The LaForge Family Farm’s Holistic Approach
March 2, 2025
Toronto. 11 Feb, Wednesday
Canada’s exports to the United States exceeded $40 billion (U.S) in agricultural products, including baked goods, cereals and pasta, fresh vegetables and fruit, and ethanol in 2024. This was supported by 16 years of Canada and the U.S. maintaining a progressive organic equivalency arrangement that allowed seamless trade of certified organic products. This framework was a cornerstone of North American food diplomacy, fostering growth, innovation, and consumer trust across borders. But the Trump administration’s decision to impose a blanket 35% tariff on select Canadian goods, including organic exports, has disrupted this equilibrium.
The tariff change is not the only disruption facing the Canadian agriculture market, as Ottawa has brought another significant regulatory shift. The Canadian Food Inspection Agency (CFIA) began enforcing new import procedures for organic products as of May 26, 2025. Importers are now required to upload a digital copy of the organic product certificate—or reference a Unique Reference Number (URN)—with each shipment via the Integrated Import Declaration (IID) system. The changes aim to strengthen oversight, improve traceability, and combat fraud in the organic food sector, as per CFIA.
The CFIA confirmed that 32% of complaints about country-of-origin mislabeling resulted in violations. Experts are calling for stricter enforcement and clearer labelling standards to protect both consumers and the integrity of Canada’s organic certification system.
The impact of uncertainty in cross-border relations has seen 22% of businesses in the Canadian agriculture sector raising prices, according to a July report by the Canadian Federation of Independent Business CFIB. However, exports to the US under the Section 321 duty-free de minimis provisions remain unaffected. Orders under $800 USD will still not incur tariffs, offering relief to small businesses that export low-value products, which means that larger operations are likely to feel the impact more, as they will face higher tariffs from both the US and corresponding retaliatory measures.
Organic farmers and processors are particularly vulnerable. Unlike conventional commodities, organic products often involve complex supply chains and mixed ingredients, making them susceptible to bureaucratic hurdles at the border. Even under the Canada–United States–Mexico Agreement (CUSMA), tariff exemptions require strict documentation and rules-of-origin compliance—barriers that many small and mid-sized organic businesses struggle to meet.
To add more burden to the organic food producers in Canada and importers of organic food in the U.S, as of July 15, 2025, the USDA began enforcing its Strengthening Organic Enforcement (SOE) rule, requiring all importers of organic products into the U.S.—including those certified under Canada’s COR system—to obtain USDA-NOP (National Organic Program) certification. Temporary allowances for COR-certified importers ended, and only NOP-certified entities were listed in the Organic Integrity Database. This enforcement aimed to strengthen compliance and safeguard the integrity of organic trade.
While the U.S. is working to increase the number of certified entities, the new rule presents challenges, potentially placing Canadian products at a competitive disadvantage. The certification process can take several months, posing a significant burden for small and medium-sized enterprises.
While the North American market faces these market disruptors, the Indo-Pacific region is rapidly becoming a key destination for Canadian organic food exports. According to Export Development Canada (EDC), the organic food market in the region is projected to reach US$95.9 billion by 2029, nearly doubling from its 2024 size. This surge is driven by rising incomes, growing health awareness, and a younger, more informed consumer base increasingly concerned about pesticides and food safety, globally.
Canadian organic exports are keeping pace with this demand. In 2022, Canada exported $554 million worth of organic fruits, vegetables, and processed foods—up from $417 million in 2021, according to the Canada Organic Trade Association (COTA)
Organic equivalency arrangements with countries such as Japan, Taiwan, and South Korea have facilitated market entry by allowing Canadian-certified organic products to be sold without additional certification.
These agreements are helping Canadian producers tap into high-value markets where demand for clean, premium food is accelerating.
Canada’s organic food sector stands at a crossroads. Long buoyed by stable trade relations and progressive equivalency frameworks, producers now face a shifting landscape marked by tariffs, regulatory tightening, and rising compliance costs. While small exporters may find temporary relief under de minimis exemptions, larger operations and processors are grappling with new barriers on both sides of the border.
Domestically, in 2024, Canadians spent $9.01 billion on organic products, with fresh vegetables and fruit capturing 5.7% and 4.9% of the mainstream market share, respectively.
These figures reflect not only consumer demand but also the resilience and adaptability of Canada’s organic sector. With 7,558 certified organic operations—6,702 of which are COR-certified—Canada continues to uphold rigorous standards that foster trust, sustainability, and innovation.
As global markets evolve, Canadian organic producers must navigate complexity with agility, leveraging both domestic strength and international opportunity
