China and New Zealand Ink Signs New agreement on Organic Standards

China: The new bilateral agreement between the two countries will be beneficial for organic producers as well as exporters. Organic sector in both the countries will experience growth not only in export and import but there will be diversified range of organic product available for processed foods that would be available for sale domestically and internationally.

New Zealand exports of organic products and ingredients to China has been witnessing robust growth this is due to reduction in compliances costs under the agreement between two countries. Mutually, consumers in New Zealand have increase their confidence in organic food imported from China due to certified organic product quality and taste.

According to TechSci Research, the increasing demand for the organic food and multiple certifications have become a hindrance for exporters and importers. The exporting country also has its own certification standards and thus, organic food manufacturers have to secure dual certifications, which poses a challenge of getting food certified both in the home country as well as in the exporting country. Furthermore, the demand of organic food and beverages across the globe is increasing, due to various health benefits associated with it and consequently organic agriculture system is gaining popularity throughout the world. This is leading to a tremendous growth in the imports and exports across the countries. The Agreement between both the countries will boost the trade and consumer confidence in organic product.

According to a recent report published by TechSci Research, “Global Organic Food Market Forecast and Opportunities, 2011 – 2021”, global market for organic food is projected to grow at a CAGR of over 14% during 2016-2021, on account of high demand for organic food in retail stores, restaurants, schools and office cafeterias. Europe dominated demand for organic food across the globe and the region is projected to continue dominating the market through 2021. Further, organic fruits & vegetables dominated global organic food market, due to high content of protective antioxidants, less pesticide residue and low level of toxic chemicals in organically cultivated fruits & vegetables. White Wave Foods, Hain Celestial, General Mills, UNFI, Sprouts Farmers Market and Edeka Group are few of the major players operating in global organic food market.