The Food Industry

There are many exciting changes in North America's growing natural and organic food industry. These changes are a reflection of how consumers shop for food and consume food. Today, both industry and government are responding to the changing consumer demands. The following is a list of key changes that are affecting the market place today:

Consumers

LESS PROCESSING IN READY-TO-EAT FOODS:  The last three decades have seen tremendous growth in sales of processed food. Sales of food that is ‘READY-TO-EAT’ (processed) now total three-fourths of the total world food sales. But, contrary to this growth, North American consumers are increasingly seeking food products that are more whole and organic and/or less processed. Organic processed foods have fewer ingredients, less colourants, flavours, bulking agents, allergens and chemical preservatives.

This back-to-nature trend in shopping is evidenced by the increase in natural and independent retailers that are growing in Canada and the increase in sales. According to data provided by the Nielson Co (2006) Canadian stores sold $412 million of Certified Organic products in 2006 (a 28% increase from 2005).

Government

MORE REGULATIONS:  In December 2008, the Canadian Food Inspection Agency (CFIA) will implement and oversee Canada’s new organic system. Label claims on all products will be heavily enforced under the regulations outlined under the Canadian National Standards for Organic Agriculture.

Canada’s new organic national standards outline the production, processing and labelling requirements of organic agricultural products. The standard specifies the minimum criteria that must be met in organic production.  It also outlines the principles of sound organic agriculture systems that entail producing high quality food using sustainable management practices, avoiding damage to the environment and ensuring the ethical treatment of livestock. 

The CFIA is also looking at ways to define and control the use of the claim "Raised Naturally" for pork and beef producers that follow natural or organic farming practices but do not have organic certification. This represents a significant change in Canada's food labeling regulations because it will ensure that consumers are not being misled and that companies will be accountable when using the word 'Natural' in their label claims.

The Canadian Federal and Provincial Marketing Boards that control chicken and turkey quota production for the Canadian markets now recognize natural and organic poultry market as its own unique segment. This growing market is now regulated seperately under a 'Specialty' quota program. This represents a significant change in the poultry industry because it creates more opportunities for new entrants (producers) to enter in to the market place. Poultry products under this quota system can be labelled 'Specialty' or 'Certified Organic' if they have the certification.

Industry

COLLABORATION: In January 2003, Canada established the Canadian Organic Trade Association in conjunction with the US Association. The Organic Trade Association (OTA), formerly the Organic Foods Production Association of North America (OFPANA), was established in 1985 in the United States and Canada. Since its inception, the association has been a key player in shaping both the regulatory and market environment for organic products. Today, OTA Canada and the US are acting as leaders in advocating and protecting organic standards so that consumers can have confidence in certified organic production.  With input from its diverse membership, OTA continues to develop and refine organic standards for emerging product areas. OTA monitors the work of government agencies, takes positions on legislation that affects organic agriculture and products, and represents the industry to regulators, elected officials, and international bodies. For more information on the Organic Trade Association, visit www.ota.com.