An Introduction to Organic Beef Production

Introduction
The organic livestock industry is in the early stages of development but is rapidly gaining acceptance. This document will provide general information on production and marketing of organic beef, a sector that appears to be growing at a rapid pace.

A producer and/or rancher who is considering organic livestock production should gather information on production requirements, including cost-of-production and specifications of an organic standard. It is also very important to learn about the organic beef marketplace. The Canadian Organic Livestock Association (COLA) is a marketing organization that promotes the organic industry and develops marketing opportunities for its membership. For more information, please contact Carol Lowndes, Secretary-Treasurer, COLA, at (306) 327-4753, or at http://www.gks.com/cola

Although successful organic grain farming is not dependent on the inclusion of livestock, having a mixed operation does complement the holistic approach of organic agriculture, especially through nutrient recycling. Some underlying principles of organic grain production are the minimization of soil degradation and erosion and the replenishment and maintenance of soil fertility by encouraging biological activity within the soil. All essential nutrients are present to some degree in manure; the biological and physical properties of manure also help to improve soil structure and composition. As well as reaping the benefits of nutrient recycling, producers are increasing their on-farm revenue by adding value to their grain.

The Organic Beef Marketplace
For the average consumer, there is probably much confusion about the difference between an "organic" product and a "natural" product. An organic product must comply with the stringent production, animal husbandry and processing requirements of an organic standard. The marketing term "natural" is not as clearly defined as "organic". In general terms, a natural meat product is produced without the use of antibiotics and artificial growth stimulants. Organic meat production requires additional provisions that include an audit trail and third-party verification.

Organic Standard Requirements
Because there may be slight differences in requirements between the various organic standards, producers should always review the standard to which they are complying, and ensure acceptance of products and practices by their particular certifying organization. It is not the intent of this publication to outline detailed requirements of organic livestock production, but general guidelines can be given.

Record Keeping
Detailed record keeping of all aspects of the operation is required by the certification agency. The standards are defined by the certifying agency; there is third party inspection of the producer's operation, including animals, facility and records. Ultimately there is an audit trail from the primary product to the finished product.

Stock Replenishment
Beef to be sold as organic must be maintained under continuous organic management. Non-organic breeder stock may be brought into an organic operation provided that the animals, if gestating, are brought into the organic operation prior to the third trimester. There are no restrictions on male breeding stock and the practice of artificial insemination is discouraged.

Animal Health Care Practices
Producers of organic livestock should establish, maintain and document their preventive health care practices, particularly the practice they employ if illness occurs, and the protocol for determining when a sick animal must receive a prohibited drug. If prohibited drugs are used, the animal must be identified and sold into non-organic markets. In such a case, detailed records of the medication, animal identification and receipt of the conventional sale must be retained. Ruthless culling of chronic problem cattle is the best way to develop a healthy herd that is adapted to a particular farm.

A key ingredient in preventative health care is the reduction of stress. Animals should receive housing, pasture and sanitation conditions that minimize the occurrence and spread of disease. Conditions must also provide for exercise, freedom of movement and reduction of stress that is appropriate to the species.

Vaccinations and Antibiotics
The use of certain vaccinations is permitted; however, antibiotics are prohibited in order to maintain organic status.

Parasite Control
A common method of parasite control is the use of diatomaceous earth. This product can be used as a feed ingredient and is claimed to be effective for this purpose. Diatomaceous earth is also used externally as a dust for lice.

General Animal Husbandry
Producers should select types of livestock that are suitable to the management and facilities of their farms to minimize stress and disease potential. On-farm conditions should accommodate the natural behavior of the livestock. Access to the outdoors, shade and shelter must be provided. Excessive crowding of animals is prohibited - the space allotted per animal is generally twice that given animals in a non-organic environment.

Feed Requirements
All feed sources must be certified organic, without exception. Harvesting and processing must also occur in certified facilities.

Growth Hormones
The use of growth hormones is prohibited.

Manure Management
Producers are required to manage manure in a manner that does not contribute to contamination of crops, soil or water by plant nutrients, heavy metals or pathogenic organisms. Processing and application should be such that nutrient recycling is optimized. Composting is highly recommended and restrictions on the application of raw manure do exist.

The onus is on producers to ensure that all practices comply with the standard to which they follow and are approved by their certifying agency.

Cost-of-Production, Premiums, and Profitability

North American cost and return information for organic beef is very limited. A 1999 Prairie Organic Beef Costs and Returns Study that was prepared for Agriculture and Agri-Food Canada shows that, although organic beef producers receive a premium for their products, it does not always cover the extra costs of organic production. The study found that the cost of the finishing phase of organic beef was 27 to 39 per cent higher, while the returns were 31 per cent higher than conventional beef. The net returns for organic cow-calf operations were 60 per cent lower than for conventional beef production. A major increase in costs is due to sourcing organic feed and bedding. These components can be somewhat limited in supply and subject to price volatility.

This is an industry in development; as such, much of the necessary infrastructure is currently limited. Many components of the processing and marketing chain remain in flux. Issues in areas of product identification, promotion, consistency of supply, international harmonization of organic requirements and affordable processing must be addressed if the sector is to meet its potential. All of these components will affect the return side of the profitability equation, and until they are resolved, it is impossible to predict profitability. Producers must understand and accept the risks involved with this developing sector.

Although domestic markets may be underdeveloped, sustained profitability of organic beef production appears to be dependent on export markets. It is suspected that the costs and pricing structures for organic beef are much more dynamic than in the conventional market, as indicated by the volatility of organic grain prices. As the market and the industry develop and mature, the costs and returns may stabilize and provide newcomers to this sector with a clearer picture of the risks and rewards of organic beef production.

For more information, please contact:
Blaine Recksiedler, (306) 787-4664
Baz Fritz, (306) 787-4677
Kathy Martin, (306) 787-4692
Saskatchewan Agriculture & Food
Sam Rhode, (306) 845-3119
Canadian Organic Livestock Association (COLA)