Organic food sales slide in recession

SALES of organic food fell by more than a quarter of a billion pounds during 2009 as shoppers tightened their belts during the economic downturn.

Official figures published by the UK's organic certifier the Soil Association showed sales of organic milk, meat and vegetables declined during 2009 by 12.9 per cent, from 2.113bn in 2008 to 1.84bn this year.

Despite the fall industry insiders remain optimistic about the sector's prospects – predicting expansion in sales for 2010.

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Soil Association policy director Peter Melchett said it had been a tough year for the organic market.

"Confidence is now returning," he said. "And with the growing recognition of the need for environmentally-sustainable production systems that are less reliant on fossil fuels, we are confident that the organic market, having weathered the recession, will return to growth."

As well as tightening budgets, experts attributed the drop in sales during 2009 to retailers reducing the amount of shelf space for organic products.

Dairy, fruit and vegetables, and fresh meat, the three largest categories of organic food, saw supermarket sales fall by 6.5 per cent, 14.8 per cent and 22.7 per cent respectively.

The Soil Association predicts a modest market expansion of between two per cent to five per cent for 2010.