Demand for organic food products continues for grow

Canada's organic sector 5th largest in the world. OTTAWA—Canada's organic sector has achieved steady growth in demand for its products and as of 2017 accounts for 2.6 per cent of grocery sales, says Tia Loftsgard, Executive Director of the Canadian Organic Trade Association (COTA).The sector celebrated Organic Week Sept. 8-16 with a news conference on Parliament Hill to talk about its progress since the inaugural event in 2009.Loftsgard said the industry is moving away from its small niche image. “Consumer demand for organics is growing at an unprecedented pace, now allowing organic to hold the title of the fastest growing sector in Canadian agriculture.”Canada is the fifth largest consumer market worldwide for organic foods.Last year, the industry racked up $409 million in food sales and $146 million in beverage sales.She said the 2016 Census of Agriculture showed organic acreage increased by 45 per cent to nearly 3 million acres, about 1.7 per cent of farmland in production. About one third of that is in fruit and vegetable production while much of the rest is in livestock related use.In 2016, 4,289 farms reported organic farming. The number of certified and transitional organic farms rose by 4.1 per cent between 2011 and 2016 while the number of organic farmers under 35 stands at 14.6 per cent of the total, she said.Most organic acreage is on Prairies with Saskatchewan accounting for about one third of land in organic production.Agriculture Minister Lawrence MacAulay said that about $500 million of the $5.4 billion worth of organic production is exported. The government is supporting the sector to conduct research activities, open new markets, and adopt new sustainable practices and technologies.Recognized product standards are a key factor in the facilitation of international trade, and the government will continue working with the sector to further support its sustainability and growth, he said.Later this year, COTA will release its Organic Food Service Study that Loftsgard said shows “that consumer demand remains high, continuing to push the industry to offer more and more organic options in food service settings.”The study by Technomic, Inc. will highlight high-level organic trends in food service offerings in restaurants, fast food venues, cafes, institutional settings such as hospitals and schools, she said.The food service sector purchased about $555 million worth of product and about one third of those sales were in the travel and leisure sectors, she said.While produce remains the largest category in the organic food and beverage market by value, there has been heightened demand for ready-to-go and value-added organic products in grocery sales, she said.“The research shows that the organic food processing sector in Canada is on solid footing with respect to growth and economic health with businesses reporting year-over-year growth in excess of 10 per cent.“As new venues demand more organic, innovation in value-added products is required to be suitable for grab-and-go environments and to meet the needs of the organic consumer who wants an organic alternative,” she said.COTA will be releasing a detailed report on the Canadian organic food and beverage processing sector. She said it'll be “the first report of its kind in Canada detailing Canada's key organic processing categories including sales, trends, technical considerations, key players and innovations within each category.”It will show that non-alcoholic beverages, dairy and ready-made meals are the top-performing organic processed categories.Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.