Identifying Organic Markets

Over the past several years, the organic sector has been one of the fastest growing components of P.E.I. agriculture. To help ensure that continues, the P.E.I. Organic Producer's Co-operative has commissioned the George Morris Centre in Guelph to help identify potential new markets and the best way to capitalize on them. The P.E.I. Adapt Council (which administers the Canadian Adaptation and Rural Development Fund in the province for Agriculture and Agri-Food Canada), helped to fund the endeavor.

The study will wrap up in October, but Co-operative president Raymond Loo said the agricultural think tank has presented a preliminary report that contains some encouraging results.He said the demand is strong in soybeans and other vegetables and "meat is gaining importance very quickly as well as canola oil."

The provincial government has already issued a request for proposals to examine the possibility of building a canola extraction plant as part of its alternative energy strategy. Loo said the meal that would be left after the oil is extracted is rich in protein and could command a premium price in the marketplace if it is non-GMO and could be used for feed.

Loo said the centre surveyed company and individuals who are buying and selling on the international market and 88 per cent indicated there was an increasing demand for non-GMO products.

"We see a big demand for feed grains in the next year, particularly in the New England States," Loo said. "There is a big demand for barley and P.E.I. has an excellent climate for growing non- GMO barley in rotation with potatoes."

He said the interim study indicates people are willing to pay more for what they perceive as a positive value. The study indicates the growth in the industry will vary form crop to crop- some things like organic canola are much more difficult to obtain."

Right now, he said organic feed is in great demand and premiums have been as high as 50 per cent compared to the conventional variety. However, Loo explained that is a mixed blessing since it also makes organic milk and livestock more expensive to produce. He is hoping the feed producers will still make a premiums but that the cost will become more competitive over time.

Loo said the study also indicates the industry should be looking at a different way of marketing, not only for the organic industry but agriculture as a whole. He said "we have to make sure producers are making money and not just the retail stores."

The study showed P.E.I. already has a positive image in the minds of many consumers, and there are a number of possibilities to increase organic production. Loo said the industry is trying to build towards the future and realizes it will take time for the market to reach its full potential.

Source:

ADAPT council newsletter in PEI.

Phil Ferraro, Executive Director, P.E.I. ADAPT Council
c/o The Farm Centre, 420 University Avenue, Room 103
Charlottetown, Prince Edward Island Canada C1A 7Z5
Phone: (902) 368-2005
Fax: (902) 368-2520
Email: adapt.pei@pei.sympatico.ca
or adapt@pei.aibn.com