Organic food sales decline in 2010

The report says the outlook for 2011 is cautiously optimistic. Despite fragile consumer confidence in the wider economy, it notes positive signs of resilience and recovery for the organic sector overall. The biggest success stories were sales of organic beef (up 18%), organic baby food (up 10.3%) and organic textiles (up 7.8%). The definitive guide to organic trade in the UK, the Organic Market Report shows that shoppers spend more than £33 million a week on all things organic, and that 86% of households now buy organic products. Dairy products and fresh fruit and vegetables are the most popular categories, accounting for 30.5% and 23.2% of sales respectively. Although sales through multiple retailers fell by 7.7%, to £1.25 billion, Waitrose and Marks & Spencer anticipate modest growth for 2011, while Tesco, Sainsbury's, Morrisons and the Co-operative predict level sales year on year. Multiple retail accounted for 72.3% of the organic market in 2010. Organically managed land decreased by 0.6% to 738,709 hectares and now represents 4.2% of UK farmland, equivalent to more than the combined area of Somerset and Wiltshire. The number of UK organic producers fell by 4.2% to 7,567 in 2010, from a record high of 7,896 the previous year. Further key findings in the report include: · On average consumers bought organic products 15 times in 2010, compared to 16 times the previous year. · Sales of a wide range of products started growing again, including butter, yoghurt, beer and cider, herbs and spices, pulses and packet soups. · Sales through independent retailers and catering accounted for the remaining 27.7% of the market, falling by 0.75% to £480 million. Box scheme and mail-order sales grew by 1% in 2010 to £156 million – an encouraging result in tough trading conditions. · Production of organic vegetables and organic milk both fell in 2010 but cereal production is on the increase, buoyed by high grain prices and strong demand for milling wheat. · Poultry and egg production are set to fall in 2011 because of a combination of faltering consumer demand, high feed prices and the cost implications of impending changes to the EU organic regulations. · Organic products continue to attract shoppers from across the social spectrum. Those in the more disadvantaged socio-economic groups account for a third of spending overall. Roger Mortlock, Soil Association deputy director, said: "There is powerful evidence that consumers who care about the diverse benefits of organic will stay loyal, even during these tough economic times. Given the current uncertainties in the UK and global economy, it would be rash to make any predictions for the future organic market. "But the instability caused by climate change, population growth and resource depletion mean that business as usual in food and farming is not an option. As Caroline Spelman, Secretary of State at Defra, remarked recently, 'organic farmers are the pioneers of sustainable farming and have valuable lessons to pass on to the rest of the sector'."