3608: Probleme konventioneller Hersteller beim Einstieg in die Öko-Vermarktung [Problems of Food Industry in the Transition toward Organic Markets]

Dienel, Dr. Wolfram (2005) Probleme konventioneller Hersteller beim Einstieg in die Öko-Vermarktung [Problems of Food Industry in the Transition toward Organic Markets]. Paper presented at 8. Wissenschaftstagung Ökologischer Landbau - Ende der Nische, Kassel, 01.03.2005 - 04.03.2005; Published in Heß, J and Rahmann, G, Eds. Ende der Nische, Beiträge zur 8. Wissenschaftstagung Ökologischer Landbau. kassel university press GmbH, Kassel.

Summary

Large food companies rarely produce organic products in Germany. Core problems on the economic level are:
• The target groups of the organic market are too small. Market increase requires the exploration of new target groups beyond the typical consumer of organic food.
• Small units lead to high costs per unit and to a vicious circle of too high prices and buying abstinence (in spite of “eco-affinity”).
• Organizational deficits in the marketing chain and inside enterprises hamper a proactive eco-marketing.
There are also problems at the psychological level: The management in conventional food industry fears discrimination of their conventional range and therefore a loss in total turnover. However, this fear is not supported by any empirical experience. In contrast, positive image spill-over effects from the organic range towards the conventional range could be observed. We observed two reasons for this virtual threat:
• No conviction in the potential for demands of organic products.
• Emotional resistance against the lifestyle criticism of the organic movement.
Prospect: Marketing and organizational problems require an active Marketing-Chain-Management inside and outside of enterprise borders. In a horizontal cooperation processors should develop a joint eco-marketing for their organic supplies. Motivational resistance has to be solved before looking for technical or economical solutions.

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