Ludmila Dulskaya
During the pandemic, people began to think more about the quality of food, and interest in organic products grew. But now the purchasing power of the population has fallen sharply. Does organic farming have a future in the new conditions? What difficulties will agro-enterprises face when they decide to engage in the production of organic products? Says the chairman of the board of the Union of Organic Farming Sergei Aleksandrovich Korshunov.
The Union of Organic Farming Association is the largest Russian independent public movement for organic agriculture and the biologization of farming, healthy, natural products, a safe environment, a fair price for farmers, and rural development. The Union has existed since 2013, unites more than 350 agricultural producers and about 800 participants. More than 70 members of the Union have a certificate of the Russian or international system of organic certification.
Organic agriculture aims to produce the most natural and healthy products. Agricultural producers who have chosen this direction for themselves work in partnership with nature, strive to reduce the negative human impact on the environment and take responsibility for maintaining the ecological balance.
In the production of organic products, synthetic mineral fertilizers and chemical plant protection products are prohibited. Only organic fertilizers and biological means of protection are used, which requires certain adjustments in agricultural technologies. As a result, the final plant product has a brighter, richer taste and aroma, but its yield is an order of magnitude lower than that of producers using agrochemicals.
What do we grow?
There are crops that are impossible or commercially unprofitable to grow according to the principles of organic farming. Basically, large organic producers are engaged in field crop production, in the list of main crops: wheat, soybean, oilseed flax, corn, sunflower. Small farmers, who have barely left the volume of personal subsidiary farming, are more often specialized in vegetables. "In organic" it is quite easy to grow pumpkin, tomatoes in protected and open ground, garlic, onions. It is more difficult with potatoes: in the fight against pests and diseases, it is difficult to manage only with biological products. The yield of organic potatoes is significantly lower than those using intensive technologies. Given that the cost of these products on the market, as a rule, is low, we have to admit that it is not profitable to produce it. Even carrots and beets have higher margins than potatoes.
Among the members of the Union of Organic Farming, only three grow potatoes, among other things. The farms are located in the Perm Territory, Volgograd and Leningrad Regions. Their potatoes turn out to be completely different - the specifics of the climate affect.
How do we grow?
In Russia, unlike many other countries of the world, the production of biological plant protection products is very well developed. About 95% of drugs are of domestic origin. But it is important to remember that in order to achieve a result, biological preparations must be localized, they must be selected empirically - what works in Volgograd may not work in Kaluga. In addition, the result of exposure to a biological preparation is not immediately visible.
Another difficulty of organic farming for medium-sized farmers is that in this area there is still no agricultural support from producers of means of protection. Companies specializing in the production of chemical plant protection products have a staff of consultants who accompany agronomists: they draw up treatment schemes, answer questions from agricultural producers, and provide samples of preparations. Few adherents of biological technologies have such a service.
It is possible to grow excellent products without the use of chemistry, but it must have its own consumer.
Who are we selling to?
Today in Russia there is not a single federal or local retail chain that does not present organic products. In 2020, ANO "Russian Quality System" conducted a study that made it possible to find out who are the main buyers of organic products. As expected, first of all, these are mothers who purchase goods of this category for their children and themselves, as well as adherents of a healthy lifestyle, for whom such products are an indispensable part of a nutritious diet.
Now about the prices. Until 2020, organic vegetables in Europe cost only 10-15% more than non-organic ones. It is believed that up to 15% is the difference that a person usually does not pay attention to when making a purchase decision. Unfortunately, in Russia we pay more for organic products, this is due to the fact that the market for farm products is not developed in our country. If the volume of organic production was higher, the difference in selling price would be the same.
Today there is no competition. If a farmer has organic potatoes in small quantities, he understands that he can sell them for 150 and 250 rubles per kilogram. There are no analogues, we set any price, and those buyers who try to use mainly useful products will buy.
The main task of an organic producer is to find consumers who share his values in order to ensure sales.
And what about exports?
The main consumers of organic products in the world are the USA, the EU countries and China, due to the size of the population and the size of the consumer market. For Russia, the main export market has always been the European Union. We exported fat-and-oil crops there as raw materials, and before we introduced protective duties - organic grain. Now the EU market is not yet formally closed for us, but I think it's a matter of time.
Russia can supply organic products to China, the United Arab Emirates. But the main orientation of all domestic agricultural producers in the current conditions will, of course, be on the domestic market - we have a huge one. As for vegetables, they are cheaper in Europe than in Russia, so there has never been an export.
Does the industry have prospects?
During the pandemic, consumer demand for natural organic products increased, and sales increased significantly. What will happen now, during the military-political crisis, is still difficult to imagine. Demand for organics is unlikely to jump up this year - of course, it is highly dependent on purchasing power. The main thing for every farmer now is not to lose production volumes.
In the future, I think that Russia will be forced to follow the same path that all other countries have gone: sooner or later, small farmers, for the most part, will become engaged in the cultivation of organic products. Small and medium-sized farms will never be able to compete with huge agricultural holdings in terms of production costs: they have outdated equipment and worse seed material, which means that in order to sell, they will have to offer the consumer something that has additional value. Organic production provides this additional value.
The situation that has developed now will change the view of the state and society on how agriculture should be in our country. Agricultural holdings are, of course, great, they already exist and will continue to exist. But in the local domestic market, further development belongs to small and medium-sized farms.
What do farmers need to go organic?
The first step is to look for a market. You need to start by answering the questions: “Can I sell? To whom? How much? Our Union will help and suggest how to grow organic products using biological preparations. Do you need to analyze whether the agricultural technologies you use allow you to switch to organic? Is there enough equipment, are there suitable fields?
Since 2020, we have been implementing the Organic Agriculture - New Opportunities project and training farmers for free on the basis of certified agricultural enterprises, using a grant from the President of the Russian Federation for the development of civil society.
The certification procedure in accordance with GOST 33980-2016 can be completed in accredited certification bodies - there are about 12 of them in Russia. In some regions, the state compensates part of the cost of the procedure for small and medium-sized businesses. Certified producers receive the right to place an organic product label and are included in the register of the Ministry of Agriculture of the Russian Federation. A single state sign - "green leaf" - is placed on the packaging along with a qr-code, by which the buyer can go to the website of the Ministry of Agriculture and the manufacturer's page.
If you want to develop this area, but do not plan to get certified, contact the Union anyway. There are cases when the company's sales channels are already built, and there is no particular need to go through a complex and costly certification procedure, since buyers already trust it. Two-thirds of our members are farmers who produce products that are actually organic.
What benefits will farmers gain by growing organic produce? Fairer sales price and greater customer loyalty. People will know that you produce the most natural and healthy products. The eternal fear of the consumer is to buy something with nitrates, filled with pesticides and agrochemicals. Now even those who do not have a lot of money prefer to buy farmer's rather than industrial cottage cheese. “I'd rather eat 100-200 grams, but of a quality product, than half a kilo of a dubious one,” is the position of a modern buyer. About the same with vegetables. In organic production, constant checks are carried out, there are guaranteed no harmful substances in the products.
Is there a green revolution?
In Europe, over the past 15 years, most farmers have begun to produce natural products without the use of chemicals. I think it will also be in Russia. In fact, we are already in a state of "green revolution". Most manufacturers, in fact, use integrated protection systems - chemicals, coupled with biological ones, and insect pests are fought with the help of entomophages. I think that approximately 10-15% of these farms will become pure organics.
The main objectives of organic agriculture have always been to ensure the absence of diseases and effective pest control. Now, taking into account the development of biological means of protection, which we have observed over the past 5-7 years, it is quite possible to cope with them (when growing most crops).
Let me emphasize once again: all over the world, it was vegetables and fruits from the very beginning that occupied a larger segment of the total volume of organic products produced. In Russia, on the contrary, the situation is the opposite - the largest volume falls on field crop production. It will be great if those who have never been involved in agriculture, those who have not yet established processes, try to start everything from scratch and start growing vegetables. If you conduct agriculture competently, responsibly and conscientiously, you will not remain in the red.
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