Sales of organic food in the UK have topped £1 billion for the first time, making the UK the third biggest outlet for organic food in the world. Three out of four babies eat organic food on a regular basis and sales of organic baby food have grown by 20 per cent over the last year. Overall, sales of organic food and drink are growing twice as fast as the conventional grocery market, at over 10 per cent a year.
The figures are revealed in the Soil Association's Organic Food and Farming Report 2003, the most comprehensive report into the organic market, which is published today.
Reliance on imports has decreased for the third year, boosting business for UK farmers. The amount of organic food sold at farmers' markets, farm shops and through direct delivery (box schemes) has increased by a third in the last year to account for a tenth of all organic food sold. It also appears that some organic shoppers are reducing their support for supermarkets and turning to local businesses. For the first time in five years, the share of the organic market made up by supermarket sales fell, from 82 per cent to 81 per cent, although the overall value of organic sales through supermarkets continued to rise significantly.
Patrick Holden, director of the Soil Association said, "The future for organic food is potentially very bright. The market is growing and imports are down because quality and availability of homegrown food is going up all the time. Shoppers are clearly showing that they want local food, giving a strong message to supermarkets to support this country's farmers. A major challenge and opportunity now exists for schools and restaurants to provide organic options, so that children and their parents can continue to eat healthy food outside of the home."
"Support must not only mean buying UK products but also paying organic farmers a fair price which covers the cost of production. There are currently some clear examples where this is not happening."
Scotland remains the nation with the greatest area of organically managed land at 58 per cent of the UK total. The South West is still the UK's leading organic region: over 1,000 organic farms are based in the area, accounting for a quarter of the country's total. Yorkshire and Humberside has seen the largest increase: there are now 149 organic farms – an increase of 30 per cent.
Welsh organic shoppers appear to be the strongest supporters of local farmers: 81 per cent said they would be more likely to buy if the product was of Welsh origin and 72 per cent of these consumers would also be willing to pay more.
The farm-gate value of UK produced meat increased by over 50 per cent, with the largest increases for table birds (66 per cent) and beef (77 per cent). For arable crops, the farm-gate value rose by 36 per cent and by 15 per cent for horticultural crops. The UK is approaching self-sufficiency in season for organic potatoes, carrots and parsnips. Demand for organic animal feed is predicted to almost triple in the next three years.
Until recently, buyers and supermarkets repeatedly reported quality problems as a major disincentive to UK purchasing. This situation was reversed this year with many buyers, wholesalers and food manufacturers praising the quality benefits of UK produce over potentially cheaper imports. Improved technical innovation, more stringent grading and greater experience along with a willingness to share information have helped. Opportunities still exist for UK producers, but careful market planning, innovation and sound marketing will be required.
These improvements should help reach the Government target whereby 70 per cent of organic food sold in England is sourced from English farms by 2010 but the Soil Association warns that there is still a long way to go.
Data for the Organic Food and Farming Report 2003 was collected from a range of sources including written information from 1,500 organic licensees and telephone interviews with key players in different sectors. It covers information relating to April 2002 – April 2003. The report costs £100 and is available from 0117 929 0661 or www.soilassociation.org. It has been produced with financial help from Alara Wholefoods, CCL Foods, Harvestime, Rasanco, The Organic Consultancy and Yeo Valley Organic Company.
