Managing
Going Global: Exporting Organic Products
By David Gagnon
Throughout the world, the United States is
seen as a purveyor of high-quality organic
goods and today many U.S. organic companies are capitalizing on this fact via exporting. In fact, according to data recently
released from the Organic Trade Association’s
(OTA) 2008 Manufacturers’ Survey, over half
of all the organic companies surveyed are
already exporting internationally, and another 22 percent plan to export in the future
(Figure 1).
Figure 1
For many organic companies, exporting
efforts are already leading to significant sales.
In the survey, about one quarter of exporters
report that international markets represent
more than 25 percent of their total sales. Conversely, over half reported that exports only
represent 10 percent or less of sales. This is
most likely due to the fact that the majority
( 59 percent) of the current exporters have
just begun to do business in the global arena
in the last five years. These numbers are likely
to grow as the organic industry grows globally
and countries are able to establish better harmonization and trade programs.
Although there is a world of opportunity
out there, before you sink time, money and
effort into exporting, it’s crucial to under-
stand the international marketplace and cor-
responding trade issues. Also, before
committing to export products, companies
should fully explore and fulfill domestic op-
portunities, as exporting is never a simple or
inexpensive venture. Then, look for the
largest markets with similarities to your do-
mestic market, said to Bob Anderson of Sus-
tainable Strategies, a consulting firm
specializing in international organic food and
agriculture. “Be sure to ex-
amine export opportunities
with your eyes wide open,”
he added.
Possible Markets
For U.S. manufacturers,
Canada is cited as one of the
particularly important markets. In the 2008 Manufacturers’ Survey, among the
companies that plan to
begin exporting, Canada is
mentioned as the first target
most often ( 24 percent). Another 28 percent
mention it as being among their top three priorities. Canada recently published new organic regulations, and even more exciting to
the U.S organic industry is the fact that the
United States and Canada are currently working on establishing an equivalency agreement
that will have a very positive impact on trade
between the two countries.
Another important market is Mexico,
which is currently in the process of developing regulations. The European Union (EU) is
an attractive market, but presents challenges
because sales and trade negotiations largely
take place at the country level, which means
companies must meet the requirements of in-
