Green Food Trend in China, Too

A couple years ago on a trip to China, I remember some farmers growing organic pears in the Shandong province of China. As soon as the baby pears began to grow, they would tie a brown paper bag over each one by hand. The bags would keep bugs off the pears, without the use of pesticides.

This was tiresome work, but the farmers found it worth it, because they could command a premium price for organic pears at the market.

Today, even more farmers are deciding to go organic, as a new generation of hip, health-conscious Chinese are spurring demand for naturally-grown produce.

The rising demand for organic goods stems from several factors, including increased personal income and concerns about food safety.

American readers probably remember the melamine scare and several other food safety debacles in China over the last few years. I remember a couple years back when I visited the country, the big fear was over tainted pork.

Although food safety standards are admittedly tightening in China in recent years, many Chinese are still wary of the additives ubiquitous in processed foods. Now, with rising incomes, they are demanding organic food more than ever before.

A report from Bloomberg underscores this trend: China Green Agriculture Inc., a producer of organic fertilizer, is planning to up its sales by 40 percent in each of the next four years.

To say that 40 percent a year growth is a healthy rate would be a gross understatement.

Part of what is driving this momentum is the Chinese government's efforts to support economic growth in rural areas-which still make up the majority of the country. President Hu Jintao has spoken many times about the need to bridge the gap between the urban coast and the rural interior of China.

With the government's help for rural farmers, more farmers will be able to afford organic fertilizer than before.

The organic trend has gained attention in the United States in recent weeks, too.

Recently, Michelle Obama's decided to plant an organic garden at the White House. The resulting attention to organic food was so strong that fertilizer lobbyists jumped in the mix, launching a counter-campaign in support of fertilizer use.

While this odd battle, documented by the Daily Show and real news media alike, seemed a bit of diversionary hype, the organic food movement is gaining momentum in seriousness in countries around the world.

Sources: Bloomberg; personal experience