Executive Summary
What the report is about
This report discusses commercial pilot studies testing a range of protocols for intensive organic vegetable production. It addresses strategies including the identification and overcoming of structural, technological, and social impediments to conversion, and documents possible pathways for conversion in the intensive vegetable production industry.

Background
Organic farming is estimated to be growing at 30% a year worldwide in response to market forces (Troeth, 2001). Export market demand for certified organic produce, especially vegetables, currently exceeds supply (Kinnear, 2000) and in many cases produce attracts premium prices (Fielke, 2001).

The Australian organic industry is small relative to the conventional food production industry. This trend is reflected in the Tasmanian vegetable industry where only five, out of approximately 1500 commercial vegetable growers are certified organic. Only one organic vegetable grower is producing on a large-scale commercial basis.

Tasmanian packing and exporting companies have increased their interest in organic produce in response to the global trend for increased consumption. The opportunities are considered substantial enough by some to initiate, develop and support a commercial organic vegetable industry in Tasmania. Export markets have considerable appeal due to demand for year round supply of fresh organic produce and an average price premium of 23% above conventional product.

A scarcity of data on the commercial production of intensively cropped organic vegetables, combined with market potential, were the primary drivers of this four-year project. The result was a partnership between the Department of Primary Industries, Water and Environment (DPIWE) and Field Fresh Tasmania (FFT), with funding from the Rural Industries Research and Development Corporation (RIRDC).

Aims/Objectives

• Test and evaluate, on a commercial scale, organic production protocols for a range of vegetable crops.
• Document case studies assessing the production protocols, cost, net yields, market premiums and cost effectiveness of intensive organic vegetable production.
• Provide information and training in organic production protocols for both existing and prospective organic vegetable growers.

Methods used
A 10-hectare site, located amidst intensive vegetable production enterprises on the northwest coast of Tasmania, was selected for the trial. Conversion of the site to a certified organic status was conducted during the project and was a principle feature of the work. The trial site consisted of three paddocks, which were split lengthwise to form six units of approximately 1.2 hectares each. A fiveyear cropping rotation was then overlaid onto the site plan representing an intensive vegetable production system of four years crop and one-year pasture/rest phase. Crops chosen consisted of those considered relatively easy to grow organically (broad beans, snow peas, carrots) as well as those with the highest market demand but greater difficulty to produce organically (onions, shallots).

Although an initial 5-year rotation was selected as a guide at the beginning of the trial, this was reviewed prior to each season and adjustments made according to the market information and the previous season’s production data.

 Production Protocols: Production protocols for the major crops (onions and carrots) and for test crops (shallots, broad beans and snow peas) were progressively developed, adapted and refined throughout the trial for improved performance.

Carrots and Onions: Inter-row spacing configurations were manipulated for greater soil cover and to improve accessibility and effectiveness of weeding machinery. Planting times for carrots were altered to reduce insect burden and to meet market requirements. Addition of organic fertiliser and nitrogen budgeting were incorporated to improve nutritional health of crops. Bed preparation and preemergence weeding (flame) were adjusted for weed management purposes in onions.

Shallots, broad beans and snow peas: A protocol for shallots was established however, bulbs from the first crop were mostly unmarketable due to a late planting date and a colder than usual season.

A second shallot crop was planted in the subsequent season using the former season’s protocol.

Planting layout and density of broad beans were manipulated for improved weed control, airflow and accessibility. Snow peas were deemed uneconomical due to high hand harvesting costs and low yields, and were ploughed in as green manures.

Yields: Yield data from the trial was collated and details are presented in the report. Yields were mostly expressed in terms of net yield (t/ha) of Class I product and pack out (percentage yield of Class I product). The exception is where either low total yield or low product quality occurred, in which instance only gross values are provided.

Carrots and Onions: With the exception of the 2002 crop yields, the packout values for the harvested carrot crops were similar or better than average conventional yields indicating an overall high quality. The carrot crop yield in 2002 was low, primarily due to wet weather and wet soil preventing pre-emergence flame weeding. The yields of organic onions were low compared to conventional yields. A heavy weed burden may have impacted on yield. Cutworm and accidental removal of crop plants with mechanical weeding implements may have also had a minor effect. A change in planting configuration in 2002 contributed to a further decline in yield during that season.

Shallots, broad beans and snow peas: The quality of product harvested from shallot crops was considered to be of a suitable market quality and comparable with conventional crops. However, due to agronomic difficulties experienced, it is difficult to draw any meaningful conclusions or views relating to yields and associated factors. Difficulties experienced related to a later than ideal planting time and colder growing conditions which were incompatible with variety requirements. Harvested seed from the first broad bean crop was retained for subsequent use. Sufficient product from the second broad bean crop was harvested specifically for test marketing purposes and as a consequence extensive field data on yields and associated factors was not collated. Snowpeas were produced for one season only. Due to the high costs associated with the harvest and packing of crop, the volume harvested was extremely small and not sufficient to produce reliable data for analysis.

Marketing and Economics: Market opportunities were assessed prior to crop selection and planting.

Produce from the trial was sent internationally to the United Kingdom, Japan and interstate.

Carrots and Onions: Initial market feedback on the first year’s production of carrots was very positive regarding quality, however all the markets indicated that premiums for pre-conversion and in-conversion organic produce are difficult to achieve. Data from the first crop indicated that organic carrot production could cost $100-$130 a net tonne more than conventional carrot crop production.

This poses a difficult financial dilemma for the pre-conversion and conversion periods in the absence of a suitable market premium. Despite low onion yields, pack-out figures were high indicating excellent onion quality. The majority of the harvested bulbs fitted market specifications and were exported to the United Kingdom. The bulbs were solid with tight skins presenting them as ideal for long term storage and shipping. Based on this experience they are considered comparable with onions grown using conventional production practices.

Shallots, broad beans and snow peas: Shallot bulbs from the first crop were mostly unmarketable due to late planting date and colder than normal growing season. In 2002, FFT planted a shallot crop using the protocols established. Problems occurred when irrigation and rain delayed weeding. Due to the small recovery of Class 1 product in the second season the view was taken that the volume was too small to justify export. Instead, the product was marketed in Australia – at higher prices than those achievable in export markets. Commercial samples of broad beans were airfreighted to Japan and the quality was reported to be of a suitable standard. Difficulties were experienced due to the extremely narrow production window, which prevented a sustainable marketing campaign.

Evaluation was undertaken in Japan on the options of supplying product in complete pod form and individual beans, but both options proved to be commercially non-viable. Test marketing in Australia was undertaken and although initial quality feedback was positive, fungal deterioration became apparent with some product losses experienced by clients. Demand for broad beans over the production period was limited and clients reported that product demand was strongest during winter months. Whilst the product was considered to have niche interest, the prices were well below the levels required to make it commercially viable. Snow peas were grown in 2001; the crop was sown in two plantings for sequential harvest. The hand harvesting costs for the first planting outweighed the market return. The variety was determined to be unsuitable and achievable prices were extremely low. Although product quality was considered suitable, hand harvest meant production was uneconomic.

Weed and Pest Management: Weed control in the absence of herbicides was the dominant pest management issue in this project. Weed management was particularly challenging in the allium crops as they do not form a crop canopy to assist in competition against weeds. These crops require constant weed control through to harvest. However, non-herbicide weed management protocols for onion, carrot and broad bean crops were established and are detailed in this report. They consist of a range of well-timed mechanical techniques. Evidence of disease was detected in a number of crops grown at the organic trial site. However, whilst crop diseases occurred at the site, they were not considered a major management issue. Copper and sulphate applications were used as the only form of fungicide at the site; the mixture is preventative and requires regular applications. Overall, the effectiveness of the fungicide treatments was good. Poor results were generally viewed as due to poor timing in application. Overall insect pests, like disease, were not considered a major problem at the organic trial site. However, they were detected in some crops at levels high enough to cause economic damage. Insect pest management included the use of natural pyrethrins.

Agronomic challenges for converting to intensive organic vegetable production: The three principal agronomic challenges identified by the trial work are:

• Weed Management: Weeds proved to be the greatest pest management issue associated with intensive organic vegetable production and were a significant factor in the final production costs.
• This project indicated the major challenge to improve the economic viability of intensive organic vegetable production was to decrease the level of hand weeding required.
• Soil Health and Nutrition: Soil structural damage was noted at the site and was primarily attributed to heavy vehicle use on moist soil at harvest. In addition, despite legume rotations, available nitrogen decreased rapidly over the trial period. Improvements in soil organic carbon were identified as essential, while pH levels were considered satisfactory. Long term soil monitoring at the site would be beneficial.
• Skills: An organic producer needs to be highly skilled with additional and/or different skill sets to conventional farmers. The project team believe that many conventional farmers that may decide to convert would need additional training and skills support particularly through the conversion period. Such support is likely to enhance the success rate of the conversion process and subsequent organic cropping operation.

Results/Key findings
Over the four-year period of the project, the organic industry in Tasmania has continued to grow, though it still remains small compared to the conventional industry. The project findings identify the likely areas of concern that conventional farmers, wishing to convert their operations to certified production systems, would encounter. Given the management challenges encountered at the site (particularly due to high weed seed banks in the soil), the success of conversion would be enhanced if a three-year management period preceded the conversion period. The project team also suggests partial farm conversions as a viable step towards whole-of-farm conversion or even as maintained partial conversions. This would assist in spreading economic risk associated with conversion.

Recommendations
Specific recommendations for future work and to assist in addressing the issues identified in this project are: Research and Development (R&D): Regional R&D projects focussing on improved mechanical weed management are recommended. Scope also exists for systems research into weed interactions with crops and the potential for defined and acceptable weed thresholds. A research focus on maintaining and building soil health and nutrition under high production pressures could help in determining the most efficient level of farming intensity.

Organic Learning Centre: The identified issue of skill shortage could be addressed through the establishment of an organic learning and demonstration centre. This facility could integrate education and training with research and industry development. An established facility could also provide the basis of long term monitoring sites for comparative organic/conventional soil and cropping system health.

Economic analysis: The economics of organic production are complex when compared to conventional production. Preliminary indications in this project indicate increased production costs that are offset by a premium price for the primary crops of onions and carrots. Though indications of premium prices in excess of 20% are evident, premiums are likely to be extremely variable into the future. Specific regional economic studies of the costs of organic production are recommended, with a focus on farm-gate prices and full gross margin analysis.