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Canadian Wheat Board to market organic wheat

CBC News
July 04, 2006

Business The Canadian Wheat Board plans to launch a pilot project to sell organic wheat produced by a farming co-operative, in a bid to develop high-value markets such as Japan and Europe.

Currently, farmers who want to sell organic grain either market it on their own, or sell to the wheat board's accredited exporters.

Under the terms of the one-year agreement, beginning in the fall, the board will begin to market the organic wheat from farmers with the Canadian Organic Certification Co-operative, who will still receive a premium price for their products.

Bill Rosher, who is secretary of the co-operative, said the organic market is starting to mature, so producers need to develop new markets for expanding production.

He said it is tough for producers to develop contacts in high-value markets such as Japan and Europe.

"We can't be sending somebody over to Japan right now to find out what they need for organic grain, but the Canadian Wheat Board is there," he said.

"We understand what the Canadian Wheat Board can do as conventional producers and we thought another marketer in the game — it's got to be a benefit. We get access to the risk management and the reputation they have on the international market," he said.



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Wheat board expects easy move into organic markets

For its part, officials with the Canadian Wheat Board said they're looking forward to an easy entrance into some organic markets.

"We have conventional customers that are branching into organic, so we anticipate that those contacts will be interested," said Donna Youngdahl, who is the organic marketing manager for the board.

Youngdahl said the board would likely start off targeting smaller markets, but as supply grows, it would begin to focus more on customers who want large volumes.

Participation in the pilot project will be voluntary.

If the pilot project is successful, the wheat board plans to start marketing all organic wheat.

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