As an illustration, while the world's total organic market for 2000 was around US$ 16 billion, it increased to about US$ 19 billion in 2001. The market in the United Kingdom increased by more than one third in 2000/2001 according to a Soil Association report, while it increased by up to 15 per cent in 2001/2002. In Asia, particularly Japan, the market for “green products”, including organic food, was estimated at US$ 2-2.5 billion. As defined by JAS, the Japanese market for certified organic food was US$ 250 million maximum in 2000. Retail sales were estimated to reach US$ 350-450 million in 2003 with the long term potential being much greater.

Organic farming aims to create a farming system that is sustainable through practices that avoid or largely exclude the use of synthetically compounded fertilizers and pesticides. To the maximum extent feasible, organic farming systems rely upon crop rotation, crop residues, animal manures, legumes, green manures, off-farm organic wastes, mechanical cultivation, mineral-bearing rocks, and aspects of biological pest control to maintain soil productivity, to supply plant nutrients, and to control insects, weeds and other pests. Also, they do not use genetically modified organisms or GMO's.

Soybeans are relatively easy to produce using organic methods. However, it is important to recognize that organic farms rarely focus on a single crop. Organic soybeans are best grown in rotation with several other crops that (ideally) complement or compensate one another. Market premiums are a significant motivating factor for transitioning to organic production. In the US, the market for organic soybeans has appeared especially attractive. Farm gate prices for cleaned 'Vinton' organic soybeans ranged from US$ 17 to US$ 20 per bushel during most of the first quarter of 2002. During that same period, clear-hilum soybean prices ranged from US$ 11 to US$ 14, while conventional prices are about US$ 5.25 (Frerich, 2003)

The development of soybean organic farming has begun in the USA. Production practices are carried out on over 70,000 of the 1.8 million farms in the U.S. today. Experience has indicated that organic soybean yields are usually comparable to those obtained under conventional management. Legume hay yields might also be comparable to conventional yields, though less information exists to confirm this. Often, however, organic production costs are lower and cancel out lost revenues due to yield reduction, even when organic crops are marketed through conventional channels (Frerich, 2003).

A simple partial budget analysis indicates that soybean organic farming is more profitable compared to conventional soybean farming. Although the total cost of organic farming (US$ 104/acre) is higher than that of conventional farming (US$ 96/acre), its higher price causes the total gross margin to be much higher so that total added value, in turn, becomes higher. The total gross margin gained from GMO soybean is around US$ 161.25/acre, while that of organic soybean is around US$ 386 (Frerich, 2003).

Soybean organic farming could be an alternative to increase the income of farmers in Asia. Technically, the practices of organic farming, i.e. rarely focusing on a single crop, are common practices in less developed countries, such as in Asian countries. Soybean cultivation in Asia is a part of a crop rotation system to optimize the use of land and to reduce technical and market risks. Lack of capital and the relatively high prices of fertilizer and pesticides increase the opportunity of organic farming practices in developing countries, such as in Asia and the Pacific region. This condition is expected to attract poor farmers to practice soybean organic farming. To realize this, poor farmers have to increase their capacity in organic farming and to access the market of soybean organic farming.

Rewrite by Wayan R. Susila, CGPRT Centre, Bogor, Indonesia.
( References available upon request)