Organic Food and Drink Sector Stabilises

In 2008 the organic food industry was worth £2.1 billion, but last year sales dropped by 1.5 per cent, and 2011 saw a 3.7 per cent slump.

Organic milk is the best-selling product in the sector, claiming a growth of 2.2 per cent, while sales of tea and yoghurts rose by 19 per cent and 9 per cent respectively. Organic babyfood retains dominant, with a sector share of 57 per cent.

The horsemeat scandal has been cited as one possible cause for the rise, due to the subsequent consumer demand for authenticity and traceability.

The figures were produced by Nielson for the Soil Association, which views them as the first sign of economic recovery. New advertising guidelines to promote organic produce are soon to be announced following the go-ahead from the Advertising Standards Authority, in order to present a clearer message to consumers.

Peter Melchett, policy director of the Soil Association, said: “There is little doubt that consumers are reappraising the organic offer in stores and making choices which guarantee a high level of sourcing integrity. Organic poultry is having a revival after a few slow years – a real sign that food assurance is becoming more relevant to shoppers.”

Mr Melchett commented that he is hopeful of a further boost as a result of rigorous ASA-backed research allowing licenced farmers and food producers to utilise approved statements.