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Department of Agricultural Economics Organic Project Overview

Department of Agricultural Economics Organic Project Overview. By Simon Weseen. Organic Market and Trade Analyst Position Background. 4 years (through March 31st, 2006) Project funded by a one-time grant from SAFRR Project Objective:

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Department of Agricultural Economics Organic Project Overview

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  1. Department of Agricultural Economics Organic Project Overview By Simon Weseen

  2. Organic Market and Trade Analyst Position Background • 4 years (through March 31st, 2006) • Project funded by a one-time grant from SAFRR • Project Objective: • The overall goal of the project is to provide knowledge and information to the Saskatchewan organic industry that will aid in the development of a consistent, reliable and internationally accepted accreditation/certification system and long-term institutional and business relationships, thus allowing the organic industry to best position itself for the global market place.

  3. Background Cont’d • Work Plan was developed in fall, 2002 • was based on feedback from industry, and advisory committee • areas of interest were marketing, value added, and organic regulation

  4. Organic Regulation • 3 papers: • Options for Improving the Efficiency of Canada’s Organic Certification / Accreditation System • Understanding the USDA’s National Organic Program in the Context of the Canadian Organic Industry • An Overview of the EU Regulatory System for Organic Agriculture

  5. Objectives of Regulatory Papers • Provide an overview of each of the systems • Identify problems with Canadian system • Describe how US and EU systems function in the context of the Canadian industry • Identify potential lessons from US and EU systems • What needs to happen in Canada?

  6. Major Conclusions • Canadian system is inefficient • costly, low participation, no market access, does not protect domestic markets • A mandatory national standard could alleviate some of these concerns • Do not change the system drastically • 3rd country status is essential for market access into Europe, starting in 2006

  7. What is being done? • Creation of the Organic Regulatory Committee (ORC) last year • working with federal gov’t towards industry regulation • Action Plan • reach consensus on how regulation should occur • assist in standard revision • consult with industry across Canada • apply to EU for 3rd country status

  8. An Analysis of Legal Issues Arising from a National Organic Standard in Canada • Collaborative project with CSALE • Evolved out of the need to expand upon the limited understanding of how an organic regulation would function • Objective • Explain how organic regulations could be introduced, in a legal context

  9. CSALE Project Cont’d • Major conclusions • Federal gov’t does not have power to legislate organic production standards • Can still encourage provinces to legislate standards through its spending power • Co-operative effort between Federal and Provincial govt’s is necessary

  10. Supply Chain/ Marketing Study • Objectives • Describe vertical supply chain for wheat, barley, oats, flax (surveys and interviews) • Identify problems for industry development • No contracts with local retailers • Import export ratios • Information Asymmetry • Value added opportunities • Role of the gov’t

  11. Marketing Study Objectives Cont’d • Determine how price is arrived at various stages of supply chain • How can producers capture higher premiums? • Identify areas for further research and development. • Project is in the survey stage • Marketing Guide?

  12. Graduate Student Theses • Shon Ferguson - Long-term Rents Accruing to Organic Farmers Under Alternative Supply Chain Governance Structures • Erin Sawyer - International Accreditation as a Mechanism for Reducing Transaction Costs

  13. Price Information Survey • Objectives • Obtain farm level organic price and volume of sales info for the prairies • Make this information available to the public through websites • Collaborative project of OACC/SCIC • Survey being conducted by SRC • Results in Feb?

  14. Price Information Survey Cont’d • Potential Benefits • Benchmark for producers to determine market value • Can evaluate current and future market trends • E.g. How does market expansion affect prices? • Provide info to SCIC for insurance purposes • Provided price and quantity data for research already underway • E.g. losses resulting from GM canola

  15. Organic/ GM Co-existence Study • Project funded by OACC/CARDS • Primary researchers: Dan Dierker / Hartley Furtan • Objectives • Determine if co-existence of organic and GM wheat technologies is economically feasible on a common physical landscape

  16. Co-existence Study cont’d • Preliminary Results • It may be possible to create an organic club through which organic and GM wheat technologies can co-exist • A buffer zone is required, in which only conventional technology can be used • Increase in total welfare over the case, where only GM technology is used (winners compensate the losers)

  17. Organic Information Website • Website (http://organic.usask.ca) • Designed as a mechanism for disseminating research and providing other info • Homepage • Research personnel and topics • Graduate student research • Publications, reports and, presentations

  18. Website Cont'd • Discussion forum • Upcoming events • Contact info • National standard update • ORC update • Buyers contact page • Consumer page • Recent news • links

  19. SOD Organizational Review Committee • Created at SOD annual meeting • Reasons • some producers feel excluded • not completely fulfilling its mandate • does not represent all producers • Committee function • Examine alternative organizational structures that would best serve needs of the Saskatchewan organic industry • Project took a leadership role in research and writing of final report • Gary Storey

  20. SOD Organizational Review Committee Cont’d • Project took a leadership role in research and writing of final report • Gary Storey • Recommendation highlights • re-organize as producer organization with democratically elected board of directors • expand to industry organization (including CB’s) • investigate check-off and access to WEPA funding

  21. SOD Organizational Review Committee Cont’d • Report was present to SOD on January 5th • Other proposals were presented as well • SOD Board of Directors met on January 6th to discuss all proposals • Board of Directors have decide to create an email discussion group to decide what to do

  22. Organic Conference • Scheduled for Nov 14-16, 2004 • Centennial Auditorium • Industry has ownership through “Organic Connections” • 3 components • Conference • Tradeshow • Consumer fair (organic food presentations)

  23. Organic Conference Cont’d • Conference portion has 3 themes • Marketing and trade • Production and agronomics • Healthy lifestyles • Funding through CARDS, this project, sponsorship, trade booths, registration • See http://organic.usask.ca

  24. Questions and Discussion?

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