The Organic Sector: Strengths, Weaknesses, Opportunities, Threats and Associated Key Issues

Version 2
December 4, 2006

Prepared for Agriculture and Agri-Food Canada and the Organic Sector Value Chain Roundtable

December 2006

Prepared by:
Rod MacRae, PhD, Russ Christianson, MIR, BComm, Ralph Martin, PhD, PAg Organic Agriculture Centre of Canada, Truro NS

Table of Contents

• Executive Summary
• 1. Introduction
  • 1.1 Supply Chains and Value Chains
  • 1.2 Framing the organic sector value chain
  • 1.3 A brief overview of the organic sector in Canada
• 2. Strengths
  • 2.1 Canadas natural and climatic advantages
  • 2.2 An expanding ecological knowledge base
  • 2.3 New standards, certification and accreditation systems, and an organic regulation
  • 2.4 Farming
  • 2.5 Processing
  • 2.6 Distribution, retail and food service
  • 2.7 Increasing support for new co-operatives from large established co-operatives
  • 2.8 Exports and imports
  • 2.9 Improved knowledge generation and transfer, training, and extension
  • 2.10 Increased organic sector capacity
  • 2.11 Significant government role in sector development
  • 2.12 Good relations with the rest of the Canadian agri-food sector
  • 2.13 Consumer confidence
• 3. Weaknesses
  • 3.1 Unresolved issues regarding standards, certification, accreditation, and organic regulation
  • 3.2 Farming
  • 3.3 Processing
  • 3.4 Distribution, retail and food service
  • 3.5 Export and import
  • 3.6 Organic sector limitations
  • 3.7 Narrow interpretation by government of organics role in the agri-food system
  • 3.8 Consumer worries
  • 3.9 Limited data and analysis of the full organic supply chain
• 4. Opportunities
  • 4.1 Continuous improvement of standards, certification, accreditation, organic regulation
  • 4.2 Farming
  • 4.3 Processing
  • 4.4 Distribution, retail and food service
  • 4.5 Exports and imports
  • 4.6 Organic sector capacity
  • 4.7 Interactions with government programmes (APF1 and 2)
  • 4.8 Taking advantage of emerging consumer demographics
• 5. Threats
  • 5.1 Standards, Certification, Accreditation, Organic Regulation
  • 5.2 Farming
  • 5.3 Processing
  • 5.4 Export and import
  • 5.5 Demand - supply imbalances
  • 5.6 Organic sector capacity
  • 5.7 Consumer confidence
• 6. Conclusions
• Appendix 1 - The environment in which the organic sector operates
• Appendix 2 - The goals and targets of the Agricultural Policy Framework and the potential for widespread adoption of organic farming to address them