The organic sector in Slovenia

Two million people live in Slovenia, and they spent 1051 euros on food per person, but only 5 euros for organic items (in 2005 including non-alcoholic beverages). Already 4.8 % of land (29,220 hectares) was used for organic cultivation in 2007. 1,999 farms (2.6 %) were organic. 13 wholesalers, one operator and 40 processors were active (2006). The organic food market in Slovenia was worth almost 4 million euros (2005). It is estimated that the market share of organic in the total food market is less than 1 %. But a growth in organic sales of 25 % per annum is predicted.
This article was elaborated in cooperation with "The Specialised Organic Retail Report Europe 2008". Ecozept (Publications)

In Slovenia, the organic market is quite young. The first health food shop opened in Ljubljana in the 1990s, and a few more have been opened since. At first, organics were not the most prominent feature of the range, the selection and type of products, and various wholegrain cereals, soy products, etc., were more important. Organic quality became increasingly important after 1998, when the first farms in the country were certified, and especially in 2001, when state rules on organic production were implemented, resulting in the media starting to show interest in the sector. The development in conventional retail was similar. In Slovenia, the domestic product groups with the highest sales in retail are basic foods like grain and milling products, pasta, oil, and similar items (about 70 %), followed by processed plant products (15 %), and fresh vegetables and fruit (15 %). The best selling imported products are grain, milling products, pasta, and oil (60 %), processed plant products (20 %), and fresh vegetables and fruit (20 %). The most important countries exporting to Slovenia are Italy, Germany and the Netherlands.

The first organic consumers came from the environmental movement, but around the year 2000 this group started to broaden. For consumers, the origin of products is important – the majority prefer domestic products and often seek direct contact with farmers and/or producers. There is currently one organic supermarket in Slovenia called Kalcek (picture). In the last few years, consumers in the high and top income groups have become trend-followers and have started shopping in this organic supermarket. However, most organic products are sold in the largest conventional supermarket chain Mercator, that has a 40 % market share in conventional food retailing. Spar and Tus, the second and third largest conventional chains, are increasing their organic products portfolio. Spar does so with fresh fruits and vegetables in particular. Some organic products are also sold in dm. Lidl and Hofer/Aldi are just starting their organic range with a few items, most of which are dairy products and vegetables like carrots and onions.

There are less than ten organic shops in the whole country, the largest being the sole organic supermarket Kalcek, in Ljubljana, that stocks several thousand organic products. The total retail area of specialized organic shops comes to less than 1,000 square metres. Domestic supply does not yet meet the demand. In the largest cities, Ljubljana and Maribor, the shops can usually satisfy customers’ needs, but elsewhere the supply situation is not so good, and this applies especially to fresh foods. Organic open air markets and farm shops have insufficient supplies to satisfy all the demand for organics.

Source: Specialised Organic Retail Report Europe 2008

Mercator (picture), which entered the organic market quite early (around the mid 90s), now lists almost 1,000 products, although the number actually on the shelves is fewer. In 2007, its turnover of organic food was almost 1 % of the total food turnover. The most important organic product groups are basic foods, processed plant products, fresh vegetables and fruit. The company states that a major challenge is expanding organic sales. This organic pioneer among conventional retailers sells organics in all of its 600 outlets, but the range depends on the size of the store. Mercator has started searching for domestically produced organic goods and cooperating with individual organic producers, because there never has been - and still isn’t - an organic producers’ organisation in the country. Both the range and the volume of foreign organic products have been increasing constantly at Mercator, and occasionally there are campaigns specifically promoting organics. The number of organic wholesalers selling to Mercator is about 10, with Prema being the most important one.
 
Although Tus has been active in the organic sector since 2005, its share in organic food sales – its organic range comprises 200 mainly basic food and processed plant products - was less than 0.1 % in 2007. In 2007, Tus started to promote organic products on separate shelves. The Spar chain (picture) sells about 700 organic products, but their share of organic food turnover in the total food turnover was less than 0.5 %. Spar started their organic business in the mid 90s, but only since around 2000 has it become larger scale and more focused. The most important goods sold have been basic food items, fresh vegetables and fruit, and processed plant products plus dairy products.
 

A snapshot of the price range of comparable products showed that 1 litre of pasteurized full cream milk cost 1.10 euros in a conventional supermarket, and 1.52 euros in a specialised organic store. 1 kg of carrots cost 1.60 euros in the conventional supermarket and 2.58 euros in the organic store, and 1 litre of extra virgin olive oil cost between 9.98 euros and 13.99 euros in the supermarket, and between 9.46 and 18.31 euros in the specialised organic store.
An organic certification label used by players in the Slovenian market is Biodar, a national private label created by Usofa. The state logo used on domestic products is ekoloski, and the EU logo is found as well. On imported products you also see displayed the EU logo and Biosiegel (German state logo) as well as other EU private and national logos.
 

Eight regional Slovenian organic farmers’ associations are grouped together in the organisation called Usofa. Together, they comprise over 1,200 organic farms. It was established in June 1999, and it is today the largest Slovenian organic producers’ organisation in the country. Among the most important aims of the association are  supporting the development of organic farming in Slovenia, assisting its members in supplying consumers with organic products and assuring enduring protection of the environment. Usofa links the activities of its regional associations, whose members are farmers who apply the association’s standards to their whole farm. Organic processors who fulfil the standards of the organisation may become Usofa licensed partners.

The activities of Usofa include close collaboration with its members, assisting members in all common issues of organic production and trade, establishing and promoting the collective organic label Biodar, striving to develop organic farming in Slovenia and improving its general position, and developing international co-operation and the exchange of ideas and experience. The standards for production and processing are based on international IFOAM Basic Standards. They meet the national and European Union requirements for organic production, but are also more demanding in several respects. This gives Biodar products even higher credibility and offers a better guarantee for consumers as well as for organic farmers. On packaging labelled  Biodar (biodar = the gift of life), printing the individual code of the producer as well as his name and address is obligatory. Biodar products reflect the diversity of natural conditions in Slovenia: from continental fruits, vegetables and cereals to the Mediterranean products from the coastal area, with the alpine part of the country contributing mainly to animal production.

Usofa farmers produce sufficient quantities for export - meat and meat products (young veal, lamb), milk, wine, fruit and vegetable juices, vegetable oils (olive oil), preserved vegetables, shiitake mushrooms, herbs and spices, processed products based on vegetables, fruit and herbs, and honey and other products from beekeeping. Other articles that can be bought at the farm gate or at the weekly organic farmers’ markets are fruit (apples, pears, plums, peaches, grapes, figs, etc.), all manner of vegetables, cereals (wheat, spelt, buckwheat, rye, triticale, barley, oats, millet, maize), cereal flours and flakes, beans, dried fruits, milk products and vinegar.
 

Nature – Health (picture) is a fair that will take place from 1-4 October 2009. The fact that this is the fourtieth time this fair is being held is evidence of the long-term trend of rising ecological awareness and appreciation of the importance of a healthy lifestyle. It aims to present the diversity and integrity of nature, which has an impact on our everyday lives in society. Because it deals with these interesting and current topics, more than 20,000 visitors are expected to come to the four-day event. A variety of themes will be covered. Man and Nature deals with nature-friendly home and working environments, while Food covers the area from nature-friendly production to healthy food, healthy lifestyle and recreation.

The food section concentrates on organic and integrated products, and other types of nature-friendly food products. Healthy Diets has a section for diabetics, dietetic products, baby food and nutrition for other specific needs, and devices for preparing healthy food. Experts will present their practical experience, and businessmen will speak on how to successfully market nature-friendly products and services. The motto of this year’s fair is “Move the planet!” More information on the fair is available here
 

An organic farmers’ festival also takes place in Ljubljana every year. This year the eighth  festival will take place on 12 September 2009. It will be a showcase for Slovenian organic farmers with their certified organic products. It will be a fun day with music, and children are welcome to develop their creative talents with a variety of workshops like flour milling, baking bread, making toys out of wool or straw, etc.
 

Organic tourist farms in Slovenia offer relaxation in a natural environment. One of those farms is Makek, located in Jezersko. It is open throughout the year in the surroundings of the Kamnisko-Savinjske Alps and the Karavanken mountains. Makek Organic Farm has a rich cultural tradition, handed down by generations of ancestors who have cultivated this area since the Jezersko Valley was first settled. It was one of the first farms to acquire eco-certification in 2000, and is certified by Kon-Cert. It offers horse-riding, with ten horses waiting to trek up to the mountain pastures, adventure rides in nature for experienced horse riders, and a riding arena. (picture: Makek's horses)

Fifty sheep are kept on Makek's breeding farm, where wool is produced and wool manufacturing and lamb meat production is carried on. With special attention lavished on the health and well-being of guests, the farm sets great store by traditional, healthy and homemade meals. Dishes are carefully prepared from organic produce, home-grown in gardens of the surrounding farms. Healthy breakfasts are served, with a choice of fruit and vegetables, cereals, homemade wholemeal bread, jam, honey, meat, Jezersko alpine cows’milk and dairy products, as well as regional dishes. Lunch and dinner are also served, and vegetarian meals are available. Rooms for seminars – dealing with creativity, sports, healthy lifestyle, nutrition, fasting, team- building and the like are also available. (picture: sheep of Makek Organic Farm)
 

The Živa Center opened in 2003 and is located in Ljubljana. It is dedicated to food, the body, relationships and environmental care. The owners and managers - Marjan Korez (organic food and health department) and Mirjam Mihelcic Korez (organic cosmetics and beauty/health department) - are very busy this summer, because they are investing in new buildings to accommodate all their ideas and creativity. In their new center, which they are in the process of buying and preparing for renovation, there will be more space to cater for a wider range of activities. A bigger shop with more goods is planned plus, for example, a beauty salon, a hair salon, a large dance hall, more courses and a small restaurant. The center will finish moving into its new premises by the end of this year. (picture: Živa' s team)
 

The company started in the field of education. Their base is organic, vegan food without anything that derives from the nightshade family (tomatoes, potatoes). They promote this diet and people are informed about the benefits in seminars, cooking courses, and consultations. Customers trust the company because no goods which are thought to be addictive or food with chemical additives are sold. In the organic food department, imported food is on sale and brands are promoted, like Probios (Italy), Topas (Germany), Zwergenwiese (Germany) and Isle of Bute Foods (UK). You can buy fresh seitan and scheese, pasta made from wheat, spelt, kamut, rice and corn, a whole variety of oils, sweeteners, biscuits, spreads, crackers, jams, sweet cacao or carob creams, drinks made from rice, soy, oats and kamut, non- alcoholic wines and sparkling wines, nuts, dried fruits, a macrobiotic selection, ready-prepared vegetables and spreads, energy bars and raw cacao beans. In the center, you get free servings of tea and water, and you can enjoy the view from the terrace. The idea of organic vegan food has also given rise to two special cookbooks with poetry, pictures and recipes, but so far they are only available in Slovene.

In the organic cosmetics department, the company also operates as a distributor in Slovenia and Croatia for the German company Logocos (the brands Logona, Sante, Aquabio, Neobio, Fitne), Biosun (Germany), for ear candles and the essential oils produced by La Source (France). Sodasan products are also available. The natural cosmetics of the brands Logona (www.logona.si) and Sante (www.sante.si) account for most of their distribution work. They also operate a company in Zagreb.

Živa' s Products are sold via all channels – to all organic shops in Slovenia and to one supermarket shop, as well as through an e-shop . The company had a turnover of 600,000 euros in 2008 - an increase of about 20 % per annum. Živa is involved in many activities. A calendar and presentation is available on the company’s website. They also have two further teaching projects - one is Femininity, which covers classes in belly dancing (picture to the left), the trance dance Zaar, foot reflexology, consultations, beauty and make-up, (picture above to the right) and the other is Fire Within, which covers foot reflexology, rebirthing, astrology, colonic treatments and consultations dealing with health and relationships.  
 
There is clearly a lot happening on many fronts in Slovenia. Regarding the organic sector the prospects are excellent. It is expected that the number of outlets will increase, and growth in turnover of 25 % per annum is predicted. More convenience products are needed, and this means that more goods have to be produced in Slovenia. This in turn means that the opportunities for suppliers and producers are good, and competition will increase in the future.
 
Although customers are becoming increasingly aware of the health issue in organics, their level of knowledge and awareness still needs to be raised. There are, however, some factors limiting the expansion of the organic market and the product range. The in-store space in specialised organic shops is restricted. Finding adequate new locations and sources of finance is important if there are to be more organic outlets in the country. However, both these issues are still posing a problem. As food prices rise in general, organic products become even less affordable. And, finally, in conventional stores there is still confusion between the terms “healthy” and “natural”.


More information about the organic market in Europe can be found in:
"The Specialised Organic Retail Report Europe 2008". The report gives a very good survey on all European countries including the non EU-countries. It can be ordered for 260 Euros:
Ecozept, Phone: + 49 (0) 8161-14820, Fax: + 49 (0) 8161-148222