Price war to hit organic conversion?
FARMERS may shy away from organic conversion if a supermarket price war over the produce breaks out, reports the Financial Times.
The newspaper reports that leading growers groups gave a lukewarm welcome to the Iceland chains recent plans to provide cut-price organic food.
Farmers who have converted fear their expense and efforts could be undone if a price war whittles away their 25-30% premium.
The newspaper says there are already signs that a price war could be looming.
Asda has cut organic meat prices by 8%, and the Co-op has pledged to slashed prices on 100 organic lines.
Organic advocates fear “heavy-handed attempts to transform organic food from middle-class speciality to mass-market phenomenon could strangle the sector in its infancy”.
The FT warns that farmers taking their first faltering steps into organic production will considering sticking with intensive production.
“This is a very young sector and it needs nurturing, not distorting,” said the Soil Associations Simon Brenman.
- Asda pledges to hold organic margins, FWi, 23 June, 2000
- British farmers lose out on organics, FWi, 14 June, 2000
- Supermarket switches to organic food, FWi, 14 June, 2000
- Icelands organic price promise, FWi, 21 March, 2000
- Financial Times 27/06/2000 page 17