DOUGLAS MacSKIMMING
ORGANIC food production in Scotland is on a high, outperforming the rest of the UK in the last 12 months with an 11.7% increase in retail sales.
According to the Soil Association’s 2017 organic market report, published this week, the overall UK organic sector is also into its fifth year of consistent growth, with the total market now worth £2.09billion – a buoyancy that offers new opportunities for farmers.
With that in mind, the Scottish Government has recently opened a window to applications for organic conversion funding, in parallel with Soil Association Scotland offering support to farmers considering conversion, as well as competitive fees for achieving certification.
In the past, the Scottish organic market has grown more slowly than the rest of the UK, but research by the SAC research suggests that Scottish consumers are increasingly driven by similar motivations to organic strongholds across the rest of the UK.
These consumer drivers include a more conscious search for products they can trust, a heightened understanding of where their food comes from, and a wish to reconnect with farming and nature. As a result, growth has been reported across the spectrum, with supermarket sales of organic up by 6.1%, independent retailers up by 6.3%, sales through home delivery up by a whopping 10.5%, and sales into the foodservice market by an astonishing 19.1%.
In Scotland, nearly 60% of Soil Association Certification licensees expect their sales to remain steady in 2017, and all Scottish independent stores surveyed expect sales of organic to continue rising across the year.
SA Scotland business development manager Alison Muirhead said: “The Scottish organic sector has proved yet again that through its focus on quality and innovation it is able to sustain and improve the organic market.
“Organic is extremely relevant for trends towards eating better food and ‘free from’ diets. Our changing relationship with food means consumers increasingly see organic as a shortcut to healthy lifestyle choices. With the market in steady growth, and the funding window for organic farmers currently open through the Scottish Government, the future looks positive for Scottish organic producers.”
Despite uncertainty around Brexit, Ms Muirhead noted that there were still lots of opportunities around the export markets for Scottish organic products. The SA has highlighted that, in many countries, British and Scottish-produced organic is seen as the best that you can possibly buy – particularly by consumers in the Far East, US and Europe.
This is evident in the higher involvement Scottish organic producers already have with export buyers – 49% of SAC's current organic licensees are exporting products, with the estimated total value of Scottish organic exports at £350million.
Supermarkets now account for 69% of total organic sales in the UK. Tesco's Jeff Hodgson commented: “The organic market is in strong growth which is predicted to continue this year. Organic food is becoming more important to more customers as we see new customers entering the market and existing organic shoppers increasing the size of their organic basket. A proportion of this growth is driven by customers seeing organic as a healthier choice.”
For in-depth news and views on Scottish agriculture, see this Friday’s issue of The Scottish Farmer or visit www.thescottishfarmer.co.uk
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