Organic farming has struggled for widespread traction in Ireland, with just 2% of farmland in organic farming compared with the EU average of 9%. Within this average, Ireland is at the lower end, but it increases to 25% in Austria and over 20% in Sweden and Estonia.

The EU has an ambitious target for the incoming CAP to increase the EU average to 25%, though for Ireland, the target is a more modest 7.5%, which in the Irish context is still ambitious.

Slow uptake

Organic farming has so far failed to take off in Ireland, despite an IFAC survey this week saying over 50% of beef and sheep farmers would be open to it if the terms were right. Similarly, John Purcell from Good Herdsman said that they don’t have the supply to meet the market demand for organic beef at present.

To put this in context, such has been the demand for beef in recent weeks that several factories were unable to fully satisfy demand for conventional beef as well.

The problem with organic production in Ireland is achieving consistent markets that offer a price return to farmer suppliers which offsets the additional cost of production. Frequently, Irish organic dairy and sheep are traded in mainstream conventional markets, which suggests that market demand at best isn’t consistent.

This can be offset by a committed processor and end user, either in retail or food service, investing in sustaining supply through lean times in the market place, but that isn’t sustainable beyond the short-term.

Market or production led

As well as being market led, organic farming can also be production led. The Minister for Agriculture extended the closing date for applications to the latest scheme until Friday 22 April, which suggests that it wasn’t dramatically oversubscribed at the original closing date on 8 April.

A sufficiently attractive scheme for production will increase the growing base, but that brings with it the risk of there being a market available for extended production capacity.

On the other hand, if customers are left wanting, as was reported by Good Herdsmen, this week, then a market opportunity can also be lost, leaving us with a chicken and egg debate on whether we should produce and hopefully find a market, or search for markets before committing to production.

Conversion period

Part of the frustration is that production cannot be switched on and off instantly, as it requires a two-year conversion period from conventional farming to being fully organic and in the interim the produce doesn’t qualify to be sold as organic.

Conversion payments help to bridge the transition, but ultimately when converted, organic prices must be high enough to offset the inevitable loss in production when fertiliser and pesticide is excluded. Ultimate long-term success for Irish organic farming is being able to match production with markets that are willing to pay a sufficient premium.

Over half of beef and sheep farmers are interested, but getting them to commit will require showing them the route to a long-term profitable and financially sustainable business.