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Organic Labelling Influencing Consumerism in China and Thailand: A Case for Collaborating with Mature Organic Economies

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Regulatory Issues in Organic Food Safety in the Asia Pacific
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Abstract

Consumers are interested in buying organic food products from countries where there is a reputation for organic quality and standard through the certification process. Countries like Australia, New Zealand and Canada have been well-known generally for high-quality organic food production and distribution through maintaining stringent standards in organic accreditation and certification from paddock-to-plate, or farm-to-table. It appears that an unconscious factor is also at play in influencing consumer motivation and behaviour in buying organic – trust in certification labelling. Here, consumers have to trust the organic foods that they buy are genuinely organic. A large contributing factor lies in organic food labelling including the country-of-origin labels (COOL) in organics. This Chapter will argue the case for (1) creating consumer trust in locally produced organic food in Thailand and China through implementing a regulatory framework for organics that can induce confidence in consumer behaviour; and (2) encouraging mature organic economies like Australia, New Zealand and Canada to capitalize on the country-of-origin labels in organic food confidence in order to increase their organic export trade to China and Thailand.

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Notes

  1. 1.

    Definition is derived from Australian Certified Organic: https://aco.net.au/Pages/Operators/ACOStandards.aspx

  2. 2.

    Katesuda Sitthisuntikul, Pradtana Yassuck and Budsara Limnirankul, ‘How does organic agriculture contribute to food security of small land holders?: A case study in the North of Thailand’ in (2018) 4:1429698 Cogent Food and Agriculture 1, 2; Pittawat Ueasangkomsate and Salinee Santiteerakul, ‘A study of consumers’ attitudes and intention to buy organic foods for sustainability’ in (2016) 34 Procedia Environmental Sciences 423, 425.

  3. 3.

    Warispas Jiumpanyarach, ‘The Impact of Social Trends: Teenagers’ Attitudes for Organic Food Market in Thailand’ in (2018) 45 (4) International Journal of Social Economics 682; Warunpun Kongsom and Chaiwat Kongsom, ‘Consumer Behaviour and Knowledge on Organic Products in Thailand’ in (2016) 10 (8) World Academy of Science, Engineering and Technology International Journal of Economics and Management Engineering 2612, at 2614.

  4. 4.

    Song Bee Lian, ‘The Effectiveness of Organic Certification Logos in influencing Consumer’s Attitudes to Purchase Organic Food’ in (2017) 12 (2) Journal of Engineering and Applied Sciences 301–306, at 301.

  5. 5.

    Yaowarat Sriwaranun, Christopher Gan, Minsoo Lee and David A. Cohen, ‘Consumers’ Willingness to Pay for Organic Products in Thailand’ in (2015) International Journal of Social Economics 480–510; Lijia Wang, Jianhua Wang and Xuexi Huo, ‘Consumer’s Willingness to Pay a Premium for Organic Fruits in China: A Double-Hurdle Analysis’ in (2019) 16 International Journal of Environmental Research and Public Health 126–140.

  6. 6.

    Warunpun Kongsom and Chaiwat Kongsom, note 3, at 2616.

  7. 7.

    Rhiannon Christie (ed), Australian Organic Market Report 2018, Australian Organic Ltd, 2018, 3.

  8. 8.

    Ibid.

  9. 9.

    Ibid.

  10. 10.

    Tanmoy Mathur (ed), The Indian Organic Market: A New Paradigm in Agriculture, Ernt & Young LLP, 2018, 10.

  11. 11.

    This has led to an environmental movement from the 1960s to our current state of a climate emergency. See the impactful work by Rachel Carson, Silent Spring, Houghton Mifflin, Boston, 1962.

  12. 12.

    See, for example, Thai media article: https://www.adb.org/results/helping-farmers-go-organic-thailand

  13. 13.

    See, generally, F.H. King, Farmers of Forty Centuries: Organic Farming in China, Korea and Japan, Dover Publications, (Dover Edn) 2004.

  14. 14.

    Yuhui Qiao, “Organic Agriculture Development in China” in H Willer and L Kilcher (eds), The World of Organic Agriculture: Statistics and Emerging Trends 2011, IFOAM Bonn and FiBL Frick, 2011, 132–136, at page 132.

  15. 15.

    EU-China Trade Project, Report on “Organic Agriculture in China: Current Situation and Challenges” May 2008, at page 4.

  16. 16.

    Huichen Gao, Hong Park and Akihiko Sakashita, ‘Conventionalization of Organic Agriculture in China: A Case Study of Haobao Organic Agricultural Company in Yunnan Province’ in (2017) 19 Japanese Journal of Agricultural Economics 37–42, at page 37.

  17. 17.

    Yumei Xie, Hailei Zhao, Karolina Pawlak and Yun Gao, “The Development of Organic Agriculture in China and the Factors Affecting Organic Farming” in (2015) 2(36) Journal of Agribusiness and Rural Development 353–361, at page 353–354.

  18. 18.

    http://p.china.org.cn/2017-08/24/content_50003182.htm

  19. 19.

    Pasupha Chinvarasopak, ‘Key Factors Affecting the Success of Organic Agriculture in Thai Communities: Three Case Studies in Ubon Ratchathani and Srisaket Provinces’ in (2015) 13(2) Thai Journal of Public Administration 105–130, at page 108.

  20. 20.

    Yaowarat Sriwaranun et al., note 5, at pages 480–481.

  21. 21.

    Ibid.

  22. 22.

    See Arpaphan Pattanapant and Ganesh P. Shivakoti, “Opportunities and Constraints of Organic Agriculture in Chiang Mai Province, Thailand’ in (2009) 16 Asia-Pacific Development Journal 115–147. In this connection, the author wishes to express her gratitude to the Faculty of Law, Chiang Mai University, for organising beneficial visits to organic farms and organic markets in November 2018 on field trips to Mae Tha Sub-District in Chiang Mai Province, Thailand. In particular, grateful thanks are extended to Dr Nuthamon Kongcharoen at the Law Faculty who accompanied the author on these field trips.

  23. 23.

    Pasupha Chinvarasopak, note 19, at page 107.

  24. 24.

    Yaowarat Sriwaranun et al, note 5, at page 481.

  25. 25.

    See, for example, media posts on Beijing in China ‘Return to Organic Farming: Next Generation of Chinese Farmers’: http://www.xinhuanet.com/english/2019-02/07/c_137805072.htm; ‘Meet the woman leading China’s new organic farming army’: https://www.aljazeera.com/indepth/features/2015/11/woman-leading-china-organic-farming-army-beijing-151123140338900.html; Johor Bahru in Malaysia about FOLO and Medini Green Parks: https://vulcanpost.com/624248/malaysia-social-enterprise-folo-farms/; https://theaseanpost.com/article/organic-farming-southeast-asiaว Thailand and ASEAN generally: https://www.adb.org/results/helping-farmers-go-organic-thailand

  26. 26.

    Ibid; M Canavari, N Cantore, E Pignatti and R Spadoni, ‘Role of Certification Bodies in the Organic Production System’ in Rainer Hass, Maurizio Canavari, Bill Slee, Tong Chen and Bundit Anugugsa (eds), Looking East, Looking West: Organic and Quality Food Marketing in Asia and Europe, Wageningen Academic Publichers, Wageningen, 2010, at 86.

  27. 27.

    Ibid, at 85; Yaowarat Sriwaranun et al, note 5, at 481.

  28. 28.

    Lijia Wang, Jianhua Wang and Xuexi Huo, note 5, at 136.

  29. 29.

    Martin J in Marsh v Baxter (2014) 46 WAR 377. For an insightful academic exposition, see Christina Do, ‘Organic Food Labelling in Australia: A ‘Murky Environment’ in Need of Reform’ in (2015) 34(1) University of Queensland Law Journal 123.

  30. 30.

    See Food Standards Australia and New Zealand Act 1991 (Commonwealth).

  31. 31.

    Australia New Zealand Food Standards Code, Standard 1.1.1.

  32. 32.

    See Standards Australia, Australian Standards 6000–2009 Organic and Bio-Dynamic Products.

  33. 33.

    Do, note 29, at 126.

  34. 34.

    https://www.agriculture.gov.au/ag-farm-food/food/organic-biodynamic

  35. 35.

    Andrew Lawson, Amy Cosby, Derek Baker, Shawn Leu, Ed Lefley, Amarjit Sahota and Nick Bez, ‘Australia’ in Helga Willer and Julia Lernoud (eds), The World of Organic Agriculture : Statistics and Emerging Trends 2019, Research Institute of Organic Agriculture (FiBL), Frick, and IFOAM Organics International, Bonn, 2019, at page 298.

  36. 36.

    The Australian Consumer Law is contained in Schedule 2 of the Competition and Consumer Act 2010.

  37. 37.

    https://www.agriculture.gov.au/export/controlled-goods/organic-bio-dynamic

  38. 38.

    Pongthai Thairotin, Kiyokazu Ujiie and Hisato Shuto, ‘An Evaluation of Consumers’ Preference on Food Safety Certificates and Product Origins: A Choice Experiment Approach for Fresh Oranges in Metropolitan Bangkok, Thailand’ in (2015) 24 (2) Agricultural Information Research 74–80.

  39. 39.

    The 2016 Standard was made under Section 134 of the Australian Consumer Law, contained in Schedule 2 of the Competition and Consumer Act 2010 (Commonwealth).

  40. 40.

    See Australian Competition and Consumer Commission, ‘Country of Origin Claims and the Australian Consumer Law’, March 2019; Australian Competition and Consumer Commission, ‘Country of Origin Food Labelling Guide’, March 2019.

  41. 41.

    See Wimalin Rimpeekool, Sam-ang Seubsman, Cathy Banwell, Martyn Kirk, Vasoontara Yiengprugsawan and Adrian Sleigh, “Food and nutrition labelling in Thailand: a long march from subsistence producers to international traders” (2015) 56 Food Policy 59–66.

  42. 42.

    Japan: Food Labelling Act and the Labelling Standards Ordinance; Malaysia: Food Act 1983 and Food Regulations 1985; Vietnam: National Standard on Organic Agriculture issued by the Ministry of Science and Technology in December 2017 (No. TCVN11041:2017) with labelling requirements covered under Part 1.

  43. 43.

    Yaowarat Sriwaranun et al, note 5, at page 504.

  44. 44.

    Sinne Smed, Laura M Andersen, Niels Kaergard and Carsten Daugbjerg, ‘A Matter of Trust: How Trust Influence Organic Consumption’ in (2013) 5 (7) Journal of Agricultural Science 91–106, at 93.

  45. 45.

    P Pomsanam, K Napompech and S Suwanmannepong, ‘Factors Driving Thai Consumers’ Intention to Purchase Organic Food s ’ in (2014) 7 (4) Asian Journal of Scientific Research 434, 442.

  46. 46.

    Sinne Smed et al, note 44, at page 101.

  47. 47.

    On a relevant study in relation to Thailand and China, see Susanne Pedersen, Jessica Aschemann-Witzel and John Thorgesen, ‘Consumer Evaluation of Imported Organic Food Products in Emerging Economies in Asia’, International Food Marketing Research Symposium, Dubrovnik, Croatia, 2017. See also media article on Australian organic food products: https://www.intheblack.com/articles/2017/09/01/organic-food-demand-australia

  48. 48.

    Ibid; See also John Thorgesen, Susanne Pedersen, Maria Paternoga, Eva Schwendel and Jessica Aschemann-Witzel, ‘How Important is Country-of-Origin for Organic Food Consumers? A Review of the Literature and Suggestions for Future Research’ in (2017) 119 British Food Journal 542–557, at page 550.

  49. 49.

    See Shijiu Yin, Fei Han, Yiqin Wang, Wuyang Hu and Shanshan Lv, ‘Ethnocentrism, Trust and the Willingness to Pay of Chinese Consumers for Organic Labels from Different Countries and Certifiers’ in (2019) Journal of Food Quality 1–13, at pages 10–11.

  50. 50.

    Such mutual recognition may be variously known as ‘mutual equivalency’ in Canada or ‘mutual authentication’ in Japan.

  51. 51.

    See Diane Bowen (in collaboration with Ulrich Hoffmann), “Plurilateral Regulatory Cooperation on Organic Agriculture and Trade”, UNFSS Discussion Paper No.5, April 2015, United Nations: United Nations Forum on Sustaibility Standards, at pages 2–3.

  52. 52.

    Trans-Tasman Mutual Recognition Arrangement with effect from 1998: http://www.agriculture.gov.au/import/goods/food/importing-food-from-new-zealand

  53. 53.

    https://ec.europa.eu/agriculture/newsroom/82_en

  54. 54.

    Government of Canada - Canadian Food Inspection Agency: https://www.inspection.gc.ca/food/requirements-and-guidance/organic-products/equivalence-arrangements/eng/1311987562418/1311987760268

  55. 55.

    Further reference may be made to the co-authored Chapter 14 on New Zealand by Tracey Epps and Danae Wheeler in this edited volume.

  56. 56.

    See http://english.cnca.gov.cn/news/201612/t20161213_53011.shtml; See also http://www.oanz.org/news/22/24/China-and-New-Zealand-sign-organic-products-mutual-recognition-deal.html

  57. 57.

    Ibid.

  58. 58.

    See http://www.chinadaily.com.cn/china/2017-03/22/content_28634556.htm

  59. 59.

    See https://ec.europa.eu/agriculture/newsroom/82_en; Alberto Scorzon, Bernd van der Meulen and Li Jiao, ‘Organics in Chinese Food Law’ in (2014) 3 European Food and Feed Law Review 179.

  60. 60.

    Snyder, Francis and Ni, Lili, Three Faces of China – EU Cooperation, from the Beijing Olympics to One Belt, One Road (April 24, 2018). European Union Academic Programme – Macau Bi-annual Conference, ‘60 Years after the Treaties of Rome: What is the Future for the European Union?’, Faculty of Law, University of Macau, 27–28 November 2017; Peking University School of Transnational Law Research Paper No. 18–8. Available at SSRN: https://ssrn.com/abstract=3167981, at 14–25.

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GOH, B.C. (2020). Organic Labelling Influencing Consumerism in China and Thailand: A Case for Collaborating with Mature Organic Economies. In: GOH, B., Price, R. (eds) Regulatory Issues in Organic Food Safety in the Asia Pacific. Springer, Singapore. https://doi.org/10.1007/978-981-15-3580-2_3

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