Susanne Padel - Presentation

Embedded Scribd iPaper - Requires Javascript and Flash Player
In time of recession, can organic food be a reality for the majority?
Susanne Padel Institute of Biological Environmental and Rural Sciences
Outline
  

10 year trends of the organic sector Who is the organic consumer? Some more recent trends of the organic market Can organic food be a relality?
Organic agricultural land by region (2007)
www.fibl.org
Global organic market 19992007




97% of consumer demand in North America (43%) and Europe (54%). Asia, Latin America and Australasia are important producers and exporters Supply problems for fruits, vegetables, beverages, cereals, grains, seeds herbs and spices Growth at lower rate is expected to continue
UK organic certified land area since 1997
thousand ha 800 700 600 500 400 300 200 100 0 '97 '98 '99 '00 '01 '02 '04 '05 '06 '07 NI Scotland Wales England
UK Organic sector development since 1997
2000 1800 1600 1400 1200 1000 800 600 400 200 0 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 Land area (thousand ha) Retail value (£ million) No of holdings
6
5
4
3
2
1
0
Organic market and sales channels
1800 1600 1400 1200 1000 800 600 400 200 0 2004 2005 2006 2007 Farmers markets
Box & mail (producer) Box & mail (retail)
I ndependent retail Supermarkets
Source: KeyNote (2008)
Who are the organic consumers?
We used to think  Higher social class and education
• 2/3 are A,B,C1 (compared with 1/2 in
population)
Fewer children and older  Mainly living in London, South East, South West and Wales But appeal has widened  Manual and casual workers, students and pensioners now account for 50% of consumers

Why people buy organic?
(% consider very important)
        
Quality and taste (31) No GM ingredients (26) High animal welfare standards (25) Avoiding food with pesticides (25) Avoiding artificial colours & additives (23) Wanting to know where food come from (22) Fair prices and wages for farmers &workers (20) Farming methods encouraging wildlife (20) Impact of production and transport on greenhouse gases and climate change (14)
(Source: Market Tools/ZOmnibus for Soil Association, January 2009)
Two broad segments of consumers
Regular/committed (15%)  Claim to buy more then 40% of food as organic  Well educated; health aware  Range of income levels  Believe in organic product quality  Seek other attributes
Account for > 80% of spend
• Environment • Animal welfare • Fair trade and local
Occasional (30%) and rarely (48%)  Claim to buy between 35% and 10% as organic  More price & convenience sensitive  More sceptical about some claims  Less knowledge Account for < 20% of spend
Knowledge and availability remains a problem
¼
of those that don’t buy regularly would like to know more.  Organic products are bought unknowingly  People believe to buy organic if in fact they are not (e.g. on farmers markets, natural)  Limited knowledge legal status of ‘organic’ and annual inspection/certification requirements
More recent trends
 Market
has grown by 1.7% between 2007 and 2008 (£2.1 billion)  Nine out 10 households buy organic food
•increases in the last 5 years •from £51.30 to £50.55
 Broader
appeal  Average spending has fallen
Dairy products sales)

(29.5% of
Above average growth (0708)
• +10% milk • +11.5 cheese • +1.5 yoghurts
 

Now the largest sector Commitment from key players to communication campaign Comparatively low premiums
Fruit & veg

(26.2 % of sales)
Available in supermarkets but also box schemes, local shops, farmers markets  Reductions in consumer spend during 2008  Heavy reliance on imports
• Despite steady increase in
horticultural land area in the UK
Meat

(<10%)
Above average growth rates
• +13% for red meat and • +17% for poultry

Downturn in supermarket sales in late 2008
• Lower value cuts and products (beef burgers) • Cheaper outlets • Affected by grain price increases • Animal welfare important ‘Chicken out’ campaign
Wildlife
Difficulties balancing price Fair
Quality Health Taste Animal welfare Climate change
Local food
Labelling jungle?
Expected responses to the recession... Different types of shopping
Fun
Source :Bord Bia Research – Feeling the Pinch
Shopping Habits will Change…
Fun
•
Shoppers will first try to reduce cost of Vital essentials
– Promotions, Own brand, Discounters
• •
And will then cut out Fun expenditure Reluctant to cut back on Lifestyle or Sanity purchases – Some affordable luxuries may actually increase!
Source :Bord Bia Research – Feeling the Pinch
Specific food purchases –environmental and ethical
65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
% main shoppers (all mentions)
25 27 15 15 13 15 18 14 18 12 13 12
24 19 11 9 11
9
23 18
25 12 11 11 11 14 18
8
I have specifically bought…
...food that has been produced locally in the area I live 2003
...organic food
...foods that support ...foods with high Fairtrade animal welfare standards 2006 2007 2008 2009 Source: IGD Consumer Unit, 2009
2004
2005
MyReports
© www.igd.com/analysis
Summary and conclusions
 Consumers
have reviewed spending on premium organic foods  People continue to seek ways to make a difference  Organic market largely driven by committed regulars
Can organic food be a reality for the majority?
 Availability
remains a problem  Expensive image, not always reality
•Checking prices •Premiums vary between outlets
 More
home cooking and less convenience food and changes in diet  We need clear messages about the wider benefits of organic food
The World of Organic Agriculture 2009
10th edition published by IFOAM and FiBL, in conjunction with ITC. Contributions from more than 40 authors Contents: Results of the global organic survey Special focus on Latin America Global market, standards and legislation, crops, food security, other issues
www.fibl.org
UK market by product categories in 2009
Other 26.0% Meat 8.9% Cereals 9.4% Dairy 29.5% Fruit and vet 26.2%
Land use in organic agriculture worldwide
17% 62% 6%
Permanent grassland Arable land Permanent crops
15%
www.fibl.org
Other