The organic sector has grown steadily in EU countries in recent years. In 2022, 10.4% of the total utilised agricultural area and 4.5% of the market share was organic. The Farm-to-Fork Strategy of the EU sets the ambitious target of reaching 25% organic area by 2030. The Horizon Europe project OrganicTargets4EU aims at identifying scenarios and initiating a multi-stakeholder policy dialog in support of this target. To better understand what drives the organic sector as to inform its further development, an EU literature review was conducted, enriched with empirical findings from selected EU countries. The key insights are presented below.
A Variety of Factors are Decisive for the Development of the Organic Sector
The commitment to and continuity in support of organic farming by policy makers and market actors are key factors for the development of the sector. Policy commitment is expressed in stable support instruments and measures grounded in long-term policy goals. So far, policy measures have mainly been area support payments pursuing the idea that increasing supply would create its own demand for organic. The analysis proves that a focus on supply alone is inadequate to push organic farming. Countries with a well-established sector have successfully combined supply-push and demand-pull measures at different levels and across the whole value chain. Demand-pull involves supporting marketing and market structures for processing and distribution of organic products. Recent growth trends in several EU countries are often linked to diversified marketing channels and include not only specialised grocery stores, but increasingly supermarkets as well as short food supply chains (e.g. box schemes) for organic products.
In countries with a significant development of the sector, non-agricultural actors from civil society or the state are key to pull demand through public procurement, awareness-raising, information campaigns and increased acceptance of organic farming more broadly. Effective communication, collaboration and trust-building are key to the development of the organic sector. This is particularly relevant in complex supply chains and among actors within the farming community.
Solid information is important for all actors in the organic value chain. For farmers, however, capacity building is critical. The knowledge and innovation system in agriculture (AKIS) is a major driver in support of the organic sector. Our analysis shows that a well-established AKIS for organic draws on a consolidated network and close cooperation of organic as well as conventional actors in advisory services, training and education. However, the AKIS cannot unfold its decisive role where institutionalised funding or focused training programmes for farmers and advisors are lacking or where deficits pertain in organic research and collaborative science practice exchange.
Beyond capacity building, the decision to convert to organic or not is influenced by a variety of factors at the individual level, such as perceived pressure to convert, perceived risks, perceived feasibility of organic or perceived peer pressure. Given the variety of social factors that influence a decision, financial incentives alone may be overestimated as trigger. Values and identity shape organic sector development in the farming community, policy and supply chain. Images of ‘good’ farming at individual farmer, ‘valued’ products at consumer level, or prevailing discourses on farming may not always be compatible with and supportive for organic sector development.
Developments in conventional agriculture have strongly influenced the development of the organic sector. Organic farming offers opportunities to address challenges of conventional agri-food farming at system and individual farm level. Politically, organic farming serves as a response to address pertaining issues of the sector, e.g. environmental sustainability, animal welfare. At individual level, farming related problems or external shocks, like the cost-price squeeze in conventional supply chains, encourages farmers to look for alternatives.
Need for a Food System Approach
Although the analysis suggests that the country-specific context plays a critical role, a combination of specific factors support or hinder the development of organic farming. Most notably a system perspective is needed that combines an active market and value chain development strategy employing a mix of policy instruments that increase both the supply of and demand for organic food, supported by well-established institutions within organic farming. The analysis conducted indicates that what matters for actors considering and maintaining organic farming are well-established supporting system across all domains (e.g. policy, farming community, market): 1) appropriate institutions and cooperation in and across the farming community (esp. for extension and training), 2) a conducive agricultural policy support as well as 3) access to the food market. Beyond that, reliability, legitimacy and a perceived reduction of risk is a prerequisite for considering and maintaining organic farming at farm level.
The organic sector needs stronger political commitment and determination to translate political vision into action as to reach the F2F goals. In light of the limitations of markets to reflect the full ‘value’ of organic production, the state may take a more active role in providing public goods and in addressing the most pressing issues including climate change and biodiversity loss. The F2F targets require reforms and political action targeted at AKIS. A strong focus on participatory research and development may contribute to reducing perceived risks while increasing feasibility or innovative marketing and awareness raising that foster demand. A more effective communication strategy highlighting the social and environmental benefits can help strengthen the unique selling proposition of organic farming. A food system-based, holistic approach could build on alliances with non-agricultural civil society and public actors from relevant policy domains (e.g. health) and provide greater legitimacy to organic farming.
Authors: Ingrid Jahrl and Sabine Reinecke | Research Institute of Organic Agriculture (FiBL)