Estimated Organic Market Share and Sales

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					             The Organic Sector in Canada




             Overview of Current Statistics
                     Janine G. Gibson, President,
                      Canadian Organic Growers
                         Accredited Inspector
              Independent Organic Inspectors Association

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               The Organic Sector in Canada
                       Consumers


     •   Canadian Consumer Profile: Environics „01
     •   40 % of Canadians buy organic products
     •   18% regularly (heavy buyers)
     •   22% several times (light buyers)
     •   another 31% have purchased once or twice
     •   64% of Canadians believe strongly or somewhat
         that organic food is better



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             The Organic Sector in Canada
                      Standards


     • The Canadian National Standard for
       Organic Agriculture CGSB/CAN 32.310-99
       is currently being rewritten to harmonize
       with the US, EU and Japanese standards
     • An ad hoc Organic Regulatory Committee
       of sector representatives is designing, with
       the Canadian Food Inspection Agency, a
       regulatory system to provide oversight of
       the standard.

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              The Organic Sector in Canada
             Industry Sales and Growth Rates


     Agriculture and Agri-Food Canada states:
          • that the organic farm cash receipts
            totaled approximately $600 million in
            2000, representing about 1.5% of total
            agricultural farm cash receipts.




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                    Canada-Certified Producers

                                  Canada - Certified Producers

             4000


             3500
                                                                                   3236

                                                                            2981
             3000


                                                                     2321
             2500
                                                              1932

                                                       1830
             2000
                                                1724
                                         1510
                                  1355
             1500
                    1174   1239


             1000


             500


               0
                     92    93     94      95    96     97     98     99     2000   2001




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                           Maritimes - Producers

                                               Maritimes

             100


             90

             80


             70

             60
                                                                              Nova Scotia
                                                                              PEI
             50
                                                                              New Brunswick
                                                                              Newfoundland
             40


             30

             20

             10

              0
                   92     93   94   95    96    97   98    99   2000   2001




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                    Western Canada - Producers

                             Western Canada - Certified Producers

             1200



             1000



             800

                                                                             Manitoba
                                                                             Saskatchewan
             600
                                                                             Alberta
                                                                             British Columbia

             400



             200



               0
                    92      93   94   95   96   97   98   99   2000   2001




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                   Ontario/Quebec – Producers

                                           Ontario / Quebec

             700



             600



             500



             400
                                                                                   Quebec
                                                                                   Ontario
             300



             200



             100



              0
                   92      93    94   95     96   97    98    99   2000   2001




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             The Organic Sector in Canada
                       Acreage


     • The area of organic production in 2000
       was estimated at 705,000 acres (285,000
       hectares).
     • Organic wheat acreage jumped 26% in
       Manitoba between 1998 & 2001 to 7899
       acres.
     • 94,900 acres organic wheat in
       Saskatchewan in 2000 and 65,000 acres
       in other cereals.

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                  Western Canada – Farm Types

             Manitoba
                                               Saskatchewan




                        Fruit, Vege
                        Field crops
                                                                 Fruit, Vege
                        Livestock
                                                                 Field crops
                        Other
                                                                 Livestock
                                                                 Other


             Alberta                          British Columbia




                                                                 Fruit, Vege
                           Fruit, Vege
                                                                 Field crops
                           Field crops
                                                                 Livestock
                           Livestock
                                                                 Other
                           Other



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                      Eastern Canada - Farm Types

               Quebec                              Ontario                            PEI




                           Fruit, Vege                           Fruit, Vege                   Fruit, Vege
                           Field crops                           Field crops                   Field crops
                           Livestock                             Livestock                     Livestock
                           Other                                 Other                         Other


             Nova Scotia                 New Brunswick                         Newfoundland




                           Fruit, Vege                   Fruit, Vege
                                                                                              Fruit, Vege
                           Field crops                   Field crops
                                                                                              Field crops
                           Livestock                     Livestock
                                                                                              Livestock
                           Other                         Other                                Other

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               The Organic Sector in Canada
                     Fruit & Vegetables


     • Organic farms account for approximately
       1.9 per cent of the commercial fruit area
       and about 1.6 per cent of the commercial
       vegetable area. As of 2001, British
       Columbia, Ontario and Quebec are the
       three main areas of organic fruit and
       vegetable production.
         (Statistics Canada).

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              The Organic Sector in Canada
                  Fruit and Vegetables


     • British Columbia has the largest number of fruit
       and vegetable producers adopting the organic
       system of production.
     • British Columbia also claims the largest
       percentage of total commercial area:1350 acres
       fruit or 3.2% of total fruit area in the province
     • British Columbia: 1340 acres in vegetables or
       8.7% of total vegetable area. Ontario 995 acres
       fruit, 2025 acres vegetables. (2000 Statistics
       Canada survey).

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             The Organic Sector in Canada
                         Beef


     • The Canadian organic beef industry has grown
       rapidly in the past few years.
     • The “1999 Prairie Organic Beef Costs and
       Returns Study” indicates there were 29 certified
       organic beef herds in Western Canada, 19 of
       which were in Saskatchewan. In total, 1,000
       head of cattle from these herds were taken to
       slaughter as finished beef and sold as certified
       organic.

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              The Organic Sector in Canada
                          Beef


     • 42 certified organic beef producers were listed in
       the Alberta Organic Food Producers and
       Processors Directory in 2001.
     • Alberta figures 2000 ( based on 75% of
       producers surveyed) indicate 3056 organic head
       with another 1500 transitional and an additional
       2858 organic calves. Saskatchewan reported
       9290 head of organic beef cattle in 2000. 28
       organic beef producers in Ontario, farms are
       smaller than those in Western Canada.

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              The Organic Sector in Canada
                         Grains


     • Organic grains grown in Canada include wheat,
       barley, oats, rye, spelt, buckwheat, canola, corn,
       flax and soybeans. This sub-sector differs from
       the others, as it is not directed towards
       Canadian consumers.
     • Canada is among the top five world producers of
       organic grains and oilseeds with an estimated
       retail/food service sub-sector value of $1 billion,
       including processed and non-processed
       products.

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             The Organic Sector in Canada
                        Grains


     • Agriculture and Agri-Food Canada states
       that organic wheat is Canada‟s largest
       organic crop export with approximately
       15,000 tons exported in 1999; 50% to
       Europe, 25% to Japan and 25% to the US.
     • Domestically Organic grains and grain
       products are purchased by manufacturers,
       processors or by farmers for organic
       animal feed.

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             The Organic Sector in Canada
                      Oilseeds


     • Oilseeds: Organic soybeans are an
       important export crop in Ontario with an
       estimated 11,000 acres. Organic canola
       production has dropped in most regions
       because of the threat of contamination
       from GE crops.




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             The Organic Sector in Canada
                        Dairy


     • There is increasing consumer demand for
       milk, cheeses and other dairy products.
       Several organic dairy companies now
       produce fresh milk, yogurt and cheese in
       BC, Ontario and Quebec. Products are
       shipped across the country. In 1998 most
       organic diary products were sold in natural
       food stores; now in mainstream
       supermarkets

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             The Organic Sector in Canada


     • Maple syrup is produced for the organic
       market in Quebec which had at least 90
       organic maple syrup producers in 2000
       and also in Ontario and New Brunswick
       (7000 taps).




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             The Organic Sector in Canada


     • Wild Rice: 35,382 acres of wild rice
       lakes are reported in the certified organic
       program mainly in Manitoba,
       Saskatchewan, and northern Ontario.
       Saskatchewan reported 129 wild rice
       producers in 2001; Manitoba 13.




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             The Organic Sector in Canada
                 Processed Products


     • Processed - frozen produce, breakfast
       foods, processed meat, prepared meals,
       cereals, breads, baked goods, pasta and
       rice, beverages, jams and spreads, snacks
       and baby food. Canada has a small
       organic processing industry that is growing
       steadily with mainstream retail support for
       organic products.

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                   Organic Processors/Handlers

                          Canada - Certified Processors/Handlers

             600



             500



             400                                               379

                                                    323

                                         281
             300



             200
                               164
                    143



             100



              0
                    97          98       99        2000       2001




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             The Organic Sector in Canada
                     The Market


     • The organic market is strongest in British
       Columbia, Quebec and Ontario.
     • 22 per cent of BC consumers are organic
       shoppers and approximately 3.3 million
       consumers purchase organic products in
       Alberta and BC.



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             The Organic Sector in Canada
                     The Market


     • In Ontario and Quebec, the organic market
       has seen steady growth in the past five
       years due to consumer demand.
     • Retail industry sources indicate there has
       been a 20 per cent increase of shelf space
       dedicated to organic products in Ontario
       and Quebec grocery stores.


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             The Organic Sector in Canada
                     The Market


     • Organic products are no longer
       exclusively sold in health food stores
       but also in mainstream grocery
       stores, bakeries, and other
       foodservice venues
     • Direct to consumer sales are up with
       increasing numbers of farmers
       markets and box programs.

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             The Organic Sector in Canada
                     Retail Sales


     • According to Canadian Grocer Magazine
       (June 2001), mainstream grocery stores
       claim 40 per cent of the produce SKU‟s
       are organic. Health food stores provide 30
       per cent and online grocery companies
       account for 30 per cent organic sales in
       the BC market.


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             The Organic Sector in Canada
                  Retail Market value


     • Agriculture Canada showed the Canadian
       organic retail market at $1 billion (CDN) in
       2000, a 20% annual growth rate from $0.7
       billion in 1997.
     • In 2001 the estimated organic market was
       $1.4 billion (CDN)



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             The Organic Sector in Canada
                     Retail Sales


     • Food in Canada Magazine (May 1999)
       states that sales of organic products in
       British Columbia reached $100 million in
       1998.
     • BC reported $250 million retail sales in
       2000
     • Manitoba has organic retail sales of $10-
       20 million and producer cash receipts of
       $2-3 million/year.

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             The Organic Sector in Canada
                    Quebec Market


     • Centre d‟agriculture biologique du
       Quebec research on the state of the
       organic market in Quebec showed
       that 38 per cent of the products grown
       in that province were sold directly to
       consumers. Organic food sales by
       wholesalers and brokers were $35
       million, while those in specialty stores
       totaled $80 million.
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             The Organic Sector in Canada
                Expected Growth Rates


     • Canadian organic retail sales growth is
       expected to rise $0.7 billion in 1997 to
       $3.1 billion in 2005, which equals an
       average growth of 20 per cent annually.
       The industry hopes the market share will
       increase from 1 per cent to 10 per cent of
       the retail market by 2010.


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              The Organic Sector in Canada
                        Exports


     • Agriculture and Agri-Food Canada (AAFC)
       states that the US, where a large portion of the
       organic products are processed and resold to
       other markets, is the largest market for many
       Canadian organic foods, followed by the
       European Union and Japan.
     • Canadian organic exports are predominately
       bulk grain and oilseed products from
       Saskatchewan, Ontario, Quebec;Apples are
       exported from BC

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                  The Organic Sector in Canada
             Value of Imported Foods vs. Domestic Products


     • Organic distributors state 80-85% of retail sales
       are imported product. Processed and packaged
       goods dominate US organic exports to Canada
       at 80 per cent with fresh fruit and vegetables at
       20%.
     • In 2003 Thrifty‟s supermarket chain in Victoria
       replaced imported salad greens from California
       with a more expensive locally produced organic
       salad mix. Sales continue to grow.

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             The Organic Sector in Canada
              Federal Government Support


     • Accumulative federal funding on organics
       $2.8 mill for developing certification
       infrastructure, market access and
       production extension.
     • Includes $854700 to Organic Agriculture
       Centre of Canada and $1.3 million for
       regional projects


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             The Organic Sector Internationally



     • We must work internationally in
       supporting organic production and
       consumption as a needed tool for
       true sustainability.




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             The Organic Sector in Canada


     • “A sustainable food system is
       economically viable to all participants, is
       socially supportive, ecologically sound &
       meets the needs of future generations.”
     • Membership Brochure,
       Canadian Organic Growers



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                     Canada Organic Statistics References




     •   Alberta Organic Farming Operations 2000; Alberta Agriculture, Food and
         Rural Development, Statistics and Data Development Unit. 2001,
     •   Canadian Organic Growers
     •   A. Macey, 1997, Canada Organic Statistics Report 1992-1996
     •   A. Macey, Canadian organic statistics update 1997, Eco-Farm & Garden,
         Fall 1998
     •   A. Macey, Canadian organic statistics update 1998, Eco-Farm & Garden,
         Winter 2000
     •   A. Macey, 2000, 1999 Organic Statistics, Eco-Farm & Garden, Winter 2001
     •   A. Macey, Statistics 2000: organic farming in Canada, Eco-Farm & Garden,
         Winter 2002
     •   A. Macey, Canadian Organic Statistics 2001, Eco-Farm & Garden, Winter
         2003



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                     Canada Organic Statistics References




     •   Cunningham, Rosalie; Canadian Natural and Organic Retail Markets,
         Alberta Agriculture, Food and Rural Development, Economics and
         Competitiveness, July 2002
     •   Frick, Brenda; Production Statistics for Organic Agriculture in
         Saskatchewan for 2000, Report for Saskatchewan Agriculture and Food &
         Saskatchewan Organic Directorate. February 2001
     •   Parsons, Bill, “Organic Growing Practices establish clear market position”,
         Vista on the Agri-food industry and the Farm Community, Statistics
         Canada, September 2000
     •   Statistics Canada; Census of Agriculture 2001
     •   Wuerch, D., Ubina, H., Diachun, K., Manitoba Organic Report 2002,
         AAFC, MISB Manitoba Regional Office




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              The Organic Sector in Canada




             Thank you for your attention and
                interest in more sustainable
             production in the Organic Sector
             of Canadian agriculture & trade !
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