6th Edition of the Main International Organic Event in Latin America
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BioFach Brasil Conference 2003

The 2003 Biofach Conference, held on September 25 and 26, at Hotel Glória, Rio de Janeiro, surpassed all expectations. 600 people were expected but a total of 1,200 attended the event. During the opening ceremony, Vice-Governor Luiz Paulo Conde and Agriculture Secretary Christiano Áureo officially launched the Organic Cultivar Program, considered by  Secretary Christiano Áureo to be a significant step towards the growth of the organic market in the State of Rio de Janeiro.
 

88.6% of exhibitors declared their intention to take part in the BioFach 2004, and the socialization among producers, traders, service providers, certifiers and visitors made possible the only chemistry that is well accepted among organic-minded people, that is, emotion.

Visitors from 14 countries and several states in Brazil were present, prospecting for new opportunities, and they also left the event feeling pleased, in accordance with a declaration made by the representative of Ecoamazon, from the State of Acre: “I am returning with wonderful news for all the Amazon extracting communities that take part in the project. I am sure that, from now on, we will reap the good harvest that this enterprise has brought to us. Thank you for this special opportunity!” 
 
All the declarations are special, but we highlight one, which sums up the general feeling and which came from a family farmer who was approached by several purchasers:“I had never felt so important!”This was the mission of our BioFach Conference: to project Brazil onto the level it deserves to occupy in the international organic market scenario. What we have to do now is to continue the task that has just been started …
Thanks to all those who made this Biofach Conference a great success!
Vice-Governor Luiz Paulo Conde, the German Ambassador Uwe Kaestner 
and Secretary Christiano Áureo, at the opening ceremony of the 2003 BioFach Conference
 
Here are some facts and figures relating to the national and international organic sector presented at the Biofach Conference
Bernward Geier (IFOAM), during his presentation on "Organic Agriculture: market opportunities", highlighted some facts relating to the global organic market, which we reproduce below:
56% of all American citizens believe that organic food is healthier
Sales of organic fruit and vegetables in the United States amount to 2.2 billion
60% of Danish people buy organic vegetables and milk frequently
The types of tea most sold in Egypt are the organic brand SEKEM
30% of the bread sold in Munich, Germany, is organic
The share of the organic products in the baby food market is estimated at 70%

Bernward Geier(IFOAM)

Stand belonging to the Agrarian Development Ministry, with family farmers
Moacir Darolt (from  IAPAR) made his presentation focusing on the consumer, and brought us important data relating to the growth of the domestic organic market. Darolt showed that the international organic market had a turnover of 23 to 25 billion dollars in the year 2003, while the Brazilian market’s turnover, in the 2001/2002 period, amounted to 200 million dollars (0.8% of the world market).  

Darolt, Valter Bianchini and Vital Carvalho Filho – the latter two from the Agrarian Development Ministry – highlighted the important role that Family Farming is already playing and may still have in Brazilian organic production, since it is responsible for 75% of the food served at our tables.

Family Farming is responsible for:

Vital de Carvalho Filho (MDA)

4.1 million family enterprises
84% of the rural enterprises in the country;
77% of the rural workforce;
37.8% of the gross value of agricultural output;
30.47% of the country’s territory.

Note: A large part of the properties use little or no chemical raw materials.

 
Support for Family Farming was also the focus of the presentations given by Jean Marc van der Weid (AS-PTA) and Celina Amaral Peixoto (SEBRAE-RJ). Jean Marc pointed out that both from the quality of life point of view and the strategic point of view, the organic sector should receive special attention from the Brazilian Government.

Celina pointed out that a new way of thinking has started to appear throughout the world, especially concerned with the following items:

Herta Krausmann(NurnbergGlobalFairs), Celina Amaral Peixoto (SEBRAE-RJ) Gunnar Rundgren (IFOAM) e o Embaixador da Alemanha Uwe Kaestner

with the quality of products and of the water used;
with food safety;
with the traceability concept – description of the food’s whole production chain, from the seed to the form in which the product is consumed;  
with the values that are passed on from the farmers to their customers;  
with the effect of this behavior on future generations.
 
Celina ended her presentation by calling special attention to the fact that “while we spend a good part of our time worrying about economic deficits, we forget that the ecological deficit is the one that really threatens future generations”.
 
The same concern in relation to the ecological deficit was raised by Roberto Selig (ABIO), who presented the history of ABIO, a certifier in the State of Rio de Janeiro, and by Fernando Augusto de Souza (AECO and KORIN). Fernando Souza also mentioned the tax question. "With a view to reducing the use of chemical pesticides, some countries in the European Community have introduced taxes on the consumption of these products. Concerned about the contamination of 25% of their aquifers by chemical pesticides, the European Community is encouraging the approval of laws and tax benefits in order to stimulate the practice of organic farming.” Fernando added.
The chart below, from Fernando Souza’s presentation, shows a graph relating to this practice adopted in several countries:

In the United Kingdom, a manufacturer of chemical pesticides pays a percentage of its sales –1.85% of the final price – to the control system.

In Denmark the charge is 2.5%, and in Norway the rate is 13%. Part of the amount collected goes to supervision and another part is being allocated to research, with a view to promoting alternative cultivation techniques.

The need for research was also highlighted in this presentation.

 
Fernanda Fonseca, Alexandre Harkaly and Paulo Lenhardt took part in the panel on Certification and Legislation for Organic Products in Brazil. Harkaly and Fernanda presented a history of the development of the organic movement and mentioned the positive and negative aspects of the Brazilian organic sector. Harkaly stressed that "Brazilian norms are incomplete and out of date, with the market and legal security lacking credibility in the eyes of the consumer".
Paulo Lenhardt talked about the growth in participative certification and the importance of broadening the debate on the subject.  Fernanda Fonseca presented several data on certification, including the number of countries – a total of 56 – that already have organic regulations, which are distributed as follows:  
Fully implemented = 33 (15 in the EU, 8 in Europe, 6 in Asia and 3 in America and the Caribbean)
Not fully implemented = 8 (3 in the EU, 1 in Asia, 3 in America and the Caribbean and 1 in Africa)
Being drafted = 15 (4 in the EU, 4 in Asia, 3 in America and the Caribbean, 2 in Africa and 2 in the Middle East)  
 

Pierre Landolt (Fazenda Tamanduá), in his presentation based on his experience as a producer in the North-Eastern semi-arid region, highlighted logistics as one of the obstacles to the growth in the organic market, among other challenges. 

Landolt added that “it is necessary to make the exporting states in the North-Eastern region aware of the need to invest in cold storage for pallets. Only one port in the North-East, Natal in the State of Rio Grande do Norte, has invested heavily in cold storage and only one ocean transport company- Lauritzen Cool – has a refrigerated hold system.”
 
Marco Giotto (Rio de Una) also mentioned the question of logistics as a challenge for a country like Brazil, of continental size. Re-education on eating habits was one of the points raised by Marco Giotto as needing to receive greater attention in order to promote the organic concept.

The lack of precise data for a proper diagnosis of the sector was indicated in the presentation of Cristina Neves (EMBRAPA) as one of the difficulties in evaluating organic production in Brazil. According to Cristina:

There are no official statistics  
Information belongs to the certifying companies
There are very many certifiers  
Only the plantations with greater economic interest are certified
Only the certified area is accounted for.  
 
A unanimous opinion expressed in all presentations was the urgent need for clear and definitive regulations for the sector. Luiz Carlos Demattê, whose presentation was about the Prospects for Organic Chicken, said that "the packaging should be differentiated, but the identification as "organic" on the label is not yet allowed by the Ministry of Agriculture/DIPOA". This is an obstacle indicated by everyone and in all research carried out.

Nathan Herszkowicz and Sérgio Pedini talked about Organic Coffee, and the scenarios for organic coffee in Brazil are presented below:

The market is expanding at an average of 20% per year
Overprice on the raw material of 20% to 30% in relation to non-organic products
Increased supply of green coffee should reduce the differential
Consumer prices should reach a stable level
There is a trend towards producing under private labels
Leading regional brands will operate in the segment
 
The willingness to pay a premium for organic meat  was clearly presented in Homero Figliolini’s address, as can be seen in the graph below:

Willingness to pay a premium

Distributor % premium on the price
Pão de Açúcar 10 to 15%
Carrefour 10%
Santa Luzia Up to 25%
Wessel 15%
Dinho's Place 5%
Rubayat 20%
Mister Grill 20%
 
The importance of information to the consumer and of the development of institutional marketing was also a common issue in several presentations, such as that of Leontino Balbo (Native), Marco Giotto ( Rio de Una), Yara Carvalho (AAO), Jaime Xavier (Zona Sul), Leonardo Myao (Pão de Açúcar) and David Kleerekoper (Maraú / Wessanen).

Maria Beatriz Costa (Planeta Orgânico) presented the results of the survey carried out at the BioFach Seminars in several States in Brazil, reinforcing the need for marketing directed towards the consumers, who still mix up organic with hydroponic, or simply do not know the characteristics of the organic product. 

Maria Beatriz Martins Costa (Planeta Orgânico)
 
Luiz Aroeira and Marcos Palmeira took care of the Organic Dairy Product theme. Marcos Palmeira was surprised with the number of people interested in the theme and proposed that organic milk producers should be better organized in order to occupy space in the market. Aroeira brought data on how much milk the Brazilian Government will have to import in order to supply the Zero Hunger Program.

Consumer interest in organic milk was also one of the results indicated in a survey carried out by Planeta Orgânico.

 

The speaker Johannes Schreiner (Hipp) highlighted the growing interest of mothers in supplying healthy food to their children, especially so-called "baby food", in which the brand Hipp is a leader in the acceptance of the German market. In Brazil, the adoption of the "baby food" concept is still very modest, and surveys show that even though mothers are keen – very keen – to give their children healthy products, they seek fresh products in order to make their babies’ soup.  
 

The demand for organic products is greater than the supply in Brazil and in several other countries. In the opinion of the speaker Lucio Ceccarelli, of NaturaSì Supermarkets, which supplies only organic products, it is necessary to have a mix of 2,500 to 3,000 organic products for an organic supermarket to compete with a conventional one.

View of one of the branches of NaturaSì Supermarkets

 

Halls A and C were very popular during the two days of the BioFach Conference, which proves the great interest in specific topics, such as organic soy, for example. That was where Antonio Wünsch (Cotrimaio) and Daniel Johannot (BioCrush) gave their presentations. Both showed the growth in the domestic and international markets for organic soy. Daniel stressed the need to work harder on the Brazilian market, whose potential is still unknown.
Wünsch also talked about the store in which the Cotrimaio products are sold.  
Banco do Brasil, Banco do Nordeste and AxialPar were in charge of the theme Investments and Micro-Financing for Sustainable Development. Marcio Montello, of Banco do Brasil, highlighted the BB Organic Agriculture program, which offers financial support for currents costs, investment and sales expenses, properly certified. Humberto Leite (Banco do Nordeste) presented the FNE VERDE program, which finances productive activities that emphasize environmental conservation.
Ralph Wehrle presented the profile of AxialPar, first risk capital firm in Brazil focusing on Socially Responsible Investment (SRI).

Ralph Wehrle (AxialPar)

At the closing ceremony of the BioFach Conference, on September 26,  Herta Krausmann thanked all for their participation, especially of the members of the BioFach-Brazil 2003 Project Council, who were on the dais on September 26.  Rosina Guerra, Maria Beatriz Costa and Alvaro Werneck also expressed their thanks for the support received, and everyone celebrated the choice of the host city for the Latin American BioFach, which will be held in Rio de Janeiro, on September 8, 9 and 10, 2004.

From left to right: Alvaro Werneck (Planeta Orgânico), Gunnar Rundgren ( IFOAM), Maria Beatriz Martins Costa (Planeta Orgânico), Rosina Guerra ( Planeta Orgânico), Peter Peters (DEG), Herta Krausmann (NurnbergGlobalFairs), Udo Censkowsky (Mercabio), Jaime Xavier ( Zona Sul), Pierre Landolt (Fazenda Tamanduá), Richard Dulley (AAO), Homero Figlolini (ABPO), Alexandre Harkaly (IBD).
 

Rosina Guerra (Planeta Orgânico), Peter Peters (DEG), 
Herta Krausmann ( NurnbergGlobalFairs)

Peter Peters, representing DEG, the bank that sponsored the BioFach-Brazil Project, said that this was one of his favorite projects. DEG is an investment company that gives support to sustainable projects.

The BioFach-Brazil Project carried out 40 seminars in several states in Brazil, in preparation for the 2003 BioFach Conference.

CLICK HERE TO LEARN ABOUT THE EXHIBITORS OF
BIOFACH BRAZIL 2003


Click on the date to learn about the program and the speakers 

September 25


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