Closing the yield gaps: Can organic outpace conventional farming?
19 Aug 2019 --- Advancements in agri-tech and sustainable supply chain management are contributing to the narrowing of yield gaps between organic and conventional farming. Within this market, players have invested in novel solutions that ensure the high output and low environmental impact of farming practices – from mobile apps that elevate sourcing transparency, to satellite monitoring of reforestation efforts. FoodIngredientsFirst speaks to leading players in the organic industry, who underscore key drivers in modern production.
In terms of yields and productivity, research shows that yield gaps between organic and conventional yields diminishes over time, in addition to higher nutrient use efficiency and spatial stability in the organic system, as highlighted by Hans Dreyer, Director of The Plant Production and Protection Division (AGP) at the Food and Agriculture Organization of the United Nations (FAO).
Turnover for organic produce has more than trebled since the 2000.“According to data by Research Institute of Organic Agriculture (FiBL), the global market for certified organic food and drink reached €92.1 billion in 2017,” says Dreyer. “The turnover with organic products has more than trebled since 2000. Over 80 percent of the organic product revenues is made in North America and Europe. In 2017, the largest market by far was the US with €40 billion of organic food sales, followed by Germany with €10 billion and France with €7.6 billion. The highest annual per capita consumption was in Switzerland [€288] and in Denmark [€278]. Denmark, Sweden and Switzerland have the highest share of organic food sales.”
Growth of the organic market is apparent, but when asked about the potential of organic produce to outpace conventional farming, Chris Brown, Group Head of Environment at Olam International, notes, “Unfortunately, there’s no clear answer to this question. As no chemical fertilizers or pesticides can be used in organic production, this can be good for the local landscape, for example no run-off into waterways. It also promotes other environmental benefits such as biodiversity – useful natural predators and pollinators [bees].”
“On the other hand, organic productivity for farmers still tends to be lower – coffee yields for instance are around 20 to 60 percent lower than non-organic, and with the additional labor requirements, which aren’t always compensated for by premiums – it is not always economically viable for smallholder farmers to switch to organic. And, if yields are lower, then you have to consider that more land may be required, which comes with its own problems,” Brown explains.
Innovative drivers of organic production and trade
Higher industry growth margins are seeing raised investments in the space of sustainable organic produce. Karst Kooistra, Sourcing Development Director at Tradin Organic highlights the role of innovative inputs in pushing up yield values of organic farming, while also mitigating climate impact.
“Recently we are also seeing a lot of innovation in organic certified inputs, which will help to further improve the productivity of organic farmers in the near future,” says Kooistra. “Tradin Organic is currently working with a digital app developed by FarmForce, which allows us to manage our organic monitoring system more efficiently. The app allows us to further improve the traceability of our products and transparency in our supply chains. We are now piloting this app for several of our organic commodities, registering farmers, mapping farms using GPS data and recording transactions.”
“At this moment, we are exploring even more innovative applications of this technology. We aim to start monitoring tree cover and reforestation efforts in our sourcing areas using satellite data. We can combine this information with data on the carbon emissions along our supply chain, with the intention to offset the carbon emissions of our products through replanting projects at origin. In the future, this will allow us to offer fully transparent carbon neutral organic food ingredients,” explains Kooistra.
Geemon Korah, CEO of India-based Kancor Ingredients Limited, emphasizes the importance of bridging the divide between corporate oversight and farmers along the supply chain, which can be furthered by digital solutions.
Olam International has developed AtSource, a user-friendly platform helping agri-companies elevate their sustainability standard.
“Right from its global sourcing program, Kancor ensures to work closely with farmers, to enrich their work and even livelihoods,” says Korah. “Initiatives of backward integration for specific crops and projects for community development have seen very positive responses. The Integrated Pest Management (IPM) program for chilli focuses on natural pest control mechanisms and leads to minimum disruptions to agroecosystems. Our ‘Early Mint Technology’ for growth of mint, has resulted in increased sustainability via 30 percent reduction in water consumption, reduction in dependency on non-renewable fossil fuels and reduction in the emission of greenhouse gases.”
“This sense of commitment continues in our facilities, where we have replaced traditional hydrocarbon fuels with biomass fuel to reduce our dependence on nonrenewable fossil fuels. We have also taken measures to become a ‘zero discharge company,’ among other energy saving/efficient practices,” adds Korah.
Meanwhile, Brown further stresses the importance of digitized solutions in maintaining transparency across the organic supply chain. Olam International has developed AtSource, a user-friendly sustainable sourcing platform that connects companies directly to supply sources, enabling the tracking of materials “across the entire journey from field to processing, country of origin to destination market.” The digital solution also serves as a tool helping companies take stock of their greenhouse gas emissions and water footprint.
“As a company we are also focused on protecting the future of our supply chains, as well as responding to increasing consumer trends,” says Brown. “This was the rationale behind launching our sustainable sourcing solution AtSource. The solution allows our customers to track the holistic footprint of their products – broken down into economic, social and environmental metrics – from the farmer-group, right up to the manufacturing gate. With this insight companies can assess hotspots and take more informed interventions.”
Furthermore, Brown highlights the following developments in sustainable organic farming that have emerged this year:
- Improvements in Integrated Pest Management (IPM) such as the development of pheromone traps - increasingly allow farmers to use natural predators (like wasps) and beneficial organisms (e.g. Trichoderma fungi) to combat pests and diseases and rely less on chemical pesticides. Although these are not always accessible or affordable to many smallholder farmers.
- Precision agriculture tools such as smart sensors for water and soil, which allow for better crop monitoring and early detection of crop constraints. This avoids large-scale application of chemical inputs and allows more timely and limited response.
- Increased understanding of the benefits of inter-cropping and shade trees that allows for better selection of plants that can be grown with coffee and help nutrient recycling, reduce soil erosion and provide a natural habitat for pollinators and beneficial organisms.
- Varietal improvement through crop breeding is helping farmers select pest and disease resistant varieties that will not require much (if any) chemical input. Within this space, Israeli startup Equinom Ltd. has developed a “strictly non-GMO” methodology for the seed-breeding of soybeans.
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For smaller scale farms that lack capital and expertise, challenges in growing sustainable organic produce are more pronounced.Challenges in sustainable organic farming
One of the most significant challenges in organic farming is the availability of organic certified raw materials. “Even though demand for organic food is continuously growing, supply is lagging behind,” adds Kooistra. “This is partly due to the three-year conversion period that farmers have to go through, in order to obtain the organic certification. For this reason, we have an extensive global sourcing team. This team of agronomists is working with farmers around the world to help them set up their organic control and monitoring systems and to obtain the organic certification. This work is essential to help establish new and reliable sources of organic food ingredients.”
In some cases, organic food ingredients can be more expensive than conventional ingredients, Kooistra adds. “This is due to additional costs incurred in meeting the strict requirements of the organic standard. These costs are related to activities, such as setting up a monitoring and traceability system, testing the products for residues. We put a lot of effort in maintaining our best-in-class quality assurance to help guarantee food safety and organic integrity throughout our supply chains. Although this represents a significant investment, we would not compromise on these costs.”
“Another important practical challenge is the handling of organic raw materials,” notes Kooistra. “As the organic standard does not allow for chemical short-cuts for disinfection or fumigation of organic ingredients, it is crucial to treat our organic raw materials with utmost care, during harvest, transport and processing. For this reason, Tradin Organic invests heavily in quality control during each step in the supply chain.”
For smaller scale farms that lack capital and expertise, challenges in growing sustainable organic produce are even more pronounced. “The soil nutrient balance also needs to be managed carefully under organic farming methods,” says Brown. “The farmer needs to put back large amounts of organic biomass which residues – which they may not have access to or know-how to create – into the soil to compensate for the nutrients extracted when the crops are harvested. This also makes it difficult to sustain organic yields at scale.”
“Organic production in developing countries therefore requires careful management and is best suited to areas with fertile soils and low prevalence of pest and disease outbreaks,” continues Brown. “As a principle for non-organic certified farmer livelihood programs, Olam promotes organic methods such as learning how to make their own compost, combined with extremely judicious use of chemical fertilizers. This is better for the land and the farmer’s pocket.”
As the demand for organic food continues to mature, greater cooperation between farmers, processors and businesses must be fostered, Kooistra highlights. “By working together with our global network of organic farmers and processors, we are increasingly improving the efficiency of our operations and achieving benefits of scale. This allows us to further narrow the price gap with conventional food ingredients,” he concludes.
By Benjamin Ferrer
