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7
APRIL 2016
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The Canadian Business Journal
Farmers Are Paid
Premiums
Aside from the health and environmental ben-
efits, much of the organic or specialty crops
market is fair trade. In North America and Europe,
the organic industry allows smaller farms to earn
a full-time living, and the family business can be
passed on to the next generation as it produces
more labour and revenue. “Because organic agri-
culture pays a premium over regular agriculture,
it is ideal for smaller family units,” Felder says. “It
allows for farmers to get a fair price. It allows for
more family members to work on a farm.”
The same principle applies to producers in
developing countries. Organic agriculture’s spot
market system has fewer trade steps, so the
farmers receive the premium associated with
certified organic products.
“We buy closer to the farms and the premi-
ums reach the farm gate. So there are less trade
steps in between, and, in order to get a certified
organic product, you need to pay a premium to a
producer,” Felder says. “It adds value to produc-
ers anywhere in the world. Everybody gets a fair
share.”
Top Dollar for Organics
The market for organics and non-GMO prod-
ucts is growing in North America and Europe.
Organic products are not only found in specialty
stores, because grocery superstores are seeing
the profitability of selling organic products. As
well, demand for one organic product creates a
ripple effect in the demand for others. In particu-
lar, the high consumer demand for organic eggs
is currently fueling the demand for organic feed
grains, such as corn in Ontario. “Depending on
test weight and the shipping period, we expect
to pay $12 to $14.50 per bushel for organic corn
in 2015,” Felder says.
Looking forward, Felder anticipates that
the organics market will continue to increase.
“We hope that more and more people look into
organic products when they are at the grocery
store. Because there are all around benefits – not
just for the people who consume it,” she says.
“We preserve our soil, we preserve our air, and
water quality. Also, it’s a fair system in the distri-
bution of dollars around the planet and back to
the farm gate.”
CBJ
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