets being Germany, France, Italy, Switzerland, and the UK.
“After many years of under supply, we’re now seeing overproduction of organic fruits, vegetables, meat and dairy”, says Mr. Sahota. “Here in Germany, the discounters came in and are selling organic products at very low prices. Consumers are becoming more price conscious in buying food and organic products, while the average price of organic foods over the last 18 months has gone down”.
In the United States private labels have become very important. The leading brand of organic food is O Organics, private label from Safeway, which made over $US400 million in sales in 2008. “What we are also seeing is consolidation, at the producer level, at the wholesaler level, as well as at retailers.
In Asia, Mr Sahota said the market was worth just under $US1 billion in 2008, with Japan the main market. “Major trends there are that consumers are becoming more interested in organic foods,” he said. “However, Asian consumers tend to be more price conscious; they are interested in organic foods but are not always ready to pay a premium. We have seen the market concentrated in the richer countries of Japan, South Korea, Singapore and Taiwan.”
Mr. Sahota also warned of more consolidation, which has been seen in Europe and North America. “We’re going to see some mergers and acquisitions, some companies will leave the sector and close, as the industry is not as profitable as they expected it to be,” he said.
Organic companies are increasingly adopting fair trade practices and now launching the first certified organic and fair trade products marketed as ethical products, a growing trend also in cosmetics.“The certification agencies are recognizing this by adopting some of these sustainable values. Now consumers are demanding more from organics and manufacturers are adopting sustainable practices and certification agencies are really responding to that and this is the way this industry has evolved.”
Euro-Nat: Partnering Bolivian quinoa for 20 years
Posted - February 11, 2010
Euro-Nat: Partnering Bolivian quinoa for 20 years
By Angela Mallaroni
In 1988, entrepreneur Didier Perreol, discovered quinoa at a casual encounter during an exhibition in Geneva. He was looking for a unique cereal product to stand out from his 75 product line his firm Euro-Nat had recently introduced to natural health food stores in France.
Impressed with the grain, Mr Perreol went to Bolivia to meet with ANAPQUI, the only cooperative of small quinoa producers in the country at the time. With his first 500 kg order of Royal Quinoa, Mr Perreol went back home with the commitment to introduce quinoa to France. The emblematic company brand Primeal was born, and an intensive communications campaign followed.
Primeal Royal Quinoa was a success. It was versatile, easy to prepare and mix in many recipes and inspired Mr. Perreol and others to publish quinoa cookbooks. For the next ten years Euro-Nat imported quinoa from the producers in Bolivia and the Primeal brand entered every natural health food store in France. In 2001, Euro-Nat started distribution of quinoa products to major supermarket chains under private label.
To develop a stable project with constant delivery and traceability of the best quinoa available, Mr Perreol made a further commitment: to set up shop in Bolivia itself. In 1997, he founded Jatariy, (‘stand up’ in Quechua), in Oruro, as sister company of Euro-Nat to overlook production, collection, cleaning and packaging of the grain to be exported to France.
Quinoa demand made the price soar. It increased 300% in 2008. Long-term agreements with the producers can be more complicated, as there are many new buyers. Now, consumers in Bolivia can scarcely buy quinoa, while producers sell to all foreign markets.
Quick gains led farmers to plant quinoa in fields or areas not suitable for it, while neither rotating nor properly fertilizing fields, with soil deterioration, falling quinoa quality and plummeting yields.
All products offered by Euro-Nat are organic certified. Mr Perreol is also a founding member of Bioequitable, association established in France since 2002, to promote organically raised and fair traded products independently certified.
Under this scheme, the price to quinoa producers is fixed in agreement with the communities involved, at a higher rate than the conventional market price. Euro-Nat offers additional incentives in bonuses for quinoa grown in the highlands as opposed to the flats.
In the past three years, Jatariy has been working with Vets Without Frontiers to assist farmers raising llamas and alpacas, supplementing farmers’ income. The animals provide manure for fertilizing the quinoa fields.
The company has invested in other interesting community projects. In 2006 it contributed to launching the first radio station in Uru Chipaya language, allowing citizens of the small, Bolivian town of Chipaya to listen to radio broadcasts in their native language for the first time.
Jatariy is also active in a partnership with the BOLIVIA INTI association to provide solar powered stoves and reduce use of wood as fuel; cooperation with Sumax Waksay, for a health care mobile facility; and philanthropic actions such as donations of powder milk and dried foods for public schools.
Jatariy has 37 employees, exported 1,500 tonnes of quinoa in 2009 with a total annual income of 4 million USD. Of the more than 400 products under the brand Primeal, 40 include quinoa.
Over 80 percent of the 200 quinoa producers working with Jatariy have been with the group for 12 years. In France, Euro-Nat employs 84 people and reports an annual income of 53 million euro for 2009. Euro-Nat is also a holding group that acquired the name EKIBIO last year. With a total of 175 employees the holding reported a total turnover of 65 million Euro for 2009.
As result of 20 years committed to promote quinoa , Mr Perreol has built a solid cooperation in Bolivia and France. Currently Mr Perreol and his son Olivier, as export manager, plan to increase their presence in Belgium, Switzerland, Italy, Spain, and Britain. Canada and Japan are also countries of interest.
In Bolivia, Jatariy will diversify and offer black quinoa which is rich in lithium, and red, not only the white variety of Royal Quinoa that has been the one most appreciated in the market due to its larger-sized grain. The company will focus on maca as well. Cooperation was established with the Bolivian firm Naturalcos, which produces and exports the line Maca Spirit.
Another product of interest is stevia, following the EU market and particularly France opening the door for its import. Other grains like canihua and amaranth have interest in the market, and although not as high as quinoa, they have potential as ingredients for food products. After 20 years of commitment, Mr Perreol is still impressed with quinoa the ‘Mother Grain”, the people and the land where it grows.
Organic cosmetic demand grows
Posted - February 1, 2010
Organic cosmetic demand grows
According to British market research company Organic Monitor, the global market for natural and organic cosmetics is growing by over US $1 billion a year and exceeded US $7 billion in 2008. In Brazil, the Ministry of Agriculture is designing a regulation for organic cosmetics.
Instituto Biodinamico (IDB), a leading certification agency, reports strong demand from cosmetic ingredient manufacturers. It currently has around 40 certified companies of which only four are certified cosmetic manufacturers. One of those certified companies is family-owned Magia dos Aromas with an output of 2,000 units per month of vegetable-based cosmetics. (last sentence is OK?)
The FSC label for forestry products is also popular among small and medium companies, which is leading Organica of Santana do Paraiba, a manufacturer of cosmetics and personal care products, to set up franchises from 2010 onwards.
Biofach says the international natural cosmetics market is still growing. The difficult economic environment has astonishingly little effect on the sector’s stable growth record. According to a sample analysis by the international market research institute IRI Information Research of Nürnberg, Germany, natural cosmetics achieved 7.6 % sales growth in the German retail food trade and drugstores in the first half of 2009. In 2008, the entire German market for certified natural cosmetics had grown by almost 10 % to 672 million EUR, with a market share of 5.3 % in total cosmetic sales.
Organic Monitor forecasts continuing growth potential. Estimates indicated that European sales figures rose by 13 % in 2009, with France and Germany showing the fastest growth. The market volume in Europe could reach 2 billion EUR in 2010. At international level, the United States and Asia, primarily Japan and Korea, remain the strongest buyer markets.
Fair trade, ethical food support grows
Posted - February 1, 2010
Fair trade, ethical food support grows
By Warren Beaumont
Nearly a third or 30 percent of UK shoppers say they have specifically purchased locally produced food over the last month, double the number in 2006, according to new consumer research just released by UK-based food and grocery analysts IGD.
Support for ethically produced foods in general has withstood the pressures of an 18-month recession and is in fact growing, despite the tough economic conditions. When asked about food they have specifically purchased over the last month, shoppers responded: 30 percent locally produced food (up from 15percent in 2006); 27 percent Fairtrade products (up from 9 percent); 18 percent products with high animal welfare standards (up from 11percent).
Joanne Denney-Finch, chief executive, IGD, said: “These figures prove what we have been saying throughout the recession – shoppers are looking for both value and values. They are not simply looking for cheaper food in tough times; they also expect the grocery industry to support their moral and ethical values.”
Drilling down into reasons for supporting local food in particular, most said that it was fresher, but the biggest rise over the last few years has been support for the local economy: 57 percent said they purchased local food because it has not travelled as far and is therefore fresher; 54percent wanted to support local producers and farmers (up from 28 percent in 2006); 34 percent wanted to support local retailers (18 percent in 2006) and 29percent wanted to keep jobs in the local area (up from 14percent)
IGD also asked shoppers what improvements they would like to see to their food and grocery shopping experience. Once again, support for locally produced food was up, with 31percent saying they would like more local products available to them, compared with 12 percent in 2005. One in five (20 percent) would like a farmers’ market or farm shop to be established nearby, up from 15 percent in 2005.
