At that time, most organic dairy products came in from BC. Alberta’s only organic dairy with product in the marketplace was Vital Greens Farm and its 50-cow herd at Picture Butte. They have been certified since 2006 and selling fluid milk, chocolate milk and yogurt to the Calgary farmers markets and select health food stores across Alberta.
Organic status doesn’t happen overnight. Initially at least, producers are in it more for love than for money. Arnold Van Os of Van Os Dairy in Wetaskiwin milks 220 Jersey cows and cares for another 250 “dry” stock plus calves. In 2005 he considered going organic, and in 2007 initiated the process all well before there was a processor in place. It took three years of hard work and red tape for his farm to be certified organic (for pastures, hay, feed crops) and one a full year for his herd. For owners of conventional herds, this an arduous process; blood, sweat, tears and a steep learning curve. It’s not for everyone. Fortunately, ARD provided consultants and experts to make this transition smoother.
Still, after a period of due diligence back in 2007, Alberta Milk was ready to provide an opportunity to dairy farmers.
According to Denise Brattinga of Alberta Milk, they along with ARD hosted a series of meeting around the province in early 2007, discussing organic milk production and marketing opportunities.
“We asked producers to indicate interest by registering with Alberta Milk. Of those who registered, nine producers began the transition process, and eight were organically certified last year, with the last farm being certified in December 2010.”
Keri Sharpe, Organic Specialist with ARD worked with the producers on the organic certification process to help with the knowledge transfer and connection with the larger organic community. This was a challenging endeavor however the commitment of the farmers and participants was great. The producers believed in what they were doing and kept working through all the issues until there is local organic dairy in a major chain in Alberta.
In October of 2010, this tiny, struggling sector of the dairy industry received a major injection of capital and know-how when Jonathan Avis, president of Saxby Foods, entered the picture.
Saxby Creamery began processing skim, one per cent, two per cent and whole milk products. All are now available in Safeway under the O Organics label, with chocolate milk, sour cream, cream cheese and yogurt soon to be added.
Avis has some well-defined reasons for taking what some would call a huge gamble.
“I firmly believe that in the long term, producing and processing regional food to regional consumers will be the way of the future, for both economic and nutritional reasons,” says Avis.
“The current economy is putting great financial pressure on regional Canadian food processing companies from cheaper US imports. For long term survival, Saxby needs to focus on niche, value-added products that are in demand regionally. Dairy fits our core strengths, and organic fluid milk value-adds to our dessert manufacturing.”
In 2011, the relatively small number of consumers who demand organic dairy products has a variety of reasons for seeking them out, but the general focus is on finding an alternative to what they see as a compromised food system.
According to Robbie Avis, president of Verge Permaculture Inc. of Calgary, “It’s probably true that the nutritional values, protein, calories etc., are substantially the same in organic and conventional milk, but that’s not the whole story. Organic milk is more about what isn’t there than what is. What isn’t there are GMO feeds, pesticides, herbicides or chemical fertilizers at any point.”
With a perceived increase in food sensitivities and allergies among North Americans, many people turn to organics as a healthier alternative for themselves and their children.
Jonathan Avis stresses that the term “organic” refers to the production methods, not to the end product. “Organic is primarily a commitment to the sustainable production of wholesome food, with minimal impact on the soil and ground water systems,” says Avis. “In our efforts to produce cheap food, we’ve been poisoning our land and our water. At Saxby, we’re trying to reduce our carbon footprint.”
But price is a factor. Retailers are only too aware of consumers who talk organic but buy conventional because they balk at the premium organic price. However, Saxby Creamery plans to narrow the gap between organic and conventional products.
“We want to help make the transition from conventional to organic products more affordable for consumers. We’ll challenge national brands using conventional milk ingredients in products such as yogurt,” he says.
This product category is currently being transported thousands of miles to market and is vulnerable to local production by a competitor using organic milk because the organic premium is less than their transport cost to market.
Avis is confident in Saxby’s organic future. “As costs and selling prices continue to come down, and the public continues to be educated on the merits of organics, a broader market will evolve.”
According to an AC Nielsen survey, in a recent year organic sales of fluid milk product represented less than one per cent of the total market. But the increase in organic sales in that year was nearly 20 per cent — impressive by any standards. Organic dairy sales flattened during last year’s global economic meltdown, but they appear to have recovered in North America, which is now the world’s largest consumer of organic food and drink. A 20 to 25 per cent increase in sales is projected for 2011.
Increased demand for organic dairy products in Alberta could have a major effect on agriculture in this province. With organic sales increasing faster than organic milk production, the increased consumer access to products will, it is believed, encourage more producers to consider going organic.
The effect of the growing demand is evident in our burgeoning farmers market movement, in groups such as slow food, and the locavore movement, which got its start with the popular 100 Mile Diet. Instead of dismissing it as a fad, market analysts treated it as a serious trend, and supermarkets are devoting ever-increasing space to organic products.
For Jonathan Avis it was one more gamble, but a solid supply contract with Safeway assured the essential cash flow for the $2 million retrofit.
“It also allows Saxby to be first to market to produce private label organic dairy products for other western based retailers from a more central distribution location,” said Avis. “And it allows us to purchase, receive and process milk in bulk, whether organic or conventional, for production of other products in both dairy and dessert categories.”
For Alberta Milk, the organic producers and Saxby Foods, it has all come together well. Better still, Alberta consumers now have access, through Safeway and selected smaller outlets, to organic dairy products from local herds.
“If we as producers and processors do not start taking greater responsibility (for what goes into our food), we’re in trouble,” says Avis. “It’s time for us to step up.”
Article written by Judy Schultz for Organic Alberta.
