Transitioning to Organic: A Risk-Based Analysis

Transitioning to Organic

Between 2016 and 2018, COG worked with industry members from the Organic Value Chain Roundtable and with consultants Seracon and Group Agéco on a cross-Canada research project to better understand the risks and barriers preventing farmers from transitioning to organic production.

Market research showed that Canadians wanted organic products and that concern about agriculture’s impact on the land and environment was driving this demand. However, increasing demand is not being matched by domestic supply, and Canadian farmers struggle to benefit from the market opportunities of transitioning to organic production. This inability to take advantage of the “organic opportunity,” means Canadian consumers fail to find Canadian organic products in our grocery stores, and Canada fails to capitalize on the environmental benefits of increased organic practices.

So, what are the barriers?

This is the question that drove COG to commission this study. We recognized early on that identifying the risks and barriers facing transitioning farmers would be critical to understanding what Canada needs to enable a competitive and innovative organic industry. If we want a clear path forward, we need to know where we are starting from.

The project included an in-depth review of transition literature, case-studies with producers in various commodities, focus groups with producers in regions across Canada and two provincial program evaluations. We hope that this report will be a resource for future projects and/or studies looking to remove existing barriers and strengthen Canada’s organic sector.

Deliverables

Transitioning to Organics: A Risk Based Analysis

The Canadian Organic Growers commissioned the present report to examine the risks and costs of transitioning to organic crop and livestock production. The project team developed this detailed report and a referral tool informed by a literature review, on-farm case studies, and focus groups held across Canada.

On-farm visits provided insight into a number of risks that had not necessarily been identified in literature review as being significant but were considered major obstacles or risks by the farmers interviewed. Wider input on those risks was then received from a larger sample of Canadian organic growers through a series of eight focus groups held across the country.

We would like to extend a huge thank you to the project team for their work on this initiative, to the Government of Canada for the funding that made this project possible, and to our members and donors whose continued support allows us to continue working on behalf of Canadian farmers and consumers. We could not have done it without you!

Full Report

Report Summary

Rapport Final Résumé

Infographics

Top 3 Motivating Factors For Transitioning

These are the top three factors motivating Canadian farmers to transitions to organic production:

Access to Expanding Markets

The respondents made it very clear that there was a market opportunity for producers to grow organically produced fruits and vegetables. The magnitude of demand for organic produce is not currently being fulfilled and has created an opportunity for certified organic growers.

Potential to Increase Profits

This is seemingly linked with the primary motivating factors of increasing market opportunities.

Farm Sustainability

Being able to produce fruits and vegetables for generations to come. There was the strong belief that producing fruits and vegetables organically was the right way to farm and would allow them to farm for many years to come.

Top 5 Key Risks of Transitioning

These are the top five risks impeding Canadian farmers from transitioning to organic production:

Non-Allowable Inputs

A lack of clarity on inputs allowed for organic certification may lead to a crop being certified.

Few Buyers

Growers relying initially on a single buyer may lose their market if the purchasing business fails. The anticipated organic market premiums may not come to fruition.

Understanding of the Certification Process

A grower may not be able to access resources required to successfully navigate the certification process, including selection of the certifying body.

Record Keeping

Insufficient or inaccurate records may lead to a crop not being certified. The burden of record-keeping may lead to a grower not completing transition process.