The UK organic sector is showing signs of recovering from the slump in sales endured in 2009, The Soil Association insisted today (12 April).
After a year in which organic sales in the UK fell by almost 13%, the sector had, in recent weeks, seen improvements in key categories like fresh produce, Soil Association trading director Finn Cottle told reporters.
Cottle said sales among the UK multiples had fallen 8% in the 12 weeks to the end of January, compared to a 12.2% decrease for the whole of 2009.
“All areas are showing improvement. The decline has been reduced somewhat. I’m particularly delighted with fresh produce. It is the hero of the category,” Cottle said.
Fresh produce, which accounts for over a quarter of organic sales in the UK, saw sales fall 14.8% last year. However, Cottle said fresh produce sales were down 3.7% year-on-year when looking at the 12 weeks to the end of January.
Cottle acknowledged that sales of organic meat, pressured during the downturn by the sharp difference in price between organic and conventional lines and down by more than a quarter, have been showing less improvement. However, she said the decline in beef sales had slowed to 7.1%.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe downturn saw some of the UK’s largest retailers cut their listings of organic products. Tesco’s organic sales fell 13.1%, while sales at Asda slid 20.8%.
However, Cottle said the UK multiples, notably Tesco, were looking to bolster their listings of organic food in the first quarter of 2010, which boosted the Soil Association’s confidence about the year ahead.
“Retailers have been refocusing their ranges and the top retailer has focused very much on its produce area,” Cottle said.
“The largest organic brands are investing. It’s a market that is looking to the future with confidence.”
UK organic companies, facing competition for the ethical pound from the likes of Fairtrade, have joined forces to promote the sector and an initial campaign was launched at the start of the year.
Cottle told just-food a more concerted push should take place in “May or June” when the organic sector discovers if it has won EU financial support for a broader campaign.