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UK’s organic food sales may revive

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SALES of organic foods and beverages in Britain are beginning to stabilise, after falling in a weak economy, and could revive this autumn as a new harvest of fresh fruit and vegetables fill supermarket shelves, the Soil Association said.

The association, which certifies most of the organic produce sold in Britain, said sales decreased by 3 per cent in the 12 months to mid-June, a slower pace that the 12 per cent decline in the corresponding period in 2009/10.

“The sales have stabilised over the last year, even though there has been a slight decline. Recession has had its impact, with many consumers reviewing their food budgets,” Soil Association trade director Finn Cottle said.

“At the same time, availability of organic foods was affected as supermarkets cut back on organic food stuff shelf-space,” she added, noting that supermarkets accounted for about 72 per cent of sales of organic food and drink.

Leading food retailers such as Tesco added hundreds of discount lines during Britain’s economic downturn to cater for cash-strapped customers, reducing the amount of shelf space available to more expensive organic alternatives.

Cottle said better results were, however, expected in October, “when (fresh) organic food stuffs come into the market”.

Mintel senior food and drink analyst Kiti Soininen said rising food inflation had forced many consumers to reassess their spending priorities.

She said competition from foods with other ethical credentials was also a factor in the decline in organic sales.

“Organic food has also faced greater competition from other categories with an ethical positioning such as fair-trade, animal welfare and food provenance,” she said.

A survey released by the UK consumer group Which?, conducted in mid June 2011, found that a large number of consumers preferred non-organic value foods over organic food.

“Thirty eight per cent are now less likely to buy organic meat compared to a year ago, and 43 per cent are less likely to buy organic fruit and vegetables.”

At the same time, “Nearly half of shoppers (46 per cent) are more likely to buy value-range fruit and vegetables,” the survey said.

Soininen said she expected the market to grow slowly in the near future and that the long-term future of organic food and drinks would depend on, “whether the market can convince consumers of the value of the organic proposition, as having something tangible and relevant to offer, above and beyond competitors like mainstream food and other ethical food”.

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