Organic Agriculture In Canada, with a Manitoba Focus

1. Canadian Organic Growers (COG) our nature is organic Organic Agriculture In Canada, with a Manitoba Focus

2. Canadian Organic Growers (COG)our nature is organic www.cog.ca • COG is a not for profit charitable organization with 15 chapters across the country and two affiliated regional organic organizations • In Manitoba visit www.organicfoodcouncil.org • Funding comes from members, governments, foundations 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.

3. Organic What it is • 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

4. Organic What it isn’t • No synthetic chemicals including pesticides, fertilizers, hormones, and antibiotics • No genetically-modified organisms (GMO’s) • No irradiation • No sewage sludge • No synthetic processing substances, aids and ingredients, and food additives including sulphates, nitrates and nitrites

5. Number of certified organic producers in Canada Source: Certified Organic Production reports 1992-2005, Anne Macey for Canadian Organic Growers

6. Organic producers by region Source: Certified Organic Production in Canada 2005, Anne Macey for Canadian Organic Growers

7. Number of acres in organic production Source: Certified Organic Production in Canada 2005, Anne Macey for Canadian Organic Growers

8. Number of certified organic processors and handlers Source: Certified Organic Production in Canada 2005, Anne Macey for Canadian Organic Growers

9. Organic Sales in Canada Source: Retail Sales of Certified Organic Food Products in Canada, May 2007, data collected by The Nielson Company and compiled by Anne Macey for the Organic Agriculture Centre of Canada • Total Canadian retail sales of organic products through all market channels was $1 billion in 2006 ($412 million through retail channels, representing close to 1% of total retail food sales) • Retail sales expanded by 28% from 2005 to 2006 • 26% of the organic food sold at retail in 2006 was in British Columbia • AB showed the largest annual growth in retail sales, with a 44% increase, followed by BC and the Maritimes (34%), ON (24%) and QC (21%)

10. Sales of Organic Food Categories Source: Retail Sales of Certified Organic Food Products in Canada, May 2007, data collected by The Nielson Company and compiled by Anne Macey for the Organic Agriculture Centre of Canada

11. Rate of growth by category Source: Retail Sales of Certified Organic Food Products in Canada, May 2007, data collected by The Nielson Company and compiled by Anne Macey for the Organic Agriculture Centre of Canada

12. Imported vs. domestic Source: Retail Sales of Certified Organic Food Products in Canada, May 2007, data collected by The Nielson Company and compiled by Anne Macey for the Organic Agriculture Centre of Canada • Of the 2676 food items examined by Nielson, 47% were labelled as grown, packaged or processed in Canada and 51% were imported (2% were unknown) • There were some notable exceptions to this pattern: 100% of milk and bread was domestic, followed by yogurt, cheese, jams and jellies, flour and tofu

13. Drivers for increased organic sales Source: Snapshot Organics, AB government 2001 • Higher input costs • Low prices for conventional commodities • Increased consumer emphasis on health and nutrition • Consumer concerns about food safety, environmental protection, GMOs • Entry of mainstream food marketers such as General Mills, Heinz, Kellogs and McDonalds

14. Risk mitigation in organic systemsFood safety and health • Organic food production and processing has to comply with all existing legislation • Organic agriculture is based on the precautionary principal. It has an unparalleled traceability system and a limited list of permitted substances • The absence of pesticides means reduced health risks for farm workers and their children. Pesticide risks such as cancer and even death are related to ingestion of residues on fruits and vegetables, chronic exposure during spraying and acute poisoning • Prohibition against GMOs, irradiation, and chemical pesticides positions organics as the safer option in the eyes of consumers • Since antibiotics are banned except as a last resort, organic agriculture has a lower risk of contributing to antibiotic resistance

15. Risk mitigation in organic systems Pathogens • Manure management, water sources and other common sources of pathogens are routinely assessed and controlled through the organic inspection/certification process • Research suggests that pathogen risk is similar in organic and non-organic systems

16. Risk mitigation in organic systems The Environment • Ban on use of synthetic nitrogen means that organic agriculture contributes less to eutrophication of water sources • The ban on chemical pesticides reduces water pollution and reduces the risk to soil and other wildlife • Research shows that farms managed organically support a greater diversity and volume of biodiversity • Organic systems foster soil building, soil microfauna and decrease soil loss.

17. Risk mitigation in organic systems Agronomy • Due to improved soil structure, organically managed soils can better handle both drought and flooding • The diversified cropping systems found in organic agriculture can help prevent major outbreaks of pests and disease • Non-reliance on chemical insect and disease controls protect the organic farmer from pesticide resistance

18. Financial benefits of organic systems • Input costs for organic agriculture are significantly lower, though for some commodities such as vegetable production, labour costs can be higher • Organic agriculture commands a price premium that is dependent on commodity and sales channel • Some crop insurance providers charge a higher premium which reflects the higher value of the organic crop • The diverse crop rotations used by organic farmers can reduce financial risk and reduce the variability of farm income from year to year

19. Higher Per Acre Return • Economic analysis of 8 years of the Glenlea Rotation Study The following table shows the cost of production and net income for the 8 years (1992-1999) of rotations 1 and 3 at Glenlea. Costs are in "1996 Canadian dollars" while commodity prices are in 1996 dollars (minus 20%). Values are averaged over the entire 8 year rotation and are shown in mean annual dollars/acre. • Crop RotationF+H+Full inputs F+H-Low input F-H+Low input F-H- Organic system wheat-pea-wheat-flax Input cost 104.14Net return 27.87 Input cost 77.17Net return 30.87 Input cost 71.36Net return 26.67 Input cost 43.44Net return 40.23 wheat-alfalfa-alfalfa-flax Input cost 71.68

20. Returns Higher • http://www.umanitoba.ca/outreach/naturalagriculture/profiles/pfp/pfp.html • Dr. Martin Entz Glenlea Research U of MB • Complete study data on low input • Farm profiles and organic production in Manitoba

21. Returns Higher • This article shows support of the organic beef business is a sound investment • The information is as current today as when the article was written in May, 2006 • http://www.foodnavigator-usa.com/news/ng.asp?n=67914-organic-meat-organic-beef-organic-poultry .

22. Organic Oats: • John Hollinger, MAFRI, Organic Specialist. - long term average price is 30 - 40 % above conventional oat prices. • Gaston Boulanger, Organic Producer -currently organic oats is ~ almost 70 % higher than conventional oats. • Current spot price for conventional oats #2 @ Agricore (Viterra) is $2.51 / bus. and at Emerson Milling ( large oat processor) conventional oats #2 is @ $2.60 / bus delivered to Emerson Mb.

23. Organic Barley: • John Hollinger, MAFRI, Organic Specialist, - long term average price is ~30 % above conventional prices. • Gaston Boulanger, Organic Producer - currently organic barley prices are almost 80 % higher than conventional barley. • Current spot price for conventional barley @ Agricore ( Viterra) is $3.35 / bus ( low vom) and at Seed - Ex ( large barley exporter) conventional barley ( low vom) is at $3.48 / bus.

24. Organic Flax: • John Hollinger , MAFRI, Organic Specialist - long term average price is ~ 50 % above conventional flax prices. • Gaston Boulanger, Organic Producer, - currently organic flax price was almost double the price of conventional flax prices. • Current spot price for conventional flax @ Agricore (Viterra) is ~$11.27 / bus for #1 flax • Depending on quality organic @ $18-$22/bus

25. Organic HRS Wheat: • John Hollinger, MAFRI, Organic Specialist - long term average price is 35 - 40 % above conventional HRS Wheat prices. • Current fixed price (i.e. one time payment, no final) for HRS Wheat is @ $6.97 / bus.

26. The Organic Standard • The Canadian Organic Standard was developed by the industry through a Canadian General Standards Board process in1999. • The Organic Standard is a strict code of practices which governs organic farming • Certifying bodies hire trained third party inspectors to verify that farms and processing facilities are following the standard

27. Organic Products Regulations • Following a cost-benefit analysis and extensive consultations with the sector, the federal government passed a regulation in 2006, which will come into force in December 2008. • The regulation applies to organic products that cross interprovincial and international boundaries. Provincial governments are responsible for regulating food sold within a province. BC and QC are currently the only provinces with their own regulations. • The Canadian Food Inspection Agency is the competent authority in charge of establishing accreditation bodies. These agencies will accredit certification bodies to certify farms and processing facilities. • Certified organic agricultural products containing >95% certified organic ingredients can carry the Canada Organic logo.

28. Organic Certification • ~25 Organic Certification Agencies accredited by 4 internationally recognized third party accreditors • All require an Organic Farm Plan based on the Precautionary Principle (exclusion of worst known toxins) • The Organic Farm Plan is a Systems approach to preventative measures

29. Canada Organic Logo

30. Organic Food Council of Manitoba • Visit www.organicfoodcouncil.org to stay up to date on the latest info and links on organic production • Visit www.opam.ca to learn of certification requirements with Manitoba’s primary certifier of organic farms • Visit www.cog.ca for a list of all certifiers functioning across Canada

31. Organics is Growing….. • Thank you for your interest in organic agriculture and more sustainable production!