Canada Organic Products Annual Report 2009

A Hot Tip about Agriculture and Animal Husbandry in Canada

Posted on: 4 Jan 2010

With the growing availability of industry data, and given the significant growth in imports between 2007 and 2008, it is estimated that the retail value of organic food in the Canadian market reached C$2.1 – 2.6 billion in 2008.

Voluntary - Public Date: 7/13/2009 GAIN Report Number: CA9039 Canada Post: Ottawa Organics Annual Report Categories: Organic Products Approved By: Lisa Anderson Prepared By: Matthew John Thoren Report Highlights: With the growing availability of industry data, and given the significant growth in imports between 2007 and 2008, it is estimated that the retail value of organic food in the Canadian market reached C$2.1 ? 2.6 billion in 2008. The main categories of organic food sales in supermarkets are: fresh fruits and vegetables at 41%, beverages at 17% and prepared foods at 14% with much of the remainder made up of packaged organic foods. The market is reportedly growing at 15-20% per year with domestic production increasing at an estimated 4%. With this, by some estimates, up to 80% of organic fresh produce consumed in Canada is imported. The vast majority of Canada?s imported organic produce comes from the United States, which accounts for approximately 74% of total organic imports. New organic products regulations will make certification in accordance with the National Standard for Organic Agriculture mandatory for all organic products as of June 30, 2009. Although Canada has had this organic standard since 1999, it had been voluntary and not supported by regulation. Now new mandatory standards are in place. On June 17, 2009, the United States and Canada jointly announced that the two countries had reached an organics equivalency agreement, the first one of its kind. The equivalency agreement follows a review by both nations of the other?s organic certification program and a determination that products meeting the standard in the United States can be sold as organic in Canada, and vice versa. Executive Summary: There are no official estimates on the retail value of the organic food market in Canada. However, with the growing availability of industry data, and given the significant growth in imports between 2007 and 2008, it is estimated that the retail value of organic food in the Canadian market reached C$2.1 - 2.6 billion in 2008. It is however, important to note that these figures are not based on actual point-of-sales data but on estimations from industry sources. Mainstream supermarket chains have responded to consumer demand and are now estimated to sell over 40% of all organic food in Canada. Total 2008 organic sales at supermarkets are valued at approximately C$1.0 billion and represent nearly 2% of all retail food sales. Other channels include natural food stores, farmers markets and food service. The main categories by organic food sales in supermarkets are: fresh fruits and vegetables at 41%, beverages at 17%, and prepared foods at an estimated 14%. Although data are not available for the other sales channels, it is estimated that they have a much higher proportion of fruits and vegetables. The premium for organic produce varies by product, but averages 25% in supermarkets and 50% in health food stores as estimated by industry sources. In Canada, domestic supply growth rates are slower than demand growth. The market is reportedly growing at 15-20% per year with production increasing at an estimated 4%. With this, by some estimates, up to 80% of organic fresh produce consumed in Canada is imported. Organic farms now represent about 1.6% of all farms in Canada and just under 1% of the total area of farms. Production is relatively strong in grains and oilseeds, and gaining strength in vegetable and livestock production. The percentage of domestic consumption met by domestic production is estimated to be approximately 20%. A significant amount of current Canadian production is exported, particularly in grains and oilseeds. Given market immaturity, there is some concern that goods suitable for domestic markets are being exported, even though domestic prices and quality requirements may be comparable. Note: Average Exchange Rate in 2008 = 1.066 CAD/USD CANADIAN MARKET OVERVIEW SUMMARY Advantages Challenges 15-20% annual industry growth rate Competition from Buy Local Programs Negative perception of genetically Organic imports from countries other modified organisms (GMO) act to spur than the U.S. demand for organics Organic farming seen as Higher cost to consumers environmentally and animal friendly Perceived health benefits; less pesticide Relatively low number of organic and herbicide use buyers Limited growing season in Canada Tariff rate quotas for certain products provides excellent opportunities for U.S. organic produce growers and processors Organic food perceived as safer and Bilingual (English & French) labeling healthier Organic food is mainstream in retail Differences in standard package sizes grocery stores; retail stores increasing shelf space dedicated to organic products Organic processors require organic products in quantities that Canadian organic producers cannot meet at this time Educated, younger generation is interested in environmentally friendly and healthy food choices Private label opportunities in organic products Organic ingredients for use in further processing General Information: Other Regulations and Requirements: Organic standards New organic products regulations (OPR) will make certification in accordance with the National Standard for Organic Agriculture mandatory for all organic products as of June 30, 2009. These regulations will fall under the authority of the Canada Agricultural Product Act which will regulate the use of the Canada Organic Label. Requirements and regulations for methods of production comply with the most recent edition of the CAN/CGSB-32.310 Organic Production Systems General Principles and Management Standards. Under this regime, in order to market a product as organic in Canada, the product will need to be certified by a certification body accredited by a Conformity Verification Body (CVB) recognized by the Canadian Food Inspection Agency (CFIA). Canada has updated their Organic Products Page to include links to the proposed OPR 2009, the Draft Stream of Commerce Enforcement Policy, the list of CVBs that have applied CFIA as well as other information documents relative to the Organic Regime. The links to CFIA organic products page can be found below. http://www.inspection.gc.ca/english/fssa/orgbio/orgbioe.shtml Although Canada has had this organic standard since 1999, it had been voluntary and not supported by regulation. Now, new mandatory standards are in place. Organic claims are required to be printed in English and French. A government logo bearing the official program name ?Canada Organic Regime? will be available to indicate organic compliance to the Canadian regulation. Use of the seal will be voluntary. The new version of the regulations also allows CFIA to enter into equivalency agreements with other countries. The import and sale of organic food products in Canada are governed by the same rules and regulations that apply to non-organic food products. No distinction is made between organic and non-organic food with regard to import requirements. Currently, all Canadian packaging and labeling, grade, and inspection regulations apply equally to organic and non-organic foods. Other Specific Standards: On June 17, 2009, the United States and Canada jointly announced that the two countries had reached an organics equivalency agreement, the first one of its kind. The equivalency agreement follows a review by both nations of the other?s organic certification program and a determination that products meeting the standard in the United States can be sold as organic in Canada, and vice versa. Under a determination of equivalence, producers and processors that are certified to the National Organic Program (NOP) standards by a U.S. Department of Agriculture accredited certifying agent do not have to become certified to the Canada Organic Product Regulation (COPR) standards in order for their products to be represented as organic in Canada. Likewise, Canadian organic products certified to COPR standards may be sold or labeled in the United States as organically produced. Both the USDA Organic seal and the Canada Organic Biologique logo may be used on certified products from both countries. The COPR goes into effect on June 30, 2009. The equivalency agreement is expected to lead to greater market opportunities for organic producers in both countries. The Organic Trade Association (OTA) in Canada has published an unofficial list of certifiers operating in Canada. Additions to this list, as well as details on certifiers active outside of Canada are expected in the coming year. To view this information, visit: http://www.ota.com/otacanada/abcb.html For more information about the Canadian government?s Organic Product Regulations and about the organic agriculture industry in Canada, go to the following websites: Organic Products Regulations, 2009 http://gazette.gc.ca/rp-pr/p1/2009/2009-02-14/html/reg1-eng.html Canadian Food Inspection Agency: http://www.inspection.gc.ca/english/fssa/orgbio/otfgtspbe.shtml Contacts: Mike Leclair Senior Market Development Advisor, Organic Sector Sectoral Food Industry Services Division Markets and Trade Team Agriculture and Agri-Food Canada 5th Floor, 930 Carling Ave Ottawa, Ontario Canada K1A 0C5 Telephone: 613-759-7537 Fax: 613-759-7480 Email: mike.leclair@agr.gc.ca Michel Saumur National Manager Canada Organic Office Agri-Food Division Tel: 613-221-7165 Fax: 613-221-7296 Email: msaumur@inspection.gc.ca Agriculture & Agri-Food Canada: http://www4.agr.gc.ca/AAFC-AAC/display- afficher.do?id=1183748510661&LANG=3 Organic Production Standards The definitions of Canada?s production methods for organic agriculture and the substances used (i.e., permitted substances list) are laid out in the Canadian General Standards Board?s (CGSB) publications entitled the Organic Production Systems General Principles and Management Standards and the Organic Production Systems Permitted Substances List. These documents are available on the following CGSB webpage: http://www.pwgsc.gc.ca/cgsb/on_the_net/organic/index-e.html Production: The latest data available from COG show that in 2007 Canada had 3,782 certified organic farms, an increase of over 200 from the previous year, and the highest number on record. For 2008, it is estimated that there are 3900 organic farms over an area of over 578,000 hectares with and additional 352,000 hectares in wild lands. The main products are field crops, vegetables, livestock and maple syrup. Land dedicated to organic production in Canada comprises less than one-percent of the total 68 million hectares of land in agricultural production in Canada. Organic farms represent 1.7 percent of the 229,000 total Canadian farms. Although the Canadian market for organic products is growing an estimated 15-20% per year, production growth is still limited, at about 4% per year. With final regulations just published and increased demand by producers for certification training sessions, growth rates of Canadian organic production are expected to increase in the future. Yea Organic Land Organic r Area (Ha) Farms 2003 400,000 3317 2004 490,000 3673 2005 520,000 3618 2006 530,000 3571 2007 556,273 3782 2008* 578,523 3900 Source: COG *Estimated Source: COG *Estimated Organic Farming by Province, 2007 Province Certified Certified Farmers Proce tares sso Hecrs British Columbia 455 201 13,439 Alberta 231 64 160,765 Saskatchewan 1,104 105 264,734 Manitoba 181 49 36,962 Ontario 669 90 40,763 Quebec 988 485 35,963 New Brunswick 46 8 2,023 Nova Scotia 57 6 931 Prince Edward Island 43 3 693 Newfoundland 5 Yukon 3 1 Source: COG Organic crop production varies by province and region in Canada. Organic wheat is produced primarily in Saskatchewan and is Canada's largest organic crop, with an estimated 76,000 ha of production. Atlantic Canada is reported to produce organic vegetables on small scale farms and to export a portion thereof to the Northeastern United States. Quebec is a major producer of organic maple syrup. Ontario and Central Canada produce a mix of organic vegetables and field crops. The Prairie Provinces (Alberta, Saskatchewan and Manitoba) are the largest producers of organic field crops and export to the United States, European Union and Japan. British Columbia is Canada?s largest producer of organic vegetables and exports to the Pacific Northwest of the United States. Consumption: Canada Organic Foods Market Total Canadian retail sales of organic products through all market channels are estimated to be $2.1?2.6 billion in 2008 with 15?20% annual growth. It is estimated that 80% of organic food consumption is imported. Notable exceptions to this include milk, fresh meat, jams, jellies, yogurt flour and tofu which are primarily sourced in Canada. Annual growth rates of retail sales are also very strong. The latest data from 2007 shows meats leading with over 80% retail growth, followed by growth in fresh vegetable sales at 38%. Source: The Nielson Company British Columbia leads the country in consumption per capita. With 13% of the country?s population, the province consumed 26% of organic food sold in Canada in 2006. 1. Retail Entry Strategy Market entry strategy for organic retail foods does not differ greatly from the entry strategy for non-organic retail foods. While there are many similarities between Canada and the United States, regulations, demographics and consumption patterns differ between the two countries. For more information, refer to the Canada Exporters Guide, CA9012 Food brokers often play a critical role in market development for new products in Canada. It is important to find a broker that has strong relationships in the targeted channels and experience with marketing U.S. food products in the Canadian market. More information on the role of food brokers is available in the Canada Food Brokers Guide. Market Summary Industry sources estimate the size of the Canadian retail market for organic foods to be approximately C$2.1 ? $2.6 billion and growing at 15 ? 20% per year. Although traditional supermarkets account for a significant amount of retail sales of organic products, it is estimated that more than half of all sales are through alternative channels. Following are estimates of 2008 organic food sales by channel, as based on 2006 data and estimated market growth rates. Channe 2008 Share l ($M) (%) Mainstream Supermarkets 1037.2 41.1 Natural Food Stores 831.1 32.9 Other Conventional Retail 440.2 17.5 Box Delivery 50.4 2.0 Farmers Markets 126.0 5.0 Food Service 25.2 1.0 Co-ops/Clubs 12.6 0.5 Est. Total 2522.8 100.0 Estimates based on Nielson 2006 While complete official data is not available on Canadian organic production and imports, industry sources estimate that 80% of the retail market for organic food products is supplied by imports. Below are the largest food retail groups in Canada. Many operate retail stores under multiple banners, which differ with geographic region. 2008 Retailer Name Food No. of Purchasing Type and Outlet Type Store Sales Ou Locations tlets Agent Type C$ Billions Loblaws Sup 036 throughout Head Office erma Supermarket 31.7 1rket Canada Sobeys Superma Sup egional ermarket 15.6 1317 throughout R rket Canada Offices Couche-Tard Convenience 15.3 2100 E. Canada, ON, W. Canada Metro Sup Sup QC, ON Head Office ermarket 11.9 1479 ermarket BC, AB, SK, MB, Corporate Canada Safeway Supermarket 6.8 223 ON Merchandising, (Calgary) throughout Regional Costco Club 5.0 76 Canada Offices Wal-Mart Mass 3.3 304 throughout Section Teams Merchandise Canada Overwaitea Supermarket 2.7 115 BC, AB Head Office Shoppers Drug Mar Drug ut Head Office 1.21/ 1230 througho t Canada Source: Canadian Grocer Who?s Who 2009, 1/ Food Sales BC=British Columbia, AB=Alberta, SK=Saskatchewan, MB= Manitoba, On=Ontario, QC=Quebec Trends A recent report on Canada from Health Focus International indicates that 57% of consumers purchase organic food products on a regular basis. Other industry sources indicate that organic consumers tend to be under 55 years of age and have household incomes of over $80,000. Urban consumers have a higher tendency to consume organics than those in rural areas and consumers of organics tend to be university educated. To have a better sense of the priorities for Canadian consumers purchasing organic products, OTA in Canada and the Canadian Organic Growers (COG) partnered on a basic Canadian consumer survey in December 2008. The survey was conducted by online polling, and provides a reassuring picture of the commitment Canadian core consumers have to organic. It also sheds some promise on ?new entrants? to the organic market. Health concerns ranked highest (with ?family health? identified as the most significant reason, at 34 %, and ?personal health? coming at 22 %). The respondents also cited concern for the environment as the top reason for 33 % of those polled. Other reasons, such as the avoidance of GMOs, taste, or curiosity ranked significantly lower. Source: OTA, COG Industry sources indicated that while supermarkets have tried to expand into additional organic sectors, fresh fruits and vegetables remain the core of the organic food market in Canada. While organic share of total supermarket food sales is estimated to be between 1- 2%, organic share of the retail fresh produce market ranges between 3-5%, and as high as 6- 7% during high season. Supermarkets are beginning to integrate fresh organic produce alongside conventional produce, whereas previously the two categories were merchandised separately. According to industry sources, the premium for organic produce varies by product, but averages approximately 25% in supermarkets and 50% in health food stores. It is reported that consumers bind perceptions of ?organic? with ?fresh produce? and it has been difficult for supermarkets to grow other sectors of the organic market. Sectors that have been successful include packaged goods that are compliments to or associated with fresh produce, and everyday foods. These include organic salad dressings, dips, fruit juices, pasta sauces, pasta, and breakfast cereals. There is consumer interest in organic beef, but supermarkets report prices which are 50? 100% higher than prices of conventional products. Non-conventional product substitutes in early stages of marketing include ?free from? products, which claim to be free from antibiotics, animal byproducts or other additives that consumers may be looking to avoid. Organic dairy products and organic eggs have been successfully marketed in Canada, but opportunities for U.S. exporters are limited due to quotas on eggs and imported dairy products. Food Service Use of organics in food service is not non-existent, but is reported to be minimal. Organics in food service is primarily limited to consumption of organic produce in independent restaurants looking to differentiate through use of organic ingredients. The Canadian Restaurant and Foodservice Association (CRFA) reports that organic products displayed at the annual trade show were promoted as ?local?. Organics in foodservice institutions are used at a minimum, and are generally not consumed over conventional products. Industry sources report that food service institutions seek to minimize input costs and are not prepared to invest in organic ingredients. Food Ingredients Direct industry sources indicate that use of organic food products in mainstream, high volume food processing in Canada is very limited. Interest from major food processors is low as the investment into organic ingredients is perceived to be high and return is perceived to be low. There is relatively less overlap between consumers of organic foods, and consumers that are less health conscious and are open to foods that are highly processed and contain additives and preservatives. Much of the processed organic foods market is addressed by small stores which are owner or producer driven. There are however, a few products in mainstream supermarkets which carry the organic label. Industry sources report that while there was growth in the number of organic SKUs from 2001 until 2005, growth has been flat over the last 2-3 years. Processed organic products found in mainstream supermarkets in Canada include the following. Mainstream Supermarkets, Selected Organic Products Apple Juice Hummus Quick Oats Apple Sauce Maple Syrup Raisin Bran Balsamic Vinaigrette Mozzarella Cheese Ranch Dressing Bartlette Pear Plu Muesli Flakes Raspberry Jam Blueberry Waffles Multigrain Squares Salted Butter Canola Oil Orange Juice Soy Beverage Cheddar Cheese Pasta Sauce Strawberry Jam Diced Plum Tomatoes Peanut Butter Tomato Ketchup Fruit Snacks Pickles Unsalted Butter Grape Juice Plain Yogurt Whole Plum Granola Cereal Portabella Mushrooms Tomatoes Source: Sobeys Trade: Import Value The majority of tracked organic imports - or an estimated 87% - are fruits and vegetables. Other notable categories include tea, food preparations and sauces. Canadian imports of certified organic agriculture produce in 2008 are estimated to be well in excess of C$300 million. To be certified organic, an imported product must be certified under a system that meets the standards and procedures established by the Canadian Organic Products Regulations made under the Canada Agricultural Products Act. The vast majority of Canada?s imported organic produce comes from the United States, which accounts for approximately 74% of total organic imports. 2008: Est. C$300 million Source: World Trade Atlas Additional codes to track imports of more organic products are expected in the future, but the Canadian government stipulates that C$5 million in import value per commodity is needed to create any new import code. Currently the leading imported products by value include cabbage, raspberries, sauces, carrots and bananas. Total Total from U.S. US Share Description 2008 1 yr chg.* 2008 1 yr chg.* 2008 C$000 (%) C$000 (%) (%) Apples 10,668.8 25.0 7,616.5 21.1 71.4 golden delicious 1,759.9 136.8 1,759.9 136.8 100.0 red delicious 1,066.2 (18.5) 1,064.5 (17.8) 99.8 granny smith 1,261.8 (32.8) 896.6 (42.6) 71.1 Gala 3,357.9 23.9 2,047.3 32.4 61.0 nes 3,223.1 69.8 1,848.2 61.3 57.3 Asparagus 599.3 39.2 243.3 (6.7) 40.6 Asparagus 599.3 39.2 243.3 (6.7) 40.6 Bananas 19,268.5 28.9 282.1 16.3 1.5 Bananas 19,268.5 28.9 282.1 16.3 1.5 Beets and Radishes 684.0 19.8 605.6 13.2 88.5 Beets 458.5 23.3 421.7 14.0 92.0 Radishes 225.5 13.4 183.9 11.3 81.6 Berries 45,935.4 30.7 26,654.3 44.9 58.0 Raspberries+Loganberries 8,824.5 8,147.2 92.3 Cranberries* 1,280.4 1,280.4 100.0 Blueberries 35,830.5 2.0 17,226.7 (6.4) 48.1 Brussels Sprouts 76.3 49.8 65.0 49.6 85.2 Brussels Sprouts 76.3 49.8 65.0 49.6 85.2 Cabbage 3,257.5 (23.0) 3,070.6 (23.5) 94.3 Broccoli 2,295.8 (34.8) 2,145.9 (35.8) 93.5 Cabbage 726.7 39.7 700.6 37.5 96.4 Chinese Cabbage 235.1 25.6 224.1 42.5 95.3 Carrots 23,047.0 203.0 22,958.5 205.5 99.6 Baby Carrots, <1kg 7,678.9 7,662.1 99.8 Baby Carrots, >1kg 5,746.8 5,734.2 99.8 Carrots, nes 9,621.3 26.5 9,562.2 27.3 99.4 Cauliflower+Broccoli 3,772.5 71.3 3,663.3 70.5 97.1 Cauliflower and Broccoli 3,772.5 71.3 3,663.3 70.5 97.1 Celery 3,408.5 (0.1) 2,770.8 3.6 81.3 Celery, excl celeriac 3,408.5 (0.1) 2,770.8 3.6 81.3 Cherries 5,340.6 3,154.9 Cherries 5340.6 3154.9 Corn 134.9 (0.2) 134.6 0.0 99.8 Sweet corn-on-the-cob, nes 134.9 (0.2) 134.6 0.0 99.8 Cucumbers+Gherkins 1,118.5 29.1 226.8 34.1 20.3 non-greenhouse, 1,118.5 29.1 226.8 34.1 20.3 Eggplants 450.9 45.2 37.1 6.3 8.2 Eggplant 450.9 45.2 37.1 6.3 8.2 Food Preps 10,159.7 10,157.7 100.0 Food prep, infant >10% dry wt ml 10,159.7 10,157.7 100.0 k* Grapefruit 1,754.8 46.1 1,379.6 69.0 78.6 Grapefruit 1,754.8 46.1 1,379.6 69.0 78.6 Lemons+Limes 18,202.5 (28.5) 10,872.0 (12.1) 59.7 Lemons 12,973.0 (22.9) 10,673.4 (11.4) 82.3 Limes 5,229.5 (39.4) 198.6 (37.0) 3.8 Lettuce 62,355.6 19.3 61,445.0 19.8 98.5 Cabbage type, n/grnhse 2,321.5 35.0 2,315.2 34.7 99.7 Lettuce 60,034.1 18.8 59,129.8 19.2 98.5 Milk Beverages 5,159.6 269.9 5,149.2 269.2 99.8 Milk beverages 5,159.6 269.9 5,149.2 269.2 99.8 Olive Oil 3,630.0 217.2 6.0 Olive oil, virgin, <18kg 3,630.0 217.2 6.0 Onions and Shallots 2,639.7 1.9 1,616.8 (10.5) 61.3 Green 1,355.7 22.0 411.9 (3.0) 30.4 Onions 1,283.9 (13.3) 1,205.0 (12.8) 93.8 Oranges 3,161.4 (43.1) 3,004.6 (0.6) 95.0 Oranges, ex temple 3,161.4 (43.1) 3,004.6 (0.6) 95.0 Papayas 94.8 (38.1) 81.7 88.3 86.1 Papayas 94.8 (38.1) 81.7 88.3 86.1 Peaches and Nectarines 653.9 52.7 634.9 73.6 97.1 Peaches, excl nectarines 653.9 52.7 634.9 73.6 97.1 Pears 2,557.4 (5.8) 1,914.2 (0.4) 74.8 Pears 2,557.4 (5.8) 1,914.2 (0.4) 74.8 Peas 651.0 14.2 2.2 Peas* 651.0 14.2 2.2 Peppers 3,458.6 (3.7) 1,091.0 (38.2) 31.5 capsicum&pimenta, ngrnhse 3,458.6 (3.7) 1,091.0 (38.2) 31.5 Pineapple 1,715.6 (13.8) 176.9 94.8 10.3 Pineapple 1,715.6 (13.8) 176.9 94.8 10.3 Potatoes 1,928.8 18.9 1,882.3 16.0 97.6 Potatoes 1,928.8 18.9 1,882.3 16.0 97.6 Sauce 29,728.4 29,447.1 99.1 Tomato sauces 29,728.4 29,447.1 99.1 Spinach 12,196.1 13,029.0 106.8 Spinach, NZ & Orache <500g* 8,770.1 9,461.6 107.9 Spinach, NZ & Orache >500g* 863.5 942.0 109.1 Spinach, nes 2,562.5 2,625.5 102.5 Strawberries 14,916.3 14,359.2 96.3 Strawberries 14,916.3 14,359.2 96.3 Tea 7,484.4 2,011.2 26.9 Green tea, bags 1,226.4 413.9 33.7 Green tea, packages <3kg 1,859.8 179.4 9.6 Green tea, packages >3kg 1,140.5 97.6 8.6 Black tea, bags 1,819.1 585.2 32.2 Black tea, packages <3kg 424.3 145.9 34.4 Herbal tea, nes* 1,014.3 589.2 58.1 Tomatoes 5,339.9 27.8 2,101.4 14.0 39.4 Tomatoes, Cherry 1,722.1 (7.3) 445.7 0.9 25.9 Tomatoes Roma 1,319.8 14.2 1,021.6 11.3 77.4 Tomatoes, nes 2,298.1 97.5 634.1 31.1 27.6 Watermelons 651.4 (29.5) 343.9 (47.2) 52.8 Watermelons 651.4 (29.5) 343.9 (47.2) 52.8 Yogourt 237.9 (0.9) 236.1 0.1 99.2 Yogourt, w/a 237.7 0.7 236.1 0.1 99.3 Yogourt, o/a 0.2 (95.7) TOTAL REGISTERED CERTIF 306,440.6 232,648.7 75.9 IED Source: Statistics Canada *if tracked in 2007 by Statistics Canada Import Volume Of those organic food products for which CBSA has designated tariff codes, over 150,000 metric tons (MT) were imported into Canada in 2008. However, industry sources indicate that a more accurate figure is 200,000 MT, as this would include organic products which do not currently have any assigned tariff codes. Of the imported 150,000 MT which are tracked, the United States supplied over 73%. Top imports by total volume were tomato sauces, bananas, carrots and lettuce. Total Total from U.S. U.S. Share Description 2008 1yr chg.* 2008 1yr chg.* 2008 MT (%) MT (%) (%) Apples 5,962.8 24.0 4,346.5 18.3 72.9 Golden delicious 1,012.7 147.6 1,012.7 147.6 100.0 Red delicious 693.0 (23.4) 691.9 (22.5) 99.9 Granny Smith 714.7 (37.2) 520.7 (45.9) 72.9 Gala 1,806.5 30.3 1,090.9 34.3 60.4 nes 1,736.0 78.6 1,030.2 72.9 59.3 Asparagus 146.7 71.4 54.5 14.3 37.1 Asparagus 146.7 71.4 54.5 14.3 37.1 Bananas 18,968.4 10.1 268.2 (9.8) 1.4 Bananas 18,968.4 10.1 268.2 (9.8) 1.4 Beets+Radishes 388.6 19.8 339.4 17.8 87.3 Beets 254.8 43.0 237.1 33.6 93.0 Radishes 133.8 (8.4) 102.3 (7.6) 76.5 Berries 9,875.7 86.1 7,288.1 104.6 73.8 Raspberries & Loganberries 1,666.0 1,575.8 94.6 Cranberries 571.8 571.8 100.0 Blueberries (Cert) 7,637.9 44.0 5,140.6 44.3 67.3 Brussels Sprouts 17.3 43.3 14.9 46.0 86.0 Brussels Sprouts 17.3 43.3 14.9 46.0 86.0 Cabbage 3,436.6 (22.2) 3,194.5 (24.0) 93.0 Broccoli 2,293.1 (37.2) 2,088.6 (40.1) 91.1 Cabbage 952.8 54.3 923.1 53.8 96.9 Chinese Cabbage 190.8 30.4 182.8 57.8 95.8 Carrots 15,891.3 143.2 15,832.3 144.7 99.6 Baby Carrots, <1kg 3,830.9 3,823.7 99.8 Baby Carrots, >1kg 3,793.1 3,787.3 99.8 Carrots, nes, 8,267.3 26.5 8,221.3 27.1 99.4 Cauliflower and Broccoli 3,047.9 63.1 2,944.2 61.3 96.6 Cauliflower& Broccoli 3,047.9 63.1 2,944.2 61.3 96.6 Celery 2,432.7 (10.4) 1,964.7 (10.3) 80.8 Celery, excl celeriac 2,432.7 (10.4) 1,964.7 (10.3) 80.8 Cherries Cherries 1,003.9 658.9 65.6 Corn 67.1 45.8 66.9 45.9 99.6 (KGM) Sweet corn-on- the-cob, nes 67.1 45.8 66.9 45.9 99.6 Cucumbers and Gherkins 811.9 54.9 187.8 38.4 23.1 non-greenhouse, 811.9 54.9 187.8 38.4 23.1 Eggplants 623.6 85.2 27.4 39.2 4.4 Eggplant 623.6 85.2 27.4 39.2 4.4 Food Preps 2,172.5 2,172.2 100.0 Food prep, infant >10% dry wt mlk 2,172.5 2,172.2 100.0 Grapefruit 2,668.3 142.8 2,288.1 237.3 85.7 Grapefruit 2,668.3 142.8 2,288.1 237.3 85.7 Lemons+Limes 12,948.3 (39.2) 6,199.6 (26.3) 47.9 Lemons 7,701.1 (42.0) 6,042.3 (26.0) 78.5 Limes 5,247.2 (34.6) 157.3 (36.1) 3.0 Lettuce 15,335.4 25.6 14,989.6 26.3 97.7 Cabbage Lettuce, non- greenhouse 1,939.4 31.2 1,936.3 31.0 99.8 Lettuce 13,396.0 24.8 13,053.3 25.7 97.4 Milk Beverages 7,580.0 75.7 7,189.6 82.2 94.9 Milk beverages 7,580.0 75.7 7,189.6 82.2 94.9 Olive Oil 608.3 38.8 6.4 Olive oil, virgin, <18kg 608.3 38.8 6.4 Onions and Shallots 2,263.8 28.1 1,898.4 31.7 83.9 Green 454.6 15.7 180.1 2.4 39.6 Onions 1,809.2 31.6 1,718.3 35.7 95.0 Oranges 2,865.7 (36.4) 2,698.8 18.1 94.2 Oranges, excl temple 2,865.7 (36.4) 2,698.8 18.1 94.2 Papayas 36.1 (31.3) 25.7 68.9 71.3 Papayas 36.1 (31.3) 25.7 68.9 71.3 Peaches and Nectarines 325.7 94.7 316.2 120.0 97.1 Peaches, excl nectarines 325.7 94.7 316.2 120.0 97.1 Pears 1,278.9 (18.5) 942.7 (16.2) 73.7 Pears 1,278.9 (18.5) 942.7 (16.2) 73.7 Peas 258.7 - 3.4 - 1.3 Peas 258.7 3.4 1.3 Peppers 1,547.5 (23.1) 770.1 (46.7) 49.8 capsicum/pimenta, n/greenhouse 1,547.5 (23.1) 770.1 (46.7) 49.8 Pineapple 1,335.1 (19.2) 76.4 93.3 5.7 Pineapple 1,335.1 (19.2) 76.4 93.3 5.7 Potatoes 2,094.0 15.9 2,047.0 13.3 97.8 Potatoes 2,094.0 15.9 2,047.0 13.3 97.8 Sauce 24,425.0 24,228.7 99.2 Tomato sauces 24,425.0 24,228.7 99.2 Spinach 2,102.0 1,944.6 92.5 Spinach, NZ & Orache <500g 1,184.2 1,147.0 96.9 Spinach, NZ & Orache >500g 171.0 171.0 100.0 Spinach, nes 746.7 626.6 83.9 Strawberries 3,756.1 3,685.6 98.1 Strawberries 3,756.1 3,685.6 98.1 Tea 457.9 116.9 25.5 Green tea, bags 84.7 33.5 39.5 Green tea, pakg <3kg 141.5 7.1 5.0 Green tea, pakg >3kg 81.9 6.9 8.5 Black tea, bags 63.5 24.1 37.9 Black tea, pakg<3kg 33.4 6.5 19.5 Herbal tea, nes 53.0 38.8 73.3 Tomatoes 2,515.7 34.8 1,254.6 8.8 49.9 Tomatoes, Cherry 432.5 (7.2) 98.9 (27.9) 22.9 Tomatoes Roma 1,111.8 27.0 937.8 27.6 84.3 Tomatoes, nes 971.4 85.0 217.9 (22.5) 22.4 Watermelons 1,088.9 (47.1) 652.7 (57.8) 59.9 Watermelons 1,088.9 (47.1) 652.7 (57.8) 59.9 Yogourt 89.3 (3.6) 88.8 (2.0) 99.4 Yogourt, w/a 89.2 (1.6) 88.8 (2.0) 99.5 Yogourt, o/a 0.1 (95.7) TOTAL REGISTERED CERTIFIED 150,427.8 110,817.0 73.7 Source: Statistics Canada *if tracked in 2007 by Statistics Canada Import Prices In most cases, prices of imported organic produce and food products are at a premium to non organic products. Following is a list of selected imported organic products and the prices of equivalent non-organic shipments. The highest premiums were paid for organic sweet corn- on-the-cob, brussels sprouts, black tea and celery. World Avg. US Avg Description Cert Non Premium Cert Non Premium $/kg $/kg % $/kg $/kg % Apples, Gala 1.86 1.36 37.0 1.88 1.43 30.8 Apples, golden delicious 1.74 1.37 27.1 1.74 1.37 27.1 Apples, granny smith 1.77 1.34 31.9 1.72 1.35 27.8 Apples, nes 1.86 1.31 41.8 1.79 1.31 36.8 Apples, red delicious 1.54 1.38 11.8 1.54 1.38 11.7 Asparagus 4.08 3.35 22.0 4.47 3.04 47.1 Baby Carrots, <1kg 2.00 1.47 36.7 2.00 1.46 37.3 Baby Carrots, >1kg 1.52 1.88 (19.2) 1.51 1.93 (21.5) Bananas 1.02 0.68 48.7 1.05 1.30 (18.8) Beets 1.80 1.38 30.5 1.78 1.34 32.6 Black tea, bags 28.66 15.87 80.6 24.31 9.75 149.4 Black tea, packages <3kg 12.71 7.02 81.1 22.45 8.22 173.1 Blueberries 4.69 5.02 (6.5) 3.35 4.16 (19.4) Broccoli 1.00 1.03 (2.3) 1.03 0.99 3.3 Brussels Sprouts 4.40 1.81 142.4 4.36 1.54 183.1 Cabbage 0.76 0.80 (5.2) 0.76 0.81 (5.9) Cabbage Lettuce, non-greenhouse 1.20 0.77 54.5 1.20 0.78 53.4 Carrots, nes, 1.16 0.85 36.2 1.16 0.88 31.6 Cauliflower+Broccoli 1.24 0.94 32.1 1.24 0.94 32.9 Celery, excl celeriac 1.40 0.55 155.1 1.41 0.55 157.3 Chinese Cabbage 1.23 0.87 41.9 1.23 0.78 58.1 Cranberries 2.24 2.43 (7.9) 2.24 2.37 (5.6) Cucumbers&Gerkins 1.38 0.99 39.5 1.21 0.86 39.8 Eggplant 0.72 1.17 (38.4) 1.36 1.14 18.8 Food prep, infant >10% dry wt mlk 4.68 4.71 (0.8) 4.68 4.27 9.5 Grapefruit* 0.66 0.66 0.1 1.20 0.61 96.9 Green Onions 2.98 1.50 98.8 2.29 1.49 53.5 Green tea, bags 14.48 17.25 (16.0) 12.37 13.57 (8.9) Green tea, packages <3kg 13.14 9.38 40.2 25.13 12.93 94.4 Green tea, packages >3kg 13.93 7.16 94.5 14.11 9.03 56.3 Herbal tea, nes 19.14 13.56 41.2 15.18 11.07 37.1 KGM Lettuce, Salad Cut Mix, <1kg, 8.02 3.40 135.6 8.02 3.40 135.6 KGM Lettuce, Salad Cut Mix, >1kg 3.06 2.82 8.5 3.05 2.82 8.2 Lemons 1.68 1.43 17.5 1.77 1.51 16.6 Limes 1.00 0.90 10.5 1.26 1.06 18.7 Olive oil, virgin, <18kg 5.97 5.39 10.7 5.60 6.55 (14.5) Onions 0.71 0.52 36.7 0.70 0.50 41.1 Oranges, excl temple 1.10 0.76 46.1 1.11 0.66 68.2 Papayas 2.62 1.39 88.2 3.17 2.61 21.4 Peaches, excl nectarines 2.01 1.48 35.8 2.01 1.41 42.8 Pears 2.00 1.22 63.9 2.03 1.19 70.9 Peas 2.52 3.63 (30.7) 4.15 5.06 (17.9) Peppers non greenhouse 2.23 1.59 40.3 1.42 1.47 (3.5) Pineapples 1.28 0.96 33.7 2.32 1.10 109.9 Potatoes 0.92 0.60 54.0 0.92 0.60 53.8 Radishes 1.69 0.74 127.3 1.80 0.79 127.5 Raspberries & Loganberries 5.30 6.21 (14.8) 5.17 6.08 (15.0) Spinach, nes 3.74 1.95 92.3 4.19 1.97 112.3 Spinach, NZ & Orache <500g 8.08 3.19 153.3 8.25 3.21 156.8 Spinach, NZ & Orache >500g 5.51 2.38 131.4 5.51 2.38 131.3 Strawberries 3.97 2.93 35.4 3.90 2.89 34.7 Sweet corn-on-the-cob, nes 2.01 0.62 224.2 2.01 0.59 240.3 Tomato sauces 1.22 1.21 0.3 1.22 1.19 2.2 Tomatoes 3.98 2.32 71.8 4.50 2.32 94.2 Watermelons 0.60 0.46 29.0 0.53 0.44 19.3 Yogourt, w/a 2.66 3.06 (12.9) 2.66 3.11 (14.5) EXPORTS Canada documents commodity exports based upon import data supplied by destination countries. Because no other country ? including the United States ? tracks imports of organic foods, there is no official export data available. However, industry sources maintain that a significant amount of current Canadian production is exported, particularly in grains and oilseeds. There is some concern in Canada that goods suitable for domestic markets are being exported, even though domestic prices and quality requirements may be comparable. Although there is no official data, based on growth rates and past studies, total organic exports from Canada are estimated at approximately C$100 million for 2008. Industry sources indicate that organic wheat is the most significant export. However, exports of oats, flax, barley, lentils, peas, spelt, hemp, soybeans, corn, sunflowers, and other grains and oilseeds are also significant. According to the Canadian Wheat Board, over 71,000 MT of Western Canadian certified organic wheat, durum, and barley were sold in 2005, with over 50% exported to the United States. Sources indicate that in 2008, 55,000 MT of organic wheat were exported to the United States alone and it can be estimated that the total exports have grown considerably since the last data was released in 2005. Other Canadian organic exports include maple syrup, apples and various fresh vegetables. Organic tomato exports in 2008 were valued at C$5 million. Marketing: PROMOTIONAL ACTIVITIES USDA/Foreign Agricultural Service endorses and organizes a U.S. pavilion at the annual retail report SIAL Montreal. The 2009 show took place April 1-3 at Palais de Congress in Montreal. Information on the show is available on their web site: http://www.sialmontreal.com/home.ch2. For information on the USA Pavilion contact Kelly Wheatley, IMAX Management, Inc. kellyw@imexmgt.com or Sharon Cook, Overseas Trade Support Branch, USDA/FAS. Sharon.cook@usda.gov USDA/FAS also endorses the Canadian Restaurant and Foodservice Association Show (CRFA Show), formerly The Canadian Food & Beverage Show and HostEx, which have now joined forces. This show took place March 8-10, 2009. Web Site: http://www.crfa.ca/tradeshows/crfashow/. For information on the USA Pavilion contact Edwin Cabural, Exhibits Manager, Canadian Restaurant and Foodservices Association, ecabural@crfa.ca or Sharon Cook, Overseas Trade Support Branch, USDA/FAS. Sharon.cook@usda.gov Ethnic and Specialty Food Show/ All Things Organic Annual October 2008 Web Site: http://www.ethnicandspecialtyfood.com/
Posted: 04 January 2010

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