Emerging Issues in the Marketing and Trade of Organic Products
Giovannucci, Daniele, ORGANIC AGRICULTURE: SUSTAINABILITY, MARKETS, AND POLICIES, pp. 187-198, Paris: OECD, 2003
Posted: 27 Jun 2007
The paper begins with a macro view of the shifting regulatory, business, and consumer environments that are inducing fundamental changes in the global trade regime and increasing the demand for standards. This in turn has profound implications especially for small and medium producers. It discusses how in the case of organics, emerging trade standards may actually benefit the producers rather than being a barrier to entry. In order for organics to expand their appeal and enter mainstream distribution channels they will likely have to adapt some aspects of modern industrial agribusiness. However, a more industrialized approach means walking a fine line because this very approach may in some ways contradict the core organic values and risk alienating a loyal customer base.
Recent research and examples outline the key issues like certification process, quality, and consistency that will require attention. The paper considers that further growth and meeting these demands and those of mainstream distribution channels will be difficult for most small developing country producers and will require a combination of public and private support.
Keywords: business influence, consumer influence, global trade, small producers, SME, organic, emerging trade standards, mainstream distribution channels, certification, agribusiness, developing country
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