PrOPara project workshop Focus Group Manual: Step-wise Approach (Project deliverable 10.(WP4))

This handbook is a deliverable (WP4) from the EU-funded PrOPara project. The PrOPara project aspires to i) assess existing knowledge from research, development and benchmarking studies on alternatives to parasite control on organic ruminant farms, ii) collecting novel data on disease prevalence, risk assessment analysis and parasite control measures, through monitoring (farm surveys and stakeholder participation studies), iii) performing cost-benefit analysis on alternative parasite control measures and iv) developing and delivering technical innovation to facilitate implementation of sustainable parasite control strategies. This handbook serves as a baseline to conduct workshops with stakeholders in France and Scotland. It provides the organisers with a structured approach on 8 steps. The implementation of this approach will allow identification of main alternative GIN practices according to stakeholders’ views, as well as analysing economic impacts and reasons for adopting them or not

Organic farm incomes in England and Wales 2009/10 (OF 0373)

This report presents results of research on the financial performance of organic farms in 2008/09 and 2009/10 financial years. Carried out for the Department for Environment, Food and Rural Affairs (Defra), this research continues project OF0373 and builds on previous work on the economics of organic farming carried out at Aberystwyth University (Projects OF0190, covering 1995/96 to 1998/99 and OF0189, covering 1999/00 to 2004/05)1. This report utilises data collected through the Farm Business Survey in England and Wales. An analysis of the FBS/Defra Data Archive for 2009/10 found a total of 241 businesses with some organic land, and of these holdings, 189 met the criterion for inclusion within this study by having greater than 70% fully organic certified land. In total, data from 185 organic farms were suitable for inclusion in the analysis. The organic holdings were matched with clusters containing a total of 785 comparable conventional holdings. It was not possible to identify comparable conventional businesses for four organic farms, though the gross margin results from one of these businesses could be utilised. Comparable conventional farms (CCF) were clustered to each organic farm to ensure that the comparison between farming types is based on a similar resource base e.g. similar land area, farm type, region and other factors. This enabled each organic farm to be matched to the average for a conventional farm cluster that comprised data from at least three comparable conventional holdings. The full sample analysis utilised data from 185 organic farms and provides the best comparison of organic and comparable conventional farm income data in 2009/10 (2008/09 data is provided for a non-identical comparison). The profitability (Farm Business Income) of most organic farm types was higher than that of comparable conventional farms. Organic lowland dairy and cropping farm types were considerably more profitable than their conventional comparisons, however, the organic LFA dairy and horticulture (not shown) farm types did not perform as well as conventional systems, mainly as a result of high feed and other livestock costs in LFA dairying and the specialisation/intensity of the comparable conventional horticulture systems, but both farm types had small organic samples which may also have affected the results. Data were also analysed using identical samples and gross margins

Socio-economic impacts of alternative GIN control practices. Project deliverable 11 (WP4)

This report is a deliverable (WP4) from the EU-funded PrOPara project. The PrOPara project aspires to i) assess existing knowledge from research, development and benchmarking studies on alternatives to parasite control on organic ruminant farms, ii) collecting novel data on disease prevalence, risk assessment analysis and parasite control measures, through monitoring (farm surveys and stakeholder participation studies), iii) performing cost-benefit analysis on alternative parasite control measures and iv) developing and delivering technical innovation to facilitate implementation of sustainable parasite control strategies. A combined approach of modelling and focus groups for feedback was employed to assess the economic impacts of alternative GIN control strategies in South West France and North East Scotland. This two step method allowed results from the survey and farm modelling to be used during workshops, which also addressed social factors explaining the uptake and acceptance of GIN practices to control parasites. An existing excel based farm model was adapted in order to estimate the economic impacts of a range of alternative GIN practices. The model was adapted using data from a typical farm for organic goat system in France (Occitanie and Auvergne-Rhône-Alpes Regions) and two organic sheep systems (lowland and upland) in Scotland. A structured workshop approach was utilised to address both the social and economic factors related to adoption of alternative GIN practices by farmers. To this purpose, we adapted the Structured Decision Making (SDM) approach commonly used for decisions taking (Gregory and Keeney 1994, Conroy, Barker et al. 2008, Ogden and Innes 2009, Gregory 2012, Johnson, Eaton et al. 2015, Fatorić and Seekamp 2017). Overall, the modelling and farmer feedback showed that control of GIN needs to be farm specific, to suit the individual characteristics of both the farm but also the beliefs of the farmer. The extension of withdrawal periods combined with resistance issues in France have led to the adoption of TST by some farmers, but others are less convinced of its efficiency. The farmers in Scotland seem to have adopted multiple strategies such as use of arable land and mixed grazing to keep GIN levels from severely affecting their profits. However, the diversity of opinions and calls by the French farmers in particular for more trials, shows there is still further work to understand this problem and develop more effective, sustainable solutions

Organic farm incomes in England and Wales 2007/08 (OF 0373)

This report presents result of research on the financial performance of organic farms in 2006/07 and 2007/08, carried out for the Department for Environment, Food and Rural Affairs (Defra). This research builds on previous work on the economics of organic farming carried out at Aberystwyth University (Projects OF0190, covering 1995/96 to 1998/99 and OF0189, covering 1999/00 to 2004/05)1. Overall, identicla samples examined over a two year period 2006/07 to 2007/08 show that most organic sectors achieved higher net farm incomes in 2007/08 LFA cattle and sheep farm Net Farm Income (NFI) had the greatest increase,gaining by 46%, with strong gains in cropping and dairying. Organic mixed farming was the only sector to see reduced profitability, the identical sample falling back by 10%, while lowland cattle and sheep farming NFI increased by only 10%. When compared with comparable conventional farms, all organic farming sectors except poultry were above conventional profitability levels in 2007/08

Organic farm incomes in England and Wales 2006/07 (OF 0373)

In the report, we present results of research on the financial performance of organic farms in 2006/07 carried out for the Department for Environment, Food and Rural Affairs (Defra). The main aim of this work is to assess the financial performance of organic farms differentiated by farm type, in order to inform Defra policy-making with respect to economics of organic farming, and to provide a basis for assessments by farmers, advisers and other interested parties of the farm-level implications of conversion to and continued organic farming. This research builds on previous work on the economics of organic farming carried out at Aberystwyth University (Projects OF0190, covering 1995/96 to 1998/99 and OF0189, covering 1999/00 to 2004/05). In this report, financial data are shown for the 2005/06 and 2006/07 financial years, including between year comparisons and comparisons with similar conventional farms. For this report only, it has not been possible to produce identical samples for all farm types due to the change in data collection approach between 2005/06 and 2006/07. Identical sample comparisons have only been possible for lowland dairy and lowland and LFA cattle and sheep systems. The identical farm samples comprise farms that are present in both the 2005/06 and 2006/07 datasets. The total number of organic farms for 2006/07, also referred to as the full farm sample data, is shown alongside the identical datasets. In the other cases, data for the full samples in 2005/06 and 2006/07 are presented, but comparisons should be treated with caution due to changes in sample composition. Summarised and detailed financial input, output, income, returns to labour and capital, liabilities and assets and some physical performance measures are presented based on current Farm Business Survey (FBS) data collection and collation guidelines. The full samples of organic farms per robust farm type are sufficiently large to give some reasonable level of confidence in the data although it should be noted that the organic farm samples are not statistically representative of their type. However, the results can be seen as a reasonable indication of farm income levels for comparable organic and conventional farms. Smaller farm samples should be treated more cautiously as there is a possibility for outliers (especially larger farms) to have a significant influence on the average results. An additional element of this work is the inclusion of comparable conventional farm data (obtained from the main FBS sample) for the farm types shown. Each organic farm within this study was matched with an appropriate cluster of conventional farms based on the resource endowment indicators for individual organic farms. The indicators included farm type, FBS region, Less Favoured Area (LFA) status, utilisable agricultural area (UAA), milk quota held (where applicable) and farm business size. The cluster farm data were averaged for each farm type to derive the comparable conventional farm (CCF) data based on the organic farms from the identical and full farm samples. The identical samples of organic farms showed a much higher level of net farm incomes for lowland dairy and lowland cattle and sheep in 2006/07 than in 2005/06, with LFA cattle and sheep showing a small decrease over the period. Overall, organic net farm incomes exceeded conventional in all sectors, with most sectors showing an organic NFI twice that of the comparative conventional NFI. Increased organic prices and only small cost increases have led to substantial increases in organic NFI, especially in the livestock sectors

Review of the market for Welsh organic meat, 2007

The supply situation for Welsh organic meat Organic production in Wales has been developing steadily in the last five years, with particular emphasis on organic cattle and sheep production. This was despite over-supply conditions in some sectors, notably dairy, following the very rapid growth in 1999/2000. Between the end of 2002 and end of 2005, the number of holdings increased by 12% to 688, and the certified land area increased by 29% to 71,000 hectares, of which more than 90% is grassland. Growth in Wales has exceeded other parts of the UK, reaching 5% of agricultural land by end 2005. More rapid growth is projected for 2006 and possibly 2007. Organic cattle and sheep numbers have also increased steadily between 2003 and 2005, with total cattle numbers increasing by 114% to 37,000, and total sheep numbers increasing 105% to 248,000, representing 17 and 36% of the end 2005 UK organic population respectively (compared with 16% of UK holdings and 12% of UK land area). Actual output of Welsh organic lamb and beef is more difficult to quantifying reflecting a continuing need for improved statistical data to support market development and the delivery of public policy. Best estimates are 4000-5000 cattle slaughtered as organic, but potentially available production (some in conversion and/or marketed as conventional) may be as high as 8000 head. For lambs, possible estimates based on availables source range from 25,000 to 57,000, but potentially available production may be as high as 100,000. Better data is available within the industry, but is regarded as highly commercially sensitive and was not made available to the review team. Organic farm gate prices for lamb and beef have remained relatively steady over the period, although the gap with conventional prices has closed as the conventional sector has recovered. Recent increases in demand for organic meat, and the temporary suspension of beef imports from Argentina (now restarted) have resulted in some strengthening of organic prices in 2006. Organic premium prices do not, however, fully compensate for the increased costs of production per kg of meat, so that organic producers, like their conventional counterparts, are being paid less than the real costs of production, and are relying on Tir Mynydd, agri-environmental and Single Farm Payments to subsidise continued production. This leaves the industry vulnerable to any decline in market conditions and will mean continuing pressure on smaller producers to leave the sector. The Welsh organic red meat sector currently relies on two main marketing approaches. The majority of lamb and beef (> 80%) is marketed through multiple retailers, supplied by two producer groups. The need for producer collaboration to ensure a strong price negotiating position with the multiple retailers is recognised and has been yielding benefits. The remainder of Welsh production is marketed on a smaller scale through specialist and local retailers and directly to consumers, through farmers markets, farm shops and via internet sales. There is currently virtually no exploitation of the potential export market (outside the UK) and still some difficulties with marketing light and store lambs as well as dairy bred calves and cull cattle, although various initiatives are in progress to address this. The demand situation for Welsh organic meat From a consumer demand perspective, the overall organic food market is in a healthy state: according to TNS data, it has just passed the £1 billion mark and has put on an extra £200 million in the last two years. Growth in the latest year was 10% and 17% in the previous year. There is still huge opportunity for growth by continuing to convert non-users and simply getting existing users to purchase more often. Household penetration of any organic product is very high at 84%. However, many organic products are purchased by default, and are not planned, as consumers were either satisfying other needs or simply because they liked the product. The positive aspect is that organic is a benefit to products that fall in this category and gives something extra. Current organic users are also interested in most of the ethical issues affecting society today. They regard themselves as connoisseurs of food and wine and as such purchase quality and premium food. As the main contributor to the sales within each of these sectors, this may dilute the expenditure they could make on organic food specifically. Heavy users in total organic represent 20% of buyers and they are responsible for 80% of organic expenditure. You would expect these heavy users to be committed organic purchasers but they only spend 5% of their grocery shopping spend on organic products. None of them are exclusive organic users and they cross-shop across the retail quality tiers (Organic/Premium/Healthy/Standard and Value) extensively. In organic meat the situation is the same. There are 0.3% of meat shoppers who buy only organic and a further 0.1% who buy only organic and premium. The rest shop across all the tiers. This does however identify some of the scope for expansion and these heavy users must be prime targets for increased organic usage. The red meat heavy organic shopper will buy over six times a year but medium users just under twice and light users just over once. This level of frequency is low and would suggest little commitment from the light and medium buyers and a very mixed cross-tier purchasing strategy for the heavy organic buyer. There are 3.2 million households in GB who buy organic meat but there are only 68,000 who only buy organic meat. This figure is lower than that for any of the individual species, indicating that someone who is a loyal organic user of one species is not loyal to organic, when purchasing the other species. (Households who only purchase organic: Beef 108,000, Lamb 269,000, Pork 112,000, Red meat 68,000). Heavy organic meat buyers will have one or two children and be in social class ABC1; they may be younger and older family groups. They are over represented in London, South, Scotland, East England and the South West. Whilst beef is the biggest organic red meat sector, it is only 1.5% of total beef sales; Lamb is the strongest at 2.2% of sales. Pork is a clear third with organic being 1% of sales. Organic meat in Wales is currently worth £2.4 million and is growing at 3% a year. This growth is coming from new entrants into the market. Total GB is growing 10% ahead of Wales but the household penetration in Wales is higher at 13.1% compared to 12.9% for GB. Growth in Wales is coming from all age groups and social classes, with the under 28’s and the C2 groups being particularly strong. This report also looks at the retail market in Great Britain for organic produce; there are additional opportunities within the foodservice sector where a number of specialist organic restaurants are appearing and interest shown by some of the large operators in including an organic alternative on their menus. There are also opportunities for export of organic Welsh lamb; currently some exports to Italy are carried out and there is further potential to exploit and develop this market. The potential for export of light organic lamb is restricted to southern European markets due to the small size and high seasonality of the product. Hybu Cig Cymru is have ongoing discussions with potential buyers in countries such as Portugal, Spain and Greece; however to date, the small volumes required have precluded meaningful developments due to logistical difficulties. Recommendations Despite the generally positive outlook from a demand perspective, there is a need to address some of the factors that might discourage producers from converting, including disruption to the Organic Farming Scheme, price levels that are below costs of production, and lack of markets for some livestock categories, in particular light lamb. To address this, there is a need for: • better statistical data on current and future production levels and market shares; • continued efforts to support producer groups in developing markets for organic meat and in seeking to achieve realistic prices; • continued development of alternative marketing channels, building on Welsh PGI and organic status, including local multiple and smaller retailers, public procurement, distribution hubs and exports; • consumer promotion initiatives and increased Welsh organic meat presence at trade fairs; • improved production systems, supported by effective research and development and knowledge transfer; • improved integration of effort between organic sector businesses and the agencies that support the development of the Welsh meat and organic sectors; • better linkage with the dairy, arable and horticulture sectors to benefit from complementarity relationships between the sectors at production, market development and promotional levels

Organic farm incomes in England and Wales 2010/11 (OF 0373)

This report presents results of research on the financial performance of organic farms in the 2010/11 financial year (with 2009/10 data for reference. Carried out for the Department for Environment, Food and Rural Affairs (Defra), this research continues project OF0373. An analysis of the FBS/Defra Data Archive for 2010/11 found a total of 250 businesses with some organic land. To ensure the analysis undertakes a reasonable comparison of organic and conventional farms, the organic sample comprises holdings with at least 70% fully organic land (>=70% of UAA ha). Farms identified as “in-conversion” or those with less than 70% fully organic certified land were excluded from the analysis, providing a sample of 217 organic holdings. In total, data from 212 organic farms were suitable for inclusion in the analysis, as it was not possible to identify comparable conventional businesses for four organic farms, and one organic specialist pig farm was also not utilised (due to minimum sample size restrictions). The data was analysed as two samples; a full sample and an identical sample. The full sample analysis utilised data from all 212 organic farms and provides the best comparison of organic and comparable conventional farm income data in 2010/11, (2009/10 data is only provided for reference). The identical sample identifies year to year changes within systems, though the sample sizes are smaller as not all farms will be part of the FBS dataset for two years