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Organic Markets Defying Economic Downturn - Organic News from OANZ

Saturday, July 11, 2009
Posted in Organics | Tagged Organics

This week’s issue of Rural News should be required reading for policy makers, media and anyone who still questions the benefits of converting to organics. This week’s editorial outlines how international organic markets are defying the economic downturn, with a supporting piece noting that in the United States, rising consumer demand is the toughest issue confronting organic trade. Simply put, organic retailers find it hard to keep enough stock on the shelves.

In fact, certified organic products account for 9.8% of all fresh fruit and vegetables sold in the US, as well as 5% of all dairy products. The US organic market as a whole grew 17% last year, despite an ailing economy.

Rural News argues that organic farming deserves much more attention from conventional farmers and national policy makers alike. OANZ would agree.

But if media are looking for on-farm leadership - for people ‘ahead of their time’, who can identify opportunities, then innovate and inspire their way to achieving them - they should look directly to organic farmers and the organizations we have built “from the ground up”.

OANZ’s Organic Advisory Programme (OAP), which officially concluded on 30 June, offered a model of farmer-to-farmer learning. The OAP provided information to current organic producers, those thinking of making the switch to organics, and farmers who were simply looking for a better way. The information network it created has the potential to benefit all of New Zealand’s agriculture.

Meanwhile, organics provides precisely the example of high quality and high value which the Prime Minister should be thinking of when he promotes our country’s food and beverage production. As well as creating healthy, value-added products, organic systems offer environmental sustainability, represent long-term employment in rural communities, and enhance New Zealand’s ‘100% Pure’ tourism and trading image.

And in November our sector will gather at the University of Waikato for OANZ’s second Organic Conference, focusing on organic research, science and innovation. Knowledge is one input that organic farmers cannot do without - but unlike with biotech, organic research can ensure that New Zealand products meet the world’s demand for GE-free, residue-free food well into the future.

Even during the economic downturn, organic producers offer positive examples of leadership in economic, environmental and social development. I’m glad Rural News agrees.

Organic Advisory Programme ends

OANZ’s Organic Advisory Programme - a three year project which was agreed between the Green Party and the previous government, and administered by the Ministry of Agriculture and Forestry - came to an end on 30 June.

Dr Jon Tanner, OANZ Chief Executive Officer, said that the Organic Advisory Programme had been successful in encouraging farmers into organics, with two thirds of those receiving a Smart Start consultation now in conversion.

Dr Tanner says the Organic Advisory Programme also made nearly $880,000 available to thirty smaller regional, sector and other projects, enabling small organic groups to identify and provide their own extension activities.

“OANZ would like to see the knowledge network established through the Organic Advisory Programme maintained”, Dr Tanner said. “Without coordination of this network, stronger groups may continue with the backing of their industry bodies, but others won’t fare so well”.

As an interim measure, organic extension is available through some producer groups, with access to information available through OANZ’s 0800 FUTURE information line and website.

Organic dairy co-operative forecasts $7 payout

The NZ Organic Dairy Farmers Co-Operative is promising farmers its payout this season could be as high as $7 per kilogram of milksolids.

This is $1.40 more than Fonterra is offering for organic milk and $2.45 higher than Fonterra’s forecast for conventional milk.

Russell Simmons, who founded the NZ Dairy Farmers Co-operative, says the $7 figure was arrived at using a 58c exchange rate with the US dollar, so if the rate remains around its current level of 63c, the co-operative’s payout will be closer to $6.50.

The co-operative will begin milk collection from 25 farms across the North Island next month, once it has completed a new factory at Okato, in Taranaki.

Mr Simmons says the co-operative was founded in competition with Fonterra because “we thought there’s a huge market opportunity and organic dairy farmers wanted to control their own destiny.”

Farmers from the Hauraki Plains, Huntly, Otorohanga and Te Awamutu are among those who will supply an estimated 22 million litres of organic milk to the co-operative for export this season.

Mr Simmons says they aim to recruit a further 20 suppliers next season, doubling milk collection to 44 million litres.

Waikato farmers David and Ailsa Miller, who switched to the NZ Dairy Farmers Co-operative in May after eight years supplying Fonterra, see it as “an exciting opportunity” for small and medium sized dairy farms.

Like Fonterra, NZ Organic is offering on-farm education and support to farmers during the conversion period.

Correction

In our last newsletter we reported that Fonterra has just under 100,000 cows under organic management. In fact, the company has about 17,000 certified organic cows, and its goal is to increase that to around 50,000.

Farmers sought to grow organic wool

Wool Partners International is looking for more sheep farmers interested in converting to organics, to help meet growing demand for organic wool in the United States.

Chief executive Iain Abercrombie says demand for organic wool in the US is currently outstripping supply. He says the company’s export arm, Bloch & Behrens, has been working with organic wool growers for two years and has established regular business in the US in a joint venture with a large importer in that market.

Mr Abercrombie says the US organic wool customer is currently paying $1 per clean kilo over
market prices and is willing to provide a further incentive in the form of payment towards
shearing costs. The wool will be primarily for use in soft furnishings and as knitting wools. He
says the US customer has committed to pay a further $0.50 cents per clean kilo towards the
shearing of wool that meets organic certification requirements and is committed under contract.

For more information, phone 03 357 0082 or email info@woolpartners.com.

US and Canada Agree on Organic Equivalence

The US and Canada have reached a ground-breaking agreement that allows trade of organic food between the two countries.

They have agreed on a “common set of organic principles” and reached an equivalency agreement. Organic food that meets the USDA organic standard can be sold as organic in Canada, and organic food which meets Canada’s national organic regulations (that took effect on June 30) can be sold in the US.

Products traded under the agreement may carry both the USDA Organic seal and the Canada Organic Biologique logo.

US Deputy Secretary of Agriculture, Kathleen Merrigan, sees the production of organic foods as a “vibrant growth opportunity” for American agriculture. She adds that the agreement is “an important first step towards global harmonization of organic standards.”

OANZ and the Organic Products Exporters of New Zealand Inc have been seeking organic equivalence negotiations between New Zealand and the USA for some time. OANZ Executive Officer Gavin Middleton said he hopes that the US/Canadian equivalency agreement will lead to renewed discussions with countries like New Zealand, which have high organic standards of their own.

Melbourne Organic Expo

More than 200 producers of organic products will be on show at this year’s Organic Expo in Melbourne later this month.

The expo is a focal point in the Australian organic industry’s annual calendar and provides the only opportunity in the Oceania region for traders and consumers to experience what’s new in the organic industry.

As part of the show there will be a 150-seat demonstration stage, presentations of Australia’s 2009 Organic Expo Awards, and a wide selection of Australian and New Zealand organic wines on display and available for tasting.

The expo will host a programme of demonstrations, seminars and panel discussions from celebrities and industry professionals who are keen to share their knowledge and passion, with renowned chefs Kylie Kwong and Tobie Puttock there to cook up a storm of organic food.

Andre Leu, Chairman of the Organic Federation of Australia, says, “The Organic Expo plays a crucial role in allowing producers and traders to access the rapidly growing Australasian and South Pacific markets. This region offers enormous opportunities for organic and environmental businesses.”

The show is on from July 24 to 26. More information at www.organicexpo.com.au.

US doctors advise: ‘eat organic and local’

The American Medical Association has come out strongly in support of organic and local foods as a way to promote health and help curtail spiralling healthcare costs.

The AMA voted at its recent convention to support “practices and policies within health care systems that promote and model a healthy and ecologically sustainable food system.”

This statement wasn’t just your usual “eat your fruits and vegetables, cut down on fatty food and exercise” type of recommendation. It was a blanket endorsement of organic and local foods, recognising that the way food is produced effects health, the environment, even the conditions of workers.

The resolution was based on a report by the AMS’s Council on Science and Public Health, which presents an informed view of the current nutritionally deficient food system.

The report states the current US food system is highly industrialized, focusing on the production of animal products and federally subsidized commodity crops, such as corn and soybeans. This has resulted in a highly processed, calorie-dense food supply, instead of one rich in a variety of fruits vegetables, and whole grains … The poor quality diets supported by this system contributes to four of the six leading causes of death in the United States: heart disease, stroke, diabetes and some cancers.

The report concludes, “Clinical approaches to addressing diet-related health concerns are costly and not sustainable.”

It’s ironic that for many years, back in the 1950s and 1960s, the AMA did battle with one of the earliest proponents of organic farming, J.I. Rodale. They investigated him, and brought complaints to the Federal Trade Commission (over Rodale’s over-zealous promotion of vitamins). Now, it appears the AMA is finally acknowledging that Rodale was right - and that the way food is produced effects health.

Organic NZ  magazine: July/August 2009

The July/August issue of Organic NZ is out now, and features communities and eco-villages, including a look at Tui Community, Earthsong Eco-neighbourhood, and a Northland extended family living close to the land in “voluntary poverty”.

Brendan Hoare writes about our organic community at the crossroads. He issues a challenge to us to move away from complacency and a substitution mindset and towards holistic land-use practices, and continued leadership in evolving the organic culture.

Tim Jenkins offers some good practical advice on mineral fertilisers. Jenni Anderson interviews the Sloans, dairy, sheep and beef farmers from Southland, who have been farming organically for 37 years, and this year celebrate 25 years of being certified organic with BioGro.

There are stories on durable eucalypts, gardening in winter, and Nelson permaculturist Ted Howard, who uses a cargo bike as his business vehicle. Soil & Health also welcomes the High Court decision to require ERMA to set aside AgResearch’s broad-brush applications for a range of GE animals.

The theme of the next issue (September/October) will be “Organics: authentic or sell-out?”.

It’s still only $40 to join Soil & Health, which gives you a year’s subscription to Organic NZ. Join online at www.organicnz.org or phone 09 419 4536.

Chef wanted for organic cafe

There is an opportunity for an innovative and motivated person to run an organic cafe/restaurant in South Canterbury. Situated on State Highway One at the Arowhenua Hotel and camping ground, with up to 50,000 vehicles passing a day. Opportunity to run as your own business and have total control over the menu. Contact Karen Collings, fish@opihiriver.co.nz.

Diary these dates

July 26, 2009. Canterbury Organics and CCOG mid-winter event. Biological Husbandry Unit, Lincoln. Topics: Preservation & restoration of Waiwera (Lake Forsyth) - Robin Wybrow. Organic farming in Ireland - Charles Merfield. Contact Gilda at Canterbury Organic corganic@organics.org.nz, phone 3251344, or Mary Ralston mary.ralston@xtra.co.nz, phone 03 302 9202.

August 6-9, 2009. Terraquaculture Training. Four day Short Course - Introducing Asia-Pacific Terraquaculture, with Prof Haikai Tane and Brendan Hoare. At Aio Wira Centre, Waitakere City.

Cost: Early bird $1450 till 19 June. Full fee $1550 from 20 June. More information: Sheryl Lam,
sherylam@kinect.co.nz or phone 03 435 0366.

October 20-22, 2009. Orchard & Arable Sustainable Nutrient Management Course. Massey University. More information: Lance Currie, L.D.Currie@massey.ac.nz

November 13-15, 2009. Second National Organic Conference (organised by OANZ). University of Waikato. Theme: “Innovate: Go Organic!” The conference will focus on innovative ways to produce, market, and use organic products. Registration and more information: www.goorganic.org.nz.
Organics News Roundup

MAF dodging Plant & Food’s $10million GE liability.
Scoop.co.nz  29/06/2009

The final response of MAF’s biosecurity and enforcement teams following major breaches of consent by Plant & Food Research at its GE brassica (broccoli, cauliflower, cabbages etc.) field trial during 2008, is a massive insult to the more than 930 submitters who opposed the field trial, and shows the corruption of government, according to the Soil & Health Association of NZ.

Soil & Health spokesperson Steffan Browning first alerted Ministry of Agriculture and Forestry - Biosecurity New Zealand last December to his discovery of the breach. Plant & Food Research had left GE brassica plants to flower in the field, something that was not permitted under the field trial’s consent conditions.

Last Monday a MAF Investigator from MAF Infrastructure and Compliance Enforcement notified Mr Browning that MAF had finalised the matter by way of a formal warning to the Plant and Food Research Field Test Manager, the scientist who had resigned her position as approved containment facility operator following publicity of the breach.

“MAF was in a position to send the strongest possible message to the science community for its sloppy approach to GE field trials. Instead it has just passed them the most lenient next-to-nothing approach possible,” said Mr Browning.

“The ’slap over the wrist with a wet seed packet’ of a formal warning to the GE field trial’s key scientist, dodges the responsibility of her employer, Plant and Food Research, who continues to experiment with many other GE vegetables and flowers indoors and is holding an approval for a substantial and more risky GE allium (onion family) field trial that has not yet been planted. These GE crops will be allowed to go to flower and set seed in the field”. More… http://www.scoop.co.nz/stories/PO0906/S00311.htm

‘Greenwash’ accusations hogwash: Food council
The New Zealand Herald  29/06/2009

Words like “green”, “organic” and “sustainable” are bandied about in New Zealand just as they are elsewhere in the world. Katherine Rich, chief executive of the Food & Grocery Council, which represents the country’s $15 billion food industry, says the word “organic” is clearly defined in New Zealand.

“Producers have to produce goods that meet a specific criteria. If the goods don’t pass the test, companies can’t say they are organic,” she says.

There have been successful prosecutions by the Commerce Commission against foods falsely labelled as “organic”.

“It’s not so clear with the use of the word ’sustainable’, which has a wide and varied use,” says Rich.

She says she is aware of accusations of “greenwash” in the food industry, both in New Zealand and internationally.

“It’s a cheap shot when some argue business is disinterested in the environment and corporate responsibility,” she says. “My experience is that is not the case.” More… http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10580816

The individual comments and views in this newsletter do not necessarily represent the view of OANZ