Canada Organic Farms: Conversion Rates

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Canada Organic Farms: Conversion Rates

After thorough and wide-reaching search through reputable media sources and authoritative agencies such as the Canada Organic Trade Association (COTA), the Global Organic Alliance (GOA) and the Canadian Organic Growers, the number of crop-growing working produce farms in Canada that transit to an organic status could not be found precompiled as the information appeared to be unavailable from existing data. However, by making some logical assumptions and leveraging already existing data, we were able to calculate the number of crop-growing organic farms that transit to an organic status each year.

USEFUL DATA

  • In 2015, there were a total of 5,053 organic operations in Canada. Of these, 1,542 were processors, manufacturers and retailers, 618 were livestock operations, 4,045 were primary producers that produced organic crops and 294 organic crops producing farms were in the transition process. That is, they were converting to organic status to receive a certification.
  • In 2016, there were 4,205 organic farms in Canada, producing organic crops. (screenshot here).
  • In 2017, there were 4,800 organic farms in Canada, producing organic crops. (screenshot here).

CALCULATIONS AND ASSUMPTIONS

Using a CAGR calculator, it was calculated that the number of primary organic farms that produce organic crops in Canada grew at a CAGR of 8.93% from 2015 through 2017, where the beginning value = 4,045 (the number of organic farms in Canada in 2015), the ending value = 4,800 (the number of organic farms in Canada in 2017) and number of periods = 2 (2017–2015).
To get the number of working produce farms that transit to organic status each year, it is assumed that the number of such farms grows at the same rate as the number of organic farms. That is each year, the number of farms that transit to organic status increases by 8.93%. Thus, each year, 0.0893 * 294 ≅ 26 working produce farms transit to organic status. It is assumed that this growth trend continues through 2018. Hence, it can be stated that in 2018, there were 26 crop-producing farms in Canada that transited to an organic status to become organic-certified.
Using the CAGR calculated above, it can also be calculated that in 2018, there were 380 crop-producing farms in Canada in the process of transitioning to organic status. This figure was calculated using the CAGR calculator, where, CAGR = 8.93%, initial value = 294 (the number of crop-producing farms in the process of transitioning in 2015) and the number of periods = 3 (2018–2015). These data equates to a final value of 380, that is, the number of crop-producing farms in Canada that were in the process of transitioning to an organic status to become organic-certified.

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