Comparing organic urban consumers in developing and developed countries : First results in Brazil and France. - Portal Embrapa

AIEA2 and SOBER Intemational Conference

Comparing organic urban consumers

in developing and developed countries

First results in Brazil and France

Abs/ract

Lucie Sirieix,

Montpellier SupAgro, UMR MOISA, Fmnce

Lucimar Santiago de Abreu,

Embrapa Brazil,

MariaAico,

Embrapa, Brazil

Paul R Kledal,

FO~ Denmark

Despite nume7<JUs studies reporling on sustainable -c-ansumption.ar organic consumer profiks, there is a gap in thorough understanding qf organic conswners in dijferenl p/aces, since most qf studies only hwestigate organic cnnsmnption in mos1 deveJoped countrie.,;. The gool of this paper is th1J.s to compare French andBrozi/itm organic consume]"s, so a.o; to know

if

people thin.k and hehave differently or similar/y in dijferenJ p/aces.

Individual inlerwews were conducted in each countly, with consumers in organic producers marke! in Brazil, and consumers who buy organic products from farmas markets ar local organic fi)(x} network in France. Products were se1ecled 10 caw.F example.s

tf

dijfe.re.nJ c.hoice sitllo1ions sl/.Ch as imporJed organic promlCls Ihn.t compele wi1h comparable products oflocal origin, 01' organic local products in supermarkets lhat compete with similar products

from

oIher distribulion outlels.

Results show common consumer concems such as qualityor personal andfamily health, and common preference for local and organic products huJ for dijferenJ reasons. IIowever, resu/Js al.m shed lighJ on different paltem,s relaled lo environmentol concerns ar conunitment to supporting smolJ OF local farmers

The impacts -qfthe findings -qf this study relate to a diversUy oflopics such as social mobilization for sustainable agriculture, local organicfood networks and environmenlal concems.

Keywo.rds: organic .f00d, locaJ food, sustainabJe consumption, quaJltative study JEL subject descriptors :

Dl Household behaviour. D8.lnformation and uncertainty. M3 J. Marketing.

QO] SustainableDeveJopment

1

Introduction

Half thc world's population is now projected to be urban reaching 3.2 billion. Urban areas are gaining an estimated 1.3 million every week. Rural migration and poverty \\"il1 pIay -a significant role behind this urban growth, and major nu-al changes - in the South as well as the North - havc to be seen and understood in the global context of urban economic devcloprnent, population growth and tmeven resource distribution (lJN-HABITAT Debate 2004 & lJN-HABITAT

200412005).

The diversity and concentration of economic activity in cities are also a major drive behind urban growth, which ensrnes tllat metropolises in many p1aces of the world are the leading sector of macro-economic developrnent (Zettcr & lIarnza cds, 2004). Therefore the processes of urbanization and economic progress are empirically mutually rcintorcing (lllack & HendersoIl, 1999). On a global scalc, changcs in inforrnation, production and transportation technologies have

had profound effeets on urbanization (Irwin & Bockstael, 2004).

These economic impacts of globalization and urbanization have also accelerated the changes on how the modem food ehain is organized. Frorn previously bcing a suppIy drivcn chain váth the rnarket power placcd in food manufacturing, the food chain has now become a demand driven chain where the rnarket power lIas moved to the retail and supennarket sector (Kledal, 2003 & 2005) (Scbrôder & Lee, ).

The organic food and [ann systern itself has over the past two decades been transfonned [rom a loosely coordinated local network of produccrs and consumeIS to a globalised system of fonnally regulated trade which links socially and spatially distmt sitcs of production and consumption (Raynolds, 2004). Though preferences for local organic food persist, Northern cotnltries are increasing their reliance on organic imptllts, partil..:ularly from the global South moving bcyond local seasonal products and bulk grains, to include a widc array of tropical products, COlmter-seasonal produe,,, proc.essed foods etc .. (Raynolds, 2004).

Organic food and fanning is now fotmd in more than 100 countries including developing and middle-income countries (Willcr & Yussefi, 2004). Tbe major markets for organic food and drink are Europe and North America, which accoW1t for roughly 97 percent of global revenues and the markets are growing (RayDD1d~ 2004). Trade in organic food ac.TOSS continents is int-'Teasing.and

organic products frorn developing countries like Brazil, Egypt and Uganda are being exported to e.g. Europe. Major northem rnarkets offer good prospects for supplicrs of organic products not dornestical1y produced. These include coffee, tea, cocoa, spices, sugar canc, tropical fruits and beverages, as well as fresh produce in the off-season

Increasingly, govenunents in developing coW1tries are creating conditions in support of organic export (Scialabba & Hattam, 2(02). Regional markets of organic products are also expected to increase in developing countries like Brazil, China, India, Egypt and South Africa along with inc.r.easing economic developrnent and a more educate.d and affiuent middle-class of c.oIlSumers (Willer & Yussefi, 2004). Altbough certified organic products make up a minor sbare of lhe world food market {l-2%) it is lhe fastest growing segrnent of lhe food industry (Raynolds, 2004). S1..1permarkets in deve10ping cOW1tries, as thc supplier and rnarketplace for fooo, are traditionally viewed hy development e.conornists., polic.ymakers and practitioners as the ric.h wor1d's p1acc to shop. Eut supermarkets are no longer just niche players for rich consumers in the capital cities of the -countries in respective1y Latin America, Mrica and Asia. Thc rapid rise of supermarkets in

these regions in the past five to ten years has transformed agri-food markcts at different rates and deptha across regions and countries. Many of those transfonnations prcsent grea1 cballenges

-even exelusion - for small fanns, and small processing and distribution finns, but also potentially grcat opportunitics (Reardon et ai, 2003).

Global supennarket expansion 15 thcrcforc dosdy rclatcd to the rapid urhan development worldwide.

At the same time supennarkct sales of organic products have been increasing, dominating sales in lhe UK and Switzerland and controlling 80% of sales in Denrnark (Kledal, 2006). This development may spread also to the home market." in developing cOW1trics. Higher inoomes and lower food priccs have increased consumer preferences for greater variety far wider than specialized food producers or manufaeturers ean provide, and hence pushcd the market power at the end of the food chain with a growing concentration among intemational supennarkel chains. Organic farming might be pushed towards thc eonventional farming modeI as multinational agribusinesses and global supply chains penetrate the organic eommunity and its market." {Buck et ai., 1997; Guthrnan, 2004; Tovey, 1997). Tbis could result in lhe same basic social, teclmical and economic characteristics - specialization and enlargement of fanns (Milestad & Darnhofer, 2003), decrcasing prices, increasing debt Ioads with increasing capital intensification, inereased use of externaI inputs and rnarketing becoming export-oriented rather than local (Hall & Mogyorody, 2001; Milestad & Hadatsch, 2003).

In relation 10 economic growth and various urban changes, there has aIso been an increased constnner awareness as well as environrnental concern in regards to food ('I1l0gersen and Olander, 2002). This awareness has lcad to a growing interest in health-related or organie products, as wcll as an incrcasing consrnner interest in having a eloser relationship with the food produc.er, but the gap between thcse types of concems and actuaI consl.U11er behaviour .s1ill has 10 be understood (Sirieix and Codron, 2004). Very few studies have been conducted on eonsl.U11er attitudes towards organic products in developing colUltries, as well as on the link between consumers' attitudes and the connection to more flUldamental urban economic changes.

This double situation of increased demand for organic food and helief in Organic Food and Farming as a development pathway on the one hand and the increased conventionalisation and globalisation of Organic Food and Fanning on lhe olher hand is lhe starting point for lhe Global Organic research project GLOBALORG (www.globalorg.dk). Four case studies in developing countries (Brazil, China, Uganda, Egypt) will be ccmparod to two case studies in Europe: France

and Demnark.

The objectivc 01' GlobaIOrg project is to study lhe urban economic factors influencing consumer preferences respectively for sOOrt versus long procurement systems supplying organic food in developed and developing countries.

The project consists oftlrree tasks:

(I) To document the urban socio-economic development ofthe chosen arcas (2) to docl.U11ent the various organie food procuremcnt nctworks and

(3) to study consmners motivations and bam(.'Ts to buy, and meaning of, organi(.'. food. This article presents first results from the third ta5k.

2

Study area and research methods

Despite numerous studies reporting on sustainable consumption or organic consumer protiles (e. g. Torjusen et aI., 2001; Sirieix el aI. 2006, Verrneir aod Verbeke, 20(6), Ihere is a gap in thorough understanding of organic consumers in different places, since most of studies only investigate organie consumption in developed cmmtries, and litt1e is knOWIl about organic eonsurners in developing cOlllltries (Soares et aI. 2006). For example. is today's growth in c,onsumption of organic food in some developing cOlllltries due to individual attributes such as taste and heaIth or is it related to social t-lUbcddedness and altemative food networks for some COnsUII1CTS as it is in Europe (Sage, 2003)?

The goal of this research is to provide flfst answ(.,"[s to this question by comparing French and Brazilian organic consumers, so as to know if people think and behavc differently or similarly in different places,

A qualitative study has been conducted to:

Study consumer trade-off and rclated internaI conflicts: organic vs. conventionally-produced food, imported vs. local food, .

Assess under which conditions conswners are ready to buy organic produc"ts: grown !

produced locally, specific mode of distribution or k-ngth of the dístribution chain Relate consumers' concern and internaI conílicts with (1) thcir individual VS. altruistic values (Schwartz, 1994, Thogersen and Olander, 2(02), (2) Iheir knowlcdge and altitudes aboul organic products, heallh, risk (Thogerscn, 2(06), (3) lhe distribution chains they use (long versus short commodity chains)

Asscss within developed and dcveloping countries common and specific consumers concems, attitudes and behaviours rclated to organic food and its distribution.

lndividuaI interviews werc conduc.ted in cach C.ol.Ultry> wilh 8 consumers in organic. produc.ers market in Campinas, SP, Brazil, and 12 consumers who buy organic products from fanners markets or local organic food network. in Montpelher, Francc. Prooucts were sc1ected to cover examples of different choice situations such as imported organic products that compete with comparable products of local origin, or organic local products in supennarkets that compete wilh similar products from other distribution outlcts.

More precisely, interviewecs had to compare a local and organic food proouct, a local and conventionalIy produced food product, and an imported organic 1'000 product. They had to

(I) .answer questions related to their al1itudes and c,onsumption inlml1ion (relate.d to environrnent, heaIlh, price, .. ),

(2) describe lhe person who typically buys aud consumes cach type ofproduct (3) descrihe the person woo never buys or consumes cach type of prOOuct,

(4) react afier reading a discussion between three inven1ed consumers (one who buys local or imported organic food, regardless of the mode of distribution or length of the distribution cham, the second ODe who only buys local and organic prooucts and prefers

not to buy them in supennarket."i and, the third one who buys eonventionnally produced local producL<),

(5) discuss on thc basis of open questions about foOO milcSc, mode of distribution, and prooucers.

3

Fi

rst resu

Its

In spite of differen1 c.ontcxts and samplcs, results show common consumer c.oncerns and preferences, but they also shed light on different concems and tradc-offs.

Different contexts and samples

The consumption of organic food has increased in France for thc last ten years, cven if the French market for organic food is not as mature as other European organic markets such as Denmark or Germany. Ou the contrary, most of the Brazilian organic prOOuction is exported, mainly to Europe, lhe United Sta1es aud Japan. Tho domestic market for organic food is Ihus a "niche" market.

As regard 10 certification,. the situations are c.ontrasted too : while in Franc,c there is one well known aud lrusted Iabel "AB", there are in Brazil more than 20.

Brazilian and French retail structures are not really different. In France, the main supennarket chains are responsible for &0% of the fO<Xi sales, and in Brazil in 2002, traditional retail is responsible for 20.4% of food sales, supermarket chains for 43.9% and independent supermarkets for 35.7% (Farina el aI., 2004).

Our samples in Brazil and France do oot have the samc socio-demographic structurc. In Brazil, the interviews were conducted \\'ith COllSlUllers frvm "Parque ecologico de Campinas" and "feira dos produtores organicos". Most are middle or high middle social classes COIlSlUllers (liberal professionals, professors, doe.tor&, dentists., insurance ag(,'11ts.,. __ )_ In

France, alI the social classes are represented in thc sample. These differences are due to the differences previously noticed in the life cycle of the organie markct in France and Brazil. However, Brazilian and Freneh interviewed consmners both have high education degree and a high health and risk eonsc.iousness.

Attitudes towards local and

I

or organic food

We have fies! studied attitudes towards threc types of products local aod organic, local and imported, and local and eonventional products.

Loal

and organic food

Even if the price is pcrccived as high, above all by brazilian consumcrs, local organic food is associated with quality, health, cnvironrnental friendhness and link with the producers. In the brazilian inteIViews, ''trust'' is a word that is always prcsenL

Consumers who buy local organic. food are de3C.ribed in both samples as weU off people, health-conscious and concemed by environrnental issucs.

This kind 01' food is thus high1y appreciated in both samples. However, the invented con~er who on1y buys local and organic pr-oducts and prefers not to buy them in supermarkets is the least appreciated profile by 7 french rcapondents, and no French chose him as lhe most appreciated. On lhe contrary, he is thc most appreciated conslUller for 4 brazilian rcspondents anel is the least appreciated profile by only one Brazilian. This difference is mainly due to thc attitude towards imported organic food, which is largely accepted in the French sample, and rejccted in the brazilian sample.

Imported organic food

The invented COnsumCf who prefers organic food, and does not pay attention to thc fact that it is local or imported is the most appreciated profIle by 9 french and 4 brazilian respondents, and no respondent chose him as the lcast appreciated. However, important differences between the two samples do appear:

French interviewees do not see major differences between local and imported organic food as regard. to health, quality or envirorunent. They do oot takc into aceOlmt fO<Xi miles.

However, two kinds of attitudes are to be noticed within the French samplc.

According 10 some conSlUllers, buying imported organic food is necessary since tropical produet·,> such as quinoa, bananas, ... cannot be fOlll1d in France. Another motive for buying importcd organie food is the fact that the prooucts these consumers buy are organic and fair trade products. 30 lhey deserihe consumers who buy importcd organic food as well otI peopIe, heaIIh-conscious, cnvironrnental-conscious but a150 conccrned by mobilization for development of

srnall produc<"'IS from poor countries. ("f think 01' chocolate, I mean cocoa. I buy organic and fair trade because I cannot imagine not to respect people (for examplc by buying at a very low price). Here people have fair working conditions, but not in the developing cOlUltries'}

On lhe contrary~ others are reluclan!. Some do no1 trust imported organic. food since they do no1 know how organic production is controlled out of France, others think onIy snobbish persons buy importe<! mgmllc product,.

In Brazil, the image of local product is really strong : Brazilians are v(.,'I)' proud of their local tropical products and do no1 sec the use of imported products, apart from some processcd rood. They 1hink foreign products are 100 expensivc, thcy do no1 like them because they think that transportation can lead to a loss of product quality, and becausc thcy do no! trust foreign products. ("I have doubts about imported product quality, and I am not SUIe that it is really an organic producC). One respondent added that it seemS snobbish 10 buy lUlnecesS3ry imported products.

Besides, one respondent mt.'Iltioncd food miles and the consequences of transportation on enviromnent.

LocaI and conventionaJ food

Local food is associated with freshness and good quality in the French samplc. Fn .. 'Ilch interviewees also lay particular emphasis on the relationship with the producers, and the fact that they know and trust them.

Consumers who buy local products are described in France as people who like good food, are atJached to their region and to tradition. CHe buy goat cheese from a smalllocal producer. I think "cven if it is not organic, it cannot be bad". I trust organic products complctcly, and I partially trust him"). However, some interviewces stress the fact that sometimes buying local prooucts is a snobbish behavioUI, and that buying onIy local or french products prevents poor countries development. The invented conslID1er who buys local products is the least appreciated profile by 5 french respondents, wherea<; 3 French respondent<; chose him as the most appreciated.

In Brazil, respondents attitude towards local anel conventional food is mainly ncgativc. Some respondcnts sometimes buy conventional prod.ucts only because of low prices.. and availability, but local products are described as "[uU 01' pesticides", and CVt.,'Il 'ÍJOisoned" and "very dangerous for health"). The invented consumer who buys local products is the least apprecíated profile by 5 brazilian respondent<;, wher-cas just one of them chose rum as the most appreciated.

4

Discussion

Results show c·ommon consumer concems such as quality or personal and family health, and common preference for local products but for different rcasons.

Common motives and barriers as regard to organic food

Results frrst confmn previous studies on organic food in developed cOlUltries (Wicr et aI., 2006; Sirieix el a1 2006): He.alth (personal or family "".alth) remains lhe main motivalional drive for organic products, and food scandals appear as further motivational factors. l:Iedonistic values are important too, above ali in France where consurners associate organic food withgood and natural taste.

Environrncntal eoncems are more important in Francc than in Brazil, but only rclated to food production. The mtervil,"Wees do not take mto aCCOl.mt pollution due to transportation, and only one eonsumer in each sample spontaneously spoke of food miles.

Organic. c.onswnption is also dcscribed in both samples by some c.omilJ1Ul.íS as a political and ethical act; some brazilian inteIViewees are part of produccrs assoeiations and activcly support organic producers.

Common baniers were evoked: priee, abovc aIl in Brazil where the pnce gap with conventional produc1s is perceived as really high, but c,onslllllers 1hink lha1 products in organie markets are less expcnsive than organic produets in supcrmarkets. Besides, the availability of the products is seen in both colll1tries (abovc all in Brazil) as insufflcient.

Common preferences but difTerent reasons behind preferences

Results show that in both samples consumers declare strong prefercnccs for organic, local food and short chains. But differcn1 rcasons expIam these preferenccs.

Organic food. is not defined on thc same basis in France and Brazil: in France, organic food is clearly related to "AB" labeI, while in Brazil organie food may be with or without label. Defmitions 01' local products are differen1 too: in France, the $Cope is narrow, local products are produets from the dose region ("The producer is a local produeer, he lives elose to me. If he were not very dose, I w·m.Ild n01 trust him".). On the contrary, m Brazil "local" means from the State., or from Brazil.

The differencc in organic labeling explains that in Francc lrust is mostly linked to lhe Iabel, whereas in Brazil trust is based on personal relationship with produeers.

Local products Me preferred in Fmnce due to lhe contacts they suppose with lhe produccr, thus confrnnmg previous resul1s (Sirieix e1 aI., 2006). In Brazil local organic produets are preferred becausc oftheir high perceived quality, and imported products are perceived as too expensive. But another important motive for the brazilian eonsumers 1hat wc interviewed is lhe will to support local fMmers and local cconorny. ("I buy local organic food to help my COlll1try, my neighbor, and small produeers."). One consumer added that buying local organie products aí a high price allows to givc decent w.:tges for local workers. ("1 would buy organic products from another state, but not from anothcr COlll1try. My mam motive: hclp people who work in rny country. Act locally and think globally").

Last, eommon preferences for diree1 or short ehains are due to thc pleasme of human eontaet and direc.t link in France, as alrelldy shown by Siricix et aL (2006). Tbis preferc'llCe is more due to trust and commitment in Brazil. Brazilian consumers that we interviewed do 110t 1rust supermarkets and think that buying local products directly from the organic fanners is important 10 support small farmers and local development. ("Supennarkets do everything not to help organic products. They seU lhem at a very expensive price").

DifTerent concems and trade-ofT

Even if results show common consumer concems and preferences, theyalso shed light on different pattems related to environrnental eoncems or eommitment to supporting small or local fanners.

Environmental concems are important in both samples~ but seem more importanl in France, even ir food miles are oot taken fito account. In Brazil, the maio motive is more clearly health, and within altruistic values, concems for small organic farmers are more important than enviroomental conccrns. Moreover, io Brazil we can notice a stronger prcfcrence for local and organic products; Brazilian rcspondents do nol trust local and convcntional food. bllt clcarly reject imported oIganic food because of pricc and need to supporl local fanners. In Francc the trade-off between local and conventional products and, importcd organic products is oot so deM.

Conclusion and further research

1his study has shed light on different COllStullCr tIade-offs anel. rclatcd internaI confliets due to social and eeonomic factors (tru:::.1 in labels, prices ... ) or pcrsonal values.

We also noticed ditTerent conditions undcr which consumers are ready to blly organic products: in Brazil, consumers we havc interviewed clearly prefcr products that Wl,'fe groWIl or produced locally and spec-ific mode of di.stribution: they are loyal to organic markeL.., and reject supermarket'i. In France, consumers like bctter prodllcers mark.ets than supermarkets bllt buy processcd and imported organic products at supennarkets.

On a theoretical levei, the impacts of the fiodings of this study relate to a diversity of topics such as

!he links between personal values and behaviour (Wier et aI., 2006), individual values, altruistic values (benevolence and univcrsalism) and thc rclated question of consumer retlexivity (Giddens, 1991). For example, in Bmzil, imported organic food is more rejected

than in France, but io both samplcs, consumers concem and internaI conflicts are linked 10 both individual and altruistic values: some Frcnch consumers are willing to buy organic importe<! products such as bananas because !hey like !hem (individual value of pleasure) and others because they think. that buying fair trade organic products allow them to support small producers from developing count:rie..., (altruistic value~ Some Brazilian c·on'iumers reject OIganiC imported food becausc they think the quality is lower (individual value of pleasure), and othem becallse they want to Sllpport Brazilian organic producers (altruistic value).

the question of the meaning of consumption.. Can c.onsumption be a political aet ? It is clearly the case for some consumeIS. One french respondl.,"l1t explaincd why she buys organic imported bananas .. It i5 a political choice: \Vhen you see how conventional bananas are cultivated, with dangerous products, dangerous for the workers, it is a shame to eat them, it is a scandal. It is 100 casy, we have everything in our platc, we do not ask questions 10 ourselves. ThllS, buying organic imported food is not a preference, we jllst haveno otherchoice».

What are the links betwcen local andJor organic consumphon and social embeddedness (Scholten 2005) ? This question is related to social mobilization for sustainable agriculture (Moreno-Penaranda, 2006) and lhe role of local organic food nelworks (Seyfang, 2006). Brazilian consumcrs motives who buy in local organic network to support small fanners and local cconomy are in line with the analysis of local organic network by Seyfang (2006), which incorporates localisation, commumly-bllilding, and eollective achon.

Last, implications for Pllblic policy and marketing of local and organic products are important too. Results show the importancc of trustworthy labels for lhe devcloprnent of organic rnarkets, and lhe need to support shorl distribution chains.

To conclude, further qualitative research is nccded, but we hope that these first results increase our undcrstanding of the factors influencing organic urban consumers in developed and developing cOillltries.

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