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Economics of organic agriculture

"Registration of farms and companies"

 

Eng. Ahmed Taha

Former Agricultural Advisor

Care International in Egypt

 

The main objective of organic agriculture is contributing to improving and strengthening sustainable development, where it means an Inexpensive tool to sustainable development, as well as free of any side effects may lead to environmental damage is cumulative. Particular to reduce agricultural environment pollution problems resulting from the increasing use of chemical fertilizers and pesticides, and this had led to widespread interest in most of International institutions and governmental and nongovernmental in most countries of the world need to confront this environmental degradation, which had led to the emergence a new culture in human thought which is an environmental education, and strengthening legislation in most countries worldwide.

 

Under the environmental education, and as a necessary and logical result for the liberalization of international trade, increased the trend toward creating a unified standard system for the international standards for quality products, which encourage access to higher efficiency in production, trade facilitation and transparency of the market, to serve Achievement objectives of the policies of public health, food safety, and environmental protection.

 

There are legislations and regulations organized the production and organic products trading of worldwide allows exploration of this promising market, the licensing and certification of organic products, is the only way to ensure accuracy and confidence in organic production methods within the farm, through different production processes, what is the protection of both the consumer and the producer, importer, exporter, and so the producer organic product cannot enter organic market  without a license certificate, accredit formally proof his produced according to organic standards, which are subject to inspection and control by control body certifying organic production, and governed by an international organization and codified laws and Government policies supported.

 

May differ the production laws regulating and trade of organic products from the farm to another, but without amendment on the general framework organized them according to agreed international standards. The EU law No. 2092/1991 and amended to 834 of 2007, the most important laws and regulations organize the process, production, and trade of organic products, where this law has been developed by the Council of the European Community in order to protect the environment, consumer protection, prevent commercial fraud and deception higher prices of some products, so is the most important laws organize the production and trade of organic products worldwide and internationally recognized, and all developing countries through trade with the EU. This law includes all various organizational aspects associated with the production, management and organic products trade worldwide, requirements and conditions inspection systems on organic production farms, and quality marks for product and terms, and conditions of organic products trade with developing countries.

 

This was reflected in the increasing global awareness about environmental and health requirements, leading to growing global demand for organic agricultural products with an estimated market size foods organic methods (without using any chemical industrial) with over $ 20 billion, according to recent reports of the International Federation of organic agriculture.

 

Costs and revenues of organic farm

 

 

Registration, between the company and farms

Often, the companies owners which dealing in export crops and agricultural products not registered farms, because these companies must obtain accreditation exports from a company approved for registration and continue producing these issuers by accredit organizations and inspection, this beside if such companies have farms, must be organically also registered (as producer), but often we find that these companies have farms, the production of these farms does not meet the requirements of the plan of annual export of required quantities of crops for export, so they resort to rent farms residents to meet quantities, and register them, but this has advantages and disadvantages for the company and farms summarized below:

 

● Company's advantages:

 1- Availability of export crops, making the company meets its needs and this reflected the 
    increasing confidence of importing external company.

 2- Increase the selected area of quality crops and thus increase the quality of export
     specifications.

 3- Multiple types of export crops due to weather conditions from region to region within the
     country (Upper Egypt / Delta).

 4- Length of the season for some crops and in different weather conditions from region to
     region

 

● Defects of the company:

1- Fear of lack of non commitment of some farmers to supply the contracted quantities
    (farmer sells crop to who pay more)

2- Fears the non obligation of farmers applying organic farming practices on their farms.

 

● Advantages of farmer:

 1- Ensure the marketing of the crop.

 2- Does not pay the cost of registration, (the company does it).

 3- His farm registered as a membership on European Union and has an accreditation
     number.

 4- His land is Free of any diseases caused by applying incorrect agricultural practices.

 

● Disadvantages of farmer:

1- Work with one company and there are no multiple sources of marketing.

2- Little crop production in the first season of transition to organic agriculture.

 

 

Barriers to his ranch farm registration itself:

First of all we must recognize that the nature or composition of farmers which they knew it and depend on since the revolution to now, and a law of the land reform Act (which applied erroneously), that made the farmer lasting dependency on Government supplied (agricultural associations, agricultural cooperation), and not be as risky, and not accept new agriculture easily, due to the small possession of farmland which averse to everything new.

This produced some constraints for registered land organically, without any support of companies as recourse, we can summarize it as follow:

 

1- Small land tenure.

2- High monetary value of the registry (most control bodies companies in Egypt are foreign
    and they dealing with a foreign currency)

3- Observance of certain crops (not all crops can be grown organically)

4- Farmer relies on his land in providing domestic needs (wheat for bread & clover for feeding
    livestock)

5- Difficulty marketed for organic products in the Egyptian market.

 

We must look to small farmers as the core of the agricultural economy in Egypt, we must look for the approaches that we can convince him to change and accept all new in agriculture (each day, there is new in agriculture worldwide, we classify as a developing country, knowing that we are primarily an agricultural country, agriculture is one of the tools to assess States), to achieve this there are some suggestions that could help to overcome these constraints:

 

1- Collection of small-scale farmers holders in agricultural entities (Association or network or
    Federation),
through these entities, there is less risk to small farmers, and less of the
    monetary value of the registry, and these entities can export themselves without
   depending on any company, this will done by providing technical support to them as a
   database for importing firms in additional training on communication with external importers
   and productive activities of that entity well.

2- Dealing with big farmers in the region as a senior leadership role models, such as those
   farmers who cultivated them engage with the new addition to the entry of such farmers in
   new experiment gives confidence to small farmers.

3- Implementation of field visits to farms which are applying organic practices and conduct
    interviews with farmers. (Farmer to Farmer), because it is known that the Egyptian farmer
    not applies the new only to see models already.

4- Provide technical support to the constituent entities and not leaving their farmers applying
    new practices separately, because this would apostasy in case of any problems they may
    have, and this is will done by building technicians in the agricultural communities to
    provide this support.

5- Cash support to entities establishing for limited period, this cash support will be as paid a
    half of the registry value, and there is not a monetary support for input, because this
    returns us to the era of agrarian reform once again (taking into account to canceling that
    cash support gradually).

 

It turns out that targeted action in organic agriculture in order to promote agricultural sector were farmers (senior and junior), not companies, because the companies have the potential to get information, scientific progress in agriculture, as evidenced by an Industry Modified Center (IMC) and Industry Training Council (ITC) which provide technical and financial support to companies, not farmers, as already pointed out that the farmer is the core of the advancement of agricultural area, so lifting capacities and potential to be an effective instrument in this area.

 

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