Challenges and opportunities facing organic & how policies can be part of the solution
Ahead of the EU elections, our Director, Eduardo Cuoco was interviewed about the current challenges organic faces. In two pieces by Nutrition Insight he discusses the state of EU chemical-free farming and the challenges and opportunities facing the industry.
As it still stand to date, below you find a write up of this piece.
Nutrition Insight (NI): What specific policy changes do you recommend to EU policymakers and member states to stimulate consumer demand for organic products within the EU?
Eduardo Cuoco (EC): The current action plan for organic production in the EU (2021) sets the right priorities – it wants to both boost demand and ensure trust in organic and stimulate production at the same time. Our manifesto ahead of the EU elections echoes this approach. It is impossible to stimulate consumer demand without ensuring those who produce our food receive a fair pay – specifically farmers who provide higher environmental and social benefits should be remunerated accordingly.
To stimulate consumers’ demand for organic it is crucial that consumers can make informed choices. This starts by developing policies that show the true price of food and include these in food prices, for example through taxation. Moreover, EU policies should protect consumers from greenwashing. Effective legislation to curb greenwashing should prioritise methodological advancements, steering agricultural policies away from further intensification. For example, the Product Environmental Footprint (PEF) methodology used in the green claims directive is too simplistic to assess agri-food products’ environmental impact.
Public institutions themselves can also increase consumption of organic products via Sustainable Public Procurement (SPP). EU legislation should include a mandatory clause setting minimum quotas for organic products in public institutions such as schools, kindergartens, and hospitals. For successful implementation, Sustainable Public Procurement policies must be supported by national and regional targets for organic, national certification schemes at the Member State level across various sectors, and the implementation of education and mentoring programs.
NI: What are some of the benefits of choosing organic in terms of public health, food safety and nutritional content?
EC: First, it is important to state that while many consumers start buying organic food because it does not use synthetic pesticides and fertilisers, it is much more than that. Organic farmers nurse the agroecosystem they work in and make sure it is healthy and resilient – this way they do not rely on external inputs like synthetic pesticides & fertilisers and antibiotics. This makes organic farms richer in agrobiodiversity, including a healthier soil that stores more carbon. On top of that, organic farming brings substantial socio-economic advantages – it revitalises rural economies, creates employment, and promotes healthier lifestyles.
There is promising research associating organic food with better health, but conclusive studies are still ongoing. Studies do confirm fewer pesticide residues and antibiotics in organic foods and numerous studies also link organic food consumption to a lower incidence of chronic diseases such as cancer and cardiovascular conditions. In terms of nutritional content, organic foods may provide modest benefits such as slightly higher levels of certain antioxidants and flavonoids. Additionally, dairy products from organically raised cattle may have increased Omega-3 levels because the cattle consume more grass and alfalfa.
Studies are more conclusive in demonstrating that organically produced foods have lower levels of synthetic pesticide residues and significantly reduced cadmium contamination. However, to fully understand the nutritional advantages of organic foods, there is a need for increased investment in research and innovation, along with comprehensive studies. (Sources supporting the claims in this section can be found at the end.)
NI: Choosing organic products is not solely dependent on wealth or luxury. What measures could make this goal possible?
EC: First and foremost, IFOAM Organics Europe proposes to consider the true cost of food – positive and negative externalities (the indirect costs of food production) – resulting from our agrifood system. For instance, the cost on ground water pollution for a hectare of conventional potatoes amounts to €1,298.00, while it amounts to €0.40 for a hectare of organic potatoes. The cost of this pollution is currently borne by the public who pay for water sanitation through taxes. If food were to reflect the prices of “externalities” like this, the price of conventionally produced food would go up while that of organic food would remain largely the same.
Another approach we suggest is to raise taxes on synthetic pesticides and/or fertilisers, especially those that are known to have adverse effects on humans and the environment. However, for this strategy to succeed, higher prices for synthetic inputs must be accompanied by competitively priced alternatives, such as biocontrol products, to prevent cost pressures on farmers. Effective implementation of this approach requires supportive policies and clear communication to underline its rationale. Ideally, this taxation model would favour organic products downstream, benefiting consumers and stimulating demand for organic foods.
In both scenarios, negative externalities are recognised and higher prices are placed on unsustainably produced goods while the price for organically produced foods remain the same.
NI: The annual report from the Research Institute of Organic Agriculture (FiBL) noted a contraction in the organic market in 2022. What were the primary factors contributing to this decline?
From 2015 to 2020, demand for organic products doubled, and this growth continued and even peaked during the COVID-19 pandemic. However, the pandemic caused supply chain disruptions which lingered. When Russia invaded Ukraine in February 2022, prices in synthetic fertilisers and pesticides peaked, leading to further challenges to the supply chain and increased costs for farming methods depending on synthetic fertilisers and pesticides. Consumers experienced not only increased food prices but also inflation – heavily impacting their spending patterns.
While the organic market moderately contracted in 2022, it generally remains as it was before the 2020 peak. Trends from 2019 to 2023 even indicate that the organic market is growing as anticipated, reflecting sustained interest and potential for future expansion in this sector.
NI: Overall, what are the key challenges and opportunities facing the organic industry’s competitiveness?
EC: Some of the challenges organic experiences can be considered opportunities, which we address in our manifesto.
Policies should support and reward sustainable farmers
Organic farmers should receive fair compensation and adequate policy support for the environmental and socio-economic benefits they provide. The main funding tool for farmers, the Common Agricultural Policy (CAP) does not adequately reward farmers who already apply practices with positive environmental benefits contributions, like organic farming. Moreover, it also discourages farmers who want to move away from unsustainable practices.
Consumer awareness
Another challenge and opportunity are the need to improve consumer awareness. It is important to keep legal clarity and avoid confusing consumers with an overload of often misleading green claims and labels. The EU organic logo and other organic certification already represent the most sustainable food choices. Legislation against greenwashing should protect the EU’s flagship label and ensure it stands out against environmental claims that are often misused, like “regenerative agriculture”. Effective legislation to curb greenwashing should steer agricultural policies away from further intensification, for example, the Product Environmental Footprint (PEF) methodology that is too simplistic to assess agri-food products’ environmental impact.
Sustainable Public Procurement (SPP)
Procurement is a strategic market development tool to increase the demand for organic, healthy, and sustainable products. Setting mandatory criteria for SPP in all public institutions’ canteens (schools, hospitals, etc.) and translating the ‘EU code of conduct on responsible food business and marketing practices’ into mandatory criteria will increase demand for and financing the transition to sustainable food systems.
