Posted on July, 8, 2024 at 09:46 am
A report mapping the organic corn and wheat supply chains in Ontario has been released by the Organic Council of Ontario (OCO) in partnership with the Organic Grain Hub. The report was one of three funded in part by the Ontario Ministry of Agriculture, Food and Rural Affairs’ Supply Chain Stability and Adaptability program administered by the Agriculture Adaptation Council.
“This is the first report of its kind” said Carolyn Young, OCO’s Executive Director. “Without deep investigation like this, the organic sector lacks real data that we need to help the sector thrive.”
The report found that amid growing global demand for organic products, specific organic value chains lack diversified channels and may be vulnerable to shifts in the marketplace.
“Most of the organic wheat grown in Ontario is for domestic use,” says Rob Wallbridge OCO board member and agronomy sales lead at SureSource Commodities, one of the industry experts consulted for the report. “But with bakeries and millers struggling, some high-quality organic wheat is going to animal feed or to Québec. About one-third of organic corn is exported to feed mills in New York and Pennsylvania. If the US becomes self-sufficient in organic grains, finds cheaper imports, or US organic meat consumption drops, Canadian suppliers will have limited options going forward.”
Yet, despite the vulnerabilities identified, the report also leads with optimism. While only a tiny percentage of corn and wheat grown in Ontario is organic, revenues are not insignificant, contributing $38.5 million (corn) and $13.8 million (wheat) in farmgate sales. The report does not assess the economic impact on jobs or the value added to primary ingredients by Ontario’s millers and feed processors.
The report also reveals that consumer demand has not diminished. A trend that began during the pandemic is showing no sign of abating; consumers are now buying organic grains online and milling them at home. Farmer-to-baker connections are also helping farmers to increase their income streams by diversifying organic wheat production from soft to hard wheat and by growing heritage wheats to fill growing niche markets.
“This report shows us that organic wheat and corn value chains are surprisingly simple. Yet, while this simplicity makes them vulnerable to market disruptions, it also means there are significant gains to be made through market and product diversification,” Young concluded.
Source: The Review