ORGANIC CONSUMERS, MARKETS AND OPPORTUNITIES IN CANADA

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1 ORGANIC CONSUMERS, MARKETS AND OPPORTUNITIES IN CANADA Presentation to TFO Canada Trade Representative Seminar Nathalie Doré June 4, 2009 Agriculture & Agri-Food Canada

2 Today Organic Production Consumer Preferences Canadian Market Import Data

3 Number of Certified Organic Producers in Canada Certified Organic Farms in Canada Source : Anne Macey for Canadian Organic Growers, 2008

4 Canadian Organic Consumers Changing attitudes about food and health Health concerns (pesticides, hormones, antibiotic) Food safety concerns (E-coli, mad cow disease, GMOs) Environmental concerns Incline to pay a premium between 25% and 40% Source : Farm to Fork Organics in Alberta (2007)

5 Consumer Overview Profile of Canadian Organic Consumers Heavy buyer (23%) University degree High household income (more than $80, 000) Between 45 and 55 years of age, with children Light buyer (27%) Women with children Testing the organic market Health concerns over environmental concerns Source : Farm to Fork Organics in Alberta (2007)

6 Consumer Overview First Area of Adoption Second Area of Adoption Third Area of Adoption Fourth Area of Adoption Produce, Dairy, Meat/Poultry, Baby food Eggs, Cold cereal Soymilk, Bread Tomato-based prods Snacks, Frozen foods, Juice, Prepared foods Deserts, Coffee, Tea, Bulk foods, Fibers, Health & beauty

7 Canadian Organic Market Overview 2007 AAFC Study on Canadian consumers perceptions of domestic products About 50% have strong willingness to buy domestic products, including organic Especially true for fresh products Preference for local not as strong for processed products as fresh, but prefer Cdn processed products over imported.

8 Canadian Organic Market Overview (2006) Fastest growing food segment: 28% in 2006 Organic retail sales: $1.3B in 2006 (1% of total food sales) $586.3M through mainstream supermarkets/conventional retail Marketing channels for organics Mainstream supermarkets (41%) Natural/health food stores, food service (33%) Direct sales from farmers/distributors (24%) Source: AC Neilson Canada: Review of Certified Organic Grocery Food F Products at Retail in Canada, 2006.

9 Canadian Organic Market Overview (2006) Packaged and Prepared Food 15% Dairy & Eggs 13% Source : AC Neilson Canada: Review of Certified Organic Grocery Food Products at Retail in Canada. Prepared for Organic Agriculture Centre of Canada, 2006.

10 Certified Organic Largest Sales Categories ($ Millions) National Grocery Supermarket Banners - 52 Weeks Ending August 5, 2006 $50 $45 $40 $35 $30 $45.6 $28.5 Certified Organic Market TOP 20 Largest Organic Food Categories $25 $20 $22.9 $21.7$20.7$20.1 $18.3 $15 $10 $5 $9.9 $9.3 $8.2 $7.0 $5.9 $5.1 $4.2 $4.4 $3.7 $3.3$3.3 $3.1 $3.1 $0 Fresh Carrots Salads - Bagged Soya Drinks Yogurt RTE Cereals Cooking Oils Tea Juices/Drinks - Stable Soup Bread - Commercial Snack Foods Eggs Coffee - Roast & Ground Milk Broad -Leaf Vegetables - Bagged Tofu Products Cookies Juices/Drinks - Refrigerated Peanut Butter Hot Cereals Source: AC Neilson Canada: Review of Certified Organic Grocery Food Products at Retail in Canada. Prepared for Organic Agriculture Centre of Canada, Nov/06. 10

11 Canadian Organic Market Overview (2006) Category Growth Fruits & Vegetables 33% Packaged and prepared foods 30% Dairy & eggs 29% Beverages 24% Bread & grains 15% 5 categories contain the majority of pre-packaged food items sold on supermarket shelves (source: AC Neilson): Tea Dry pasta Spices Coffee Ready-to-eat cereal Source : AC Neilson Canada: Review of Certified Organic Grocery Food Products at Retail in Canada. Prepared for Organic Agriculture Centre of Canada, 2006.

12 Canadian Organic Imports HS CODE: VALUE ($ Can) Various Mar TOTAL: United States Chile Mexico Ecuador Argentina Colombia Costa Rica China, P. Rep New Zealand Uruguay Peru Italy Netherlands Guatemala Israel Brazil Spain South Africa Dominican Rep Japan India Sri Lanka Germany Morocco

13 Top 6 Organic Imports (2008) Product (HS Code) 2008 (Value $Can) Blueberries, cultivated, fresh, in their natural state ( ) ,00 Bananas, fresh, including plantains ( ) ,00 Tomato sauces ( ) ,00 Lemon, fresh ( ) ,00 Carrots, fresh or chilled ( ) ,00 Lettuce, fresh or chilled, various formats (various codes) ,00 List of Certified Organic Commodity Harmonized Import Codes:

14 Resources Organic Trade Association Canada Canadian Organic Growers Organic Agriculture Centre of Canada Agriculture and Agri-Food Canada AAC/display- afficher.do?id= &lang=eng

15 Information Nathalie Doré Market Development Officer (Organics) Agriculture and Agri-Food Canada Tel.: (514)

Schedule of Accreditation issued by United Kingdom Accreditation Service 2 Pine Trees, Chertsey Lane, Staines-upon-Thames, TW18 3HR, UK

Schedule of Accreditation issued by United Kingdom Accreditation Service 2 Pine Trees, Chertsey Lane, Staines-upon-Thames, TW18 3HR, UK Accredited to ISO/IEC 17021-1:2015 to provide Food Safety Unit 23 Hanborough Business Park Long Hanborough Oxford OX29 8SJ Contact: Mrs E Matthee Tel: +44 (0)1993 885600 Fax: +44 (0)1993 885603 Email: