British farmers lose out on organics
14 June 2000
British farmers lose out on organics
by Johann Tasker
BRITISH farmers stand to lose out after the Iceland supermarket chain announced it is switching complete food ranges to organic status.
Iceland said it had bought almost 40% of the worlds organic crops which it will sell at no extra charge to consumers. The move will cost the chain 8m.
Starting with its own-label frozen vegetables, Iceland will become the first food retailer in Britain to switch whole ranges of conventional food to organic.
The Soil Association, which represents organic farmers, welcomed the move but warned that it could benefit overseas farmers rather than British producers.
Currently, about 70% of all organic food sold in Britain is imported because British farmers are unable to meet demand which is climbing by 40% a year.
Less than 3% of British farmland has organic status and government money to encourage more producers to convert from chemical farming ran out last year.
Agriculture Minister Nick Brown pledged last December to plough a further 140m into the governments Organic Farming Scheme.
But the money will be available next year at the earliest. It will then take two years for farmers to convert and another year before the first organic harvest.
Unless the government acts, it could be 2004 before there is a big increase in British organic production, said Soil Association spokeswoman Emma Parkin.
It appears to be in the hands of big retailers rather than the government to boost organic food production, she said.
Until organic production grows, much of Icelands organic food will be imported, creating profits for overseas farmers at the expense of British producers.
The Soil Association wants the government to give an urgent cash boost to the British organic sector in a bid to stave off the flood of organic imports.
Iceland has pledged to maintain prices to British organic farmers. And it will give 1m over three years to the National Trust to help more producers convert.
The investment could have a big impact. For every pound donated, a potential 5-7 is expected to be leveraged from European, government or lottery grants.
The National Trust, which is Britains biggest landowner, will spend part of the money on feasibility studies for its tenant farmers who want to go organic.
About 40 of the trusts farms are either fully organic or in conversion. Last year, it funded 20 conversion plans to assist farmers who gave up chemicals.
However, the National Farmers Union said it was sceptical that the Iceland offer would necessarily bring about a better deal for British organic producers.
There is some speculation that Iceland could use its new-found position in the organic market to force down the price of organic produce, the union warned.
Helen Lo, NFU head of food and marketing, said she was seeking further assurances that the supermarket would maintain prices to organic farmers.
Unless Iceland can assure farmers that it is going to maintain its prices we would be reluctant to welcome the move, she told Farmers Weekly.