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Reuters UK Organic Food Sales Top 1.1 Billion Stg/Yr

Date: 16-Nov-04
Country: UK

Figures released by the group, which also acts as certifier of organically-grown foods, said its latest survey shows sales in the sector grew by over 10 percent in the year to April.

"Retail sales of organic food are now worth 1.12 billion pounds (a year) and are growing by 2 million pounds a week -- the rate of growth is twice the rate of the general grocery market," it said in a statement.

The market share held by big UK retailers like Tesco Plc and J. Sainsbury Plc has dwindled, mainly because most organic shoppers look to buy produce directly from suppliers.

The Soil Association said farm shops and home delivery schemes saw sales soar by 16 percent in the 12 months to April and are now worth around 108 million pounds annually.

Demand for organic baby food, which now account for nearly half of all baby food sold in Britain, continued to rise, it said, with sales up by nearly six percent.

"The organic market is thriving and is being driven by consumers who want to buy fresh, local good-quality seasonal food directly from the farmer," Patrick Holden, the Soil Association's director, said.

Analysts say a string of worries linked to mad cow disease, food-and-mouth and genetically-modified food have helped sales of organic produce triple since 1998.

However, the sector still only accounts for less than 2 percent of the total UK grocery business, they added. ($1US=0.5424 Pound)

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