Dutch food group Vion says it may abandon organic poultry because of reduced demand from UK consumers.
A spokesperson from the company confirmed that Vion has been reviewing its organic “supply base” following a drop in consumer appetite.
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However, he added that nothing had been decided and a number of options were being investigated. Organic poultry makes up less than 1% of Vion’s business, the spokesperson noted
UK organic sales have come under pressure during the downturn. The spokesperson said there were a number of reasons that consumers are not buying organic but low disposable income was a key factor.
“Household budgets are under increased pressure. That said, it’s also a complex category and shoppers can choose between organic, free-range and any number of products within that sub-segment, and free-range has held up better than organics,” the spokesperson said.
In May, Vion booked a full year net profit of EUR80m (US$112.8m) for 2010, up from EUR62m in 2009, even though sales revenue dropped.
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