Why We Need A Radical Organic Rethink

Why we need a radical organic rethink

Soil Association Certification's 25th Organic Market Report, released in February, reveals that the organic food and drink market has delivered its 12th year of positive growth despite global economic turmoil and the cost-of-living crisis.

The total market grew 2% in 2023 ending the year at £3.2 billion – almost double its value in 2011.

However, despite this solid performance, the sector's heavy reliance on imports means that many farmers are currently missing out on the potential benefits organic can bring to their business – and the UK environment is in turn missing out on the benefits for nature.

Shopper spend on organic is a third higher compared with five years ago, but UK organic farmland has remained at a static 3%.

"Organic has delivered a positive and resilient performance despite challenging financial and political conditions and without the support that organic food and farming receives in Europe and elsewhere in the world," says Soil Association Certification Commercial Director Alex Cullen.

"The market and macro trends are pointing to an upward trajectory but there are still many challenges and barriers to the level of growth that UK organic should be delivering for farmers – with price the biggest barrier.

"We need a radical rethink if organic is going to reach its full potential and bring organic farming into the mainstream. The entire supply chain must work together to grow the market and unlock demand for homegrown UK organic fresh produce, supported by the government.

"And we can learn valuable lessons from Europe where there is greater support and commitment from governments and retailers for farmers and from some exciting innovations taking place right here across the UK – to make organic more available and affordable."

Despite spiralling food bills shoppers are increasingly demanding healthy and sustainable choices – the percentage who said sustainability was a key factor for them jumped from 24% in 2022 to 33% in 2023.

Farmgate prices for organic should attract a modest premium to reflect the high environmental and animal welfare standards required by organic assurance. However, new information comparing the farmgate premium to the price customers pay in the supermarket for organic suggests that some premiums being charged by retailers are significantly out of kilter and warrants closer scrutiny.

"Of course," says Cullen, "every player in the supply chain needs to make a profit but when price is the biggest barrier to scaling the most sustainable and trustworthy farming system we have, there need to be more questions about what it would take to achieve economies of scale. We are undertaking thorough research to understand fully what is happening and how this is impacting organic sales."