4m organic co-op folds

8 February 2001



4m organic co-op folds

By Alistair Driver

AN organic farming co-operative with a turnover last year of 4 million has folded, blaming its demise on the recent move to mass marketing of organic produce by supermarkets.

The Organic Marketing Company, based in Ledbury, Herefordshire, sought shareholder approval for voluntary liquidation on 25 January.

Pending approval it has ceased to trade.

In a statement, the company says the co-op growers who own it have been hit very hard.

But it says they will continue to develop markets for their organic produce that will provide viable returns.

It blames a sharp downturn in sales to small businesses, who make up the majority of its customers.

Their sales, in turn, have been hit by the dramatic expansion in organic produce offered by the major retailers, the statement says.

The business, which had a turnover of 4m last year, has attempted to develop markets outside the big retailers for its organic farming members since its formation in 1992.

“Their experience of trading with supermarkets during the last three years had proved to be financially unsustainable,” the statement said.

The companys fall was precipitated by the decision of the big supermarkets to give organic products serious attention, rather than treat them as a niche market.

“The company found itself unable to develop alternative markets quickly enough to maintain viable levels of sales,” the statement said.