Organic producers looking ahead in 2022

By Adam Peleshaty
Glacier FarmMedia staff

While there was little price movement for crops as the calendar turned to 2022, demand for organics in Western Canada remained strong and some crops grew their price premiums over conventionals going into the New Year.

• Organic price quotes: Late January

“The organic market is finally starting to pick up a little bit,” said Scott Shiels of Grain Millers Inc. in Yorkton, Sask. “There’s a strong market for oats, a strong market for flax. It sounds like there are some buyers out there finally getting involved and buying some wheat…With old crop having tight supply, prices are strong. Now, growers are starting to shop for new crop and buyers are starting to compete for those acres.”

Prices for conventional crops in Western Canada were elevated due to tight supply and organics were no different. Most organic crops rose in price compared to December, but only some of them saw their premiums go up. Feed and hard red wheat’s premiums increased to 127 and 196 per cent, respectively. Mustard and French green lentils also rose in premiums, but high performing crops such as oats and flax saw theirs decrease.

There are some decent prices out there, but the farmers are waiting to see what the spring is going to hold. – Jason Breault

Jason Breault of RW Organics in Mossbank, Sask. believes many farmers are hanging onto old crop and holding out for future price hikes.

“There are some decent prices out there, but the farmers are waiting to see what the spring is going to hold,” he said. “Prices are definitely up from fall, but farmers think they’re going to hit the sky. I think there’s a happy medium somewhere in my opinion.”

Both Shiels and Breault agree that demand for organic crops remains strong, although the latter noted he hasn’t seen any new demand due to rising conventional prices. Whether producers can come close to filling that demand depends on precipitation from now until summer, and snow cover has varied from plenty in southern Manitoba to very little in southern Alberta.

“We’ve got more snow here in Yorkton than probably in the last 20 years,” said Shiels.

“We have snow (in Mossbank), but you can see the fields and everything. The drought touched more than the snow has touched,” Breault added.

In our market, we’re having lots of success marketing domestic production. – Jason Freeman

As consumers look for more food options at grocery stores, there will be greater demand for organics, according to Jason Freeman, chief executive officer of Farmer Direct Organic in Moose Jaw, Sask. He believes prices will stay high through the next harvest and the days of oats being worth C$6/bu. are now in the past.

“In our market, we’re having lots of success marketing domestic production. The whole plant-based trend is positively affecting demand for organic pulses and grains, specifically legumes and oats,” he said, adding that his company is sold out of grains that are Regenerative Organic Certified (ROC), a certification established in 2017 meeting high standards in soil health, animal welfare and social fairness.

This year, Farmer Direct Organic has also given farmers free ROC oat planting seed, which eventually sold out. The company will also start testing crops for glyphosates and 240 other synthetics to prevent the sale of fraudulent imports.

“We want farmers to plant in a gluten-free rotation and often planting seed is really important. It has to come from a clean source,” said Freeman. “It’s a huge economic benefit for the farmer and the prices are really good.”

The organic market in both Western Canada and Ontario is expected to remain steady over the next month, according to buyers.

“We could see C$30/bu. wheat. We’ve historically seen that, but the market has been pretty sticky right now and farmers are happy with the prices,” Freeman explained. “It depends if buyers are covered. If they aren’t, we’re going to see (price) spikes.”