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 Organic foods in demand, despite recession 

Organic foods in demand, despite recession

27 Mar, 2009 07:45 AM
World demand for organic foods is expected to grow by 46pc over the five years endin 2012, despite the world economic crisis.

This bullish outlook is contained in a United Nations Trade and Development Agency (UNCTAD) report.

World sales from certified organic products are expected to reach $67 billion in 2012, up from $46 billion in 2007 and about $23 billion in 2002.

Some specialist organic retailers are experiencing consumer resistance to paying more for organics.

But UNCTAD says many consumers have weighed the higher cost of organic food against its benefits - and they've decided organic foods are worth the extra cost.

Australian organic producers are recording record sales in many markets, with meat and dairy produce leading the way.

Australian Certified Organic meat wholesaler Cleavers The Organic Meat Company, for instance, has just recorded its highest ever sales season for organic lamb.

Organic lamb wholesalers have reported a sales jump of more than 20pc over the past two months.

Similarly, Alister Ferguson, national sales manager for the Australian Organic Meat Company says Australian consumers are staying loyal to organic beef.

“In fact, the outlook for organic beef is rosy - the domestic retail market has grown by about 40pc in the past four months," he said.

"And the lower dollar (in recent months) has strengthened export opportunities.

"Organic meat processors says they were pleasantly surprised - typically consumers switch to white meat over the holiday period included in the four months.

"One explanation for increased beef sales could be that in the good times consumers became used to eating out at top-end restaurants, but tighter finances have resulted in more home-cooked meals.

"Consumers, however, seem reluctant to give up the last vestiges of high-quality, gourmet food - they want something a bit more interesting than your standard meat and three vegetables."

Organic produce is attracting a much wider demographic than previously seen - and this is highlighting the need for more farmers to start supplying organic.

Because organic certification takes three years, there is a very present need for new farm recruits to organic farming, UNCTAD says.

Organic dairy producers in North Qld have sold record levels of organic dairy products in past months, a result they put down in part, to increased product availability and increasing public awareness of organic dairy quality and taste.

The jury, however, is still out on organic fruit and vegetables.

This is one area of the marketplace where there is still shopper resistance to organic produce if there is a perceived excessive price difference between organic and conventional products.

In the developing countries, the increasing number of organic food consumers has a knock-on benefit for the prospects for farmers, UNCTAD says.

Increased organic production and export opportunities offers them a real lifeline to the future, it says.

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comments


Date: Newest first | Oldest first
Organic food purchasing is rising with the new concern or eating natural foods. A good place to order Organic food online is http://www.foodsoftheweb.com
Posted by Gourmet Foods, 28/03/2009 1:26:03 AM
Once again the the incorrect use of the word "organic" which should read "synthetic chemical free".
Posted by Noel Plumley, 30/03/2009 1:53:27 PM
A primary reason organic is in strong demand is the contamination of food by GMOs has all but ruined most food supplies. One way to avoid GMOs is to consume organic produce.
Posted by ggwagga, 30/03/2009 5:24:24 PM

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Certified organic beef production expanding in Victoria.
Certified organic beef production expanding in Victoria.
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