1. Current situation: Organic vegetable is the most prosperous segment in the Chinese organic market, while the organic fruit sector is still in its initial stage. About 80% of organic vegetables are for export, mostly for Japan, while organic fruits farms are mostly still in organic in conversion status. Production of certified organic fruits will increase significantly within 2 years. Most existing organic fruit farms presently produce for domestic market, but aim at international market in the longer run. The newly established organic vegetable farms produce mostly for the domestic market. The organic vegetable farms are mostly located in the eastern provinces and near Beijing. The best running organic vegetable farms and processing companies are joint ventures.
2. Advantages: The Chinese government is encouraging the development of the organic industry. Local governments are implementing different incentive policies to support organic production. The international demand for China's organic vegetables and fruits is high. Farmland is available for development of organic fruit and vegetable in China. The potential for developing China's exports of organic fruit and vegetables is high. Hong Kong has a high market potential for organic vegetables and fruits produced by the Mainland. The organic products from other countries are welcome by the Chinese consumers if the prices are reasonable.
3. Obstacles and Countermeasures: lack of funds, technology and market are major obstacles to the development of organic vegetables and fruits. Mutual recognition of certification is urgently needed. From November 1, 2003, the "National Regulation on Certification and Accreditation" will enter into force. Foreign organic certifiers wishing to continue their certification activities in China are asked to register. A clear understanding of the new Chinese regulation is needed. Most of the Chinese vegetable and fruit farmers are operating on a very small scale. The model of "Company + Farmers' Association + Farmers with the support and help of local government" should be encouraged. Most of the Chinese companies involved in organic vegetable and fruit marketing are not good at international communication. Organic market information networks are extremely needed.
