No surprise over drop in numbers entering Organic Farming Scheme

Numbers entering the Organic Farming Scheme (OFS) have reduced from 180 valid applicants in 2012 to 105 this year, according to figures from the Department of Agriculture, Food and Forestry.

The OFS for 2013 closed for applications on May 15. The department is still processing applications. The eventual figure may differ from the 105 successful applicants processed so far. Those within the organic sector are not surprised by the figures.

“This is a funny year because of the Cap reforms,” said Grace Maher of the Irish Organic Farmers and Growers Association (IOFGA). “People are waiting to see if they will get a better deal after the Cap reforms before deciding whether or not to go into organic.

“Every year, about 50 or 60 people leave the scheme, but overall the numbers in organic farming have been steadily rising since 2004/05. In Ireland, direct sales of organic food were actually up by around 3% last year.

Organic food accounts for a relatively small, but stable, share of the Irish food market, making up around 1.3% of the total output. The sales figures have also dipped a little since the boom times, but not significantly.

Organic farming has more or less retained its share of the organic food retail market in Ireland. It stood at €99m for the 12-month period to the end of Feb 2013. It was just over €104m in 2012, and totalled €105.5m during 2011.

“Every year, we do get a few people who drop out of organic farming, older farmers who decide to leave, but we generally see more people coming in to replace them,” added Grace Maher.

“Numbers have been fairly steady, and the recession has not had any huge impact in terms of the numbers entering or leaving the sector. The vast majority of people say they have retained their end of the organic market.”

In the year to date, partly helped by the horsemeat scandal, Irish organic sales increased by 6% at retail level. The Irish organic sector looks stronger when compared with overseas markets. It compares very favourably, for instance, with Britain.

Figures from the Department for Environment, Food and Rural Affairs in Britain show that farmland being devoted to organic food in Britain is down by around 20% versus the organic boom year of 2008.

British farmers dramatically reduced the amount of land they set aside for organic crops and livestock last year to 605,329 hectares. This is the smallest area since Britain’s records began in 2002.

Britain’s organic sales have also seen considerable fluctuation of late. Having begun 2000 selling Stg£800,000 (€942,000), British organic sales soared to around £2.1bn (€2.47bn) in 2008.

In 2012, the figure dipped back to £1.64bn (€1.93bn).

Figures issued by Kantar Worldpanel showed that sales through British supermarkets actually increased by 1.6% during May, representing the first sales increase of the year.

Analysts in Britain have suggested that this 1.6% sales increase was due to the horsemeat scandal, with some consumers placing greater trust in organic products.

With factory beef prices regularly reaching and exceeding €5/kg, Irish organic beef farmers are also enjoying favourable returns at present.

IOFGA general manager Gillian Westbrook said: “Demand for Irish organic produce continues to rise, and with beef prices currently at around €5/kg, there is a growing confidence and stability within the sector. The Organic Farming Scheme (OFS) is pivotal for the development of organic farming.

“We are delighted to have the continued support of the OFS as we want to encourage farmers to participate in the ultimate sustainable low-input farming system, and thereby deliver on the core objectives of the Cap.”