Organic food and farming is becoming more mainstream in Britain with producers attracted by premium prices while health and environmental issues have helped to drive increased demand from consumers.
”Ten years ago we were at the periphery of national debate. Now we are the heart of it,” said television journalist Jonathan Dimbleby, who is president of the Soil Association, Britian’s leading certification body for organic food and farming.
”But this surge of public support is not merely about marketing. It is a symptom of a deepening and widening public concern about health and the environment,” he added during a two-week nationwide event known as ”organic fortnight”.
Many organic farms have been opened to the public this month as part of the event which runs from September 2 to 17 and includes a major food festival as well as numerous childrens’ activities and special store promotions.
Market information company AC Nielsen estimates that organic products currently account for 2,4% of food and drink sales in Britain, up from 2,1% a year ago and 1,8% at the same time in 2004.
Its market share varies widely, with organic baby food grabbing nearly half the market for that type of food but beer, wines and spirits taking just 0,3%, the company said.
AC Nielsen business insight director Jonathan Banks said there was a growing willingness among consumers to buy into things they perceive to be healthier.
He noted price remained the main deterrent, with surveys showing 61% of consumers who are not buying organic food cite expense and only 10% skepticism over health claims.
”To trade up to organic once in a while is a relatively easy thing to do because food has never been better value for money than it is now,” Banks said.
Kevin Goodfellow, who converted his farm in south-west England to organic beef and sheep from conventional dairy in 1998, says consumers appear more willing to pay the higher prices necessary to support organic production.
”I think because of the [high] cost of producing it you need a premium. It used to be that people just wouldn’t pay it,” he said, adding organic had also benefitted from increased interest in buying locally produced food.
”People associate organic with ‘they know where it is coming from’,” he said.
Goodfellow said many farmers also saw a switch to organic farming as a way to stay in the industry at a time of falling farm incomes and reduced European Union support payments.
”Most of us want to stay in farming. If there is an incentive [to switch to organic] most farms and farmers are willing to give it a go,” he said.
National Farmers Union organic adviser Alex Dinsdale said many members had recognised that in some circumstances there were benefits to converting all or part of their farm.
”We see it as alternative way for our members to market their produce. For some it can be a way of providing a premium although the size of the premium will vary,” he added.
AC Nielsen’s Banks said British supermarkets had also been backing the organic sector.
”It is a way for food marketers to address their corporate responsibility and looks good for their PR. It creates a halo effect,” he said.
Banks also said the sector had scope for further gains.
”I think you still have quite a bit of headroom [for organic sales] in the UK,” he said. – Reuters