Minister of State for Land Use and Biodiversity Pippa Hackett had hoped for the 2021 Government Organic Farming Scheme (OFS) to be fully subscribed. As it turned out, roughly 60% of places were filled in 2021.
Now, the Government is ready to reopen the scheme (planned for the second week of February) and say they are fully committed to developing the Irish organic sector.
“I am limited in the changes I can make at this stage, with a new CAP just around the corner, but I am doing what I can and am aiming to cater for different types of farmer,” Minister Hackett tells Irish Country Living in regard to the 2022 OFS.
“I am also engaging with Teagasc and the Agricultural Consultants Association (ACA) so that farm advisers will be able to support those who want to take advantage of going organic.”
Teagasc organic specialist Joe Kelleher says the biggest benefit of this year’s scheme, in his view, is that the two-year conversion period (while those in the scheme receive a max of €220/ha) will provide essential time for organisations – like Bord Bia – to diversify the current routes to market for organic producers.
Joe Kelleher (right) at Teagasc's recent organic dairy farm walk with farmer Kevin O'Hanlon.
“[For example], a beef farmer who joins the OFS in 2022 will not be able to sell their beef as organic until 2024,” he says. “This gives processors and other bodies two years to identify new markets for the beef that may come on stream.”
The max area for OFS payment has increased from 60ha to 70ha. In addition to the reopening of the OFS, the Organic Processing Investment Grant Scheme was opened on 1 February by Minister Hackett. This grant provides funding to processors who wish to invest in organic processing facilities. A total of €1.2m has been allocated to funding this scheme. Applicants can apply for grant aid for off farm investments up to €700,000.
Is there a market?
There has been much discussion about what kind of market there is for the Irish organic sector. For many larger agri processors, current demand for organics is not enough to make them want to diversify into organics. However, most organic processors, say the opposite – that they need more farmers to convert to meet their demand.
We also can’t ignore the fact that many organic beef and lamb farmers fail to get a premium price for their product and end up selling their meat through conventional systems. Nationwide access to the market remains an issue.
But is it really up to end consumers to drive demand for organic foods – or to the farmer to take the plunge into the perceived unknown – for there to be a market considered worth the investment?
Latest figures
In late 2021, Bord Bia released new data on organic markets in Ireland and abroad. It shows an overall annual growth rate of 9% within Ireland with a projected market value of €370m by 2025.
The research also indicates strong growth in the UK and in Europe, where there has been a 56% growth in the market between 2015 and 2019. The EU market is currently led by Germany, France and the Nordic countries.
In terms of consumer willingness to purchase organic foods, the data shows that 70% of all age groups are willing to pay 5% more and 50% are willing to pay 10% more, but that drops down to 37% when asked if consumers would be willing to pay 15% more for organic foods.
At an October 2021 farm event (organised by the National Dairy Council, Glanbia and the European Milk Forum) in Kildare, a virtual question was put to Glanbia Co-op chair John Murphy about whether Glanbia would diversify into organic dairy processing.
John said they wouldn’t be developing an organic dairy section at this time because you would need “scale to make developing an organic section of the company work.”
ICL asked Glanbia if they saw potential in the organic market and a representative responded, saying:
“Glanbia Ireland already offers a range of organic oats for use in a wide variety of food ingredients from baked goods to desserts. It is a growth area, with increasing interest in the range from our customers.
“Glanbia Ireland constantly analyses food trends within key marketplaces to ensure we are best positioned to respond to consumer requirements. We have noted the sustained interest in organics in recent years, including policy changes on organic production, and it is an area that we are continuing to monitor.”
“There is undoubtedly a growing demand for organic produce on both the domestic and export markets, with recent research indicating continued stable growth in this demand in the years ahead,” says Bord Bia’s sheep meat sector manager Seamus McMenamin, who presented this new research at an Agricultural Science Association (ASA) webinar this past November.
Seamus McMenamin is sheep meat sector manager at Bord Bia and recently presented the latest research on the organic market in Ireland and the EU
“Ireland is self-sufficient for many categories of organic foodstuffs, such as meat, seafood and dairy. However, there is a very positive opportunity for us to expand the Irish share of organic sales in the cereals and fresh produce sectors.
“There are also growing opportunities for organic produce in key export markets such as Germany and the Nordics, where a growing demand for organic food will not be matched by domestic production.”
On the downside, Seamus says our current scale of production, consistency of supply and seasonality of production (in some categories) currently subdue these opportunities.
“A key focus moving forward should be an enhanced co-ordination of existing supply to minimise leakage of organic produce into the conventional sector,” he explains.
“In addition, the recent research indicates that organic status is increasingly not seen as enough in its own right, with consumers also reporting a strong preference for locally or more sustainably produced food. It is important for Irish organic produce to address these requirements to meet the needs of the marketplace.”
In terms of which farmers get the best price for their organic produce, Joe Kelleher says there is still too much of a variance, but there are ways around selling through the traditional routes.
“Direct selling to the consumer is quite common in organic production systems, and this is one way of extracting maximum value from the product,” he explains. “There is a cohort of farmers across all enterprises who are shortening the supply chain to their advantage.”
But the potential for making a good profit isn’t limited to smaller farm enterprises. When it comes to dairying, for example, there are untapped opportunities for both domestic and foreign markets.
“The Irish dairy industry has been hugely successful at exporting products – such as infant formula and butter – all over the world,” Joe says.
“We export almost €1bn worth of conventional butter to markets across the globe, yet we are importing organic butter to sell in Irish organic food outlets.
“We sell large quantities of infant formula to foreign countries, yet if you buy a tub of organic infant formula in an Irish supermarket, you are most likely buying French or Danish milk powder.”
Managing director of Good Herdsmen, John Purcell, recently announced that the organic meat processing company will begin paying a premium for organic certified dairy and suckler cows – not for beef, but for manufacturing purposes. Normally, cows from organic herds are sent through the conventional system for culling and farmers do not receive a premium.
“We’re divesting away a little bit from our core business, which is organic steer and heifer beef under 36 months,” he explains. “We’ve established some strong routes to market; particularly around Europe. We reckon there are 4,500 organic dairy cows [in Ireland], and with 25% replacement there are probably up to 1,500 cows available.
“[This] would be a separate business from our organic steer and heifer beef,” he continues. “We did some costings on it and are happy to announce we are starting to slaughter in APB Rathkeale from the middle of February onwards.”
Good Herdsmen are hoping to slaughter around 50 cows on a bi-weekly basis and will offer farmers a premium of 20c/kg above the price reported each week in the Irish Farmers Journal.
“This is a new venture for us,” he says, “this beef will not go into retail – it will be solely for manufacturers around Europe.”
Good Herdsmen will take suckler cows, as well. ABP Rathkeale isn’t accessible for many organic farmers, so the company will also arrange collection points in Drumshambo, Nenagh, Bansha and Macroom for farmers living in those regions.
To qualify, the cows have to have been born on a certified organic farm (meaning many older cows will not qualify) and they would have to have been born in Ireland.
Flahavan’s: we’re good, thanks
In 2021, Irish Country Living spoke with Flahavan’s director James Flahavan.
At that time, they were importing a large portion of their organic oats as they couldn’t find enough Irish organic farmers.
This year, it was reported that they had reached their requirements for 2022 and wouldn’t be taking on new organic farmers.
James Flahavan.
“We have had a record number of Irish organic oats growers supplying us in 2021, which we were delighted to see,” James says.
“We had even more enquiries to supply in 2022. We have accepted almost all of the applications for 2022 to meet the strong demand we have seen for Flahavan’s organic porridge oats. As things stand, it looks like our requirements will be met and we are not seeking more growers beyond this group. Anything past 2022, we will have to wait and see. If someone is hopeful to supply in the future, we are still open to them touching base with us.”
Teagasc to recruit new specialist
On Teagasc’s end, Joe tells Irish Country Living that there has been an increased focus to promote organic farming within the organisation over the past year. They have expanded their team of organic contact advisers, who can now be found in every Teagasc management unit around the country.
“These advisers are backed up by our specialist team – Elaine Leavy and myself,” he says.
“Elaine specialises in the organic drystock sector, while my focus area is on the promotion of organic dairy. The recruitment of a third specialist will commence before the end of this month, who will focus on organic tillage and horticulture.”
Demand is increasing and opportunities are present, but action needs to be taken to avoid leakage into the conventional market and to ensure organic farmers are receiving organic premiums
Read more
Organic Farming Scheme to reopen in early February
Almost 3,000t of organic grain and protein required as new feed mill to be built
Minister of State for Land Use and Biodiversity Pippa Hackett had hoped for the 2021 Government Organic Farming Scheme (OFS) to be fully subscribed. As it turned out, roughly 60% of places were filled in 2021.
Now, the Government is ready to reopen the scheme (planned for the second week of February) and say they are fully committed to developing the Irish organic sector.
“I am limited in the changes I can make at this stage, with a new CAP just around the corner, but I am doing what I can and am aiming to cater for different types of farmer,” Minister Hackett tells Irish Country Living in regard to the 2022 OFS.
“I am also engaging with Teagasc and the Agricultural Consultants Association (ACA) so that farm advisers will be able to support those who want to take advantage of going organic.”
Teagasc organic specialist Joe Kelleher says the biggest benefit of this year’s scheme, in his view, is that the two-year conversion period (while those in the scheme receive a max of €220/ha) will provide essential time for organisations – like Bord Bia – to diversify the current routes to market for organic producers.
Joe Kelleher (right) at Teagasc's recent organic dairy farm walk with farmer Kevin O'Hanlon.
“[For example], a beef farmer who joins the OFS in 2022 will not be able to sell their beef as organic until 2024,” he says. “This gives processors and other bodies two years to identify new markets for the beef that may come on stream.”
The max area for OFS payment has increased from 60ha to 70ha. In addition to the reopening of the OFS, the Organic Processing Investment Grant Scheme was opened on 1 February by Minister Hackett. This grant provides funding to processors who wish to invest in organic processing facilities. A total of €1.2m has been allocated to funding this scheme. Applicants can apply for grant aid for off farm investments up to €700,000.
Is there a market?
There has been much discussion about what kind of market there is for the Irish organic sector. For many larger agri processors, current demand for organics is not enough to make them want to diversify into organics. However, most organic processors, say the opposite – that they need more farmers to convert to meet their demand.
We also can’t ignore the fact that many organic beef and lamb farmers fail to get a premium price for their product and end up selling their meat through conventional systems. Nationwide access to the market remains an issue.
But is it really up to end consumers to drive demand for organic foods – or to the farmer to take the plunge into the perceived unknown – for there to be a market considered worth the investment?
Latest figures
In late 2021, Bord Bia released new data on organic markets in Ireland and abroad. It shows an overall annual growth rate of 9% within Ireland with a projected market value of €370m by 2025.
The research also indicates strong growth in the UK and in Europe, where there has been a 56% growth in the market between 2015 and 2019. The EU market is currently led by Germany, France and the Nordic countries.
In terms of consumer willingness to purchase organic foods, the data shows that 70% of all age groups are willing to pay 5% more and 50% are willing to pay 10% more, but that drops down to 37% when asked if consumers would be willing to pay 15% more for organic foods.
At an October 2021 farm event (organised by the National Dairy Council, Glanbia and the European Milk Forum) in Kildare, a virtual question was put to Glanbia Co-op chair John Murphy about whether Glanbia would diversify into organic dairy processing.
John said they wouldn’t be developing an organic dairy section at this time because you would need “scale to make developing an organic section of the company work.”
ICL asked Glanbia if they saw potential in the organic market and a representative responded, saying:
“Glanbia Ireland already offers a range of organic oats for use in a wide variety of food ingredients from baked goods to desserts. It is a growth area, with increasing interest in the range from our customers.
“Glanbia Ireland constantly analyses food trends within key marketplaces to ensure we are best positioned to respond to consumer requirements. We have noted the sustained interest in organics in recent years, including policy changes on organic production, and it is an area that we are continuing to monitor.”
“There is undoubtedly a growing demand for organic produce on both the domestic and export markets, with recent research indicating continued stable growth in this demand in the years ahead,” says Bord Bia’s sheep meat sector manager Seamus McMenamin, who presented this new research at an Agricultural Science Association (ASA) webinar this past November.
Seamus McMenamin is sheep meat sector manager at Bord Bia and recently presented the latest research on the organic market in Ireland and the EU
“Ireland is self-sufficient for many categories of organic foodstuffs, such as meat, seafood and dairy. However, there is a very positive opportunity for us to expand the Irish share of organic sales in the cereals and fresh produce sectors.
“There are also growing opportunities for organic produce in key export markets such as Germany and the Nordics, where a growing demand for organic food will not be matched by domestic production.”
On the downside, Seamus says our current scale of production, consistency of supply and seasonality of production (in some categories) currently subdue these opportunities.
“A key focus moving forward should be an enhanced co-ordination of existing supply to minimise leakage of organic produce into the conventional sector,” he explains.
“In addition, the recent research indicates that organic status is increasingly not seen as enough in its own right, with consumers also reporting a strong preference for locally or more sustainably produced food. It is important for Irish organic produce to address these requirements to meet the needs of the marketplace.”
In terms of which farmers get the best price for their organic produce, Joe Kelleher says there is still too much of a variance, but there are ways around selling through the traditional routes.
“Direct selling to the consumer is quite common in organic production systems, and this is one way of extracting maximum value from the product,” he explains. “There is a cohort of farmers across all enterprises who are shortening the supply chain to their advantage.”
But the potential for making a good profit isn’t limited to smaller farm enterprises. When it comes to dairying, for example, there are untapped opportunities for both domestic and foreign markets.
“The Irish dairy industry has been hugely successful at exporting products – such as infant formula and butter – all over the world,” Joe says.
“We export almost €1bn worth of conventional butter to markets across the globe, yet we are importing organic butter to sell in Irish organic food outlets.
“We sell large quantities of infant formula to foreign countries, yet if you buy a tub of organic infant formula in an Irish supermarket, you are most likely buying French or Danish milk powder.”
Managing director of Good Herdsmen, John Purcell, recently announced that the organic meat processing company will begin paying a premium for organic certified dairy and suckler cows – not for beef, but for manufacturing purposes. Normally, cows from organic herds are sent through the conventional system for culling and farmers do not receive a premium.
“We’re divesting away a little bit from our core business, which is organic steer and heifer beef under 36 months,” he explains. “We’ve established some strong routes to market; particularly around Europe. We reckon there are 4,500 organic dairy cows [in Ireland], and with 25% replacement there are probably up to 1,500 cows available.
“[This] would be a separate business from our organic steer and heifer beef,” he continues. “We did some costings on it and are happy to announce we are starting to slaughter in APB Rathkeale from the middle of February onwards.”
Good Herdsmen are hoping to slaughter around 50 cows on a bi-weekly basis and will offer farmers a premium of 20c/kg above the price reported each week in the Irish Farmers Journal.
“This is a new venture for us,” he says, “this beef will not go into retail – it will be solely for manufacturers around Europe.”
Good Herdsmen will take suckler cows, as well. ABP Rathkeale isn’t accessible for many organic farmers, so the company will also arrange collection points in Drumshambo, Nenagh, Bansha and Macroom for farmers living in those regions.
To qualify, the cows have to have been born on a certified organic farm (meaning many older cows will not qualify) and they would have to have been born in Ireland.
Flahavan’s: we’re good, thanks
In 2021, Irish Country Living spoke with Flahavan’s director James Flahavan.
At that time, they were importing a large portion of their organic oats as they couldn’t find enough Irish organic farmers.
This year, it was reported that they had reached their requirements for 2022 and wouldn’t be taking on new organic farmers.
James Flahavan.
“We have had a record number of Irish organic oats growers supplying us in 2021, which we were delighted to see,” James says.
“We had even more enquiries to supply in 2022. We have accepted almost all of the applications for 2022 to meet the strong demand we have seen for Flahavan’s organic porridge oats. As things stand, it looks like our requirements will be met and we are not seeking more growers beyond this group. Anything past 2022, we will have to wait and see. If someone is hopeful to supply in the future, we are still open to them touching base with us.”
Teagasc to recruit new specialist
On Teagasc’s end, Joe tells Irish Country Living that there has been an increased focus to promote organic farming within the organisation over the past year. They have expanded their team of organic contact advisers, who can now be found in every Teagasc management unit around the country.
“These advisers are backed up by our specialist team – Elaine Leavy and myself,” he says.
“Elaine specialises in the organic drystock sector, while my focus area is on the promotion of organic dairy. The recruitment of a third specialist will commence before the end of this month, who will focus on organic tillage and horticulture.”
Demand is increasing and opportunities are present, but action needs to be taken to avoid leakage into the conventional market and to ensure organic farmers are receiving organic premiums
Read more
Organic Farming Scheme to reopen in early February
Almost 3,000t of organic grain and protein required as new feed mill to be built
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