The challenge of organic rice: production and market

29/07/2024

In recent years, organic agricultural production has enjoyed a steady public interest and a growing consumer base, which has led producers to investigate whether it’s viable to expand this sector of production.

Rice production is no exception, and the challenge of producing organic rice is particularly interesting.

Size and growth of the organic market in Italy

The data^[1] on the organic market in Italy is promising. In 2023, the domestic market for organic products reached 5.4 billion euro, with significant growth in out-of-home consumption in particular. Compared to 2021, when organic growth had stalled due to Covid-19 and the related increase in commodity prices, this specific sector has recorded a notable 18% increase.

Exports were also affected by this trend. sales of Italian organic products abroad increased by 8% from the previous year, reaching 3.6 billion euro.

These trends are reflected in consumer interest. Despite inflation and rising prices, spending intentions are increasingly leaning toward this type of product, so much so that 90% of Italians between the ages of 18 and 65 report having intentionally purchased at least one organic product in 2023.

Safety, sustainability, and respect for the environment are the main reasons Italian consumers choose to buy organic products. In addition, there is a growing interest in products that reflect an Italian identity and dietary preferences, such as 100% plant-based or allergen-free products.

What is organic rice production?

The rice market must take these aspects into account, and many rice producers have positioned themselves accordingly.

Mundi Riso is no exception and emerges as one of the most committed companies in this respect. It has been producing organic rice for many years now and has been certified since 2005. All Mundi Riso products are offered in an organic, as well as sustainable, version.

For the uninitiated, being certified organic means following the standards set by Regulation (EC) No. 834/2007 and Regulation (EU) 2018/848, which establish the conditions for the production, labeling, and control of organic products.

To obtain organic certification in Italy, rice producers must apply to an authorized certifying body and fulfil several specific requirements regarding farming practices, chemical substance use, and environmental management.

Sustainable agricultural practices

To meet the criteria for organic certification, rice producers must adhere to strict agricultural practices that support sustainability and respect the environment.

Crop rotation is essential to maintain soil health and prevent resource degradation. Legumes should be part of the rotation cycle to improve soil fertility through natural nitrogen fixation.
The use of synthetic pesticides and fertilizers is prohibited. Only natural products or products approved for use in organic farming can be used for pest management and fertilization.
Pests and diseases should be controlled through biological and mechanical methods, avoiding the use of harmful chemicals.

Environmental management

Scrupulous control of the growing environment is critical to preserving biodiversity.

Agricultural practices should promote and protect local biodiversity, including the use of traditional and local seeds where possible.
Because rice is a water-intensive crop, irrigation practices must be efficient and sustainable to reduce the impact on the local environment.

Use of seeds and plant propagating material

For production to be considered organic, the seeds used must be of identifiable provenance and, in turn, be organic.

The seeds used must also be certified organic, unless they are unavailable on the market. In such cases, temporary exceptions may be granted.
The use of genetically modified organisms at any stage of production is strictly prohibited.

Traceability and labeling

Traceability and labeling are two other key aspects for a production to be considered organic.

All stages of production, from planting to harvesting, must be documented to ensure full product traceability.
Products should be clearly labeled as organic and include origin and producer information. The label must show the EU organic logo and the code of the certifying body.

Certification and inspections

Certifying bodies are also in charge of monitoring compliance with the requirements after certification has been obtained.

Licensed certification bodies conduct annual inspections to ensure ongoing compliance with organic standards.
Producers must maintain detailed records of all farming practices and business transactions.

Regional and national standards

In addition to EU standards, producers must comply with local and national regulations, which may include additional restrictions or specific requirements for growing organic rice.

Future prospects for organic rice production

Looking ahead, organic rice in Italy seems destined for a path of growth and consolidation. The current market trends, characterized by a steady increase in both domestic consumption and exports, reveal a robust and expanding demand for organic products. This phenomenon is boosted by a growing awareness among consumers, who are increasingly directing their choices toward safe, sustainable, and environmentally friendly foods – attributes that organic rice embodies perfectly – even if it means spending more.

The challenges associated with organic production, such as the need to meet stringent regulations and implement sustainable farming practices, exist but are offset by the opportunities it offers. Investing in this sector means contributing to protecting the environment as well as gaining a favorable position in a market that rewards quality and integrity. For this reason, Mundi Riso’s decision to embrace sustainability and organic production was forward-thinking and seems destined to pay off for the company.

^[1] Market survey conducted as part of the Being Organic in EU project, promoted by FederBio in collaboration with Naturland DE and co-funded by the EU under Reg. (EU) no.1144/2014.