Removing a Barrier to Organic Market Growth - Prince of Wales Charitable Foundation Funds Programme to Boost Organic and Low Input Farming Yields

Few people reject the idea of organic products. Indeed according to the Soil Association’s market report 2012, 8 out of 10 households have bought at least one organic product in the last year, and most people have some idea of what organic farming means, with the top reasons for buying organic being  fewer chemicals, cited by 62% of people questioned, natural and unprocessed (57%) and healthier for me and my family (52%).

Nevertheless, according to the Soil Association the market fell by 3.7% in value terms in 2011 and the problem is price.  91% of people questioned say that high price stops them buying more organic food. The problem is made worse by the current difficult economic climate. So much so that the Soil Association concedes that “Prospects for revival in the organic market are inextricably linked to trends on the high street and conditions in the wider economy”.  Even Waitrose, known for its well heeled customers, and an enthusiastic promoter of Duchy Originals organic produce saw sales drop by 2.2% in 2011.

There are two ways to tackle the price issue – either persuade consumers that it is indeed worth paying the higher price for organic produce, or work to reduce the cost of production and pass any savings on to the consumer in the form of lower prices.

It is therefore good news that the Prince of Wales Charitable Foundation is allocating £200,000 to help organic farmers and those striving to farm on a low input system to rely less on expensive bought in materials, step up their yields, and possibly increase nutritional performance whilst holding true to sustainable principles. It is especially good news too that the scheme will be open to conventional farmers many of whom will be keen to reduce reliance on bought in material s such as fertilisers.

As for future growth in the organic market, any work which reduces production costs and therefore the price needed to charge consumers can only be beneficial. Whilst it is important to continue explaining to people why they should buy organic, translating good feelings about this way of production in to actual purchase will always be difficult whilst the current price gaps between conventional and organically produced foods remain at current levels.