Sourcing organic products from Ukraine, Moldova, and Armenia
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1 Sourcing organic products from Ukraine, Moldova, and Armenia Biofach Nuremberg 2015 Claudia Assmann, UNEP // Toralf Richter, FiBL
2 Results of a market study for organic products from Ukraine, Moldavia, Armenia
3 Product focus Armenia, Moldova, Ukraine Product Armenia: Moldova: Ukraine: Sunflower (oil and grains) Soft wheat ancient traditional Rapeseed Cereals, triticum / wheat, spelt Soybean oilseeds and and other cereal varieties Corn dried pulses Feed peas (rye, triticale, pumpkin seed) Fruits, berries and nuts Herbs and honey Processed fruits & berries Apricots, peaches Pomegranate (juices, purees, canned, IQF, dried, fruit kernel/shell for cosmetics) Farmed herbs (condiments: black basil, tarragon) & wild collection Thyme, mint, St John s wort, rosehip, sea buckthorn Honey Multi-flower mountain Processed fruits (plums, apples, cherries, preserved, jams, juices, wine, fruit brandy) Walnuts Farmed herbs & wild collection dried rosehip (Honey needs further conversion) Sunflower (oil and grains) Soft wheat Rapeseed Soybean Corn Pre-processed berries, wild collection and farmed Walnuts Farmed herbs & wild collection (Honey there is not enough production for the domestic market yet)
4 Organic grain commodities from Ukraine and Moldova Opportunities: Climatic conditions, fertile soils, efficient agriculture sector Competitive organic production Good potential on EU export market Cereals, oilseeds, dried pulses, fruits, berries, nuts, herbs and honey Challenges: Repeated fraudsin organic grain commodity business damaged country images causing particular alarm among EU importers willingness for traceability required = essential for reliable supply chains 2014 Free Trade Agreements (DCFTAs) signed with the EU lowering tariffs and EU import duties market opportunities in the EU higher production standards modernization of agriculture favourable to organic sector development
5 Ukraine and Moldova grain commodities Solid experience in organic production Ukraine rank 6 th in global acreage of organic oilseeds Ukraine rank 8 th in global acreage of organic wheat Successful conventional oilseed exports Ukraine: 1. Rapeseed 615 Mio 85% to EU 2. Soy 546 Mio 67% to EU 3. Sunflower 129 Mio 20% to EU Moldova: 1. Sunflower 56 Mio 47% to EU 2. Rapeseed 16 Mio 79% to EU 3. Soy 15 Mio 73% to EU Ukraine: Ukraine: Successful conventional cereal exports Ukraine: 1. Corn 3 billion 40% to EU 2. Wheat 1.8 billion 17% to EU Moldova: 1. Wheat 4.1 Mio 33% to EU 2. Corn 10.7 Mio 57% to EU
6 Organic grain commodities from Ukraine and Moldova Opportunities: Highest potential for economic and environmental benefits Potential shift of large organic EU soybean imports to Eastern European countries like Ukraine/Moldova reliable supply and competitive prices required meet GMO free criteria organic high protein crops for animal feed
7 Opportunities Ukraine and Moldova processed fruits and berries Socio-economic impact and rural development processed fruits (e.g. juices, dried fruits), shelled walnuts, herbs and honey Ukraine: Semi-processed ingredients & private label More opportunities compared to finished & own label Moldova: Well established juice industry Ukraine 177 Mio64% to EU Moldova 39 Mio 91% to EU Space for organic product range Successful Ukrainian IQF fruit/berry exports 33 Mio 89% to EU already incl. organic product range
8 Ukraine and Moldova nuts, herbs and honey Moldova: Successful conventional walnutexports to EU Moldova 72 Mio, 87% to EU Ukraine 51 Mio, 53% to EU Predominant exports to EU: MAPs Ukraine 5.1 Mio, 52% to EU Moldova 0.3 Mio, 38 % to EU Honey Ukraine 40 Mio, 80% to EU Moldova 1.8 Mio, 86% to EU opportunities for organic honey: Germany, France and UK Ukraine:
9 Armenia Opportunities: Good potential on EU export market Dried fruits, Herbs, Honey Traditional varieties of cereals Organic farming development of sustainable food sector provide highly nutritious food low external inputs Challenges: Periodic droughts Negative trade balance for most agricultural products Domestic food availabilityunsolved Export of scarce basic food crops is neither recommended nor feasible Armenia has signed the Russia-led Customs Union Trade negotiations from Armenia are oriented towards the Russian Federation Access to EU market potentially limited
10 Armenia herbs and honey Opportunities Expansion of production & organic farming for rural development: Herbs and fruits (wild collected and farmed) Honey
11 Armenia processed fruits Opportunities Fruit preparations 3.4 Mio 3% to EU Juices(apple, tomato, orange, pineapple, grapefruit juices) 1 Mio 5% to EU Dried fruit (prunes, apricots) 0.1 Mio 13 % to EU
12 Regional perspective for the organic sector in Eastern Europe The organic sector in Eastern Europe needs market-oriented support structures: Agricultural cooperative/association structures to efficiently organize organic producers and exporters A strong and professional market organization for the organic sector (for logistics, drying, storing, sorting, pre- and final processing) Private organic certification schemes offer good opportunities (e.g. Naturland, BioSuisse, Soil Association) for stable and long-term trade relations directly with EU organic processors Governments in the region should focus on availability of organic trade statistics
13 Meet organic exporters at BioFach Ukrainian Pavilion Moldovan and Armenian Pavilion 4-174
14 Participants: Panel Discussion (Organic Services), Martin Timmermann(trading platform o-tx, Germany), Sergiy Galashevskyy(Organic Standard Ukraine); 1 Producer Ukraine, Moldavia, Armenia Moderation: Toralf Richter, FiBL; Claudia Assmann, UNEP
15 Speed dating exporters -importers
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