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Trade News

Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.

 

Cost-Benefit Analysis of the Effects of Federal Regulation for Organic Products

Tuesday, September 12, 2006 > 11:08:18
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(Canadian Food Inspection Agency -  i.e. Canada News Article)


The Organic Food Sector in Canada

In terms of the global food industry, the organic food market is considered by industry analysts as the most dynamic and rapidly growing sector. Canada has made modest gains in this area in the last two decades but in recent years has seen a dramatic growth of the market spurred by increased consumption. Canadian consumers are turning to these products for a variety of reasons, including dealing with allergies, the raising of young children and a renewed interest in healthy lifestyle choices.

Organic foods are considered to be products which do not employ pesticides or synthetic fertilizers, hormones and antibiotics, and do not involve technologies such as genetic engineering or radiation.

From a statistical point of view, the current state of the organic food sector in Canada is as follows:

·         In 2003 Canadian organic retail trade stood at about $986.0 million, or about 1.6% of total Canadian food purchases ($1,721.4 million, estimated for 2005). About 25.1% of domestic final demand is supplied by domestic production.

·         Domestic consumption, at final demand prices, is estimated to grow by about 20.6% per year, 2006 - 2015.

·         Exports in 2003 stood at about $63.1 million (CIF) was exported ($71.9 million (CIF) estimated for 2005).

·         From 1992 - 2001 the number of organic farms grew 13.7% per year. During 2001 - 2003, growth slowed to 1.3% per year. In 2003, the total number of certified producers was 3,317. They account for 1.3% of all farms in Canada. There were also 248 farms in transition to organic production.

·         In 2003 sales at farm gate prices were about $200.12 million ($350.9 million, estimated for 2005)

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