Oireachtas Joint and Select Committees

Tuesday, 28 March 2017

Joint Oireachtas Committee on Agriculture, Food and the Marine

Organic Farming Sector: Discussion

4:00 pm

Ms Helen Scully:

Absolutely. I shall quickly go through the challenges we perceive to the development of Ireland's organic sector. There is a blurring of the identity of organic products against the backdrop of perceived naturally produced food, chemical and fertiliser-free food etc. These are all unsubstantiated claims which have no basis whatsoever in law compared with organic production which is legislatively controlled from field to fork. Very significant opportunities are available to increase the sales of Irish organic produce at home and abroad.  To avail of these opportunities, however, it is vital that the momentum in interest by those wishing to convert to organic production is nurtured and maintained. New operators are the lifeblood of any industry and must be encouraged and accommodated.  The reopening of the organic farming scheme and the political will to allocate an additional budget to facilitate this is a prerequisite to this requirement. To sustain sectoral growth we suggest an additional budget of between €15 million and €20 million to be allocated to the end of the current rural development programme for organic production to fulfil the same. In other EU member states studies have indicated that there is a direct correlation between the amount of government support for the organic sector and the success of that sector, with Denmark, Holland, Germany and Italy being prime examples.

The Organic Trust fully supports the organic farming scheme, OFS, as a production-based scheme with the aim of increasing the amount of organic produce placed on the market. The Department of Agriculture, Food and the Marine has invested significantly in the development of the organic sector, particularly over the past number of years. However, if this investment is to be realised through world sales of organic produce, it is essential that the momentum be continued. A claim was made that a significant number of operators exit the scheme after an initial five-year contract. However, of those whose OFS contracts expired on 31 December 2016, more than 90% signed up to the contract extension.

We feel that Ireland must garner the environmental benefits of organic farming and realise its potential in terms of a reduction in CO2 emissions and other environmental obligations. Denmark in particular has used organics to address a range of environmental issues successfully and Ireland could benefit hugely from its expertise in this area. We feel that this is a win-win scenario. Ireland needs a critical mass of organic operators in order that it can compete on the world stage. A stop-start scenario to the progression of the sector does not imbue confidence either in the market or in the farming community. The organic sector requires ongoing support to achieve entry to new markets, particularly in light of Brexit, where alternative markets must be developed.

At no other time in the 25 years in which we have been involved in certification has there been such an appetite within the supermarket and retail communities to give store space to organic food. All of these entities are veering towards organic and healthy foods and are willing to place the store space at the disposal of the organic community. Retailers, both domestically and internationally, see the organic sector as an area of increased demand by consumers and we need to encourage and grow our base in a systematic and proportional way. Otherwise, foreign imports will snap up this space and fill the vacuum.

A new organic aid scheme has recently been launched in Northern Ireland and we need to be careful that they do not avail of the opportunities that organic producers in the Republic ought to be availing of. The main processors continue to look for additional supplies of home-produced food and we must support that. In other member states, it has been specifically proven that including even a small element of organic produce in public procurement contracts has been the single most significant driver in the development of the industry in those countries. Organics can be used as a main player in the revitalisation of rural communities through ongoing support for organic farming and processing by having a viable option available to bring people back to the communities they had to leave behind due to the economic downturn.

It is our view that the adverse publicity relating to payment delays to organic farmers could become a serious disincentive to potential operators to convert. Therefore, as we said earlier, it is something that we feel needs to be addressed urgently. As indicated earlier, the Organic Trust is requesting the establishment of a consultation process for all of these so that they can be progressed.

Ireland has an unrivalled reputation for the production of an excellent standard of organic food. It is vital that the high standards of organic production operated to date are not diluted for any perceived short-term gain. Analyses of Irish-produced organic produce has been the cornerstone in the awarding of lucrative contracts to Irish organic processors. It is vital to remember that the most important entity in all of this is the consumer. No consumer group has been seeking less regulation and no consumer group has been seeking a dilution of standards. All consumer groups are seeking ongoing assurances that the organic produce they purchase is worthy of the organic logo of integrity. We feel that an annual inspection is not an onerous obligation on organic operators and the consumer is comforted by the knowledge that such regular inspections take place. The comment was made that by and large, organic operators in Ireland are compliant and the Organic Trust is of the view that this is directly attributable to the system that exists.