Organic farmers have hit back at claims that consumer
demand for organic food is dropping as a result of the credit
crunch.
Peter Melchett,
Soil Association
policy director, said speculation in the national press that people
had stopped buying organic food because it was seen as a luxury
item was "completely untrue".
"This is still higher than other food sectors, which are
expecting a 2-3% increase."
While growth in the organic market had slowed from recent years,
market research company Mintel predicted a 10% increase in the
market this year, Lord Melchett said.
Increased costs
Costs of organic production had increased, but these had stayed
in line with conventional costs of production and there was no
financial reason organic farmers would convert back to conventional
farming, he added.
"All of us have to pay more for diesel but the main cost
pressure on farms is fertiliser prices, which doesn't affect
organic farms. And while organic feed costs have doubled,
conventional feed has more than doubled."
Guy Watson, founder of Riverford organic box scheme, said his
sales had increased by 10% in the past year.
"There's definitely been a slowdown, but it was inevitable as
nothing carries on at that rate [30-50% over five years]. Our
established customers are still interested in buying organic."
Markets
Rather than pulling out of organic production, Mr Watson said
most of the 13 farmers who supply produce for the box scheme were
looking to expand.
"They are committed to what they do and are looking to us to
find other markets for them.
"The organic market hasn't had an uninterrupted line of growth.
I have been doing this for 22 years and this is the third slow
down, so I'm not going to panic."
Richard Hampton, Omsco sales and marketing director, said the
economic situation had not altered consumer demand for organic
dairy products.
However he said the number of farmers converting to organic had
slowed as the return from conventional farming has increased, while
cost and supplies of organic feed made organic production less
attractive.
"We will be talking to customers to secure an increase so we can
give organic dairy farmers the confidence that money will be there
to cover rising feed costs."