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changes in demand
GROWING DEMAND IN MORE DEVELOPED COUNTRIES
A major development in world trade in the last decade has been the growth of imports into richer countries of high-value agricultural products from the developing world. In the UK, this drive has been led by major supermarkets such as Tesco, Waitrose, Asda, Morrisons and Sainsbury's - companies that will being produce thousands of miles onto their shelves. One source of asparagus, is Peru, involving a journey of over 6,000 miles to the UK market.
The table below shows the growth of cut flower imports into the UK in recent years.
Source country Imports (tonnes)
2001 2006
Kenya 10,183 16,509
Colombia 8,017 9,453
Ecuador 222 449
Costa Rica 218 401
Ethiopia 2 130
Zambia 1 83
Figure 1 below shows the source of vegetables imported into the EU in 2005, highlighting the importance of the developing world in this trade.
The table below shows the growth of cut flower imports into the UK in recent years.
Source country Imports (tonnes)
2001 2006
Kenya 10,183 16,509
Colombia 8,017 9,453
Ecuador 222 449
Costa Rica 218 401
Ethiopia 2 130
Zambia 1 83
Figure 1 below shows the source of vegetables imported into the EU in 2005, highlighting the importance of the developing world in this trade.
Figure 1: Major importers of vegetables into the EU, 2005
There is no doubt that the growth in this trade has been beneficial to farmers in the poorest countries, but concerns have been expressed on the following points:
> horticultural crops compete with subsistence crops in developing countries for scarce land and water resources
> some land has been cleared to grow cash crops, including tracts of rainforest
> food production for domestic consumption might decline in the exporting countries
> the use of chemical fertilisers and pesticides could damage the environment
> poorer farmers may not take the same precautions when handling chemical fertilisers and pesticides as those in richer countries
> the transport of produce over long distances to market contributes to carbon dioxide emissions and climate change
BIOFUEL
The growth of crops for biofuel production has also expanded rapidly in recent years. In Brazil sugar is grown for the production of ethanol, and jatropha (a drought resistant oil bearing plant) has become a major crop in Malawi and Zambia. The EU has a target that 5.75% of transport fuels should come from biological sources by 2010. It has been calculated that growing crops to provide such fuel would consume over 15% of EU agricultural land. As this is unrealistic, the EU would have to rely on fuels derived from imported palm oil and sugar cane grown in less developed countries to meet its target. This has raised the question of competition for land with food production in those areas.
year-round demand for seasonal foodstuffs
Seasonal products are now available in UK supermarkets all year round thanks to sources in tropical and southern hemisphere countries. Many of these products travel thousands of miles to reach the UK market. One of the problems highlighted by British consumer groups is that in order to maintain contracts overseas, the supermarkets also import such produce when it is in season in the UK and other parts of Europe. For example, in Early September, home-grown seasonal fruit and vegetables like apples, onions, carrots and green beans were available throughout the UK. But so too, in three central London supermarkets, were apples bought 4,700 miles from the USA, onions over 12,000 miles from Australia and New Zealand, carrots from South Africa (5,100 miles) and beans from Kenya (3,600 miles).
VIDEO: FOOD MILES
VIDEO: FOOD MILES
CASE STUDY: WIGHT SALADS
Another way to meet the demand is to develop new crops in the UK. In 2005, Wight Salads of the Isle of Wight produced its first cherry tomatoes for the UK winter markets. Tomatoes in the UK are usually imported from Spain or Israel in the winter. In order to cope with the long journey, these tomatoes tend to have thicker skins and are picked while green. The tomatoes produced by Wight Salads, as they are grown near the market, have thinner skins and a better flavour. They are produced in heated greenhouses and have not been exposed to artificial light.
increasing demand for organic produce
In the last 20 years, a small but increasing number of UK farmers have converted their operations to organic farming. The use of the term 'organic', when applied to food, has a legal meaning. Food has to be grown and processed according to certain rules, known as standards, which are legally enforceable in the UK and across Europe. The standards cover every aspect of organic food production, from farm to shop. Organic farmers operate in the following ways:
> Farmers build up their soil fertility using clover, manure, rock salt, fish and bonemeal. Natural fertilisers like these increase the organic content of the soil, enabling it to retain more moisture during dry periods and allowing better drainage and aeration when it is wet.
> Herbicides are not allowed and only an extremely restricted use of pesticides is permitted.
> Animals must have enough room to express their behaviour and access to pasture when conditions allow.
> Some form of crop rotation is usually involved, meaning that pests and diseases do not have a chance to build up from season to season.
Conversion of a farm to an organic system normally take at least 2 years. This type of farming is intensive in terms of both land and labour and less damaging to the environment than conventional modern farming, as no chemical fertilisers or herbicides are used.
However, organic farming is not without its problems:
> In the early years of conversion, yields fall as artificial fertilisers are not permitted.
> Farmers in the process of conversion cannot sell as 'organic' any produce until their farms have been certified as organic.
> Weeds may have to be controlled by hand.
> Labour costs per unit of land are much higher than for conventional farming.
> Lower yields are obtained which means the produce is more expensive than conventional produce.
The numbers of farmers converting to organic has continued to increase in the early years of the twenty-first century. The market for organic produce is buoyant and expanding, with retail sales in the UK now worth approximately £1.2 billion per year. The total amount of land under organic management has increased ten-fold since 1997. This is reflected in the growth of organic farming in Europe where German sales now exceed £2 billion per year.
CASE STUDY: CUBA
In 1990 the Cuban government converted the entire country to organic agriculture. Organic agriculture is now in the mainstream and many pesticides are not permitted by law. However, Cuba defines 'organic' differently from many countries and encourages genetically modified crops.
> Farmers build up their soil fertility using clover, manure, rock salt, fish and bonemeal. Natural fertilisers like these increase the organic content of the soil, enabling it to retain more moisture during dry periods and allowing better drainage and aeration when it is wet.
> Herbicides are not allowed and only an extremely restricted use of pesticides is permitted.
> Animals must have enough room to express their behaviour and access to pasture when conditions allow.
> Some form of crop rotation is usually involved, meaning that pests and diseases do not have a chance to build up from season to season.
Conversion of a farm to an organic system normally take at least 2 years. This type of farming is intensive in terms of both land and labour and less damaging to the environment than conventional modern farming, as no chemical fertilisers or herbicides are used.
However, organic farming is not without its problems:
> In the early years of conversion, yields fall as artificial fertilisers are not permitted.
> Farmers in the process of conversion cannot sell as 'organic' any produce until their farms have been certified as organic.
> Weeds may have to be controlled by hand.
> Labour costs per unit of land are much higher than for conventional farming.
> Lower yields are obtained which means the produce is more expensive than conventional produce.
The numbers of farmers converting to organic has continued to increase in the early years of the twenty-first century. The market for organic produce is buoyant and expanding, with retail sales in the UK now worth approximately £1.2 billion per year. The total amount of land under organic management has increased ten-fold since 1997. This is reflected in the growth of organic farming in Europe where German sales now exceed £2 billion per year.
CASE STUDY: CUBA
In 1990 the Cuban government converted the entire country to organic agriculture. Organic agriculture is now in the mainstream and many pesticides are not permitted by law. However, Cuba defines 'organic' differently from many countries and encourages genetically modified crops.
local and regional food sourcing
The restructuring of supermarkets in the 1980s consisted of more than just the growth of out-of-town superstores; it led to the growth of the multiples' power in the food chain. The largest five supermarkets now sell over 70% of food in the UK. With this power they have been able to out-compete smaller independent stores. Their request for easily transportable, cosmetically attractive and broadly acceptable produce has favoured the cultivation of uniform varieties over the more locally distinct, quirky and genetically diverse varieties of fruit and vegetables that prevailed as part of the former farming practices and food traditions.
The benefits of smaller independent food stores include:
> the promotion of local diversity and food culture
> fresher produce
> booting the local economy by supporting local food producers and employment and, indirectly, other local businesses (the multiplier effect)
Apart from local independent stores, a number of initiatives for sourcing local produce have gained a small market share in recent years. Three of them are:
> farmers' markets - markets where farmers, growers and producers from a defined local area are present in person to sell their own produce direct to the public. Public support has been good and there are now over 500 such markets nationwide that supply regional and local food to customers on a regular basis.
> direct marketing - produce delivered to the customer's door on a weekly basis. One scheme, Riverford in Devon, delivers 3,500 boxes of organic vegetables every week.
> local labelling and traceability - many restaurants now run source labelling schemes, by which they name the farm or group of farms that produced the meat and vegetables that they use. In order to make this work, they have to build up close contacts with local farmers and food processors so they can ensure consistency in the product. In these schemes 'local' has a link to quality as well as to geography. Some supermarkets have similar schemes, although they are often national rather than local. The chief executive of food retail for the Co-operative Group has said:
"We are committed to supporting British farmers and all Co-operative fresh meat and poultry is now British. We know this is important to Co-op customers, who are also increasingly interested in the seasonality and provenance of the food they buy"
> the promotion of local diversity and food culture
> fresher produce
> booting the local economy by supporting local food producers and employment and, indirectly, other local businesses (the multiplier effect)
Apart from local independent stores, a number of initiatives for sourcing local produce have gained a small market share in recent years. Three of them are:
> farmers' markets - markets where farmers, growers and producers from a defined local area are present in person to sell their own produce direct to the public. Public support has been good and there are now over 500 such markets nationwide that supply regional and local food to customers on a regular basis.
> direct marketing - produce delivered to the customer's door on a weekly basis. One scheme, Riverford in Devon, delivers 3,500 boxes of organic vegetables every week.
> local labelling and traceability - many restaurants now run source labelling schemes, by which they name the farm or group of farms that produced the meat and vegetables that they use. In order to make this work, they have to build up close contacts with local farmers and food processors so they can ensure consistency in the product. In these schemes 'local' has a link to quality as well as to geography. Some supermarkets have similar schemes, although they are often national rather than local. The chief executive of food retail for the Co-operative Group has said:
"We are committed to supporting British farmers and all Co-operative fresh meat and poultry is now British. We know this is important to Co-op customers, who are also increasingly interested in the seasonality and provenance of the food they buy"
THE RED TRACTOR SCHEME
The Red Tractor scheme is another development that tries to assure consumers about the quality and production methods of food that carries the logo. The scheme inspects farmers and processors to make sure that their businesses are run with high quality controls. This ensures that food safety and hygiene standards are maintained as well as standards for animal welfare and the environment.
The Red Tractor scheme is another development that tries to assure consumers about the quality and production methods of food that carries the logo. The scheme inspects farmers and processors to make sure that their businesses are run with high quality controls. This ensures that food safety and hygiene standards are maintained as well as standards for animal welfare and the environment.
CASE STUDY: BOOTHS SUPERMARKETS
Most supermarket chains are aware of the potential that locally sourced food offers, and claim they want to increase the number of locally and regionally produced food lines. Some groups, such as Booths in the north of England, have gone further...
Booths has 29 stores in the northern counties of Lancashire, Cheshire, Cumbria, Yorkshire and Greater Manchester. The company has a clear policy of sourcing a large percentage of its produce from a defined region. Promotions are often based on regional and local foods, stressing their provenance, variety and quality.
Booths maintains a large supplier base in order to provide choice for the company and its customers, and has built up strong links between buyers and suppliers. The organisation estimates that it has over 100 local suppliers and sources at least 20-25% of produce from the five counties in which it has stores.
Booths provides a good example of how supermarket chains can operate by keeping a strong local or regional identity, reducing the flow of produce into and out of regions, and allowing more store autonomy.
Most supermarket chains are aware of the potential that locally sourced food offers, and claim they want to increase the number of locally and regionally produced food lines. Some groups, such as Booths in the north of England, have gone further...
Booths has 29 stores in the northern counties of Lancashire, Cheshire, Cumbria, Yorkshire and Greater Manchester. The company has a clear policy of sourcing a large percentage of its produce from a defined region. Promotions are often based on regional and local foods, stressing their provenance, variety and quality.
Booths maintains a large supplier base in order to provide choice for the company and its customers, and has built up strong links between buyers and suppliers. The organisation estimates that it has over 100 local suppliers and sources at least 20-25% of produce from the five counties in which it has stores.
Booths provides a good example of how supermarket chains can operate by keeping a strong local or regional identity, reducing the flow of produce into and out of regions, and allowing more store autonomy.