Growing Domestic Demand Outpaces Domestic Production of Organic Products in Brazil

Research  carried out by the Federal University of Rio Grande do Sul (UFRGS) and Federal Technological University of Paraná (UTFPR), based on data from IBGE, the National Register of Organic Producers of the Ministry of Agriculture and the Brazilian Micro and Small Support Service Companies (Sebrae), indicates growth in demand for organic products. Between 2003 and 2017, sales of organic products quadrupled and there was a 16% growth in the consumption of this type of food in the country between 2021 and 2023.

However, even with this growth, organic products produced in Brazil cannot meet domestic demand and represent only 1.28% of agricultural properties.

Different concepts

Carlos Armenio Khatounian, professor at the Luiz de Queiroz College of Agriculture (Esalq) at the University of São Paulo, explains that the term organic has a different understanding for the general population and for legislation and that, in almost five decades, there is a growing interest in agricultural products from a system that has less impact on the environment — based on less use of pesticides and minerals. There is a strong motivator, linked to interest in the organic market, based on the quality of these goods.

Still according to Khatounian, there is legislation that defines what is organic for commercial purposes: “ From a legal point of view, when you see a product in the supermarket with an organic seal, it is because it was produced and monitored according to the standards that the legislation provides,” he adds. There is a general search among the population for healthier foods, which has led to the convention that this is organic. On the other hand, the market, seeking to meet these social desires, ends up using the term organic in a restricted way, not being provided for by law. 

The professor explains that someone who grows lettuce in their backyard would not be considered organic according to the legislation, as it has not been inspected and is not certified in accordance with legal standards. However, for the population, the product is considered natural due to the expectation that it does not contain poison or fertilizer. Therefore, there is a link of trust between the consumer and the producer.

The research refers to the issues surrounding certified organic products and the popular understanding of these goods. It also involves other foods that come close to the expectation of healthy eating and have less impact on the environment, known as native or natural agriculture. In any case, there is society’s interest in cleaner products and production systems that avoid the use of mineral fertilizers. 

The expert explains that certified production is concentrated in the South and Southeast of Brazil, although it occurs throughout the country. The main products are fruits and vegetables, but there is also a high added value sector, which supports long-distance trade, such as the coffee. “For the production of a certified product, there is a very careful specification of what can and cannot be used and it not only needs to be produced within an organic system, but it needs to be monitored by a public sphere organization.” The professor also adds that, for regional consumption, the system is simpler and requires monitoring by a public organization.

Market

According to the expert, for the organic producer it doesn’t make much difference whether the market is internal or external, he will analyze the opportunities he has based on his proximity to consumption areas. In other words, if the producer is located close to the consumption hub, it becomes advantageous to base its production on what is consumed in the region. However, if it is far from the center of consumption, it is better to trace its productivity to the foreign market. 

According to the research, consumer expectations regarding organic consumption are the search for healthy foods, to preserve their health. Society’s consumption habit, formed over practically six decades, was founded in the era of poisons. An example of this is the tomato, which was previously produced in cold and dry seasons, but since the era of poisons it has been possible to produce it in humid and summer seasons as well.

The professor explains that, for tomatoes to be produced throughout the year, there is a very high load of poison in this product and that the consumer is used to seeing tomatoes on the shelf throughout the year with price fluctuations. He adds that, to have a truly healthy diet, it is necessary for this food to adjust to the rhythm of nature. “ In fact, a healthy diet has to be varied throughout the year. So, there is a gap between the expectation of a healthy diet and the eating habit that was guided by some products throughout the year,” explains the professor. 

Part of the import would not be necessary if society had a consumption habit centered on what the time of year can offer, according to Khatounian. The apple was a predominantly imported product, as Brazil did not have the climatic conditions to produce it and began to produce, from a technical point of view, using poison.

 National apple production is not enough to supply the market throughout the year, so instead of importing or producing using agrochemicals, social adaptation to the natural rhythm of the production of agricultural products was necessary. “ We have an import of organic products from other countries that would not necessarily be necessary, if there was a predisposition to adapt to the fruits available in each season,” says the professor.