Chinese economic growth rates may send many people into raptures, but the agricultural sector is usually excluded from this enthusiasm. Being the problem child among Chinas economic sectors, agriculture is characterized by its low productivity and sluggish development, negatively affecting the national development, and in particular, a rural upturn. Under these conditions, the emergence of environmentally friendly farming – including organic agriculture – gives rise to great hopes, since these approaches are expected to have positive influences on economic, social and ecological fields.
Organic farming continues to show a rapid development world-wide. On the Asian continent the total area of organic production still is relatively small, but the interest in organic is steadily increasing. According to a SÖL-survey, among the countries in Asia “ […] China heralds perhaps the highest growth potential [for organic farming] in the near future.” The Chinese organic development is only a few years old, but more than one third of Asia’s total area under organic management is already situated in China. Tremendous growth rates have been evolving in all fields of the Chinese organic industry and market.
In 1990, the Dutch organic certification body SKAL inspected and later certified a Chinese tea plantation, which became the first organic farm in China. Four years later, the earliest Chinese organic certification body, OFDC, was established. By 1995, altogether almost 45,000 ha of land were reported to be certified as organically cultivated in China. If the SÖL is right with its estimation, the certified organic production area increased to more than 100,000 ha in 2001, plus about 200,000 ha that are cultivated according to organic standards, but still have not received an organic certificate. Nevertheless, this is only 0,06 % of the total agricultural land in China.
Table of Contents
1 INTRODUCTION
1.1 Questions of Interest and Outline of the Thesis
1.2 Methodical Approach
1.3 General Overview of Research and Literature
1.4 Technical and Practical Notes
1.5 Introduction to Organic Agriculture
1.5.1 The Development of Organic Farming
1.5.2 What is Organic Agriculture
1.5.3 Why Organic Agriculture
2 GENERAL PRECONDITIONS FOR ORGANIC FARMING AND ORGANIC FOOD CONSUMPTION IN CHINA
2.1 Basic Political Preconditions
2.1.1 Land Tenure Rights
2.1.2 The Rural Reform after 1978
2.2 Parallel Development of Two Contrasting Agricultural Conceptions
2.2.1 The Industrialization of Agriculture
2.2.2 Approaches to Agricultural Sustainability
2.3 Environmental Deterioration its Consequences and Policy Responses
2.3.1 Environmental Policy
2.3.2 Use of Agricultural Technology on the Whole
2.3.3 Fertilizers
2.3.4 Pesticides
2.3.5 Overuse of Agro-Chemicals
2.4 Low Economic Viability of Agriculture
2.4.1 Situation of Low Agricultural Profitability
2.4.2 Agricultural Implications by China’s Accession to the WTO
2.4.3 Selected Reasons for the Low Agricultural Profitability
2.4.4 Consequences of Low Agricultural Profitability
2.5 Prerequisites for the Development of a Domestic Organic Market
2.5.1 Private Purchasing Power in Urban Areas
2.5.2 Changes in Chinese Food Consumption
3 THE ORGANIC FOOD INDUSTRY IN CHINA
3.1 Interest Groups of Environmentally Friendly Agriculture
3.1.1 Governmental Involvement
3.1.2 Certification and Consultation Bodies
3.1.3 Business Companies within the Production Chain
3.1.4 Consumers
3.2 The Attitude of the Government towards Environmentally Friendly Agriculture
3.3 Ecological Agricultural Concepts and their Certification Bodies
3.3.1 Organic Agriculture and Organic Certifiers in China
3.3.1.1 The Organic Food Development Center
3.3.1.2 The Organic Tea Research and Development Center
3.3.1.3 Other Chinese Organic Certifiers
3.3.1.4 Foreign Organic Certifiers in China
3.3.2 Green Food – A Chinese Agricultural Model
3.3.3 Further Agricultural Concepts in China
3.4 The Chinese Organic Industry
3.4.1 Organic Farms in China – Focus Shanghai
3.4.1.1 The Four Organic Farms in Shanghai
3.4.1.2 Other Farms Producing for the Shanghai Organic Market
3.4.1.3 Organic Farmers
3.4.2 Research, Consultation and Networking
3.4.2.1 Research in Chinese Organic Agriculture
3.4.2.2 Consultation and Trainings
3.4.2.3 Sharing Organic Knowledge
3.4.3 Subcontractors, Processors and Traders
3.4.3.1 The Organic Ancillary Industry
3.4.3.2 The Organic Processing Industry
3.4.3.3 Organic Trading Companies
3.4.4 The Organic Food Market
3.4.4.1 Places to Buy
3.4.4.2 Product Range
3.4.4.3 Prices for Organic Products
3.4.5 The Organic Consumer
3.4.5.1 Who Buys Organic Food?
3.4.5.2 Consumer Motivation to Buy Organic Products
3.4.5.3 Favored Products in Organic Quality
3.4.5.4 Consumer Knowledge about and Confidence in Organic Products
3.4.5.5 Consumer Suggestions for Improvement
4 ENVIRONMENTAL SCAN OF ORGANIC FOOD TRADE IN CHINA
4.1 Macro Environment of the Organic Food Trading Industry
4.1.1 Political Factors
4.1.2 Economic Factors
4.1.3 Socio-Cultural Factors
4.1.4 Technological Factors
4.1.5 Ecological Factors
4.1.6 The Influence of Macro Environmental Factors on the Organic Industry
4.2 Micro Environment of the Organic Food Trading Industry
4.2.1 Supplier Power
4.2.2 Buyer Power
4.2.3 Substitute Products
4.2.4 Threats of Market Entry
4.2.5 Rivalry among Competitors
4.2.6 Conclusion of Industry Forces and Implications for the Entire Organic Industry
5 CURRENT STATE AND FUTURE PROSPECTS OF THE CHINESE ORGANIC INDUSTRY
5.1 The Organic Industry’s Expansion in China
5.2 Obstacles for the Organic Industry in China
5.3 Organic Farming’s Contribution to Solving Major Problems
5.4 Prospects for the Development of the Chinese Organic Industry
Research Objectives and Themes
The objective of this study is to examine the current state and future prospects of the domestic organic food industry in China, with a specific focus on the domestic market and the competitiveness of the organic trading industry. The research explores the political, social, and economic preconditions for this market, while analyzing key interest groups and the impact of the organic industry on broader societal challenges.
- The structure and developmental history of the Chinese organic food industry.
- Political, socio-economic, and ecological preconditions for organic farming in China.
- Analysis of the organic trading environment and its strategic industry forces.
- Market dynamics, including consumer behavior, purchasing patterns, and retail distribution.
- The future role of organic agriculture in improving food safety and sustainability in China.
Book Excerpt
1.5.1 The Development of Organic Farming
The roots of organic farming can be dated back to the 1920’s, when the Austrian philosopher Dr. Rudolf Steiner developed his agricultural concepts. Arising from his concept of antroposophy, he laid the foundations of the bio-dynamic agriculture, considering the farm as a living organism. (Steiner 1924) English scientists, such as Sir George Stapledon and Sir Albert Howard were influenced by Steiner’s ideas, giving an important stimulus to Lady Eve Balfour, founder of the organic movement. (Balfour 1943) Howard’s and Balfour’s ideas on the role of healthy soil in agriculture and its connection to human health were pursued and developed by the American Rodale family. The American soil scientist Franklin H. King also contributed to the early development of the organic farming movement.
At about the same time when Steiner developed his ideas, in Switzerland, Dr. Hans Müller founded a movement for agricultural reform. It was centerd on the Christian concepts of land stewardship and the preservation of family farming. In the 1950’s, out of his earlier ideas, Müller generated the organic-biological farming method. (Lampkin 1994:6; SÖL 2003b) This concept was further developed by Dr. Hans-Peter Rusch in the 1960’s, who was contributing important ideas to soil fertility and soil microbiology. (Rusch 1968) Since that decade, beside pure agricultural matters, social concerns over rural population decline, environmental problems and health risks through the quality of food have been influencing the development of organic agriculture. (Lampkin 1994:6)
Summary of Chapters
1 INTRODUCTION: This chapter provides an overview of the agricultural sector in China and introduces the rise of organic farming, outlining the research objectives, the study's scope, and the methodical approach taken in the thesis.
2 GENERAL PRECONDITIONS FOR ORGANIC FARMING AND ORGANIC FOOD CONSUMPTION IN CHINA: This chapter analyzes the political, social, economic, and ecological framework conditions, including land tenure rights and the impacts of agricultural technology, that have shaped the environment for organic agriculture.
3 THE ORGANIC FOOD INDUSTRY IN CHINA: This chapter details the various interest groups involved in the organic industry, examines governmental attitudes, explores agricultural concepts, and focuses on the organizational structure of organic farms and the consumer market in Beijing and Shanghai.
4 ENVIRONMENTAL SCAN OF ORGANIC FOOD TRADE IN CHINA: This chapter applies PEST-analysis and Porter’s Five Forces model to assess the business environment, market entry threats, and the overall competitiveness of the Chinese organic trading industry.
5 CURRENT STATE AND FUTURE PROSPECTS OF THE CHINESE ORGANIC INDUSTRY: This final chapter synthesizes the research findings, discusses the contribution of organic farming to solving major problems, and offers a prognosis for the future development and professionalization of the organic sector in China.
Keywords
Organic Agriculture, China, Green Food, Organic Food Industry, Organic Farming, Sustainable Development, Food Safety, Agricultural Policy, Organic Certification, Organic Market, Organic Consumer, Supply Chain, Environmental Protection, PEST-Analysis, Porter’s Five Forces
Frequently Asked Questions
What is the core focus of this academic work?
The research provides an in-depth analysis of the emergence and current state of the organic food industry in China, specifically focusing on the domestic market and the trading sector.
What are the primary themes covered in the study?
Key themes include the political and economic preconditions for organic agriculture, the role of certification bodies, the dynamics of the Chinese organic consumer, and the competitiveness of the organic trading industry.
What is the primary objective of this thesis?
The study aims to evaluate the current status of the organic food sector, examine the attractiveness of the organic trading industry, and assess the future potential of organic farming to solve agricultural and societal problems in China.
Which scientific methodologies are employed?
The author uses a descriptive approach to detail the industry background and an analytical framework—specifically PEST-Analysis and Porter's Five Forces Model—to evaluate the trade and competitive landscape.
What is treated in the main part of the text?
The main sections cover the background of organic farming, the specific interest groups (government, certification bodies, and companies), the characteristics of organic producers in Shanghai, and a strategic market analysis of the organic trading sector.
Which keywords best describe the paper?
Key terms include Organic Agriculture in China, Green Food, Food Safety, Organic Market development, Certification, and Industry Analysis.
How does the Chinese government perceive Green Food compared to organic agriculture?
Green Food is a concept of Chinese origin and receives significantly more attention and support from the Ministry of Agriculture (MOA) than organic agriculture, which is often perceived as a foreign concept.
What specific challenges do organic traders face in China?
Traders face challenges related to the limited consumer knowledge, reliance on high-fee retail space, difficulties in maintaining constant quality across fragmented supply chains, and the competition from established Green Food products.
- Citation du texte
- Carola Milbrodt (Auteur), 2004, Organic Food Industry in China - Current State and Future Prospects -, Munich, GRIN Verlag, https://www.grin.com/document/42637
