The UK’s Soil Association has rejected the suggestion that sales of organic foods are falling as a result of the credit crunch.
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Speaking to just-food today (8 September), a spokesperson for the Soil Association said: “The organic market is still on the increase. We aren’t seeing a downturn. If anything, we are seeing more of a plateau.”
According to a report in the Financial Times citing TNS Worldpanel, sales of organic produce have dropped 19% in the UK this year, from GBP100m (US$176.3m) to GBP81m.
TNS Worldpanel found that sales of organic produce in Sainsbury’s and Tesco fell by 3.8% and 1.3% respectively, the report said. Asda and Morrisons fared better – with 3.1% and 24.6% growth – although sales at these ‘value’ retailers are coming from a lower base.
However, according to the Soil Association, organic sales have risen this year.
“We’re expecting about 10% growth this year – which is lower than the 22% growth last year but is also four to five times what the general food industry experiences in a good year,” the spokesperson told just-food.
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By GlobalDataThe Soil Association rejected the suggestion that people are looking to save money on their groceries at the expense of shopping ethically.
Indeed, a spokesperson for the Fairtrade Foundation concurred that ethical consumerism remains firmly on the agenda, despite the economic downturn.
“Increasing sales figures indicate that consumers are continuing to show their support for Fairtrade,” the spokesperson told just-food. “Now more than ever in the current economic climate it’s important that people continue to buy Fairtrade and support the 7m people that benefit from the better deal that global sales of Fairtrade products brings.”
