The Canada-Ukraine Trade and Investment Support Project (CUTIS) and “Organic Standard” with the support of the Ministry of Economic Development and Trade of Ukraine presented the manual “I CAN EXPORT ORGANIC. Market Overview and Organic Products Regulation in Canada”.
According to Roman Vashchuk, Ambassador of Canada to Ukraine, who visited the presentation of the manual, at this moment, it is especially important to expand the range of Ukrainian products in the Canadian market.
“We hope that companies that use the information from the manual will be able to more effectively enter with their products to the Canadian market. We already observed positive dynamics in export in such spheres as furniture, footwear, textiles, and confectionery products. The activities of the CUTIS project bring real results, “said the Ambassador.
The growth of export of Ukrainian products during the first year of the Free Trade Agreement between Canada and Ukraine (CUFTA, came into force in August 2017) indicates that many businesses can use its benefits. Organic goods, whose production has a number of positive environmental impacts, are in high demand in Canada.
According to Zoya Pavlenko, environmental expert of the CUTIS project, the Canadian organic market is currently the fifth largest in the world, about $ 5.4 billion CAD (FiBL & IFOAM – Organics International (2018): The World of Organic Agriculture Statistics and emerging trends).
The Canadian organic market has been growing steadily over the past decade, outpacing the average food industry. So far, many Canadians have been interested in the organic sector: 2/3 of the population of the country buy organic products weekly. Moreover, the majority of these goods – organic food and beverages.
“Canada is one of the top 10 countries with the highest consumption of organic products. In 2016, Canadians consumed an average of 83 euros per person, “said Zoya Pavlenko.
All this opens great prospects for Ukrainian companies interested in selling their organic products in the Canadian market.
The Ukrainian organic market in the volumes is small. According to a study by FiBL & IFOAM, the sales of organic products in supermarket chains in Ukraine by 2016 amounted to 21 million euros, which is 143 times less than in Canada.
At the same time, the Ukrainian organic market demonstrates positive trends. According to Valentyna Zayets, Chief of the Department of Food Products Technology, Department of Food of the Ministry of Agrarian Policy and Food of Ukraine, there are 529 organic market operators, 304 are in agricultural production. Over the past 5 years, the number of organic producers has almost doubled. Organic production has been certified on more than 420 thousand hectares. This is about 1% of the total agricultural land in Ukraine. The rate of growth of organic production in Ukraine exceeds the world’s figures in 5 times, noted Valentyna Zayets.
“Organic production can be particularly interesting for small farmers,” she said.
As noted by Maria Makhnovets, a consultant on exports of organic products, the largest number of organic producers are concentrated in the south of Ukraine – in Odesa and Kherson regions. In the Odesa region, a cluster of companies specializing in organic production has been created.
Regarding the Canadian market, any agricultural product, called organic, is regulated by the Canadian Food Inspection Agency (CFIA). Exporting organic products to Canada, it is necessary to pay attention to customs tariffs and requirements for packaging and labeling of organic products, which may differ from both Ukrainian and European ones.
Sergiy Galashevsky, Director of the certification company “Organic Standard”, told about certification of organic products in the Canadian market. He also paid attention to such an important moment as a reputation in organic production.
“On the one hand, producers engaged in organic production have a better “image” in the market and often have the best export opportunities. On the other hand, it is easier to spoil the reputation of organic production. One unscrupulous manufacturer is able to spoil the reputation of the whole sector”, – says Sergiy Galashevsky.
Please note that the CUTIS project selects organic products among other export directions, providing both advisory and financial support to Ukrainian organic producers. The project is ready to compensate 50% of the company’s costs for certification according to Canadian organic standards.
In conclusion, Sergiy Osipenko, founder of the Scientific and Production Enterprise “Institute of Texmash”, president of “Organic Farming Association”, shared real examples how to enter into the Canadian market with organic products processing technologies. Sergiy Osipenko’s successes prove that the Ukrainian organic producer can enter the Canadian market, providing high-quality products to the Canadian consumer.
You can see the photo from the presentation on the Facebook project page
Please note that on the project site you can download the online version of the manual by filling out a small questionnaire at https://bit.ly/2A1vZcm