Sales of organic food drop
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The credit crunch has claimed its newest victim with sales of organic food, drink and other products falling by 12.9 per cent.
This is the first time in almost two decades that there has been a drop.
Despite the modern trend of eating well, it would appear that cost-concious shoppers have lost their appetite for organic food. Perhaps a contributing factor to the drop in sales of the higher than average priced products is the claim made by last year’s report from the Food Standards Agency. Last year, after analysing 50 years of research, the Food Standards Agency found organic food was no more nutritious than conventionally produced food.
Critics said the study ignored possible side effects from pesticides and that organic farming may be better for the welfare of livestock.
The Organic Market Report, published by the Soil Association, revealed that organic products suffered another setback last year.
The most comprehensive study of the market showed that not only did shoppers spend less on organic products, but retailers also reduced organic ranges and shelf space.
The three biggest categories of organic food - dairy, fruit and vegetables, and fresh meat - saw supermarket sales fall by 5.5 per cent, 14.8 per cent and 22.7 per cent respectively.
The biggest drop was in organic bread and bakery products, where sales fell by 39.3 per cent, and alcohol, where sales dropped 30 per cent.
However, the sales of organic milk grew by one per cent, with 2009 being the best year for organic milk sales on record. Organic baby food sales also grew, passing the £100million mark, growing by 20.8 per cent.
In line with the economic recovery, the Soil Association predicts that there will be a slight growth in the organic market in 2010.
Clare Smith, of the National Farmers Union, said the drop in demand was ‘not surprising’.
‘When retailers cut shelf space of course sales will fall,’ she added - although she also predicted the situation would improve this year.
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