Organics for wheat, sheep and beef farmers

12 October 2005 | Agnote DPI-30 (third edition)

What is ‘organic farming’?

Consumers and organic farmers worldwide understand organic agriculture to be farming without the addition of artificial chemicals. Today, many wheat/sheep/beef farmers are interested in organics. This Agnote answers some commonly asked questions. The topics covered include:

• how to become certified as an organic farmer
• how produce is certified as ‘organic’
• what chemicals can be used
• what the organic market is like
• who to contact.

What is ‘certification’?

‘Certification’ means having an inspector from an organic certifying group (a certifier) inspect your farm and farming methods and confirm that your farming system meets their standards for being organic.

There are a number of certifiers who are accredited with AQIS. These groups certify farming systems (consisting of the farm, the farmer and the practices used on that farm). They also certify:

• processors
• input manufacturers and packers
• transporters
• packing sheds
• wholesalers
• importers
• exporters.

When a farm is found to be suitable, the certifier and the farmer sign a contract covering the future management of the farm and its organic status.

Certification involves inspection methods and criteria that can differ according to the certifier, but the final result is similar. The certification process usually involves a transition or conversion period which allows the farmer and farming system time to adjust to any changes that may be required. Farmers in this conversion level must meet the Level A standards but are not considered to be ‘organic’ farmers until they have farmed this way for some time — usually at least 2 years. (See Organic farming: an introduction for an explanation of Levels A, B and C.)

Must I be certified as an organic farmer?

No, but if you are certified, more markets are open to you because organic traders prefer certified produce.

No law says that farmers must be certified before they can sell produce as ‘organic’. However, certification is becoming more important and is expected to become compulsory.

How do I become a certified organic farmer?

Becoming certified as an organic farmer involves following a series of steps:

• Obtain a copy of the standards and an application form from the certifying organisation you think will suit you best.
   
• Compare the standards with how you farm, looking for possible conflicts. Ask the certifier about any points which are not clear. Where you have technical or economic problems, ask your advisers, such as the staff of NSW Department of Primary Industries.
   
• If you think you can farm organically and you are seeking certification, send in the completed application form, together with the fee.
   
• The certifier will send you a statutory declaration on which you will need to state your farming practices over the past years. Complete the form and send it in.
   
• The certifier will check your forms and the practices you describe. An inspector will contact you to arrange an inspection of your farm.
   
• At your farm, the inspector will go through your form with you and ask any outstanding questions. You and the inspector will then inspect the farm, the machinery and your stock. The inspector will decide which are the likely problem areas, particularly in relation to chemicals in your soil.
   
• The inspector will check that your equipment is consistent with your farming practices, whether you have appropriate windbreaks, how you manage diseases and pests etc.
   
• Your attitude to and knowledge of the principles of organic farming are considered important, but an inspector does not look for ‘religious’ adherence or ‘greenness’. Nor is it just a matter of certifying produce — the aim is to encourage what the certifiers see as sustainable agriculture.
   
• The certifiers and their inspectors are looking for ‘producers of healthy food from viable farming systems’. In other words, they want people who are farming in a positive and organic way, rather than just removing the ‘negative’ things (that is chemicals) which prevent a farmer from being certified as organic. So, the standards are not just a checklist of what to do or what not to do; rather they are intended to encourage good farming.
   
• The inspection is mainly about policing. However, the inspection can often result in the inspector learning new methods from successful organic farmers — organic certifying groups are aware that they don’t have all the answers.
   
• The inspector will probably take soil and/or plant tissue samples and send these for analysis. This may incur an extra charge.
   
• The inspector will send a report to the certifying group, which will review it. The certifier will tell you whether you have been accepted, and if so into which level (see Organic farming: an introduction).
   
• Each year, certified organic farmers must lodge a statutory declaration about the farm practices used in the preceding 12 months. The farmer must advise the certifier before doing anything outside the standards. If you are in doubt about something you wish to do, it is advisable to first check with the certifier.

Must the whole farm be certified?

No. However, there are some problems associated with the conversion of part of the farm. Generally the whole enterprise must eventually convert to organic production.

If part of a crop is being produced organically and part conventionally, the farmer must ensure that there will be no cheating or errors.

Can I have one paddock certified?

Not usually, because a paddock is not a complete farming unit; rather it is part of a rotation over the years. It is possible to certify a paddock if it is part of the conversion of the whole farm or if there is some good reason for not certifying the whole farm. Also, it is generally not possible to certify just one crop.

What chemicals can I use?

Organic farmers must not use any herbicides. As far as fertilisers and other soil treatments are concerned, lime, gypsum, dolomite, rock phosphate and some others are acceptable if they are from natural sources. Animal manures are usually acceptable if they have been composted first. All need to be monitored for their impact on crops, soil and the environment.

A few artificial chemicals are acceptable in pest management, but most have mild effects on the environment and on humans. Such substances include soap and winter oils.

Some certifiers permit vaccines under certain conditions. These conditions are:

• the disease which you are vaccinating for must be a problem on the property; and
• the vaccine must be a suitable way to manage that disease.

However, none of the certifiers allows the widespread, routine use of vaccines.

What time period must have passed since chemicals were used?

This depends on:

• which chemicals you have used;
• how long you have used them for;
• the amount of chemical used.

For example, if any insecticide or herbicide, including glyphosate (e.g. Roundup®), has been used on land on which crops or pastures are to be grown, it will usually be at least 2 years before those paddocks can be considered ‘organic’.

Use of most other chemicals results in a longer wait, particularly if they are residual.

What if my sheep have been dipped?

Sheep which have been dipped can be run on the organic part of the farm after a delay. After dipping or drenching they will probably need to be put into a holding paddock — which is not part of the organic section of the farm — for three times the withholding period on the label.

The products and/or the progeny from treated animals cannot be considered ‘organic’ until after a minimum management period:

• In the case of wool, this is 18 months after treatment.
   
• For meat products, only the offspring can be sold as organic, and then only if the conventional treatment was administered before the last trimester of pregnancy. It is advisable to check with your certifying group on how this works in your situation.

What does certification cost?

• A certified farmer must be a full member of the certifying group, a cost of about $125 to $150.
   
• Application for certification for producers typically costs around $150. In addition, and at the time of application, a deposit towards inspection fees is payable. This ranges from $250 to $300.
   
• Upon completion of the inspection, the producer is invoiced for any additional costs of inspection, which may include costs for analysis of soil and tissue samples.
   
• Some certifiers charge an annual levy of 1% on organic produce sales. There is no levy on sales of non-organic produce.

Do organic farmers get around the law?

No. Being ‘organic’ does not override the farmer’s need to obey such laws as the Pesticides Act 1999. Also, organic farmers must comply with all regulations on produce, such as on fruit grading.

How big is the organic market?

There are good, stable markets for rice, fruit and vegetables. The markets for most other commodities are disorganised, but they are improving.

The stability of the market in the future depends on how many farmers turn to organic farming, and how the demand grows. There are so many things that can impact on each of these factors that it is difficult to estimate the likely growth.

How do I sell organic wheat?

The majority of organic wheat is processed into flour (for bread and bread mixes, and cake and biscuit mixes) and noodles (soft wheat). Organic wheat is purchased b the following companies:

• Whole Grain Milling Company (NSW)
• Casalare Specialty Pasta (VIC)
• Kialla Pure Foods (QLD)
• Green Grove Organics (NSW)
• Four Leaf (SA)
• Goodman Fielder (Uncle Tobys) (VIC)
• John Gidley and Company (VIC)
• Pureharvest (VIC)
• Westson's Milling (NSW)

Small markets for export wheat are available, mainly to the European Union (EU).

Premiums for organic wheat are obtainable; however, this varies from year to year, depending on supply and demand. Oversupply can occur, so be prepared to market organic wheat onto the conventional market.

Overseas, our organic wheat faces a lot of competition, some of which comes from produce that is of a lower grade than ours. However, there is also quality organic wheat in the market.

Is there a market for organic meat?

Yes, but it is fragmented. There are few certified abattoirs and few which have had experience with organic stock. Most meat transporters are not set up to separate the organic meat from the rest. There are few butchers seeking organic meat at present.

Typically, a grower of organic meat will line up a market with a city butcher, restaurant or wholesaler. The major supermarkets Coles, Woolworths and Safeways now regularly carry organic meat lines, sourced through wholesalers such as Cleavers Meats (NSW).

Some organic livestock producers form marketing alliances. Hereford Prime (HP), a farmer-owned chain manager, has developed a strategy for marketing branded high-quality beef (including organic beef) into export markets aimed at the top-end market outlets such as restaurants, 5-star hotels and specialty gourmet food stores. In 1999, one of the largest organic beef alliances, Organic Beef Exports (OBE), sent more than $4 million of organic beef to Japan, and a further $1 million onto the Australian domestic market.

Some organic farmers have pooled resources and purchased their own butcher’s shop. The stock are killed under the farmer’s own killing number at the local abattoirs. As soon as the hides are pulled, the carcases are stamped with the farmer’s number, and this is used to track them through to the buyer.

The requirement for certification also extends to abattoirs handling meat which will be sold as ‘organic’, particularly if it is destined for export.

What about the economics?

Are you fairly free of debt and generally in a good financial position? If not, you may find it difficult to handle the potentially lower returns. Most farmers find that the conversion period (when the farm is moving into organic production) is the hardest. During this time the farmer learns a lot by trial and error, and yields may be lower during this period also. Price premiums are not usually available until a farm is fully converted to organics. All of this means that you should plan the conversion phase very carefully.

To obtain a premium for your organic produce, it helps if you have marketing knowledge and skills. You won’t receive a premium for very long unless you consistently produce a quality product — organic grain which is unsuitable for milling can end up as very expensive stockfeed.

Contacts

NSW Department of Primary Industries staff can help — some know more about organic farming than others; some even farm organically. If you would like more information than you can access locally, or if you have any problems, contact:

Robyn Neeson
Organic Farming Liaison Officer
NSW Department of Primary Industries
Yanco Agricultural Institute
Yanco  NSW  2703
Ph: (02) 6951 2735
Fax: (02) 6951 2620

Further information

For further information, see the following:

• Organic farming: an introduction
• Organic farming — huge potential for producers
• NSW Agriculture and organic farming
• Organic news newsletter
• Organic farming websites