sunday tribune logo
 
go button spacer This Issue spacer spacer Archive spacer

In This Issue title image
spacer
News   spacer
spacer
spacer
Sport   spacer
spacer
spacer
Business   spacer
spacer
spacer
Property   spacer
spacer
spacer
Tribune Review   spacer
spacer
spacer
Tribune Magazine   spacer
spacer

 

spacer
Tribune Archive
spacer

Spending more can be good for you
Conor Brophy



IRISH people spent 66m on organic food over the last year, according to research commissioned by Bord Bia.

That is still a small proportion of the overall spend on groceries. It represents just under 2% of the 3.6bn spent by Irish shoppers on fresh and chilled foods such as meat, fruit and vegetables.

Ireland is in line with its European peers, who spend a similar fraction of their grocery budget on organically produced food.

For producers, it is a small niche, but one which has been growing rapidly. Across the EU, the market for organic food is estimated to be worth about 6bn, double the amount spent on organic produce five years ago.

"It's very much a growth market, " said Teresa Brophy, manager of the Irish market for Bord Bia. The board has secured 1.5m from the Department of Agriculture to help "develop the market" for organic food over the next three years.

Brophy said there are two key trends driving the sales of organic products which Bord Bia aims to capitalise on . . .

an increased demand for healthier food and a trend towards premium produce.

Research on consumer attitudes, meanwhile, reveals what appears to be pent-up demand for organic produce.

According to Bord Bia's survey, some 60% of consumers said they were interested in buying, but it wasn't easy to find organic food. Raising the profile of suppliers, farmers and organic markets is one of the main planks of Bord Bia's 1.5m marketing effort, which kicks off with the National Organic week over the next seven days.

Ann Nugent, nutritionist with supermarket chain Superquinn said the retailer has experienced strong growth in sales of organic produce over the past year.

Sales of organic fruit, vegetables, meat and other products have increased by 15% during the last 12 months, and Nugent said that Superquinn expects that growth to continue in the year ahead.

The supermarket chain generates a higher proportion of its fresh-food sales from organic produce than many of its peers . . . 3.5% against an average of 1.8%.

Organic meat accounts for around 5% of Superquinn's total meat sales and it has set a target of doubling that to 10% over the next 18 months.

Nugent said consumers are becoming more environmentally conscious, and that is influencing their purchasing decisions. "There's lots of reasons why more and more people are choosing to buy organic, " she said.

Shoppers are increasingly looking to source food which is produced as close to home as possible in order to limit the environmental impact of transporting produce by sea or air. Nugent said many consumers were also taking a greater interest in where and how their food is produced for health reasons, which plays into the hands of organic producers.

"You're really talking about people who have an interest in food, and probably have a bit more disposable income, " she said.

She added, however, that both retailers and organic food suppliers still have to overcome the handicap of a marked price differential between organic food and the more conventionally farmed produce which fills the rest of the supermarket shelf space.

Consumers can expect to pay on average 20% more for fruit and veg produced without the aid of chemical pesticides or fertilisers and a similar premium for organic meat.

That is off-putting to some consumers and prices others out of the market. "There are people for whom it's beyond their budget, " said Nugent.

Padraig Fahy, an organic farmer from Ballinasloe and the current chairman of the Irish Organic Farmers and Growers' Association, said consumers regularly question prices when they visit his stall at farmers' markets.

He said, however, that those who try the produce are more often than not willing to pay the premium for a product which is healthier and more environmentally friendly.

He maintains that the best marketing tool in his arsenal is not to play on environmental concern but to promote quality. "When they taste my carrots, they fly off the shelf, " he said.

Fahy said sales from Beechlawn Organic Farm, the business he runs with his wife in Ballinasloe, Co Galway, have increased by between 20% and 25% each year since its foundation five years ago.

Like many organic producers, Beechlawn sells much of its produce directly or through events such as farmers' markets. Up to threequarters of its sales come through those channels. Most consumers, however, do the bulk of their shopping in large multiples. Fahy said producers need to do more to get their produce on the shelves, but also that growers and producers could do more to convince consumers to visit farmers' markets or buy directly.

"What we've got to do is sell our products more. By buying organic products you're supporting an environmentally sustainable system of farming, " he said.

Animal welfare is better and carbon emissions are lower, especially where consumers source local produce which hasn't been shipped across long distances. Those are the messages organic growers need to get across, said Fahy.

At a time when concerns about climate change and the environmental impact of farming, industrial production and transport are at the top of the political agenda, the iron is hot. "It's an opportune time to sell those points about organic farming, " Fahy said.




Back To Top >>


spacer

 

         
spacer
contact icon Contact
spacer spacer
home icon Home
spacer spacer
search icon Search


advertisment




 

   
  Contact Us spacer Terms & Conditions spacer Copyright Notice spacer 2007 Archive spacer 2006 Archive