ASEAN Organic Agriculture Movement Gains Momentum
The organic agriculture movement in Southeast Asia has been steadily gaining momentum over the past decade. Various factors such as increasing health concerns, environmental protection goals, from foreign have encouraged farmers in the region to transition to organic practices. According to data published by the ASEAN Food and Agriculture Organization (FAO), the total land area dedicated to organic agriculture across ASEAN countries grew from 650,000 hectares in 2010 to over 1.5 million hectares currently. Countries like Indonesia, Vietnam and Thailand have emerged as major producers of organic rice, fruits, vegetables, coffee and tea.
ASEAN countries recognize huge growth potential in organic sector
Policymakers in ASEAN nations realize the huge untapped potential and lucrative opportunities available in organic agriculture and exports. On one hand, there is increasing health awareness and rise of affluent middle class in East and Southeast Asia who are willing to pay premium for chemical-free food. On the other hand, Western countries which have mature organic s are looking for reliable import sources from developing nations. Recognizing this, governments have stepped up efforts to promote organic farming by providing subsidies and certification support. Countries like Thailand, Indonesia and Vietnam have launched dedicated organic development programs and brands to boost output and facilitate overseas trade.
Harmonizing organic standards across ASEAN vital for business
While individual countries have made progress in developing their organic sectors, lack of harmonized standards continues to impede greater regional cooperation and trade. Absence of mutual recognition of certifying bodies results in duplication of audits and certification costs for exporters. It also creates regulatory complexities that discourage buyers. There are ongoing initiatives by FAO and ASEAN Organic Cosmetics associations to develop common production norms and certification equivalence arrangements based on Codex guidelines. A unified ASEAN organic certificate would significantly increase competitiveness against offerings from other regions in global place. It will reduce bureaucratic hurdles and regulatory compliance overheads for businesses.
Indonesia leads ASEAN organic farmland, exports rice to Europe, Americas
Among ASEAN nations, Indonesia has emerged as the top player in organic farming with over 500,000 hectares currently under organic cultivation. Major crops include rice, coffee, tea, coconut and fruits. Indonesia produced 570,000 tons of organic rice in 2020 of which a major proportion was exported to European Union, United States and copyright. The government has set ambitious targets to increase organic farmland area to 1 million hectares and double exports revenues by 2024. Central and local government bodies provide assistance for standards compliance, certification costs and ing overseas through trade missions and participation in international organic expos and fairs. Dedicated organic rice brands like Ciherang and Ciliwung have gained popularity among health-conscious consumers abroad.
Thailand focuses on exports, adopts cluster-based development approach
Thailand ranks second after Indonesia in terms of area under organic cultivation in the Southeast Asian region. Major organic exports include rice, fruits, vegetables, herbs and spices. To accelerate growth, Thai authorities have adopted cluster-based "organic community" model bringing together input suppliers, farmers, processors and exporters. Organic zones with support infrastructure have been established in provinces of Chiang Mai, Phuket, Khon Kaen etc, each focused on specialized crops. Certified organic exports from Thailand surged to over $200 million in 2020 led by products like longan, pineapple and galangal. Value-addition through dried/canned fruits and herbal extracts has further increased overseas shipments. The government provides incentives and low-interest loans to farmers transitioning to organic.
Vietnam emerges as strong contender with robust coffee and rice sectors
Vietnam's emergence as a major organic producer has been led by strong performance in coffee and rice exports. The country now ranks among top 5 global suppliers of organic Robusta and Arabica coffee, shipping to EU, US, Japan and South Korea. Major coffee growing provinces in the Central Highlands have witnessed rapid adoption of organic techniques through contract farming facilitated by global buyers. Similarly in rice, northern provinces dominate organic output which finds s in Australia, Netherlands, Germany among others. The government promotes international organic standards compliance through programs operating at national and provincial levels. Recent free trade agreements with trade blocs have further cemented Vietnam's position as a preferred organic sourcing destination in Asia.
Opportunities and challenges for further development
While ASEAN countries have built considerable organic farming capacity and exports in key segments, greater synergy at the regional level can potentially unleash the sector's true potential and competitiveness in global trade. Harmonizing standards, mutually recognizing certifications, coordinated ing & branding, sharing best practices are some areas that need focus going forward. Domestic challenges remain in the form of access to organic inputs, supply chain bottlenecks and price premiums required to incentivize larger farmer participation. High certification and auditing costs also impact smallholders. Tapping new overseas s and adding value through processing will be crucial alongside ongoing policy support to propel ASEAN organic to next growth phase.
In organic agriculture has emerged as an important sector for ASEAN economies looking to diversify exports and attain sustainability goals. With a collective effort to align frameworks along with continued push for productivity and access, the regional organic is poised for significant expansion and prosperity in the times ahead.
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