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Organic Markets in Europe

Paul Pilkauskas,
Senior Commodity Specialist, FAO

Retail sales of organic food and beverages in European countries have enjoyed substantial growth over the past ten years. Sales growth in some countries has been as high as 85%. However, as a percent of overall food market shares organic products continue to be a small percentage of the total. The UK, Switzerland and Denmark lead in terms of percentages of organic vegetables consumed. Most consumers appear willing to pay a price premium of up to 20%. One of the significant problems in analyzing organic markets is the lack of reliable, verifiable data, both in production, prices and imports. Organic import data is not broken out separately, so the real levels of imports are really estimates. Europe cannot be analyzed as a single entity, as each country appears to be behaving differently with regard to organic policy, internal production, consumption and imports. While distribution channels vary, supermarkets are expanding their role. Although production in Europe is expanding, there is frequently greater demand than supply, thus substantial opportunities for imports of fruits and vegetables, fresh and processed, particularly for counter-seasonal fresh products and non-temperate zone fruits and vegetables. In policy and operational terms it is important to have national organic legislation, access to certification services that are accepted in the importing countries, good knowledge of organic farming techniques, good post harvest handling, infrastructure and logistics and good partnerships.

Paul Pilkauskas
Senior Commodity Specialist
Horticultural Group
Commodities and Trade Division
FAO Rome
Tel: 39 06 570 52003
Email: [email protected]

Paul Pilkauskas is currently Senior Commodity Specialist responsible for horticultural products in the Commodities and Trade Division of FAO in Rome, Italy. He is Secretary of FAO Intergovernmental Groups on Citrus Fruits and the Sub- Group on Bananas of the Intergovernmental Group on Bananas and Tropical Fruits. During the past three years the horticultural group which he leads has taken on a greater role with regard to organic horticultural products, their marketing and production. It is in this context a publication was issued compiling a series of studies on market opportunities for organic horticultural products, which was followed by a conference in Trinidad in 2001. Prior to joining FAO he was a consultant for the United States State of Kentucky and the Commonwealth of Puerto Rico, acting as their European representative in Brussels. He previously enjoyed a 26-year career with the U.S. Foreign Service as an economist specializing in commodity trade issues and negotiations, including GATT negotiations. Paul holds degrees from Queens College and Syracuse University in New York.

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