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Organic food prices set to rise

organic%20food.jpgSales of organic food in the UK has reached £2 billion, which represents a 22% increase on the previous year. Even better news is that more money was spent on organic and free-range eggs than on battery farm eggs. Organic vegetable box schemes and home-delivery services have seen growth of 53% over the last year to £146 million and supermarkets saw a rise of 21% in organic food sales in the same period. It should all looks rosy for the organic food industry in the UK.

You might assume that with sales going up, prices would come down, but in fact, the forecast is that prices will rise. The price rise is being put down to a shortage of organic cereal. The problem for us in the UK is we do not have enough organic farms. The demand for organic food is growing, but the suppliers, the farmers, are not taking notice of it and changing to organic farming.

With shortages come price rises, and the fear is that the price increases will dampen demand for organic food and stall the growth of organic farming. At the moment 1.6% of UK farms are organic. Not a high figure really, considering the demand for organic food. Maybe the government should invest some money to help farmers convert to organic.

[Via The Telegraph]

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