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Organic seed and seedling production in Australia
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

To meet these objectives a number of activities were undertaken:

  • 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. 

ALTERNATIVE MARKET OPPORTUNITIES FOR ORGANIC SEED & SEEDLINGS

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)

From: Organic News, New South Wales Department of Primary Industries

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