Marybeth Collins
Ireland’s organic farming sector has experienced steady growth, fueled by consumer demand, environmental concerns, and robust financial support from the Irish government and the European Union. Yet, significant challenges remain. Fragmented supply chains, limited processing capacity, and market volatility threaten to undermine Ireland’s ability to meet its ambitious goal of having 10% of all agricultural land farmed organically by 2030. One promising solution is the expansion of
Producer Organizations (POs), which can drive sectoral collaboration, enhance market access, and stabilize prices.
What Are Producer Organizations and How Do They Help Farmers?
Producer Organizations (POs) are formal cooperatives of agricultural producers who collaborate to improve their market position. Recognized by the European Commission, POs are legally allowed to engage in collective bargaining, joint marketing, and shared resource utilization. These organizations empower farmers by pooling resources, reducing transaction costs, and enhancing supply chain efficiency.
In Ireland, POs are relatively new in the organic sector. The Irish Organic Milk Suppliers Organization (IOMS), established in 2023, is Ireland’s first organic dairy PO and aims to unify organic dairy farmers to negotiate better prices and market conditions. Another example is Irish Beef Producers (IBP), which collectively negotiates cattle prices, demonstrating how POs can help stabilize volatile markets.
Organic Farming in Ireland: Current Status and 2030 Targets
At the end of 2023, 4% of Ireland’s agricultural land was under organic production, encompassing 180,000 hectares (445,000 acres) and involving over 4,400 certified organic operators. Sectors such as cattle and sheep dominate, with an emerging interest in dairy, tillage, and horticulture. Government support is substantial:
- €256 million (approx. $278 million) has been allocated under the CAP Strategic Plan 2023-2027 for organic farming.
- Farmers benefit from schemes like the Organic Farming Scheme (OFS) and Targeted Agricultural Modernization Scheme (TAMS), which offer 60% grant rates for organic investments.
The National Organic Strategy 2024-2030, launched in September 2024, targets a tripling of organic food value to €750 million (approx. $815 million) by 2030. Specific goals include increasing organic beef output to 12,000 tonnes and doubling milk production to 40 million liters. Critically, the strategy emphasizes expanding POs across all farming sectors to ensure coordinated supply and stable markets.
Key Barriers and Opportunities for Organic POs
Despite their potential, POs face significant challenges:
- Regulatory Complexity: Establishing a PO involves meeting strict EU and national criteria, including minimum member thresholds and detailed governance structures.
- Skills Gap: Farmers often lack expertise in supply chain management, marketing, and digital tools necessary for efficient PO operation.
- Scale Limitations: Small organic farms struggle to meet volume requirements for meaningful market negotiation.
- Trust Issues: Farmers may fear losing control or be reluctant to engage in formal structures, leading to "outside selling" that undermines the PO.
Yet, there are compelling opportunities:
- Establishing a central PO hub to provide resources, training, and a dedicated coordinator.
- Creating pilot schemes for farmers to explore POs before full commitment.
- Encouraging joint marketing and branding, shared logistics, and collaborative R&D.
- Leveraging digital tools for forecasting and coordination, enhancing supply chain transparency.
A notable success story is the Maximizing Organic Production Systems (MOPS) project, where coordinated crop planning and pooling resources led to a 112% increase in sales and a 40% expansion in cropping area.
Recommendations to Support PO Growth in Ireland
To unlock the full potential of POs in the organic sector, the following actions are recommended:
- Develop a comprehensive PO handbook tailored to organic producers.
- Simplify DAFM regulations for organic POs, particularly around member thresholds.
- Offer funding and training focused on supply chain management, marketing, and governance.
- Promote shared processing facilities and regional logistics hubs.
- Incentivize cross-sectoral collaboration through the formation of Associations of Producer Organizations (APOs).
Producer Organizations (also referred to as "Organisations" in Irish and EU contexts) represent a powerful tool for Ireland to boost organic farming, enhance farmer resilience, and achieve sustainability goals by 2030.
