Growing demand for organic produce

SCOTLAND’s organic farmers can at last look forward to some good news, the sector’s annual conference has been told.

Annual organic sales figures for 2013 are likely to show their first increase for f ive years when published on March 12 by the Soil Association.

Caroline Mohamed Shahin — the organic marketing consultant at rural college SRUC, which organised the conference at Cockburnspath — said demand was again growing, with Scotland recording higher growth than the rest of the UK last year.

Sales of organic grocery goods north of the border rose 9.4% to £12.7 million, while the overall market was up 3.9% to £54.6m to November.

Organic producers have, since the onset of the economic downturn, taken a battering. Scores have quit.

The market had up to 2008 shown steady growth, with sales hitting a record £2.113 billion.

They have since plummeted, as consumers pulled in the purse strings in response to the wider economic problems. In 2012 the market was £1.64bn.

The economic upturn last year and return of the feel-good factor has, however, seen consumers return to organic produce, and the Soil Association figures will confirm that.

Debs Roberts, from Caledonian Organics, said data from Kantar Worldpanel showed spending and the volume of organic beef up in the last quarter to the highest level for some time.

Beef now accounts for in excess of 76% of overall organic meat sales and volume. Organic pork is also up, but organic lamb’s 15.8% share of meat spending b e t we e n September and December was at its lowest level for years. Sales have shown a consistent decline for a year.

Ms Roberts said the increase in beef sales happened at a time when the premium for organic over conventional had fallen from £1.50 a kilo to the 30-40p now being seen.

The drop is due to a combination of factors, including cheaper imports from outside the EU, with organic beef from the Ukraine available at £2.75 a kg against the £5.30 recorded at the peak in Scotland in September.

Ms Roberts said the premium for organic lamb received by farmers fluctuated wildly last year and the average was just 10 ppk.

Roger Baird, a director with grain merchant WN Lindsay, said the organic cereals sector was performing well, with a premium of about £100 a tonne being paid for all organic crops.

He said the growing number of independent craft brewers and increased production of organic whisky augured well for organic malting barley, which is now trading at £250 a tonne — £100 more than conventionally grown grain.

He pointed to markets for organic wheat and peas benefiting from the international success of Scottish salmon as the demand for grain and legumes in fish feed was soaring.

The conference was also told about two initiatives being developed.

Organic Scotland aims to improve links between producers, retailers and caterers to highlight where supplies are available.

Laura Stewart, the Soil Association Scotland director, said there was a need to boost market intelligence information and awareness of the organic food and drink offering in Scotland.

The association is behind an organic food trail project, which has received £10,000 of support from Scotland’s community food fund. The trail will be developed in Edinburgh to increase awareness across the chain and encourage consumers to meet producers.

Another aim is to host ‘ meet the buyer’ type events where producers can collectively showcase their produce to representatives from retailers and caterers.