Department of Agricultural Economics Organic Project Overview

1
Department of Agricultural Economics Organic
Project Overview

• By Simon Weseen

2
Organic Market and Trade Analyst Position
Background

• 4 years (through March 31st, 2006)
• Project funded by a one-time grant from SAFRR
• Project Objective
• The overall goal of the project is to provide
  knowledge and information to the Saskatchewan
  organic industry that will aid in the development
  of a consistent, reliable and internationally
  accepted accreditation/certification system and
  long-term institutional and business
  relationships, thus allowing the organic industry
  to best position itself for the global market
  place.

3
Background Contd

• Work Plan was developed in fall, 2002
• was based on feedback from industry, and advisory
  committee
• areas of interest were marketing, value added,
  and organic regulation

4
Organic Regulation

• 3 papers
• Options for Improving the Efficiency of Canadas
  Organic Certification / Accreditation System
• Understanding the USDAs National Organic Program
  in the Context of the Canadian Organic Industry
• An Overview of the EU Regulatory System for
  Organic Agriculture

5
Objectives of Regulatory Papers

• Provide an overview of each of the systems
• Identify problems with Canadian system
• Describe how US and EU systems function in the
  context of the Canadian industry
• Identify potential lessons from US and EU systems
• What needs to happen in Canada?

6
Major Conclusions

• Canadian system is inefficient
• costly, low participation, no market access, does
  not protect domestic markets
• A mandatory national standard could alleviate
  some of these concerns
• Do not change the system drastically
• 3rd country status is essential for market access
  into Europe, starting in 2006

7
What is being done?

• Creation of the Organic Regulatory Committee
  (ORC) last year
• working with federal govt towards industry
  regulation
• Action Plan
• reach consensus on how regulation should occur
• assist in standard revision
• consult with industry across Canada
• apply to EU for 3rd country status

8
An Analysis of Legal Issues Arising from a
National Organic Standard in Canada

• Collaborative project with CSALE
• Evolved out of the need to expand upon the
  limited understanding of how an organic
  regulation would function
• Objective
• Explain how organic regulations could be
  introduced, in a legal context

9
CSALE Project Contd

• Major conclusions
• Federal govt does not have power to legislate
  organic production standards
• Can still encourage provinces to legislate
  standards through its spending power
• Co-operative effort between Federal and
  Provincial govts is necessary

10
Supply Chain/ Marketing Study

• Objectives
• Describe vertical supply chain for wheat, barley,
  oats, flax (surveys and interviews)
• Identify problems for industry development
• No contracts with local retailers
• Import export ratios
• Information Asymmetry
• Value added opportunities
• Role of the govt

11
Marketing Study Objectives Contd

• Determine how price is arrived at various stages
  of supply chain
• How can producers capture higher premiums?
• Identify areas for further research and
  development.
• Project is in the survey stage
• Marketing Guide?

12
Graduate Student Theses

• Shon Ferguson - Long-term Rents Accruing to
  Organic Farmers Under Alternative Supply Chain
  Governance Structures
• Erin Sawyer - International Accreditation as a
  Mechanism for Reducing Transaction Costs

13
Price Information Survey

• Objectives
• Obtain farm level organic price and volume of
  sales info for the prairies
• Make this information available to the public
  through websites
• Collaborative project of OACC/SCIC
• Survey being conducted by SRC
• Results in Feb?

14
Price Information Survey Contd

• Potential Benefits
• Benchmark for producers to determine market value
• Can evaluate current and future market trends
• E.g. How does market expansion affect prices?
• Provide info to SCIC for insurance purposes
• Provided price and quantity data for research
  already underway
• E.g. losses resulting from GM canola

15
Organic/ GM Co-existence Study

• Project funded by OACC/CARDS
• Primary researchers Dan Dierker / Hartley Furtan
• Objectives
• Determine if co-existence of organic and GM wheat
  technologies is economically feasible on a common
  physical landscape

16
Co-existence Study contd

• Preliminary Results
• It may be possible to create an organic club
  through which organic and GM wheat technologies
  can co-exist
• A buffer zone is required, in which only
  conventional technology can be used
• Increase in total welfare over the case, where
  only GM technology is used (winners compensate
  the losers)

17
Organic Information Website

• Website (http//organic.usask.ca)
• Designed as a mechanism for disseminating
  research and providing other info
• Homepage
• Research personnel and topics
• Graduate student research
• Publications, reports and, presentations

18
Website Cont'd

• Discussion forum
• Upcoming events
• Contact info
• National standard update
• ORC update
• Buyers contact page
• Consumer page
• Recent news
• links

19
SOD Organizational Review Committee

• Created at SOD annual meeting
• Reasons
• some producers feel excluded
• not completely fulfilling its mandate
• does not represent all producers
• Committee function
• Examine alternative organizational structures
  that would best serve needs of the Saskatchewan
  organic industry
• Project took a leadership role in research and
  writing of final report
• Gary Storey

20
SOD Organizational Review Committee Contd

• Project took a leadership role in research and
  writing of final report
• Gary Storey
• Recommendation highlights
• re-organize as producer organization with
  democratically elected board of directors
• expand to industry organization (including CBs)
• investigate check-off and access to WEPA funding

21
SOD Organizational Review Committee Contd

• Report was present to SOD on January 5th
• Other proposals were presented as well
• SOD Board of Directors met on January 6th to
  discuss all proposals
• Board of Directors have decide to create an email
  discussion group to decide what to do

22
Organic Conference

• Scheduled for Nov 14-16, 2004
• Centennial Auditorium
• Industry has ownership through Organic
  Connections
• 3 components
• Conference
• Tradeshow
• Consumer fair (organic food presentations)

23
Organic Conference Contd

• Conference portion has 3 themes
• Marketing and trade
• Production and agronomics
• Healthy lifestyles
• Funding through CARDS, this project, sponsorship,
  trade booths, registration
• See http//organic.usask.ca

24
Questions and Discussion?