the world of organic agriculture - Organic Eprints

15 Organic Farming in Europe
introduced their own brands, but none has yet developed a specialist marketing concept for their
organic range. Since 2005, imports from outside the EU - crucial for continuity of supply through
the year especially for fruit and vegetables - can carry the “AB” organic logo, reducing consumer
confusion. France, like the UK, is a net importer of organic food, with a discrepancy caused by
the positive development of demand combined with a more hesitant uptake of organic farming
by producers 18 .
There has been speculation about possible market saturation in Switzerland, but the overall trend
in organic sales remains positive despite a decline in general consumer spending and the arrival of
food discount stores, driving down consumer prices.. The organic market grew in 2004 by about
3 percent and reached a total value of €778 million 19 . Over 80 percent of produce sold is of Swiss
origin. The organic sales per capita increased in 2004, and Switzerland remains the European
leader with average spending of 105 EUR 20 per head. About 75 percent of sales pass through two
major retailers and 15 percent through specialist organic shops, with the remainder retailing either
direct from the producers or through family butchers and bakery shops (Richter 2005). The two
leading retail chains Co-op and MIGROS follow different strategies in their organic assortments.
While Co-op (397 million EUR 21 retail sales in organic food in 2004) continuously broadens the
number of organic lines, MIGROS (193 million EUR 22 retail sales in organic food in 2004) has
slightly reduced its organic commitment. With the market entrance of the German discounters
ALDI Co-op and Migros increased their communication efforts for their discount segments.
In the United Kingdom in 2004, retail sales of organic produce rose to an estimated 1.213 billion
GBP 23 , corresponding to an annual growth rate of approximately 11 percent 24 . Retail sales made
through box schemes (12 percent market share), farm shops and farmers’ markets increased by
one third, and sales through independent retailers (13 percent market share) increased by over
40 percent. Supermarket sales continued to grow but at a much slower rate (1.5 percent) than in
previous years. However, supermarket chains in UK remain with 75 percent of the whole retail
sales of organic food an important sales channel.
While consumer demand for local food continues to grow, 2004 saw a one percent increase in
the proportion of organic food and drink imported by supermarkets in the UK. The key factor in
this was a switch away from UK-produced organic pork, beef and lettuce by some of the leading
multiple retailers.
In Italy, despite wider availability, the growth in the organic retail market appears to have leveled
out during last years, mainly due to the general economic crisis. In a survey of Italian supermarket
chains conducted by ISMEA, 56 percent reported stagnation in organic food sales, 29 percent
reported growth, and 15 percent reported a decline. However, despite the economic crisis, some
18 News about France http://www.bio-markt.info
19 778 million EUR = 938.3 million USD (per 31.12.2005)
20 105 EUR = 126.7 USD (per 31.12.2005)
21 397 million EUR 479 USD (per 31.12.2005)
22 193 million EUR = 232.9 USD (per 31.12.2005)
23 1.213 billion GBP = 2.14 USD = 1.774 EUR (per 31.12.2005)
24 Soil Association Organic Market Report 2005
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