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Department of Agricultural Economics Organic Project Overview By Simon Weseen.

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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 Cont’d 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 Canada’s Organic Certification / Accreditation System –Understanding the USDA’s 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 gov’t 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 Cont’d Major conclusions –Federal gov’t 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 govt’s 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 gov’t

11 Marketing Study Objectives Cont’d 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 Cont’d 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 cont’d 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 Cont’d 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 CB’s) –investigate check-off and access to WEPA funding

21 SOD Organizational Review Committee Cont’d 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 Cont’d 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?


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