Organic sales are doing WHAT?

Date Published: 15/07/2009

Interesting reports are coming out of Tesco [link to Farmers Weekly] that sales of organic produce have risen 52 per cent since last November.

This is fascinating, particularly as everyone seems to have been intent on talking organics down in recent months. We’ve insisted all along, based on licensee feedback, that there has been no general collapse in sales across the board, even though some sectors, notably pigs and poultry, are suffering.

But to see a spike like that is somewhat perplexing. There is always a story behind statistics, and in this case it is being put down to heavy promotion, so it will be very interesting to see if these results are in any way mirrored by other major retailers.

The concern that arises when we start to talk about promotions is that the farmer or processor suppliers are having to foot the bill, putting even further pressure on their margins in these tough and costly times… That said, a 52 per cent rise seems very positive. Is it caused by price alone, or support for organics generally, do we think?