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Foreword
I am pleased to publish this second Organic Annual Report on progress towards delivering the Scottish Executive Action Plan for Organic Farming. A great deal has been achieved over the last year, mainly due to the willingness of the industry to work with the Executive to implement the Action Plan.
As noted in last year's report, we have already delivered substantially on our Organic Action Plan commitments by developing the Organic Aid Scheme and working to develop market links. However, it has not all been plain sailing and progress towards some of our targets has been slower than expected. In particular, both the area of organic farmland and the number of farmers supported under the Organic Aid Scheme have fallen over the last 2 years, leading in turn to a drop in the total amount of funding provided. There are two main reasons for this. A large number of farmers joined the scheme in 1999 and 2000. These farmers are now leaving the scheme, having completed their 5 year agreements. This does not mean that they have stopped farming organically, and they remain eligible to apply for a further 5 years funding support under our new Organic Aid Maintenance Scheme. Also, the full impact of the improvements and extensions introduced to the scheme last year has yet to be realised.
We are therefore not complacent about our progress towards our targets and I would like to reconfirm the Executive's support for the organic farming sector and its contribution to the protection and enhancement of the environment. Consumer demand for organic food has grown over recent years and the UK market now stands at over £1 billion. We want to see Scottish producers take full advantage of the opportunities presented by this market growth. As I write this, the Executive is reviewing agri-environment scheme payment rates, including the Organic Aid Scheme rates. We aim to ensure that the payment rates provide an appropriate level of support and encouragement to farmers so that we, in turn, can meet the targets set out in the Organic Action Plan.
Looking further forward, the Executive has, with industry representatives, begun to develop the concept of Land Management Contracts, which represent another opportunity to ensure that our support for organic farmers is well-focused. I will want to make sure that the final proposals take full account of our objectives for the organic sector in Scotland.
Finally, I would like to thank the many organic producer representatives who are helping to deliver the Organic Action Plan and, in particular, the members of the Organic Stakeholders Group and Organic Stakeholders Marketing Group, who have given freely of their time and expertise. It is only by working together that we can fully achieve the ambitious targets for the organic sector that are set out in the Organic Action Plan and, in doing so, help to build a prosperous and sustainable organic sector in Scotland.
Rhona Brankin,
Deputy Minister for Environment and Rural Development
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