Slow markets as harvests progress

By Adam Peleshaty
Glacier FarmMedia staff

As harvesting operations continue in Western Canada and Ontario, organic growers are seeing satisfactory crop conditions. However, high prices relative to conventional crops have hindered demand.

“Yields, so far, have been from average to above-average. I think the organic crop, at least from what we’ve seen harvested so far, is probably better overall in quality and yield expectations than the conventional crops we’ve seen so far,” said Scott Shiels, grain procurement manager at Grain Millers Inc. in Yorkton, Sask.

• RELATED: Organic prices for late September

While demand has been flat in the early stages of fall, some say it should pick up after harvests are complete.

A consumer only has so many dollars to go around and with everything up, I think they’ve decided to put their money towards other groceries. – Scott Shiels

“I haven’t heard of any new crop prices (for organic flax). There haven’t been any offers as of yet. I know there are bids out there … but I don’t know if they’ve bought any or not,” said Ken Richmond, a St. Andrews, Man.-based conventional grain farmer and procurement manager for O&T Farms in Regina.

“A consumer only has so many dollars to go around and with everything up, I think they’ve decided to put their money towards other groceries. We haven’t seen any demand picked up … If the yields are down, that might bump (prices) a buck or two.”

Jason Breault, general manager of RW Organic near Mossbank, Sask., saw mostly average yields and good crop conditions this year, commenting that spring wheat “held up well”. However, he said conventional grain markets are starting to “come bite us.”

“(They’re) so low. Our prices are still double (those of conventionals), which they need to be. But there’s C$6 (per bushel) wheat for conventional and C$17, C$17.50 for ours,” he said. “I could see 50 cents coming down (in the near future), but I think this is where we’ll be for the time being.”

Richard Reimer, the Winnipeg-based director of procurement and farm brokering for Regina’s Grasslands Brokerage and Consulting Ltd., recalled seeing lentil crops struggle this year. He also saw the spread between organics and conventionals grow as well.

“The conventional markets have markets for the majority of what producers are growing. For the organic market, we’re starting to see major markets for a select number of commodities, which is kind of hurting other producers’ ability to grow multiple crops throughout the year in a three- or four-year rotation,” Reimer explained.

In Ontario, producers reported supportive growing conditions and satisfactory yields. Dean Martin of Harrow Organic Farms in Harrow and Pelee Island, Ont. saw variable conditions across southern Ontario and expects to see average crops.

I talked to marketers a week ago and they’re thinking it may get a little worse before it improves. – Dean Martin

While he is still selling old crop corn and described the food-grade organic soybean market as “non-existent”, organic markets in the province may stay slow for a little while longer.

“I talked to marketers a week ago and they’re thinking it may get a little worse before it improves. That’s kind of how organic works. It will turn around before you realize it’s doing better, but it moves very quickly. But I would say there’s not anticipated (price change) in the near future,” said Martin, who is also the board treasurer for the Organic Council of Ontario (OCO).

Harro Wehrmann of Wehrmann Grain and Seeds in Ripley, Ont. said soybeans, corn and sunflowers are the only crops left to be harvested. He added that while organic feed grain markets are slow, specialty crops are doing well.

“For feed grains, we are definitely seeing a premium of much less than 100 per cent,” Wehrmann said. “There will be price pressure until the main Ontario crops come off. Then we’ll wait and see how the U.S. market fares.”

The OCO is expected to name its new executive director in the days ahead.

The organization also recently sent a letter to federal Agriculture Minister Lawrence MacAulay as well as Ontario Agriculture Minister Lisa Thompson asking the food supplied through the newly-unveiled National Food School Program be at least 10 per cent organic, matching the level in other countries.

“We’re making sure the food that goes into the programs is nutrient-dense and comes from organic sources that support the community as well as the health of students,” said OCO board member Ian Anderson.

The Canada Organic Trade Association (COTA) released its 2023 data in August, reporting total sales of C$9.01 billion for organic products, of which C$7.18 billion were for food and beverages.

Canada exported C$684.6 million of organic products, up 23 per cent from 2022, while also importing C$871.5 million, down 6.8 per cent from the previous year. The U.S. exported C$344.8 million of organic goods into Canada.

There were 7,558 certified organic operations in Canada in 2023, down 3.7 per cent from 2022. However, the number of certified aquaculture operators nearly doubled to 92. In terms of acres, certified organic area totaled 3.18 million, up 0.8 per cent from 2022.