Organic news 14th April 2011

NEWS ****NEWS****NEWS****

Organic sales in Ireland return to stability:

"According to the latest Kantar data (52 wk ended 20th Feb 2011) the Irish organic market is valued at �97.8m. This represents a marginal decline on the previous year but signals a significant slowdown in the rate of decline from 14% a year earlier." according to Mary Morrissey of Bord Bia, who have access to Kantar's research (slightly wacky super slick site btw!)

Similar news came from the UK and the US recently, whereas the mainland of the EU never saw decline anyway.....more on this in the Examiner soon....

Organic Farming and Climate Change mitigation:

Two talks coming up soon:@ Dublin and Cloughjordan by Gundula Azeez, formerly of the British National Farmers Union, the Soil Association the EU Commission. Part of the FEASTA lecture series on Low External Input Agriculture - the only road to a sustainable food supply ,these talks will encompass farming, climate change, organic and biochar. Full weekend of events listed here

Shale Fail

Shale gas is widely touted as a "clean" fossil fuel that can serve as a bridge to renewable energy. But according to a new study by Cornell University researchers, it actually has a larger carbon footprint than coal, oil and conventional natural gas, at least over a 20-year period. That's largely because shale-gas wells leak large amounts of methane - a component of natural gas, but also a potent greenhouse gas, even more effective at trapping heat than carbon dioxide. When leaked methane is calculated with the greenhouse gases emitted by burning shale gas, the fuel loses much of its green luster, the study's authors argue.

"The large greenhouse gas footprint of shale gas undercuts the logic of its use as a bridging fuel over coming decades, if the goal is to reduce global warming, " lead author Robert Howarth tells the AFP. "The full footprint should be used in planning for alternative energy futures that adequately consider global climate change." Shale drilling already faces scrutiny for its use of hydraulic fracturing, or "fracking," in which pressurized water, sand and chemicals are pumped deep underground to loosen rock and release more gas. While the EPA investigates claims that fracking poisons groundwater, however, Howarth says he's found an even bigger flaw with shale drilling - one that belies the very argument used to justify the current U.S. shale-gas boom. Plus, he points out that his team's calculations for methane leakage are based on "best practices" estimates, but that actual leakage rates could be much higher. "No one knows for sure to what extent industry uses best practices; and unfortunately, at least in the U.S., industry does not want government or the public to know," he says. "The [EPA] has proposed rules that would require industry to report methane emissions, but several companies have sued the EPA to try to prevent such reporting."

According to the U.S. Energy Department, the country's total natural gas output will grow by 20 percent in the next 25 years, at which point nearly half of all U.S. gas production will come from shale - up from just 16 percent in 2009. Shale gas is increasingly popular because vast deposits exist underneath the U.S., and because new drilling techniques like fracking make it more economical to extract. It has looked especially good to many ever since Japan's nuclear crisis began last month, too. But as Howarth argues, it's unwise to look at shale gas through green-colored glasses. "We should not proceed to view shale gas as a 'transitional fuel' to be used over the next few decades to replace other fossil fuels," he says, "but rather work harder to move toward truly green renewable fuels as quickly as possible, such as wind and solar."

(Sources: Mother Nature News Network, The Hill, BBC News, Agence France-Presse, e! Science News)

Supervalu & Organic Growers: partnering up

Is this, finally, a little bit of the farmers' market spirit right in the centre of the supermarket? Is this some sort of a solution to the imponderable of supermarket dominance and a lack of significantly penetrating alternatives, especially in the UK or Ireland (well, really the whole English speaking world, where supermarkets have a hegemony when compared to mainland Europe)

And does SuperValu's franchise structure actively allow for such a thing to develop?

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Organic vegetable sales up 150% for the retailer and twice the area planted for the grower. That, in straightforward terms, is what has happened in Glanmire thanks to the new arrangement SuperValu have with organic growers.

Walking into the Glanmire Supervalu, you cannot fail to be impressed by what is Ireland's largest Supervalu store. What's more impressive, from an organic perspective, is the dedicated island one organic vegetable grower, Colum O Regan, has all to himself.

Supervalu's fresh fruit and veg people have a direct, one-to-one relationship with organic growers all over Ireland, and it is, if you will, a growing phenomenon.

(Pic: Una Ni Broin of Beechlawn house, one of the Enterprises that initiated the SuperValu organic growers initiative)

Rather than centralised distribution and anonymous placement within the rows and rows of various vegetables, Colum O Regan's veg has its own display area out on its own, with dedicated blackboards, Specially commissioned photographs, and even regular appearances by the man himself at stacking time.

These islands act as a little organic oasis amid rows and rows of self-same produce.

I asked Emma Rochford of Musgraves about this recent departure for their SuperValu stores. �To allow us to differentiate from other multiplies in the market, we have decided to work with local organic growers, bringing them into our stores and giving their product treatment in a different way.�

�We treat the local organic growers differently in that we guarantee them a particular space in the store in which to merchandise their product. This area or section will be dedicated to them. We then support them by providing the growers with complementary bespoke point of sale materials � blackboards on which to write their name and key offer, and personalised communications � so we have their image on the posters or shelf talkers, allowing locals to really identify the growers�

She continues �SuperValu recruits growers to come on board and helps to get them retail ready. The arrangements however are made solely between the individual stores and growers in question. We issue a number of guidelines or recommendations but between them the retailers and growers come to their own agreements on price, delivery dates, range of products supplied and so on. There is no fee or charge to the growers for supplying the stores.�

�They do really know what they are doing� according to Colum. �When they give you advice on how to sell more of this or that, through better use of your display area, it works�. He cites highlighting a round figure value offer on the blackboard as an example: �when you put the beetroot at a 2E deal, and put this on the blackboard, the customer really goes for it.�

It all began with Padraig Fahy and Una Ni Bhroin in east Galway in early 2009, who supplied 6 SuperValu stores in the region. Receiving various supports (e.g. grants for packaging and chilled delivery) and training, the couple initially road tested just two varieties. Now, they stock 15 seasonal lines.

According to Emma �Last year in 2010 we worked with 8 growers who supplied 20 of our stores. Our aim would be to have growers supplying 50 stores this summer. We currently expect to work with 14 growers over this summer season but are actively seeking more growers. Our aim would be to continue to grow the project year on year and to be in a position to have this initiative in 100 stores by 2013.�

According to Colum O 'Regan, the growers who supply Supervalu have started to �get together to swap knowledge informally�: �its very precise, even down to the pure agronomy of the whole thing. How do you supply a tonne of carrots every week? Two tonnes, ten tonnes, what ever it is. And at a good quality.�

Nevertheless, the numbers Supervalu are aiming for are ambitious. Already they are talking to growers who are in conversion about future opportunities.

�There are Supervalus in many towns in Ireland, and there might not be the grower there, yet, to supply to the required volume�. �But� he adds, �this sort of set-up might give them the confidence to start�.

Farm Diversification - piecemeal or significant?

Once seen as a diversion from 'real farming', increasingly, farmers are opting for one or more of the many diversification opportunities out there.

There are powerful drivers for this.

Off-farm employment has been a vital part of the rural economy in recent years. It accounted for 81% of household income on part-time farms and 38% on full-time farms according to the National Farm Survey 2009.

(pic: an apiary)

However, there has been a decline in the availability of off farm jobs since 2007 especially.

In 2009 �35% of farms, the main farm operator had off-farm jobs while on 51% of farms the farmer and/or the spouse had off-farm employment�. That's according to Teagasc economic geographer David Meredith, who also stated at a recent Jobs' conference:

�The level of off-farm employment dropped substantially from the peak in 2007 where on 41% of farms the main farm operator had off-farm employment, and the proportion of farms where the farmer and/or spouse had off-farm employment had reached 58%.�

While employment potential is still relatively high in some professional sectors, such as Science and ICT (Internet and Communications Technology), construction-related work and other manual and semi-skilled sectors have been are reducing their workforces.

Fast Forward to 2011, and the agricultural colleges are full of young potential farmers - a group to whom diversification appeals. With time on their side, better ICT skills, and sometimes a 3rd level education and some travel behind them, young farmers can be full of ideas for opportunities to generate novel sources of income.

Another significant driver of diversification is the new, central place agri-food takes up in plans for National Recovery. Harvest 2020 roadmaps growth in the agri-food sector from E8 billion to E12 billion by 2020, and diversified farm enterprises will be part of this drive.

According to preliminary findings from Teagasc's economic geographer David Meredith, 45% of farmers are interested in diversification. That his research was drawn from mainly larger dairy and drystock enterprises located in the Meath, Kildare and Wicklow area (with the remainder from Mayo, Roscommon and Sligo) makes this all the more significant: large, east coast farmers have not always been this interested in diversification.

He also points out that the rates of diversification in Ireland, though rising, are still very low. Less than 5%, or 5000 Irish farmers diversify, whereas in the UK, the figure is 51%.

However, in the UK, leasing space to businesses is a primary farm diversification, a factor which stems from the UK's dense population, and the proximity of most farmland to urban and industrial centres. So it is unlikely that anything like this level of diversification could happen in Ireland.

That said, farmers have certain advantages when it comes to diversification.

According to David Meredith, these include the fact that farmers, in general, have good business acumen; think long-term and strategically; are multi-skilled (from animal husbandry to administration); have access to personal supports -(i.e. family members' labour and skills); have access to community supports; understand regulatory frameworks; have valuable assets (for collateral, for storage, as workshop space) and low borrowings.

He cites the following as challenges: Raising capital to develop new businesses; raising sufficient capital to meet matched funding requirements; overcoming the risk attached to a new venture, particularly, the impact it could have on the continued viability of the farm enterprise; lack of information on available financial and other supports; uncertainty concerning impact of regulations; a lack of time to develop new enterprises.

There are other negatives too: its not just access to information on funding � the funding itself is under threat. The current LEADER embargo on on-farm food production, processing or preparation came as a bolt out of the blue for many applicants, and has seriously delayed many diversification plans. There is no guarantee it will be resolved in a way conducive to current applications.

Some of the first cuts of the recent recession were in agri-food, to REPS (Rural Environment Protection Scheme) and FEPS (Forest Environment Protection Scheme). Considering the length of the commitment and long term planning involved in forestry, the 8% FEPS premium cut in 2009 was especially severe. The scheme is also difficult to join now.

Likewise, the supports available under the AEOS scheme are nowhere near the REPS supports levels.

On the individual level, ICT skills are increasingly important, and this is not an area all farmers are comfortable with, though upskilling is available, and family members can be drawn on.

It is also the case that with cuts pending in the next sequence of budgets, and with the overall effect of the recession, there are demand problems too - potential customers have less money. Add to this what are considered especially strict interpretations of EU rules and regulations in Ireland when compared to elsewhere in the EU, for one of the key areas of diversification � artisan food processing (cheese, ice cream etc).

Farmers also have options other than diversification coming downstream, in particular upscaling and intensifying, with the end of dairy quota in 2015.

There are positives too. Certain areas in diversification are genuine growth areas. Sales of organic food on the mainland of the EU, where the recession has not been as difficult, are stable and rising. Indeed the organic market in Austria, Denmark, France, Germany and Switzerland continued to grow even in 2009-2010. All have increased growth rates for 2011.

In organics and elsewhere, it is also the case that forming a group - producer group, co-op or limited company - can pool resources and allow for economies of scale to develop, as the success the Leitrim Organic Co-op has in finding premiums for its members suggests.

Thinking more as a business person than just as a farmer can be beneficial too: Utilizing ICT is affordable in set-up terms. Selling on ebay or other similar sites has become more and more popular, whilst web-based sales are a real growth area in general.

In the UK, on-line sales in January 2011 were at the highest level for any January. There, according to the IMRG Capgemini e-Retail Sales Index, online retailers accrued �5.1bn sales for January this year, a massive 21% increase on last January.

According to Paul McCarthy of Teagasc, many areas in the green economy offer up significant potential. He lists �renewables, biomass, crops or services on the green side, wood chip, anaerobic digestion, wind, retrofitting houses even, miscanthus or willow�. McCarthy points out that there are also options to scale these up to a national level � as an example, a wood chip or a retro fit/insulation company can move from being a single farm nixer into a regional and then nationwide industry.

And while he is hopeful that supports in this area will grow, Ireland has stiff competition from elsewhere in terms or supports and returns. �For energy, to take one example, the odds are stacked against farmers here, compared to Northern Ireland. They have better paybacks from the National Grid, and their incentives are lined up� says McCarthy.

Innovation and planning are vital. Before you start, you may want to consider availing of background household budgeting supports.

Teagasc's Options programme is one such support. David Meredith: �Options works with farm households to assess their current status and evaluates what steps might be undertaken to sustain the farm business into the future. The programme takes a realistic look at the household's financial situation by first establishing the level of income generated from farm activities and off-farm employment�.

He continues: �the costs of running the farm enterprise and household living expenses are then assessed with regard to, firstly, the income situation and, secondly, future income needs which might revolve around making allowance for pension savings or sending children to college�.

Teagasc have developed a �Household Budget Calculator� which is available through their website. This calculator lets farm households track where the money goes every month, which is the first step in assessing their current status.

V. D. Kaviraj comes to Ireland

A very interesting character, V. D. Kaviraj, is visiting Ireland to give a weekend workshop on homoeopathy & the garden.

Its on 16th & 17th April in The Community Gardens in Scariff Co. Clare. If you have an interest in the area, its not to be missed.

(Do google this guys life story - it doesn't get more epic really - we're talking a healer on the planetary scale fighting the good fight, often in very unusual circumstances!)

Forming Co-ops and groups for organic farmers

More than other types of farming, organic farming can be isolating. This is because organic farmers are spread out, diffusely, around Ireland.

Whereas a conventional beef, sheep or dairy farmer may have neighbours with similar enterprises, organic farmers can be some distance from other organic farmers.

In more mature organic sectors abroad, this effect diminishes as organic farms cluster in regions over time (See for e.g. Dr. Matt Reed's work on spatial dynamics and organic farming in Devon)

Of course, organic and conventional farmers can and do interact with each other in a variety of ways � however there are undoubted benefits to organic farmers working together too.

While local organic producer groups would be difficult to sustain numerically, regional organic producer groups have perhaps more potential.

One such group is meeting in Ballyvourney, Cork, on the 27th of this month, at 3PM. Tom Murray of Earth Angel Organics has been central to the formation of the group, which has met twice already.

Earth Angel Organics run a small but very diverse holding near Watercress Hill in the Glanmire part of Cork. Market gardening and direct selling a range of organic vegetables is Tom and Carol Murray's core business, but they also produces an array of other foods � eggs, chicken, pork, lamb, as well as jams, pickles, sauces more.

(For a detailed feature on Earth Angel Organics, see the upcoming edition of Organic Matters Magazine)

I spoke to Tom about the formation of the group.

�Really, people were crying out for working together� he tells me. �We are getting organic farmers and growers from across Munster, from Cork, Kerry and Limerick�.

He continues �our first meeting in November had 20 people, the next in December in Mills Inn had more, and we're hoping for more again for our February meeting�.

There are significant benefits to forming a group: �There's shared purchasing power for a start. For example, a lorryload of feed from the UK can work out far cheaper than buying it as individuals in Ireland�.

The monopolistic situation in Ireland with regard to organic feed makes price competition especially difficult to generate.

�A 25 kg bag of organic feed can cost E15.50, and some have been paying to E17 for the same bag. Buying a tonne from the UK means that it works out at more like E12.50 for 25 kg�.

There are other positive feed effects too: �4 tonnes of oats were traded at the first meeting� he tells me �I knew we were onto something good once I saw that�.

There are other ways to save time and money too, when operating as a group: �You could spend an age looking up something on line, when someone else has already looked into it.�

Their upcoming meeting will feature John Brennan of the Leitrim Organic Farmers' Co-op and Sean McGloin of NOTS- the National Organic Training Skillsnet. The Leitrim Co-op are a good example of how and why farmers should try to work together where it suits them.

According to Sean McGloin, organic farmers in North West can achieve better prices that those in the South West.

This is in part because, along with IOFGA, the Leitrim Co-op run numerous organic cattle marts in Drumshanbo. They also work on some of the ancillary elements to the marts, such as transport to and from the location.

In general, with the work of the co-op, through beef contracts, advice on finishing animals, farmer to farmer linkages, farm visits, breed advice and strong sales promotion, organic farmers in the north west are more likely to achieve a price premium at the various stages.

This also means that the organics retains its cattle and sheep � a fact which maintains overall organic sector buoyancy.

The Ballyvourney Organic Producer's Group: Contact Tom Murray on 087 6237859

Leitrim coop are here