The Challenges Organic Food Processors Meet at Small Emerging Market – Estonian Case

Summary

Organic farming and demand for organic products is continually a growing trend all over the world (Willer et al., 2013). In Estonia the share of organic land is 15% of all agricultural land and the number of organic farmers is also growing (Vetemaa, Mikk 2013). Estonian organic food market is still in forming stage being affected by local organic farming development, marketing situation, economic situation and consumer attitudes. Organic processing has clearly not kept up with organic farming development and market demand so far. At the end of 2012 there were 158 certified processors, but most of them are just packaging or storing, not producing new products (Agricultural Board). Market share of organic food products is marginal (1,6% of total food market in 2011 according to official statistics (TNS Emor 2012a) and significant share of organic raw material is still processed as conventional food. There have been studies of organic farming topics but no knowledge about the challenges and perspectives of organic food processors. The main purpose of the study was to find out the current situation of organic processing companies in Estonia: what is the structure and characteristics of companies; how do they evaluate compliance with legal regulations and requirements related to organic processing; what are their main problems; how do they see the future of their business and organic market.