The latest Welsh Organic Production and Market Report from Organic Centre Wales shows that the Welsh organic sector saw significant growth to more than 950 producers in 2008.

The annual survey of producers shows an increase from 100 producers a year converting in 2005 and 2006, to 150 a year during 2007 and 2008.

The survey suggests that organically managed land in Wales now extends to more than 100,000 hectares - around eight per cent of Welsh agricultural land, the majority being grassland. Horticultural and arable production cropped land areas are still small, although accounting for a relatively high proportion of total Welsh land use of this type.

The survey found that extreme weather conditions have impacted on Welsh organic horticultural production in the last three seasons. Sowing, planting and harvesting activities were all disrupted at times, but crops were affected differently by the variations in temperature and rainfall. Market demand increased year on year, through expansion of the organic market, but it is unclear whether markets will continue to grow in 2009.

However, of all Welsh organic sectors, confidence was highest among horticultural producers in 2008, with 59 per cent believing prices to be high enough - a slight increase from 2007. The survey found that around 30 per cent of producers felt prices rose in 2008 and a similar number expect prices to rise further in 2009, although costs have risen and 35 per cent expect further increases - no producers expect input costs to fall.

Holdings producing mixed market crops and potatoes are the most prevalent, with considerable quantities of potatoes, roots, brassicas and mixed crops grown. Prices vary considerably between crops, and by market route.

The survey showed that autumn 2008 saw significant supplies of organic produce available and a tightening of consumers’ finances, leading to organic fruit and vegetable prices being reduced by both multiple retailers and larger box scheme retailers. However, there are still opportunities for both existing and new horticultural producers to grow more organic fruit and vegetables, but markets must be researched first as the threat of market changes and cheaper organic imports remain.

The report concludes: “Industry stakeholders and producers themselves need to be proactive to develop existing and new markets… the organic sector needs to tackle perceptions that organic produce is always more expensive.”

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