Pretoria, 26 April 2016 - The production and export of organic agriculture from South Africa hold vast opportunities and benefits for the economy, society and the environment, found the new report, entitled Trade in Certified Organic Agriculture – Challenges and Opportunities for South Africa, released by the United Nations Environment Programme (UNEP) under the Green Economy and Trade Opportunities Project (GE-TOP).
The report concluded that South Africa faces a significant window of opportunity for tapping into a global market that is growing by 10 percent annually. This market requires international trade to connect producers, mostly based in developing countries in Asia, Africa and Latin America, with informed consumer markets that are largest in OECD countries.
Overall, South Africa covers an area of 122.3 million hectare (ha), and about 13 per cent of the surface area is used for crop production. However, only 20.000 ha are certified organic with roughly 300 farmers knowledgeable in this sustainable farming technique. Limiting factors for agriculture are soil quality and the availability of water. South Africa faces significant challenges in both, as emphasized by the recent drought. It is estimated that by the year 2050, between 350m and 600m people in Africa experience water stress due to climate change. Yet, farmers could make a substantial contribution to change the climate for the better. Organic agriculture achieves greater carbon sequestration as a result of humus restoration leading to a better soil quality which captures more water, and generally organic crops are more resistant against outside effects. Moreover, organic agriculture does not use any harmful chemicals or pesticides that can negatively affect consumers, farm workers and the environment. The UNEP report identified a number of benefits for South Africa arising from increased organic agriculture production and exports, including meaningful job creation, skills development and community uplifting, especially in rural areas.
From a trade perspective, South Africa experiences a unique opportunity to benefit from domestic demand and the export of organic products. South Africa’s retail structure is well developed and its harbours feature world class facilities. Overall, global trade in certified organic agriculture amounts to over US $80 billion and demand far exceeds supply. In other words, most produce is sold before even harvested. However, South Africa has not developed an organic regulation or standard, and producers are certified against the rules of their export market. The absence of a local organic standard makes it almost impossible addressing local environmental conditions at a structural level.
As one effective remedy, the UNEP report recommends the establishment of Organic Development Zones, where farmers can learn organic farming techniques through knowledge exchange with experienced Organic farmers. In Uganda, for instance, there are more than 190.000 certified Organic farmers who understand how to sustainably interact with their environment, and thereby generate sustainable market opportunities. While most of their products are exported to lucrative overseas markets, farmers also supply themselves with organic produce. The report showed that organic produce is healthier as it generally contains more nutrients and antioxidants, as well as less to none toxic and cardiogenic residues used in non-organic agriculture.
The Report Trade in Organic Agriculture – Challenges and Opportunities for South Africa can be accessed here
