Organic Food Market: latest

Recent UK figures suggest a decline in sales of organic food, though an increase in land area managed organically. See here for more.

What's the story in Ireland? See below.

Volume up, value down. That's the story of organic food sales in Ireland, according to the latest TNS Bord Bia figures.

Volume refers to the amount of food being sold, whereas value refers to the revenue this food brings in.

The research, which covers the period up to December 2009, finds Ireland�s organic sector was valued at �105 million, with the volume increasing by 1.6% to 36,518 tonnes, compared to 2008 figures.

According to Bord Bia �Reflecting general price deflation across the food market during 2009, the value of organic sales declined by 10 percent.�

In value terms, the biggest winners were dairy products, yogurt, hot beverages and dried cereals. The foods that performed least well in value terms were fruits, breakfast cereals, fresh beef, hot beverages and milk.

In particular, the proliferation of new organic milk-based products is helping drive growth in the organic sector.

This is reflected in the stability of what is called penetration, or the range of households purchasing organic food.

To sum up what is going on in the organic market in Ireland right now: while people are spending less and spending less often, a stable number are buying a larger range of products.

This overall picture may not seem especially positive. However, it is a slightly better performance than the export-orientated food sector in general, which has seen both value and volume declines.

Irish food and drink exports experienced an estimated volume decline of 3 percent. The value of these exports declined by 12 percent last year, or by just under �1 billion, to stand at �7.12 billion.

There are of course many justifiable reasons for both markets to be suffering: global recession and deflation being the primary ones.

For Irish organic beef exports, the strength of Sterling is a constant issue: sales are reported to be recovering somewhat by the Leitrim Organic Farmers' Co-op, which has over 160 farmer members, following a tough time in December.

The organic sector has responded to the challenging market situation in a number of ways.

Reaching out to Continental Europe is one strategy. In general, both the German and French organic markets have remained relatively strong of late.

The seafood industry has been especially successful in accessing these Continental markets.

Up until 2007, the main Irish attendees at BioFach, the world's biggest organic food trade show, were from the Irish seafood sector.

All Irish salmon now has either an ecological or the full organic certification. Irish salmon exports to France rose by over 30% in the first half of 2009. Ireland now exports about 3500 tonnes of salmon to France per annum, to the value of �18million.

Along with seven seafood companies, this year's BioFach saw another seven Irish companies participating.

BioFach is widely regarded as the most important trade event in the international organic food and drink calendar.

However numbers attending and exhibiting were down slightly in 2010 from 2009:

In 2009, the event attracted over 46,000 European and International trade visitors from 130 countries, who saw over 2700 exhibitors. 2010 saw 43500 visitors from 120 countries experience just over 2500 exhibitors.

Nonetheless, in a sign perhaps of a culled though more efficient marketplace, a larger number of exhibitors surveyed expected follow up business from BioFach than in previous years.

The German market is especially strongly represented at BioFach, so Irish companies who exhibited at the show have potential access to Europe's biggest organic market, with an estimated annual sales turnover of �5.8 billion.

Specific Irish companies, many of whom exhibited at BioFach this year, have also begun to step up to the mark. Along with many in the seafood sector, The Good Herdsman, Beechlawn Organic, Solaris Botanical Teas, Just Foods and both Mossfield and St. Tola's Cheeses have all been working to both upscale and to develop export markets.

Undoubtedly, there are more challenges than in previous years. However, organic farmers and food businesses are performing well, considering the circumstances.