IS THE CURRENT ORGANIC INDUSTRY TRULY ORGANICS AND SUSTAINABLE

Net Impact/Sasin (19 November)

What is definition of organic agriculture?

“Organic Agriculture is a production system that sustains the health of soils, ecosystems and people. It relies on ecological processes, biodiversity and cycles adapted to local conditions,

rather than the use of inputs with adverse effects.

Organic Agriculture combines tradition, innovation and science to benefit the share environment and promote fair relationships

and a good quality of life for all involved.”

IFOAM Defintion http://www.ifoam.bio/en/organic-landmarks/definition-organic-agriculture

Global Market – Organic Food & Drinks

0

10

20

30

40

50

60

70

2000 2003 2006 2010 2011/12

Global Market - Organic Products

Billion US$Growth continues: Global organic market at 72 billion US Dollars with 43 million hectares of organic agricultural land worldwide – FiBl (Feb 2015)

Development of organic agricultural land in the regions 1999-2011

4 Source: FiBL-IFOAM-SÖL 1999- 2013

The ten countries with the largest numbers of organic producers 2011

5 Source: FiBL -IFOAM survey 2013, based on national data

sources and data from certfiers.

The countries with the largest domestic markets for organic food 2011

6 Source: FiBL-AMI- IFOAM 2013, based on national data sources

ORGANIC = big business

Now

Q1: Is the current organic industry truly “organics”?

Supposedly

“Organic Agriculture …. to benefit the share environment and promote fair relationships and

a good quality of life for all involved.”

Questions to ask

• How much is this market potential is benefiting the smallholder farmers?

• How much is this healthy consumption movement is benefiting low income group?

Is diversity in the landscape = organics?

Build in animal husbandry

into the crop production

system

OR: Animals on farm

What about the regulations?

• Global Organic Regulations & Certification Process

• Consumer protection

• Promoting “fair relationship”?

Example: Exporting to China Cost of Organic Certification

• 2 farms + 1 processing unit within 1 region • 3 inspections - one inspector in one trip, • the cost inspection for the 3 units (2 farms and one processor):

– US$5,000 (inspection and certification)+ – US$500 (sample test)+ – US$1,000 (airfare and accommodation)+ – Total = US$6,500 USD (per year)

• If produces can be sold to China on average, say, of 2 USD (approx. 72 THB) for one kg,

• Then the cost for Chinese organic certification would equal approximate 3.3 tons of produce.

• NOT including the Cost of Production…. • BUT: at 2014 farmgate market price for conventional Longan/Lamyai Northern

Thailand – THB6.00 per kg... – How much would buyer willing to pay for certified organic longan?

• Questions: will the market pay for such high premium? If so who can afford it?

Q2: Is it sustainable?

• What is meant by sustainability?

• Framing of sustainable development progress according to the Circles of Sustainability, – used by the United Nations

• It depends…

Example: Sustainable Organic Agriculture Action Network (SOAAN) Flower

However…

Who Owns Organics now…

Hain

Celestial#83

ShariAnn's

M&M

Mars#10

Mondelez#19

(spinoff from

Kraft)

Coca-Cola#11

General

Mills#7

Cargill#14

White-

Wave #52

(spinoff of

Dean)

ConAgra#12

Kellogg#13

Walnut Acres

Millina's Finest

Frutti di Bosco

Muir Glen

Celestial Seasonings

Imagine/Rice Dream/Soy

Dream

Little Bear

Arrowhead Mills

Bearitos

Spectrum Organics

Lightlife

The Organic Cow of

Vermont

Breadshop

Alta DenaWestbrae

Mountain Sun

DeBole's

Earth's Best

Nile Spice

Health Valley

Westsoy

Cascadian Farm

Garden of Eatin'

Casbah

Horizon

Odwalla

Silk

Organic Industry

Structure:Acquisitions & Alliances,

Top 100 Food Processors in

North America

October 2001

$181 M

July 1998, 13% Equity;January 2004, 100% Equity, $216 M

Morningstar Farms/Natural

Touch

November 1999$307 M

Organic Brand

Acquisitions

# Numbers refer to rank in North American food & beverage sales

according to Food Processing,

August 2013

October1997

$23.5 M

June2003

October 2001

June 2001September 1999

From Heinz

March 2000$390 M December

2002

April 1999$80 M

April 1998$80 M

December 1998Back to Nature

Boca Foods

French Meadow

Seeds of Change

1997July 2000;

September 2013, sold to Brynwood

Partners

December1999

March1998

May 2002$189 M

May 1999

April 1999

June2000

September 2003100% Equity;August 2012

majority stake sold to Brynwood

Partners

Kashi

August 2005

$33 M

February 2000

Food

Processors

#

Hershey

Foods#20

Dagoba

October2006

TofuTown

June 2007From Dean

Naked Juice

Pepsi#1

November 2006

Green & Black's

January 2010

Alexia Foods

July 2007

Wholesome & Hearty

BearNaked

November 2007

$122 M

July 2006 (discontinued

organic October 2013)

Nestle#3

Tribe Mediterranean

Foods

September 2008$57M

via Israeli subsidiary Osem Group

(50.1% Equity)

LaraBar

HonestTea

February 2014

February 200840% Equity

$43 M;March 2011100% Equity

June 2008

MaraNatha SunSpireMarch2008

Rich

Products

Corp.#40

Post

Foods#85

(spinoff from

Ralcorp)

Golden Temple

Peace Cereal

Willamette Valley

Granola

Food Should Taste GoodFebruary 2012

Campbell

Soup Co.#29

Bolthouse Farms

July 2012$1.55 B

Phil Howard, Associate Professor

Michigan State University

Hillshire

Brands#30

(formerly Sara

Lee)

Aidell's Sausage

May 2011$87 M

Sweet Leaf Tea

May 2011

Stonyfield

Brown Cow

J.M.

Smucker#24

R.W. Knudsen

Santa Cruz Organic

Snyder's-

Lance#65

Late July

BluePrint

November2012

May2013

Ella's Kitchen

Happy Family

May 201392% Equity

AB InBev#5

Goose Island

March 2011$38.8 M

Ralcorp(private label

organic foods)

Bloomfield Bakers

Lovin Oven

March 2007$140 M

November 2012

$6.8 B

Millstone

November 2008

1984 1989

December 2007minority stake

February 2003

October 200140% Equity;

January 200485% Equity

May 2013$158 M

May 2010$71 M

Miller-

Coors#16

Crispin

February 2012

Fox Barrel

January 2010

Bimbo

Bakeries#22

Olafson's Baking Co.

February 2014$1.7 B

July 2002

Perdue

Farms#31

Coleman Natural

May 2011

Hans

August 2003

August 2007

Draper Valley Farms

Petaluma/Rosie

January 2002

Tea Forte

January 2012

JAB/ D.E.

Master

Blenders(formerly Sara

Lee)

Wolfgang Puck

July 2008

Foster

Farms#45

Humboldt Creamery

August 2009$19.5 M

CROPP

(Organic

Valley)#91

Canada

Bread Co.#67

TreeHouse

Foods#46 Sturm

Foods

December 2009$660 M

Naturally Fresh

March 2012$25 M

Hearthside

Foods (cereal

division)#92

Meyer Natural Foods

December 2010

Diamond

Foods#89

Kettle

February 2010$615 M

J&J Snack

Foods#94

Kim & Scott's

June 2012$7.9 M

John B.

Sanfilippo

& Son

Orchard Valley

Harvest

May 2010$29.5 M

June 2010; joint marketing agreement

November 2009, Stonyfield

brand licensed to CROPP for fluid milk

Danone

(Dannon)#68

Dakota Beef

Peet's Coffee &

Tea

August 2012$1 B

New Morning

December 2012

Erewhon

Plum Organics

May 2013

Earthbound Farm

December 2013$600 M

Enray

August 2013

PowerBarPria

February 2014(from Nestle)

Golden Boy

December 2013

Dakota Growers

Pasta September2013

Immaculate Baking

January 2013

Green Mountain

Coffee

February 201310% Equity

$1.25 B

Global Successful Stories

• Royal Project (Thailand)

• Mae-Fah-Luang Foundation (Thailand)

• Hansalim (S. Korea)

– http://eng.hansalim.or.kr

• Sekem (Egypt)

– http://www.sekem.com

• Wayanad Social Service Society (India)

– http://www.wsssindia.com

OA offers the world its strategies to address global challenges

• Food security

• Rural Poverty

• Climate change mitigation/adaptation

• Biodiversity conservation

• Sustainable natural resources (water, soil)

• Peace

“We must ensure that sustainable agricultural livelihoods, rural employment creation, and nutritious

food production are integrated into development policy, programs, and partnerships in order to support

smallholder farmers…

…Through innovation and collaborative efforts, we can develop effective relationships along the value chain to

create opportunities to lift people out of poverty.”

Source: The Chicago Council of Global Affairs

Make Living and Peace Sustainable

www.goorganics.org

Thank you

Make Living and Peace Sustainable

www.goorganics.org

Backup Slides

About myself • Born and raised in Hong Kong

• MBA from University of Hong Kong

• Moved to Thailand in 2009

• Started Adams Organic in Thailand in 2009

• Rotary Peace Fellow from the Rotary Peace Program Chulalongkorn University 2013

• Rotary Peace Action Group Committee Member

• IFOAM Organic Leadership Fellow 2013

• Founder of Go Organics Co Ltd.

• Involved with developing farmers and farming communities

• Current focus is learning and building a financial sustainable social enterprise

• Build peace by promoting organic farming and sustainable economic development

About Go Organics

• Global initiative in promoting sustainable living and peace

• Go Organics Co Ltd (Thailand) – a startup company registered in Thailand

– Aims to be a social enterprise company supporting sustainable community development and peace by promoting sustainable farming in Thailand.

– Follow us at SMNwww.facebook.com/goorganics.thailand

Make Living and Peace Sustainable

Rotary International Rotary Peace Study Rotary Peace Fellows • International non-profit humanity

organization

• Rotarians are 1.2 million neighbors, friends, and community leaders who come together to create positive, lasting change in our communities and around the world.

• Six areas of focus: • Prevention and Resiolution of

conflicts and the promotion of peace

• Prevention and Treatment of Disease

• Water Cleanliness

• Mother and Child’s Health

• Basic Education and Literacy

• Economic and community development

• Six Rotary Peace Centers fully funded by Rotary International

• Currently close to 1,000 Rotary Peace Fellows worldwide

• The International Federation of Organic Agriculture Movements.

• The global umbrella body for organic agriculture stakeholders, with over 750 members worldwide.

• IFOAM’s mission is to lead, unite and assist the organic movement in its full diversity.

• Our Goal is the worldwide adoption of ecologically, socially and economically sound systems that are based on the principles of Organic Agriculture.

• The full diversity of Organic Agriculture includes both certified and non-certified organic agriculture.

Value Chain Approach

Market

Value Chain: Cost and control at every Link

Production

Processing & Packaging

Transport & Distribution

Wholesaling

Retailing

Solution: Direct Marketing

Farmers Wholesaler Retailer End Customers

Main Drivers for Conflict

• Inequality

• Human Rights abuse

• Fight for national resources

• Education and earning opportunities

• Social exclusion

• Poverty