Is organic viable?

ORGANIC farmers and growers still have some way to go to win the hearts, minds and, in particular, the cash of consumers, say industry observers.

They fear this sector is in danger of developing a stop-go economy, leading to a producer exodus. David Younie, of SAC Aberdeen, said: "We are concerned that we are not in a stable situation as regards supply and demand.

"There was an explosion in supply between 2000 and 2002 and while demand has increased, it is slowing down. I am concerned that some producers will become disillusioned and decide to quit at the end of the five-year conversion period and return to conventional production.

"I suspect that will happen with many hill sheep producers in Scotland, who may be producing store cattle as well. We could go from a surplus of organic store lambs to a shortage for finishing.

"At the same time, we have the Scottish Executive encouraging low ground producers to convert, with higher conversion payments for arable land. We could have more low ground producers looking for store animals in two years’ time and there won’t be enough.

"So we will be on this roller coaster of supply from excess to shortage and that will not be good for the sector. What we need is a balance."

Younie and Dr Nic Lampkin, of the Welsh Organic Centre, feel that maintenance payments designed to encourage organic producers to stay in business after conversion will not deliver.

Younie said: "Maintenance payments are nothing like enough to encourage people to stay. This is certainly the message I am getting from Scottish producers. If they were getting good premiums and response from the market, they would stay. But if not, £13 per hectare per year for arable land for five years is not enough to retain interest."

Figures produced by Lankin at the British Grassland Society’s three-day organic farming conference at Harper Adams University College in Shropshire demonstrated how dependent organic arable and dairy farmers, in particular, were on market premiums for profitability.

"If these premiums are going to decline further, then the compensation payments that farmers get from the government are going to have to increase if we are to retain an organic sector," said Younie.

Proposals to link part of the European Union’s farm support scheme to rural development - or modulation - should provide more options for farmers to take advantage of the flexibility in heading towards less intensive systems, whether through rural stewardship or organic schemes, he said.

But he said the organic lobby had failed to point out the broader advantages of the organic system, such as food quality, improved environment and animal welfare.

Article: Scotsman.com