September 28, 2005
Source:
Organic News Volume 2 Issue 8 July-August 2005
New South Wales Department
of Primary Industries
Meeting the Regulation: Organic Seed & Seedling Production in
Australia
Original report in PDF format:
http://www.seedquest.com/News/releases/2005/pdf/13630.pdf
(1.43MB)
INTRODUCTION
To maintain
market access for Australian organic produce Australia’s
National Standard for Organic and Bio-Dynamic Produce (NSOBDP)
required that from January 1, 2004 all certified growers source
their planting material from certified sources. The move came
in response to Article 6(3)
of Council Regulation (EEC) No.2092/91 which required the
same change in production standards from EEC producers. Prior
to this, producers were exempted under
Derogation which permitted the use of non-organic seed in
organic production, provided farmers were unable to find the
organic seed they required locally. However, as the
deadline for the removal of Derogation loomed and with limited
supplies of organic planting material available, it became
obvious to the regulators of organic standards that the complete
removal of Derogation would place organic farmers at a distinct
disadvantage. In August 2003, EU regulators moved to extend
Derogation under a new Regulation (Council Regulation EEC
No.1452/2003). To be enforced from January 1 2004, the new EU
Regulation extended Derogation indefinitely (with review in
2006), but placed greater restrictions on its use.
In recognition of the need for Australian organic producers to
become familiar with these changes the organic industry in
conjunction with
Rural Industries Research and Development Corporation (RIRDC)
commissioned a project
to facilitate a process which would lead to the uptake of the
new production standard for certified organic vegetable seed and
seedlings across Australia’s horticulture sector. Rather than
have these changes imposed unilaterally the organic vegetable
industry’s regulators invited production, supply and processing
participants meet and consult to resolve the issues of supply &
demand and examine the need for regulation.
METHODOLOGY
-
Raising industry awareness.
Six half-day workshops were held from
September 1-8, 2003 in Sydney, Brisbane, Melbourne,
Launceston, Adelaide and Perth.
-
Identifying supply and demand for organic
vegetable seed and seedlings.
A survey was conducted to
examine the Australian organic vegetable industries’ ability
to implement the required changes and to identify the
main issues influencing supply and demand of organically
produced seed and seedlings.
-
Construction of a National database of
organic vegetable seed and seedling producers.
Direct participation and information
extraction from existing Regulator databases were explored
as a means to create an essential industry tool.
RESULTS AND DISCUSSION
RAISING INDUSTRY AWARENESS
Workshop participants were largely enthusiastic about the
adoption of the seed/seedling Regulation, considering business
development opportunities to be a positive spin-off.
Uncertainty regarding supply and demand was inhibiting
production; however, participants felt that the development of a
comprehensive database of seed/seedling and input suppliers and
the provision of technical material outlining production
requirements and quality control procedures should increase
producer and investor confidence. Workshop participants
identified the need for consistency in the interpretation and
implementation of the Derogation. It was agreed that
clarification should be sought from the EU regarding
interpretation and compliance.
MATCHING SUPPLY & DEMAND FOR ORGANIC VEGETABLE
SEED & SEEDLINGS
The survey highlighted a shortfall in specific varieties of
organic material could significantly disadvantage Australian
organic producers, particularly those supplying the supermarket
trade or contemplating export production. A number of
constraints affecting supply and demand of organic vegetable
seed and seedlings were identified.
The nature and size of the organic vegetable industry.
The survey identified that the Australian organic vegetable
sector was largely dominated by a large number of smaller
production units (less than 2Ha) growing a diverse range of
crops. Typically, these producers used a combination of both
seed and seedlings in their production. Larger producers mostly
sourced their seed and seedlings from larger commercial
companies who produced organic products as a sideline.
The survey suggested that the majority of organic vegetable
producers used less than 5,000 seedlings / annum. Many obtained
their supplies of organic seed from specialist suppliers such as
seed saver and heritage (heirloom)-type seed companies. Larger
producers generally sourced their seed from larger commercial
seed suppliers that traded in conventional and organic lines.
Due to the irregularity and small size of orders, commercial
seedling suppliers were generally unwilling to meet the demands
of these producers. Consequently, many smaller organic vegetable
producers were having difficulty purchasing a regular supply and
believed that in the future they would place a greater emphasis
on on-farm production of seedlings.
Lack of reliable industry statistics.
The lack of, or confidentiality of, data
pertaining to the production and supply of organic seed and
seedlings hampered the ability to determine accurate supply and
demand figures. Similar difficulties in obtaining information
regarding seed availability in Europe and the rest of the world
have been reported by overseas researchers (Cook, A., 2000).
Industry uncertainty regarding the Regulation and Derogation.
As a matter of urgency, it is essential that a clear, concise,
and harmonised interpretation of the Rule and derogation be
negotiated between AQIS (as the Competent Authority) and Organic
Certifying Organisations. Many suppliers of organic seed or
seedlings believe that whilst Derogation exists within the
Regulation, and there was a lack of a clear, consistent, and
agreed position of the interpretation of the Derogation amongst
organic certifiers, there would be greater risks associated with
supplying this market. Furthermore, Organic vegetable producers
feared that a lack of competition in the market place (not
enough seed/seedling suppliers) would lead to a lack of choice
in the marketplace which may lead to monopoly trading, and
inflated prices for organic seed and seedlings. This view was
supported during the recent First World Conference on Organic
Seed with “the different regulations for organic seed use,
different country interpretations of the EU regulation and
derogations resulting in a decreased industry interest in
investing in organic seed. The seed industry called for a
harmonisation of the many certification schemes in existence,
especially with reference to the question of Derogation” (FAO,
2004).
Supply pathways for organic seed in
Australia.
The availability of good quality organic seed
will be paramount for a smooth transition of the implementation
of the Regulation in Australia. During the First World
Conference on Organic Seed (FAO, 2004) there was broad agreement
that the provision of good quality seed remains a prerequisite
and that good cultivation practices, appropriate varieties and
plant hygiene are the foundation of all seed production. Organic
seed supplies in Australia are currently sourced through three
major channels:
i. Conventional’ suppliers of organic and
non-chemically treated seed.
This sector includes imported organic and non-chemically
treated seed largely from the European Union and USA. A
small number of ‘local’ organic producers are also
contracted to produce seed. Imported organic vegetable seed
is available in larger ‘commercial’ quantities and quality
is often more consistent than current ‘local’ supplies, due
to strict requirements for testing under bi-lateral trade
arrangements with the Australian Federal Government and the
Organisation for Economic Co-operation and Development
(OECD) Schemes for the varietal certification of seed in
International trade which promotes the use of agriculture
seed of consistently high quality.
Currently the main sources of organic vegetable seed
imported into Australia are the Dutch companies Rjik Zwaan
and Bejo Zaden. Whilst theses companies are still committed
to organic production, they indicated that continued supply
to the Australian organic industry would be determined by
market and policy developments related to the implementation
of the Regulation and Derogation.
ii. Seed saver networks and specialist
nurseries.
Seed saver groups and specialist nurseries currently
represent the largest group of suppliers of organically
produced seed and seedlings in Australia. These seed
suppliers generally supply a large range of varieties in
small seed lots. Many of these suppliers favour
open-pollinated and heirloom vegetable and herb varieties,
and have well-established market niches in the home
gardening sector and with smaller organic producers.
There has been some concern
amongst producers regarding the quality of open-pollinated
seed from some of these sources. Inconsistent batch
performance (variability) and poor germination were some of
the problems experienced. Few of these outlets sold
certified organic seeds. There was however a trend towards
applying for organic certification since the Regulation
became mandatory. Some nurseries have opted for outright
certification, whist others have opted to purchase in
certified organic seed for resale.
iii. On-farm organic seed production.
On-farm production of organic seed consists of specialist
seed producers, organic producers who grow their own seed
for replanting and who sell any excess to their
requirements, and producers who are commissioned by seed
companies to produce organic seed on consignment.
Open-pollinated or hybrid?
The majority of producers and suppliers believed that hybrid
seeds should be retained in organic production; however, there
was a trend amongst producers towards the use of open-pollinated
varieties. The reasons given for this were largely
philosophical, rather than pragmatic. However, since the current
suppliers of organic seed were mostly inclined to trade in
open-pollinated varieties, one could speculate that many
producers were given no option but to use open-pollinated
varieties, particularly whilst organic standards required them
to purchase seeds of organic origin.
Market forces, to some extent, have dictated if producers
utilise hybrid or open-pollinated varieties. Many smaller
producers utilised local outlets such as farmers markets, home
delivery and specialist retail outlets such as restaurants.
Consumer preferences may not be as discerning when purchasing
from these outlets, and in fact consumers may actively seek out
the more unusual lines such as heirloom varieties. In contrast,
larger traders of organic vegetables such as wholesalers,
supermarkets and export markets often prefer lines that reflect
broader consumer preference trends. These findings were
reinforced by the First World Conference on Organic Seed in Rome
in 2004:
“The
Conference revealed that the organic sector has two distinct but
not mutually exclusive faces: Farmer groups (often small
farmers),……..interested in producing for the local market with
local varieties or conservation varieties, with sometimes
established systems of participatory seed production and
exchange …; and
Large-scale
farmers who need to supply local supermarkets or competitive
export markets and who have specific quality requirements that
are best met by using the modern (hybrid) varieties of
commercial seed companies.” (FAO, 2004).
ESTABLISHING AN AUSTRALIAN DATABASE FOR ORGANIC
SEED & SEEDLINGS
Privacy concerns by growers prevented direct participation in
the creation of a meaningful database within the project and
legislated privacy laws prevented data extraction from existing
regulator databases to create such as database as required under
Article 6(3) of Council
Regulation (EEC) No.2092/91.
As yet, a coordinated, National approach to the listing and
recording of certified suppliers has (at the time of writing)
not been undertaken in Australia. However some individual
organic certifiers do maintain limited lists of suppliers of
organic seed and seedlings.
A
National database is required to not only provide listings of
certified organic seed and seedlings, but as a means to put in
place reporting and monitoring mechanisms. This is essential to
ensure Australia has continued access for its organic products
to export markets and to track the availability and demand for
certified organic propagation material.
Database design & delivery.
As a minimum, a database that contains the
information required under EEC Regulation (EEC) No 1452/2003 should be designed, and should
include an appropriate mechanism for organic producers to apply
for derogation.
A web-based, interactive database similar to the
European-based
OrganicXseeds would offer significant benefits. The organisation
responsible for the database is FiBL (Research Institute of
Organic Agriculture) in Switzerland, in cooperation with the
United Kingdom’s Soil Association and NIAB in England, AIAB in
Italy, the LBI (Lois Bolk Institut) and the Stichting Zaadgoed
in Holland and the German working group ALOG. An additional
advantage of an interactive database is the potential fiscal
benefits of an on-line trading service. The market penetration
of Web-based information could improve investment confidence in
the domestic supply and trade of organic seed and seedlings,
whilst also offering bi-lateral trade opportunities between
Australia and its international markets.
In order for production and supply issues for organic
propagation material to be minimised it is clear that the demand
for the products need to be increased. A number of alternative
markets should be considered.
The nursery and retail trade.
Organic gardening is becoming increasingly
popular amongst home gardening enthusiasts. The popular
television series, ABC’s ‘Gardening Australia’, advocates
organic techniques and publishes the monthly ‘Organic Gardener’
magazine. “Mr. Fothergill” brand seeds has launched an organic
(non-certified) seed range into ‘conventional’ nurseries and
supermarket outlets. This increased interest in organic
gardening offers alternative markets for certified organic seed
and seedlings, trees and shrubs (referred to as Green Life
products) as well as allied garden products such as organic
growing media and mixes, fertilisers and plant care products.
In their 2002 Australian Horticultural Statistics Handbook,
Horticulture Australia Limited reported the combined garden
services and retail trade in Green Life products was valued at
$468 million, whilst the allied garden product trade for retail
products was valued at $780.5 million and the café and gift
segment accounted for $42 million. If the certified organic
industry could capture just 1% of this trade this would
represent $4.68 million for Green Life, $7.8 million for allied
garden products and $0.42 million in the café and gift segment.
Organic seed production opportunities.
Organic production of seed offers potential income
diversification opportunities for ware crop producers. This
could be through contracting production to existing seed
companies or by direct sale to other organic producers.
Production of organic seed for export could also offer some
potential. Tasmania and Western Australia, due to their relative
isolation and quarantine restrictions were seen as the most
likely locations for these operations. The advantages of
Tasmania as a climatically suitable counter-seasonal producer
for Northern Hemisphere markets has been recognised by several
seed companies. The major crop types include brassicas,
especially hybrid cabbage and cauliflower, root crops such as
potato, carrot and parsnip, onions, and leaf crops such as
spinach and silver beet.
CONCLUSION AND RECOMMENDATIONS
A
national approach is urgently required to identify and
prioritise strategies that impact on the supply and demand of
organic seed and seedlings.
Maintenance of an adequate genetic resource base is a major
challenge for the industry. As there are few vegetable breeding
or selection programs currently operating in Australia it is
imperative that the organic industry use this opportunity to
create a solution to their needs.
It is recommended the Australian Organic Industry consider the
following strategies:
-
Convene a National Organic Industry Forum
bringing together key stakeholders to discuss issues
associated with the Regulation and the development of a
harmonised approach to facilitate supply and demand for
organic plant propagation material within Australia
-
Industry urgently needs to determine a clear,
concise and harmonised interpretation of the Regulation and
Derogation, including a time frame for full implementation
-
The development of an interactive web-based
National Database of suppliers of certified organic seed and
seedlings, which satisfies the requirements of
EEC Regulation
(EEC) No 1452/2003
In order to minimise the impact of the Regulation and its
requirements on organic producers and suppliers it is
recommended that:
-
Producer cooperatives facilitate the supply &
purchase of organic seed and seedlings
-
More on-farm seed production be undertaken to
fill the supply gap
-
Users form alliances through their certifiers
with larger ‘commercial’ suppliers of seed and seedlings to
facilitate of supply and demand
-
Ware growers determine their annual
requirements for organic seed and seedlings well in advance
of their production season requirements.
-
Seed and seedling suppliers investigate
alternative markets for (eg Green Life and Allied Products
horticultural segments)
-
Seed and seedling suppliers identify export
opportunities for counter-seasonal supply of fresh organic
seed for the large northern hemisphere markets (EU, Japan,
USA).
REFERENCES
Cirillo, L (2001). ‘The Australian Horticultural Statistics
Handbook’, 2002 Edition. Horticulture Australia Ltd. 2001.
Cook, A. (2000). ‘Production of organic seed for the organic
farming sector’, Elm Farm Research Centre. 2000.
http://www.efrc.com/research/organicseed.htm
FAO (2004) ‘Report on the First World Conference on Organic
Seed. Challenges and opportunities for the organic
agriculture and seed industry’ FAO, Rome, 5-7 July 2004.
www.ifoam.org/orgagri/OSC-Final-Report.pdf
Neeson , R and Howell, G. (2004) ‘Organic Vegetable Seed and
Seedling Production’, Final Report Project DAN-217A, RIRDC and
NSW DPI, 2004.
Organic Industry Export Consultative Committee (2002), ‘National
Standard for Organic and Biodynamic Produce’ 3rd edition,
Organic Industry Export Consultative Committee, Canberra.
For more information contact Robyn Neeson, NSW Department of
Primary Industries, Yanco Agricultural Institute, Yanco, 2703.
Email:
robyn.neeson@agric.nsw.gov.au
This publication is
available through the Australian research organisation
Rural Industries Research &
Development Corporation (RIRDC)), e-mail:
rirdc@rirdc.gov.au, and
is titled "Organic Production of Vegetable Seeds & Seedlings".
Quote project number DAN-217A
Original report in PDF format:
http://www.seedquest.com/News/releases/2005/pdf/13630.pdf
(1.43MB) |