A study on organic foods across cultures: USA, Australia, Italy and Japan
The cultures of the world share a lot, and they also share very little. There are traditions that they are very proud to call their own, but there is one thing that is undeniably common: we all need to eat. As one of the keys to our survival, food is now harnessed and used in different ways. Countries and cultures across the globe find different uses for their regional farmed products, but food’s place in the international market remains firm. Organics has upset this system by giving consumers a new option. For example, farming (in marketing terms) was once a level playing field. It consisted of the same product, with very little distinction between brands and products grown. Consumers are now blinded by the opportunity to purchase a seemingly ‘superior’ product, but are not entirely convinced by an increased price. Organics has created a market that many people around the world are not yet ready for. How do you market a product such as this?
Organic farming did not always have the stigma of costliness and superiority that it has today. Organic farming was a norm in pre-industrialized societies. Only after industrialization, were the techniques used in factories applied to farming. The use of fertilizer sped up the process of growing produce, while improved shipping and processing methods made seasonal fruits and vegetables available yearlong. Supplements feed to animals now increases the growth rate, giving farmers the opportunity to head to the slaughterhouse much sooner than before. After years of this industrial system, its flaws are becoming apparent. In regards to industrialized method of food production compared to the growth of organic products, what was once an antiquated method of production is now seen as a solution.
Organics, in many regions around the world, are seen as healthier, better for the environment and more wholesome. A recent spike in per capita consumption for organic materials has caused many countries to create laws concerning it’s ethics- and each different law provides insight on how that country facilitates or deemphasizes the use of organic products. How a country regards organic produce, in both culture and in policy, largely relies on their own individual food identity. Marketing the organic industry within a society is also dependent upon an individual nation’s regulations and standards. How organics is portrayed to the public will determine how successful the industry is as a whole.
To understand how organics play a role in the global market, four countries have been selected to represent different cultures: the United States of America, Italy, Australia and Japan.
United States of America
Organics within the United States food market has becomes a prominent subject in recent years. During 2001, the United States became the second largest consumer of organic materials in the world, spending $9.5 billion on organically grown agriculture. In 2012, the organic market surpassed the $31 billion mark that was met in 2011. The growing amount of government involvement and social concerns of food consumption has increased the field of organics tremendously, resulting in the establishment of a new multifaceted approach to the future of the organic industry. Government policy has transformed the availability of organic produce in the United States more so than any other party, and maintains a strong control of the market. It is important to recognize how the bills, institutions, and education in the United States acts as an agenda setting forum, raising public interest in public health and the availability of organics throughout the nation. The 20th century propelled the health concerns of the main populace into the limelight, making organic farming an issue that garnered much attention. In 1997, The United States saw a great increase in the amount of farmland dedicated strictly to the production of organic substance – the amount of organic farmland grew from 417,000 hectares (about 935,450 acres) to 950,000 hectares (about 2.3 million acres) in 2001. Despite this growth, this farmland only represents 0.3 percent of all U.S. croplands.
The United States Department of Agriculture (USDA) predominantly regulates food production throughout the nation under Farm Bills. Farm Bills have the power to facilitate the growth or decline of certain agricultural products by controlling funding and grant opportunities, which has been applied to the field of organic farming. The 2002 Farm Bill, for example, gave many new initiatives for organic farming. It allowed the Conservancy Security Program to compensate farmers transitioning to an organic farming practice and exempted 100% organic farmers from “assessment payments under commodity promotion law”.
2002 was also the year that the USDA implemented a national organic program that “set uniform standards and provided a ‘USDA-Organic’ label to facilitate market transactions and allay consumer concerns about product identity”. With products advertising rightfully as being ‘organic’, consumers have started paying attention to what they buy based on current events about public health and wellness. Christine Bushway, Organic Trade Association’s Executive Director and CEO stated in a 2012 Press Release that, “Consumers are increasingly engaged and discerning when they shop, making decisions based on their values and awareness about health and environmental concerns. For them, it matters whether foods are genetically engineered, or produced using practices that are good for their families.”
Australia
With organics continually increasing around the world, Australia remains the nation with the largest area of organic production. Accounting for over 40 percent of total world organic area, Australia is a major producer, both domestic and internationally, of organic products. Organic agriculture as a whole is specifically defined under the Australian National Standards for Organic and Biodynamic Produce as follows: “Organic farming systems rely to the maximum extent feasible upon crop rotations, crop residues, animal manures, legumes, green manures, mechanical cultivation, approved mineral bearing rocks and aspects of biological pest management to maintain soil productivity and tilth, to supply plant nutrients and to control diseases, insects, weeds and other pests”. Even though the industry has thrived tremendously throughout the last decade in Australia, controversy between defining and regulating the term “organic” under national health organizations has left the nation faced with many obstacles that directly influences the marketing field of organics.
During the 1980s and 90s, private organizations, such as the National Association for Sustainable Agriculture, Australia (NASAA) and the Biological Farmers of Australia (BFA) developed the first private organic standards for both domestic and exported products. In 1992, more regulated organic qualifications called the National Standards were established. The Australian Quarantine and Inspection Service (AQIS) is responsible for regulating the National Standards. However, the National Standards were only applicable to exported products, not to products found within the domestic market. In addition, during this point in time, a clear definition of the term ‘organic’ had yet to be developed within the organic industry. Exported products were more tightly regulated due to international standards, specifically in the United States and European Union.
Among the Australian boarders, products that were certified and marketed to consumers as ‘organic’ did not meet the regulations under the National Standard or were not accredited by AQIS. Risk of legal repercussions was scarce due to the absence of a regulated standard for the term ‘organic’ under domestic domains.
Until recently, the dilemma of defining ‘organic’ remained between the Australia organic industry and policy makers. Unlike other nations, the government wanted to avoid involvement, instead preferring industry self-regulation. The government’s stance on the labeling issue was virtually obsolete; only stepping in when it was “necessary to protect public health and safety or where there is clear market failure and then, only when the broader community is affected”. All Attempts to include the government by multiple food industry organizations within this issue proved unsuccessful prior to the late 90s. In 1999, the Federal Government hosted a conference to address the options of organics, but the issue was left unsolved. In 2002, the Primary Industries Standing Committee/Department of Agriculture, Fisheries and Forestry “recommended that the organic industry initiate steps towards a registered Code of Conduct”. However, when the Organic Industry Export Consultative Committee (OIECC) attempted to do what the government has suggested, an agreement could not be reached.
Also within the year 2002, a study was conducted regarding consumer behavior toward the organic industry. Issues such as cost, health, environmental benefits, convenience, and personal motives were examined among a select population. Most of the participants stressed the importance of organic labeling. One individual stated, “You slap organic on it, but there is no way you can prove what they’ve been doing to it. One of the things that I’ve been seeing going to the supermarket is that you’ve suddenly got organic everything coming out.” When discussing the benefits of organics within society, it is vital for the products to be marketed in a precise manner in order to gain the trust of consumers. However, this cannot be accomplished without strict organic standards within the industry.
Today, there are currently seven certifying groups within Australia that are audited and accredited by AQIS who take responsibility of addressing issues within the organic industry. One of them in specific, Standards Australia, a non-government Standards organization, has “created a new Standard said to assist Australian consumers looking to buy organic products by ensuring that the product really is ‘organic”. AS 6000-2009 Organic and biodynamic product provides growers and manufactures operating in the organic and biodynamic industry requirements for food production.
Even though a national definition for ‘organic’ has remained undetermined today and the organic industry and observance of production is still voluntary, steps are being taken to produce products under strict regulations and marketing them under an authentic method of advertising to avoid misrepresentation. “Prior to the introduction of the new Australian Standard, the ability of consumers or the Australian Competition and Consumer Commission to challenge the validity of organic claims was limited”. The organization aims to halt entrepreneurs from labeling their domestic-bound products as being ‘organic’ when the products do not meet the industry’s view of what ‘organic’ means.
The consumer’s interest in purchasing organic products has increased dramatically in recent years due to many factors. “In contrast with the early days of organic production – which often saw organic producers unable to label and sell their produce as ‘organic’ due to a lack of recognized and credible labeling schemes, marketing channels and consumer demand – demand is now outstripping supply in a number of domestic and export markets”. Because of a rise in health awareness, the circulation of knowledge regarding chemicals used throughout certain product productions, and the beliefs to support local farmers, the organic sector of food is now planted within the minds of Australia’s consumers.
In 2012, the organic industry’s value was estimated around $300 million, insuring Australia’s place as one of the leading organic producers in the world. Products considered to be organic are available to consumers at multiple outlets such as specialty shops, farmers’ markets, and through systems such as home deliveries and community gardens. In the past, Australia faced struggles promoting organics within mainstream supermarkets due to the difficulty in obtaining a consistent supply. In the market today, due to an increasing demand for organic products from consumers, organic products can be obtained at virtually any local food store within Australia’s major metropolitan areas. In the future, the Australian organic industry will continue to grow and establish itself as a successful branch of food production within the nation.
Italy
Italy, as a country, has one of the most famous food cultures in the entire world. Cuisine is taken very seriously not only by the people who prepare it, but those people who grow it, sell it and eat it. The quality of cuisine and taste is a point of pride for the Italian people. The passion that Italian people feel towards their foods in evident in their preference for wholesome, clean ingredients. Those Italians with a high standard of living often maintain this wholesome inclination by obtaining organically grown agriculture and animal products. The main group which consumes organic material in Italy does not differ much from the rest of the world: the people are native Italians, 25-50 years of age, with a high income and either a high-school or college degree. These people generally understand the benefits of organic products and choose to support it.
Without a focus on a heightened method of productivity, there is a strong demand for organic options from these Italian consumers. In fact, in 2009 the per capita consumption of organic cuisine was 25 Euros, signifying a growth since 2001. This growth has not been entirely effortless, however. This growth was made difficult for a couple reasons. One reasons is that Italy differs from many other European countries in that it lacks a significant number of supermarkets. Italians usually buy their break from a baker, their meat from a butcher and their produce from open-air markets. This presents a problem to many consumers, because many markets do not carry organic agriculture. Consumers who wish to buy organic must find one of the few supermarkets or find of the few specialized shops that do sell organics.
This localized (rather than nationalized) food culture actually works against organic sales, since many organic farms are contracted through the few nationwide supermarkets. As a result, only 26% of Italian consumers purchased organic goods in 2009. The numbers are growing steadily when considering both per capita expenditures and percentage of all consumer participation. Although the usage of organics is few and far between, the significance of organic food products is held in high regard when considering Italy’s passion for cuisine and meaningful food customs.
Out of all the countries in the European Union, Italy was the first to begin introducing regulating organic farms. Organic agriculture made its first appearance in Italy in the 1960s, and in the 1980s, the organic movement was in full force. That was the same decade that Italy began its “Commissione Nazionale Cos’è Biologico,” or National Commission for Organic Agriculture, which really signifies Italy’s interest in growing the availability and knowledge of organics. The National Commission for Organic Agriculture was Italy’s first established regulatory standard, which worked to stimulate the growth of organic farming by gather representatives, consumer association and organizations of each Italian region. This was Italy’s first true recognition of organic products as a feasible means of agricultural growth.
Italy, like most other countries in the European Union, has a defined standard that must be met to call a food item “organic”. This is why the agricultural, or ‘growing’ process, is so important to Italians. Italian organic food must be grown without the use of genetic modification, pesticides, or artificial supplements. Much of this organic growth occurs in the south of Italy, in area like Sicily and Basilicata. In these areas, Italy has dedicated 1.1 million hectares to the organic agriculture of staple foods like olives and grapes. This agriculture is moved up to Northern Italy, where most processors and consumers (those Italians with a higher standard of living) are located. Although a larger spotlight had been on organic agriculture in recent years, Italy has not seen any further conversations of farmland since 2008.
Although the production of organic materials has not seen any growth in the past couple years, efforts are being undertaken to make sure that the Italian people are consistently choosing organic products over traditionally grown. While most organic produce stays in Italy (about 80% of all organics consumed in Italy are produced domestically), about a third of all profits made from organics comes from its exportation to surrounds European countries. To encourage further domestic consumption and exportation, Italy initiated the ‘Italian National Action Plan for organic agriculture and organic products’ in 2005. This plan supports and develops organic production and works to keep the Italian commoner informed about their rights and health as a consumer. For example, this plan organized awards for chefs who utilize organic food and presents organic food at agricultural trade shows. This plan, in conjunction with direct marketing practices from farmers themselves, has a future goal to place Italy in the front of the global organic market.
“In general, the overall image of organic products seems to be positive from the consumer point of view, since they are considered to be healthier, better tasting, more environmentally beneficial and their quality is as good as that of traditionally grown products.” George Baoerkis explains, showing the significant effect the Italian National Action Plan has had on public opinion. This initiative for Italians to support the organic industry has done much to elevate the consumer’s awareness of organic options, but much is left to the organic farmers themselves to actually turn a profit. . Italian produce is sold in open-air markets and organic producers distinguish themselves through specialty stores. This results in the need for direct marketing by the farmers/sellers themselves. Much of this is done through labeling and certifying their products and making sure that the packaging makes the organic difference known to the consumer. The main competition of local organic stores is traditionally-grown agriculture, so many rely on the consumer’s knowledge of the superior product as their main marketing strategy.
Supermarkets are rare, but Italy is not devoid of the conglomerations. Supermarkets customarily designate organic items through the use of specific sections. However, Coop, one of Italy’s largest supermarket chains, has realized the growth of the organic industry and has responded to the change with a huge rebranding effort. Rather than having one small organic section, Coop began an organic private label called ‘Vivi-verde’ (‘live green’) to be distributed throughout the store. These new products use ecological packing, to further assert their environmentalist claims. Slowly, traditional produce and products will be phased out so the supermarket can focus specifically on organics. The time and effort that Coop has taken to spotlight organics shows a predicted growing demand for those types of products.
One of the biggest hurdles that the public faces is a lack of education about the environmental and health benefits of organic materials. Therefore, the Italian government has taken measures to place organic agriculture at the heart of everyday society. Over 360 Italian restaurants serves organic produce, and organic farms serve as ‘agritourism facilities’ . Finance Law 488, which “guaranteed the development of regionally sourced, organic, and high-quality foods in schools and other institutions” works in part with a school program, called ‘Cultura che Nutra’ (the culture that feeds), to bring knowledge of organic practices to the home.
Japan
Japan’s organic market is Asia’s second largest aside from China yet; it is growing at a rate slower than the markets in Europe and the United States. The policies that are enacted in Japan are not as developed as those in other countries as its organic products only accounts for only 0.2 percent total domestic agricultural production . Japan began introducing the same organic standard as the EU in 2001, although organic farming and marketing reaches farther back.
The Japanese Ministry of Agriculture, Fisheries, and Forestry (MAFF) created the Japanese Agricultural Standards (JAS) in 1950. The law was amended in April of 2001 but JAS was not developed until 2006 when the Law on Promotion of Organic Agriculture was put into affect. The standards are meant to force mandatory labeling on all organic products that meet specific requirements. These requirements prohibit the use of chemical fertilizers or pesticides and the use of GMO’s. According to the standards, there must be no environmental stress made during cultivation. Accreditation occurs after there has been a detailed inspection of production and storage processes plus an examination of documents provided by the producer. These inspections occur every year and after all requirements are met organic products are labeled with the JAS logo. Without the accreditation approved by the MAFF a product cannot be called “organic.”
As mentioned earlier organic products are slowly developing in Japan. According to a survey conducted by JC General Research Institute, only 4.5 percent of Japanese consumers would choose organic fruits and vegetables over Eco-farmer certified fruits and vegetables. Eco-farmer is another form of certification awarded to environmentally friendly farmers who reduce the use of chemical fertilizers and pesticides. The purchase of Eco-farmer certified products have grown far more rapidly than those with the JAS logo. A reason for the lack of organic product in Japan is that farmer’s feel that farming by the JAS standards are costly and time consuming, choosing the Eco-farmer certification instead. Organic farming in Japan has been found to be limited. In 2011 only 0.18% of 2.84 million were cultivating organic material.
There is a limited selection and a high price put on organic goods, these being the “main obstacles” in getting consumers to purchase said products. Consumers find it difficult to choose organic products over regular products. Japanese consumers have gained confidence in Japanese farmers and trust that their produce is already “safe and high quality products.” Japanese consumers are more concerned with the safety of the products they buy while European consumers buy organic products in an attempt to conserve their natural environment. For example, Japanese consumers will only buy organic produce when the quality of said produce is supreme. Therefore, Japanese consumers see no advantage to purchasing organic product.
Most consumers are still unfamiliar with the JAS logo, even though the Law on Promotion of Organic Product has been in affect since 2006. The Law on Promotion of Organic Product is meant to promote the organic sector and have created a three-year project to speed the promotion of organics, as it has been lagging. They want to improve the link between producers, processors, the food trade, and consumers. The aim is to improve and expand the market as quickly and efficiently as possible. Today, one can see that the market is effecting a change. Organic products are not just being sold in small specialty shops around Japan, One can find a small selection in supermarkets, food chain stores, and luxury outlets and not just in busy cities but in suburbs where housewives shop.
In 2011 a 9.0 magnitude earthquake hit the coast of Japan resulting in a Tsunami and a nuclear meltdown that brought extensive damage to Japan’s farmland, especially in the coastal areas of Iwate, Miyagi, Fukushima. Organic farming has especially been devastated in Fukushima, with the area being considered contaminated with the spread of the nuclear meltdown. Since the earthquake the nation’s self-sufficiency rate has dropped to 40% leaving the country to rely more on imported foods. There has been aid packages initiated by the government and abroad like the Fukushima Goro that has brought specialists and volunteers to help rebuild the area, and reconstruct a new organic brand for Fukushima.
The earthquake has created a small setback in Japan’s organic market, but there has been enough support to improve the situation. Japan’s organic market, in general has been lagging in comparison to that of the US and Europe, but there is not a lack of demand for these products. Japan has a connection with green foods, but not with organic foods. There are projects and studies aimed at learning about Japan’s market and trying to use that to tap into the organic market and create a shift from green foods to organic foods.
For works cited, please contact me at therachellaurenyoung@gmail.com
