Specialist research company Organic Monitor is forecasting that Fairtrade fresh produce is likely to make the biggest gains of any Fairtrade category this year. It also finds there will be winners in the organic food market despite the recession.
According to OM’s research drawing on the experience of the first month of 2009, the UK is leading the way in Fairtrade fresh produce with approximately a quarter of all bananas sold coming from Fairtrade producers. Amarjit Sahota, director of OM told freshinfo: “Retailers are realising that they need sustainable supplies and we are seeing initiatives similar to bananas on mangoes, pineapples and coconuts, and to a lesser degree on citrus.”
But Fairtrade fruit is not destined just for the fresh produce market and Sahota points out that Fairtrade fruit is also giving a boost to the ingredients and juicing sectors. “There is growth in Fairtrade biscuits and juices, for example, and fruit is being used as an ingredient in biscuits and of course is processed into juice,” said Sahota. “So we are seeing some of the companies, for example Agrofair, which started off in fresh produce, getting into dried fruit, ingredients and processing.”
As far as organic sales are concerned, OM believes food sales from discounters and other low-cost retailers are increasing at the expense of other retailers. Retailer private labels are also gaining popularity over manufacturer brands. The company’s latest research findings suggest that globally organic sales are expected to continue to grow, albeit at a slower rate. But it finds that the UK market has been the most adversely affected because of the harsh economic climate reducing consumer expenditure.
Sahota said: “Generally, the organic market has stabilised. I believe it is a matter of consumer confidence and when that picks up, so will sales of organics. People really are trading down so some have cut back on organic purchases or are going to lower cost retailers to buy them.”
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