Organic farm boom slows down in 2012

Prague, Sept 3 (CTK) - The boom of organic farms in the Czech Republic has slowed down notably due to the halt to subsidies for fledgeling organic farmers and only 20 new organic farms were opened in the first eight months of this year, according to statistics published by the Agriculture Ministry yesterday.

The number of organic farms in the Czech Republic increased by 403 to 3,920 last year.

This year's significant fall in the number of new organic farms is related to the fact that with no more money left for the purpose, subsidies for new organic farmers have been halted, Martin Leibl from the ministry's organic agriculture department told journalists.

"They will not be provided next year, either, so the growth in the number of organic farms will probably not be as high as it has been by now. State support was the main reason for farmers to be switching to organic farming," he added.

The area on which organic farmers worked at the end of August this year took up 11.55 percent of the total farmland area in the Czech Republic. Its share increased to 11.4 percent last year from 2010's 10.55 percent.

The total extension of farmland for organic farming grew by 5,717 hectares to 488,644 hectares seen at end-August 2012.

The extension of arable land used for organic farming decreased from 59,281 hectares at end-2011 to 59,103 hectares at end-August 2012. The extension of organic vineyards increased by 23 hectares to 988 hectares this year and the extension of organic orchards by 267 hectares to 6,720 hectares.

Permanent grass areas have the highest share in Czech organic farming in the long term. They serve mainly as pastures for cattle. These areas covered 404,856 hectares in August this year, 6,796 hectares larger than at end-2011.

The number of organic food producers fell by 164 to 482 in January-August this year, which the ministry ascribes to the fact that Billa supermarkets have stopped finish-baking of organic baked goods from frozen semi-finished products.

Among the most frequently processed organic food products are meat, milk and dairy products, vegetables, fruit, baked goods, pastry and pasta. There are also 77 registered organic wine producers.

According to the plan of action approved by the cabinet in December 2010, the share of organic farming should increase to 15 percent by 2015.

Leibl does not fear at the time being that the significantly slower growth in the number of organic farms will endanger the government plan's fulfilment.

"It remains to be seen how subsidies from the year 2014 will look like. But I think that it is realistic to fulfil the plan [of 15 percent share of organic farms]. It is not 100 percent sure because discussion is now under way on what rates the subsidies for grass areas and arable land will have," he noted.

The share of organic food in the total food market should treble from the current roughly one percent. Also, now over a half of organic food products on the Czech market are imported and the share of domestic food products is to be raised.

Organic farming in CR in 2010-2012:

Dec 31, 2010 Dec 31, 2011 Aug 25, 2012 Growth in Jan-Aug 2012 Growth in Jan-Aug 2012

(pct)
No.of organic food producers 626 646 482

-164 -25.39
No.of organic farms 3,517 3,920 3,940 20 0.50
Farmland for organic farming (ha) 448,202 482,927 488,644 5,717 1.18
Share of organic farming in total farmland area (pct) 10.55 11.40 11.55 0.15
Arable land (ha) 54,937 59,281 59,103 -178 -0.30
Permanent grass areas (ha) 369,272 398,060 404,856 6,796 1.7
Orchards (ha) 5,128 6,453 6,720 267 4.13
Vineyards (ha) 803 965 988 23 2.38
Hop fields (ha) 8 10 10 0 0
Other areas (ha) 18,054 18,158 16,967 -1,191 -6.56

Source: Agriculture Ministry