Unlocking the organic opportunity for Canada

Sales data based off 2024 data using CAGR method
*Limited to available Harmonized Sales (HS) code data available. 2024 HS Code Statistics Canada Data.

At a time when Canadian governments are implementing measures to strengthen the nation’s economy in an uncertain world, stakeholders in the organic agricultural sector are calling for concerted action to unlock the full potential of organic agriculture.

The Canadian Organic Alliance (COA), which brings together the Canada Organic Trade Association (COTA), the Canadian Organic Growers and the Organic Federation of Canada, is making the case that driving growth in the organic sector will yield significant economic benefits.

“Beyond the clear economic gains, bolstering organic farming and food will support government targets for climate change mitigation, fossil fuel reduction, biodiversity enhancements and Canadian food security,” says Tia Loftsgard, executive director of COTA.    

“With rising Canadian consumer demand for organic food products and a growing global market, now is the time to give the organic sector the best possible tools to thrive.”   

Through widespread consultations among representatives of Canada’s organic community, the national associations have developed a Canadian Organic Action Plan through which industry and governments can collaborate to leverage the full potential of organic farming and food production. The plan proposes a type of public-private partnership, involving commitments by both industry and governments to achieve both short-term and long-term goals.

Risk of being left behind

There is a growing urgency for action as Canada is falling behind other countries that are proactively bolstering the strengths of their organic industries.

“Canada is not keeping pace with the increased investments and innovations coming from its competitors,” Ms. Loftsgard says. She points out that the United States (U.S.) and European Union (EU) have identified organic’s potential and have deployed dedicated organic strategies. As a result, the U.S. now invests eight times more per acre into its organic sector than Canada, while the EU invests 200 times more.

“The industry believes we can’t let this opportunity pass us by, because if we do, producers from other countries are going to leave us behind in international markets while also taking a greater share of the Canadian market.”

Untapped potential in the Canadian market

Canadian demand for organic food is on the rise, Ms. Loftsgard says. “We know that two-thirds of Canadians are purchasing organic products weekly. And as the “buy Canadian” movement has accelerated, they are motivated to purchase Canadian organic goods whenever possible.”

However, Canadian organic farmers are increasingly challenged to fulfill those consumer needs, and Canadian organic manufacturers are finding it more difficult to source Canadian ingredients, which threatens their ability to meet the Canadian Organic Standards and be certified to use the Canada Organic logo.

According to the industry, domestic organic production has stagnated, acreage is down and imports are rising as companies struggle to find Canadian organic products. In 2023, Canada experienced its first decline in certified organic producers since the Canada Organic Regime (COR) was established in 2009.

Policy tools and investments to boost domestic organic production

Governments do provide various types of support for the organic sector, Ms. Loftsgard says, but Canada lacks an integrated policy framework to support development of organic farming and access to markets.

“Canada’s approach to organic has focused primarily on enforcement, rather than sector development,” Ms. Loftsgard says. “We are seeing other countries prioritize supports for producers and measures to build new market opportunities. That’s the approach that our industry advocates in the Organic Action Plan.”

The plan calls for new policy tools and a federal-provincial funding system to support organic farming across the country. One key priority is to expand government programs to help farmers transition to organic farming and ongoing supports to help them manage risk and succeed after making the transition.   

“We don’t have comprehensive crop insurance and other supports available to organic farmers at the same level as for conventional farmers,” she explains. “One province that is achieving success is Quebec, which subsidizes farmers for organic conversion and provides training infrastructure support to smooth the process. We believe this could be a model for the rest of Canada.”

Building on a strong foundation

The organic industry makes the case that Canada has a strong foundation to build upon to unleash the sector’s full growth potential. The country has already invested in the architecture – national standards, accreditation, certification and international recognition – and it has the favourable climate, fertile soils and strong quality assurance to be a global leader in producing high-quality organic crops.

At a time when Canadian leaders are working to accelerate economic growth and give Canada a competitive edge internationally, organic agriculture is well positioned to contribute to this important national endeavour, says Ms. Loftsgard.

“Industry analysis shows that for every dollar the government spends to support exports of Canadian organic products, we’re generating 40 Canadian dollars in sales, clearly a good return on their investment,” she says.

“It’s an unprecedented time, with new challenges and new opportunities to innovate. Canadian consumers are ready to support a thriving organic sector, and the industry is enthusiastic about working with governments to take organic to the next level.

“It is the right moment to unleash the full economic, environmental and trade benefits that organic agriculture can offer.”

To view this report on The Globe's website, visit globeandmail.com

To view the full report as it appeared in The Globe's print edition Organic Month  

For more information, visit canada-organic.ca.