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Organic agriculture practices in Turkey as a value chain creating model of agricultural production

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2nd World Conference on Technology, Innovation and Entrepreneurship (WCTIE-2017), V.4,p.11-19 Cetin, Yilmaz
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DOI: 10.17261/Pressacademia.2017.510 11 PressAcademia Procedia
2nd World Conference on Technology, Innovation and Entrepreneurship
May 12- 14, 2017, Istanbul, Turkey. Edited by Sefer Şener
ORGANIC AGRICULTURE PRACTICES IN TURKEY AS A VALUE CHAIN CREATING MODEL OF
AGRICULTURAL PRODUCTION
DOI: 10.17261/Pressacademia.2017.510
PAP-WCTIE-V.4-2017(2)-p.11-19
Murat Cetin1, Gonca Yilmaz2
1İstanbul Üniversitesi, mcetin@istanbul.edu.tr
2İstanbul Gelişim Üniversitesi, goyilmaz@gelisim.edu.tr
ABSTRACT
This study emphasises the importance of promoting organic agriculture activities which will contribute to reviving and bringing the
agricultural sector of Turkey to a level that is in keeping with the country’s farming assets such as its land, natural resources and diversity of
living organisms in the soil and also contribute to the monetary added value created in the country, which unfortunately has yet to achieve
reaching contemporary development goals despite being described as a country of agriculture. The main area of focus of this study, which
puts the organic farming community of Kırtık Village at the center, is the mechanism whereby all products and semi-products produced in
this village are directly supplied to producers and consumers; creating an organic chain. Ensuring the fair dissemination of wealth created
by the monetization of organic farming products; contributing to public health by promoting organic product awareness and increased
consumption of organic products at more reasonable prices, and creating opportunities for conducting agricultural practices in a
sustainable environment as a model that creates a value chain in Turkish agricultural production are the topics focused on in this study.
Keywords: Organic agriculture, organic farming, organic production, organic foods, organic bread, sustainable ecosystems
JEL Codes: M10
1.INTRODUCTION
Turkey is ranked 14th (EIU 2016: 5) on the Economist Intelligence Unit Index which lists countries according to their
agriculture sustainability, water footprint, pesticide and fertilizer usage, land ownership rights, sustainable agricultural
systems, biodiversity and farmer demographics. The index is based on 1500 strings of data obtained from the World Bank,
the Food and Agriculture Organization of the United Nations, Organisation for Economic Co-operation
and Development (OECD) and similar agencies (EIU 2016: 14).
In the nutrition problems category, which includes headings such as the ratio of overweight and obese individuals to the
general population or figures on undernutrition, insufficient child development, Turkey is ranked 19th (EIU 2016: 22). The
country is ranked 20th among 25 countries, when it comes to food waste (EIU 2016: 38).
The facts expressed in the findings of the Economist Intelligence Unit Fixing Food research, regarding Turkish agriculture,
are as follows:
When compared to the developed world, vast majority of man power is in the farming industry, in opposition
with the requirements of the times
Calcified soil, soil loss due to erosion
Soil in existing agricultural fields lose infertility, fertilizing only low-value products, due to uninformed and
uncontrolled usage
Unwanted agricultural produce (fruits and vegetables) are often rejected by export markets are sent back. They
are then consumed in the domestic market which contributes to higher numbers of cancer cases.
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DOI: 10.17261/Pressacademia.2017.510 12 PressAcademia Procedia
International indices show that, Turkey has regressed in the following areas in the recent period (Pamuk 2014: 297).
Biological diversity, and protection of ecosystems
Impacts of the inputs and technologies on the environment used in the agricultural sector
Development of clean and renewable energy resources
Turkey has opened up its most fertile fields for industrialization and urban development and it has fallen into a state where
it needs to import wheat to feed its domestic population, from being a land of agriculture in the past. However, in spite of
the bleak picture summarized above, today it seems there is a chance to take back farming fields, to add value to affordable
products, to empower farmers and encourage them to produce better quality products and to provide consumers healthier
fruits and vegetables at affordable prices. As part of this study, agriculture producers are encouraged to produce organic
products with high added value that will enrich them, while create an opportunity to expand organic fields and at the same
time making affordably priced and healthy food available for consumers. Good agriculture practices will come out of the
Kırtık Village Organic Cafeteria Project as an example of an organic chain.
2. THE IMPORTANCE OF ORGANIC AGRICULTURE WITHIN THE SCOPE OF CURRENT PROBLEMS OF TURKISH
AGRICULTURE
2.1. From Land of Agriculture to Wheat Importer
In 2005, a quarter of the Turkish population was employed in agricultural sector. In 2016 this figure had decreased to
18.3% (TUIK, 2016). For many years Turkey was considered “a farming nation” because of the weighted ratio of the
agricultural sector within the economy, and again for several years the country was known as a “self sufficient (NTV, 2016)
country in agriculture.
Especially in recent years, the opinion that Turkey is a land of agriculture doesn’t reflect the reality judging by the industry’s
weighted ratio in the economy, its added value; the level of product quality, and based on comparisons on with other
countries.
The percentage of the workforce employed in agriculture in European Union is around 4%. This figure has in Turkey lately
decreased below 20% but the sector’s contribution to national income is only around 7% (GTHB, 2017). An oft-quoted
analogy in the past years has been the situation The Netherlands, which is only as large as the surface are of Konya province
with a population of 17 million. The Netherland’s 2016 agricultural exports volume stood at EUR 85 billion (GN, 2017).
Turkey’s exports in the same period stood at only EUR 17 billion (TIM, 2017). It should also be recalled that Turkey’s
population is 80 million. These figures present striking evidence as to the unproductiveness of Turkey's farming industry.
Regarding the agriculture industry, another expression used to describe Turkey is that it's a “giant granary.” On the
contrary, Turkey imported 44,458 tons of wheat between the first month of 2008 and May 2009 (Radikal, 2009). In January
2017, Turkey announced a series of international tenders for importing wheat from EU countries (Hürriyet, 2017). This
applies not only to wheat, but to many other grains, vegetable oils, fruit and vegetable seeds and even livestock. Turkey
today is an importer in all of these categories. In addition to this situation, a significant amount of products often has to be
recalled due to residual pesticide.
A study by the Akdeniz University’s Food Security and Agricultural Research Center at local food markets in Antalya found
that in 2014 21 percent of 400 vegetable and fruit items contained pesticide residue (Cumhuriyet, 2015) that exceeded
legislative limits. 25 percent out of 309 fruit and vegetable items in 2013 contained pesticide residue above the limit set in
national regulations. It can be stated that the frequent rejection of Turkey’s exported goods by its major importing partners
seems to confirm the findings of this study. In recent years, in addition to political tension between the two countries,
Turkish many batches of fresh fruit and vegetable exports to Russia have been returned on the grounds that the products
were in violations of Russia’s health legislation standards and that the produce contained fruit flies. Turkey’s fruit and
vegetables exports falling from USD 875 million to USD 331 million (Ulker, 2017) (a 62 percent fall) in 2016 has not been
only a commercial loss. It has also contributed to increase in the frequency of several diseases, particularly certain types of
cancer, as most of the rejected produce is consumed domestically (Milliyet, 2017).
The problems plaguing Turkish agriculture such as the use of GMOs or the loss of 4 million hectares of agricultural land in
the past 27 years (Hürriyet, 2017), are no longer problems that only concern farmers. These have now become issues that
pose a major threat to the country’s habitat, its economy and general consumer health.
Agricultural fields in Turkey in general consist of several tiny parcels belonging to a number of proprietors; a situation
stemming from the country’s inheritance laws. This dispersed structure of agricultural fields increases production costs
while impoverishing the farmers; (Boztoprak, Demir, Coruhlu 2016, 75-86) hinders the application of modern farming
methods (Boztoprak vd. 2016) , and prevents the diversification of transportation routes, which in turn decreases the
farmers’ competitive power in global markets. Land consolidation (GTHB, 2015) policies are being implemented in recent
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years, but these have not achieved a significant improvement yet. Converting carbon dioxide from greenhouse
contaminants into productive elements; (Rifkin 2015: 86-87) creating new agricultural products that rely on cooperation
between computer and genetic technologies (Schwab 2016, 76) seem to be the only way to live up to the necessities of the
age of the Fourth Industrial Revolution. Unless such measures are taken, the gap between Turkish agriculture and
developed countries will continue to expand.
2.2. From Conventional Agriculture to Organic Agriculture
The rapid growth of the global population has necessitated the development of new methods and technologies to increase
agricultural production. The increase in agricultural productivity has been made possible by the employment of several
industrially produced agricultural inputs (synthetic fertilizers, synthetic chemical pesticides, etc.) in large amounts.
However, this method -- commonly referred to as conventional agriculture-- has had a negative impact on the environment
with chemical residues also contaminating underground water resources. This has now reached an extend threatening the
well-being of all species (ITO 1999: 1).
Therefore, in recent years the interest in bolstering productivity in agriculture, has focused on concerns regarding good
agricultural practices.
“Good agricultural practices” refer to “commitment to not harming the environment during agricultural production and/or
not causing harm to the well-being of humans and other species; conserving natural resources, and meeting agricultural
demand through safe practices that provide for sustainability and traceability (GTHB, 2014).
“Organic farming practices” refer to “raising or producing organic produce or inputs by using the soil, water, plants,
livestock and natural resources; the collection of produce from natural areas and resources and other processes whereby
the end-produce meets the consumer through harvesting, slaughter, processing, grading, packaging, labeling, conservation,
storage, transportation, marketing, import, exports and all other processing“ (GTHB, 2010).
According to the definition of the UN Food and Agriculture Organization (FAO) organic farming, is a type of production
aiming: “organic agriculture is a holistic production management system which promotes and enhances agro-ecosystem
health, including biodiversity, biological cycles, and soil biological activity. It emphasises the use of management practices in
preference to the use of off-farm inputs, taking into account that regional conditions require locally adapted systems. This
is accomplished by using, where possible, agronomic, biological, and mechanical methods, as opposed to using synthetic
materials, to fulfill any specific function within the system (FAO, 1999).
According to European Union (EU) “organic farming is an agricultural system that seeks to provide the consumer, with
fresh, tasty and authentic food while respecting natural life-cycle systems (EU, 2017). The European Union also, as part of
its “rural development plan 2014-2020” considers organic farming as an important instrument for the development of rural
areas in the Union (EU, 2017).
Conventional Agriculture to prevent losses in the amount of production due to diseases and pests, has traditionally used
agricultural and synthetic fertilizers to increase soil productivity, which has come to pose a significant threat not only to
environment and the soil, but also the well-being of human and animal species. Organic farming, unlike the conventional
agriculture, supports the ecosystem and the well being of humans and the soil (Tilman, Cassman, Matson, Naylor, Polasky
2002: 272).
According to a study on the impact of organic farming on biodiversity and productivity, organic farming practices increase
biodiversity in the soil by 30 percent in comparison with conventional agriculture (Bengtsson, Ahnstrom, Weıbull 2005:
265).
Considering the nature and human respecting aspects of organic agriculture, it is not difficult to assert that, organic farming
will be the only choice in the future for not only farmers but also consumers, who are the most directly influenced by the
diseases caused by conventional agriculture (FAO, 2004).
The use of chemicals, fertilizers, hormones used in the agricultural sector have begun to significantly affect human and
public health; increasing the frequency of various types of cancer and leading to higher rates of obesity and neurological
disorders (FAO, 2000).
Organic agriculture offers a system that has the highest degree of reliability due to traceability and control systems
overseen by certification bodies that include controls and checkpoints at each stage of production: starting from the
planting phase until the delivery stage to the end user; including during harvesting, processing, packaging, tagging, grading,
storage, transportation and other processes.
Eco-farming or bio-farming-- or to use the most common expression -- organic agriculture, doesn’t only have the potential
to put an end to the contamination of natural resources, the soil and dissemination of toxic materials to humans and animal
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species, but it also has the capacity to foster the conservation of the livelihood and the natural biological structure of the
soil, which in turn will contribute to the sustainability of soil fertility in Turkey and in the world.
Source: Sevinç Ateş, Nevşehir District, The Impacts of Different Fertilizer and Mulch Materials which can be used in Organic Strawberries
Farming on Productivity and Quality Properties, Ph.D Thesis unpublished, Adana, 2015, p.11.
According to 2014 data 1,9 million certified organic producers in 164 countries in the world used 37,5 million hectares of
land for organic farming practices. Comparing this data with 2007 data shows that the number of countries that are
practicing organic agriculture, has increased from 141 to 164; and the surface area allocated to organic farm has grown to
37.5 million hectares from 35 million hectares (Milliyet, 2017).
In the above chart organic agriculture fields are shown on a continental basis. According to the chart Oceania is ranked first
with 12.2 million hectares of land allocated to organic farming, followed by Europe (10,6 million hectares) ,Latin America
(6,9 million hectares) and Asia (3,7 million hectares).
The top three countries that have the largest organic farming lands are Australia (12 million hectares), Argentina (3,8
million hectares) and the USD (1,9 million hectares) (Ates, 2015).
According to the data from the Turkish Statistical Institute (TurkStat) the development of organic crop production in Turkey
is as follows:
Table 1: Organic Crop Production
Number of crops
Number of
farmers
Area(1)
Production
(Number)
( Number)
( Hectares)
(Tonnes)
2005
205
14 401
203 811
421 934
2006
203
14 256
192 789
458 095
2007
201
16 276
174 283
568 128
2008
247
14 926
166 883
530 224
2009
212
35 565
501 641
983 715
2010
216
42 097
510 033
1 343 737
2011
225
42 460
614 618
1 659 543
2012
204
54 635
702 909
1 750 127
2013
213
60 797
769 014
1 620 387
Ocenia Europe Latin
America Asia North
America Africa
Organic Agricultural Land 12.185.840 10.637.130 6.857.610 3.706.680 2.790.160 1.073.660
0
2.000.000
4.000.000
6.000.000
8.000.000
10.000.000
12.000.000
14.000.000
Figure 1: Total Surface Area of Organic Agricultural Land in the World
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2014
208
71 472
842 216
1 642 235
2015
197
69 967
515 268
1 829 291
Source: Ministry of Food, Agriculture and Livestock
(1)Wild production areas are included.
Source: TÜİK, http://www.tuik.gov.tr/UstMenu.do?metod=temelist, 2.04.2017
3. AGRICULTURAL PRODUCTION AND THE CREATION OF VALUE CHAIN
When compared with developed economies, Turkey is still far behind the desired level in terms of producing high value
added products. The percentage of high-tech commodities is only 2% in Turkey’s exports while this figure is 27 % in China,
18 % in South Korea and Switzerland, 17 % in USA and 16 % in Japan, France, Germany and Mexico. Moreover, according to
a bulletin prepared by the Antalya Chamber of Trade and Industry, while the worth of Turkish exports per kilogram was USD
1.34 in 2015, that number fell to USD 1.32 in December 2016 (ATSO, 2017).
We are faced with starker picture when we examine the dollar-worth per kilogram numbers for agricultural products. The
net worth per kilo for fruit and vegetable products is USD 0.98 and that figure can be as law as USD 0.49 in the case of fresh
fruit and vegetable exports ( ATSO, 2017).
Table 2: The Average Dollar Value Per KG in Turkish Exports
SECTOR
Ready-to-wear and garments
Leather and leather products
Hazelnut products
Tobacco
Automotive industry
Machine and machinery
Other industrial products
Textile and textile raw materials
Climatization industry
Ship and yacht building
Electric- electronic and services
Iron and non-iron metals
Carpets
Dried vegetables and products
Olive and olive oil
Water products
Ornamental plants and products
Furniture and paper products
Fruit and vegetable products
Chemicals and chemical products
Cereals and products
Fresh fruits and vegetables
Steel
Mining products
Cement, glass and soil products
Source: Antalya Chamber of Commerce and Industry http://www.atso.org.tr/detay/2/5/1/5309/atso-subat-ayi-meclis-konusmasi.html,
11.03.2017.
As the striking figures from the Antalya Chamber of Commerce indicate, Turkey, which has to export 2.7 tons of mining
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products per a mobile phone imported at USD 600, is getting behind in completing the transition to becoming a country
where it exports processed commodities instead of exporting natural resources without any industrial processing.
Creating a global value chain, producing high value-added products that have become brands, and conducting farming
activities employing a technological infrastructure in line with the necessities of the Information Age is an imperative that
needs to be fulfilled, albeit belatedly. At this point, two successfully implement value chain examples from the FAO provide
sufficient clues for how Turkey can achieve its own transformation.
“According to FAO, sustained value chains ensure economic sustainability by creating added value; social sustainability by
encouraging fairer distribution of the created added value and environmental sustainability by reducing the ecological
footsteps (Erol 2015: 43).
The first of the examples is the “Indian Potato Value Chain”, which includes changing the type of crop used in horticultural
production. When PepsiCo needed a different type of potato for its Frito Lay's, potato farmers started producing a new type
of potato which was better fit for chips production, although the switch increased their costs by 20 percent. This way, the
farmers’ profit rose by between 10 to 50 percent (Erol 2015: 45) in comparison with their traditional farming practices.
The second example of a successful value chain is from Central America: A group of US coffee buyers founded small
enterprises and cooperatives for the production of high quality coffee beans. The scheme secured good coffee for
consumers and contributed to exports of the countries involved. The scheme also led to the creation of many new jobs and
conservation of the environment thanks to the use of environmentally friendly farming methods. The Project, which started
with 3000 selected producers in 2003, had reached to include 6000 producers in 2009 (Erol 2015: 46).
4. KIRTIK VILLAGE ORGANIC CAFETERIA PROJECT
As in the success story of the Central America coffee value chain, the Organic Cafeteria Project for Kırtık Village aims to
achieve the creation of a value chain by using a similar approach through establishing direct consumer-producer and
producer producer links, in a relationship where the two sides will mutually foster each other.
It is of importance that one of the most well-established economics departments in Turkey, the Istanbul University’s
department of economics supports this project which focuses on the expansion of organic agriculture areas and increasing
supply of affordable organic food.
The project was launched in July 2015, in order to support over fifty certified organic producers of Kırtık Village, located in
the Burhaniye district of Balıkesir province.
The project initially consisted of supporting marketing efforts of individual farms, advertisement of their products, the
creation of a website (Kırtık, 2017) to this purpose and the managing of social media accounts. It has now reached a point
where its focus on now complete commercialisation of the organic agricultural products -- the unprocessed raw resource --
by branding and creating added value.
4.1. Purpose Of The Project
While the one arm of the project seeks to encourage local farmers to produce branded, functional and value added
products to increase their incomes (and as such contribute to the expansion of land used for organic agriculture), another
arm of the project focuses on improving public health by making available affordable and healthy foods through the efforts
of producers, and contributing to the expansion of organic produce. The third element in the project, production of organic
bread, will contribute to the producer-consumer chain.
Increased level of welfare, due to branded and commercialized quality products, will lead to higher contribution of the
agricultural sector to the economy. Higher income levels will not only motivate the farmers to produce more organic, but
they will also eliminate the pressure of migration to cities.
On the contrary, migration to villages will change organic agricultural areas; turning them into centers of attraction. We will
likely see a considerable increase in employment in the region. .
The development of organic production motivated by the raised income levels caused by branded products which are ready
to compete in foreign markets, will not only lead to soil conservation; water quality and energy conservation; higher
biological diversity (Allen, Kovach 2000, 223) but it will also positively contribute to improving public health as the most
important incentive among the “ten reasons to consume organic foods’’ (Boyacıoglu, 2002) as listed by the Organic
Consumers Association.
4.2. Phases of the Project
The project has first focused on production, rather than selling products by promising minimum purchase quotas.
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Subsequently, the organic fields which are only used in the summer will be prevented from staying idle, which will allow the
production of new crops, which in turn will ensure full capacity usage of organic fields and also provide additional income to
farmers.
Bread has a special place in Turkish cuisine. Due to an increase in the use of genetically modified wheat and additive agents
and preservatives, bread consumption is increasingly threatening public health (Boyacıoglu, 2002). For this reason, bread
will play an important role in encouraging people to get into the habit of feeding organically, and later in maintaining that
habit. To this end, through interaction bakeries producing bread from non-GMO organic wheat and employing traditional
sourdough (probiotic) methods; cakes, muffins, and other snack foods will be produced and sold at reasonable prices,
particularly in school cafeterias.
The organic bakery, which comprises the third phase of the project, will also have the role of a ready market, in which the
certified organic products, primarily olive oil, produced in the organic village will be marketed.
Academics will be in the first target audience for marketing of the products, considering this group’s income level and
awareness of organic eating. Academic staff will be informed via e-mails and brochures about the assortment, which they
will be able to order online. Students working in the project on a part time basis will meet their orders.
The most important stage of the project is the construction of a dehydration to enable the storage, transportation and
subsequently the commercialization of organic raw foods. The building constructed by Burhaniye Municipality in the village
for this purpose, will be furnished with vegetable-fruit slicing machines, as well as dehydration equipment and packaging
facilities.
Following this phase, an olive oil plant will be constructed for squeezing olives and bottling of the olive oil; another major
product of the village.
Later on, the brand which will be created will carry the location label and the name of the village, which will help jumpstart
rural tourism in the village. With this purpose, in order initiate organic tourism, bungalows will be erected in the subject
field which will be leased from the Ministry of Forestry. The visitors who join tours of the village will be given information
about organic agriculture and shown the activities. The income earned will go to seasonal agricultural training and sports
activities for students and the disabled.
In the future phases of the projects, one of the plans is to help neighboring villages transition to organic farming with the
organic chain starting to function, in order to help expand the area of organic fields and to ensure that these villages are
also included in the chain. Funds that will be derived from income earned from organic activities will be used to this end.
Farmers from the newly included villagers will attend training and later practice farming in the Kırtık village, during which
the participants will be supported financially by means of the above mentioned funds. The organic chain, ever growing with
the inclusion of more new villages, will eventually contribute significantly to achieve rural development.
5. CONCLUSION
This study focuses on a project, which was developed to overcome the difficulties stemming from recession felt in every
facet of Turkish agriculture, despite the country’s misleading fame as a country of agriculture. The project includes activities
to reverse the recession in agriculture by encouraging organic farming efforts; helping to restore the health quality of
produce (which has significant adverse effects on public health), eliminating factors that degrade soil, water, air quality and
biodiversity and by contributing to sustainability of the environment.
The village of Kırtık, in Balıkesir, Burhaniye-- the location of the Organic Cafeteria Project where fifty certified organic
farmers participate -- will likely become the biggest organic village of Turkey. By establishing a fruit and vegetable
processing facility and distributing the dried and packaged produce as affordable and nutritious snacks first to students and
staff healthy; the project seeks to eventually extend the organic chain to a wider population with the creation of organic
sales points.
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This study emphasizes renewable energy source use's effects on productivity, competitiveness, and growth. The hypothesis of the study was tested with panel data analysis on European and Central Asian countries. Panel data analysis covered 15 Eurasian countries with data from 1990-2014. In our hypothesis, renewable energy use increases income by increasing efficiency in production. The model established reveals the difference between various energy types and renewable energy. Analysis outputs support the study hypothesis. According to the results, the increase in the share of renewable energy use in total energy use affects per capita income positively. On the other hand, an increase in the share of fossil fuels decreases per capita income. Our study suggests that countries aiming for better economic growth should increase their use of renewable energy.
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Observers of agriculture and theenvironment have noted the recent remarkable growth ofthe organic products industry. Is it possible for thisgrowth in the organics market to contribute toprogressive environmental and social goals? From theperspective of green consumerism, the organics marketis a powerful engine for positive change because itpromotes greater environmental awareness andresponsibility among producers and consumers alike.Given its environmental benefits and its ability touse and alter capitalist markets, organic agricultureis currently a positive force for environmentalism.Still, there are contradictions between organic idealsand practice – e.g., the reductionism of organicstandards, the limitations of private organiccertification, and the widespread practice ofinput-substitution – that emerge through thedynamics of the capitalist market. As the marketmatures, these contradictions will increasinglyundermine the very environmental benefits that are thefoundation of organic agriculture. Fundamental change,therefore, is not likely to occur through the marketalone. There are ways, however, that the organicsmarket could contribute to a broader movement leadingto collective action. For instance, the organicsmarket tends to undermine commodity fetishism in theagrifood system, thereby strengthening civil society.In addition, the market provides space and resourcesfor social movement activity, such as in the struggleover the National Organic Standards.
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