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Organic Trade Board secures €10m to grow UK organic

Date Published: 19/01/2017

Organic Trade Board secures €10 million to grow UK organic

The Organic Trade Board (OTB) has been awarded €10.4 million by the EU to run a three year campaign to promote organic food in the UK and Denmark. Starting in January 2017, the Organic Trade Board will work with brands, processors and retailers to drive growth in the organic food and drink sector.

OF&G was one of the sixty Organic Trade Board member companies who have match funded the campaign, accounting for 70% of the UK organic market. Members include retailers, major brands, processors, independent retailers and wholesalers. In total, £340k per annum have been pledged. The EU match funding of 80% means annual funding will now stand at £1.7m per annum.

The Organic Trade Board won the EU bid by demonstrating that the funding for the campaign will help grow retail sales of organic, increase employment in organic agriculture, and improve awareness and understanding of the benefits of organic food and drink.

In the UK, the organic market is worth £1.4 billion p.a. and accounts for 1.8% of all grocery sales and grew by 5.6% in 2016 . In contrast, the non-organic sector saw its sales contract by 0.6% in the same period.

Yet despite the buoyancy of the market, the UK still lags behind its European counterparts in terms of annual per capita spend on organic. Britons spend approximately €28 per person on organic food each year compared with €162 in Denmark and €97 in Germany so there is much room for growth.

The new campaign run by the Organic Trade Board will seek to accelerate growth of the organic food & drink market and to build retailer value, by partnering with Denmark who are global market leaders in organic penetration and market share.

Roger Kerr, OF&G chief executive, said: “Congratulations to the Organic Trade Board on this significant boost to UK organic. To have this level of support is exceptional and working closely with Denmark will be very valuable. Our licensees run organic food businesses all over Britain and many of them have trading relationships across Europe. This is very welcome news to all of us in the organic sector and will help us build on the growth we’ve seen in recent years. We will continue to work closely with the Organic Trade Board and do all we can to help organic business succeed in the UK.”

Commenting on the campaign, Paul Moore, CEO of Organic Trade Board said “The organic market is in a clear growth phase in the UK. We produce world beating organic food that is loved by more and more consumers. But there’s still much more we can do – we need to increase availability of organic products and that means convincing retailers that organic should be a key part of their sales strategy. That’s where our partnership with Denmark will be crucial as we share the insights and strategy they have pursued to get more organic on shelf in the UK.”

Read more on the Organic Trade Board website.