Agriculture Reference
In-Depth Information
Expanding the 'market' for organic foods
The foregoing discussion has highlighted options for promoting continued expansion in the
organic market. Consumer surveys from around the world consistently indicate both that
most Western consumers are positively disposed towards organic foods and that the major
barriers to their increased consumption of those foods are perceived to be their price and
availability. The experience of major retailers in Europe is consistent with these claims (Richter
et al . 2001). Those countries with comparatively more mainstream retailer involvement in the
organic sector and/or lower retail premiums tend to have higher per capita levels of organic
food consumption. At the same time, those retailers that report the most corporate benefit
from organic sales are those that offer a comprehensive choice of easily identifiable organic
product lines. Consumer research also highlights the importance of credibility and trust (see
Lockie et al . 2002), matters that increasingly are addressed though the implementation of
strictly regulated standards setting and inspection regimes.
We have no wish to imply here that all organic producers or processors need to do is get a
certified product to market and it will sell itself. Although there is insufficient space here to
discuss the issue fully, we suggest that one of the characteristics common to many growers,
processors and retailers who have successfully expanded their sales is the considerable effort
they have put into a supply chain organisation (see Halpin 2004b). The key point is that resolv-
ing the supply side issues necessary to promote market expansion involves more than simply
expanding production or putting more product lines on the shelf. For supermarkets that trade
on convenience and choice, the focus of coordination is on securing supplies of consistent
quality and quantity across a diverse product range. Strategies to achieve this range from sup-
porting the conversion of conventional enterprises to organic production and processing, to
encourage the pooling of produce from smaller farms into larger consignments, and import-
ing supplies from elsewhere. Even farmers' markets, community supported agriculture and
box schemes that trade on seasonality, locality and community may be seen as methods to
introduce convenience and choice to the realm of direct sales by making it easier for consum-
ers to access a wider range of produce. Organisers of such schemes often supply recipes and
other information to help consumers cope with the 'inconvenience' of seasonal gluts and
shortages and with unfamiliar produce.
As important as supply chain organisation and standards regulation are to the organic
market, we cannot overlook the questions of how organic foods are promoted and to whom.
Organic foods are consumed in at least small quantities by enough Western consumers that
there is little to differentiate between those who do eat organic food and those who do not
(Pearson 2002). The values that underpin organic food and agriculture, environmental sustain-
ability, food safety and nutrition, animal welfare and so on, are widely perceived as important
(Lockie et al . 2002). Nevertheless, the most committed consumers of organic food are those
who place a high value on the perceived 'naturalness' of food (Lockie et al . 2004). These are
more likely to be women than men, and more likely than not to take major responsibility for
food shopping and preparation within their household. This group do not need to be convinced
of the merits of organic foods. Further, even though the demands placed on their time by
responsibility for food provisioning lead this group to place a high value on convenience (Lockie
et al . 2004), this is the group most likely to actively seek out organic foods and to adapt their
shopping behaviour accordingly. In doing so, members of this group may challenge the idea
that large supermarkets are as convenient as they are widely perceived to be and the notion that
taking time to think about food is an inconvenience (Lockie 2002). In promoting organic foods
to this group, the key attributes are naturalness and authenticity. They are uncomfortable with
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