Organic sales over €100m

Organic sales in Ireland have reached over €100m for the first time. New research announced by Lorcan Bourke, information services, Bord Bia and chair of the Organic Market Development Group showed that organic sales reached a value of €104m in the year to July '08, a massive 82% increase on the previous two years.

He said there are signs that the yearly growth is slowing, dropping to 14% in the last six months. The research revealed that 45% of grocery shoppers had purchased an organic product in the last month. This was an increase from 20% when similar research was done in 2003.

The research showed 'organic' has the greatest recognition of all ethical food labels with 91% stating they are familiar with the term, compared to 50% who are familiar with the term 'food miles'. The research also highlighted bread, beef, preserves and cheese as the organic produce most likely to increase in popularity.

While most people surveyed believed that organic food is more natural and healthier, price is the main reason why people do not buy organic produce. Lorcan said that people are less likely to pay a premium now compared to 2003.

Synergy

A major synergy was identified between organic and local which opened up opportunities for Irish suppliers to replace the imported products that are currently on supermarket shelves.

People still tended to buy organics from where they buy regular produce but the discounters, like Lidl and Aldi, are using organic produce as a major way of attracting new customers.

The use of organics as a marketing tool was also highlighted by ASDA category manager, Caroline Burgess. She said that they aim to reduce the price of organics in their stores to draw customers.

"We are taking a lower margin on organic produce but, as the market grows, we will look to return to the same margins we achieve from conventional products,'' she said. ASDA has noticed a dramatic increase in organic sales when presented alongside conventional products.