21 April 2025
Can Producer Organisations contribute to Ireland’s organic sector?
Producer Organisations could play an important role in strengthening Ireland’s organic agriculture sector, a recent report commissioned by Teagasc has found.
The ‘Feasibility Study of Producer Organisations (POs) in the Irish Organic Sector’ report commissioned by Teagasc, with funding from the Department of Agriculture, Food and the Marine, and prepared by ifac, suggests that Producer Organisations may have a role in addressing many of the existing challenges being experienced by the sector, while also offering key opportunities for growth and sustainability.
The report details how fragmentation and weak links between producers and processors are significant barriers to growth in the organic market, but the formation of POs can contribute to improving supply coordination.
POs can reduce fragmentation by improved coordination, market access and better communication across the supply chain. By centralising data collection and dissemination, POs can offer more accurate insights into supply pipelines, helping processors and retailers manage demand more effectively, while reducing uncertainty about supply volumes, the report states.
Additionally, as new organic farmers going through conversion must find a new route to market anyway, organic POs are in a unique position. These farmers will not have the same product as before becoming an organic farmer and so will need a new buyer or new destination product line. This is a benefit for POs as it means that many will not have to leave their current buyer and make the switch to selling within the PO, they will need to look to new sales channels anyway.
Marketing benefits
By joining a PO, producers who are new to organics can also get more access to market information. By pooling resources and negotiating collectively, the report states, POs can increase the bargaining power of farmers.
POs could also present a means to reduce transport and processing costs, which are often higher for individual organic farmers.
With EU promotional funding aimed at boosting awareness of organic products, POs can also play a critical role in increasing the visibility of Irish organic produce. This could drive greater consumer demand, both domestically and internationally, by promoting the benefits of organic farming.
Export can be very difficult for individual farmers or growers to manage; however POs are better positioned to find international routes to market and negotiate with international buyers.
Another benefit is that POs can promote research, innovation and collaboration within the organic sector and give farmers a platform to share best practices, knowledge on organic certification, and innovative production techniques.