Rivals scorn Iceland organic stunt

15 June 2000



Rivals scorn Iceland organic ‘stunt’

By FWi staff

RIVAL supermarkets have dismissed as a stunt the move by the Iceland chain to switch complete food ranges to organic status.

Iceland claims to have bought almost 40% of the worlds organic crops, which it will sell at no extra charge to consumers. The move will cost the chain 8 million.

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.

But other supermarkets questioned the commercial sense of the move, claiming that demand is for fresh organic food, not frozen, reports The Times.

According the The Daily Telegraph, Asda has dismissed the Iceland strategy as a stunt which raises big questions for British organic producers.

About 70% of all organic food is imported because British farmers are unable to meet demand, FWi reported on Wednesday (14 June).

The governments Organic Farming Scheme, which encourages farmers to convert to organic production, has been a victim of its own success.

More than 1200 farmers successfully applied to join the scheme, which was launched last April, according to government statistics.

But there is no money left this year to help more farmers meet demand for organic food, which is a market growing annually at 40% in Britain.

On a visit earlier to Yeo Valley Organic in Somerset, junior agriculture minister Elliot Morley said grants for organic farmers were an investment.

But until organic production grows, much of Icelands organic food will be imported, creating profits for overseas farmers at the expense of British producers.

However, The Independent describes Icelands initiative as a “huge boost” for the organic food industry, which pressures other retailers to follow suit.

“Many of them sell organics at very high mark-ups,” says the paper. “The move is likely to five further impetus to the organic food market.”

The Guardian says Icelands announcement will raise the political heat on ministers, who are perceived as favouring GM crops over organic produce.

• Farmers lose out on organics, FWi, yesterday (14 June, 2000)
  
• Supermarket switches to organic food, FWi, yesterday (14 June, 2000)

• Independent, page 4
• The Times, page 6
• The Daily Telegraph, page 6
• The Guardian, page 8