Fear for farming’s organic future

Most organic farmers say their profits are low or borderline – raising serious concern about the future of the sector.

Some 63% of organic producers make little money from farming, reveals a survey by the certification body Organic Farmers and Growers (OF&G).

A further 12 per cent said their business was no longer viable at current prices. Milk, where production has exceeded demand for four years, is particularly hard hit.

The report warns: “In view of upbeat editorial in the food trade press about rising retail sales of organic produce, it is apparent that rising demand is not necessarily stimulating higher prices for farmers.”

The survey was sent to 4000 organic farmers. Of those, a statistically significant 1144 replied (29% response rate) with a total farmed area of 269,000 hectares.

Almost 90 per cent of respondents said they expected to be farming organically in one year‘s time.

But almost one third said they didn’t know whether that would be the case in five years – a statistic described as OF&G as “quite alarming”.

The report adds: “It is also believed that farmers reaching the end of their five-year conversion period do not relish a further five years of commitment to the sector.”

It also questions how future investment can be funded.

“In the absence of sufficient profitability, farm businesses will not generate funds that can be invested, not can they justify borrowing.

“Yet investment is necessary at each stage of the supply chain in order to drive new product development.”

The report calls for an umbrella organic marketing and advisory body to give focus and leadership to organic producers and processors.

It also calls for the introduction of a national symbol for organic products, to replace competing logos and act as a mark of quality and integrity.

“If growth is to continue, doubt and confusion must be overcome and producers must be ready to forge ahead,” it concludes.