PRB 00-29E
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ORGANIC FARMING IN CANADA:
AN OVERVIEW
Prepared by:
Frédéric Forge
Science and Technology Division
19 February 2001
TABLE OF CONTENTS
INTRODUCTION
DEFINITION OF AND TRENDS
IN CANADIAN ORGANIC FARMING
A. Origins
B. Definition
C. The Standards of Organic
Farming
D. Organic Farming Trends in
Canada
GOVERNMENT MEASURES ON
BEHALF OF ORGANIC FARMING
A. A Specific Organic Farming
Policy
B. A National Standard
A MODEL FOR SUSTAINABLE AGRICULTURE?
A. Sustainable Agriculture
B. Healthier Food?
CONCLUSION
ORGANIC FARMING IN CANADA:
AN OVERVIEW
INTRODUCTION
For a long time, organic farming was
limited to small groups of producers, processors and consumers; however, substantial
growth has occurred over the past few years. The recent interest in organic products
has been heightened by consumers increased expectations regarding their food and the
environment, especially following a number of crises or controversies involving
conventional agriculture mad cow disease in Europe, genetically modified organisms
(GMOs), etc.
In 1998, the Canadian Organic Advisory
Board (COAB) announced that the organic food market represented approximately 1% of the
total retail food market and estimated that annual sales were increasing by between 15%
and 25%.(1) The COAB also reported that
Canadian production was worth almost $1 billion each year.
After a brief review of the concept of
organic farming and its status in Canada, this paper describes the various government
measures that impact on this sector of the agro-industry and discusses organic farming as
a model for sustainable agriculture.
DEFINITION OF AND
TRENDS IN CANADIAN ORGANIC FARMING
A. Origins
The origins of organic farming can be
found in two sources. The first source is biodynamics, the principles of
which were enunciated by R. Steiner, an Austrian thinker, in the 1920s. It is
claimed that this form of agriculture, which draws upon cosmic and telluric
forces, forms part of a broader concept of human nature and living things. In
1928, the biodynamic movement was the first to establish a brand name,
Demeter, certifying the origin of its products. The second source is
Organic Agriculture of the British Soil Association (based on the 1940
writings of Sir Albert Howard), which advocates composting and a return to an independent,
farm-based agriculture. Both movements put the emphasis on soil life, i.e.,
fertilization, and include a strong ideological component.
B. Definition
Organic farming is based on a simple
principle, namely strict respect for the links and natural balances between the soil,
plants and animals (animals nourish the soil, which nourishes plants), to which is added
the constraint of a prohibition against synthetic chemicals.(2)
From this principle and this constraint
follow a number of agricultural practices which distinguish organic from conventional
farming, including:
a
prohibition against chemical fertilizers and pesticides, plant and animal growth
regulators, hormones, antibiotics, preservatives, etc.;
a
prohibition against genetically modified organisms;
a
prohibition against soilless culture (which does not exclude greenhouse growing);
the
requirement, in the case of animal production, to allow free ranging, to use organically
produced feed, to limit animal density in buildings, etc.; and
the
requirement to observe conversion periods in crop production before any
organic commercial exploitation, etc.
The supporters of organic farming add a
social and ethical aspect to the definition of organic farming, because they see in it a
means of preserving a human dimension in agriculture, one that is respectful of the
environment and in touch with the consumer.
C. The Standards of Organic
Farming
Because it is virtually impossible to
distinguish a product produced by organic farming from one produced by conventional
farming, organic farms must be certified by appropriate regulatory bodies. The
certification allows the producer to sell his or her production under the designation
organic. This provides the consumer with a guarantee that the product
purchased is genuinely the result of organic farming. The certification body
validates the farm on the basis of standards, which determine the technical requirements,
e.g., which products may be used for fertilization and processing, and what are the
conversion periods.
The proliferation of standards can be a
source of confusion for the consumer. In 1980, the Organic Food Production
Association of North America listed approximately 50 organic standards drawn up by
various certification bodies.(3) In 2000,
Canada had more than 40 certification bodies. Although the various standards
have more shared than divergent points, the industry out of a concern to preserve
the integrity of the organic label is seeking to make these standards
uniform in various countries. In Canada, the provinces of Quebec and British
Columbia have each established minimum provincial standards, as well as a procedure for
accrediting organic farming certification bodies. In June 1999, the Government of
Canada introduced a national standard for organic farming, which represents a first step
toward the adoption of Canada-wide standards for organic farming. (See the section
Government Measures on Behalf of Organic Farming.)
D. Organic Farming Trends in Canada
The organic farming movement in Canada
emerged in the 1950s, but significant development occurred only in the 1970s. During
that decade, six provinces had organizations uniting organic farmers; in 1974, McGill
University set up the Ecological Agriculture Projects program, which later became an
information clearinghouse for the whole of Canada. Certification bodies were
developed in the 1980s, and various levels of government increased their involvement in
research and development in this sector of the farming industry.
In 1999, it was estimated that there were
between 1,500 and 2,000 certified farmers in Canada,(4)
but there is little data on their production. Nevertheless, since the year 2000,
Statistics Canada has been gathering data on organic fruit and vegetable production.
The statistics show that approximately 4.9% of Canadian fruit and vegetable growers
consider themselves to be organic farmers. This amounts to approximately 640 farms,(5) which account for almost 2% of the land area used
for commercial vegetable growing in Canada. The farms are generally small
less than 5 acres in size.(6)
The organic food industry is dominated by
imports from the United States and the European Union, which account for 80% of the
Canadian market. Even though local sales are one of the cornerstones of organic
farming, international trade is becoming increasingly important. It is estimated
that 85% of Canadian organic production is exported and that the demand for such products
as cereals and oilseeds is steadily increasing.
GOVERNMENT MEASURES ON
BEHALF OF ORGANIC FARMING
A. A Specific Organic Farming
Policy
Because organic farming is a sector
within a sector, it is affected by most of the programs and regulations implemented
by the federal government for Canadas agricultural sector. For example,
federal income support programs such as the Net Income Stabilization Account (NISA), crop
insurance or the disaster assistance program are made available to both conventional and
organic farmers. There is no federal policy directed specifically to the organic
farming industry.
Some countries, including the European
Union, have such policies to promote organic farming. They usually offer financial
incentives to encourage a changeover to organic farming. Consequently, the amount
of land area in Europe converted to organic farming has increased, as has the volume of
certified organic products sent to foreign markets.
In its report entitled Pesticides
Making the Right Choice For the Protection of Health and the Environment, the
House of Commons Standing Committee on Environment and Sustainable Development recommended
in 2000 that
the government develop an organic
agriculture policy for the transition from pesticide-dependent farming to organic
farming. This policy should include tax incentives, an interim support program
during the transition period, technical support for farmers, the development of
post-secondary organic farming programs and enhanced funding for research and development
(R&D) in organic agriculture.(7)
In its response, the government recognizes
the importance of this sector and maintains that it supports its expansion through
existing and future research and market development programs and services. Virtually
all the programs directed to agriculture in general affect organic farming, because the
government has adopted a decoupling approach between support programs and
production-related decisions. In this way it does not favour certain agricultural
practices over others, regardless of whether they are conventional, organic or
other. It should be noted, however, that in the calculation of payments to farmers,
traditional programs are based on prices lower than those applicable to organic production
(crop insurance programs) or on incomes (NISA), which are often lower in organic
production. In fact, organic farmers are at a disadvantage.
B. A
National Standard
The adoption of a Canadian organic farming
standard constitutes the first true federal government intervention directed specifically
to this sector of the farming industry. This standard, approved in June
1999 by the Standards Council of Canada, was developed jointly by the Canadian General
Standards Board and the Canadian Organic Advisory Board (COAB), an organization that
represents the interests of groups of organic farmers and certification bodies throughout
Canada.
Although the organic farming industry is
satisfied with the national standard, there is disagreement over the certification
procedure to be adopted. The COAB was formed in 1992 as an advisory board with a
mandate to represent the interests of organic producers throughout Canada; it made
possible cooperation between the stakeholders of organic farming and those in the federal
government involved in developing the standard. Some stakeholders would like the
COAB to be recognized as the certification body for the national standard, with
responsibility for the inspection and accreditation of businesses seeking certification.
Others believe that there is still a need
for consultation on the choice of the certification body. In British Columbia and
Quebec, two provinces that have long experience with provincial organic standards, many of
those concerned think that it is not appropriate for an advisory board to become a
national certification body. Moreover, these provinces already have provincial
certification bodies that they would like to see accredited as certification bodies for
the national standard.
A MODEL FOR SUSTAINABLE AGRICULTURE?
Because conventional agriculture has been
marked by a number of crises or controversies, organic farming has often been advocated by
some as a desirable model for sustainable agriculture. This section presents a few
thoughts on the subject.
A.
Sustainable Agriculture
It is now recognized that organic farming
has a very positive impact on the environment world-wide. It differs from
conventional farming in that it reduces the amount of pollutants released into the
environment and improves the organic and physical fertility of the soil.(8) Some studies also show that fields where organic farming is
practised have greater biological diversity.(9)
However, the prohibition of synthetic
fertilizers and pesticides results in decreased yields, with some farmers reporting yield
reductions of between 30% and 50% during the initial stages of conversion from
conventional to organic farming.(10) However, the
decline in yield is offset by the higher selling price of these products compared with
that of conventionally produced products. Consumers are prepared to pay between 10%
and 50% more for organic products.(11)
In terms of running the operation, organic
farming is more labour intensive than conventional farming. By depriving themselves
of the safety net provided by systematic treatment, organic farmers must be
constantly vigilant, systematically seek alternative solutions, and try to streamline
their operations. Thus, in the Netherlands, the most successful dairy farmers are
those who convert to organic farming, because this represents a new challenge.(12)
B. Healthier
Food?
Although beneficial to the environment,
organic farming methods are not guaranteed to produce healthier foods than those produced
by conventional farming methods. Organic farming standards do not include an
obligation to produce results in terms of the quality of the product which does not
mean that organic farmers are not capable of achieving such quality. The label
organic does not in any way provide a guarantee as to the quality and
nutritional value of the product. Furthermore, as regards hygiene and health safety,
organic farming is quite simply subject to the same rules as conventional farming.
It should be noted that the absence, by
definition, of any synthetic chemical products and GMOs excludes the risk or uncertainty
created by their presence even if such risk or uncertainty is at times small in
conventional farming. Nevertheless, although the transition period is used to rid
the soil of its contaminants, and taking into account the fact that some traditional farm
inputs can stay in the soil for decades, organic farming does not guarantee the complete
absence of contaminants.
A report by the United Kingdom House of
Commons Agriculture Committee, tabled in January 2001, noted that there is currently no
proof that food produced through organic farming is healthier. In this regard, the
report states that increased research must be done in this sector to produce scientific
proof for the claims made.(13)
CONCLUSION
Organic farming is booming in
Canada. A national standard that sets out organic production practices is good news
for both producers and consumers, because it will help to shed some light on this market
sector. A system of operational certification is the next challenge to be faced by
the Canadian organic food industry. Such a system will have to meet the expectations
of the industrys numerous stakeholders, who have not waited for national
standardization to organize themselves.
Many virtues are attributed to organic
farming, including that of being the ideal form of sustainable agriculture, which protects
the environment while yielding healthy and more nutritious foods although the
latter claim remains to be proved. Thus, certain countries are adopting policies to
promote a substantial conversion from conventional to organic farming.
It is difficult to say that the abandoning
of conventional farming and a wholesale conversion to organic farming could guarantee the
same level of income for farmers and a stable and adequate source of food. To many,
organic farming is a niche that must remain such if it is to retain its economic
interest. Moreover, it is a more stringent form of agriculture as far as running a
farm operation is concerned, one that tends to attract only the technically more
proficient. Hence the idea, put forward by some, that it is the prototype for a more
rational form of agriculture that can develop alternative solutions compatible with
sustainable development.
(1)
Heather Archibald, Organic Farming: The Trend is Growing! Canadian
Agriculture at a Glance, Statistics Canada Catalogue No. 96-325-XPB, 1999.
(2) Alain
Riquois, Lagriculture biologique : un prototype au service de
lagriculture conventionnelle pour un développement durable [Organic farming:
a prototype for use in conventional agriculture for sustainable development], Aménagement
et nature, No. 132, March 1999, pp. 49-61.
(3)
Hélène Laberge, Agriculture biologique et bio-dynamique [Organic and
biodynamic agriculture], Lagora, April 1996.
(4)
Heather Archibald, 1999.
(5) Bill
Parsons, Organic Growing Practices Establish a Clear Market Position, in Vista
on the Agri-Food Industry and the Farm Community, Statistics Canada, Catalogue No.
96-325-XPB, 1999.
(6)
Ibid.
(7) House
of Commons, Standing Committee on Environment and Sustainable Development, First Report, Pesticides
Making the Right Choice For the Protection of Health and the Environment, 2nd
Session, 36th Parliament, May 2000.
(8) Alain
Riquois, 1999, pp. 49-61.
(9) Andy
Coghlan, Going Back to Nature Down on the Farm, New Scientist, 3 June
2000.
(10)
Heather Archibald, 1999.
(11)
Ibid.
(12)
Alain Riquois, 1999, pp. 49-61.
(13)
United Kingdom, House of Commons, Agriculture Committee, Second Report, Organic Farming,
January 2001.
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