Monday, June 28, 2010
ORGANIC AGRICULTURE IN SRI LANKA
BY THILAK KARIYAWASAM 2007
FOR ITC CONFERENCE AT BANGKOK
1. STATUS OF ORGANIC FARMING
The current extent of organic farming expressed as a percentage of the total
agriculture.
There were 15,215 hectares of land under organic management in 2006, with a share of
total agricultural land of 0.65% and a presence of around 3,300 organic farms. However, the area
under certified organic was 10,050 hectares, which corresponds to about 0.43% of the total
agricultural area of the country in 2005. When compared with the average proportion of land
managed organically in Asia, which is 0.21% in 2005, Sri Lanka has a higher figure.
The nature of organic production
Organic production in Sri Lanka reaches both domestic market and export markets.
Figures related to the export production are available, but the actual figure regarding the domestic
market is uncertain.
According to the Export Development Board, as of 2000, 15 organizations, both private
and non government were responsible for exporting 753 metric tons of organic tea, spices,
essential oils, cashew, desiccated coconut, dried fruits, vegetables and herbs valued at S.L. Rs. 543
million. According to the organic directory published in 2006, the number of registered exporters
is 30, non governmental and farmer organizations number 34, the number of certified estates
number 20 and there are 177 independent growers who come under the umbrella of the
Department of Export Agriculture.
Organic crops grown in Sri Lanka
Crop Botanical name Product/s
Anona Annonna sp. Fruit/ Juice
Avacado Persia Americana Fruit
Banana Musa sp. Fruit
Cardamom Elettaria cardamomum Spice,
Cashew Anacardium
occidentale
Fruit
Chilli Capsicum sp. Spice/ Vegetable
Cinnamon Cinnamomum verum Spice
Citrus Citrus sp. Fruit/ Juice/ spice
Cloves Syzygium aromaticum Spices
Coconut Cocos nucifera Fresh nut/ Toddy/ Honey
Coffee Coffea arabica Beverage
Ginger Zingiber officinale Spice
Gotukola Centella asiatica
Hatwariya Asparagus racemosus Medicinal plant/ drink
Jack Fruit Artocarpus
heterophilus
Fruit/ vegetable/
dehydrated product
Kitul Caryiota urens Treacle/ toddy
Kurakkan Eleusine coracana Grain
Mango Mangifera indica Fruit/ drink
Nutmeg Myristica fragrans Spice
Papaya Carica papaya Fruit/ Juice
Passion fruit Passiflora spp. Fruit/ Juice
Pepper Piper nigrum Spice
Pineapple Ananas sativus Fruit/ Juice
Rambutang Nephelium lappacium Fruit
Tamarind Tamarindus indica Spice/ Fruit
Tea Camelia sinensis Beverage
Traditional
rice
Oryza spp. Grain
Turmeric Curcuma longa Spice
Vanilla Vanilla planifolia Spice
White
sesame
Sesamum spp. Grain
2. DEVELOPMENT OF THE ORGANIC AGRICULTURE SECTOR
Sri Lanka has a civilization dating back to more than two thousand five hundred years,
which was based on agriculture determined by the rainfall and suitable soil conditions. The
agricultural practice of the people since the past to recent times was well inline with nature. Under
this traditional agricultural practice, organic agriculture was not a novel concept. It was based on
local resources and it was a non-chemical practice. The Kandyan home garden practices are one of
the best evidence for the cropping systems existed in Sri Lanka. The other important factor
regarding the traditional agriculture was that it was done for subsistence. Conservation farming
used indigenous knowledge and traditional agricultural equipments and tools. The systems
developed by the people was an efficient and effective system, with such elaborate practices such
as Kakulama in rice cultivation and Chena cultivation for field crops and crop rotation system,
agro-forestry system etc.
This situation changed during the last century, when the subsistence agriculture changed to
a market oriented agricultural productions. The use of chemicals was intensified after the green
revolution. The current conventional agricultural practice is a market oriented commercial
agriculture with high chemical usage. Subsistence farming has also uses increased amounts of
agro-chemicals.
However, the modern organic agriculture which is practiced based on standards and
certification and oriented to produce for the markets. Modern organic agricultural movement was
initiated in early 1980s with the activities of local non-government organizations, with the
influence of foreign agricultural movements. Same time some of agriculturist who had friends in
out side the country they also bring these ideas to country. Business people like Mr.Dencil Zosa
who took risk and converted his plantation into organic, and there were good traditional farmers
who did not use any chemical or synthetic fertilizer.
In 1994, a group of like minded NGO activists, planters, scientists and environmental
activists created the movement named Lanka Organic Agriculture Movement (LOAM). This is a
crucial step towards organized movement on organic agriculture in Sri Lanka as the formation of
an umbrella body. The primary objectives of LOAM were to promote organic agriculture, to
establish, improve and maintain standards for organic agriculture and to create awareness of
organic products among the people of Sri Lanka. There are different other examples just like
private sector initiatives/network organizations involved in organic agriculture such as the recently
formed Small Organic Farmer Associations (SOFA), Lanka Organic Coconut Grover’s
Association
Organic agriculture developed with the time, increasing the number of crops and area. In
1987 the first organic tea estates were certified in Sri Lanka. At present there are more than 15
projects with a variety of more than 20 crops are involved in growing, processing and trading
certified organic products. The area under certified organic agriculture has increased from a total
land area of 3,700 hectares in 1998 to 10,050 hectares in 2005, which corresponds to 0.43% of the
total agricultural area.
The most important stakeholders and /or alliances
There are two major groups in modern organic agriculture movement in Sri Lanka, which
could be distinguished since the beginning. The first group included smallholders consisting of
individual farmers who were working closely with the NGOs. They were sometimes organized as
special groups or cooperatives or societies to fulfil their objectives.
The other group included private companies which were running large scale productions
with larger plantations. These ventures oriented with export market were keen on modernizing the
sector with issues such as standards and certification.
Describe situations which had a negative impact
There was time with political support with good initiation to the overall sector but after that
political support lost the election all the initiation were lost. Just like Organic product council, it is
the first time govt body was involved to make national standard for the sector. But some of people
who claimed that is not the body should do officially stranded it is under the Sri Lanka Stranded
Institution which is the responsible. Some of people who involve that process with their voluntary
work haven’t properly evaluated. Some of recently started work not properly work out due to lack
of transparency and Govt control agenda’s. Good example is EU-SLOP project funded by
European Union. Due that two reason some of partners withdraw their contribution to project.
Lessons learnt about sector development: background situation/factors, strategies
and actions.
There are many lessons with sector. Whole success came trough people strength those who involve
the process. There are no any govt involvements or support for beginning to the sector. But with
all stockholders support sector is not going ahead as past. There should be govt strong section
where they can work closely with other stockholders.
3. MARKET DEVELOPMENT
Domestic market
Domestic market for organic agricultural products mainly consists to the urban and
educated communities and it is a growing market. Supermarkets are the most dominant market
method for organic products. However, there is a demand among the general public and also in the
rural areas, where the production is consumed.
Main export markets
Bulk of the volume of organic agricultural products is exported. Major export destinations
include European countries, USA, Japan and Australia. The market in the Middle East is also a
growing one.
In product scenario Sri Lanka is a leading exporter in organic coconut oil, spices and a
sizable exporter of organic tea.
Distinguishing features of domestic and export markets
The export market oriented production, which requires proper certifications internationally
accepted are mainly supplied by private companies, numbering to 30. However, domestic market
is provided companies, individuals and organizations.
The export products mainly consist if tea and spices. The domestic market is dominated by
fruits, fruit drinks, rice verities etc.
Critical factors for effective market initiatives. Problems and/or less successful
initiatives and how they were solved.
There are some good market initiatives which are functioning with individual capacities. Fair trade
groups, going as social businesses. Many NGOs and charity organisations are involving for
marketing of their beneficiaries products. With supporters in north, Private Company like
BioFoods done very good initiative which is SOFA. SOFA is Small Organic Farmers Association
those who supplying organic and Fair trade product to the Bio food. SOFA having very good
internal control system which you can’t expect from farmers.
Consumer awareness building: successful marketing and consumer
information/education initiatives. Why successful? Examples of unsuccessful
initiatives and reasons for failure. Contacts with media and importance.
Consumer awareness as a sector is not very good. But most of the time Companies when they want
to have publicity giving opportunity to media. But there are no strong campaigns for consumer
awareness. With all environmental, health and other problems giving good opportunity to organic
sector for go forward in local market.
The use of standards and certification for domestic market development.
Modern organic agriculture is a market oriented and production has to adhere to certain
standards or at least accepted norms in cultivation methods and practices. Although this is an
essential in the export market, sstandards and certification has been used in a limited impact for the
domestic market development. However, certified products have an advantage in the domestic
market too.
Producers have used terms such as ‘no chemicals used’, ‘non toxic’ etc to highlight their
products. Some organic products are marketed with other marketing advantages such as traditional
rice varieties which have a high demand.
Certification could change the market situation within the target customers who are
educated crowds increasingly paying attention on such measures. Marketing and awareness of
organic products should be increased.
Strategies and tools used for image and confidence building
Providing a substantial subsidy for the organic growers could be a vital measure for the
development of the sector. Also an insurance scheme for the growers could provide important
results.
Driving forces for market development
Main driving force behind the growing organic sector is the increasing demand for the
products, mainly in the foreign destinations.
A main reason for the growing domestic market based supermarkets is due to the increased
awareness of the health benefits of organic products and the ill effects of chemicals used in
conventional agriculture. NGOs, traditional medical practitioners and sales circles are also a
driving force in the local market in a lesser scale. Lanka Organic Agriculture Movement is one of
such organization which is a driving force behind the event.
Government organizations such as Export Development Board, Department of Export
Agriculture had been engaged in promoting exports could be mentioned as driving forces.
Effective tools and resources for market development
Proper certification and standards is the most effective tool which could be used for
market development, both for domestic and export markets. Proper marketing methods and
increased awareness on the benefits of organic products could be considered as a useful tool.
Lessons learnt regarding market development
A key issue in the organic sector is the problem of establishing a continuous product from
seasonal crop harvest to ensure the supply to the markets.
4. ORGANIC AGRICULTURAL POLICY
General Agriculture Policy
Present Agriculture policy (2007) not mentioning any thing about Organic Agriculture. But they
are talking about Organic fertilizer. The Ministry of Agriculture had get back of their feet. In
previous policy was clearly said that Organic Agriculture is growing sector in Sri Lanka. It should
be promoted and Developed by the involvement with govt Ministry of Agriculture. Policy maker’s
wants to get prove what the advantages of the organic Farming; it has to come out trough the
research canters of the Agriculture Department.
Discriminates against organic agriculture
Following are some examples which could be identified as discriminates against organic
agriculture
1. Fertilizer subsidies: Successive governments were providing chemical fertilizers at a
low price with financial substantial subsidies. This was a setback in promoting organic
agriculture.
2. Still govt high level policy makers not well aware about the Organic Agriculture and
its advantages
Supports organic farming
After a long negligence of the organic sector, the Government has taken steps to provide
some incentives for the sector. A decision to provide a subsidy for the organic fertilizer
manufacturing sector is an example. Although the amount allocated is far lower than the amount
for the non-organic sector, this is not the encouraging initiative.
Government involvement in organic farming
The key government stakeholders important for the development of policy are Ministry of
Agriculture and Departments such as the Department of Agriculture, Department of Export
Agriculture. There are other agencies such as Export Development Board.
The organic sector was long neglected by the Government and their involvement was
restricted to trainings and awareness on some issues. The lack of government involvement was
identified as one of the limiting factors in the development of organic agriculture. However,
private sector and NGOs were continuously taking efforts to get state sector involved. Eventually,
Government initiatives became prominent only in the past few years.
The inclusion of organic agriculture in the National Agricultural Policy in 2003 was a
major achievement. Government has recognized the sector to be supported as a ‘thrust area’ for
economic development in year 2004. This was done considering the export potential and positive
environmental impacts.
Measures taken by the government
1. Creating the national standard
2. Providing a fertilizer subsidy for the organic sector.
Other policy initiatives
Other government policy initiatives concerned about organic agriculture. The Ministry if
Environment and Natural Resources was one such government institution initiated policy
developments related to organic agriculture. The National Environmental Action Plan (1998-
2001), prepared by the Ministry of Forestry and Environment, included few innovative
conservation farming technologies and institutional approaches for agriculture. This was aimed to
provide high economic benefits and protection for the environment.
Further to this, the Ministry of Environment was influential in preparing the guidelines for
standards in 2005.
There are some initiative on active now under Agriculture Department. There are now helping
other institutions to work. Apart from that there is Good committee under the National Science
Foundation called Sustainable Agriculture committee. There are bringing this idea to sciencetific
community. Business sector are trying to get more opportunities. But other infrastructure not
properly Developed, Specially like Banks, they don’t have any single credit facility to Organic
farmers or who are doing business. From PVT sector some joint initiative works vary well.
Specially SOFA is the creation of BIO Foods.
The driving forces for policy development
NGOs and the private sector were the key driving forces behind policy development in
organic agriculture in Sri Lanka.
LOAM played a major role in policy development and it has successfully influenced
Government policy. It was engaged in preparation of guidelines (2005) and also development of
standards for organic agriculture (2007).
Lessons learnt about policy initiatives regarding organic farming.
Organic product council was good initiative which is led by global affairs division of environment
ministry. It has all focus for sector. Lanka Organic Agriculture Movement is one of main body
which is working for policy of the organic sector. Past years it played major roll in the sector.
5. ORGANISATION AND STRUCTURE OF THE ORGANIC SECTOR
Institutional structures
The institutional structure could be in three major components;
1. Producers: Individuals and private sector companies are the main groups of
producers. In many cases, these individual farmers are grouped under NGOs or farmer
associations or cooperative bodies.
2. Organizations/ Associations: Organizations have played a key role in the organic
sector. These include farmer associations; community based organizations as well as
non-government organizations. Some of these work broadly on organic sector, but
some target specific crops such as cultivation of traditional rice varieties.
3. National Movements: Lanka Organic Agriculture Movement founded in 1994 is
the pioneering association related to the policy development. Small Organic Farmer
Association (SOFA) is a recently formed association of organic farmers who are
engaged in the industry in small scale.
Strategy and lobby work
Lobbying was a major issue for the development of the sector. Integration of organic
agriculture to the National Agricultural Policy in 2001 was a major achievement. Also the
guidelines for certification, which were prepared in 2005 is a result of lobbying of NGOs.
Lessons learnt regarding organisation and relationships between different partners.
Successive governments were positive regarding the developing the sector as the officials
were well coordinating with the other stakeholders.
Also private sector was having a good relationship with the movements as well as the
sector
In research sector, universities and government research institutions were sharing the
experiences with the other stakeholders. Number of universities has initiated various courses on
organic agriculture and some have integrated organic agriculture to their syllabuses.
5. REGULATORY FRAMEWORK
Organic standards development
Standards are one of the important aspects for the development of organic sector. Since the
first international regulation of Regulation EEC N0 2092/91 which was drawn up in 1991 and
implemented in 1992 is the first international regulation in world.
Efforts were taken to initiate a standard in Sri Lanka since early 1990s. A number of
discussions, workshops were held among the stakeholders, efforts were made to include the state
sector etc. An initiative in 1996 finalised a preliminary draft set of standards for organic
production, which was.
LOAM and other voluntary groups have developed a set of guidelines for standards in
organic production and processing, which was published by the Ministry of Environment and
Natural Resources in 2005. However, this was not a mandatory regulation.
Sri Lanka Standards Institute (SLSI) has prepared a national organic standard, which will
start to function in 2008. This will be the first national level certification programme for organic
production and processing in Sri Lanka.
However, Sri Lanka lacks a nationally (accredited) organic certification system and a
national certification body. Currently, the private sector and government cooperate in setting up a
national certification body in Sri Lanka through a project mainly supported by the EU small grants
facility.
Certification bodies
There is no accredited certification or standards available for domestic market. The SLSI
standard described above will be the pioneering standard, with a certification body. However,
products certified by the international certification agencies for export markets are available in
domestic market too.
There are seven certification agencies who carryout certification for organic export
products. These are according to regulations of European Union, National Organic Program –
NOP of USDA and Japanese Agriculture Standards (JAS). Some of these agencies have local
inspectors for the inspection process.
At present following seven international certification agencies operate in Sri Lanka.
1. Control Union (SKAL, Netherlands)
2. NASAA, Australia
3. Naturland, Germany
4. Institute for Market Ecology – IMO, Switzerland
5. EcoCert, Germany
6. Organic Farmers and Growers Ltd, United Kingdom
7. Demeter and BioSuisse, Switzerland
Internal control system for organic smallholder farmers is commonly practiced by
certifiers in Sri Lanka. This is under the supervision of the particular certification company. This
task is a challenging one due to the area and scattering nature of organic plots.
There some initiatives happening with Participatory Guaranty System as a NGO
contributions.
There are no any local certification body yet. That was the one of main objective in EU-SLOP
Project. They have registered company under the EDB for organic product certification (Sri
Lanka Institute for Organic Certification - SLIOC). But it seems also for export product. It
hasn’t any contact for local consumers. There are trying to work with local market. Same times
there are group of NGOs trying to work on Local Certification issues. They also form a company
called SRICERT. There are working for specially rice, tea and spice farmers. Still there are no big
demands from local consumers for certification.
The role of standards, certification and regulation in market development.
Standards and certification will be beneficial for the development of both domestic and
export market. Our Standard are fallowed all international standard like EU, OPD
Lessons learnt
High cost was a drawback regarding the introduction of standards. Small scale producers
such as farmers cannot afford the high cost of the certification. Instead the group certification
could be used, but the global circumstances related to this can hinder the development.
The availability of a national standard and a national certification body could reduce the
costs associated with the certification which will improve the sector development.
The negligence of the government in making standards and institutionalising a
certification body is a drawback for the development.
6. SUPPORTING STRUCTURES: RESEARCH, EDUCATION, EXTENSION
Available capacity building and extension options
NGOs and other associations are engaged in capacity building and extension options for
past with the support of agencies like LOAM and other organizations. There is a need for this as
modern organic agriculture differs from the traditional practice in certain aspects. Recently there
are other agencies such as universities involved in these activities.
Important stakeholders and their roles
Universities play a major role in research and education on organic agriculture. Four
universities which offer agriculture courses have initiated courses in sustainable agriculture. These
are namely University of Ruhuna, University of Peradeniya, Eastern University and
Sabaragamuwa University. Further more, some have integrated organic agriculture to the existing
syllabuses. Lobbying by some NGOs helped for this initiation.
Universities, research institutions and NGOs carry out research activities on organic
agriculture. In some cases, influence of some enthusiastic individuals is the main reason for this.
Private sector companies do have their own research and development work.
NGOs play an important part in extension activities which mostly reaches the grassroots
level of the sector, the farmers.
Lessons learnt
Addiction to the conventional agriculture and the commercial level agriculture during the
last 3-4 decades is a drawback in the sector development. Educating farmers and making them
understood of the benefits of organic agriculture (for them, consumers and agriculture) is a huge
task. Educating the youth can be an effective tool in such cases.
Continuous awareness is a requirement in education.
FOR ITC CONFERENCE AT BANGKOK
1. STATUS OF ORGANIC FARMING
The current extent of organic farming expressed as a percentage of the total
agriculture.
There were 15,215 hectares of land under organic management in 2006, with a share of
total agricultural land of 0.65% and a presence of around 3,300 organic farms. However, the area
under certified organic was 10,050 hectares, which corresponds to about 0.43% of the total
agricultural area of the country in 2005. When compared with the average proportion of land
managed organically in Asia, which is 0.21% in 2005, Sri Lanka has a higher figure.
The nature of organic production
Organic production in Sri Lanka reaches both domestic market and export markets.
Figures related to the export production are available, but the actual figure regarding the domestic
market is uncertain.
According to the Export Development Board, as of 2000, 15 organizations, both private
and non government were responsible for exporting 753 metric tons of organic tea, spices,
essential oils, cashew, desiccated coconut, dried fruits, vegetables and herbs valued at S.L. Rs. 543
million. According to the organic directory published in 2006, the number of registered exporters
is 30, non governmental and farmer organizations number 34, the number of certified estates
number 20 and there are 177 independent growers who come under the umbrella of the
Department of Export Agriculture.
Organic crops grown in Sri Lanka
Crop Botanical name Product/s
Anona Annonna sp. Fruit/ Juice
Avacado Persia Americana Fruit
Banana Musa sp. Fruit
Cardamom Elettaria cardamomum Spice,
Cashew Anacardium
occidentale
Fruit
Chilli Capsicum sp. Spice/ Vegetable
Cinnamon Cinnamomum verum Spice
Citrus Citrus sp. Fruit/ Juice/ spice
Cloves Syzygium aromaticum Spices
Coconut Cocos nucifera Fresh nut/ Toddy/ Honey
Coffee Coffea arabica Beverage
Ginger Zingiber officinale Spice
Gotukola Centella asiatica
Hatwariya Asparagus racemosus Medicinal plant/ drink
Jack Fruit Artocarpus
heterophilus
Fruit/ vegetable/
dehydrated product
Kitul Caryiota urens Treacle/ toddy
Kurakkan Eleusine coracana Grain
Mango Mangifera indica Fruit/ drink
Nutmeg Myristica fragrans Spice
Papaya Carica papaya Fruit/ Juice
Passion fruit Passiflora spp. Fruit/ Juice
Pepper Piper nigrum Spice
Pineapple Ananas sativus Fruit/ Juice
Rambutang Nephelium lappacium Fruit
Tamarind Tamarindus indica Spice/ Fruit
Tea Camelia sinensis Beverage
Traditional
rice
Oryza spp. Grain
Turmeric Curcuma longa Spice
Vanilla Vanilla planifolia Spice
White
sesame
Sesamum spp. Grain
2. DEVELOPMENT OF THE ORGANIC AGRICULTURE SECTOR
Sri Lanka has a civilization dating back to more than two thousand five hundred years,
which was based on agriculture determined by the rainfall and suitable soil conditions. The
agricultural practice of the people since the past to recent times was well inline with nature. Under
this traditional agricultural practice, organic agriculture was not a novel concept. It was based on
local resources and it was a non-chemical practice. The Kandyan home garden practices are one of
the best evidence for the cropping systems existed in Sri Lanka. The other important factor
regarding the traditional agriculture was that it was done for subsistence. Conservation farming
used indigenous knowledge and traditional agricultural equipments and tools. The systems
developed by the people was an efficient and effective system, with such elaborate practices such
as Kakulama in rice cultivation and Chena cultivation for field crops and crop rotation system,
agro-forestry system etc.
This situation changed during the last century, when the subsistence agriculture changed to
a market oriented agricultural productions. The use of chemicals was intensified after the green
revolution. The current conventional agricultural practice is a market oriented commercial
agriculture with high chemical usage. Subsistence farming has also uses increased amounts of
agro-chemicals.
However, the modern organic agriculture which is practiced based on standards and
certification and oriented to produce for the markets. Modern organic agricultural movement was
initiated in early 1980s with the activities of local non-government organizations, with the
influence of foreign agricultural movements. Same time some of agriculturist who had friends in
out side the country they also bring these ideas to country. Business people like Mr.Dencil Zosa
who took risk and converted his plantation into organic, and there were good traditional farmers
who did not use any chemical or synthetic fertilizer.
In 1994, a group of like minded NGO activists, planters, scientists and environmental
activists created the movement named Lanka Organic Agriculture Movement (LOAM). This is a
crucial step towards organized movement on organic agriculture in Sri Lanka as the formation of
an umbrella body. The primary objectives of LOAM were to promote organic agriculture, to
establish, improve and maintain standards for organic agriculture and to create awareness of
organic products among the people of Sri Lanka. There are different other examples just like
private sector initiatives/network organizations involved in organic agriculture such as the recently
formed Small Organic Farmer Associations (SOFA), Lanka Organic Coconut Grover’s
Association
Organic agriculture developed with the time, increasing the number of crops and area. In
1987 the first organic tea estates were certified in Sri Lanka. At present there are more than 15
projects with a variety of more than 20 crops are involved in growing, processing and trading
certified organic products. The area under certified organic agriculture has increased from a total
land area of 3,700 hectares in 1998 to 10,050 hectares in 2005, which corresponds to 0.43% of the
total agricultural area.
The most important stakeholders and /or alliances
There are two major groups in modern organic agriculture movement in Sri Lanka, which
could be distinguished since the beginning. The first group included smallholders consisting of
individual farmers who were working closely with the NGOs. They were sometimes organized as
special groups or cooperatives or societies to fulfil their objectives.
The other group included private companies which were running large scale productions
with larger plantations. These ventures oriented with export market were keen on modernizing the
sector with issues such as standards and certification.
Describe situations which had a negative impact
There was time with political support with good initiation to the overall sector but after that
political support lost the election all the initiation were lost. Just like Organic product council, it is
the first time govt body was involved to make national standard for the sector. But some of people
who claimed that is not the body should do officially stranded it is under the Sri Lanka Stranded
Institution which is the responsible. Some of people who involve that process with their voluntary
work haven’t properly evaluated. Some of recently started work not properly work out due to lack
of transparency and Govt control agenda’s. Good example is EU-SLOP project funded by
European Union. Due that two reason some of partners withdraw their contribution to project.
Lessons learnt about sector development: background situation/factors, strategies
and actions.
There are many lessons with sector. Whole success came trough people strength those who involve
the process. There are no any govt involvements or support for beginning to the sector. But with
all stockholders support sector is not going ahead as past. There should be govt strong section
where they can work closely with other stockholders.
3. MARKET DEVELOPMENT
Domestic market
Domestic market for organic agricultural products mainly consists to the urban and
educated communities and it is a growing market. Supermarkets are the most dominant market
method for organic products. However, there is a demand among the general public and also in the
rural areas, where the production is consumed.
Main export markets
Bulk of the volume of organic agricultural products is exported. Major export destinations
include European countries, USA, Japan and Australia. The market in the Middle East is also a
growing one.
In product scenario Sri Lanka is a leading exporter in organic coconut oil, spices and a
sizable exporter of organic tea.
Distinguishing features of domestic and export markets
The export market oriented production, which requires proper certifications internationally
accepted are mainly supplied by private companies, numbering to 30. However, domestic market
is provided companies, individuals and organizations.
The export products mainly consist if tea and spices. The domestic market is dominated by
fruits, fruit drinks, rice verities etc.
Critical factors for effective market initiatives. Problems and/or less successful
initiatives and how they were solved.
There are some good market initiatives which are functioning with individual capacities. Fair trade
groups, going as social businesses. Many NGOs and charity organisations are involving for
marketing of their beneficiaries products. With supporters in north, Private Company like
BioFoods done very good initiative which is SOFA. SOFA is Small Organic Farmers Association
those who supplying organic and Fair trade product to the Bio food. SOFA having very good
internal control system which you can’t expect from farmers.
Consumer awareness building: successful marketing and consumer
information/education initiatives. Why successful? Examples of unsuccessful
initiatives and reasons for failure. Contacts with media and importance.
Consumer awareness as a sector is not very good. But most of the time Companies when they want
to have publicity giving opportunity to media. But there are no strong campaigns for consumer
awareness. With all environmental, health and other problems giving good opportunity to organic
sector for go forward in local market.
The use of standards and certification for domestic market development.
Modern organic agriculture is a market oriented and production has to adhere to certain
standards or at least accepted norms in cultivation methods and practices. Although this is an
essential in the export market, sstandards and certification has been used in a limited impact for the
domestic market development. However, certified products have an advantage in the domestic
market too.
Producers have used terms such as ‘no chemicals used’, ‘non toxic’ etc to highlight their
products. Some organic products are marketed with other marketing advantages such as traditional
rice varieties which have a high demand.
Certification could change the market situation within the target customers who are
educated crowds increasingly paying attention on such measures. Marketing and awareness of
organic products should be increased.
Strategies and tools used for image and confidence building
Providing a substantial subsidy for the organic growers could be a vital measure for the
development of the sector. Also an insurance scheme for the growers could provide important
results.
Driving forces for market development
Main driving force behind the growing organic sector is the increasing demand for the
products, mainly in the foreign destinations.
A main reason for the growing domestic market based supermarkets is due to the increased
awareness of the health benefits of organic products and the ill effects of chemicals used in
conventional agriculture. NGOs, traditional medical practitioners and sales circles are also a
driving force in the local market in a lesser scale. Lanka Organic Agriculture Movement is one of
such organization which is a driving force behind the event.
Government organizations such as Export Development Board, Department of Export
Agriculture had been engaged in promoting exports could be mentioned as driving forces.
Effective tools and resources for market development
Proper certification and standards is the most effective tool which could be used for
market development, both for domestic and export markets. Proper marketing methods and
increased awareness on the benefits of organic products could be considered as a useful tool.
Lessons learnt regarding market development
A key issue in the organic sector is the problem of establishing a continuous product from
seasonal crop harvest to ensure the supply to the markets.
4. ORGANIC AGRICULTURAL POLICY
General Agriculture Policy
Present Agriculture policy (2007) not mentioning any thing about Organic Agriculture. But they
are talking about Organic fertilizer. The Ministry of Agriculture had get back of their feet. In
previous policy was clearly said that Organic Agriculture is growing sector in Sri Lanka. It should
be promoted and Developed by the involvement with govt Ministry of Agriculture. Policy maker’s
wants to get prove what the advantages of the organic Farming; it has to come out trough the
research canters of the Agriculture Department.
Discriminates against organic agriculture
Following are some examples which could be identified as discriminates against organic
agriculture
1. Fertilizer subsidies: Successive governments were providing chemical fertilizers at a
low price with financial substantial subsidies. This was a setback in promoting organic
agriculture.
2. Still govt high level policy makers not well aware about the Organic Agriculture and
its advantages
Supports organic farming
After a long negligence of the organic sector, the Government has taken steps to provide
some incentives for the sector. A decision to provide a subsidy for the organic fertilizer
manufacturing sector is an example. Although the amount allocated is far lower than the amount
for the non-organic sector, this is not the encouraging initiative.
Government involvement in organic farming
The key government stakeholders important for the development of policy are Ministry of
Agriculture and Departments such as the Department of Agriculture, Department of Export
Agriculture. There are other agencies such as Export Development Board.
The organic sector was long neglected by the Government and their involvement was
restricted to trainings and awareness on some issues. The lack of government involvement was
identified as one of the limiting factors in the development of organic agriculture. However,
private sector and NGOs were continuously taking efforts to get state sector involved. Eventually,
Government initiatives became prominent only in the past few years.
The inclusion of organic agriculture in the National Agricultural Policy in 2003 was a
major achievement. Government has recognized the sector to be supported as a ‘thrust area’ for
economic development in year 2004. This was done considering the export potential and positive
environmental impacts.
Measures taken by the government
1. Creating the national standard
2. Providing a fertilizer subsidy for the organic sector.
Other policy initiatives
Other government policy initiatives concerned about organic agriculture. The Ministry if
Environment and Natural Resources was one such government institution initiated policy
developments related to organic agriculture. The National Environmental Action Plan (1998-
2001), prepared by the Ministry of Forestry and Environment, included few innovative
conservation farming technologies and institutional approaches for agriculture. This was aimed to
provide high economic benefits and protection for the environment.
Further to this, the Ministry of Environment was influential in preparing the guidelines for
standards in 2005.
There are some initiative on active now under Agriculture Department. There are now helping
other institutions to work. Apart from that there is Good committee under the National Science
Foundation called Sustainable Agriculture committee. There are bringing this idea to sciencetific
community. Business sector are trying to get more opportunities. But other infrastructure not
properly Developed, Specially like Banks, they don’t have any single credit facility to Organic
farmers or who are doing business. From PVT sector some joint initiative works vary well.
Specially SOFA is the creation of BIO Foods.
The driving forces for policy development
NGOs and the private sector were the key driving forces behind policy development in
organic agriculture in Sri Lanka.
LOAM played a major role in policy development and it has successfully influenced
Government policy. It was engaged in preparation of guidelines (2005) and also development of
standards for organic agriculture (2007).
Lessons learnt about policy initiatives regarding organic farming.
Organic product council was good initiative which is led by global affairs division of environment
ministry. It has all focus for sector. Lanka Organic Agriculture Movement is one of main body
which is working for policy of the organic sector. Past years it played major roll in the sector.
5. ORGANISATION AND STRUCTURE OF THE ORGANIC SECTOR
Institutional structures
The institutional structure could be in three major components;
1. Producers: Individuals and private sector companies are the main groups of
producers. In many cases, these individual farmers are grouped under NGOs or farmer
associations or cooperative bodies.
2. Organizations/ Associations: Organizations have played a key role in the organic
sector. These include farmer associations; community based organizations as well as
non-government organizations. Some of these work broadly on organic sector, but
some target specific crops such as cultivation of traditional rice varieties.
3. National Movements: Lanka Organic Agriculture Movement founded in 1994 is
the pioneering association related to the policy development. Small Organic Farmer
Association (SOFA) is a recently formed association of organic farmers who are
engaged in the industry in small scale.
Strategy and lobby work
Lobbying was a major issue for the development of the sector. Integration of organic
agriculture to the National Agricultural Policy in 2001 was a major achievement. Also the
guidelines for certification, which were prepared in 2005 is a result of lobbying of NGOs.
Lessons learnt regarding organisation and relationships between different partners.
Successive governments were positive regarding the developing the sector as the officials
were well coordinating with the other stakeholders.
Also private sector was having a good relationship with the movements as well as the
sector
In research sector, universities and government research institutions were sharing the
experiences with the other stakeholders. Number of universities has initiated various courses on
organic agriculture and some have integrated organic agriculture to their syllabuses.
5. REGULATORY FRAMEWORK
Organic standards development
Standards are one of the important aspects for the development of organic sector. Since the
first international regulation of Regulation EEC N0 2092/91 which was drawn up in 1991 and
implemented in 1992 is the first international regulation in world.
Efforts were taken to initiate a standard in Sri Lanka since early 1990s. A number of
discussions, workshops were held among the stakeholders, efforts were made to include the state
sector etc. An initiative in 1996 finalised a preliminary draft set of standards for organic
production, which was.
LOAM and other voluntary groups have developed a set of guidelines for standards in
organic production and processing, which was published by the Ministry of Environment and
Natural Resources in 2005. However, this was not a mandatory regulation.
Sri Lanka Standards Institute (SLSI) has prepared a national organic standard, which will
start to function in 2008. This will be the first national level certification programme for organic
production and processing in Sri Lanka.
However, Sri Lanka lacks a nationally (accredited) organic certification system and a
national certification body. Currently, the private sector and government cooperate in setting up a
national certification body in Sri Lanka through a project mainly supported by the EU small grants
facility.
Certification bodies
There is no accredited certification or standards available for domestic market. The SLSI
standard described above will be the pioneering standard, with a certification body. However,
products certified by the international certification agencies for export markets are available in
domestic market too.
There are seven certification agencies who carryout certification for organic export
products. These are according to regulations of European Union, National Organic Program –
NOP of USDA and Japanese Agriculture Standards (JAS). Some of these agencies have local
inspectors for the inspection process.
At present following seven international certification agencies operate in Sri Lanka.
1. Control Union (SKAL, Netherlands)
2. NASAA, Australia
3. Naturland, Germany
4. Institute for Market Ecology – IMO, Switzerland
5. EcoCert, Germany
6. Organic Farmers and Growers Ltd, United Kingdom
7. Demeter and BioSuisse, Switzerland
Internal control system for organic smallholder farmers is commonly practiced by
certifiers in Sri Lanka. This is under the supervision of the particular certification company. This
task is a challenging one due to the area and scattering nature of organic plots.
There some initiatives happening with Participatory Guaranty System as a NGO
contributions.
There are no any local certification body yet. That was the one of main objective in EU-SLOP
Project. They have registered company under the EDB for organic product certification (Sri
Lanka Institute for Organic Certification - SLIOC). But it seems also for export product. It
hasn’t any contact for local consumers. There are trying to work with local market. Same times
there are group of NGOs trying to work on Local Certification issues. They also form a company
called SRICERT. There are working for specially rice, tea and spice farmers. Still there are no big
demands from local consumers for certification.
The role of standards, certification and regulation in market development.
Standards and certification will be beneficial for the development of both domestic and
export market. Our Standard are fallowed all international standard like EU, OPD
Lessons learnt
High cost was a drawback regarding the introduction of standards. Small scale producers
such as farmers cannot afford the high cost of the certification. Instead the group certification
could be used, but the global circumstances related to this can hinder the development.
The availability of a national standard and a national certification body could reduce the
costs associated with the certification which will improve the sector development.
The negligence of the government in making standards and institutionalising a
certification body is a drawback for the development.
6. SUPPORTING STRUCTURES: RESEARCH, EDUCATION, EXTENSION
Available capacity building and extension options
NGOs and other associations are engaged in capacity building and extension options for
past with the support of agencies like LOAM and other organizations. There is a need for this as
modern organic agriculture differs from the traditional practice in certain aspects. Recently there
are other agencies such as universities involved in these activities.
Important stakeholders and their roles
Universities play a major role in research and education on organic agriculture. Four
universities which offer agriculture courses have initiated courses in sustainable agriculture. These
are namely University of Ruhuna, University of Peradeniya, Eastern University and
Sabaragamuwa University. Further more, some have integrated organic agriculture to the existing
syllabuses. Lobbying by some NGOs helped for this initiation.
Universities, research institutions and NGOs carry out research activities on organic
agriculture. In some cases, influence of some enthusiastic individuals is the main reason for this.
Private sector companies do have their own research and development work.
NGOs play an important part in extension activities which mostly reaches the grassroots
level of the sector, the farmers.
Lessons learnt
Addiction to the conventional agriculture and the commercial level agriculture during the
last 3-4 decades is a drawback in the sector development. Educating farmers and making them
understood of the benefits of organic agriculture (for them, consumers and agriculture) is a huge
task. Educating the youth can be an effective tool in such cases.
Continuous awareness is a requirement in education.
The World and Sri Lankan Spices
A spice is a dried seed, fruit, root, bark or vegetative substance used as a food additive for the purpose of flavoring, and sometimes as a preservative by killing or preventing the growth of harmful bacteria in food. Many of these spices are also used for other purposes such as medicine, cosmetics, perfumery or as religious rituals. For example, turmeric is used as a preservative; licorice as a medicine Some times they are also being referred to by different terms. Spices in spice gardens of Sri Lanka can be distinguished from herbs, which are leafy, green plant parts used for flavoring purposes. Herbs, such as oregano, basil can be used fresh. Spices in spice gardens of Sri Lanka however, are dried and often ground or grated into a powder. Small seeds, such as fennel and mustard seeds, are used both whole and in powder form.
Essential Oils and Oleoresins
Essential oils are aromatic, odorous oily liquids obtained from plant material, for example flower buds, leaves, seeds, bask fruits and roots. Essential oils, the most flavorful part of many spices & herbs, Therefore of highs value than the spice itself. Essential oils can be obtained from the plant material by distillation or extraction. Sri Lanka has a long history for exporting essential oils.
These are three different distillation methods.
Water distillation
Water & Steam distillation
Steam distillation
Major Markets
Essential oil Exports – 1998 ( Value in US $ Mn )
U.S.A., India, France, U.K., Netherland, Germany, Italy, Hong Kong, Spain, Switzerland
Quality & Grading Standards
The quality of essential oils is assessed by a buyer on the basis of a number of criteria.
Odour and flavour character
Physical properties and the chemical compositions
The Standard Specifications include
A definition of the acceptable botanical source and processing method for the particular oil, specifications for physico – chemical properties such as:Relative density, Ester value, Freezing point, Optical rotation analysis. CISIR certification gives general analysis of essential oils.
Packaging
There are different ways of packaging. The 200 L metal or tin lining drums are normally used for shipping high volume essential oils. These drums contain app. 180 Kg of oil. Special attention must be paid to sealing the drums, to avoid dilution of the essential oils during transport.
Market segmentation
Essential oils can be used in various end-use products. It depends on the kind of oil and the quality of the oil in what kind of end-use product they are processed.
Some of the different industries, which use essential oils are
Perfume industry, Pharmaceutical industry ,Food industry ,Bakery ,Confectionery ,Beverages
The Labeling on the drums must include a short description of the product and country of origin and the date of production.Further it is recommended to include the following aspects on the label.
Name / address of the producer / exporter
Net weight
Recommended storage conditions
Spices
Sri Lanka has been famous for her natural spices from ancient times. Spices now play an important role in Sri Lankan agricultural economy in respect of export oriented trade. The important spice crops in Sri Lanka comprise cinnamon, pepper, clove, nutmeg and mace. Spices are cultivated in the wet and intermediate zones of the country.
Cinnamon Cinnamomum verum Lauraceae Bark
Pepper Piper nigrum Piperraceae Fruit seed
Cardamom Elettaria cardamomum Zingiberaccae Friut seed
Clove Syzigium aromaticium Myrtaccae Flower Bud
Nutmeg Myristica fragrans Myristicaceae Seed
Mace Myristica fragrans Myristicaceae Aril of seed
Exports of Spices and allied products are in the range of Rs.5700 mn and provides many socio-economic benefits to the rural economy.Exports of spices can be divided in to two groups` 1. Primary Form
2. Value added form - powder, oil, spice mixes and various recipes
Major Markets
Mexico, U.S.A., U.K., Colombia, Germany, India
Quality and Grading Standards
The bulk of spices entering international trade is in whole and ungrounded form.When ground or mixed spices are exported specially testing for contamination or other residues needed.Sri Lanka follows SLSI standards but actual quality standards required are set by importers and major end users against the health and safety requirements of Food and Drug Act, ASTA Specifications, EU regulations or ESA standards.The main quality factors considered are appearance, flavour, aroma, colour, volatile oil content and cleanliness.
Packing
Spices are required to be packed in clean, hygienic materials which do not interact with the product itself and also depend on the importer’s specificationMost of the spices are packed in jute bags lined with waterproof. Cinnamon is generally packed in bales and for other Spices steel drums or wooden cases and for cardamom black polythene can be used for colour preservation. All spices must be thoroughly dried to avoid the formation of mould before shipment.
Major International Food Fairs…..
Food Ingredients Europe,Anuga ,SIAL ,IFE ,Alimentaria ,Food Ingredients Asia ,Foodex
Food & Hotel Asia
Organic (Bio) Products
Range of Products:Tea, spices, cashew, desiccated coconut, herbs, processed fruits and vegetables.
Sri Lanka's economy has for a long time been based on the export of agricultural produce. In recent years, an effort has been made to break into the international market for organic produce. The first conversion of tea estates to organic production was made as early as the mid 1980s.The Sri Lanka Export Development Board has recognised the potential Sri Lanka possesses to become an exporter of organic produce and with the assistance of Pro-trade has developed and diversified the exports of organic produce - mainly to EU countries.
Supply Position
Twelve companies are involved in the production and the export of organically grown produce. Large amounts of land are being certified for organic agriculture, so as to increase the supply base to enter new markets.The certification is carried out by international agencies accredited to International Federation of Organic Agriculture Movements (IFOAM).
Major Markets
Germany, Australia, UK, Japan, Canada and France.
Essential Oils and Oleoresins
Essential oils are aromatic, odorous oily liquids obtained from plant material, for example flower buds, leaves, seeds, bask fruits and roots. Essential oils, the most flavorful part of many spices & herbs, Therefore of highs value than the spice itself. Essential oils can be obtained from the plant material by distillation or extraction. Sri Lanka has a long history for exporting essential oils.
These are three different distillation methods.
Water distillation
Water & Steam distillation
Steam distillation
Major Markets
Essential oil Exports – 1998 ( Value in US $ Mn )
U.S.A., India, France, U.K., Netherland, Germany, Italy, Hong Kong, Spain, Switzerland
Quality & Grading Standards
The quality of essential oils is assessed by a buyer on the basis of a number of criteria.
Odour and flavour character
Physical properties and the chemical compositions
The Standard Specifications include
A definition of the acceptable botanical source and processing method for the particular oil, specifications for physico – chemical properties such as:Relative density, Ester value, Freezing point, Optical rotation analysis. CISIR certification gives general analysis of essential oils.
Packaging
There are different ways of packaging. The 200 L metal or tin lining drums are normally used for shipping high volume essential oils. These drums contain app. 180 Kg of oil. Special attention must be paid to sealing the drums, to avoid dilution of the essential oils during transport.
Market segmentation
Essential oils can be used in various end-use products. It depends on the kind of oil and the quality of the oil in what kind of end-use product they are processed.
Some of the different industries, which use essential oils are
Perfume industry, Pharmaceutical industry ,Food industry ,Bakery ,Confectionery ,Beverages
The Labeling on the drums must include a short description of the product and country of origin and the date of production.Further it is recommended to include the following aspects on the label.
Name / address of the producer / exporter
Net weight
Recommended storage conditions
Spices
Sri Lanka has been famous for her natural spices from ancient times. Spices now play an important role in Sri Lankan agricultural economy in respect of export oriented trade. The important spice crops in Sri Lanka comprise cinnamon, pepper, clove, nutmeg and mace. Spices are cultivated in the wet and intermediate zones of the country.
Cinnamon Cinnamomum verum Lauraceae Bark
Pepper Piper nigrum Piperraceae Fruit seed
Cardamom Elettaria cardamomum Zingiberaccae Friut seed
Clove Syzigium aromaticium Myrtaccae Flower Bud
Nutmeg Myristica fragrans Myristicaceae Seed
Mace Myristica fragrans Myristicaceae Aril of seed
Exports of Spices and allied products are in the range of Rs.5700 mn and provides many socio-economic benefits to the rural economy.Exports of spices can be divided in to two groups` 1. Primary Form
2. Value added form - powder, oil, spice mixes and various recipes
Major Markets
Mexico, U.S.A., U.K., Colombia, Germany, India
Quality and Grading Standards
The bulk of spices entering international trade is in whole and ungrounded form.When ground or mixed spices are exported specially testing for contamination or other residues needed.Sri Lanka follows SLSI standards but actual quality standards required are set by importers and major end users against the health and safety requirements of Food and Drug Act, ASTA Specifications, EU regulations or ESA standards.The main quality factors considered are appearance, flavour, aroma, colour, volatile oil content and cleanliness.
Packing
Spices are required to be packed in clean, hygienic materials which do not interact with the product itself and also depend on the importer’s specificationMost of the spices are packed in jute bags lined with waterproof. Cinnamon is generally packed in bales and for other Spices steel drums or wooden cases and for cardamom black polythene can be used for colour preservation. All spices must be thoroughly dried to avoid the formation of mould before shipment.
Major International Food Fairs…..
Food Ingredients Europe,Anuga ,SIAL ,IFE ,Alimentaria ,Food Ingredients Asia ,Foodex
Food & Hotel Asia
Organic (Bio) Products
Range of Products:Tea, spices, cashew, desiccated coconut, herbs, processed fruits and vegetables.
Sri Lanka's economy has for a long time been based on the export of agricultural produce. In recent years, an effort has been made to break into the international market for organic produce. The first conversion of tea estates to organic production was made as early as the mid 1980s.The Sri Lanka Export Development Board has recognised the potential Sri Lanka possesses to become an exporter of organic produce and with the assistance of Pro-trade has developed and diversified the exports of organic produce - mainly to EU countries.
Supply Position
Twelve companies are involved in the production and the export of organically grown produce. Large amounts of land are being certified for organic agriculture, so as to increase the supply base to enter new markets.The certification is carried out by international agencies accredited to International Federation of Organic Agriculture Movements (IFOAM).
Major Markets
Germany, Australia, UK, Japan, Canada and France.
Organic Agriculture in Sri Lanka - Some Future Considerations
by Kamal Melvani, General Secretary, Lanka Organic Agriculture Movement
email: neosynth@sltnet.lk
Modern organic agriculture* in Sri Lanka is coming of age now. According to IFOAM & FiBL (2006), there are 15,215 hectares of land under organic management, with a share of total agricultural land of 0.65% and a presence of around 3,300 organic farms.1 While data from the Export Development Board seems only available till 2000, suffice it to say that up to that time, 15 organizations, both private and non government were responsible for exporting 753 metric tons of organic tea, spices, essential oils, cashew, desiccated coconut, dried fruits, vegetables and herbs valued at S.L. Rs. 543 million.2 Most of these organic products are exported to Europe, Japan and Australia. The organic directory published in 2006 states that the number of registered exporters had since risen to 30, non governmental and farmer organizations number 34, the number of certified estates number 20 and there are 177 independent growers who come under the umbrella of the Department of Export Agriculture.3
The backbone of a vital organic agriculture is the Sri Lankan farmer and those organizations and persons who work with him/her. The organic movement in Sri Lanka started in the 1980s where a group of local NGO representatives, planters, scientists and environmental officers had drafted a Memorandum of Association to create a movement named Lanka Organic Agriculture Movement (LOAM). This can be seen as the official starting point for the dissemination of organic agriculture in Sri Lanka. The primary objectives of LOAM are to promote organic agriculture, to establish, improve and maintain standards for organic agriculture and to create awareness of organic products among the people of Sri Lanka. In 2001 LOAM was registered as an official legal body.1
The Movement has matured in the past six years where in principle, its achievements can be evaluated in the manner in which it has influenced Government policy. LOAM was instrumental in establishing the guidelines for certification in 2006 that were presented to the Ministry of Environment and Natural Resources. In 2007, at the invitation of the Sri Lanka Standards Institute, LOAM played a decisive role in drawing up the Standards for Organic Agriculture in Sri Lanka. LOAM was also a partner to the EU SL Organic Agriculture Project that sought to set up the first National certification company in Sri Lanka. While LOAM members continue to engage in awareness creation and field work on their own accord, the time has come to consolidate their energies in order to face the many challenges ahead. While the Government seems seriously bent on promoting organic agriculture it behoves us at LOAM to set the direction. Looking closely at the issues at hand it seems pertinent to discuss the role that organic agriculture must play in terms of conserving biodiversity, safeguarding water quality and facing up to climate change for instance.
Biodiversity conservation and restoration
Biodiversity provides the foundation of all agriculture.4 The simplification of agro-ecosystems to monoculture production and the removal of non-crop vegetation from the farm unit (e.g. hedgerows, shelter belts and field margins) has contributed to the homogeneity of agricultural landscapes by reducing botanical and structural variation, resulting in both a reduced capacity of agricultural areas to serve as habitat for wild species as well as to effectively internally regulate populations of pests and disease causing organisms which affect crop productivity5,6. This has resulted in a widespread decline in farm species abundance and diversity across many taxonomic groupings, including high rates of wildlife mortality and reduced reproductive success of many species. 7,8,9,10,5,11&12 This loss of biodiversity has also resulted in a reduced capacity of agro-ecosystems to perform many essential ecosystem functions such as purification of water, internal regulation of pests and diseases, carbon sequestration, and degradation of toxic compounds. 13
However, agriculturalists are now aware of the value of the biodiversity "input" for agriculture. The ecological functions of diverse ecosystems (such as balanced predation, pollination, nutrient cycling, degradation of toxic compounds, carbon sequestration) are today recognized to be central to sustainable food production. Moving away from simplified agricultural systems offers opportunities to produce food while enhancing natural landscapes. 14
At the same time, biodiversity in all agro ecosystems should be seen as being comprised of two primary elements: crop biodiversity and systems biodiversity. Crop biodiversity refers to the species present on the farm that will provide direct economic input to the farm. Systems biodiversity is the non crop component of the biodiversity that is required to sustain the agro ecosystem. It is both of these measures that indicate the state of biodiversity in that agro ecosystem. The gain in biodiversity in an agricultural field is directly proportional to a change in the management regime adopted. Therefore the challenge before us is to evolve a system of knowledge that will enable the use of biodiversity data in monitoring and evaluation of organic farming.15 This is important given that the present National Standards for Organic Agriculture in Sri Lanka state that “the presence of biodiversity (soil, surface and aquatic) is an indication of the health of the agro ecosystem.” 16
Over the last century, population, market pressures and the development of new agricultural technologies have encouraged patterns of agricultural development tending towards agricultural intensification (i.e. increasing scales of monoculture production, intensive mechanical tillage, irrigation, and the use of synthetic fertilizer, pest control agents and a restricted diversity of crop and livestock varieties), often leading to natural resources degradation. The majority of the human population increase is expected to take place in the biodiversity-rich developing countries of the tropics like Sri Lanka.14
The Convention on Biological Diversity “encourages the development of technologies and farming practices that not only increase productivity, but also arrest degradation as well as reclaim, rehabilitate, restore and enhance biological diversity and monitor adverse effects on sustainable agricultural diversity. These could include, inter alia, organic farming, integrated pest management, biological control, no-till agriculture, multicropping, intercropping, crop rotation and agricultural forestry” (Decision III/11, 15 e) 17. While several agricultural approaches make sustainability claims, organic agriculture is the only well-defined agricultural management system, including recommended and restricted practices that aim at environmental protection and food production. However, the main challenge in protected areas is to conserve biodiversity while providing the basis for the social and economic development of local residents.14
In the past twenty seven years an alternative system of land management has been developed in Sri Lanka where the landscapes of farm gardens have been designed to include a variety of both annual and tree crops that provide a host of utility benefits like food, medicine, timber, fuelwood, fodder, fibre etc. They are also designed to provide whole forest products and services like water yield, carbon sequestration, biodiversity conservation and phytoremediation. Of specific relevance is that they generate leaf litter and detritus thus facilitating soil biodiversity and building soil organic matter. This technology called analog forestry has proved to be extremely effective in the restoration of degraded land and has been used in the rehabilitation of watersheds, Tsunami affected lands and ground water that has been contaminated by agrochemicals. Analog forestry is a system of land management that seeks to establish a tree dominated ecosystem analogous in architectural structure and ecological function to the original climax or sub climax vegetation community. Analog forestry moves beyond other current agro forestry practices since it includes an explicit focus on the identification and incorporation of biological diversity. In fact the income generation from these forest gardens has been seen to consistently increase in time; 18 they also reduce the risk from the cultivation of a single or few crops since the products can be harvested all year round. This technology has demonstrated that since all crops in these new forests are grown organically, many species of animals and birds that were once confined to the original forest move in and establish populations. 19
Safeguarding water quality
A Report released in 2001 by the American Association for the Advancement of Sciences states that: “should past dependences of the global environmental impacts of agriculture on human population and consumption continue, 109 hectares of natural ecosystems would be converted to agriculture by 2050. This would be accompanied by 2.4 to 2.7-fold increase in nitrogen and phosphorus-driven eutrophication of terrestrial, freshwater, and near-shore marine ecosystems, and comparable increase in pesticide use. Eutrophication and habitat destruction would cause unprecedented ecosystem simplification, loss of ecosystem services, and species extinctions.20 Already in Sri Lanka we are facing problems of the contamination of our rivers, streams and ground water due to nitrogen based fertilizers and other agrochemicals. The impact on human health has revealed a host of kidney related problems, carcinomas and Methemoglobinemia though more research needs to be done. 21, 22 & 23 The need to influence water policy is therefore critical where organic agriculture must be mooted as the primary land use in watersheds, specifically in the riparian zone.
Climate Change
Agriculture contributes to over 20 percent of global anthropogenic greenhouse gas emissions. Agricultural intensification has had major detrimental impacts on the terrestrial and aquatic ecosystems of the world. The doubling of production during the last 35 years was associated with a 6.9 fold increase in nitrogen fertilization, 3.5 fold increases in phosphorus fertilization and a 1.7 fold increase in irrigated land. Agriculture is also affected by climate change. An increase in global warming will shift cultivation zones polewards, plant growth and production being jeopardized by changes in the distribution of rainfall, the increase of UV-B radiation, and changes in the chemical composition of the atmosphere. In regions with continental climate, soils are subject to desiccation, meaning climate change will aggravate problems of salinity, erosion, and desertification. Extreme climatic events will occur more frequently. Pests and diseases favoured by a warmer climate will continue to proliferate. All these factors will have negative impacts on agricultural yields 24
Two possible courses of action to alleviate climate change are a) limiting the green house gas emissions and b) enhancing the removal or uptake of these gases from the atmosphere to stabilise the pools of sediments, trees and soil organic matter 25
Organic agriculture not only enables ecosystems to better adjust to the effects of climate change but also offers the potential to reduce the emissions of agricultural greenhouse gases. Moreover, mixed farming and the diversity of organic crop rotations protect the fragile soil surface and may even counteract climate change by restoring the organic matter content.26 Managing soils to increase the stocks of carbon stored as soil organic matter can be expected to reduce the rate of increase in atmospheric CO2 and to improve soil quality, thus resulting in additional benefits beyond greenhouse gas reductions.27
Sri Lanka needs to develop better management practices that could increase carbon sinks, energy efficiency improvements and production of energy from crops and residues. This will result in a further mitigation potential, or cumulative carbon storage. Many long-term experiments in the world support the cognition that organic fertilization (animal manure, green manure, catch and cover crops) rebuild soil organic matter. A 20% increase in soil organic matter as a result of organic agriculture would result in an estimated amount of 9 tonnes carbon per ha. There is a considerable potential increase of soil carbon when manure, straw-recycling, minimal tillage, reforestation and energy-saving plant production are combined.24 This research demonstrates the need to focus on the use of paddy straw and encourage farmers to engage in the cultivation of green manure crops in Sri Lanka.
Nitrous oxide emissions not only contribute severely to the greenhouse effect but also to the depletion of stratospheric ozone. Almost 90% of the global atmospheric N2O is formed during the microbial transformation of nitrate (NO3-) and ammonia (NH4+) in soils and water.24 Of significance is the ‘dry farming’ or Nawa Kekulama method of paddy cultivation as promoted by Mr. G.K. Upawansa. This method uses a mixture of neem seed cake and compost to suppress the action of denitrifying bacteria thereby reducing the loss of NO3 and NH4 from paddy ecosystems. 28
Methane emissions: Agriculture is believed to account for roughly two-thirds of the total man-made CH4 mainly from paddy rice fields, burning of biomass and ruminants (enteric fermentation and animal waste treatment). 26 According to Mr. G.K. Upawansa in a paper delivered to the then Minister of Environment in 2005, “under wetland conditions, large quantities of methane are emitted. Since the Nawa Kekulama method requires limited water resources, methane emission is kept at a bare minimum.” 29 This system of rice production has been demonstrated to generate greater profit per acre than that of conventional rice cultivation. It also uses less water for cultivation.
email: neosynth@sltnet.lk
Modern organic agriculture* in Sri Lanka is coming of age now. According to IFOAM & FiBL (2006), there are 15,215 hectares of land under organic management, with a share of total agricultural land of 0.65% and a presence of around 3,300 organic farms.1 While data from the Export Development Board seems only available till 2000, suffice it to say that up to that time, 15 organizations, both private and non government were responsible for exporting 753 metric tons of organic tea, spices, essential oils, cashew, desiccated coconut, dried fruits, vegetables and herbs valued at S.L. Rs. 543 million.2 Most of these organic products are exported to Europe, Japan and Australia. The organic directory published in 2006 states that the number of registered exporters had since risen to 30, non governmental and farmer organizations number 34, the number of certified estates number 20 and there are 177 independent growers who come under the umbrella of the Department of Export Agriculture.3
The backbone of a vital organic agriculture is the Sri Lankan farmer and those organizations and persons who work with him/her. The organic movement in Sri Lanka started in the 1980s where a group of local NGO representatives, planters, scientists and environmental officers had drafted a Memorandum of Association to create a movement named Lanka Organic Agriculture Movement (LOAM). This can be seen as the official starting point for the dissemination of organic agriculture in Sri Lanka. The primary objectives of LOAM are to promote organic agriculture, to establish, improve and maintain standards for organic agriculture and to create awareness of organic products among the people of Sri Lanka. In 2001 LOAM was registered as an official legal body.1
The Movement has matured in the past six years where in principle, its achievements can be evaluated in the manner in which it has influenced Government policy. LOAM was instrumental in establishing the guidelines for certification in 2006 that were presented to the Ministry of Environment and Natural Resources. In 2007, at the invitation of the Sri Lanka Standards Institute, LOAM played a decisive role in drawing up the Standards for Organic Agriculture in Sri Lanka. LOAM was also a partner to the EU SL Organic Agriculture Project that sought to set up the first National certification company in Sri Lanka. While LOAM members continue to engage in awareness creation and field work on their own accord, the time has come to consolidate their energies in order to face the many challenges ahead. While the Government seems seriously bent on promoting organic agriculture it behoves us at LOAM to set the direction. Looking closely at the issues at hand it seems pertinent to discuss the role that organic agriculture must play in terms of conserving biodiversity, safeguarding water quality and facing up to climate change for instance.
Biodiversity conservation and restoration
Biodiversity provides the foundation of all agriculture.4 The simplification of agro-ecosystems to monoculture production and the removal of non-crop vegetation from the farm unit (e.g. hedgerows, shelter belts and field margins) has contributed to the homogeneity of agricultural landscapes by reducing botanical and structural variation, resulting in both a reduced capacity of agricultural areas to serve as habitat for wild species as well as to effectively internally regulate populations of pests and disease causing organisms which affect crop productivity5,6. This has resulted in a widespread decline in farm species abundance and diversity across many taxonomic groupings, including high rates of wildlife mortality and reduced reproductive success of many species. 7,8,9,10,5,11&12 This loss of biodiversity has also resulted in a reduced capacity of agro-ecosystems to perform many essential ecosystem functions such as purification of water, internal regulation of pests and diseases, carbon sequestration, and degradation of toxic compounds. 13
However, agriculturalists are now aware of the value of the biodiversity "input" for agriculture. The ecological functions of diverse ecosystems (such as balanced predation, pollination, nutrient cycling, degradation of toxic compounds, carbon sequestration) are today recognized to be central to sustainable food production. Moving away from simplified agricultural systems offers opportunities to produce food while enhancing natural landscapes. 14
At the same time, biodiversity in all agro ecosystems should be seen as being comprised of two primary elements: crop biodiversity and systems biodiversity. Crop biodiversity refers to the species present on the farm that will provide direct economic input to the farm. Systems biodiversity is the non crop component of the biodiversity that is required to sustain the agro ecosystem. It is both of these measures that indicate the state of biodiversity in that agro ecosystem. The gain in biodiversity in an agricultural field is directly proportional to a change in the management regime adopted. Therefore the challenge before us is to evolve a system of knowledge that will enable the use of biodiversity data in monitoring and evaluation of organic farming.15 This is important given that the present National Standards for Organic Agriculture in Sri Lanka state that “the presence of biodiversity (soil, surface and aquatic) is an indication of the health of the agro ecosystem.” 16
Over the last century, population, market pressures and the development of new agricultural technologies have encouraged patterns of agricultural development tending towards agricultural intensification (i.e. increasing scales of monoculture production, intensive mechanical tillage, irrigation, and the use of synthetic fertilizer, pest control agents and a restricted diversity of crop and livestock varieties), often leading to natural resources degradation. The majority of the human population increase is expected to take place in the biodiversity-rich developing countries of the tropics like Sri Lanka.14
The Convention on Biological Diversity “encourages the development of technologies and farming practices that not only increase productivity, but also arrest degradation as well as reclaim, rehabilitate, restore and enhance biological diversity and monitor adverse effects on sustainable agricultural diversity. These could include, inter alia, organic farming, integrated pest management, biological control, no-till agriculture, multicropping, intercropping, crop rotation and agricultural forestry” (Decision III/11, 15 e) 17. While several agricultural approaches make sustainability claims, organic agriculture is the only well-defined agricultural management system, including recommended and restricted practices that aim at environmental protection and food production. However, the main challenge in protected areas is to conserve biodiversity while providing the basis for the social and economic development of local residents.14
In the past twenty seven years an alternative system of land management has been developed in Sri Lanka where the landscapes of farm gardens have been designed to include a variety of both annual and tree crops that provide a host of utility benefits like food, medicine, timber, fuelwood, fodder, fibre etc. They are also designed to provide whole forest products and services like water yield, carbon sequestration, biodiversity conservation and phytoremediation. Of specific relevance is that they generate leaf litter and detritus thus facilitating soil biodiversity and building soil organic matter. This technology called analog forestry has proved to be extremely effective in the restoration of degraded land and has been used in the rehabilitation of watersheds, Tsunami affected lands and ground water that has been contaminated by agrochemicals. Analog forestry is a system of land management that seeks to establish a tree dominated ecosystem analogous in architectural structure and ecological function to the original climax or sub climax vegetation community. Analog forestry moves beyond other current agro forestry practices since it includes an explicit focus on the identification and incorporation of biological diversity. In fact the income generation from these forest gardens has been seen to consistently increase in time; 18 they also reduce the risk from the cultivation of a single or few crops since the products can be harvested all year round. This technology has demonstrated that since all crops in these new forests are grown organically, many species of animals and birds that were once confined to the original forest move in and establish populations. 19
Safeguarding water quality
A Report released in 2001 by the American Association for the Advancement of Sciences states that: “should past dependences of the global environmental impacts of agriculture on human population and consumption continue, 109 hectares of natural ecosystems would be converted to agriculture by 2050. This would be accompanied by 2.4 to 2.7-fold increase in nitrogen and phosphorus-driven eutrophication of terrestrial, freshwater, and near-shore marine ecosystems, and comparable increase in pesticide use. Eutrophication and habitat destruction would cause unprecedented ecosystem simplification, loss of ecosystem services, and species extinctions.20 Already in Sri Lanka we are facing problems of the contamination of our rivers, streams and ground water due to nitrogen based fertilizers and other agrochemicals. The impact on human health has revealed a host of kidney related problems, carcinomas and Methemoglobinemia though more research needs to be done. 21, 22 & 23 The need to influence water policy is therefore critical where organic agriculture must be mooted as the primary land use in watersheds, specifically in the riparian zone.
Climate Change
Agriculture contributes to over 20 percent of global anthropogenic greenhouse gas emissions. Agricultural intensification has had major detrimental impacts on the terrestrial and aquatic ecosystems of the world. The doubling of production during the last 35 years was associated with a 6.9 fold increase in nitrogen fertilization, 3.5 fold increases in phosphorus fertilization and a 1.7 fold increase in irrigated land. Agriculture is also affected by climate change. An increase in global warming will shift cultivation zones polewards, plant growth and production being jeopardized by changes in the distribution of rainfall, the increase of UV-B radiation, and changes in the chemical composition of the atmosphere. In regions with continental climate, soils are subject to desiccation, meaning climate change will aggravate problems of salinity, erosion, and desertification. Extreme climatic events will occur more frequently. Pests and diseases favoured by a warmer climate will continue to proliferate. All these factors will have negative impacts on agricultural yields 24
Two possible courses of action to alleviate climate change are a) limiting the green house gas emissions and b) enhancing the removal or uptake of these gases from the atmosphere to stabilise the pools of sediments, trees and soil organic matter 25
Organic agriculture not only enables ecosystems to better adjust to the effects of climate change but also offers the potential to reduce the emissions of agricultural greenhouse gases. Moreover, mixed farming and the diversity of organic crop rotations protect the fragile soil surface and may even counteract climate change by restoring the organic matter content.26 Managing soils to increase the stocks of carbon stored as soil organic matter can be expected to reduce the rate of increase in atmospheric CO2 and to improve soil quality, thus resulting in additional benefits beyond greenhouse gas reductions.27
Sri Lanka needs to develop better management practices that could increase carbon sinks, energy efficiency improvements and production of energy from crops and residues. This will result in a further mitigation potential, or cumulative carbon storage. Many long-term experiments in the world support the cognition that organic fertilization (animal manure, green manure, catch and cover crops) rebuild soil organic matter. A 20% increase in soil organic matter as a result of organic agriculture would result in an estimated amount of 9 tonnes carbon per ha. There is a considerable potential increase of soil carbon when manure, straw-recycling, minimal tillage, reforestation and energy-saving plant production are combined.24 This research demonstrates the need to focus on the use of paddy straw and encourage farmers to engage in the cultivation of green manure crops in Sri Lanka.
Nitrous oxide emissions not only contribute severely to the greenhouse effect but also to the depletion of stratospheric ozone. Almost 90% of the global atmospheric N2O is formed during the microbial transformation of nitrate (NO3-) and ammonia (NH4+) in soils and water.24 Of significance is the ‘dry farming’ or Nawa Kekulama method of paddy cultivation as promoted by Mr. G.K. Upawansa. This method uses a mixture of neem seed cake and compost to suppress the action of denitrifying bacteria thereby reducing the loss of NO3 and NH4 from paddy ecosystems. 28
Methane emissions: Agriculture is believed to account for roughly two-thirds of the total man-made CH4 mainly from paddy rice fields, burning of biomass and ruminants (enteric fermentation and animal waste treatment). 26 According to Mr. G.K. Upawansa in a paper delivered to the then Minister of Environment in 2005, “under wetland conditions, large quantities of methane are emitted. Since the Nawa Kekulama method requires limited water resources, methane emission is kept at a bare minimum.” 29 This system of rice production has been demonstrated to generate greater profit per acre than that of conventional rice cultivation. It also uses less water for cultivation.
Sri lankan floriculture industry
Typically, floriculture is defined as Science and practice of growing, harvesting, storing, designing, marketing of cut flowers, potted flowering plants, foliage plants, bedding and garden plants, cut cultivated greens and propagative materials.
The floral industry is one of the major industries in many developing and underdeveloped countries. The present day floral industry is a dynamic, global, fast-growing industry, which has achieved significant growth rates during the past few decades. In the 1950s, the global flower trade was less than US$3 billion. By 1992, it had grown to US$100 billion. In recent years, the floral industry has grown six percent annually, while the global trade volume in 2003 was US$101.84 billion.
Traditionally, the center of flower production has been near their largest consumers: the developed world, where Japan, Western Europe and North America were both major producers and consumers. The major consumer markets being Germany (22 percent), the United States (15 percent), France (10 percent), the United Kingdom (10 percent), the Netherlands (9 percent), Japan (6 percent), Italy (5 percent), and Switzerland (5 percent).
The floriculture industry in Sri Lanka started around 23 years ago and was a very small industry with just a few companies. Today it is a very significant industry, touching close upon one billion rupees on exports last year. There are 3500-4000 people directly involved in the industry. While the floriculture industry was not taken very seriously for some time, its contribution to the economy was highlighted in last year’s budget.
There is a huge growth potential for this industry in Sri Lanka. If this potential is fully met, the turnover can be doubled. The industry's global growth rate is about 15 per cent annually but in Sri Lanka it has been 4-5 per cent over the last few years.
Flowers are mentioned in the social fabric of our country and no function is complete without flowers. Also it is a important industry which earning foreign money through the exporting
Currently it is a growing industry in Sri Lanka. It is growing at an annual growth rate of 10% per annum. And also this industry becoming a profitable agri business in Sri Lanka.
There is a demand for floricultural products locally (weddings, ceremonies, social events etc…). but main target is to export. Therefore Sri Lanka produces wide range of floricultural products including cut flowers (fresh or dried), cut foliage, potted plants, bedding plants and planting materials. These products are mainly export to three destinations are Asian Market (40%), European Market (44%) & Middle east Market (13%)
There are lot of floricultural plants species are grown in commercial level as well as in home garden level. Attempt of preparing this floriculture album is to identify several floricultural plants by morphologically, taxonomically and charactifically.
The floral industry is one of the major industries in many developing and underdeveloped countries. The present day floral industry is a dynamic, global, fast-growing industry, which has achieved significant growth rates during the past few decades. In the 1950s, the global flower trade was less than US$3 billion. By 1992, it had grown to US$100 billion. In recent years, the floral industry has grown six percent annually, while the global trade volume in 2003 was US$101.84 billion.
Traditionally, the center of flower production has been near their largest consumers: the developed world, where Japan, Western Europe and North America were both major producers and consumers. The major consumer markets being Germany (22 percent), the United States (15 percent), France (10 percent), the United Kingdom (10 percent), the Netherlands (9 percent), Japan (6 percent), Italy (5 percent), and Switzerland (5 percent).
The floriculture industry in Sri Lanka started around 23 years ago and was a very small industry with just a few companies. Today it is a very significant industry, touching close upon one billion rupees on exports last year. There are 3500-4000 people directly involved in the industry. While the floriculture industry was not taken very seriously for some time, its contribution to the economy was highlighted in last year’s budget.
There is a huge growth potential for this industry in Sri Lanka. If this potential is fully met, the turnover can be doubled. The industry's global growth rate is about 15 per cent annually but in Sri Lanka it has been 4-5 per cent over the last few years.
Flowers are mentioned in the social fabric of our country and no function is complete without flowers. Also it is a important industry which earning foreign money through the exporting
Currently it is a growing industry in Sri Lanka. It is growing at an annual growth rate of 10% per annum. And also this industry becoming a profitable agri business in Sri Lanka.
There is a demand for floricultural products locally (weddings, ceremonies, social events etc…). but main target is to export. Therefore Sri Lanka produces wide range of floricultural products including cut flowers (fresh or dried), cut foliage, potted plants, bedding plants and planting materials. These products are mainly export to three destinations are Asian Market (40%), European Market (44%) & Middle east Market (13%)
There are lot of floricultural plants species are grown in commercial level as well as in home garden level. Attempt of preparing this floriculture album is to identify several floricultural plants by morphologically, taxonomically and charactifically.
Sunday, June 27, 2010
IMPORTANCE OF QUALITY CERTIFICATION & VALUE ADDITION IN SRI LANKA EXPORT AGRICULTURE CROP SECTOR TO TAP THE OPTIMUM POTENTIAL IN GLOBAL MARKET
Sri Lanka has a Small domestic market and resource base force, the economy highly depend on foreign trade, export and import. In 2008 export and import represented 25% and38% of the GDP respectively. Therefore, development of the economy is mostly depending on foreign trade, particularly exports. In 2008 our total export is US $ 8,137 million. Main export products are Tea, Rubber and Rubber products, Coconut and Coconut based products, Fruits and Vegetables, Spices, main export markets are U.S.A, U.K, Italy, India, Belgium, Germany, United Arab Emirates, Russian Federation, France and Japan.
Understanding importance of development of exports, to achieve the country’s economic development objectives, institutional infrastructure for development of exports has been established during the last two decades. At present it consists of number of institutions, some are sector specific and others are general. Sri Lanka Export Development Board is the premier national TPO. Sector specific institutions are Sri Lanka Tea Board, Coconut Marketing Board, and Department of Export Agriculture. In addition to that Chambers and Exporters’ Associations are also doing Trade Promotion activities.
Sri Lanka exports wide range of agricultural products such as fruits, nuts, vegetables, cereals, spices, medicinal herbs, floricultural products etc. In world scenario most agricultural products, raw materials are supplied by developing countries while processing and packaging industries are owned by developed countries. By this these countries could obtain higher profit. To get this achievement they have two economic advantages which the producing countries do not have. They are technological advantages and marketing advantages.
This has become a big challenge for many developing countries like Sri Lanka, as agriculture is the basis of sustainable economic development. Sri Lanka has to face this challenge due to lack of technological and marketing advantages. Due to high cost of machineries Sri Lanka is far away from modern technology. On the other hand we are not able to reach quality standards which are accepted by global market with our poor quality processing facilities.
When considering Sri Lankan Export agricultural crop sector, it is a very important sector in national income generation process. Through this crop products country invade lot of foreign markets (especially European countries) finding income. In here Sri Lankan products have to face two consider mainly,
• How to compete with other producing countries like India, Vietnam etc.
• How to penetrate consumer mind attractively
Quality certification and value addition are the potential opportunities to overcome these two problems. Through the quality certification foreign consumers tend to buy our products without hesitate. And also to maintain best quality for our products, quality certification is must. And also recent market trends towards the many value added commodities. There for have a great potential to tap global market through the value addition. Thus through the value addition and quality certification Sri Lankan export crop products can intercept considerable portion from the increasing demand in foreign markets defeating other competing countries.
Quality certification
Quality assurance, or QA for short, is the set of planned and systematic actions necessary to provide appropriate confidence that a product will satisfy the requirements for quality.
Quality assurance applies to all forms of products and services. These protocols introduced the rules: "fit for purpose" and "do it right the first time". It includes the regulation of the quality of raw materials, assemblies, products and components; services related to production; and management, production, and inspection processes to survive in the competitive market, and for which it is essential to satisfy the customer by providing products with zero defects.
This also leads to increased productivity, reduced quality cost and eventually increased sales and market profits.
Benefits of quality certification
• Internationally recognized scheme which incorporates a facility to identify international market.
• Provide consumers an assurance of safety, quality and reliability.
• Provide consumer confidence that products meet and continue to meet the relevant standards
Available quality certifications
1. Good Manufacturing Practices Certification (GMP)
SLSI operates a GMP Certification Scheme to the food industry and services based on the Sri Lanka Standard on Code of practice for general principles of food hygiene. In case where a Sri Lanka Standard on code of practice for the industry or service concerned is available, that specific standard is also considered for granting certification in addition to SLS standards. Regular post certification inspections will be arranged by the SLSI to assess the effectiveness of GM practices.
2. ISO 14001: 2004
(EMS – Environmental Management System)
ISO 14001 Environmental Management System certification is a part of the overall management system which includes organisational structure, planning activities, responsibilities, procedures, processes & resources for developing, implementing, achieving, reviewing & maintaining the environmental policy.The ISO 14000 Environmental Management Standards exist to help organisations minimise how their operations negatively affect the environment (cause adverse changes to air, water or land) and comply with applicable laws and regulations.ISO 14001 is the international specification for an environmental management system (EMS). It specifies requirements for establishing an environmental policy, determining environmental aspects and impacts of products/activities/services, planning environmental objectives and measurable targets, implementation and operation of programmes to meet objectives and targets, checking and corrective action, and management review.
3. ISO 9001: 2000
Quality Management System
ISO 9000 is a family of standards for quality management systems. ISO 9000 is maintained by ISO, the International Organization for Standardization and is administered by accreditation and certification bodies. Some of the requirements in ISO 9001 (which is one of the standards in the ISO 9000 family) include,
• a set of procedures that cover all key processes in the business
• monitoring processes to ensure they are effective
• keeping adequate records
• checking output for defects, with appropriate and corrective action where necessary
• regularly reviewing individual processes and the quality system itself for effectiveness
• facilitating continual improvement.
4. HACCP(Hazard Analysis at Critical Control Point)
The governments & association of industries in most developed countries has approved industry strand, which require strict management control for buying products as row form. Because of that when export the EAC products this certificate is most impotent so EAC products export as row form. HACCP quality certification evaluate the agro chemical usage such as pesticide, insecticide, weedicide & minimize the trace element level which adversely effect to human. Further they consider the proper harvesting, processing, packaging, storage, level of extraneous materials. If the EAC product has this certificate it has the high demand in global market.
5. SPS(Sanitary and Phytosaitory Standard)
This standard refers the quality of the processing of Export Agricultural Crops and the acceptable strand in packaging. Further it refers the minimum or no usage of agro chemical. If the EAC product has this SPS certificate it has the good demand in global market.
6. Sri Lanka Standards (SLS)
Sri Lanka Standards Institution (SLSI) is the National Standards Body of Sri Lanka, established under the Bureau of Ceylon Standards Act No. 38 of 1964. The institution provides training on standardization and quality management for personnel in the industry with a view to impart the knowledge required for producing good quality products and services. The standards prepared by SLSI are mostly for products and processes. They describe the officially recognized levels of quality, safety requirements, durability, and performance requirements of products and services that are appropriate for the Sri Lanka market. After the certification by SLSI grant to use the SLS mark on the product label.
Value addition
"Value added" means adding value to a raw product by taking it to, at least, the next stage of production.Value addition is an most important area in the development of the export agriculture industry due to the potential of employment generation and increasing forign exchange earning.
The value addition helps to decrease the post harvest losses in EAC. When the production of value added products from the row forms the losses are minimum due to the long storage ability of that product.In addition the value addition helps to increase the demand in global market.Further value added products can be sold higher price than row form.To take advantage of value-added opportunities, one must know and understand customers. What consumer segments might want your product? What are the benefits desired by these potential customers? What criteria are they looking for when purchasing?.
Any business enterprise can be thought of as a value chain. Each activity that is performed should add value to the product. To do this, one must meticulously control the activities at each step in the value chain: procurement of inputs; converting inputs into products; marketing and sales; supply chain logistics; and customer service activities. A new value-added business should focus on the product's uniqueness. The uniqueness of your product or service is what ultimately attracts customers.
however, the sector is facing the following issues and challenges in this area
1) The main issue is the regular supply of export agriculture products in the country. The amount is also small so that the advantage of economy of scale is lost for investors in value addition.
2) New technology for value addition is seriously lacking in the country.
3) Cost of production is high.
In addition to that, by considering available competition in the global market, further processing is needed to produce value added products to tap the optimal potential in global market.Government intervention to solve this problem is very much needed. Because value addition plays an important role in the global market
Some of Sri Lankan Value-Added Export Agricultural Products
Vanilla
• Vanilla flavored tea,
• Vanilla paste,
• Vanilla sugar,
• Vanilla bee honey,
• Organic vanilla beans,
• Vanilla virgin coconut oil
Cocoa
• Cocoa butter
• Cocoa powder
• Cocoa liquor
Cinnamon
• Cinnamon bark oil
• Cinnamon leaf oil
• Cinnamon root oil
Tea
• Flavored tea
• Tea bags
• Tea liquor
• Tea gift boxes
Coconut
• Desiccated coconut
• Coconut cream
• Virgin coconut oil
References
• www.lankaemb-egypt.com/SriLanka/products.htm
• www.srilankabusiness.com/trade_info/srilankaproduct/coconut.htm
• www.lankanewspapers.com/news/2009/5/43852.html
Understanding importance of development of exports, to achieve the country’s economic development objectives, institutional infrastructure for development of exports has been established during the last two decades. At present it consists of number of institutions, some are sector specific and others are general. Sri Lanka Export Development Board is the premier national TPO. Sector specific institutions are Sri Lanka Tea Board, Coconut Marketing Board, and Department of Export Agriculture. In addition to that Chambers and Exporters’ Associations are also doing Trade Promotion activities.
Sri Lanka exports wide range of agricultural products such as fruits, nuts, vegetables, cereals, spices, medicinal herbs, floricultural products etc. In world scenario most agricultural products, raw materials are supplied by developing countries while processing and packaging industries are owned by developed countries. By this these countries could obtain higher profit. To get this achievement they have two economic advantages which the producing countries do not have. They are technological advantages and marketing advantages.
This has become a big challenge for many developing countries like Sri Lanka, as agriculture is the basis of sustainable economic development. Sri Lanka has to face this challenge due to lack of technological and marketing advantages. Due to high cost of machineries Sri Lanka is far away from modern technology. On the other hand we are not able to reach quality standards which are accepted by global market with our poor quality processing facilities.
When considering Sri Lankan Export agricultural crop sector, it is a very important sector in national income generation process. Through this crop products country invade lot of foreign markets (especially European countries) finding income. In here Sri Lankan products have to face two consider mainly,
• How to compete with other producing countries like India, Vietnam etc.
• How to penetrate consumer mind attractively
Quality certification and value addition are the potential opportunities to overcome these two problems. Through the quality certification foreign consumers tend to buy our products without hesitate. And also to maintain best quality for our products, quality certification is must. And also recent market trends towards the many value added commodities. There for have a great potential to tap global market through the value addition. Thus through the value addition and quality certification Sri Lankan export crop products can intercept considerable portion from the increasing demand in foreign markets defeating other competing countries.
Quality certification
Quality assurance, or QA for short, is the set of planned and systematic actions necessary to provide appropriate confidence that a product will satisfy the requirements for quality.
Quality assurance applies to all forms of products and services. These protocols introduced the rules: "fit for purpose" and "do it right the first time". It includes the regulation of the quality of raw materials, assemblies, products and components; services related to production; and management, production, and inspection processes to survive in the competitive market, and for which it is essential to satisfy the customer by providing products with zero defects.
This also leads to increased productivity, reduced quality cost and eventually increased sales and market profits.
Benefits of quality certification
• Internationally recognized scheme which incorporates a facility to identify international market.
• Provide consumers an assurance of safety, quality and reliability.
• Provide consumer confidence that products meet and continue to meet the relevant standards
Available quality certifications
1. Good Manufacturing Practices Certification (GMP)
SLSI operates a GMP Certification Scheme to the food industry and services based on the Sri Lanka Standard on Code of practice for general principles of food hygiene. In case where a Sri Lanka Standard on code of practice for the industry or service concerned is available, that specific standard is also considered for granting certification in addition to SLS standards. Regular post certification inspections will be arranged by the SLSI to assess the effectiveness of GM practices.
2. ISO 14001: 2004
(EMS – Environmental Management System)
ISO 14001 Environmental Management System certification is a part of the overall management system which includes organisational structure, planning activities, responsibilities, procedures, processes & resources for developing, implementing, achieving, reviewing & maintaining the environmental policy.The ISO 14000 Environmental Management Standards exist to help organisations minimise how their operations negatively affect the environment (cause adverse changes to air, water or land) and comply with applicable laws and regulations.ISO 14001 is the international specification for an environmental management system (EMS). It specifies requirements for establishing an environmental policy, determining environmental aspects and impacts of products/activities/services, planning environmental objectives and measurable targets, implementation and operation of programmes to meet objectives and targets, checking and corrective action, and management review.
3. ISO 9001: 2000
Quality Management System
ISO 9000 is a family of standards for quality management systems. ISO 9000 is maintained by ISO, the International Organization for Standardization and is administered by accreditation and certification bodies. Some of the requirements in ISO 9001 (which is one of the standards in the ISO 9000 family) include,
• a set of procedures that cover all key processes in the business
• monitoring processes to ensure they are effective
• keeping adequate records
• checking output for defects, with appropriate and corrective action where necessary
• regularly reviewing individual processes and the quality system itself for effectiveness
• facilitating continual improvement.
4. HACCP(Hazard Analysis at Critical Control Point)
The governments & association of industries in most developed countries has approved industry strand, which require strict management control for buying products as row form. Because of that when export the EAC products this certificate is most impotent so EAC products export as row form. HACCP quality certification evaluate the agro chemical usage such as pesticide, insecticide, weedicide & minimize the trace element level which adversely effect to human. Further they consider the proper harvesting, processing, packaging, storage, level of extraneous materials. If the EAC product has this certificate it has the high demand in global market.
5. SPS(Sanitary and Phytosaitory Standard)
This standard refers the quality of the processing of Export Agricultural Crops and the acceptable strand in packaging. Further it refers the minimum or no usage of agro chemical. If the EAC product has this SPS certificate it has the good demand in global market.
6. Sri Lanka Standards (SLS)
Sri Lanka Standards Institution (SLSI) is the National Standards Body of Sri Lanka, established under the Bureau of Ceylon Standards Act No. 38 of 1964. The institution provides training on standardization and quality management for personnel in the industry with a view to impart the knowledge required for producing good quality products and services. The standards prepared by SLSI are mostly for products and processes. They describe the officially recognized levels of quality, safety requirements, durability, and performance requirements of products and services that are appropriate for the Sri Lanka market. After the certification by SLSI grant to use the SLS mark on the product label.
Value addition
"Value added" means adding value to a raw product by taking it to, at least, the next stage of production.Value addition is an most important area in the development of the export agriculture industry due to the potential of employment generation and increasing forign exchange earning.
The value addition helps to decrease the post harvest losses in EAC. When the production of value added products from the row forms the losses are minimum due to the long storage ability of that product.In addition the value addition helps to increase the demand in global market.Further value added products can be sold higher price than row form.To take advantage of value-added opportunities, one must know and understand customers. What consumer segments might want your product? What are the benefits desired by these potential customers? What criteria are they looking for when purchasing?.
Any business enterprise can be thought of as a value chain. Each activity that is performed should add value to the product. To do this, one must meticulously control the activities at each step in the value chain: procurement of inputs; converting inputs into products; marketing and sales; supply chain logistics; and customer service activities. A new value-added business should focus on the product's uniqueness. The uniqueness of your product or service is what ultimately attracts customers.
however, the sector is facing the following issues and challenges in this area
1) The main issue is the regular supply of export agriculture products in the country. The amount is also small so that the advantage of economy of scale is lost for investors in value addition.
2) New technology for value addition is seriously lacking in the country.
3) Cost of production is high.
In addition to that, by considering available competition in the global market, further processing is needed to produce value added products to tap the optimal potential in global market.Government intervention to solve this problem is very much needed. Because value addition plays an important role in the global market
Some of Sri Lankan Value-Added Export Agricultural Products
Vanilla
• Vanilla flavored tea,
• Vanilla paste,
• Vanilla sugar,
• Vanilla bee honey,
• Organic vanilla beans,
• Vanilla virgin coconut oil
Cocoa
• Cocoa butter
• Cocoa powder
• Cocoa liquor
Cinnamon
• Cinnamon bark oil
• Cinnamon leaf oil
• Cinnamon root oil
Tea
• Flavored tea
• Tea bags
• Tea liquor
• Tea gift boxes
Coconut
• Desiccated coconut
• Coconut cream
• Virgin coconut oil
References
• www.lankaemb-egypt.com/SriLanka/products.htm
• www.srilankabusiness.com/trade_info/srilankaproduct/coconut.htm
• www.lankanewspapers.com/news/2009/5/43852.html
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