Market Challenges Persist as Organic Farm Scheme Opens for New Entrants – IFA

IFA Organic Project Team Chair John Fitzpatrick said the recent announcement that the Organic Farm Scheme (OFS) is open is a positive development. However, market demand for organic produce is not keeping pace with the expansion of the land base.

“At farm level for some organic commodities, markets are now equal to or below their conventional counterparts. Organic milk with good constituents and certain grades of organic beef cattle are at prices lower than conventional milk/beef,” John Fitzpatrick said.

“We cannot have a situation where organic producers are receiving less from the marketplace than their conventional counterparts. Government has to step in and support the further development of organic markets,” he outlined.

According to the DAFM meat market report and the Good Herdsmen price report, the organic O grade beef price per kg was 21c/kg lower than the In-spec conventional price.

“One of the reasons for the high levels of leakage of organic beef into the conventional chain is this pricing structure.  This is wholly unacceptable, given the extra costs associated with producing organic beef. If there is no premium for organic beef, cattle will continue to be sold conventionally,” John Fitzpatrick said.

The organic strategy launched by the Minister at Ploughing Championships aims to triple the value of the organic sector to €750 million by 2030. Unless the relative under performance of organic markets is not addressed, there is little chance of this being achieved.

“There must be a clear financial differential between organic and convention commodity prices. Members are encouraged to consider the organic farm scheme, but to weigh up your options before embarking on it,” he added.

“Existing organic farmers need some security for produce that is already in the system and a premium price ahead of conventional,” John Fitzpatrick concluded.