Organic fresh produce has “turned a corner” and is fast recovering from the damages of recession, despite a slump in sales across the category in 2009.
According to the Soil Association’s Organic Market Report 2010, the decline in organic fruit sales has halved in the 12 weeks leading up to 24 January and the forecast for 2010 is positive.
The report, released during the Natural & Organic Products Europe show in London this week, claims there are signs of increasing confidence among consumers and predicts a growth of between two and five per cent for the organic market in 2010.
The slump in total organic fresh produce sales stood at -13.4 per cent in the 52 weeks to 24 January, but at -3.7 per cent in the three-month period just before.
Finn Cottle, Soil Association trade director, said: “We are delighted with the performance of the organic produce sector and take great confidence in these figures. The double-digit growth years [for the whole organic market] may be over, but the good news is that the data on organic sales already confirms that a corner has been turned and the dip of 2009 has ended.”
But the report reflects the effects of the “deep, damaging recession” on the organic market, as sales of organic food, drink and other products fell by 12.9 per cent in the UK last year.
Organic sales fell, from a record high of £2.1 billion in 2008 to £1.84bn in 2009. The three biggest categories of organic food in terms of retail value - fruit and vegetables, dairy and fresh meat - saw supermarket sales fall by 14.8 per cent, 6.5 per cent and 22.7 per cent respectively.
Home-delivered organic fruit and vegetable boxes also saw a 9.8 per cent slump in sales.
Supermarkets now account for 73.7 per cent of organic sales and it was observed during the launch that the individual policy decisions of supermarkets have had a significant effect on product performance.
At the event, Aconbury Sprouts managing director Jim Hardy questioned the policy on delisting products after his company was dropped by one major multiple, but retained by Waitrose.
Cottle replied: “I liaise with supermarkets and organics are on their agendas. They are very much pulled by consumer demand - if demand falls off, then listings do too. Supermarket customers are perhaps not the traditional organic consumer base, but the retailers are not deliberately turning away.”
Hardy told freshinfo: “Over the last 18 months our orders with Waitrose have gone up and up and [the retailer] supports organics across the board.
“But I’m not sure that all supermarkets know where the demand is coming from and whether the decisions are made on consumer demand or what the buyers perceive.”
Soil Association policy director Peter Melchett said Waitrose deserved “a pat on the back” for its courage in taking a strong non-GM stance. Waitrose’s organic sales dipped by only 3.5 per cent and it is now predicting growth of three to five per cent this year.
Tesco has also reported that its sales of organic vegetables are increasing, after more than a year of decline.
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