Sales of organic eggs were up by nearly 16 per cent in 2014, according to the latest market report produced by the Soil Association.
Figures released by the Soil Association showed that egg sales increased by 15.8 per cent last year - adding to anecdotal evidence that organic sales enjoyed a revival in 2014. John Campbell, chairman of Glenrath Farms, one of the biggest producers of free range eggs in Europe, told the Ranger towards the end of last year that he had seen a significant increase in demand for organic eggs and Roy Kerr of the Scottish Egg Producer Retailers’ Association (SEPRA) reported that demand for organic eggs was increasing. The UK’s biggest egg packer, Noble Foods, launched two new organic brands during 2014.
In its previous annual market report the Soil Association said that, in 2013, whilst the organic market overall grew by 2.8 per cent, organic egg sales were down by 2.2 per cent. Its latest report shows that egg sales bounced back strongly over the last 12 months in an overall sector that was continuing to grow. Sales of organic products increased by four per cent in 2014. The growth was welcomed by the association’s chief executive, Helen Browning.
“Three years ago commentators were writing off the organic market in the UK. Now, with a third year of steady growth, and against a falling overall food market, it’s clear that reports of organic food’s demise were premature to say the least,” she said. “This re-invigoration may be partly related to an improving economy, but it’s also testament to the fact that retailers and manufacturers who continued to invest in organic lines have continued to thrive. Now, even the discounters are beginning to stock organic ranges,” she said.
She said that innovation was helping to drive growth, with the organic sector investing strongly in marketing and new product development. She said that 2014 saw more organic versions of established brands, organic recipe boxes for busy occasion shoppers and wholesalers selling direct via mainstream online shopping outlets.
In the egg sector, new launches included Mac’s Farm - a regional brand launched in the south east of England by Noble Foods. Noble also launched an organic version of its successful high welfare brand, happy egg. Happy egg organic won industry recognition for Noble when the company was presented with the Marketing Initiative of the Year Award by the British Free Range Egg producers’ Association (BFREPA) in November last year.
The two launches were also welcomed at the time by Soil Association trade director Finn Cottle, who said, “The addition of a happy egg organic
option, extra regional organic listings and the slightly better availability of product on shelf have come together to secure sales and keep the growth figures rising.”
Complaints in the past from the Soil Association have pointed to both the shortage of shelf space for organic eggs and shortages of supply. In its market report for 2013 the association said that organic egg production was down by more than eight per cent. It said that more producers had given up organic egg production because they were sceptical about future prospects in the face of rising costs and tightening standards.
In the latest market report, Helen Browning said that supply issues were still a concern. “Over the last couple of years, this report has expressed concern that supply might not keep pace with demand as the organic market returns to growth,” she said in the report. “We have seen the land area in organic fall, and market conditions have led to reduced production - especially in poultry and eggs, pigs, horticulture and arable crops.
“This is still a concern,” she said, although she said that over the past year the numbers of producers leaving had slowed. “The better news about organic support payments from 2016 should boost the confidence of farmers. It feels as though we are close to turning a corner, and retailers and brands need to step up investment in UK production to secure their future supply base.”
Figures released in the 2014 market report showed that shoppers spent an extra £1.4 million a week on organic products and that the organic market exceeded £1.86 billion, returning overall sales to levels of 2009. Growth in sales across Soil Association Certification symbol holders increased by 7.7 per cent.
The report indicated that dairy products and fresh fruit and vegetables were the most popular organic purchases. Overall, the strongest market growth was through online shopping and box schemes (11.7 per cent) and independent retailers (5.7 per cent), which, it said, offered the choice and convenience of extensive organic ranges in one place. More than a quarter of spending on organic products (27.9 per cent) was in the dairy aisles, with yoghurt sales increasing by 13.8 per cent and dairy sales increasing by 6.5 per cent - which, said the report, was a stark contrast with the three per cent contraction of the non-organic dairy market.
“With nearly one third (29 per cent) of shoppers seeking out ethically sourced and environmentally friendly products and over two thirds (68 per cent) making the choice to support local farmers and businesses, the organic sector allows consumers to make more environmentally sustainable choices, with over 83 per cent of UK households purchasing organic products in 2014,” said the report.
It said that feedback from retailers indicated that shoppers were becoming more health conscious and organic products offered answers to questions about food quality and provenance. Nutritional credentials of organic received a significant boost in July 2014 when landmark nutritional research from Newcastle University showed that organic crops and crop-based foods (including fruit, vegetables and cereals) were up to 60 per cent higher in a number of key antioxidants when compared with non-organic, it said.
The report said that, with organic sales increasing, confidence amongst organic businesses was also improving. Some 63 per cent of organic businesses predicted growth 2015. Of these, 60 per cent anticipated double-digit growth
