Organic farms: soon a common practice?

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Published: March 15, 2001

PARIS, France — If Francois Thierry is right, organic farming will some day be the norm.

How soon that happens, however, depends on the will of all the players in the European Union food sector — producers, consumers, retailers and politicians.

Thierry, a dairy producer who made the switch to organic farming 10 years ago, said he has been flooded with calls from nearby farmers since the mad cow disease crisis erupted in France last October. He is holding a one-day seminar to respond to queries on converting their farms.

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“The day will come when organic farming is considered normal, mainstream,” said Thierry, who minds 50 cows in the Vosges region of eastern France.

About three percent of Europe’s farmland is devoted to the production of organic food. In France, organic farms make up 864,900 acres, or 1.2 percent of the total agricultural area.

Benoit Vergriette, a top official at the French organic farmers’ union FNAB, said between 3,000 and 3,500 farmers are expected to make the shift this year, bringing the number of organic producers in France to more than 11,000 by 2002.

“More and more farmers are looking at organic production. On the one hand, consumer demand is growing for products of quality, particularly organic products. But it’s also producers who are realizing the problems of mainstream farming,” Vergriette said.

Dominique Verot, FNAB’s spokesperson, believes the biggest obstacle keeping European farmers from going organic is in their minds.

“It’s a different kind of production than they’re used to. The yields are lower than in traditional agriculture … and the amount of work on an organic farm is about 20 to 30 percent more than on a conventional farm.”

The payoff for farmers is that organic food is better valued than the alternative. Organic farmers can charge more for their goods because they cater to a niche market of consumers who perceive it as safer.

A British survey last year comparing the price of organic and non-organic baskets of food found that the former attracted a premium of between 70 to 80 percent.

But with more European farmers turning to organic agriculture, the premium they charge may be undermined by rising supply. That could deter more farmers from converting.

But FNAB’s Verot said more farmers producing organically will bring bigger economies of scale and save production costs.

According to industry consultants Euromonitor, Western Europe is the largest organic food and drinks market in the world, with retail sales in 2000 of about $15 billion (Cdn). The European market is set for sustained growth and will account for five to 10 percent of total food sales in 2005.

Verot said organic farmers cannot master the price of their goods on their own, so it is up to the FNAB to build supply chains that are durable.

“We are doing that by putting producers in touch with distributors.”

There remains one other key group to convince — politicians.

Many EU countries already offer incentives to increase the amount of food produced organically, and EU farm commissioner Franz Fischler has said he wants to do more to encourage less-intensive agriculture.

About the author

Greg Frost

Reuter News Service

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