Sunday, April 11, 2010

The Organic Farming Scheme 2010:who will join, and why will they do it?

Perhaps the most stark thing about the article below is the fact that 2/3 of certified organic sheep meat gets sold as conventional. What a waste!

There is a solution to this, for at least some farmers willing to grasp the nettle: direct selling 100% grass fed extra mature organic lamb (extra mature means about 15-18 months) .

My other blog, here, is all about this (as well as other hill farmed organic products)

See, I don't just write about food, I try to change it too!

For now, here's the state of play for the new crop of organic potentials, 2010........

The May 15th deadline for signing up to the Organic Farming Scheme is fast approaching and the last of the compulsory Teagasc Organic training courses are finishing up.

With these in mind, I spoke to Teagasc organic advisor Pat Barry about this years crop of organic hopefuls.

�I don't think all of the 400 or so who have done the course will sign up for the Organic Farming Scheme this year�, he tell me. �Some will take their time - its a big decision to convert a holding, and those who have done the course this year now see what's involved. They can make a more informed decision for next year, which is probably better for the longer term sustainability of the organic sector�.

In organic tillage, while there has been some interest due to the green manure payment, poor returns in conventional, and the availability of conventional slurry to organic farmers, nonetheless take up of stockless tillage remains weak.

In the main �farmers are bringing balance into their own organic units: tillage is being incorporated into livestock farms�.

Numbers converting are strong for sheep and beef. The diet of organic cattle has to be 60% grass, so the variable price of feeds is not as much an issue fas it is for conventional beef farmers.

That said, �the price of organic concentrates is back significantly, but then again, so is the price of beef� according to Pat Barry.

As has been the case, finding markets for organic lamb remains difficult: �2/3 of raw lamb in organic goes into the conventional sector: For every 20,000 ewes only 8,000 lambs are sold as organic. That's a conservative estimate�.

Out of season lamb production is one way to try to access an organic price premium, according to Barry.

One of the most significant changes in organic horticulture and tillage will be the effect of an Grainan, the operation run by Donegal Creameries.

They will be providing �80 acres of carrots and spuds, and a couple of hundred of wheat.�

320 acres of this massive holding, called an Grainan, went fully organic on 1st March. Currently, it produces arable crops, beef, beetroot, cabbage, carrots, potatoes and milk.

In diary, he points out that five are coming on stream this year, and another 3 to 4 next year. This represents a significant increase: �there will be a 20% increase in cow numbers: it will be important for the sector and the market to be fully in tune�.

However, Donegal Creameries again will exert major influence on dairy dynamics.

According to Ian Ireland, Managing Director, Donegal Creameries, they recently invested a significant amount of money in the building of an organic yogurt production plant at their Killygordon site where the company has been processing milk for over a century.

This has allowed the company to supply ALDI's 74 stores nationwide with an organic yogurt range.

The new Liskeel organic yogurt range in ALDI is made by Donegal Creameries. The 500ml pots retail at E1.39 � considerably cheaper than many competitors.

As LIDL and ALDI try to tempt different shoppers in with more diverse products, consumers are shopping around more than just a few short years ago.

Recent research in Ireland suggests that the number of retail outlets people visit regularly has gone from 2.2 to 2.8.

The race to the bottom in price terms is, in many ways, the conventionalisation of the organic sector.

Barry, like many others, suggests �cutting out the middle man� i.e. direct selling, primarily at farmers' markets, as a way to add to, or at least maintain, a price premium.

Along with this, many producers are finding that organic alone is no longer enough. Adding extra meanings - such as health, taste, locale, breed/variety, environment, production methods - to your product, along with organic, is a way forward.

Soon, we will feature here a beef farmer in conversion to organic who has secured an interesting route to market with an interesting breed of animal.

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