U.S. & MEXICO - The organic category has seen immense growth in recent years, which has had a direct impact on growing practices and exports for our neighbors in the south. Erica Renaud, Regional Business Manager, North America for Vitalis Organic Seeds, the organic division of Enza Zaden, took the time to share with us some of the strides the country has made in this rapidly expanding category.
“The Mexican government has made two major regulatory changes in direct response to the growth of the organic sector,” Erica tells me. “After a decade long process, Mexico (SENASICA) has launched a domestic organic standard for organic production and processing, while almost simultaneously, SAGARPA has modified its mandatory chemical seed treatment requirement for imported seed.”
Recognizing the growth in the organic market and the potential for Mexican growers, organic growers needed easier access to organic and conventionally untreated seed in order to comply to organic standards. Through the modification of the seed importation requirement, organic growers now have legal access to a broader assortment of high quality organic seeds.”
Previously, Mexico’s import regulations prevented many organic growers from obtaining the seed necessary to meet the organic standards for the U.S., Canada, and the EU (which all require organic growers to use organic seed when commercially available). Chemical seed treatments, such as Thiram, are not permissible under global organic standards. Now, Erica tells me, that door is slowly being pushed open by the evident growth seen in the category.
“One of the major points Mexican growers need to consider is that, while organics is a burgeoning market, transitioning from conventional to organic production needs to be done slowly. There are many challenges in an organic production system that differ substantially from a conventional system, namely biological soil fertility management and non-chemical management of diseases and insects. If one does not develop their organic production area slowly, they risk failure and non-compliance to organic certification requirements, which could jeopardize the integrity of Mexican organic production for all growers,” Erica said.
Developing a longer term organic management plan supports the market demand that organic growers can supply retailers with a year-round production in consistent supply and quality.
Right now, organic is an industry grossing more than $60 billion per year on a global scale. Approximately $32 billion of that gross is within the U.S. As we previously reported, this is an 11 percent increase over the 2014 organic category as a whole, and fruits and vegetables make up the majority of sales by a wide margin at 36 percent.
Considering over 90 percent of Mexico’s organic produce is exported to the U.S., the interconnectedness of the markets is fundamental, Erica says.
Currently the country is reporting over 600,000 hectares in organic vegetable alone, and with the government acknowledging the category's growth with enhanced organic agriculture policies and the removal of trade barriers, that number will only continue to grow.
