Organics is also referred to as biological, ecological or regenerative farming. An organic farming system is one that aims to work with natural biological cycles. Organic management recognises that, in any system, every element affects every other element and no one component can be changed or taken out of the system without affecting other components.

Organic management has a particular focus on optimal soil health and management. The soil is regarded as a living system on the basis that there is an essential link between creating healthy soils and healthy plants, animals and people. Fundamentally, organic management requires farmers to act proactively rather than reactively.

Organic management is based on a management system which aims to reduce or eliminate the need for most agricultural chemicals. Organic food is produced without the routine use of synthetic chemicals such as fungicides, herbicides, insecticides, growth regulators and soluble fertilisers.

But it is much more than “spray-free” or “residue-free”.

Organic farmers concentrate primarily on adjustments within the farm and farming system, in particular rotations using appropriate soil fertility management and cultivations, to achieve targeted production levels amd minimise the use of external inputs.

Key principles of organic farming are:

• Encouraging and enhancing biological cycles
• Maintaining and improving long-term soil structure and fertility
• Practising humane management of livestock
• Maintaining the genetic diversity of the agriculture system and its surroundings
• Cycling organic matter and nutrients within a production system
• Integrating management of soil, crop, and the environment for weed, pest and disease management
• Aiming to produce food of high nutritional quality in sufficient quantities
• Minimising all forms of pollution that may result from agricultural techniques
• Not allowing genetic engineering.

There are quite a few misconceptions about the principles of organic farming. Some of the more common misconceptions are discussed below.

• “Organic farming is farming without chemicals.”
  All material, living or dead, is composed of chemical compounds. Although organic farming does seek to avoid the direct and/or routine use of synthetic chemicals, naturally-derived chemicals are frequently used in fertilising, plant protection and livestock husbandry.
• “Organic farming merely involves substituting 'organic' inputs for so-called 'agro-chemical' ones.”
  One of the founding principles of organic farming is working with natural cycles rather than trying to alter them by using external inputs. Although you could replace a number of non-organic elements with organic ones, the best farms work to improve their systems rather than use straight substitution of elements.
• “Organic farmers don’t apply any fertiliser or manage weeds.”
  While working with the natural processes, an organic farmer still needs to replace the nutrients that are lost with the removal of production of the farm. There are now a range of mainstream companies that offer organic certified products to farmers that provide the farm with essential elements.
  Organic farmers are still required to manage the weeds on their farms to maintain farm production. This control includes more manual rather than chemical control of weeds.
• “Organic farming means that production will drop by 20% plus.”
  An organic system can be as productive as a conventional system, depending on the goal of the farmer. Any potential drop in production would depend on the farming system that is run prior to converting to organics and the production system that the farmer wants to run as their organic system.
• “Organic farmers can’t look after their stock.”
  An organic livestock farming system needs to have healthy stock to make a profitable farm. Therefore the animals need to be well looked after and treated well. The animals can be treated with certified organic inputs and a lot more work on disease prevention is carried out. However if an animal does not respond to organic treatment, then the farmer must use other methods of treating the animal. If this means that if a vet and conventional treatments are used, the animal is dealt with according to the certification level of the farm.
  
  There are a number of products that have been approved for use in organic farming systems that can be used to treat animals. However in any farming system, the best cure is prevention, and this is the approach that organic farmers embrace.
  
  All New Zealand livestock farmers must adhere to the Animal Welfare Act and treat animals accordingly.
• “Organic farming is a return to farming as it was pre-1940’s.”
  Farming practises and knowledge has greatly evolved since the early 1900’s and organic farming – like conventional farming – is making use of advances in our understanding of such things as mycorrhizal associations, rhizobia and the rhizosphere, the turnover of organic matter and other areas of soil life, crop and animal husbandry that modern science has revealed. Far from being a return to the past, organic farming is an agriculture system for the future.
• “Organic farming requires a change of lifestyle on the part of the farmer.”
  In recent years, organic farming methods have been adopted by a wide variety of farmers for a variety of reasons, including economic and social as well as environmental motives. Organic farming is certainly not the preserve of radical environmentalists.
• “Organic farmers have higher on-farm costs.”
  While some cost may increase under an organic production system, others will reduce. On average, costs like labour, brought in feed (per kg of dry matter) and fertiliser (per kg of nutrient) may increase, whilst other expenditure, such as vet bills and animal health costs, tend to decrease. On average, a well-run organic farm will see a drop in on-farm operational costs over time.

We have now had the Organic Milk Price for some time and it seems right to look back and remind ourselves the reason why it was implemented:

1. Reduce the volatility of milk price paid to farmers within a season (from opening forecast to closing price).
2. To pay a market price that if fair and reflects the true value of organic milk.

The organic milk charge ensures that we can pay farmers that take the time and energy to supply organic milk a market price whilst adding value. This process is taken by all business units within our Co-op; the major difference is the price of the milk and who gets it.

The charge value of 20% of the Organic Milk Price was selected not at random, but one that was looked at as being a fair amount for our Co-op. It represents a mid-point return for many of the different business units that our Co-op has.

It is important to note that this charge is not profit for our Co-op. Within the organic programme there are a number of assets that we leverage, such as the audit and food safety team, planning teams, sales teams, finance teams plus many others. Other costs that are also covered by the organic milk charge include plant improvements to help with organic manufacturing.

If we were to try to replicate the assets we have access to now, the actual total costs could be a lot higher and impact directly on the returns to you.

We do appreciate the interest you have in making your Organic programme the best it can be. We don’t mind the difficult questions on what we are doing; in fact, this shows us that you are challenging us to make the programme better for you and future organic farmers.

Please contact Stuart Luxton - Organics Business Relationship Manager.

Email: stuart.luxton@fonterra.com or  specialty.milks@fonterra.com

Mobile: 021 241 8797

• AsureQuality - www.organiccertification.co.nz
• BioGro - www.biogro.co.nz
• USDA - www.organiccertification.co.nz
• View the Farmgate Milk Price Advance Rates