European organic farming does not keep pace with growing demand

Organic and conventional farm-gate prices for wheat

Percentages of organic yields compares to 100% of conventional yields

In the EU, the total value of the organic retail market doubled from 11.1 billion Euro in 2005 to 24 billion in 2014, the number of organic producers and processors grew by nearly 50 percent from 207,000 to 308,000 over the same period. Obviously, the market for organic products is growing faster than the production. Therefore, the question has been raised how to close the gap between demand and supply in the EU.

To provide scientifically consistent data and facts to this discussion, the agri benchmark Organic Network released a study “Comparison of the organic farming sector in Germany, Italy and Russia” in October 2016. This study compares the organic farming sectors in the named countries regarding size, productivity, competitive environment, marketing channels and area payments received. This information will help to understand the driving forces of future trends and developments in organic agriculture in the selected regions.

Regarding the organic farming sector in Germany, a closer look revealed two remarkable factors. In Germany the price gap as well as the yield differences between organically and conventionally produced cereals are especially high; in case of wheat the average price of the organic product is 4 times higher than the price of the conventional one while the yield difference is only about one half. These figures underline the competitiveness of organic arable farming in Germany as long as the high price level is given.

The complete study can be downloaded for free at the Organic branch website