The organic, biodiversity and complementary health sectors were once the domain of an elite, niche market. Today you can find these products and their derivatives in almost every retail outlet. It's not surprising that a recent World Trade Organisation report refers to a "golden future" for organic food and the World Health Organisation have released their Traditional Medicines Strategy (2002-2005)

The organic trend persists in South Africa with earnings of more than R155 million in 2005 and boasting more than 200 certified organic operations nationwide, whilst a report in Business Report on the 19th April estimated that the natural medicines industry is worth R2.3 billion, of which 9% is sports nutrition.

Supply and Demand
Consumer demand for organic produce and products that are chemical free is far outstripping supply, according to www.biocontrol.co.za. Supermarket chains such as Woolworths, Pick 'n Pay and Checkers report significant increases in sales and are embarking on extensive market research to support this lucrative market segment,

Pick 'n Pay for example, supports the process of converting to fully-certified organic production. It can take up to three years before a farmer's produce can be registered as organic. Until such time as a Pick 'n Pay farmer undergoing conversion is fully certified, that farmer's produce will be labelled as "in conversion organic".
The recent scare about the use of genetically engineered Bovine Growth Hormone (rBGH or rBST) among dairy herds, and links to cancer, soon led Pick 'n Pay to announce that their home-brand milk will now be "rBST-free".

A current Woolworths Good Food Journey campaign, aims at bringing South Africans more food options they can trust and positions them as the first and only South African retailer to take the step to stock only fresh milk and yoghurts that are guaranteed rBST-hormone free. Woolworths reports that "consumers have the peace of mind that whatever fresh milk and yoghurts they choose off Woolworths' shelves, will be completely free of the controversial growth hormone."

The South African Milk Processors Organisation (SAMPRO) has decided to formally oppose the use of rBST (recombinant bovine somatotropin), the genetically engineered growth hormone, in dairy herds. The hormone is used to increase milk production but, according to market research, South African consumers do not support its use.

SAMPRO cites research that indicates most dairy cows in South Africa are not treated with rBST and the legal use of rBST is out of keeping with consumer preferences and some of the South African dairy industry's export markets.* Incidentally, the growth hormone is used legally in the USA but is banned in Canada and some European Union countries.

Of the 200 certified organic operations nationwide, 77 per cent have gone into conversion over the past four years, which calls into question whether supply can realistically keep up with demand. Government or co-operative assistance is identified as a definite gap in sustainable eco-friendly protocols. "We need to define an organic and bio-fuel strategy and implement a South African organic standard certification programme that will be recognized worldwide," says David Wolstenholme, Exhibition director of the Natural & Organic Products Exhibition in Johannesburg.

Call to Action
Organic and complementary health products' popularity and growth (pull factors) are demanding the industry find new and innovative ways to expand the industry. Enter the Natural and Organic Products Exhibition (20 - 22 October 2006) a national exhibition for industry experts, retailers and trade representatives. Here is where you can network with producers, meet the importers and investigate all sides of the organic and complementary health market coins. Opportunities exist for exhibiting your own new products, gathering information, or simply dialoguing with specialists of trade and consumer practices – whether for organic wines, organic produce, natural fibre, textiles free of chemicals, essential oils, sports nutrition or nutritional supplements.

For more information, visit: www.naturalandorganic.co.za

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For media queries contact Nicole Capper on 021-425 5825 or 073 148 3561
For further comment contact David Wolstenholme or Janine Johnston on 021-674 0935

Editors' Notes
1. *Source: Farmer's Weekly, 10 March 2006

2. The National Cleaner Production Centre (NCPC) is a co-operation programme between the South African government and United Nations Industrial Development Organisation (UNIDO) with financial assistance from the DTI, DANIDA, CSIR and the governments of Austria and Switzerland. The objective of NCPC is to advocate Cleaner Production (CP), develop CP capacity and facilitate the transfer of CP technologies; and to strengthen market access by southern African industry and business sectors. The NCPC achieves this through fostering networks to transfer CP technologies and services that can contribute to the sustainability value chains.

3. Latest information from Organics South Africa indicates South Africa's organic producers are seriously expanding their market:
·The sector earned about R155 million in 2005, compared to about R3 million in 2003.
·There are just over 200 certified organic operations in South Africa, and about 77 per cent of these went into organic conversion over the past four years.
·A total of about 515 000 hectares is under organic farming. About 500 000 hectares of this total is used for pasture beef cattle, about 11 000 is used for growing rooibos tea and the rest is used for growing fruit, vegetables, some grains and essential oils.
·The largest organic crops are rooibos tea, bananas, grapes and apples.
·South Africa's largest organic exports are table grapes and beef and the main export markets are the United Kingdom and the European Union. But there are also exports to the United States of America and the Middle East.