Organics - Overview 2005

There are over 3,300 certified organic farmers^[1], 150 processors and distributors, and 46 certifying bodies in Canada.^[2] Canada is among the top five world producers of organic grains and oilseeds with an estimated retail/food service value of $1 billion.^[3]

Canada had 966, 000 acres (391,000 hectares) under organic management in 2003.^[4]  Saskatchewan’s organic acreage in production accounted for 58 per cent, or 561,496 acres, of Canada’s total organic production, and for almost one-third of the nation’s organic farmers.^[5]

The majority of Canada’s organic products are exported as bulk grain and oilseed products. The United States, where a large proportion of the organic products are processed, is the largest market for many Canadian organic grains, followed by the European Union and Japan.  The global market for organic food and drink was valued at US$ 23 billion in 2002.^[6]

The Canadian organic market has been reporting growth of 15 to 20 per cent per year since the late 1990s.^[7]  Agriculture Canada estimates organic retail sales will reach $3.1 billion in 2005.^[8]  The industry’s market share is expected to increase to 10 per cent of the Canadian retail market by 2010.^[9]

In November 2004, the Government of Canada formed the Organic Production System Task Force.  This task force will work toward the development and implementation of a national inspection and certification regime for organic production, sales, imports and exports.

In a parallel process, the Canadian General Standards Board is working with the organic industry in updating the Canadian National Standard.

Key Sector Trends

• In recent years, the demand for organic products in Canada has increased at an estimated rate of 20 per cent. Similar growth rates are also occurring in the United States, Europe and Japan.
• Consumer concerns about diet, health, the safety of the food supply, the environment, and taste and quality are driving the growth in the organic food market.
• Organic consumers, products, and retailers are becoming more mainstream. The taste, packaging, and brand positioning have improved the appeal of organic products.
• Watch for more organic fast-food restaurants and chains, and more existing restaurants adding organic offerings to their menus.  McDonald’s added organic milk to its British menus early in 2003.^[10]
• As more countries develop economically, and as their populations become increasingly educated and more affluent, demand for organic products will rise.  Rapid economic growth in countries like China, Brazil and South Africa is causing the upper social classes to expand, and this is creating a market for organic food and drink.^[11]
• The North American market for organic products is reporting the highest growth worldwide.  Organic food and drink were estimated to have expanded by 12 per cent to US$ 11.75 billion in 2002.  Consumer demand for organic products remains buoyant and the region is expected to account for most global revenues in the foreseeable future.^[12]
• Datamonitor projects U.S. organic sales to reach US$ 30.7 billion by 2007, driven largely by double-digit growth in the meat and meat products industry.  Sales of organic meat and meat products are expected to grow from US$ 547 million in 2002 to US$ 3.86 billion in 2007.^[13]

Saskatchewan Sector

Saskatchewan has over 560,000 acres in organic production, 1,000 certified producers, and over 20 certified processors and handlers.^[14]  Saskatchewan has the largest number of organic producers in Canada and is the leading Canadian exporter of organic grain and oilseed products and cereal-based food ingredients. The province is well suited for organic agriculture because of its clean, natural environment, cold winters, and abundant farmland.

The types of organic foods processed in Saskatchewan ranges considerably from ingredients, such as flour and canola oil, to consumer ready/packaged products, like bread, cereal mixtures and oatmeal.  The Saskatchewan Organic Processors Directory highlights the various companies involved in this growing sector.

[1] Organic Statistics 2003 - Canada, http://www.cog.ca/2003OrganicStatistics.htm
[2] Canada’s Organic Industry, http://ats.agr.ca, Government of Canada
[3] Ibid, 2.
[4]Organic Statistics 2003 - Canada, http://www.cog.ca/2003OrganicStatistics.htm
[5] Organic Statistics 2003 – Saskatchewan, http://www.cog.ca/2003OrganicStatistics.htm
[6]The World of Organic Agriculture: Statistics and Emerging Trends 2004, http://www.soel.de/inhalte/publikationen/s/s_74.pdf , 21.
[7] Ibid, 24.
[8] Ibid, 160.
[9] Canada’s Organic Industry, http://ats.agr.ca, Government of Canada
[10] Making a Splash in 2005, January 5, 2005, Chicago Tribune
[11] The World of Organic Agriculture: Statistics and Emerging Trends 2004, http://www.soel.de/inhalte/publikationen/s/s_74.pdf , 21.
[12] The World of Organic Agriculture: Statistics and Emerging Trends 2004, http://www.soel.de/inhalte/publikationen/s/s_74.pdf , 23.
[13] Ibid, 155.
[14] Organic Statistics 2003, Saskatchewan, www.ota.com