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The market for organic products

There are increasing pressures on those involved in agriculture to produce our food in a more environmentally friendly and sustainable manner. The consuming public’s demands and government policy create the framework for change and organic production offers a significant opportunity to meet these challenges.

Assessment of the Market for Organic Food

A number of key facts concerning the United Kingdom Market for organic food and drink at the end of 2005 are shown below.
  • The UK market was worth £1.6billion showing an increase of 30 percent over the previous year.
  • The multiple supermarket retailers were the major marketing outlets to the consumer with around 76 percent of sales.
Independent retailers and farm gate sales accounted for 16 percent of sales.
Farmer’s markets, box schemes and mail order made up the remaining 8 percent.
The highest rate of growth in organic sales was through independent retailers.text
  • An estimated 66 percent of organic primary produce sold in the multiples was sourced in the UK. Government targets are for the UK to be 70 percent self sufficient in the production of organic food by 2010.
The main imports were fruit and vegetables (89 percent and 37 percent of sales by value respectively), salads (62 percent of sales by value). Only three percent of dairy products and eggs and 12 percent of meat was imported.
  • 3.4 percent of agricultural land in the United Kingdom was farmed organically involving over 4000 farms.
  • By September 2006 1.0 percent of Northern Ireland’s agricultural land was farmed organically by over 210 farmers on 10,000 hectares.

Marketing Organic Food in Northern Ireland

Organic poultry, beef, lamb, pork, salmon, fruit, milk, eggs, potatoes, cereals and vegetables, are now produced in Northern Ireland.
Organic farming is relatively new in Northern Ireland and consequently organic supply chains are still developing for some products.
It is therefore important that anyone planning to produce organic food considers how and where they will market their organic products to obtain organic premiums.
Once a farm has started organic conversion it will take at least two years to produce fully organic products.
Where organic food requires further processing it is essential that processing partners are identified in advance.
Organic food production and marketing should be strategically planned to ensure that production increases in line with market demand.
There are several ways in which organic food can be marketed.
Some current options are:
a)  Join an Organic Marketing Organisation in Northern Ireland
A small number of local organic producer groups exist to co-ordinate supplies and market organic foods from farm to retail.
They are an important means of meeting other organic producers and achieving economies of scale in the marketplace.
  • NorthWestOrganicCo-opSocLtd
    Contact: Stan McWilliams 00 353 74 93 84107
  • Emerald Organics (Dairy)
    Contact: Roy McCracken (028) 8284 1592
  • United Irish Organics (Dairy)
    Contact: David Laughlin (028) 2954 0272
b)  Individual Partnerships with Processors
  • ABP/Sainsbury Partnership in Livestock (beef)
    Contact: Liam McCarthy (028) 3026 3211
  • Dunbia (lamb and beef)
    Contact: Eddie Boyd (028) 8772 3350
  • Linden Foods
    Contact: William Waugh (028) 8772 4777
  • Moy Park  (Chicken)
    Contact: Tom McKeown 07778 033786
  • O’Kane  (Turkeys)
    Contact: Colin Taylor (028) 2564 1111
  • Farmlay Eggs
    Contact: Eileen Thompson (028) 3752 2707
  • Skea Eggs
    Contact: Harold Richmond (028) 8776 1252
  • Whites Speedicook  (Oats)
    Contact: Trevor Lockhart (028) 3752 2344
  • Wilson’s Country Potatoes
    Contact: Brian Lockhart (028) 3839 1029
c)  Direct Sales
Farm Shops – Perhaps the simplest form of direct selling. It requires close proximity to a large local population or significant passing trade. It can be expensive to establish a good shop.
Farmers Markets - An inexpensive means of selling. It avoids large-scale capital investment and allows concentration on specific products. Few currently exist and producers may need to travel long distances to sell their organic products.
Box Delivery Schemes – Like farm shops a large local population is required. Costs revolve around distribution rather than capital.
The producer is offering increased convenience by delivering either to a central pick-up point or door-to-door. Labour requirement is intensive and constant.
MailOrder/e-commerce – Mail order involves more complex delivery procedures. A greater area is targeted (NI, ROI, UK) and therefore requires different promotional activities and good communication and delivery systems. Next-day delivery is usually a requirement.
Ecommerce adds a new dimension, improving the promotional opportunity but increasing accessibility and need for quick response.
It is worth considering supplying an existing box scheme or farm shop(s) initially to minimise costs
For information on recent developments regarding marketing opportunities contact a Supply Chain Development Branch adviser listed below.

Contacts for further information

Organic Beef and Lamb
Charlotte Moore
Tel: (028) 9076 5813
E-mail: charlotte.moore@dardni.gov.uk
Organic Horticulture
Elaine Chapman
Tel: (028) 9052 4236
E-mail: elaine.chapman@dardni.gov.uk
Organic Milk and Dairy Products
David Neill
Tel: (028) 9052 4124
E-mail: david.neill@dardni.gov.uk
Organic Pigs / Potatoes / Arable
Jim Crummie
Tel: (028) 9052 4605
E-mail: jim.crummie@dardni.gov.uk
Address for all the above is:
Supply Chain Development Branch
Dundonald House
Upper Newtownards Road
BELFAST
BT4 3SB
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