Organic farming is not new; it was the only agriculture practiced since millennia. But compared to current conventional agriculture, organic farming deserves a definition. Organic food is a product of organic farming which is a system of farm design and management practices that seek to create ecosystems, rotate crops, develop sustainable soil conditions with high biomass levels, provide natural weed and pest control, achieve sustainable productivity, and create a mix of mutually dependent life forms. Organic food production prohibits the use of synthetically compounded fertilizers, pesticides, herbicides, hormones or other artificial additives. It promotes a regional sustainable economy with shorter supply chains between the farmer and the consumer. Homestead participates in this regional economy by serving the regional organic farmers and by distributing much of its products to regional food manufacturers and animal farmers.
Organic growers, processors, and distributors are certified by various organizations such as the Organic Crop Improvement Association (OCIA) to guarantee their product in the marketplace. A farm requires a transition period of a minimum of 3 years of strict organic practices before certification. To be certified, a farmer must adhere to organic practices, conduct regular soil tests, keep records of farming practices and materials, and be inspected by a representative of a certification body.
Farmers benefit from organic agriculture with a sustainable growing environment thus eliminating the dependence on chemical inputs and their costs. Organic farming is knowledge intensive and farmers have significant control of their skills and practices. Following the transitional period and with experience, a sustainable organic farm has yields comparable to conventional crops. Thus the farmer can count on a viable and improving operation with lower input costs, improving yields and a price premium that the market is currently offering.
Society benefits from organic food in several ways: develop a local sustainable food economy, address the concerns for their own health, reduce the chemical pollution of the soil, air and water, and reduce land erosion. Most importantly, organic agriculture offers an answer to the environment improvement programs established by our governments.
In September 1995, Agri-food Canada(1) defined the Canadian organic grain market as about 1,900 growers with a total organic grains and oil seeds production of 140,000 tonnes, or less then 0.5% of the total grain and oil seed production in Canada. Organic food comprises between one and three per cent of the Canadian retail market, but it tends to command at least a 30% premium on retail prices because of high demand and to support the industry’s low volumes and low economies of scale at this time. Agri-food Canada quoted industry estimates that by the year 2000, the organic market share of consumer retail food purchases will increase to about 10% as consumers become increasingly environmentally conscious.
OCIA Ontario(2) is also witnessing this growth as membership increased 25% to 166 growers in 1996 over 1995. In the USA, the whole organic industry has grown by 20% in each of the past 6 years according to the HJ Heinz Company in its explanation of its purchase of Earth’s Best, the leading American manufacturer of organic baby food. A US agricultural journal, "Piedmont Living" in Oct 96, declared that the US organic industry reached earnings of over $2B US in each of 1994 and 1995.
In order to support the increasing demand and encourage growers to enter organic agriculture, the industry must eliminate a number of barriers. The most visible are: infrastructure barriers - develop better handling infrastructures and marketing support; information barriers - enhance the understanding by producers and consumers of the benefits and the practices of organic agriculture; supply barriers - improve the agronomic methods to ensure consistent supply; economic barriers - help the growers and processors access financing for capital investments.
To support the growing organic market, Homestead Organics actively seeks new growers for the 1998 season; we operate a booth at several community fairs to inform the public and attract growers. Homestead also helps eliminate the barriers for growers by providing the grain handling infrastructure, informing the public, advising farmers and assisting in the supply chain between farmers and manufacturers.
Homestead’s customers are at both ends of the supply chain. The farmers are technically suppliers, but are treated as customers because we must recruit additional organic farmers to satisfy the growing demand, develop their growing abilities and support them through their transition to Organics. Farmers are a mix of small hobby farms, large mixed farms, long-time cash croppers, or new cash croppers recently converted from other operations. Just like conventional farmers, organic grain farmers seek an infrastructure to process their produce, but in a facility offering storage, drying, cleaning and marketing segregated from conventional produce.
Food manufacturers need a steady monthly supply of clean, dry, graded, and fresh produce shipped in bags or bulk. They normally don’t want the hassle of organizing drying, cleaning, storage and shipping among several farmers. One farmer alone normally cannot ship the volume required by a manufacturer. An elevator such as Homestead provides the preliminary processing and handling between the grower and the manufacturer.
Animal farmers need ground feed for organic poultry, eggs, dairy and meat production and a steady supply of feed in small bags or bulk. The feed is a mix of several grains according to a prescribed diet depending on the animal and the purpose (meat, dairy, raising, etc).
Many customers and farmers have confirmed these needs and their satisfaction. One farmer converted to organics after a prolonged illness from exposure to pesticides. Several chicken farmers tell us that their customers and butchers are impressed with the quality of the organic chicken meat. Bakers are pleased with the protein level of organic wheat grown in eastern Ontario and are happy to avoid the cost if importing western wheat. A tofu manufacturer in Nova Scotia depends solely on soybeans from Eastern Ontario. Home gardeners are happy to see that organic methods practiced by themselves are also adopted by professional farmers on a broader scale.
(1) "Organic Grains and Oil seeds", Raquel Christie, Agri-Food Canada biweekly bulletin, Volume 8 number 17, Sept 15th, 1995. (copy available from Homestead Organics)
(2) Organic Crop Improvement Association, Ontario Chapter, President Martin DeGroot, Tel: (519) 638-3481.
(3) Canadian Organic Growers, COGNITION Newsletter Editor: Elizabeth Irving, Tel: (613) 258-4045