04/04/2011

Sales of organic products fell 5.9% to £1.73 billion in 2010, a further fall on the 13% fall in UK sales in 2009, although the rate of decline did slow significantly throughout the year. The figures showing a decrease come from the Organic Market Report published today (4^th April) by the Soil Association.

Nevertheless, the organisation said their outlook remains cautiously optimistic for 2011 sales. Despite fragile consumer confidence in the wider economy, the newly published report does show positive signs of resilience and recovery for the organic sector overall, with the most significant success stories being sales of organic beef (up 18%), organic baby food (up 10.3%) and organic textiles (up 7.8%).

The Organic Market Report also shows that UK shoppers spend more than £33 million a week on all things organic, and that 86% of households now buy organic products. Dairy products and fresh fruit and vegetables are the most popular categories, accounting for 30.5% and 23.2% of sales respectively.

The Soil Association’s optimistic stance appears to be justified; Waitrose and Marks & Spencer have announced that they anticipate modest growth for the organic sector in 2011, while Tesco, Sainsbury’s, Morrisons and the Co-operative have predicted level sales year on year. However, organically managed land decreased by 0.6% to 738,709 hectares and now represents just 4.2% of UK farmland. The number of UK organic producers fell by 4.2% to 7,567 in 2010, from a record high of 7,896 the previous year.

High feed prices have hit organic producers as well as conventional farmers; today’s report suggests that organic poultry and egg production will fall in 2011, with high raw materials costs and “faltering consumer demand” given as the reason behind this. 

Unfazed by the Market Report’s less comforting findings, Soil Association deputy director Roger Mortlock said, “There is powerful evidence that consumers who care about the diverse benefits of organic will stay loyal, even during these tough economic times. Given the current uncertainties in the UK and global economy, it would be rash to make any predictions for the future organic market. But the instability caused by climate change, population growth and resource depletion mean that business as usual in food and farming is not an option.”