Organic Foods. Back to the Roots in a Growing Market. Industry Overview
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1 Organic Foods Back to Roots in a Growing Market Industry Overview Our Industry in Numbers Market Potential Market Access Distribution Channels Supporting Institutions Industry Overview Organic farming in Germany has its roots in 1920s 30s when farmers began to adopt ecological farming practices. After various scares in 1990s with Germans becoming increasingly health conscious, has become mainstream, which, in turn, has led to a dynamic growth in dem for se throughout country. Today, Germany is largest European market for beverages. Besides being leading producer, it is also one of countries with highest consumption of
2 worldwide. Our Industry in Numbers Organic sales in Germany are constantly growing reached around EUR 7.6 billion in in 2013 (plus 7%). With sales of EUR 4.5 billion, conventional supermarkets as well as discounters are most important distribution channel, followed by specialized shops (EUR 2.4 billion).
3 Per capita sales in Germany are with more than EUR 86 more than twice as high as EU-28 average of around EUR 41. Among those categories with significant growth levels are potatoes (17 percent increase), milk (11 percent increase), meat meat (11 percent increase), fruits vegetables (10 7 percent increase, respectively).
4 The rising dem in commercial catering sector is furr driving market. The strong trend toward also makes itself evident in constantly increasing number of shops. Already in 2011, approximately 2,400 shops operated in Germany selling solely produced. Market Potential Organic are sold in almost every supermarket
5 discounter across Germany. Although number of German farms increased over last years, availability of farml itself is limited, reducing options for locally grown produced. The rising dem for in country cannot be fully met by domestic production. Today, Germany remains dependent on import of like milk, vegetables fruits. In addition, that are not harvested in Germany, such as coffee, rice or grains must be regularly imported.
6 Market Access To access German European markets producers must comply with EU Council Regulation 834/2007 that came into effect on January 1, This directive lays out complete set of goals, principles basic rules for production, processing, labeling marketing as well as import regulations for third country. The rules on implementation of new directive are outlined by Regulation (EC) No. 889/20082 (EC) No. 1235/ CERTIFICATIO - The Council Regulation describes prerequisites
7 for use of EU logo for prepackaged originating in EU. As of July 1, 2010, only that contain 95 percent of ingredients from production can carry newly designed EU '''' label. In Germany, ''Bio- Siegel'' is official label for s. Even though it is a voluntary label, re are more than 74,000 bearing this seal, which is widely recognized demed by consumers. Producers may continue to print German ''Bio'' seal or or private logos in combination with new EU logo on ir
8 . It is important to note that EU logo is voluntary for imported from third countries matory for coming from within EU. INSPECTION - In order to classify as, ingredients are subject to a matory inspection by an EUaccredited inspection body. These competent authorities are responsible for control verification of agricultural production processing. They also supervise imports from non-eu countries enforce labeling requirements for. The inspection bodies also help foreign exporters
9 importers with application procedures to obtain import permit required for agricultural from Federal Agency for Agriculture Food (BLE). Import permits are matory for all coming into Germany from third countries. Distribution Channels In order to enter market successfully, foreign producers must find a competent importer with in-depth knowledge of German market. In general, se specialized importers are knowledgeable about all import requirements packaging
10 labeling guidelines for. Many of m also distribute market goods mselves. Foreign exporters interested in finding potential buyers partners for ir can access different B2B marketplaces available in Germany Europe, such as ixpos Export Community Greentrade. In Germany, s are increasingly being sold by conventional retailers such as supermarkets discounters. However, health shops also play an important role in distribution of. Nowadays, most supermarkets
11 discounter chains have successfully introduced ir own label br in order to attract more customers. Neverless, specialized shops (Reformhäuser) supermarkets have maintained ir strong market position by concentrating on fresh s a wide variety of grocery. Foreign producers interested in finding competent importers business partners are also advised to attend renowned trade fairs taking place in Germany, like International Green Week (IGW) BioFach. Every January in Berlin, Germany hosts International Green Week
12 (IGW), which is largest agricultural consumer show worldwide. More than 1,650 exhibitors from around world participate in this event, where agricultural as well as natural farming methods are presented. The trade show, BioFach, is held every February in Nuremberg. With around 2,200 exhibitors, BioFach is ideal meeting place for wholesalers, retailers producers in sector worldwide. Supporting Institutions The Organic Food Industry Federation (BÖLW) is umbrella organization for
13 German sector. Its main goal is to support furr develop quality control systems in addition to serving as a communication channel among growers, traders, consumers. The Organic Processors Traders Association (BNN) represents interests of more than 220 processors, wholesalers retailers, importers traders in sector on a political economical level. Its main goal is to improve quality assurance in ecological stuffs sector. The Association for Organic Agriculture, Naturl, founded in 1982, is one of
14 leading certification bodies for worldwide. All rights reserved. Any reproduction in whole or part only with express written permission. All efforts are made to ensure integrity of content, however we are not liable for any mistakes that may occur IXPOS Promoted by Federal Ministry for Economic Affairs Energy in accordance with a German Parliament resolution.
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