Organic farming in Chile: The value of purity

Chile’s national agricultural policy seeks to convert the nation into a major food supplier by 2010. A small country, however, cannot supply all the growing global demand, which is increasing in proportion to population growth. The food supply also suffers crisis, as is currently happening with rice. Chile, therefore, seeks to supply specific markets in Asia by using organic methods to produce healthy, natural and ecological products. In fact, the Korean Food and Drug Administration (KFDA) recently opened the Korean market to Chilean organic products, a business niche in evolution.

The KFDA approved the Chilean organic products system, thereby opening up the Korean market to our products. Hernan Gutierrez, head of the Chilean Trade Office in Seoul, explains why Chile received KDFA approval. "Imports of organic products have increased considerably over the past four years. Projections by experts indicate that imports will continue to increase at rates above 30% per annum, reflecting the growing Korean consumer interest in healthy and healthy products."

Favorites products for Korean consumers are fresh and dried fruit, powdered infant milk, juice, cookies/biscuits, chocolates, jams, noodles, cooking oil, canned vegetables, tea, coffee, sugar, organic cosmetics and detergents. Berries are also beginning to gain market share.

What is an organic product under Chilean law? In this regard, the term organic agricultural product refers to a product produced in holistic management systems. These systems involve agricultural livestock and forestry production which encourage or enhance biodiversity, the biological activity of soils and their cycles and the overall health of the agricultural ecosystem. Under this definition, organic crops do not use pesticides or harmful chemicals. Instead, they require special care and smaller plots for cultivation.

Environmental awareness and the value that consumers place on a healthy diet are major factors in the continued economic feasibility of this sector. A report from the Office of Agricultural Studies and Policies (ODEPA) published in July 2007 illustrates this fact. "Organic farming has expanded in both acreage and the number of countries involved, even as it improves it improves its methods throughout the globe. Several factors explain the variances in organic production throughout the world. There are different levels of income in each country, different degrees of environmental awareness and, consequently, differences in consumer demand."

Figures that speak for themselves

There are 51 million hectares certified as organic in the world. This figure includes both cultivation and wild-crop harvesting. Latin America has the largest amount of certified organic production, after which follows Oceania and Asia.

According to certifiers, Chile had 48,043 organic acres during the 2005/06 season. This figure included harvesting wild crops, artificial grasslands and forests. The total area certified as "organic" increased by 86% in the three years since 2002. Organic production is concentrated in Maule, Valparaíso, Bío Bío, the Metropolitan Region and the Libertador Bernardo O'Higgins Region. These five areas account for 93% of the national organically-certified total.

According to ODEPA, organic exports totaled $20 million in 2006. This is almost equal to Korea’s total for organic imports. According to ProChile, Korea imported more than $ 25 million in organic products during 2007, mainly from the European Union, United States, Japan and China. The total value of organic product sales is expected to reach $100 billion by 2010.

Organic Products Act

Law 20.089 was enacted in 2008, creating the National System for Certification of Organic Agricultural Products. Ministry of Agriculture Decree No. 17, for its part, provides official standards for the following: organic agriculture; organic product production, processing, labeling and marketing requirements; organic and biological guidelines for certification authorities and small organic farmers; and special regulations regarding the use of the official “organic product” seal.

In the opinion of the Natural Resources, Science, Technology and Industry Advising Unit at the Library of Congress, the law is promising. "Taking into account international demand trends for organic products, combined with the Law 20.089 for Organic Agriculture, it is possible to expect considerable changes in Chile’s domestic production. Increasing external demand, as well as increased domestic demand, is expected to help the new regulation get up and running."

Chile: World food power

The KFDA approval of the certification of organic Chilean products can only serve to increase Chile’s organic aspirations. According a recent ProChile press release, "This award provides major impetus to the perception of Chile as a potential supplier of high quality and healthy food and agricultural product.” However, the goal of making our country an agricultural powerhouse, in the context of a future food crisis, is seemingly incompatible with organic production, which is performed on a smaller scale.

In the opinion of Natural Resources, Science, Technology and Industry Advising Unit, these objectives are complementary. "While it is true that organic agriculture has not been explicitly mentioned in agricultural policy documents, the rationale for it is evident in the 'environmentalist plans' of the Ministry of Agriculture. It is implied that the ministry will consider this type of agriculture to be an activity promoting economic growth in a context of greater equity (to be undertaken, for the most part, by rural family farms) and protecting the environment based on the principles of sustainability."

These positive externalities of Chilean production should be added to the fact that the products are considered to be of high quality. According to Hernan Gutierrez, few countries have achieved KFDA organic approval. In fact, "The KFDA specialists, who studied the Chilean law and system, were very impressed. Especially as regards the certification system for organic wines," he says. Gutierrez also emphasizes that the positioning of organic agriculture can be strengthened by Chile's participation in trade fairs, such as the following: the Seoul Food and Hotel; the Organic and Natural Food Show; and the Eco-Agriculture/Organic Expo.

Climate change and food crisis

Some experts predict beneficial effects on agriculture from climate change. "If one looks at the projections for a temperate zone like ours, by year 2050, it is possible to find positive niches. We might see increases in crop yields and reduced incidence of contagious diseases in winter," states Sergio Gonzalez Martineaux, an agricultural engineer and member of the Intergovernmental Panel on Climate Change.

"However, I think this is just a mirage. If one looks out to the same horizon as of 2100, the heat will build up, thereby negating the preliminary positive effects," he adds.

Coupled with the effects on agriculture caused by climate change (not to mention, agriculture itself creates up to 20% of total greenhouse effect gases), the food crisis that has been in the headlines recently can only worsen. According to the UN’s FAO, organic farming is a viable alternative and complementary to traditional agriculture to address the problems of food security in the world with much less environmental damage.

On April 15, the International Assessment of Knowledge, Science and Technology in Agricultural Development (IAASTD) released a report which referred to the increasing lack of food in many countries. According to the Library of Congress environmental advising unit, “The IAASTD is demanding a radical change in agricultural production methods. It also questions a Green Revolution based on the extensive use of pesticides and fertilizers and genetically modified organisms. It also emphasizes the need to promote and strengthen small-scale agriculture as the only viable solution to the crisis.”