Farming News - Lower premium prices for organic, boon for customers, bad news for farmers

Lower premium prices for organic, boon for customers, bad news for farmers

The latest Defra figures show that land in conversion for organic farming has dropped by over 60 per cent in the UK since 2007, although the amount of organic land has risen overall. The conversion process, which takes time to remove traces of pesticides and other chemicals from land, is the reason for the rise in organic certified land. Experts say this will stagnate or drop-off in coming years. image expired

Falling sales of organic produce since the onset of the recession have resulted in reduced interest from supermarkets, although veg box schemes reported growth. According to the Soil Association's 2011 Organic Market Report sales of organic products fell by £100 million (nearly 6 per cent) last year, continuing a three year decline in organic consumption. Some in the farming world blame the drop on waning interest among farmers, who converted to organic after being enticed by government subsidies and have since reverted to conventional methods.    

However, Roger Mortlock, Deputy Director of the Soil Association, said the fall in organic sales and land was based on the attitudes of policy makers in the UK. He said, "The recent blip in organic sales is very much a UK phenomenon – despite the worldwide economic downturn," and pointed out growth in the industry in several mainland European countries, where support for organic has been more forthcoming.

Exponents of organic farming remain defiant in spite of the latest figures. Organic farmers argue that the methods result in lower input costs and that using other sales routes than supermarkets, thereby shortening the supply chain, has its own benefits in terms of ex-farm prices and efficiency.

Based on its figures from 2010, the Soil Association described the outlook for the organic sector as "cautiously optimistic." It said the rate of decline in sales slowed significantly towards the end of last year. Nevertheless, the number of UK organic producers fell by 4.2 per cent to 7,567 in 2010, from a record high of 7,896 the previous year.

Kieth Abel, of veg box distributors Abel and Cole, said, "In 2011, [the organic sector] needs to challenge the perception that organic is elite and pricy. We need to remind and educate customers about the reasons to buy organic, and be clear about what it means. The recession hit organics very hard, but we’re through the worst of it. I’m optimistic"

Abel and Cole estimates it will see a 40 per cent increase in sales this year. Mr Abel attributed this to customers defecting from supermarkets, whose interest in organic products has waned. He said the situation was "a self-fulfilling prophecy;" the more the supermarkets contract their organic ranges, the less they will sell, but concluded, "That's great news for me."