INFORMATION SHEET
Summary:
The Organic Food and Farming report 2004 is full of good news - demand for organic food is continuing to increase as interest grows in where our food comes from and what’s in it. The most significant growth has been in direct sales through outlets such as farmers’ markets and home-delivery box schemes, reflecting the growing interest in personal contact with the dedicated individuals who produce organic food.
The shape of organic food and farming in 2003/04
A decade of growth
Over the last 10 years sales of organic food in the UK have increased ten-fold from just over £100 million in 1993/94 to £1.12 billion in 2003/04. During 2003/04, organic sales grew by 10.2%, at almost £2 million a week.
Fully organic land reaches a record high
Although land coming into conversion has slowed, the area of fully organic land increased by 18% in the reporting period to 630,299 ha. Organic and in-conversion production now accounts for four% of UK agricultural land on a total of 688,373 ha.
Direct sales top £100 million
More consumers are choosing to connect with agriculture by buying organic food direct from the producer. Sales through box schemes, farmers’ markets and farm shops have grown faster than any other retail outlet at 16%. Box scheme sales have soared by over 20%.
New payments reward farmers for environmental benefits
Organic farmers in England and Wales are to receive ongoing environmental stewardship payments from 2005, rewarding them for the wildlife benefits organic systems deliver and bringing government support in line with the rest of Europe.
Increased environmental awareness
Over three quarters of those buying organic food are now convinced of its benefits to wildlife, according to a new Soil Association/NOP opinion poll. This increased appreciation of organic farming’s environmental dividend may be partly due to public acceptance of the environmental benefits by government and conservation bodies.
Boost for organic food in schools and hospitals
Government procurement policy and this year’s Soil Association report on school meals have driven a strong emphasis for schools, hospitals and other public sector catering outlets to serve organic food. Seventy% of the UK public would like to see organic or locally produced food in schools. NOP opinion poll commissioned by the Soil Association, August 2004. A modest 1.2% share of UK public sector catering for organic food could boost organic sales by over £25 million. Over 300 schools throughout the UK have been in contact with the Soil Association about improving school meals.
Ethical Trade – a fairer deal for producers and consumers
In summer 2004 consumers were able to taste the first products to carry the new Soil Association Ethical Trade symbol. The new pilot project enables consumers to favour companies working to new ethical standards that ensure farmers and their employees receive a fair deal.
Static market share for UK producers
Despite the continued growth of the organic market and the setting of clear government targets for expanding UK organic production, little progress has been made this year towards import substitution. The overall level of imports has remained static at an estimated 56%.
New opportunities for organic restaurants and catering
More people can now enjoy organic food when eating out as the number of licensed restaurant and food service businesses doubled in 2003/04. The £26.8 billion catering market offers a huge opportunity for organic producers and processors, as a recent opinion poll indicates that 44% of the UK public would like to see an organic option on the menu when eating out. Ibid.
New markets for organic textiles and health and beauty products
More and more consumers and businesses are recognising that the organic lifestyle choice extends beyond the food we eat. This is creating new and exciting business opportunities for organic material suppliers. Consumers can now buy certified organic tanned leather and cotton, as well as soap, skin care products, shampoo, balms and essential oils.
Co-operation signals success
More organic producers are reaping the benefits of marketing groups offering a range of advantages, including long-term price and volume stability, improved access to markets, and sharing of labour, equipment and skills. A number of successful co-operative models already exist across the UK. Fifty one% of organic farmers are likely to develop alliances with other farmers in the near future. Farmers’ Voice 2004 Summary Report: Organic Farming, ADAS Consulting Ltd. July 2004.
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