ORGANIC AGRICULTURE IN EU - (Taken from http://www.organic-europe.net)


At EU-25 level, the certified organic and in-conversion area covered 5.7 mio ha and represented 3.6 % of the Utilised Agricultural Area in 2003. Italy had the most important organic area with more than 1.0 mio ha (about a fifth of EU-25), followed by Germany, Spain and United Kingdom and France. At EU-25 level, 149 000 holdings are certified organic and in-conversion holdings which represent 1.4% of total agricultural holdings. In EU-15, certified organic and in-conversion holdings increased from 29 000 in 1993 to more than 140 000 in 2003 and account for about 2% of all holdings. For EU-N10, organic holdings represent a share of 0.25% in total holdings. Italy had the largest number of organic holdings (31% of EU-25 total), followed by Austria, Spain and Germany.

Five Member States had a share of organic holdings in total holdings above 3%. In the EU-25, the average organically cultivated area per holding at 40 ha was significantly larger than the average area of conventional holdings at 15 ha of UAA. In 2003, certified organic and in-conversion area accounted for 5.1 mio ha in EU-15 Member States, with around 3.1 mio ha of grassland & fodder crops, 1.3 mio ha of arable crops, 0.4 mio ha under horticulture and 0.3 mio ha occupied for other uses. Production of grass and fodder was the most important use of organic land (61%) in EU-15 and even more significant in Ireland, the United Kingdom, Austria, Belgium, France and Greece. Cereals appeared the most important organic crop and represented about 70% of organic arable area. The share of organic and in-conversion cereals in total cereal area was highest in Portugal (6.6%), Italy (5.0%) and Austria (4.9%). Of the 0.35 mio ha of organic fruit, berries, citrus olives and vineyards in EU-15 half is located in Italy and one third in Spain. In 2003, EU-25 certified total livestock amounted to about 3 mio LU or 2.3% of the total EU-25 livestock. Italy, Sweden and Germany held the largest certified herd with more than 0.40 mio LU each. In EU-15 certified dairy cows amounted to 483 000 heads or 2.5 % of the total dairy herd. The United Kingdom and Germany represented about 40 % of EU-15 certified dairy herd. EU-15 certified other cattle amounted to about 1 mio heads or 1.7% of total cattle (non-dairy) herd. Austria held 25% of the EU-15 certified non-dairy herd.
The number of certified pigs is still quite low with 450 000 heads or 0.4 % of the total pig herd in the EU-15. EU-15 certified broiler and laying hens number amounted to more than 9 and 6 mio respectively. France represented about half of broilers. The United Kingdom and France held the largest number of laying hens.
7 EU-15 certified sheep & goats amounted to 2.4 mio heads or 2.4% of total sheep& goats herd. Significant share of EU-15 certified sheep are located in the United Kingdom and Italy. Half of the certified goats are located in Greece.

In 2004, the EU-25 market for organic food products was estimated to represent about 11 bio â?¬. Germany was the largest national market with a share of about 30% of the total EU market volume; other large national markets of organic products are the United Kingdom, Italy and France. The share of organic products in total turnover of food products was about 1% on EU-15 average in 2001. The highest shares of organic food in total food products
turnover were observed in Denmark (5%), Sweden (3%) and Germany (2.6%). However, the share of organic food in total food turnover varied significantly by individual product groups. On EU-15 average this share was 1.8% for cereals, 1.6% for beef, 1.3% for vegetables and fruit, 1.3% for eggs and 1.2% for milk and milk products in 2001. There has been considerable growth in the market of organic products in Europe in recent years. Experts estimate that in the established organic markets like Austria, Denmark, Germany, the United Kingdom and France
average growth rates will not reach more than 10 percent per year over the period 2002-2007.

The importance of individual marketing channels differs among the Member States. On one side, in Belgium, Germany, Greece, France Luxembourg, Ireland, Italy, Netherlands and Spain, direct marketing and marketing via specialised shops dominate the organic sector. However, compared to 1998, the share of retail sales increased significantly in these countries. On the other side, in Denmark, Finland, Sweden, the United Kingdom, Ireland, Hungary and the Czech Republic, most of the sales are concentrated in supermarkets (>60%) and in non-specialised shops. Some specialists are convinced that where organic products are mainly sold through supermarkets, growth and market shares are (and will remain) higher than in other Member States.

As a general rule, organic products receive a higher price than conventional products, but prices diverge depending on the country and on the product. Survey results show that in some cases price premiums for organic products, i.e. the relative price difference between organic and conventional products, are lower for consumer prices than for farmer prices (milk, eggs, potatoes), but the opposite is true for other products (wheat, apples, pork, beef). Price premiums for organic products are in general higher in South European countries, where the organic
market is relatively small.

For EU-15, agri-environment programmes covered about 36 mio ha in 2003. The share of organic or in-conversion land area increased from 0.5% in 1993 to 7% in 2003 of the total supported land area. However, for some Member States, this share was significantly higher. In 2003, agri-environment programmes supported nearly half of all organic land area and about 64% of total organic holdings in EU-15.

 
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