ORGANIC CONSUMERS, MARKETS AND OPPORTUNITIES IN CANADA Presentation to TFO Canada Trade Representative Seminar Nathalie Doré June 4, 2009 Agriculture & Agri-Food Canada
Today Organic Production Consumer Preferences Canadian Market Import Data
Number of Certified Organic Producers in Canada Certified Organic Farms in Canada 1992-2007 4000 3500 3 782 3000 2500 2000 1500 1000 500 0 92 93 94 95 95 97 98 99 00 01 02 03 04 05 06 07 Source : Anne Macey for Canadian Organic Growers, 2008
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)
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)
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
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.
Canadian Organic Market Overview (2006) Fastest growing food segment: 28% in 2006 Organic retail sales: $1.3B in 2006 (1% of total food sales) $586.3M through mainstream supermarkets/conventional retail Marketing channels for organics Mainstream supermarkets (41%) Natural/health food stores, food service (33%) Direct sales from farmers/distributors (24%) Source: AC Neilson Canada: Review of Certified Organic Grocery Food F Products at Retail in Canada, 2006.
Canadian Organic Market Overview (2006) Packaged and Prepared Food 15% Dairy & Eggs 13% Source : AC Neilson Canada: Review of Certified Organic Grocery Food Products at Retail in Canada. Prepared for Organic Agriculture Centre of Canada, 2006.
Certified Organic Largest Sales Categories ($ 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 $0 Fresh Carrots Salads - Bagged Soya Drinks Yogurt RTE Cereals Cooking Oils Tea Juices/Drinks - Stable Soup Bread - Commercial Snack Foods Eggs Coffee - Roast & Ground Milk Broad -Leaf Vegetables - Bagged Tofu Products Cookies Juices/Drinks - Refrigerated Peanut Butter Hot Cereals Source: AC Neilson Canada: Review of Certified Organic Grocery Food Products at Retail in Canada. Prepared for Organic Agriculture Centre of Canada, Nov/06. 10
Canadian Organic Market Overview (2006) Category Growth Fruits & Vegetables 33% Packaged and prepared foods 30% Dairy & eggs 29% Beverages 24% Bread & grains 15% 5 categories contain the majority of pre-packaged food items sold on supermarket shelves (source: AC Neilson): Tea Dry pasta Spices Coffee Ready-to-eat cereal Source : AC Neilson Canada: Review of Certified Organic Grocery Food Products at Retail in Canada. Prepared for Organic Agriculture Centre of Canada, 2006.
Canadian Organic Imports HS CODE: VALUE ($ Can) Various 2006 2007 2008 2009-Mar TOTAL: 108 619 457 181 870 326 290 637 003 157 895 096 United States 64 835 925 121 708 898 223 676 189 79 971 195 Chile 16 711 066 10 394 750 15 951 182 20 650 974 Mexico 11 143 373 15 240 520 15 743 704 11 204 497 Ecuador 112 7 028 492 9 725 015 3 846 134 Argentina 12 541 236 11 258 553 6 064 694 185 080 Colombia 1 388 4 881 599 5 342 299 17 992 803 Costa Rica 4 624 2 303 345 1 881 708 2 108 750 China, P. Rep. 0 340 911 1 760 215 445 642 New Zealand 241 243 683 843 1 536 054 76 216 Uruguay 309 656 282 089 1 499 956 1 640 Peru 182 199 1 049 130 1 398 175 3 444 837 Italy 19 328 155 585 1 263 457 2 184 340 Netherlands 0 651 802 870 128 143 497 Guatemala 5 535 164 906 734 874 6 074 933 Israel 15 880 420 759 710 016 350 069 Brazil 1 897 068 1 088 221 491 776 6 916 826 Spain 223 274 976 312 374 004 247 935 South Africa 459 080 2 698 771 332 889 1 114 182 Dominican Rep. 19 500 472 151 296 748 154 600 Japan 6 195 1 491 231 468 129 220 India 1 409 43 393 224 617 472 263 Sri Lanka 0 2 299 203 444 134 371 Germany 0 0 189 683 9 984 Morocco 1 366 22 506 134 708 35 108
Top 6 Organic Imports (2008) Product (HS Code) 2008 (Value $Can) Blueberries, cultivated, fresh, in their natural state (0810.401022) 35 815 692,00 Bananas, fresh, including plantains (0803000011) 19 268 537,00 Tomato sauces (2103209091) 15 644 840,00 Lemon, fresh (0805500011) 12 972 434,00 Carrots, fresh or chilled (0706104010) 9 620 460,00 Lettuce, fresh or chilled, various formats (various codes) 15 644 840,00 List of Certified Organic Commodity Harmonized Import Codes: http://www4.agr.gc.ca/aafc-aac/display-afficher.do?id=1199997881628&lang=eng
Resources Organic Trade Association Canada http://www.ota.com/otacanada.html Canadian Organic Growers http://www.cog.ca/ Organic Agriculture Centre of Canada http://www.organicagcentre.ca/ Agriculture and Agri-Food Canada http://www4.agr.gc.ca/aafc-aac/display AAC/display- afficher.do?id=1183748510661&lang=eng
Information Nathalie Doré Market Development Officer (Organics) Agriculture and Agri-Food Canada Tel.: (514) 315-6175 Nathalie.dore@agr.gc.ca