FACTORS INFLUENCING
SUPPLY AND DEMAND OF
ORGANIC FOOD
Presented By:
Maida Asif
Ayesha Ishaq
Sharrel Palous
WHAT IS ORGANIC FOOD?

Organic foods are foods produced by organic
farming.
 Synthetic pesticides and chemical fertilizers are
not allowed, although certain organically
approved pesticides may be used under limited
conditions.
 In general, organic foods are also not processed
using irradiation, industrial solvents, or
synthetic food additives.

Organic farming in general features cultural,
biological, and mechanical practices that foster
cycling of resources, promote ecological balance, and
conserve biodiversity.
http://www.organic.org/home/faq
CONVENTIONAL FOOD VS ORGANIC FOOD
http://lcnutritionsolutions.com/tag/organic-food/
ORGANIC FOODS DEFINED
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100% Organic
• Only organically-produced ingredients and processing aids
• Specific processing methods
• Specific nutritional labeling
Organic
• 95% organically produced ingredients
• Specific processing methods
• Specific nutritional labeling
Made with Organic Ingredients
• At least 70% organic ingredients
• Specific ingredients noted
• Specific processing methods
http://www.fda.gov/ohrms/dockets/dockets/06p0094/06p-0094-cp00001-05-Tab-04-Food-Marketing-Institute-vol1.pdf
ORGANIC FARMING DEFINED:
As defined by FAO (1999)
 “Organic farming is an environmental friendly
ecosystem management in which, use of all kinds of
synthetic inputs are eliminated”.
 The area delineated for “organic farming” forbids
use of synthetic
fertilizers, pesticides, veterinary drugs, hormones,
Genetically Modified Seeds (GM seeds) and breeds,
additives, preservatives etc.
These are replaced with site specific management
system that maintain and increase long term soil
fertility and prevent pest and diseases
www.pide.org.pk/pdf/Seminar/Seminar82.pdf
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ORGANIC AGRICULTURE IN PAKISTAN
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the organic agriculture is still in its infancy in
Pakistan.
Current products include organic rice, organic sesame
seed, organic wheat, organic Kinno fruit and juice
concentrate, and organic mango fruit and pulp.
Tremendous opportunities exist in a wide range of
organic foods including fruits and vegetables, cereals
and grain, beef, poultry and eggs, honey and several
other processed products. This implies that with
proper guidance, support and strategies, the
Pakistani farmers should be capable to cater for the
domestic demand and penetrate the foreign organic
food markets as well.
http://www.pakistaneconomist.com/issue2003/issue29/
f&m4.asp
STATE OF ORGANIC AGRICULTURE WORLDhttp://www.pakistaneconomist.com/issue2003
/issue29/f&m4.asp
WIDE
Country
Organic
Hectares
% of
agriculture
land
Number of
organic
farms
Australia
10,500,000
2.31
1,380
Argentina
3,192,000
1.89
1,900
Italy
1,230,000
7.94
56,440
U.S.A.
950,000
0.23
6,949
U.K.
679,631
3.96
3,981
Spain
485,079
1.66
15,607
Canada
430,600
0.58
3,236
France
419,750
1.40
10,364
China
301,295
0.06
2,910
Austria
285,500
11.30
18,292
India
41,000
0.03
5,661
Pakistan
2,009
0.08
405
Liechtenstein
690
17.00
35
LEGISLATION OF ORGANIC FOOD
Organic food production within the EU is strictly
regulated.
 EU rules apply to the organic production and to
the labelling and control of organic products.
 Organic control bodies (CBs) license individual
organic operators. They are approved by Defra.
You must be registered with one of the CBs,
comply with their standards and meet their
requirements in order to market your produce as
‘organic’.
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
(Text book)
DEMAND FOR ORGANIC FOOD IN US
 Sales
of organic food have grown by 20
percent annually, and experts predict that
the industry's share of the U.S. food market
is expected to grow from about 2 percent to
roughly 3.5 percent by the end of the decade.
 The United States now spends more than $1
billion a year to import organic food,
according to the USDA, and the ratio of
imported to exported products is now about 8to-1.

www.bayjournal.com/article/demand_for_organic_food_growing_faster_than_domesti
c_supply
DEMAND
OF ORGANIC FOOD IN
PAKISTAN
Organic products for sale at a farmers market in
Islamabad. (Photo by by Aamir Saeed)
According to the Pakistan Agriculture
Research Council, the total area under organic
agriculture has grown from 35,000 acres in 2005
to 150,000 acres in 2010. An estimated 33% of
farmers in Pakistan are going organic and this
number is projected to double in the next couple
of years.
“The demand for organic products is high in the
market and I earned three times more just in six
months,” said Khalid, who first cultivated organic
vegetables in 2011. Encouraged by the success,
he then started growing organic wheat on his
sprawling seven acres of farmland in an
Islamabad suburb.
http://www.thethirdpole.net/pakistan-farmers-go-organic/
WHY PEOPLE DEMAND ORGANIC FOOD?

Parents tend to be motivated by health concerns. The Organic Trade
Association found that nearly half of parents surveyed—48 percent—were
motivated to buy organic food because they believe it is healthier for
themselves and their children.
Other motivators for parents include concerns over the effects of pesticides,
hormones and antibiotics on children, and avoidance of highly processed food
and artificial ingredients.
When researchers look at a broader population than parents, however, they get
different reasons for purchasing organic food. Of the respondents in the NPR
poll who prefer organic food,
36 % are motivated by a desire to support
local farms.
34% wish to avoid toxins in their food,
17 %believe that organic food is better for the environment,
13 % say that organic food tastes better and
11% believe organic food is safer.

http://www.cias.wisc.edu/wp-content/uploads/2012/02/growing-demand.pdf
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PRICE PREMIUMS

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The percentage of consumers who purchase organic
foods affects the relationship among the market
statistics.
In 2000, 49 percent of nonbuyers in theUnited
States named price as a barrier to purchase
compared with 33 percent in 1998.
Retailers in the United States also cite price as a
barrier to offering organic foods.
EXAMINING THE COST OF AN ALLORGANIC DIET
CHERYL BROWN AND MARK SPEROW
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The total cost for the TFP food lists for two weeks of
organic products is $383.71, compared to $257.72 for
the same quantities of non-organic products.
Thus the average weekly cost for a family of four to
purchase organic foods is $191.85 versus $128.66 for
non-organic;
the family pays, on average, $63.23 per week or 49%
more for the all-organic diet.
Income for a family of four that wants to consume
an all-organic diet would have to be 49% higher to
maintain the same budget share for food-at-home
compared to that for a non-organic diet.
http://ageconsearch.umn.edu/bitstream/26759/1/360100
20.pdf
PRICE COMPARISONS: ORGANIC
VS.
CONVENTIONAL FOODS
Food
Item
Name
Milk
Dairy
Conventio $3.39/g
Glen Milk
nal
al
2%
$0.03/fl.o
z
O
Organics
Organic
2% Milk
$0.05/fl.
oz
Foster
Chick Farms
en
Chicken
Breast
O
Organics
Chicken
Breast
Type
Organic
Price
$6.59/g
al
Price Per
Unit
Conventio
$3.59/lb $0.22/oz
nal
Organic
$8.99/lb $0.56/oz
http://www.popsugar.com/smart-living/Conventional-vs-Organic-GroceryPrices-18342929
QUALITY:
Shelflife
Taste
• Some organic food have shorter shelf life that deteriorates
quality of organic food.
• Sometimes lack of good taste also become a hurdle in
increase of demand of organic food.
• Nutrient content can be affected by fertilizers and pesticides; nutrient
density is greater in organic crops; and animals fed organically have
better health.
Nutritious • Organic food tends to have in it, significantly higher levels of all 21
nutrients analyzed compared with conventional produce including
value
vitamin C (27% more), Mg (29% more), Fe (21% more) and 14% more
• Phosphorus
www.pide.org.pk/pdf/Seminar/Seminar82.pdf
POTENTIAL OF ORGANIC FARMING IN
PAKISTAN
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• If proper planning and fore sighted measures are timely
taken, Pakistan has one of the greatest potential among the
developing countries.
• Millions of acres of highly fertile and productive-virgin
lands under the command of five mega dams Akhori,BhashaDiamer, Kalabagh, Kuramtangi and Munda to be built by
2016 at a cost of $ 25 billions can be the potential areas for
delineation as ‘organic farming’ areas.
• The ‘organic farming’ will have a direct impact to alleviate
poverty by providing large scale employment to unskilled
semi-skilled labor
 www.pide.org.pk/pdf/Seminar/Seminar82.pd
f
EXAMPLE FROM LOCAL ENVIRONMENT

There are a few organic food companies in
Karachi already, the most well-known
is Sungold Organic who supply chemical-free,
naturally grown vegetables, which they irrigate
with potable water on their farm in Malir to
various restaurants and supermarkets in the
city. They also produce their own natural
fertilizer. They have a long list of available
vegetables, including broccoli, carrots and
eggplant and can deliver to your doorstep as well.
CONT….
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Naimat Milk is another natural milk company
in Lahore that delivers milk from both cows and
buffaloes fed natural feed to your doorstep. They
can also deliver desi eggs and desi chickens.
Their milk comes covered with a thick layer of
cream, like it used to in the old days before
doodwallahs became commercialized!
http://www.siasat.pk/forum/showthread.php?161
332-Organic-Food-in-Pakistan!
CREDIBILITY OF ORGANIC STANDARDS AND
AUDITING SYSTEM
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Credibility and certification also affect
consumer’s demand of organic food.
Establishment of EU crop production standards
resulted in boost in consumer’s demand.
POTENTIAL OF ORGANIC FARMING IN
PAKISTAN
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• If proper planning and fore sighted measures are timely
taken, Pakistan has one of the greatest potential among
the developing countries.
• Millions of acres of highly fertile and productive-virgin
lands under the command of five mega dams Akhori,
Bhasha-Diamer, Kalabagh, Kuramtangi and Munda to be
built by 2016 at a cost of $ 25 billions can be the
potential areas for delineation as ‘organic farming’ areas.
• The ‘organic farming’ will have a direct impact to
alleviate poverty by providing large scale employment to
unskilled semi-skilled labor
APPLICATION IN LOCAL ENVIRONMENT
Organic farming should be applied in poultry in
Pakistan.
 There is a dire need of this as broiler chicken
have antibiotics and dangerous feed.
 Steps should be taken so there will be a balance
between supply and demand of organic chicken.
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AVAILABILITY

Demand of organic food depends:
Product
Availability
That
insured by
continual
supply
(season)
Text- page no. 203
Barriers –
with increase
in production
the barriers
issues can be
cover come.
STATE OF ECONOMY
With recession when people are stop buying –
luxury item the buying of organic products was
also decreased .
 Factor behind this:

High un- employment
High un employment inversely proportion less
buying power
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Text- page no. 203
CREDIBILITY OF ORGANIC
STANDARDS AND AUDITING
SYSTEM:

Demand of organic products affected by:
Credibility of the organic industry
 Consumers' perception of the standards, sector bodies
and certification agencies
e.g. UK- news paper : report showed what promised to
be organic ( a pork from pig weaned) was actually not
full filling the organic standards.- this decreased
the sales of pork by 40%- regardless it was
produced in UK or Germany.
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Text- page no. 203
SOLUTION:
EU and UK agencies
Boost
consumers
confidence
- Ultimately
increased
demand
This helps
in
increases
market
Text- page no. 204
In 1990s’ EU
organic crop
production
stand.
http://nofavt.org/programs/organic-certification
DEMAND OF ORGANIC FOOD IN CONTEXT OF
GENDER ( SPAIN CASE STUDY)
Back ground/ issue:
 consumers due to periodic food scandals as well as to
certain technological advances- GMO and food
irradiation results in concern towards Organic food.
Demands for food safety, quality guarantees
 and additional information about food production
methods.
Solution:
 This is causing agro food businesses to adapt
to satisfy such demands while simultaneously trying
to become differentiated so they can defend their
competitive – by using Organic icon
R Olivas,2012, http://revistas.inia.es/index.php/sjar/article/view/2213
STRATEGY:
Through awareness campaigns, TV ads and
print media they create a distress and then
giving solution to consumer that is Organic food.
 Research
conducted on 420 Organic Food
consumers.
 Questionnaire and other means and through
research they found out the females are more
motivated for organic food than males.
 Agro food also involve environmental factor
(environment friendly food) plus point – to
encourage men also to buy Organic Food.

R Olivas,2012, http://revistas.inia.es/index.php/sjar/article/view/2213
CONCLUSION:
In conclusion the basic commercial strategy for
increasing organic food consumption in Spain
would
 be for businesses as well as the government to
conduct communication campaigns addressed
basically to women
 clear promoters of healthy eating in the home.

R Olivas,2012, http://revistas.inia.es/index.php/sjar/article/view/2213
LOCAL EXAMPLE:
Khalis food Market organizes the event in
Lahore, Feb. 3rd 2014.
Purpose:
 Event organizer Rizwan said, “Our idea was to
bridge the gap between the people growing
products and the people looking for it”,
Sustainability:
 Set goal to further expand events and so they and
common masses can find out the organic food
growers and products----------to promote organic
food market.

Rina Saeed khan, April 30-2014 http://www.dawn.com/news/794899/the-khalis-foodmovement
SCENARIO OF ORGANIC FOOD MARKETPAKISTAN
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In Pakistan People started taking interest in word
organic.
There are number of organic brands and companies
that are working in different area of Pakistan:
Khalis Food Market
Koshar market… Islamabad
Mehjabeen Abidi-Habib’s organic garden is what it
should be — useful and delightful
Dali, Ethnic, Zoya, MOC- brands that work to
increase brand loyal customers
Hunza Organics, run by Zahid Durrani in Lahore,
and it has been certified by the Control Union in the
Netherlands.
http://jang.com.pk/thenews/may2013-weekly/nos-12-05-2013/spr.htm
Rina Saeed- 2008(FridayTimes)https://lahorenama.wordpress.com/.../lahore-goesgreen-roshni’s-german
PAKISTAN ORGANIC MARKET
Alien
•The word is not alien but people know it as Khalis and other
names.
•Number of brands, companies and NGOs working there in
Pakistan.
• The Roshni organic is one of many organic product producing
name.
• Its been growing number of vegetables, nuts and also running
bakery.
Roshni
• The location is out side Lahore- Roshni village …. Number of
Organic people with and without special needs come together to live
and to work
• rice, wheat, potatoes, carrots, chillies, okra, herbs, pumpkins,
and a number of fruits.
• it has been making pure whole meal bread for a few years
Product now in Lahore and they have a home delivery system in
s
addition to supplying their bread to Pioneer store.
http://www.roshni.org.pk/

The forces behind supply are:
Roshni Village
Roshni Organic
Bakery
Roshni
Organic Shop
Rina Saeed2008(FridayTimes)https://lahorenama.wordpress.com/.../laho
re-goes-green-roshni’s-german
SUPPLY
CASE STUDY:
DEPICTING THE EFFECTIVENESS IN DELIVERANCE
OF ORGANIC STUFF THROUGH PLANNING
Background:
 ROFN is an initiative of the Centre for Systems
Studies at the University of Hull Business School, UK
 to create an effective network to which small organic
businesses can cohere without sacrificing autonomy.
Issue:
 working with isolated businesses facing
problems.
the project is based on establishing new partnerships
between local growers and distributors, and with
local consumers, restaurants, schools and hospitals.
Georgina Holt 2007,http://aof.revues.org/479#tocto2n4
AIM:
The research project aims to support networking
practices by improving the regional organization,
logistics and technical infrastructure of
organic producers and retailers in North
Yorkshire.
Solution:
 The project uses internet systems to set new
standards of user
Friendliness
Functionality
Effectiveness
Georgina Holt, 2007 [http://aof.revues.org/479#tocto2n4]
STRATEGY:
An e-bay-like method of assessment, providing
feedback on all transactions and from all users,
will be used to develop indicators:
 Quality
 Value
 Speed of payment
 Speed of delivery.

Georgina Holt, 2007 [http://aof.revues.org/479#tocto2n4]
CONCLUSION:

Such a sophisticated information community
would allow buyers to find out what is coming
into harvest and who has surpluses, and
enable growers to assess demand, share
good practice and plan planting.
Georgina Holt, 2007 [http://aof.revues.org/479#tocto2n4]
SUPPLY CHAIN OF ORGANIC PRODUCT
Consumer
11% of
households
across the
UK
Raw
material
20 farms
Retailers
Supplier
supermarke
t chains
Calon Wen
a Welsh
organic milk
cooperative
Manufactur
er
Rachel’s
Organic
http://www.theguardian.com/environment/2013/sep/23/organic-food-drink-sectorstabilises-sales-rise
THE ORGANIC MEAT COMPANY (LOCAL
EXAMPLE)

THE ORGANIC MEAT COMPANY PVT LTD
is a high class meat processing company fulfilling
all the international standard
food hygiene
 GMP
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The processing plant of - company is
located in Karachi.
http://theorganicmeatcompany.net/
HYPOTHESIZE WORK:
Issue:
 Target customers- unidentified
 Consumer preferred- cheap meat (non-organic one)
 Nonstrategic SCM
Solution:
 Apply Lean supply chain
 Internet – awareness and advertising ( reduce cost)
 Campaigns – significance of organic
 Target customers- middle and upper class people of
Karachi ( poor- affordability issue)
 Collaboration with rural area people that are raising
organic animals
THE ORGANIC MEAT COMPANY
Go for LEAN SCM
High light the weakness
Involve
technolo
gy EDI
KPI and JIT
Improvement in sales and
value
Less wastage and more
profit
Compet
ent
manger
KPI- finding
out the actual
no. of
consumer –
needed organic
meat
Agriculture produce from organic products honey,
fruits , vegetables etc. are exclusively high price
Varied in come due to
varied fertility
Organic farming under strict
surveillance of International
Certifying Agencies
In conversion checks
required to prove absence of
synthetic input
Existing Irrigated Land
Prime land with high quality
produce
Invite International Certifying
Agency to delineate prime land
for high quality produce
Soil fertility & other tests to
delineate best area & to confirm
absence of Synthetic input
Million of acres of potential
virgin land under the command
of 5 mega dams
Million of acres of potential virgin land under the command of 5 mega dams
Educating farmers regarding huge profits and seeking their consent to follow
the regulations, control measures and standard
15.13 Million hectares potential land (cultivable waste + current fallow) * 22.12
Million hectares irrigated cultivated land *
Source:The Road to Organic Farming in Pakistan
DR. Abdulrauf , Farooqi www.pide.org.pk/pdf/Seminar/Seminar82.pdf (2012)
SUBSIDY

LEVEL
The level of subsidies that farmers receive to
enhance their incomes over that generated by the
sale of their produce can affect their decision making
concerning conversion to organic production and
ultimately the supply of organic commodities.
The subsidies are divided into two groups:
Specific Organic Subsidies
General Conventional
Subsidies
More chances of converting to
organic farming if rate of
conversion based subsidy
increases
Reversed situation
Livestock and arable crop
production
Example: Denmark
Conversion to organic is low
Source: Food Supply Chain Management .Bourlakis,M.A. and Weightman,
P.W.H. 1st Edition, 2004, Blackwell Publishing Limited. Oxford, UK. Pg 206
SUBSIDY
LEVEL
In the early 1990s, the only two existing EU regulations that
relate directly to organic farming were introduced.
Regulation
2092/91
• Aided the growth of premium organic
markets through certification and
labeling.
Regulation
2078/92
• It forms a supportive policy
environment for the provision of
subsidies for conversion to, and support
of organic farming.
Source:
http://orgprints.org/8440/1/holt_Comparison_markets_EU_states.pdf
SUBSIDY


LEVEL
The U.S. Department of Agriculture (USDA) helps
agricultural producers either directly or indirectly
through different ways.
The subsidy system, updated approximately every
five years, provides financial support primarily to
producers of “commodity crops,” which consist of
more than a dozen nonperishable crops.
Source:
http://orgprints.org/8440/1/holt_Comparison_markets_EU_states.pdf
ORGANIC STANDARDS
Availability
of Organic
food
Cost of
Organic
Food
Effects
Organic
Standards
Source: Food Supply Chain Management .Bourlakis,M.A. and Weightman,
P.W.H. 1st Edition, 2004, Blackwell Publishing Limited. Oxford, UK. Pg 207
ORGANIC STANDARDS
Potential impact of standard changes
results in the following:
The use of copper based fungicides for control
of late blight of potatoes.
 Reduction in conventional yield of potatoes from
60% to 40%.

Source: Food Supply Chain Management .Bourlakis,M.A. and Weightman,
P.W.H. 1st Edition, 2004, Blackwell Publishing Limited. Oxford, UK. Pg 207
SUPPLY CHAIN AND SERVICES
INFRASTRUCTURE
Supply
Industries
Advisors
Processors
Organic
production
depends upon
infrastructure
of :
Marketing Channels
Technical
Information
Commercial Production relies on 3 important
factors
Source: Food Supply Chain Management .Bourlakis,M.A. and Weightman,
P.W.H. 1st Edition, 2004, Blackwell Publishing Limited. Oxford, UK. Pg 208
SUN GOLD ORGANIC FARM
Started in 2009 in Qasim town , Karachi
 Production area consist of vegetables

Use of organic pesticides which are made of
tobacco, garlic, pepper, plant leaves and flowers.
 Customers are mainly women
 Online sale of product and also through phone
calls. And food packaging is biodegradable.

Supplies to retailers and supermarket.
 Marketing of product in 2010 through
horticulture society.

KHALIS FOOD MARKET
Working in Lahore
(Punjab)
 Khalis food market is
using social media as a
source of marketing.
 Organize various
events for promotion
of their food
products.
 Upper class of society
as a target market

Source:
http://www.khalisfoodmarket.com/p/khalis-inmedia.html
ORGANIC SUPPLY CHAINS
Farmer to
consumer
chains
• These chains are very popular in
Brazil and Hungry.
• Organic farmers sell their produces
to directly to consumers through
organic public marketplaces.
Farmer to
retailer or
supermarket
chains
• In Brazil producers sell fresh and processed
products directly to supermarkets and retail
stores.
• Similarly, in Thailand retailing company
(TOPS) sells the following products: rice,
coconut, milk, coffee and shrimps to
supermarket.
Source: http://www.rural21.com/english/news/detail/article/linking-smallholders-toorganic-supply-chains-what-is-needed-0000426/
ORGANIC SUPPLY CHAINS
Farmers to
food
processor
chains
Farmer to
importer
• Basmati rice in India, farmers supply their
paddy to rice mills and from there
processed rice is packed for shipping and
export.
• African organic coffee, farmers grows and
harvest coffee cherries at their farms.
Separation of beans on farm.
• Beans are being packed and send directly to
importer or through an exporter.
Source: http://www.rural21.com/english/news/detail/article/linking-smallholders-toorganic-supply-chains-what-is-needed-0000426/
SUPPLY
CHAIN AND SERVICES
INFRASTRUCTURE
Problem:
Availability of
limited number of
marketing channels
and processors for
certain commodities
like oilseed rape,
sugar beet etc.
Over coming the
problem leads to
•More Crop
production and
increase in
organic
market
•Improve
efficiencies of
crop rotation.
Source: Food Supply Chain Management .Bourlakis,M.A. and Weightman,
P.W.H. 1st Edition, 2004, Blackwell Publishing Limited. Oxford, UK. Pg 208
MARKETING CHANNELS
Farm
Shipper
Shipper
Direct to
consumer
market
Wholesaler/broker
Conventional
foods retailer
Natural foods
retailer
Food service
establishment
MARKET
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PREDICTION MODELS
The European market for organic foods in 2000
was valued at US$9.6 million (Soil Association,
2000).
It has been predicted that by 2005 the value may
be nearer US$21.4 million, a growth of 124% over
five years across Europe.
Source: Food Supply Chain Management .Bourlakis,M.A. and Weightman, P.W.H. 1st Edition, 2004, Blackwell Publishing Limited.
Oxford, UK. Pg 208_209 http://web.mit.edu/edmund_w/www/Agribusiness,%206-7-02.pdf
US ORGANIC FOODS MARKET FORECAST
2018
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The demand of organic food is high.
It is forecasted that the organic food market of
the US will grow at the CAGR of about 14%
during 2013-18.
It has also been forecasted that organic fruits &
vegetables will continue dominance by 2018 and
with the growth in organic food market revenues,
the demand for organic meat, fish, poultry, etc will
increase.
Source: http://www.techsciresearch.com/2605generated
ORGANIC MARKET PREDICTION
Source: http://www.techsciresearch.com/2605generated
Source:
https://securepayment.soilassociation.org/page/contribute/organicmarketreport2015
US ORGANIC MARKET SURVEY 2015



Sales of organic food and non-food products in
the United States broke through another record
in 2014, totaling $39.1 billion, up 11.3 percent
from the previous year.
Organic sales now near a milestone 5 percent
share of the total food market.
The organic dairy sector 11 percent increase in
sales in 2014 ($5.46 billion).
Source: See more at: https://www.ota.com/what-ota-does/market-analysis#sthash.zMtNqf3B.dpuf
Text- page no. 203
MARKET
PREDICTION MODELS
The market for organic
food would increase:

The price differential
between organic and
conventional foods
decreases,
The market expansion is likely
to be slower than predicted:



If the quality and
availability of organic
products increases, or if
the confidence in
conventional foods
reduced.

If the price differential
between organic and
conventional foods increases,
If new organic standards are
introduced which reduce the
production efficiency or
quality of products,
If confidence in the organic
standards or auditing system
decreases.
Source: Food Supply Chain Management .Bourlakis,M.A. and Weightman, P.W.H. 1st
Edition, 2004, Blackwell Publishing Limited. Oxford, UK. Pg 209
MARKET DEVELOPMENT
Need of
few
customers
Niche
Market
Mass
Market
Builds up
Large
Market
CURRENT SITUATION IN PAKISTAN
The organic agriculture is still in its early stage in
Pakistan.
 Farmers and some of the traders consider that the
marketing system of organic produce is not so
efficient because of low production and poor
infrastructure.
 Tremendous opportunities exist in a wide range of
organic foods.
 There is no company or any agency who specifically
deal with organic produce.
 If marketing and tagging is done there exist potential
for better supply chain.

Source: http://www.pakistaneconomist.com/issue2003/issue29/f&m4.asp
MARKET ANALYSIS OF ORGANIC
PRODUCE
Labor
• Organic farming encourages the use of labor, which is surplus and cheap
in Pakistan.
• About 45 percent labor is employed in agriculture so there is potential
to engage the labor
• The conversion from traditional farming to organic farming in many
areas of Pakistan is easier because farmers are using less fertilizer,
pesticides, herbicides and genetically modified seed due to their high
prices and low availability in many areas.
Conversion • So another option for farmers and exporters is to exploit the niche
market opportunities available in this sector.
Certified
Producers
• Due to less dependence on chemicals and fertilizers for the production
of agricultural production Pakistani farmer need only little adjustments
in their current production practices. In this way they can easily qualify
as certified organic producers.
WHEAT SUPPLY CHAIN
Farmers
Procurement
Primary
market
Provincial Food
Department
Village
market
Rural
Consumer
Terminal Markets
Wholesalers
Flour Mills
Retailers
Utility
Consumers
Source: https://webndbitesoflife.wordpress.com/2013/05/08/organic-foods-vs-commercial-foods-does-itmatter-to-your-health/
Source: http://www.theguardian.com/environment/2014/jul/11/organic-food-moreantioxidants-study