Organic foods take a hit as recession eats into sales

07 April 2009

After 15 years of steadily rising sales on rising awareness of green concerns, the organic foods industry seems to have got the thumbs down from recession-hit consumers in the UK. Eggs, poultry and vegetable sales plunged in the last few months of 2008 according to the Soil Association, the leading certification body for organic food.

However, the overall sales of organic food products increased 1.7 per cent to £2.1 billion in 2008. The increase, masks the strong growth during the first half and a sharp decline in the second half in the wake of the economic downturn on weak consumer support.

The Soil Association claims that sales of organic products fell in volume terms rather than value terms for the first time.

Lord Melchett, the association's policy director said that the industry faced a major problem in the last quarter of 2008 with poultry being particularly hard hit and a panic response from the public and retailers driving a sharp decline in eggs, chicken and vegetables sales.

Sales of organic chickens fell by 25 per cent in the final three months. Earlier a high profile welfare campaign by celebrity chef Jamie Oliver had boosted sales at the start of the year. Fears of hard times in the downturn kept people from paying the premium for their meat especially with the uncertainty.

Organic chicken at Tesco, for example is priced at £12 a pound. A free range bird, on the other hand costs £9 a lb and a standard chicken £6.40.