
Wednesday, April 14, 2010
Organic Food Market: latest

Saturday, April 3, 2010
ORGANICS IN CHINA: from 4000 hectares to 2 million in 10 years
Sunday, January 10, 2010
ORGANIC MARKET 2009-2010

Sunday, January 3, 2010
2009: THE ORGANIC YEAR THAT WAS

Thursday, May 28, 2009
multiple retailers and the request for a 40% reduction in price from organic producers

Understanding the balance and flow of power is crucial to understanding what people say, what they don't say and what they imply.
Below is the original version of what appeared in the Irish Examiner yesterday, Thursday 28th May.
It was reported various places that multiple retailers are set to ask for a 40% price reduction from their suppliers of organic produce.
I have spoken to numerous well positioned people involved in production, distribution, processing and retailing of organic produce since then, and it seems the reality is more complex than was first reported.
The particular producer featured in the story on the 40% price reduction is uncertain at present whether the retailers were directly asking for a reduction. However he did receive strong signals that this was coming downstream.
Others, when queried, told me that there they have not been asked for this reduction directly.
According to Glenisk, �We have not had any 'demands' from retailers and we're on good terms with them all. Pricing is obviously a challenge right now; we're focused on the broader issue of value for money. For example, we're running 50% extra free promotions on all of our 4 packs and that has been very well received by consumers.�
Glenisk also claim that this cost will not be passed onto the farmer: �No, it's our cost. We find that consumers appreciate the extra value and consequently that has a positive effect on sales.�
Supermarket sources also told me, when queried, that they were not directly asking for a 40% reduction.
This raises interesting and important questions about whether producers, consumers or those in between - the retailers, processors, distributors - have the most power when it comes to the organic sector.
Whatever about direct requests for price reductions, the market share multiple retailers command defines the terrain within which their suppliers � Irish farmers - operate.
In mainland Europe, nowhere has the same level of multiple retailer penetration as do Ireland and the UK. Simply put; there are other routes to market, so those who supply into the agri-food system have options. They have more power.
So when Tescos announce a more international sourcing policy for Irish stores, or a change in store layout, Irish producers can start to feel the pressure.
While Tescos claim to send over 600 million euro of Irish product abroad annually, it is also the case that Irish agri-food companies have many more options when supplying the mainland EU market. This is clear from, for example, the various routes to market in European countries the Good Herdsman achieved at BioFach this year.
At the end of the day, does it actually matter if a supermarket directly asks a for a price reduction, if all the signals and pressure are pointing that way for sooner rather than later?
Will processors who supply supermarkets make price-reduction predictions and pass these on to producers? Or will they behave opportunistically?
Some of the facts of the retail situation for organic farmers at the moment make for stark reading.
While organic is sold through other routes, sometimes in a very high profile manner, it is still the case that the majority of organic produce is still sold through the multiple retailers: up to 85% according to Bord Bia.
Organic farmers make up about 1% of farmers. There are often hardly any alternative options for sourcing feed or processing units.
In general, consumers are cutting back. This can have unintended positive consequences � some consumers eat out less and eat organic food at home more, and still save money.
Organic is not due to suffer to the same extent as other areas, according to recent research into Irish consumer motivations. However, consumers cutting back by 1/3, as the research suggests, will inevitably have some negative consequences.
So we have a small number of producers, with few input or processing options and one main channel to an under pressure market. This main channel has enormous overall clout in the agri-food sector.
Along with this, there is a new version of an old issue: the Northern situation. It is to this we turn next posting.
Tuesday, May 19, 2009
Good Herdsman secure contracts for Irish organic beef in Germany

Good Herdsmen, Ireland�s largest dedicated organic meat processor, recently secured sales of � milion Euro at the BioFach organic trade fair in Germany.
Three of the four new companies new customers are mainly in the Eurozone, thereby accessing vital new, non-sterling markets.
Dennree, a German wholesaler who supply 1500 natural food shops are the major coup for the Cahir based company.
The retail market in Germany differs from that of Ireland or the UK: natural food stores, which are more like wholefood delis than Irish health food shops, are quite prominent. Global supermarket chains are less dominant than in Ireland. Dennree also supply Austria and northern Italy.
In Denmark, Calu, who supply the niche sections of mainstream supermarkets will be taking Irish meat products from Good Herdsman.
Both Denmark and Germany have very strong organic sectors (Denmark was named organic country of the year at Biofach this year) and neither are suffering from the recession to the same extent as Ireland.
In Holland, an organic supermarket chain called Ecoplaza, while in France, an internet company called Vitafris are the new customers.
A combination of an innovative new style of packaging and premium cuts from a country with a clean green image seems to have been the winner for Good Herdsman at BioFach.
�We had more competitors taking pictures than customers� according to Josef Finke of the Good Herdsman. �The packaging and presentation went down very well.�
Good Herdsman have developed a new style of packaging which allows for their own retail packs to be made in Ireland and exported. This too is better for the Irish economy: previously Good Herdsman's meat was exported to be cut and packaged on the Continent.
With production, slaughter, processing and packaging done in Ireland, more mark up revenue is retained in Ireland.
Initially matured for 21 days, the new skin or film packaging Good Herdsman have developed allows for further maturing of the meat in the pack. �The meat is on a tray and has a film put around it in a way which prevents any air from getting in between� Finke tells me. �This allows for an extra 21 days of shelf life�.
The tray for the packaging is compostable, while the film is biodegradable: �a retail product on the continental market needs this level now�. They are also looking into making the tray biodegradable in the near future.
Stylistically, as well as visible meat, the packaging has a very striking black and white image of Ireland, which allows it to stand out from the multi coloured crowd. This packaging also allows for fixed weights to be sold, which internet sellers in particular are attracted to.
The new range is called Organic Steakhouse. �This we feel has the right associations. Steakhouses are known for good quality steaks at an affordable price. Also the word 'steakhouse' can be read and easily understood in many languages.�
According to Finke, along with Ireland's clean green image, and of course the economic situation, Irish cattle breeds proved to be of interest to these new customers:
�Breed actually came second after price� he tells me. �They loved the fact that the traditional breeds, Herefords and Angus, are used as mothers, with the Continental bull on top�.
Four beef and two lamb cuts have been introduced into these new markets. In lamb noisettes and leg steaks, while in beef striplion, sirlion, ribeye, and minute steak are being supplied.
I spoke to a farmer recently who visited a farm shop near Munich during BioFach. He found that, despite food in general being cheaper in Germany than Ireland, conventional Charolais beef from the farm was achieving 50E per kilo at the farm shop.
I put it to Josef Finke that the price the German consumer is willing to pay for quality organic beef should benefit Irish farmers:
�We managed to get the prices in Germany, France and Denmark that we need. This means that we do not have to put as much pressure on the other end: we want to try maintain the farmer's price. This strategy may or may not work, but so far looking good.�
Friday, January 23, 2009
New organic certifier announced for Ireland: IMO
Earlier this month, the Institute of Marketecology (IMO) were approved to operate in Ireland as a new organic certification body.IMO are a large globally recognised certification body, for whom organic is just one area.
This again brings to three the number of organic certification bodies in Ireland: until quite recently, the Irish Organic Farmers and Growers Association (IOFGA) and Organic Trust were accompanied by Demeter Standards, the certification branch of the Biodynamic Association of Ireland.
IMO has been active in the field of organic certification for more than 20 years. Their world-wide activities are accredited by the Swiss Accreditation Service (SAS).
Thus far, IMO have had a presence in Ireland through certification of aquaculture products as organic to the private German-based Naturland standard. Irish Companies such as Atlantic Fare list Naturland amongst their certification bodies.
According to Minister for Food Trevor Sargent TD, who announced the arrival of IMO as a certification body, �With the inclusion of aquaculture within the scope of the new Organic Regulation from 1 January 2009, there should be opportunities to expand the organic aquaculture sector and IMO�s approval is therefore timely.�
The issues facing the seafood sector have been outlined elsewhere in this edition, and indeed in last weeks. This boost for the organic aquaculture industry in Ireland is noteworthy, especially as this particular sector does indeed seem poised for action.
Take for example the attendees at the upcoming BioFach event, Europe�s largest organic trade show. Each year, over 2500 exhibitors and 45,000 visitors attend the show in Germany.
Historically, Ireland�s representation at BioFach has been very poor. While the exception has actually been the seafood sector, this year, their presence has increased.
At the upcoming exhibition in February, the vast majority of the 20�odd Irish attendees registered thus far are seafood related, from seafood companies such as Irish Seaspray to suppliers of feed to the sector.
While they have a strong base in seafood, IMO�s potential expansion beyond aquaculture would make for interesting times for the other certification bodies in Ireland. IMO claims to have representatives in over 30 countries and activities in over 90 countries.
Their global clients include US-based Whole Foods and Dr. Bonner. Their relationship with Wholefoods led to the Whole Trade Guarantee program, which includes both social justice and environmental dimensions.
This reflects trends at the global organic movement level, through the activities and statements of organisations like IFOAM, the International Federation of Organic Agriculture Movements, who are the umbrella group for organic organisations across the world.
On the ground, however, organic certification bodies are constrained by their resources and remit.
Many in indigenous organic organisations feel frustrated that they are essentially doing the state�s work - certification � rather than any of the other myriad areas for which they have little time. These include educational, promotional, representational, supportive, advocatory or advisory.
It is also unclear what the consumer will make of another certification body. At present in Ireland, recognition of the two Irish-based certification logos is very low � lower than that of the UK�s Soil Association logo in fact.
According to the research, for the Irish consumer, the word organic is �the logo�. Soon, the consumer will have yet another logo to decipher, the mandatory EU logo, which is currently being redrawn.
It is also of course the case that arrival of another certification body will be hailed as welcome competition. This may be so.
However, there has been competition between IOFGA and the Organic Trust for many years. All the while, this competition was accompanied by calls for one organic organisation, as well as calls for the organisations to work more closely together.
Just how a pan-global organisation will adapt to the nuances and peculiarities of the Irish situation remains to be seen. They can of course point to expertise in this area, having representatives in so many countries.
And with the UK�s Soil Association possibly sounding out its own arrival into the Irish organic certification scene, those considering the organic option may soon have a veritable a la carte menu to choose from.
Tuesday, February 12, 2008
scale, trade, organics and north Clare: BioFach and burrenLIFE
February can be a quiet month. However, there are two noteworthy events on this February, and they suit organic farmers and food producers at opposite ends of the spectrum.
The first is called BioFach. This is the largest traveling organic trade fair in the world. It is held in various locations all over the world each year:
Last year BioFach attracted over 45,000 trade visitors and over 2,500 exhibitors. This was an increase in trade visitors of 22%. The satisfaction rates were also extraordinarily high, with over 90% finding that they met their key target clients, experienced follow up business and made new business connections.
Natural health, cosmetic, kitchen and varying types of animal products complement the organic food-related products, the latter of which dominates proceedings.
The categories of attendees is also revealing: it tells as much about the differences in organic markets on mainland Europe as in the
As regards visitors� express interests, they ranked as follows: fruit and vegetables, organic agriculture and marketing, meat, dairy and eggs, other food and then natural products (i.e.non food products). That actual straightforward food - fruit and veg, meat, milk and eggs, organic agriculture and other food - all ranked so highly suggests that there is a stubborn preference for underprocessed, natural foods, even amongst this elite set of organic sector trade and industry specialists.
Irish representation has been incredibly poor at BioFach. Delegates from 112 countries attended last year. For some reason, those part of or affiliated in some way to the organic fish sector have been quick of the mark, with almost no other players present as exhibitors.
The scale of some of these players is revealing as to the scale of the exhibitors at BioFach. With the exception of Geaoid Debruen�s Aran Gourmet, all other trade attendees were on a large, global and industrial scale. Bord Isciagh Mhara and the Irish Seaweed Industry Organisation were complemented by Atlantic Fair, BioAtlantis, Irish Seaspray, Celtic Sea Minerals and the like.
Celtic Sea Minerals supply the products globally to the animal feed industry, animal hygiene and environmental treatments markets. They are certified by the Organic Trust. They supply a the dairy feed market with a marine algae, high in calcium, magnesium and other minerals which acts as a rumen buffer, along with supplements for the pork and equine markets.
Irish Seaspray supply Irish seafood around the world, including
The other event on this February is at an altogether different end and scale of the food system. This event is a 3 day international conference organised by the BurrenLIFE project. The event will be in the Ennistymon, in the Falls Hotel from the 24th to 27th February, and will be themed around farming for conservation.
I�ll leave you with this one to ponder: which event most represents the true meaning of the word �organic� � the low impact, environmentally aware, managed farming of the BurrenLIFE project, or the globalised, industrialised but certified organic world of bioFach?
For more see: bioFach and