Brief introduction to Organic farming in North America

Brief Introduction to

Organic Farming in North America

OCIA OCIA EUROPE EUROPE

Regional OfficeRegional OfficeShanghaiShanghai, 8 , 8 AprilApril 20062006

What is organic agriculture?What is organic agriculture?

"Organic agriculture is an ecological "Organic agriculture is an ecological production management system that production management system that promotes and enhances biodiversity, promotes and enhances biodiversity, biological cycles and soil biological biological cycles and soil biological activity. It is based on minimal use of activity. It is based on minimal use of offoff--farm inputs and on management farm inputs and on management practices that restore, maintain and practices that restore, maintain and enhance ecological harmony.enhance ecological harmony.

Source: NOSB - National Organic Standards Board, 1995

Organic agriculture standards

Organic food handlers, processors Organic food handlers, processors and retailers adhere to standards and retailers adhere to standards that maintain the integrity of that maintain the integrity of organic agricultural products. organic agricultural products. The primary goal of organic The primary goal of organic agriculture is to optimize the health agriculture is to optimize the health and productivity of interdependent and productivity of interdependent communities of soil life, plants, communities of soil life, plants, animals and people."animals and people."

Source: NOSB - National Organic Standards Board, 1995

Origins of organic agriculture

Sir Sir AlbertAlbert Howard…Howard…...1900 ...1900

RudolfRudolf SteinerSteiner

EhrenfriedEhrenfried PfeifferPfeiffer

GeorgeGeorge Ohsawa……Ohsawa…….1929.1929

ShagenShagen IshizukaIshizuka

JeromeJerome I.Rodale……I.Rodale…….1946.1946

RachelRachel Carson………1962Carson………1962

PrecursorsPrecursors

Organic hectares worldwide

Organic

Percentage of area under organic management worldwide

Source: FiBL- Survey 2005/2006

Area under organic management by country

889,048 Hectares

Number of acres used to raise certified organic products

Number of farms raising organically produced products

Certified organic acreage and operations

Certified organic facilities

/ 2004

Organic Certification in the US

•• ORGANIC GROWING AND PROCESSINGORGANIC GROWING AND PROCESSINGmethods for products sold in the United States are methods for products sold in the United States are regulated by national organic standards, fully regulated by national organic standards, fully implemented since October 2002.implemented since October 2002.

•• In Canada, national standards currently In Canada, national standards currently are voluntary, although work is under are voluntary, although work is under way for a mandatory regulation. way for a mandatory regulation.

•• ThirdThird--party certification of organic farms party certification of organic farms guarantees that any product that is labeled as guarantees that any product that is labeled as "organic" in the United States meets or exceeds "organic" in the United States meets or exceeds the basic criteria.the basic criteria.

Source: Organic Trade Association

Organic Certification in the USBASIC CRITERIA:

•• No prohibited substances have been used on the No prohibited substances have been used on the land for at least three years. land for at least three years.

•• Detailed records have been kept of the methods Detailed records have been kept of the methods and materials used in production.and materials used in production.

•• All methods and materials have been inspected All methods and materials have been inspected annually by a thirdannually by a third--party certifier accredited by the party certifier accredited by the USDA USDA -- U.S. Department of Agriculture.U.S. Department of Agriculture.

•• All farmers and processors have maintained All farmers and processors have maintained written Organic Plans detailing their management written Organic Plans detailing their management practices.practices.

Basic steps of organic certification(farm)

Final review Final review and decisionand decision

Inspection

Research & Prepare

• Annual• Must allow access to the inspector to all organic and non-organic

portions of the operation• Documents and operation will be reviewed• Can be a learning tool for the farmer

Application

• Determine where markets will be• Compare organic certification agencies (service and market access)• Present 3 years of field histories • Fulfill questionnaires• Show accurate field maps • Appropriate fees

•• Field (s) must be free of prohibited inputs for 36 months• Seeds must be organic or at the very least non-GMO

• Check for any problem areas• Prepares applicants for inspections• Saves operations time and money on

their inspectionsPre-Inspection Review

•• Inspection report & other documents are sent for review Inspection report & other documents are sent for review •• Decision is made Decision is made •• Certificate and recommendations or requirements issuedCertificate and recommendations or requirements issued•• Applicants are certified until they surrender or are suspendedApplicants are certified until they surrender or are suspended•• Must reapply annuallyMust reapply annually

NOP - National Organic Program

A retrospective of the NOP Rule

1984 1985 1986

The Organic The Organic Foods Foods Production Production Association of Association of North America North America (OFPANA) was (OFPANA) was formed.formed.

OFPANA guidelines start OFPANA guidelines start and the organization's and the organization's certification mark is certification mark is registered with the U.S. registered with the U.S. Federal Commission of Federal Commission of Patents and Trademarks.Patents and Trademarks.

OFPANA membership OFPANA membership approves the first approves the first publication of publication of Guidelines for the Guidelines for the Organic Food Industry Organic Food Industry and the OFPANA and the OFPANA certification mark. Also certification mark. Also becomes an advisor to becomes an advisor to Americans for Safe Americans for Safe Food, a project of the Food, a project of the Center for Science in Center for Science in the Public Interest to the Public Interest to develop the concept of develop the concept of a national organic law.a national organic law.

TIME LINE


OFPANAOFPANAOrganic Foods Production Organic Foods Production

Association of North AmericaAssociation of North America


1987 1988 1989

An Ethical Review An Ethical Review Panel is Panel is established to act established to act as an industry as an industry arbitrator in arbitrator in business disputes.business disputes.

OFPANA sets up OFPANA sets up committees and committees and task forces to task forces to cover packaging cover packaging labeling and labeling and agricultural inputs.agricultural inputs.

The “Organic Food The “Organic Food Industry Information Industry Information Service” is created.Service” is created.

OFPANA becomes a member OFPANA becomes a member of the International Federation of the International Federation of Organic Agriculture of Organic Agriculture Movements (IFOAM).Movements (IFOAM).

OFPANA OFPANA AccreditattionAccreditattion of of Certification Programs position Certification Programs position paper is accepted as the paper is accepted as the foundation for the OFPANA foundation for the OFPANA certification mark program. certification mark program. OFPANA convenes a Task OFPANA convenes a Task Force on Legislation Issues.Force on Legislation Issues.


TIME LINE


1990 1991 1992

OFPANA new mission OFPANA new mission statement making the statement making the organization a trade organization a trade association is ratified.association is ratified.

Congress passes the Congress passes the Organic Foods Production Organic Foods Production ACT (OFPA) as part of the ACT (OFPA) as part of the 1990 Farm Bill and forms a 1990 Farm Bill and forms a task force to recommend task force to recommend candidates for the National candidates for the National Organic Standards Board Organic Standards Board (NOSB).(NOSB).

OFPANA OFPANA Legislative Legislative Council begins Council begins to lobby in to lobby in Washington Washington D.C. for D.C. for appropiationsappropiationsto implement to implement the Organic the Organic Foods Foods Production ActProduction Act.

OFPANA presents the OFPANA presents the NOSB with drafts of NOSB with drafts of industry standards on crop industry standards on crop production, material lists, production, material lists, livestock standards and livestock standards and accredittationaccredittation concepts.concepts.

Other draft guidelines are Other draft guidelines are also presented to cover also presented to cover organic manufacturing in all organic manufacturing in all food categories.food categories.


TIME LINE


1994 1995 1997

OFPANA retains OFPANA retains consultant to represent consultant to represent the association in the association in Washington D.C. on Washington D.C. on legislative and regulatory legislative and regulatory issues.issues.

OFPANA Board votes to OFPANA Board votes to change the change the organization's name to organization's name to the Organic Trade the Organic Trade Association (OTA).Association (OTA).

NOSB completes its NOSB completes its recommendations recommendations and program details and program details required for required for implementing the implementing the Organic Foods Organic Foods Production Act Production Act (OFPA) of 1990, (OFPA) of 1990, and approves a and approves a definition of organic.definition of organic.

US Department of US Department of Agriculture (USDA) Agriculture (USDA) publishes its long publishes its long awaited proposed awaited proposed national organic national organic program rule, but the program rule, but the proposed regulation proposed regulation includes provisions for includes provisions for genetically engineered genetically engineered organisms, irradiation organisms, irradiation and bio solids.and bio solids.

The industry is The industry is outraged.outraged.Source: Organic Trade Association

TIME LINE


1998 1999 2000

OTA joins forces with OTA joins forces with partners to create the partners to create the “Keep Organic “Keep Organic OrganicOrganic” ” campaign that takes campaign that takes USDA to task on its USDA to task on its proposed rule. The proposed rule. The campaign generates the campaign generates the largest number of largest number of consumer comments consumer comments USDA has ever received USDA has ever received on a proposed rule.on a proposed rule.

OTA adopts the OTA adopts the American Organic American Organic Standards as Standards as guidelines for the guidelines for the organic industry.organic industry.

USDA finally USDA finally publishes the National publishes the National Organic Program rule Organic Program rule on December 21.on December 21.


TIME LINE

NOP and NOSB


•• NOP has the responsibility of implementing the NOP has the responsibility of implementing the organic standards.organic standards.

•• NOP’sNOP’s role is to accredit state agencies and private role is to accredit state agencies and private organizations that will certify organic producers and organizations that will certify organic producers and handlers, and to oversee enforcement of the standards.handlers, and to oversee enforcement of the standards.

•• NOSB based its recommendations on industry consensus NOSB based its recommendations on industry consensus during every step of its decisionduring every step of its decision--making process. making process.

•• NOSB consists of four farmers, two handlers/processors, NOSB consists of four farmers, two handlers/processors, one retailer, one scientist, three consumer/publicone retailer, one scientist, three consumer/public--interest interest advocates, three environmentalists, and a certifying agent. advocates, three environmentalists, and a certifying agent.

•• USDA appoints NOSB members and serves as an USDA appoints NOSB members and serves as an advisory board to the USDA.advisory board to the USDA.

The USDA Organic seal

•All agricultural products labeled "organic" must be in compliance with U. S. organic law.

•The word "organic" on U. S. products means that the ingredients and production methods have been verified by an accredited certification agency as meeting or exceeding USDA standards for organic production.

•Consumers have the assurance that products labeled "organic" have been produced in compliance with the standards set by USDA.

Photo: David Sparer / My Organic Market

The NOP Rule•• Prohibit the use of irradiation, sewage Prohibit the use of irradiation, sewage sludge, or sludge, or genetically modified organisms genetically modified organisms (GMO)(GMO) in organic production.in organic production.

•• Reflect NOSB recommendations Reflect NOSB recommendations concerning items on the national list of concerning items on the national list of allowed synthetic and prohibited natural allowed synthetic and prohibited natural substances. substances.

•• Prohibit antibiotics in organic meat and Prohibit antibiotics in organic meat and poultry; and require 100% organic feed for poultry; and require 100% organic feed for organic livestock.organic livestock.

GMO in the world in 2003

GMO in the world in 2004

United States organic imports

Source: International Trade Centre UNCTAD/WTO

•• Although the United States is a very important producer of Although the United States is a very important producer of organic products and also produces quite a broad range of organic products and also produces quite a broad range of organic food and beverages, the country is far from selforganic food and beverages, the country is far from self--sufficient in this area and needs to import significant sufficient in this area and needs to import significant quantities from all over the world to meet the requirements of quantities from all over the world to meet the requirements of a rapidly growing market.a rapidly growing market.

•• Shortage of organic products is making producers look Shortage of organic products is making producers look outbound for raw materials, increasing volume of organic outbound for raw materials, increasing volume of organic fruit, vegetables, grains, seeds, beans, and herbs that are fruit, vegetables, grains, seeds, beans, and herbs that are being imported into the US.being imported into the US.

•• Finished products are also imported to meet consumer Finished products are also imported to meet consumer demand for all things organicdemand for all things organic..



•• tropical products (mostly),tropical products (mostly), that are not produced that are not produced in the United States (or only in small quantities; examples in the United States (or only in small quantities; examples include coffee, cocoa and tea, most tropical fruit and include coffee, cocoa and tea, most tropical fruit and vegetables (both in fresh and processed form, e.g. fruit vegetables (both in fresh and processed form, e.g. fruit juices, concentrates and pulp), various spices and herbs, juices, concentrates and pulp), various spices and herbs, dried fruit and nuts; suppliers are producers in developing dried fruit and nuts; suppliers are producers in developing countries.countries.

•• offoff--season productsseason products, such as fresh fruit and , such as fresh fruit and vegetables, that are produced in the United States, but vegetables, that are produced in the United States, but where there is an unmet demand during certain periods of where there is an unmet demand during certain periods of the year, potential suppliers will mostly be producers in the year, potential suppliers will mostly be producers in developing countries.developing countries.


•• inin--season productsseason products, e.g. fruit and vegetables, for , e.g. fruit and vegetables, for which there is a temporary or more permanent shortage which there is a temporary or more permanent shortage because of strong and increasing demand; suppliers may because of strong and increasing demand; suppliers may include producers in both developed and developing include producers in both developed and developing countries.countries.

•• novelty novelty or or specialty productsspecialty products, , like high quality like high quality organic wines, certain ethnic food products or certain retailorganic wines, certain ethnic food products or certain retail--packed food products; this segment is currently of packed food products; this segment is currently of increasing interest to European food exporters, though increasing interest to European food exporters, though some developing countries might also profit from such some developing countries might also profit from such opportunities, e.g. wine exporters in Argentina, Chile and opportunities, e.g. wine exporters in Argentina, Chile and South Africa.South Africa.


Source: Organic Monitor

• It is estimated that over US $1.5 billion of organic products are imported into the U.S. compared to about US $150 million in American exports.

United States organic imports and exports value

Source: USDA

Agricultural products imported to the U.S.

•• Tobacco, Tobacco, unmanufacturedunmanufactured•• Vegetables and preps.Vegetables and preps.•• Fruit juicesFruit juices•• Bananas and plantainsBananas and plantains•• Fruits, nuts, and preps., excl. juicesFruits, nuts, and preps., excl. juices•• Grains and feedsGrains and feeds•• Wool, Wool, unmanufacturedunmanufactured•• Hides and skins, incl. fur skinsHides and skins, incl. fur skins•• Fats, oils, and greasesFats, oils, and greases•• Poultry and productsPoultry and products•• Dairy productsDairy products•• PorkPork•• Beef and vealBeef and veal•• Meats and preps., excl. poultryMeats and preps., excl. poultry•• Animals, liveAnimals, live

•• Rubber and allied gumsRubber and allied gums•• Cocoa beans and productsCocoa beans and products•• Coffee, incl. productsCoffee, incl. products•• Coffee, tea, cocoa, spicesCoffee, tea, cocoa, spices•• Beverages excl. fruit juicesBeverages excl. fruit juices•• Vegetable oilsVegetable oils•• Protein mealProtein meal•• OilseedsOilseeds•• Oilseeds and productsOilseeds and products•• Sugar, cane or beetSugar, cane or beet•• Nursery stock and cut flowersNursery stock and cut flowers•• SeedsSeeds•• Cotton, Cotton, unmanufacturedunmanufactured

Source: USDA

Agricultural products exported from the US

•• Other grain productsOther grain products•• Feeds and foddersFeeds and fodders•• Feed grains Feed grains •• Rice Rice •• Wheat flourWheat flour•• Wheat Wheat •• Grains and feeds Grains and feeds •• Mink peltsMink pelts•• Cattle hides, wholeCattle hides, whole•• Hides and skinsHides and skins•• Fats, oils, and greasesFats, oils, and greases•• Poultry meats Poultry meats •• Dairy productsDairy products•• Red Meats and preps.Red Meats and preps.•• Animals liveAnimals live

•• Essential oilsEssential oils•• Vegetable oilsVegetable oils•• Protein mealProtein meal•• SoybeansSoybeans•• OilseedsOilseeds•• SeedsSeeds•• Sugar, cane or beetSugar, cane or beet•• Cotton, excl. lintersCotton, excl. linters•• Oilseeds and productsOilseeds and products•• Tobacco, un manufacturedTobacco, un manufactured•• Vegetables and preps.Vegetables and preps.•• Fruit juices incl. frozenFruit juices incl. frozen•• Fruits, nuts, and preps.Fruits, nuts, and preps.

Source: USDA/ERS 2004

Major markets for U.S. agricultural exports

Supermarkets and grocery Supermarkets and grocery stores, mass merchandisers, stores, mass merchandisers,

and club stores and club stores 44%44%

Independent natural product and Independent natural product and health food stores and natural health food stores and natural

grocery chainsgrocery chains47%47%

Direct sales throughDirect sales through farmers’ farmers’ markets, comarkets, co--ops, foodservice ops, foodservice operations and exportsoperations and exports

9%9% Source: OTA, 2003 survey

Organic food sales

Organic diversification• In addition to fruits,

vegetables, grains, seeds, meat, eggs, dairy items, and baby foods, it’s possible to buy organic pasta sauces, salsa, fruit juice, soup, cereal, ice cream, peanut butter, tea, coffee, frozen dinners, chocolate, popcorn, snack food, beer and other beverages, …..to name just a few options available!

OCIA, a World of Opportunity !!!

www.ocia.org

Thank youThank you 谢谢

Brief introduction to Organic farming in North America

Food

organic products

certified organic facilities

nop national organic

us organic growing

ofpana membershipapproves

ofpana guidelines startand

ofpana new missionstatement

drafts ofindustry standards