The European Union and the United States help pay farmers for transition costs
The organic sector wants the federal government to provide funding for growers making the transition from conventional agriculture.
Representatives of the Canada Organic Trade Association recently appeared before the Senate’s agriculture and forestry committee to make the case for transition funding.
Matthew Holmes, executive director of the association, told the committee that global organic sales amount to US$72 billion per year.
Canada exported an estimated C$550 million in organic products last year, a 20 percent increase from two years ago.
The sector is poised for continued double digit growth but is being held back by a lack of supply from the country’s 5,000 certified farms, handlers and manufacturers.
Read Also
Trade war may create Canadian economic opportunities
Canada’s current tariff woes could open chances for long-term economic growth and a stronger Canadian economy, consultant says — It’s happened before.
An estimated 1.8 percent of Canada’s farmers are organic producers, which is not sufficient to meet the growing demand for organic products.
Holmes told senators that the transition to organics can be costly and disruptive for farmers. They are learning new skills and methods that sometimes result in a temporary reduction in yields.
The certification process can be expensive, ranging from $600 to $2,000 a year depending on the type of farm. There are also inspection fees on top of that.
The process takes an average of three years, during which time the grower does not have access to organic premiums.
Shauna MacKinnon, community relations and development officer with the association, said Canadian farmers bear the full cost of transitioning to organics.
“Canada is really alone in comparison to our trading partners in not providing that kind of support at the federal level,” she said.
For instance, the United States has set aside $57.5 million this year in the farm bill to help pay for the cost of becoming an organic farmer. The program will be in place for the next 15 years.
MacKinnon said the European Union has had similar programs in place for 15 to 20 years.
She said a federal transition program would help Canadian growers become more competitive and narrow the demand-supply gap.
Canada lost 25 percent of its farm operators between 1991 and 2011 and 75 percent of its growers younger than 40, according to census data.
“We need to bring more farmers into agriculture, and organic is the strongest part of the food sector right now,” she said.
“There’s a very strong case to be made for why there needs to be a greater focus on providing support for farmers to come into organic.”
Statistics Canada data shows or-ganic farms employ twice as many people as conventional farms.
“This investment in organic is also a stronger investment in rural communities and our agriculture sector,” said MacKinnon.
Holmes said a mistake that was made in the equivalency agreement with the European Union is also holding back the Canadian sector.
A clause in the agreement stipulates that all products exported to the EU must be 100 percent Canadian, which works fine for bulk commodities but not as well for manufactured goods.
It is hard to find Canadian organic sugar, cinnamon, vanilla and tropical fruit that might be ingredients in a manufactured product. It means Canadian food exporters must pay the cost of a second certification.
The Europeans don’t face the same restrictions under the equivalency agreement.
The U.S. didn’t include that clause when it signed an equivalency agreement with the EU six months later. Holmes said that one clause has been a major impediment in the development of Canada’s organic processing sector.
