The UK organic vegetable market grew a further 13 per cent during the 2004-2005 season, according to a study by HDRA, the organic organisation.

The UK Organic Vegetable Market study, funded by DEFRA, reports that 152,100 tonnes of organic vegetables were traded during this period, representing a total retail value of  £223 million (see Figure below).  More than 30 packers and wholesalers were involved in this research, which aims to provide detailed information on the total market and supply of individual organic vegetable crops. The rate of growth in the UK organic vegetable market exceeded the growth rates of both the conventional vegetable and total organic food markets. Additionally UK self-sufficiency in organic vegetables increased to 64 per cent whereas self-sufficiency in conventional vegetables decreased. 

Chris Firth, Senior Business Analyst for HDRA, said: “Our research shows that the organic vegetable market continues to grow, with traded volumes rising by 23 per cent in 2004-2005.” Natalie Geen, Research Officer, added; “The study suggests that the market will continue to grow but communications with pre-packers and wholesalers indicated insufficient availability may constrain the sector in the future”. There is a decreasing area of land in conversion, thus there could be a shortage of suitable, converted, land for growing organic vegetables and, a shortage of organic vegetables, or increased reliance on imports.  However the market is relatively small so supply changes must be made in line with demand. Speculative growing could unbalance the market. This emphasises the importance of accurate and timely organic vegetable market information.

Pre-packers continued to dominate the market with 60 per cent of the tonnage traded, although their relative share fell from 67 per cent in 2003-04.  This illustrated a reduced reliance on supermarkets by consumers, pre-packers and wholesalers. 

Direct sales were surveyed for the first time this season.  Sales though this outlet grew by about 30 per cent – exceeding average organic vegetable market growth and somewhat driven by the expansion of several large box schemes and their professional marketing.  The survey highlighted the complexity of direct sales, and separated sales made directly from the farm to consumers, from sales of vegetables that were bought in from other UK farms before being sold to the consumer.  Direct sales accounted for 19 per cent of the market.  The wholesale share had also increased to 16 per cent and processing accounted for five per cent of tonnage traded.

Downward price pressures were reported to be most severe in the supermarket supply chain where high specifications can also impact on prices per harvested unit.  There was much competition between supermarkets but also from conventional vegetables produced using environmentally friendly methods or locally produced conventional vegetables.  Price pressures and high specifications may have encouraged the relative shift away from trading with supermarkets and towards more direct sales routes.

The 2004-2005 UK Organic Vegetable Market report is available from HDRA. Previous reports and details of the HDRA Fresh Thinking in the Organic Vegetable Market seminar, where the report was launched, are available at www.organicveg.org.uk. For further details contact Natalie Geen on ngeen@hdra.org.uk.
 

Size of the organic vegetable market in the UK (retail value and tonnes)

HDRA's scientific research programme is carried out to develop and improve the techniques used in organic agriculture and to advance the knowledge of organic production systems, focusing on commercial organic horticulture in temperate areas and on resource-poor systems in developing countries.

At present, HDRA is involved in a wide range of projects, funded by DEFRA's research programme on organic farming, DFID and industry. The research projects are carried out in close collaboration with other research institutes nationally and internationally.