Supermarkets Losing Out On Organic Foods Boom
The interest in locally grown organic produce is reaping rewards for farmers' markets and box schemes. Supermarkets are losing out on sales of organic foods to box schemes and farmers markets, according to the latest report from the Soil Association.
In its 2005 Organic Market report the Association says sales of organic products continue to grow much faster than sales in the non-organic grocery market and last year reached £1.213 billion - an 11% increase on the previous calendar year.
However, it says, while sales of organic products through box schemes, farm shops and farmers' markets increased by 33% in 2004, the supermarket share of the market fell 6%down to 75%, although still accounting for £913 million in sales.
Patrick Holden, the Soil Association's director, said: "Increasing numbers of people are eager to buy local to obtain the freshest organic food possible and to cut down on the environmental pollution caused by 'food miles', which is good news for small local producers."
There are an estimated 379 vegetable-based box schemes in the UK with a retail sales value of £36.3 million. There are also an estimated 97 organic meat boxes in the UK with a retail sales value of £2.2 million. There were 437 organic mail order schemes in the UK in 2004 with a retail sales value of £39.5 million.
The National Farmers' Retailer and Markets Association (FARMA) estimates that that 10-15% of stallholders at farmers' markets sell organic produce, with a retail value of £25 million, representing a 21% growth on the previous year.
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