O nce seen as a niche cat-egory confined to farm-ers markets and health

food stores, organic foods havehit the mainstream. While thesector has experienced its chal-lenges along the way, a num-ber of healthy developmentssuggest the future of organicfoods is bright.

Statistically, the Canadianorganic food market hasgrown at least 20 per centannually for the past severalyears. Today, total sales inCanada are estimated at$2 billion a year, with 41 percent in conventional grocerystores.

“Organic food is reachinga critical mass in the market-place, and the growth trendsshow it’s not going away,” saysMatthew Holmes, managingdirector of the Organic TradeAssociation (OTA) in Canada.“And with this year’s launch offederally regulated organicstandards, the stage is set forgreater consumer confidencein certified organic foods andfurther growth in demand.”

Fresh vegetables and fruitsare the most popular con-sumer choice, accounting forapproximately 38 per cent oforganic foods sold in grocerystores. The Canadian market-place is also seeing growth in

pre-packaged organic productsand organic dairy.

A number of factors aredriving more consumers tobuy organic foods, say indus-try experts, including the ben-efits of chemical-free and sus-tainable farming and a desireamong Canadians to supportsmaller producers. The organ-ic standards’ commitment toanimal welfare is another moti-vator.

According to a 2008 sur-vey of organic food consumersby the OTA in Canada andthe Canadian Organic Grow-ers (COG) however, their pri-mary reason for choosingorganic was “Family health,”with concern for the environ-ment ranking a close second.

Gary Hirshberg is CEO ofStonyfield Farm, a leadingmanufacturer of organicyogurt that operates in partner-ship with Danone Canada.Evidence of the health benefitsof organic food is increasing,says Mr. Hirshberg, and con-sumers are paying attention.

“At long last, we are get-ting some clinical data thatincontrovertibly shows thatyou can get closer to balanceddiets with organic foods,” hesays. “And consumers arenow hearing medical expertssay that omega-3 fatty acids

and antioxidants in food canhelp protect against disease,and it’s proven that these arepresent in higher levels inorganics.”

Mr. Hirshberg agrees thatenvironmental concerns areanother key motivator. “It wasthe environment that drew meto the organic business. I wasstudying climate change anddiscovered there is an enor-mous carbon footprint to con-ventional agriculture, and thatorganic production offers envi-ronmental advantages.”

The Canadian industrysees a wealth of opportunity inthe expanding demand fororganic, but hurdles remain.Even though more Canadianproducers are moving toorganic — with certified organ-ic farms in the country reach-ing a record high of 3,782 in2007 – Canadian demand fororganic food is far outpacingthe domestic supply.

For example, even thoughbusiness is brisk for local pro-ducers such as StonyfieldFarm, which in its case hasseen sales double annually forthe past several years, Canadastill relies on imports to meetup to 80 per cent of domesticdemand for organic foods.

“As distributors of organicproducts in Canada, we

would like to see more Cana-dian product on the market,”says Roger Eacock, presidentof the SunOpta DistributionGroup. SunOpta, a Canadiancompany, is one of the largestorganic food companies inthe world. Its annual rev-enues total $1 billion, halffrom sales of organic prod-ucts. “We purchase locallywherever we can, but wehave to import to meet con-sumer demand,” Mr. Eacocksays. “At the same time, wewant to help our domesticsector reach its potential, sowe provide transitional sup-port to Canadian growers to

bridge from conventional toorganic production.”

Canada is also in the earlystages of developing new stan-dards for non-food organicproducts, such as personal careand natural health productsand textiles, and eventually thegovernment will need to alsoregulate these products toassure consumers there is onlyone “organic” in the market-place. This will create furtheropportunities for growth, saysMr. Eacock.

Beyond Canada’s borders,the global marketplace awaits.

Canada is a strongexporter of organic grains and

oilseeds, for example, butaccess to foreign markets hasbeen limited by the lack oforganic regulations in thiscountry. Now, Canada and theU.S. have signed an equivalen-cy agreement, and a similardeal with the European Unionmay be close.

“The U.S. organic salesmarket is 14 times the size ofCanada’s, and Europe’s is larg-er,” says Mr. Holmes. “Gain-ing access to those marketswill have a huge impact ondomestic production, and thatmeans more organic farmersand more environmental bene-fits here in Canada.”

A special information supplementTH E G LOB E AND MA I LTHUR SDAY , NOV EMB E R 1 2 , 2 0 0 9 OF1

Organics a growing challenge writesCanadian Organic Growers NationalDirector Laura Telford.2 3A new Canada Organic logo on foods

signals the advent of regulationspraised by organic food producers.

Organic foodsA healthy, growing industry

By Derek LynchCanada Research Chair inOrganic Agriculture, NovaScotia Agricultural College

S tatistics Canada’sHuman Activity and theEnvironment describes

the environmental footprint ofCanadian farming. Agricultur-al lands represent roughly 7per cent of Canada: the sameribbon inhabited by most ofour human population andover 500 species of wildlife,many at risk. Unfortunately,viable on-farm habitat shrunkby 5 per cent between 1981and 2001, becoming even lesswelcoming to wildlife.

Agriculture also con-tributes to global warming.Close to 9 per cent of Cana-da’s greenhouse gas budget isrelated to food production,and agricultural greenhousegas emissions rose 25 per centbetween 1990 and 2006.Meanwhile, between 1971 and2006 fertilizer use increasedacross the country, with a 381per cent spike in the Prairieecozone, while herbicide usejumped 190 per cent between1970 and 2006.

The increase of intensiveagriculture over the past 40years has greatly expandedthe risk and incidence of con-tamination of surface andground waters by fertilizersand pesticides. This is hap-pening even though we knowthat it costs society more toclean up our environmentthan it costs us to use appro-priate soil conservation andenvironmental practices on-farm.

How can we farm sustain-ably if most of our farming

relies on fossil fuel-based fer-tilizers? What is the long-termimpact of diminished plant,animal, bird and insect diver-sity both for farming and forthe planet? When we shop forgroceries, aren’t the costs ofour agriculture just as impor-tant as the price of our food?If the true costs of food pro-duction were internalized toinclude environmentalimpact, the food we buy inshops today would be signifi-cantly more expensive andorganic farming wouldbecome a bigger part ofeveryday life.

Scientific evidence showsthat organic farming has solu-tions to these problems. Cana-da’s Organic Standardsrequire that farmers followfundamental organic princi-ples of environmental sustain-ability, which promote biodi-versity, minimize erosion,recycle renewable resources,decrease pollution andincrease soil fertility throughnon-chemical means.

Organic farming hasproven benefits for soil quali-ty, plant and wildlife diversity,reduced energy use and nutri-ent runoff, and climatechange. Organic farms havehigher soil organic carbon,which contributes to long-termyield stability and resilience inthe face of unusual weather.

Organic farms also appear toharbour more plant speciesthan those in conventionalsystems, and they have a rich-ness and abundance in birdsand insect pollinators. This issignificant in a period whencolony collapse disorder andother challenges are dramati-cally reducing bee populationsrelied upon by all agriculture.

Energy use is lower inorganic agriculture. A 12-yearManitoba study found energyuse was 50 per cent lowerunder organic management,while other research hasfound a 30 per cent reductionin energy inputs.

Studies into various formsof farming have found thatno-till and organic methodshave the lowest global warm-ing potential. These methodspull carbon out of the atmos-phere and “sequester” it backinto the soil. Because theyavoid the use of fossil fuel-based fertilizers, organic farmsalso emit less nitrous oxideand other greenhouse gases.

Consumers and policy-makers have a responsibilityto demand more informationabout how food is producedand what it costs our environ-ment. We must begin thework of bringing our agricul-tural and environmental pub-lic policy goals together. Therole organic farming can playin uniting these two importantarenas remains to be seen, buta growing body of scientificresearch suggests organicfarming has much to con-tribute.

This opinion editorial is based inpart on an article published inthe Canadian Journal of PlantScience (July 2009).

Organic farming and theenvironment

The Canadian industry sees a wealth ofopportunity in the growing demand for organic,but there are challenges. Even though moreCanadian producers are moving to organic,Canadians’ demand for organic food is faroutpacing the Canadian supply.Learn more at www.organicbiologique.ca

Every time you purchase a quality Organic Meadow product,you’re helping our family farmers give back to the land throughsustainable farming practices. You’re also helping Organic Meadowgive back to the community.

As part of our strong social mission, Organic Meadow supports a number ofworthwhile charities - including The Stop/Green Barn in Toronto, the Farmers’Helpline, Second Harvest, the Guelph Family Shelter, and a co-op developmentin Gambia, Africa, and others. That’s something we can all feel good about!

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EEvery titime you pur hchase a qu lalitity OOrga inic MMe dadow proddu tct,yo ’u’re hh lel iping our ffamilily ffarmers igive bbackk tto tthhe llandd ththroughhsusuststaiainanablblee fafarmrminingg prpracactiticecess. YYouou’rree alalsoso hhelelpipingng OOrgrgananicic MMeaeadodowwgigiveve bbacackk toto tthehe ccomommumuninityty..

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A new ‘Canada Organic’logo is expected tobecome a frequent sight

on produce bins, store shelvesand packages in this country,and it is a symbol that willcome with a federal govern-ment guarantee, say sources.

The Canadian FoodInspection Agency (CFIA) isnow the ultimate authoritywhen it comes to assuring con-sumers that rigorous and con-sistent standards were used in

the production and processingof organic food.

Canada’s Organic ProductsRegulations (OPR) took effectJune 30, 2009 — making itmandatory for all organicfood, beverage and livestockproducts sold across provincialborders or imported intoCanada to be certified to thenew Canadian Organic Stan-dards.

“As an industry, we went tothe CFIA and asked to be reg-

ulated, which you don’t gener-ally see in the food sector,”says Matthew Holmes, manag-ing director of the OrganicTrade Association (OTA) inCanada.

The Canadian organic sec-tor has had voluntary stan-dards since 1999, but thesewere not legally binding orenforceable, and there wereseveral different standardsbased on internationally recog-nized organic principles.

The organic sector soughta mandatory national standardto give consumers more clarityand confidence, says Mr.Holmes. “It was getting con-fusing with different standardsand logos at play. We wantedconsumers to know that every-one is meeting the samerequirements.”

The regulations requireorganic food labels to containspecific information (for exam-ple, the name of the certifyingbody and the percentage oforganic ingredients). Only cer-tified products containingmore than 95 per cent organicingredients may be labelled as‘organic’ and carry the CanadaOrganic logo. Although thelogo is not mandatory, theindustry expects it will bewidely used — as a strong fed-eral ‘seal of approval’ that willbenefit both consumers andthe organic sector.

“A mandatory nationalstandard provides a long-awaited level playing field andeveryone stands to gain,” saysMaureen Kirkpatrick, stan-dards co-ordinator with TheBig Carrot Natural Food Mar-ket in Toronto. “The consumeris better protected from mis-leading or false claims, andgreater consumer confidencecan only lead to growth in theindustry.”

The other key reason forseeking regulatory oversightwas trade. Just as producersfrom abroad have to meetCanada’s organic requirements

to sell in this country, Canadi-an exporters of organic prod-ucts must meet standards inforeign markets.

Trying to meet differentstandards internationally canbe onerous and limit access,but as Canada moved into itsmandatory organic regime, itbecame possible to reach anew deal with the UnitedStates — organic certification inone country is now recognizedin the other.

“We breathed a sigh ofrelief when the Canadians andAmericans signed an equiva-lency agreement,” says SteveCavell, CEO of Canada’sOrganic Meadow Co-opera-tive Inc., representing over 100family farms producing organ-ic milk, eggs, grains andoilseeds. “The next mostimportant one is Europe, bothas a market and as a source ofproducts that our consumersbuy. And then within Canada,we want to see standards in

those provinces that currentlydon’t have them.”

Discussions on an equiva-lency agreement with theEuropean Union are proceed-ing well, according to Mr.Holmes.

On the provincial front,Quebec and B.C. have manda-tory provincial standards fororganic food produced andsold within their borders. Thisleaves a gap in otherprovinces, where food madeand sold within a provinceisn’t covered by federal regula-tions unless a producer wantsto use the Canada Organiclogo.

“Most of the organic prod-ucts we buy have crossedprovincial or international bor-ders,” Mr. Holmes says. “Butwe’re definitely encouragingall provinces to adopt the fed-eral system, so that we cangive consumers clarity andtrust in the entire organic mar-ket.”

A special information supplementTH E G LOB E AND MA I L

THUR SDAY , NOV EMB E R 1 2 , 2 0 0 9OF2

Organic foods: Learn more at www.organicbiologique.ca

REDUCE THE TOXIC LOADOrganic farming helpskeep harmful syntheticchemicals out of the air,water, soil and our bodies.What’s healthy for theworld is healthy for you.

PROTECT YOUR BABYWe don’t yet know howthe chemical cocktail oftoxins in our world andfood chain is affectingour children: do whatyou can to minimize theirexposure.

PROMOTE BIODIVERSITYOrganic farms have agreater diversity andabundance of life – bothabove and below the soil.

SLOW GLOBAL WARMINGOrganic farming is sustain-able farming. Organics

bans fossil fuel-based fer-tilizers; uses 30-50% lessenergy than other farmsystems; and with moreorganic matter in the soil,organic farms are pullingcarbon from the atmos-phere back into our soil,where it belongs.

SAVE THE FARMERSBuying organic productsgives organic farming fam-ilies a more liveable wageand supports Canadianfood security.

This report was produced by RandallAnthony Communications Inc. (www.randallanthony.com) in conjunction with the advertisingdepartment of The Globe and Mail. Richard Deacon, National Business Development Manager, rdeacon@globeandmail.com.

New regulations building consumer trust,open global markets for producers

B uying a jar of Crofter’sOrganic fruit spreads,made in Parry Sound,

Ontario, helps support envi-ronmental and social develop-ment in Brazil — a link thatCrofter’s founder GerhardLatka sees as fundamental tothe organic food movement.

“Organic is so much morethan lists of prohibited andpermitted substances,” saysMr. Latka, whose 20-year-oldcompany has become thelargest organic jam manufac-turer in North America. “Gov-ernment regulations can’tmandate social responsibilityand sustainability, but for usand for many consumers theseprinciples are at the heart oforganic food.”

Crofter’s fruit spreads, jamsand jellies are made with IBDEcoSocial-certified organic

cane sugar from Brazil’s GreenCane Project. This large organ-ic agricultural operationincludes environmentalenhancement, reforestationand wildlife protection, andprovides free health, educationand housing programs foremployees. Says Mr. Latka,“We care about our productand our supply chain, and weknow many organic food con-sumers want to help build abetter community and worldwith their choices.”

Supporting the Canadianfamily farm is integral to themission of Organic Meadow,an Ontario-based farmers’ co-op producing organic dairyproducts, eggs and other prod-ucts. “We know our customerscare about the fact that we sus-tain family farmers and ruralcommunities,” says CEO

Steve Cavell. “Organic agricul-ture began with a spirit ofcommunity and a businessmodel based on values, andthat’s still very much who weare.”

Organic Meadow alsogives back to the communityin other ways; for example,each employee is encouragedto work two paid workdays ata charity.

Organic values are underpressure, Mr. Cavell cautions,as larger corporations morefocused on profits enter theorganic market. “There’s a riskthat small farmers and proces-sors may get driven out of thevery market they created, but Ibelieve that organic producerscan be competitive while stillremaining true to the valuesand social responsibility princi-ples we began with.”

Organic means more thanfresh and wholesome

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The Big Carrot is proud to be one of Canada’s 1st retailersto certify to the new Canadian Organic Standard.Now certified to process and package over 700 organicproducts. Look for the logo throughout our store.

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Natural Food Market 416.466.2129Wholistic Dispensary 416.466.8432348 Danforth Ave. thebigcarrot.ca

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By Laura Telford, PhDNational DirectorCanadian Organic Growers

O ver the past 10 yearsthat Canadian OrganicGrowers has tracked

growth, organic farming hasexpanded at an average annu-al rate of 8 per cent. Contrastthis with mainstream agricul-ture where farms have beendisappearing faster than arcticglaciers, with two-thirds elimi-nated in the past 50 years.

Despite strong growth,Canadian organic productionis nowhere close to keepingpace with demand. In 2006,sales of organic foods in Cana-da grew 28 per cent. 2007 sawa more modest 20 per centgrowth rate, but if you consid-er that much of the food andanimal feed raised organicallyin Canada is destined for theeven more overheated organicmarkets of the U.S. and Euro-pean Union, we literally havea growing problem.

If there is so muchdemand, why don’t the farm-ers struggling to make a livingin a business with decliningeconomic margins, make theswitch to organic given the

fact that organic farming ismore profitable? There areseveral reasons. First, theaverage Canadian farmer is52 years old – not exactly thetime for a major life change.Then there’s the three-yeartransition period, where landwithdraws and recovers fromits chemical addiction and thefarmer begins to learn a newparadigm that focuses onavoiding crises instead ofreacting to them.

During the transition,crop yields can decline, sig-nificant investments in soilfertility, equipment andknowledge acquisition mayhave to be made. Transition-ing farmers are not able tocharge the organic price pre-mium until they are certifiedorganic, so there is no addi-tional revenue to offset thenew costs. But things improve

following transition. Organicfarming knowledge, soil fertil-ity and yields improve, costsdecline as the farmer gets offthe agricultural inputs tread-mill and income rises. How-ever, few farmers are pre-pared to undertake the riskythree-year transition withoutassurance that they can bringtheir organic products to mar-ket at a higher rate, that theyhave access to technical sup-port to help them battleweeds and pests withoutchemical backup, and thatthey can access the infrastruc-ture they need to processtheir products.

There is no simple fix –the solutions must be as com-plex as the causes, but the

experience of EuropeanUnion countries has shownus that market forces alone

will not create the magnitudeof change required to shiftCanadian agriculture from its

current commodity model toa more environmentally sus-tainable, bioregionally basedfood systems approach. Con-siderable government invest-ment in new organic farmers,infrastructure, skills acquisi-tion and risk mitigation arekey components of a muchneeded national action planfor organic agriculture.

Never has there been agreater opportunity for wide-scale change; Canadian con-sumers are demandinggreater accountability in thefood system, there is a press-ing need to reduce the envi-ronmental footprint of agri-culture, and our food securitydepends on stemming theloss of farmers.

A special information supplementTH E G LOB E AND MA I LTHUR SDAY , NOV EMB E R 1 2 , 2 0 0 9 OF3

Organic foods: Learn more at www.organicbiologique.ca

Mainstream national retailers and specialty chains such asThe Big Carrot (above) are playing an expanding role in theorganics movement. PHOTO: ISTOCKPHOTO.COM

Organic growers are calling for a national action plan tohelp more farmers make the switch to organic agriculturalmethods. PHOTO: ISTOCKPHOTO.COM

Organics, a growing challenge

R etailers of organic foodsare not required to becertified to the new

Canadian Organic Standards,but The Big Carrot NaturalFood Market in Toronto isamong the stores committed totaking that step.

“We believe it is ourresponsibility to our producersand customers to ensure thatthe final link in the organicsupply chain — the store — pre-serves the integrity of whatcame before,” says MaureenKirkpatrick, standards co-ordi-nator at The Big Carrot.

The store is already certi-fied by Ecocert Canada toensure its processing and pack-aging activities for organicproducts meet the new federalstandard.

Organic agriculture beganas a farmers’ movement, butretailers are playing anexpanding role.

In addition to followingstandards for storage, handlingand record-keeping, The BigCarrot works to tell the organ-ic story. “Consumer educationis critical for us as an organicretailer,” says Ms. Kirkpatrick.“Knowledgeable customerservice, free lectures and nutri-tional store tours, as well as in-store product demonstrations,help us promote the benefits oforganics.”

Retailers have tremendouspower to either promote ormarginalize organic products,says Gary Hirshberg, CEO ofStonyfield Farm, a major pro-ducer of organic yogurt in theU.S. and Canada. “Our prod-ucts make up 8 per cent of theU.S. yogurt market but insome grocery chains, we’retracking at 15 or 20 per cent,”he says. “That’s because thosestores don’t put our productsin an organic ‘ghetto.’ Theyintegrate them with the con-ventional yogurt and webecome a real alternative.”

Retailers are also helpingto strengthen the sector bycoming out with their own pri-vate-label organic products —providing a lower-cost optionthat exposes more consumersto organic.

“Retailers are essentialplayers helping to narrow themarket gap between conven-tional and organic,” says Mr.Hirshberg. “By giving us shelfspace and developing theirown labels, they are turningstores into classrooms whereconsumers can become moreeducated.”

Today, the biggest moversof organic products are themainstream national retailers,who are responsible for over40 per cent of Canada’s $2-bil-lion annual organic market.

Retailers’ role in organicmovement rising

“Few farmers are preparedto undertake the risky three-year transition withoutassurance that they canbring their organic productsto market at a higher rate.”

One spoonful of Stonyfield FarmOrganic Yogurt and you’re hooked.No two ways about it. We think it’s the cows.They are so happy you can taste it in theirfresh, wholesome milk. When you do thingsorganically, everybody is ecstatic — you,us, the cows, the planet! Stonyfield Farm

Organic Yogurt uses organic sun-ripenedfruit and organic cane sugar. Not onlyis our yogurt unbelievably smooth,rich and delicious, it’s both probioticand prebiotic. Small wonder Stonyfieldhas been the world’s most popular organicyogurt for over 25 years.

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