The Organic Trade Board will receive €10.4 million’s worth of European funding over the next three years, to be shared with its counterpart Organic Denmark, following a successful joint application.
The Organic Trade Board will manage the fund on behalf of both countries, focusing on growing retail sales, increasing employment in organic agriculture and raising awareness of the benefits of organic food and drink. 70% of the fund will be spent in the UK, the trade board said, with the rest being spent elsewhere.
It cited figures that showed the UK’s organic market grew by 5.6% in 2016 to a value of £1.4 billion, and a share of total grocery sales of 1.8%. In contrast, the non-organic sector grew by only 0.6% in the same period. But despite this, the country’s performance is far behind that of other European markets, including Denmark, where organic sales were up 18% in the second half of last year to account for 10% of all retail food sales. The UK organic market is half the size of France, and one third that of Germany.
Average growth in organic sales across European countries is 9% per year.
Organic Trade Board chairman Adrian Blackshaw said: “We are delighted to have won this bid and to be able to share best practice with our partner, Organic Denmark. The aim of the campaign, estimated to be the largest international organic campaign, is to grow the organic sector and increase total annual spend on organic. Given the worldwide growth in organics, we are excited at the export potential for UK producers and brand owners.”
The campaign has been match-funded by 60 member companies of the Organic Trade Board, which between them account for 70% of the UK organic market, including Tesco, Sainsbury’s, dairy cooperative OMSCo, brands such as Doves Farm Foods and Rachel’s, plus independent retailers and wholesalers.
Members have pledged £340,000 per year, with the total fund set to be £1.7 million a year.
Responding to the award of the funding, Soil Association business development director Clare McDermott said: “The Organic Trade Board’s successful bid for continued EU support is fantastic news. Our recent research, coupled with strong organic market growth (up 6% in the 52 weeks to 1 October 2016), shows there are huge opportunities for organic in the UK. Our research showed more and more people are worried about where their food comes from – organic has the answers and this added boost from EU funding, secured by the Organic Trade Board, will help make organic an even bigger part of retail in the UK. This will help everyone right through the supply chain, not just the members of the Organic Trade Board, but all Soil Association Certification licensees, farmers, processors, brands and businesses.
“We know investment lifts the market – just this year Organic September helped sales reach and maintain 6% year-on-year growth. Building on this and existing work from the Organic Trade Board, the Soil Association and the wider organic industry, we can now further improve awareness of organic. The next three years will be an exciting time for the sector.”
And Organic Denmark marketing director Henrik Hindborg said: “Denmark has become the world’s leading organic nation, with organic food sales representing 10% of all food sales in 2016, moving organic from ‘niche’ to ‘mainstream’. We have had ten years of consistent growth, with half of all Danes now buying organic food every week. This has been achieved through a combination of effective organic policies and close co-operation with Danish retailers. We are looking forward to working alongside our British counterparts and sharing our joint enthusiasm and expertise.”
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