Organic sales increase by 82% - from €57 million to €104 million
45% of Irish grocery shoppers bought organic produce in the last month
According to new research announced today at Bord Bia’s National Organic Food Conference, organic sales in Ireland have increased by 82%, reaching a value of €104 million in the year to July 2008, compared to €57 million in the year to July 2006*. The research also revealed 45% of Irish grocery shoppers purchased an organic product in the last month, a significant increase from 20% in 2003.
During his address Minister of State at the Department of Agriculture, Fisheries & Food Trevor Sargent T.D., said “Organic farming has a major role to play in meeting the ever increasing challenges of depleting oil supplies, climate change and the provision of a sustainable supply of food. More farmers producing organic food here in Ireland would mean more jobs at home and less energy used worldwide.The future is bright for organic food and farming in Ireland and I am totally committed to helping the organic sector grow and develop to its full potential.”
The conference themed ‘Maximising Ireland’s Potential’ took place in Waterford Institute of Technology today and attracted over 250 delegates from the Irish organic sector. Speaking at the event Aidan Cotter, Chief Executive, Bord Bia said “The record growth in the market is striking and mirrors corresponding increases throughout other European markets. The opportunity for Irish suppliers is even further highlighted by the finding that ‘local organic’ provides a particularly powerful cue to increase buyer interest.”
The conference organised by Bord Bia in conjunction with the Department of Agriculture, Fisheries and Food addressed scenarios for the future of the Irish organic sector. Keynote speakers, including Carlo Petrini, President and Founder of Slow Food International, provided practical advice on emerging marketplace trends and expert industry guidance to enable Irish companies to identify and develop export opportunities.
Lorcan Bourke, Information Services, Bord Bia and Chair of the Organic Market Development Group (OMDG) presented new research on how Irish consumer attitudes and ‘mind sets’ are changing in relation to ethical shopping and organic food. The research showed ‘organic’ has the greatest recognition of all ethical food labels with 91% of those surveyed 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 some of the organic produce most likely to increase in popularity over the coming years.
Tony Reid, Assistant Principal Officer, Organic Unit, Department of Agriculture, Fisheries & Food discussed initiatives to develop the organic sector in Ireland and presented plans on the Organic Farming Action Plan 2008-2012 which aims to convert a minimum 5% of acreage to organic farmland by 2012. Stefano Cinti, Policy Officer, Organic Farming Unit, EU Commission revealed the new EU information and promotion campaign aimed at raising awareness of organic farming.
Caroline Burgess, Emerging Markets Category Manager, Asda presented recent key initiatives used by Asda to drive organic sales and explored supply opportunities for Irish companies. According to Ms. Burgess “Demand for organics is growing rapidly and supply is being met but not always from the ideal location. In the long term we need to source produce from as close to home or from regions easily associated with “Natural not harmful” and Ireland fits this bill.” Since January 2007, Asda, the 2nd biggest retailer in the UK with a 16% share of the market and a turnover of £16bn, has more than doubled its range of organic products.
Professor Ulrich Hamm, Head of the Department for Agricultural & Food Marketing, University of Kassel focussed on opportunities for Irish exporters in the German market. “Ireland may be better placed to serve the premium organic food market as several conventional Irish food products (e.g. beef, butter) have a very good image in Germany and are sold for premium prices” said Professor Hamm.
Padraig Fahy from Beechlawn Organic Farm, Balllinasloe, Co. Galway and John Purcell from The Good Herdsmen, Cahir, Co. Tipperary provided the producer perspective on converting to organic and Hugh O’Brien from Lir Chocolates discussed the process of developing an organic range and building a brand both at home and in export markets.
Other speakers included Professor Carlo Leifert, Head of the Nafferton Ecological Farming Group at Newcastle, who presented findings from a study into the nutritional and eating quality benefits and organic vs. conventional milk, beef and lamb and Mr. Jonathan Banks, Business Insight Director, AC Nielsen who provided a pan European overview of the organic sector.
A panel discussion led by representatives from the Irish organic sector focussed on trends, developments and opportunities in the various routes to market for Irish organic products.
For further information, interviews or images please contact:
Roz O’Shaughnessy
Corporate Communications, Bord Bia
01 6142245 / 086 4054639
rosaleen.oshaughnessy@bordbia.ie
Notes:
*source TNS Worldpanel Ireland
Background to research
- 1,000 face-to face consumer interviews – Nationally Representative Sample of Main Irish Grocery Shoppers – 18+
- 8 initial consumer focus groups
- Regular, Occasional and Non-Rejecters of Organic Produce across RoI
- Fieldwork was conducted by TNS MRBI in August, 2008
- Study funded by Dept of Agriculture, Fisheries and Food OMDG National Organic Marketing Plan 2006-2009