W I N T E R 2021
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30 | Interview
Synonym for sustainability Kęstutis Juščius, CEO of Auga Group
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Straight from nature
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Mix your Baltic taste
26 | COV E R S TO RY
Hidden Champions of Organic Farming
26 | C O V E R S TO RY
Photo: Matīss Markovskis
by GUSTAVS NORK ĀRKLIS HE A D OF THE A SSOCIATION OF L AT VIA N ORG A NIC AGRICULTURE
Hidden Champions of Organic Farming
t
here is still great potential for organic food in the Baltics and it is gratifying that the willingness among farmers to switch to growing and producing organic food is quite high. Unfortunately, in recent years the transition to organic farming has stagnated due to a lack of funding. The structure of the organic food market in all three Baltic states has developed convincingly. The most stable and long-lasting sector in organic food production here is dairy farming. Meat production live-stock farming and grain farming are also developing well. The weaker chain is the growing of fruit and vegetables,
but in recent years growth can also be observed in this area. The free niches with great potential are organic poultry farming and egg production, but organic pork farming can be considered an entirely vacant niche, as there are only a few companies operating at a professional level in this field.
The origins can be traced back to Germany
When comparing the organic production of all three Baltic states, Estonia stands out slightly, as the segment of home producers there has developed more successfully, focusing more on innovative
products, although there are also companies operating in classic industries such as live-stock farming and grain farming. In Lithuania, grain farming has developed at a higher level in recent years. In the Baltics the top position in terms of organically managed areas is held by Estonians according to percentage value, but Latvia is the leader in many areas of organic farming. It is interesting that the first forms of organic farming in Latvia emerged 30 years ago during Soviet times, thanks to the initiative and interest demonstrated by the Germans. They came here, accompanied then by the KGB, to talk about organic farming
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and to establish the biodynamic movement. It can be said that in Latvia the processing of organic food began to develop rapidly in around 2010-2012, and the development still continues. If in 2010, there were two organic milk processing companies in Latvia, now there are already well over ten. A similar trend can be observed in grain farming. Latvia also has one of the largest production plants of organic potato starch in the world – Aloja Starkelsen.
Challenges and risks
Interest in the organic food sector is now especially huge, but back in 2010 many still looked at the industry with great scepticism, considering it to be nonsense. However, the market situation is forcing the processing companies to change, as the greatest demand can be observed for exactly organic food, and its share in the market is growing worldwide. Also, the direct trade of organic food is very well developed, and it is used by people who are willing to make the least impact on the environment by buying high-quality, clean food without intermediaries. Over the last five years various direct buying groups and also markets of organic goods have grown in popularity. Basically, the opportunities to buy organic food in the Baltics are vast and in terms of price it is not particularly more expensive; however, if a person is accustomed to the convenience of grabbing semi-processed food at the supermarket, then the choice may not seem so vast. However the supply of organic food is also growing in this area. Currently the amount of organic food in supermarkets is growing by several hundreds of percent every year, and this is a common trend in Europe and worldwide. It is frightening, as the economy is not familiar with constant rapid growth. This calls for caution, as there have already been separate cases in Europe of organic food overproduction.
We are concerned about third world countries such as Russia, Ukraine, Kazakhstan, which are large food producers and have recently transferred very convincingly to the organic food sector. This means that we will have to think about how to compete with these countries, which have large and fertile land resources and can therefore offer lower prices, or we will have to think about how to provide greater protection of the internal European market, as this is not a problem just in the Baltics, but a problem of a European scale. The risk of pollution is high, but the problem is that precaution must be observed by organic farmers. It should be the other way around – the polluter should create some kind of protective zone. It is also a common European problem, particularly visible in beekeeping. We have a very high proportion of organic honey in the Baltics, but the areas where bees can harvest safely without the presence of pesticides, are shrinking more and more. Organic beekeepers feel very vulnerable here, as particular industrial farmers may even receive EU support payments for their polluting activities. Thus, beekeeping serves as a litmus paper that demonstrates the common agricultural policy and its faulty course. It is easy for us to increase organically managed areas in the Baltics to 25%, as required by the EU. We can increase them by as much as 30% by 2030, but the thinking of politicians needs to change fundamentally, which is particularly distorted when it comes to the policy of subsidies.
At least 50% for export
The main export countries for Baltic organic food, especially grain products, are Europe and especially Germany. Milk will definitely become an export product in time, but, for example, the production of Preiļi
siers is exported to the Asian market, the production of Tukuma piens is sold in the United Arab Emirates and the large food processors themselves admit that the only way to develop is to operate in the organic food segment, which is demanded. Meat production live-stock farming is developing, as 99% of the cattle bred here are exported, and honey is also exported in large amounts, the same as grain. We are producers of raw materials, as locally we are not even consuming half of what is produced. Organic growers and producers are particularly active in the field of innovations. Sea buckthorn, blackcurrant, potato starch, pea and bean flour are products that currently hold the leading positions in the field of innovations. Innovations that could be offered in the dairy segment should be examined. Our development in growing Southern plants is also positive – due to climate change watermelons, grapes, soybeans, as well as naked-seeded pumpkins can now be grown not only in the south of Germany, but also in the Baltics. One might say – why should wine be produced in the Baltics, if there are wine countries such as France, Italy and also Germany? But the berries grown in our climate zone are richer in antioxidants and vitamins, thanks to the geographical conditions. We can also produce very good cider, as the example of Naukšēni proves. And birch water, along with wine and champagne made from it, should be mentioned! Buckwheat is a traditional dish in this region, but its value is gradually also being recognised in Western Europe. Likewise, kefir and cottage cheese, that are our traditional and healthy products, may also look innovative in the cuisines of other countries. Therefore, what we take for granted can be innovative, if we look at it from a different point of view.
28 | C O V E R S TO RY
Organic Baltics Land use in organic agriculture (ha) Estonia
Latvia
Organic shares of total agricultural land (%)
Lithuania
Estonia
280 383
21,6
239 691
206 590
total organic agricultural land
148 677
141 428
109 335
Latvia
15,4 arable land crops
5 989 2 877
2 449
permanent crops
94 806
Lithuania
8,3
136 078
Average in the European Union 7,5
85 024
permanent grassland
10 years growth of organic agricultural land (2008-2018)
117,1%
(+111 423 ha)
75%
(+120 208 ha)
85,7%
1 year growth of organic agricultural land (2017-2018)
(+110 636 ha)
5,2%
Estonia
Latvia
Lithuania
4,3%
2,4%
+10 149 ha
+11 513 ha
+5557 ha
Estonia
Latvia
Lithuania
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Organic produce Cereals, organic area (ha)
Organic market 45591
Organic producers and other operator types
1948
4178
Estonia
Latvia
Lithuania
Organic livestock
2476
95428
Dry pulses, organic area (ha)
9526
9659
29755
Temperate fruit, organic area
Bovine animals
Organic food exports, million €
50621
(ha)
(2017)
27
51
45
41499
96423
57884
449
1309
997
Oilseeds, organic area (ha)
Poultry
Retail sales, million € (2017)
Data source: FIBL&IFOAM THE WORLD OF ORGANIC AGRICULTURE 2020 (mostly data on the situation in 2018)
4971
42
51
51
1167
5988
Vegetables, organic area 36212
The organic food market, € per person
37417
(ha)
16719
Pigs
217
(2017)
379
446
Organic aquaculture, production (metric tons)
32
6
18
458
1845
142 156
Sheep
7
605
Number of organic beehives
32901
39407
24158
2384
28090
883