U.K. organic product sales fall, U.S. sales rebound in 2010

UK sales of organic products fell 5.9% in 2010, according to the annual Organic Market Report from the Soil Association. The dip is a continuation of a steep sales decline in 2009, when the UK organic market shrank 12.9%. Overall, the market has shrunk about 18.0% since its peak of £2.1 billion in 2008.

The report cited fragility in consumer confidence as the impetus for the decline, as economic woes and the specter of unemployment still haunt much of Europe. The impact of public spending cuts in April could also affect recovery of the organic market, the report adds.

The report did note select double-digit year-on-year growth in sales smaller categories like organic beef and baby food, which grew 18% and 10%, respectively, but production and sales in the bigger organic categories like dairy and produce faltered.

NBJ Bottom Line

On the other hand, according to preliminary Nutrition Business Journal figures, organic food sales in the United States made a major rebound last year, growing 8.1%. In 2010, the annual growth of dairy—which was one of the harder-hit categories in 2009—reached 9.0%, which, in comparison to the decline in the UK, is momentous. Organic fruits & vegetables, historically a fair-weather category in U.S. organic sales, grew an impressive 11.9% in 2010.

The growth of sales in the U.S. organic market illustrates a rebounding economy coupled with a stabilization of commodity prices. Thus, as conventional commodity prices have increased over the past year, organic supply costs have remained relatively stable, narrowing the price point between organic and conventional finished goods. Consumers are opting back into organics because the price premium is substantially less than two years ago.

Source: newhope

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About greemtorganics

Greemt is a global company specialized in the international trade of organic products. We work with producers from Argentina and Spain, who are fully certified organic according to international standards and are willing or are already exporting. Our differentiating factor is the dual physical presence in Argentina and in Europe, allowing us to be in direct contact with producers and potential worldwide buyers to drive the organic market. Our main objective is to provide quality and safety in organic products, facilitate commercial flow and establish solid relationships between organic producers and buyers, in order to generate business with high revenue.
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