Sales of organic food in the Netherlands will rise 20% this year to Fl730m (US$292m), some 1.2% of total food sales, according to agricultural bank Rabobank.
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Rabobank warned that despite consumer interest in organic products it will not be sufficient to generate the ambitious rate of conversion to organic farming targeted by the countries agriculture ministry.
Wim Thus, Rabobank Nederland’s agricultural business manager, told a congress on organic products yesterday that it would be impossible to reach the goal of 10% of agricultural production to be organically farmed by 2010. Thus said that attempts to reach the government’s goal will only be met if the market needs are thoroughly screened.
“We have to reorganise the entire production chain, and that needs time. Only if all parties involved agree on the steps to take, can we start working on it,” he said.
Thus noted that certain produce like fruit and vegetables might meet targets but said areas like dairy could struggle unless they team up with two or three major supermarket chains.
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By GlobalDataRabobank said organic product sales would rise to Fl870m next year with supermarkets increasingly boosting their share of the market. They will sell Fl430m worth of organic foods in 2002, up from Fl330m this year. Whole food shopswill see sales grow to Fl335m in 2002 from Fl305m this year.
Thus predicted that despite strong demand for organic product, organics could fail if farmers, politicians and the retail sector failed to create a genuine long-term interest in the business.
