Organic food labelling and regulation in Hong Kong lacks clarity and oversight. This leads to consumer confusion and lack of confidence in organic claims. The document discusses the need for a legal framework and third party certification to standardize labelling, increase transparency, and build trust in the organic sector in Hong Kong. It also outlines the role of Hong Kong Organic Resource Centre in promoting voluntary certification and education to help the industry and consumers.

1. Organic Food Labelling – Situation
in Hong Kong?
Prof. Wong W.C. Jonathan MH
Director, Hong Kong Organic Resource Centre
Hong Kong Baptist University
AmCham Luncheon Sept 2012 1

2. 2
Presentation Outline
• Hong Kong organic market situation
• Consumers’ buying behavior &
confidence level in organic products
• Means to minimize consumer’ confusion
on organic products
• Need of organic food regulation
• HKORC-Cert’s role in building trust on
“Organic”

3. 3
WORLD MARKET SITUATION

4. Global Market Growth Rates
70
59.1
60
Revenues (US$ billion)
50
40.2
40
30 25.5
17.9
20
10
0
2000 2003 2006 2010
Reference: NutraCon 2012, presented by Amarjit Sahota

5. Global Market
• Market Size (2010) US $59.1 billion
• Market Growth 8% (YOY)
228% (2000)
• Leading Regions Europe
North America
• Leading Markets USA, Germany
France, UK
Reference: NutraCon 2012, presented by Amarjit Sahota

6. 6
Organic Farming is growing
No. of Certified Organic Farms in HK
120
100 98
86
80 69 (67.9ha)
58
60
45
40
18 22
20
0
0
Mar-2005 Mar-2006 Mar-2007 Mar-2008 Mar-2009 Mar-2010 Mar-2011 Mar-2012

7. Hong Kong Local
Produce Production
(2012 July)
• Total No. of farms:
– 2,500 (734 ha)
• No. of Organic Farms:
– 409 (24% of total farms)
• No. of Certified Organic Farms:
– 100
• Farmland in the urban fringes
• Local organic veggie
production:
– 4.5 tonnes per day
(0.25% of local veggie
consumption)
(source: AFCD)

8. Increased Organic Food Supply
8
Organic Processing & Retailing sector
is growing
Gradual increase of operations involving in the handling, processing
or selling of organic products.
Over 300
Retail Outlets!

9. 9
Demand for Organic Products
(HKORC Consumer Survey 2011 <Valid samples：616 >)

10. Categories of Organic Products
10
(HKORC Consumer Survey 2011 <Valid samples：365 >)

11. Frequency of Organic Purchase
11
(HKORC Consumer Survey 2011 <Valid samples：365 >)

12. 12
Reasons for Choosing Organic
Meeting organic buyers’ needs
Reasons for choosing Organic
Sample Size：365
HKORC Consumer Survey, 2011

13. Channels of Organic Products
Sales in Hong Kong
13 (HKORC Consumer Survey 2011 <Valid samples：365 >)

14. The Average Monthly Expenses on
Organic Products
In the past year, the % of organic buyers who spent over HKD500 on
organic products increased from 9% to 16.2%. In the coming year, those
who are willing to spend over HKD500 will be increased to 20.8%.
14 (HKORC Consumer Survey 2011 <Valid samples：365 >)

15. Supermarkets, superstores &
health food stores - Veggies
15
(HK Labelling Survey – Organic Veggies 2011 <Valid samples：724 >)

16. Supermarkets, superstores &
health food stores – Rice/Pasta
• The labelling of rice/pasta products also has confusing claims.
16
(HK Labelling Survey – Organic Veggies 2011 <Valid samples：724 >)

17. Foreign organic label we see on 17
imported products everyday

18. 18
Wet Market Situation
(HKORC HK Wet Market Survey )
Year

19. Who/What should consumers trust?
19
Certified vs Self-claimed Organic in
Wet Markets 2012
Overall situation – Certified organic vs self-claimed organic -
% of market vendors % of market vendors selling “organic”
7.0%
vegetables
Selling self-claimed
organic veggies
20.6% Selling certified
organic veggies
Selling 76%
72.4%
certified
organic
veggies
<samples: 340> <samples: 93>
• However, the % of self-claimed organic veggies (i.e. over 70%) was still high in
2012, similar to the results last year.
(HKORC HK Wet Market Survey 2012)

20. Can we trust what we see?
20
FRAUD
Case!!!
28 Jun 2011
Local Vendor
selling fake
Organic Crops
Source: HKSAR Customs and Excise Department

21. Low Confidence Level on Products
could Frighten Consumers Away
21 (HKORC Consumer Survey 2011 <Valid samples：251 >)

22. 22
How to tackle this confidence
issue?
Let’s look at the experience
of the overseas.

23. Means to Guarantee Organic
• Third Party Certification
• Participatory Guarantee Systems
• CSA, Tei Kei, farmers markets,
traditional systems etc
Reference: NutraCon 2012, presented by Andre Leu

24. Third Party Certification
Third party certification systems involve
producers being certified to a standard or
several standards by a recognised
certification body that checks that the
producer is complying with the
standard/standards.
Reference: NutraCon 2012, presented by Andre Leu

25. Third Party Certification
• 75+ countries with organic regulations of
some type
• Some standards only
• Some, standards plus control of certification
• Some regulate export but not domestic
• Private organic standards and labeling
• 400+ organic certification bodies
worldwide, but little to no access to
certification in some countries.
Reference: NutraCon 2012, presented by Andre Leu

26. Other Guarantee:
Participatory Guarantee Systems
• Locally focused quality assurance
systems for local markets.
• Develop an internal control system to
ensure that all the farmers in the group
are adhering to accepted organic
practices.
• Normally involves a standard
• A transparent peer review system to
ensure that all the members are following
the correct procedures.

27. Other Guarantee:
Non Certified Systems
• Farmer and consumer based cooperative marketing
systems.
• Well known examples are the Tei Kei system in
Japan and Consumer Subscription Agriculture (CSA)
in Europe and North America.
• These systems work on a direct partnership between
the consumers and the farmers.
• The integrity is built on the transparency and strength
of the relationship between the two groups.

28. Organic market regulation in Asia
Certification by CB approved China
by CNCA
Certification by CB approved Japan
by MAFF Japan
Certification by CB approved by NAB India
[pending notification of rules]
South Korea
Certification recognised by NAB
Certification recognised by NAB or Taiwan
Canada
Certification recognised by Dept Malaysia
of Agriculture
Philippines
Certification recognised by NAB
Hong Kong
No additional regulatory requirement Singapore
Indonesia
NAB – National Accreditation Body
Reference: NutraCon 2012, presented by Ong Kong Wai

29. Example – China
• CB should be approved by CNCA and
accredited by CNAS
• Inspectors should be registered at CCAA
• Only certified products can be labeled as
organic
• National organic label

30. Example – Singapore
• No national organic agriculture standard;
• Food products labelled as organic foods,
organically produced or words of similar
meanings: CODEX
• All import of organic processed food are
required to accompany with organic
certification from the relevant certification
bodies of the country of origin

31. Hong Kong –
31
NO legal legislation on Organic”
？
？ ？
31

32. The Need of Legal Legislation on 32
“Organic”?
• Recent Concerns raised by Consumer
Council
– “Consumer Council supports calls to introduce
specific regulation governing the production,
certification and labeling of organic foods in Hong
Kong.”
• HKSAR Gov (Food and Health Bureau )
– FHB has commissioned a consultant to study the
need of Legal Legislation on “Organic”.

33. Organic Food Regulation –
possible implications
• Clear labelling that help consumers identify the
genuine organic products and enhance their
confidence on organic products
• Regulate the organic market
• The increase burden of organic regulations restricts
market access
• Costs on production increase for small producers
– FHB has been funding the Hong Kong Organic Resource
Centre for 8 years that promotes voluntary Organic
Certification scheme and educates the public on Organic
consumption. The Government believes these approaches are
currently sufficient to meet the needs.

34. 34
HKORC’S ROLE IN BUILDING
TRUST ON ORGANIC

35. 35
Promote Organic Certification
Next Step to Build Confidence
 Applying for International Accreditation:
 IFOAM Accreditation & ISO65
 Build Trust towards HKORC Cert among public
& the operators
 Build a credible organic certification
system:
 Independent Organization Structure
 Standard formulated with reference developed
according to principles of IFOAM
 Policy Manual formulated with reference to
ISO65
 Consultation process

36. 36
Develop Unilateral Product
Acceptance Service
HKORC Organic Seals: Known by HK public
(HKORC Consumer Survey 2011 <Valid samples：616 >
HKORC Consumer Survey 2009Jan <Valid samples: 501>)
* The data for JAS label in 2009 is NA.
36

37. 37
Develop Unilateral Product
Acceptance Service
 Raise the no. of organic imports with HKORC
Cert seal
 Increase HKORC seal exposure and increase
consumers’ confidence

38. 38
Surveillance /
Market Surveys
• Surveys with focus on
– Consumer Attitude & behavior
– Labeling Situation of Retails
– Labeling Situation of Wet
Market Stalls

39. 39
Education & Publicity through
Press helps build the awareness
& confidence
39

40. 40
Promotion and education
 Territory-wide Educational
Program like Organic Day
 Educational programs to
schools & organizations
40

41. 41
Our Ultimate Goal
Build up confidence among
consumers towards
organic products and
catch up with foreign organic
market
41

42. 42
THANK YOU.
Hong Kong Organic Resource Centre
Address：Hong Kong Baptist University
Tel：3411-2384
Fax：3411-2373
Email：hkorc@hkbu.edu.hk
Website：http:// www.hkorc.org