Overcapacity has hit the British organic meat sector with significant volumes of organic lamb and organic beef to be sold as conventional meat products this year.
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The British organic meat products market has suffered from supply shortages since the late 1990s however slowing growth rates and a large increase in domestically produced volumes is resulting in overcapacity, according to Organic Monitor. Market growth of 18% is projected in 2002 with much of the increase in domestic volumes to be absorbed by supermarkets substituting imports on their store shelves.
In France meanwhile, home to the second largest organic meat products market in Europe, healthy growth is envisaged to continue as retailers step up marketing efforts for these products. Retail penetration is low compared to Britain and high growth is expected as organic meat products become more widely available to French consumers.
Organic livestock farmers represent roughly 40% of the 10,400 organic farmers in France. Meat producers converting to organic agriculture have driven much of the growth in French organic farmland since the mid 1990s. Most meat producers have small farms and lack of economies of scale in distribution and marketing is responsible for high retail prices of organic meat products in the French market.
The organic meat sector in both countries is predicted to undergo rationalisation in the coming years as the major retailers wield increasing influence in the market. Conventional meat companies dominate in both countries however smaller suppliers are likely to consolidate their marketing activities in order to become more competitive. The UK has already witnessed a number of marketing groups formed in the last two years to serve this purpose.
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By GlobalData
