the canadian organic sector agriculture in canada aafc... · the canadian organic sector canadian...
TRANSCRIPT
![Page 1: The Canadian Organic Sector Agriculture in Canada AAFC... · The Canadian Organic Sector Canadian Organic Growers (COG) Canada Organic Trade Association (COTA) Laura Telford & Matthew](https://reader034.vdocument.in/reader034/viewer/2022042619/5a705b577f8b9abb538bde21/html5/thumbnails/1.jpg)
The Canadian Organic
Sector
Canadian Organic Growers (COG)Canadian Organic Growers (COG)
Canada Organic Trade Association (COTA)
Laura Telford &
Matthew Holmes
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� COG is a not for profit charitable organization with 11 chapters across the country and four affiliated regional organic organizations
� Funding comes from members, governments, foundations and publications salesfoundations and publications sales
� COG’s mandate is to lead local and national communities towards sustainable organic stewardship of land, food and fibre while respecting nature, upholding social justice and protecting natural resources.
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� Membership-based not for profit organization founded as North American in 1985, now distinct U.S. and Canadian affiliates
� COTA represents Canadian organic sector members from producers through to retail
◦ Strong representation of processors/brands and exporters
◦ also represents non-food and emerging organic sectors (aquaculture, textiles & fibre, cosmetics)
� Funding comes from members and program delivery, workshops and other events
� COTA’s mission is to promote and protect the growth of organic trade to benefit the environment, farmers, the public and the economy
� Canada Brand partner
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� Organic Agriculture Centre of Canada
� Organic Federation of Canada
� Canadian Organic Growers
� Canada Organic Trade Association
� Canadian Health Food Association
� Regional Associations:� Regional Associations:◦ COG Growers of Organic Food Yukon
◦ COABC
◦ Organic Alberta
◦ Manitoba Organic Alliance & COG Organic Food Council of Manitoba
◦ Organic Council of Ontario and 6 ON COG chapters
◦ Table Filière, FABQ, Equiterre
◦ ACORN, COG NB
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� Organic agriculture is a holistic production system designed to optimize productivity and encourage diversity in the agro-ecosystem, including soil microorganisms, plants and animals
� The principal goal of organic production is to develop enterprises that are sustainable and harmonious with the environment
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� No synthetic chemicals including pesticides, fertilizers, hormones, and antibiotics
� No genetically-modified organisms (GMO’s)
� No irradiation
No sewage sludge� No sewage sludge
� No synthetic processing substances, aids and ingredients, and food additives including sulphites, nitrates and nitrites
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� Water source protection
� Soil protection
� Biodiversity protection� Biodiversity protection
� Climate change
mitigation
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� Organic farmers have lower input costsSource: Leopold Center for Sustainable Agriculture
Average Returns LTAR IOWA 1999 - 2001
600
0
100
200
300
400
500
600
C-Sb
Conv
C-Sb-O
Org
C-Sb-O-A
Org
Production System
US $ per acre Corn
Soybean
Oat
Alfalafa
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� Organic products command a price premium
� Diverse crop rotations can reduce financial risk
� Improved organic matter and microbial activity � Improved organic matter and microbial activity mean improved yields and crop quality during poor weather years�organic farms are highly resilient
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Organic agriculture is:
� practiced in 160 countries
� 1.8 million farmers� 1.8 million farmers
� 37 million ha of land
� $55 million in sales ($U.S.) in 2009
Source:
International Federation of Organic Agriculture Movements
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Certified Organic Farms in Canada 1992-2009
3000
3500
4000
4500
3914
Source: COG Certified Organic Production reports
data collected and analyzed by Anne Macey
0
500
1000
1500
2000
2500
3000
92 93 94 95 95 97 98 99 00 01 02 03 04 05 06 07 08 09
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Source: Certified Organic Production in Canada 2009
Anne Macey for Canadian Organic Growers
800
1000
1200
0
200
400
600
YK BC AB SK MB ON QC NB NS PEI NF
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Source: Certified Organic Production in Canada 2009
Anne Macey for Canadian Organic Growers
Organic Hectares in Canada
600000
700000
800000
0
100000
200000
300000
400000
500000
2003 2004 2005 2006 2007 2008 2009
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Source: Certified Organic Production in Canada 2009
Anne Macey for Canadian Organic Growers
300
350
400
450
500
0
50
100
150
200
250
300
YK BC AB SK MB ON QC NB NS PEI NF
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Source: The Nielson Company for AAFC, Feb 2009
� $2 billion through all retail channels
� 925.8 million sold through conventional retail
� 100% increase from 2006 (OACC: $1 billion)� 100% increase from 2006 (OACC: $1 billion)
� Estimated direct to consumer sales of $400 million
� Estimated other channel sales $712 million
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Packaged & Prepared (15%)
Meat, Fish, Poultry (1%)
Beverages (18%)
Dairy & Eggs (13%)
Bread & Grains (12%)
Fruit & Vegetables (41%)
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Source: The Nielson Company for AAFC, Feb 2009
Interesting to note
the top four
categories are
Canadian, or
products we are
highly competitive highly competitive
in: in both
production &
manufacturing
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Source: The Nielson Company for AAFC, Feb 2009
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$50,000,000
$100,000,000
2007 2008
2009 2010
$154,387,967 in 2009
$147,177,274 in 2010
Source: StatsCan and AAFC HS Code Data, December 2010
$0
$50,000,000
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Source: The Nielson Company for AAFC, Feb 2009
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Source: The Nielson Company for AAFC, Feb 2009
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We lack data on exports�Beginning this month we will have U.S. data on
imports from Canada
Principal organic exports (and capabilities)�wheat, cereals, pulses
�oilseeds, soy, flax �oilseeds, soy, flax
�maple syrup
�berries
�wild crops, wild rice (mushrooms)
�specialty products: hemp
�(cattle / beef, pork)
�(seed)
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COTA is AAFC’s partner under AMP program
Key LTIS findings:
�Fresh fruit and vegetables dominate the organic food market in every country
�Dairy products are in high demand in all target markets�Dairy products are in high demand in all target markets
�Packaged and prepared convenience foods in all target markets have strong current demand and future potential
�Opportunities in all target markets for bulk ingredients to processors
�A fundamental shift in distribution is taking place that represents both opportunity and challenge for Canadian organic producers
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GERMANY
� Largest organic food market in EU
� World’s #2 importer of agricultural products
� 2008 Sales - $8 billion
� Major shift in Germany toward consolidation and large scale retail
UNITED STATES
� World’s #2 market for organic food products
� 2008 Sales - $25 billion
� Fresh fruits and vegetables represent more than 36% of total organic demand, beverages and dairy products combine to make up another third
retail
NETHERLANDS
� Relatively small player in EU
� 2008 Sales - $836 million
� Major role as a distribution hub
� Home to three of five largest EU importers of organic food ingredients
another third
� Specialty retail an important channel with over 1/3 market share
� US remains the major export market for Canadian organic products
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� Competent authority: CFIA
� OPR passed in 2006; in force June 30, 2009
� Stream of Commerce policy ends June 30, 2011
� Applies to products that cross provincial and international boundaries
� BC, MB and QC have enacted laws governing intraprovincial sales
� Regulation through reference
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� Use of the label is voluntary
� Products containing >95% certified organic ingredients can label as organic + logo
� Products >70% organic can can be labelled with a percentage claim (70-95%)
� Products <70% organic can name organic ingredients in ingredients list
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� Strict code of principles that govern farm and processing practices
� Two standards: CAN/CGSB 32.310 (principles) and CAN/CGSB 32.311 (permitted substances)
Developed by industry through a Canadian General � Developed by industry through a Canadian General Standards Board process in 1999
� Voluntary until 2009
� CGSB owns and maintains the standards through cost recovery
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� AAFC paid for the development & maintenance up until June 2009
� CFIA has taken over the maintenance, but funding is now on hold
� In June 2009, these became legal standards through reference in the OPR
� SIC funded by CFIA to provide standards interpretation
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� 5 recognized Conformity Verification Bodies (3 Canadian)
� 21 Certifying Bodies accredited by CFIA
Mandatory annual audits for operators� Mandatory annual audits for operators� farmers, processors, handlers
� optional for retail handling and processing
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� 70 countries with regulations and/or standards; 480 certification bodies; very few trade agreements
� Canada–US Equivalency Agreement = world’s first full organic equivalency determination� Complements current trade and integrated markets
� Increased efficiency & reduced cost for operators
� Canada–EU Equivalency negotiations at advanced stage: mutual peer reviews conducted in May-June 2010, peer reports traded, the industry eagerly awaits results
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both seals may be used
• “Imported” or “Product of X” in close proximity to the Canadian logo
• In Canada, organic label claims subject to official bilingualism
• Canada and U.S. have different requirements re: organic claims (e.g. “100%”),
language, country of origin, SKUs, grades, nutrition panels
• Absence claims less condoned in Canada
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� Started 2006
� Working Groups
� Regulatory
� Markets Development� Markets Development
� Capacity Development
� Research
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� Inadequate education effort for Canada Organic Label◦ Consumer confusion with other labels such as fair
trade, natural, local, hormone-free, etc.
� Markets may be reaching a plateau
� Number of producers transitioning may be declining due to market saturation declining due to market saturation
� Infrastructure (value-chain) challenges◦ Processing, Distribution, Co-packing
� International competitors have government funding for transition, standards, incentives
� Need for more markets data
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www.OrganicBiologique.ca
• launched in Canada to
provide consumer basic info
on "Canada Organic"
standards, etc.
www.OrganicWeek.ca
• launched October 2010 to
promote and celebrate
organics in Canada, 250
partners across Canada
Globe and Mail special report
• industry-funded national media campaign
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� $ for standards maintenance and industry input into harmonization agreements
� Educational campaign for Canada Organic label◦ it must come from government to convince them of
government oversight and enforcementgovernment oversight and enforcement
� Commodity-specific markets development
� National extension program
� A coordinated statistical approach to the sector ◦ domestic production, imports, trade, sales,
consumer attitudes
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� Organic can deliver many of AAFC’s agro-ecological objectives
� Organic can deliver higher income to farmers
� Organic is the fastest growing food segment in the US, EU, and many developed markets
◦ massive potential in BRIC countries, Asia, etc. ◦ massive potential in BRIC countries, Asia, etc.
� The locus of control in agriculture is shifting from the producer to the consumer
� With strong standards, independent annual third party verification and government oversight, organic is well positioned to deliver food that consumers want to eat
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Matthew HolmesExecutive Director
Canada Organic Trade Assoc.
Dr. Laura TelfordNational Director
Canada Organic Trade Assoc.
613-482-1717
Canadian Organic Growers
613-216-0741