Trend of Specialty Rice: Organic Rice

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Trend of Specialty Rice Organic Rice

• Wanlop Pichpongsa
• Thai Organic Trade Association (TOTA)

Thailand Rice Convention 2009 13 July
2009 Bangkok, Thailand
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Agenda

• About TOTA
• Overview of World Organic Agriculture
• Overview of Thailand Organic Agriculture
• What is Organic Rice?
• Thailand Organic Rice Market
• Challenges

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• Registered with the Ministry of Commerce as Thai
  Organic Trade Association (TOTA) in October 2005
  by 7 founding members
• Current members 20
• Objective to promote organic agriculture,
  especially market in both domestic and export

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Press conference foundation of TOTA
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Major areas of work
Market Development
Info and knowledge dissemination
Policy
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Market Development
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Market Development

• TOTA has market promotion initiatives in both
  export and domestic market
• Export Trade fair e.g. Biofach Germany, Thaifex
  Thailand
• Trade delegation to meet with potential customers
• Domestic working with leading retailers to
  promote organic products

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Biofach, Germany
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Biofach, Germany
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Biofach, Germany
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Thaifex 2008
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Info and knowledge dissemination
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Info and knowledge dissemination

• TOTA has organised the seminar on organic market
  in Thaifex, the largest international food fair
  in Thailand, since 2007
• TOTA has been invited to speak in various seminar
  with regards to organic agriculture
• Training for the entrepreneurs/ the private
  sector who are interested in going organic

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Thaifex 2007 Seminar on Organic Business Outlook
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Thaifex 2007 Seminar on Organic Business Outlook
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Organic training for entrepreneurs, July 2008
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Organic training for entrepreneurs, July 2008
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Organic training for entrepreneurs, July 2008
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Organic training for entrepreneurs, July 2008
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Policy
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Policy

• TOTA has become a representative organisation of
  organic operators of Thailand
• Appointed as an OA committee of the Ministry of
  Agriculture
• Appointed as a member of the National Committee
  for Organic Development

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World Organic Agriculture

• Organic farming is practiced in 120 countries
  with the growth of 20
• In many countries, governments have policy to
  promote organic agriculture
• Growing demand for organic products Growth rate
  at 10-20
• Mainstream food cooperation going organic

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World Organic Agriculture

• In 2006, the market value of organic products was
  at 40 billion USD
• EU and North America accounts for 97-98 of total
  market
• Emerging market China, India and Middle East
• Organic is shifting from niche to mainstream

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Thailand Organic Agriculture
Certified Organic 2006

• 22,550 Ha (0.108 of total arable land)
• 7,186 farms (0.141 of total 5.1 m farming
  families)

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Certified Organic Produce
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Thailand Organic Agriculture Market

• Start since 1990s with export market
• Domestic started around the same time with the
  raise of health concerns
• By 2000s, domestic market started to regain
  momentum
• Organic vegetables are the most popular in the
  market place for domestic market

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Thailand Organic Agriculture Market

• Domestic markets, mainly through modern trade,
  e.g. supermarkets and discount store
• Direct market also exists, e.g. box scheme
  (Bangkok) and farmer market (provincial)
• Majority is exported to EU and USA

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Thailand Organic Agricultural Policy

• National Committee for Organic Agriculture
  Development founded in 2007, to design the
  national strategy which integrates the OA related
  works of different government agencies.

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What is Organic Rice?
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Rice Supply Chain of Thailand
Farmers Paddy
Paddy Traders Collecting paddy
Rice Mill Milled Rice
Domestic Rice Brokers
Rice Packers for Domestic Market
Rice Exporters
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Organic Rice Supply Chain of the Project
Farmers Paddy
X Paddy Traders
Certification Body
Rice Mill Milled Rice
X Domestic Rice Brokers
Rice Packers for Domestic Market
Rice Exporter
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Organic Standard and Certification

• Major importing countries, like EU, USA, Japan,
  have their own organic standards
• Certification has to be done according to
  requirement of importing countries

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How to implement the organic project successfully

• Finding project partners
• Good collaboration of project partners
• Selecting farm area and farmer groups
• Choosing certification according to the market
  requirement

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Thailand Organic Rice Market

• Organic rice production accounts for 80 of total
  area of organic production in Thailand
• Export markets are EU, Switzerland, USA and Asia
• Very small volume compared to conventional rice
• Gaining more interest from demand side both for
  domestic and export

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Thailand Organic Rice Market

• Demand for other varieties like long grain, red,
  and black rice, other than Jasmine rice
• Demand for processed products rice snacks, rice
  noodles, rice bran oil, frozen rice

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Challenges

• Trust between all stakeholders in the chain (from
  farmers to buyers)
• Increasing price volatility Government price
  intervention
• Continuous learning and development of organic
  farmers organisations
• More effective extension and education work

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???????????????????????????Thai Organic Trade
Association

• www.thaiorganictrade.com
• Email info_at_thaiorganictrade.com