Canadian organic sector worried about possible Trump tariffs

Members of Canada’s organic food sector came together at separate events in November, but potential developments south of the border became the main focus near the end of the month.

United States President-elect Donald Trump threatened to impose 25 per cent tariffs on imports from Canada and Mexico when he takes office in January unless both nations tightened their respective borders. With the U.S. being Canada’s largest trading partner, the announcement caused a shockwave in the agricultural sector, including organic growers.

Tia Loftsgard, executive director of the Canada Organic Trade Association (COTA), said while negotiations for the Canada-U.S.-Mexico Agreement will take place in 2025, organic equivalency trade agreements between the three nations will also be up for renewal.

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“We really want to make sure one agreement is not going to be used as leverage over the other arrangement. (We want to) make sure people are being fair in the process and not negotiating with sticks instead of carrots,” she said. “We just want a fair process with regards to whatever process is going to happen between our two governments.”

Ken Richmond, a St. Andrews, Man.-based conventional grain farmer and procurement manager for O&T Farms in Regina, said the possibility of tariffs is more real than it was during Trump’s first term from 2017 to 2021 due to Republicans having control of the House of Representatives and the Senate this time around.

“As far as organic farmers (are concerned) in Western Canada, I think this may be detrimental to them. It shuts them out of a market down there. They either have to take less money or sit on (their crops),” he said. “I don’t think the supplier has to eat (the price increases). I think the buyer has to eat it. Will the supplier cut back? I don’t know. It’s a juggling act right now.”

Canada’s organic sector already had a lot on its mind even before Trump threatened tariffs.

COTA hosted the Organic Summit, its annual flagship event in Ottawa on Nov. 18, bringing together farmers, processors and policy-makers to advance the sector. Loftsgard said there were also two sessions on U.S. trade in advance of the incoming administration south of the border. On Nov. 19, Parliament Day took place where members of Canada’s organic industry met with approximately 50 MPs and representatives from Agriculture and Agri-Food Canada.

While topics such as growth, sustainability, trade and declines in the number of organic producers were discussed, better data collection was also highly important. Without it, Loftsgard said, it will be difficult to show potential stakeholders the benefits of organic products.

“When we don’t have the data, we don’t have the pricing and we don’t have the information for farmers and manufacturers to be able to show to their banks the long-term trajectory is very rosy. There is data from the U.S. showing that suggests that organic is going to triple over the next 10 years,” she added. “They need the information now to stay steady for the moment.”

The Organic Connections conference and trade show took place in Saskatoon on Nov. 6 and 7 while also celebrating its 20th year in existence. More than 50 exhibitors participated in the event as well as speakers from various organizations and businesses.

Organic Connections president Marla Carlson said topics at the conference “ran the gamut” from agronomics to the holistic effects of organic agriculture.

“At a lot of farming conferences, (you ask yourself), ‘How can I improve on what I’m doing?’ or ‘What’s the latest in ag technology?’” she said. “We’re looking forward to how we maintain producer numbers in the sector.”