?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.title=Review+of+the+market+for+Welsh+organic+meat%2C+2007&rft.creator=Cullen%2C+Richard&rft.creator=Lampkin%2C+Nic&rft.creator=Moakes%2C+Simon&rft.subject=+Markets+and+trade&rft.subject=+Sheep+and+goats&rft.subject=+Beef+cattle&rft.description=The+supply+situation+for+Welsh+organic+meat%0D%0AOrganic+production+in+Wales+has+been+developing+steadily+in+the+last+five+years%2C+with+particular+emphasis+on+organic+cattle+and+sheep+production.+This+was+despite+over-supply+conditions+in+some+sectors%2C+notably+dairy%2C+following+the+very+rapid+growth+in+1999%2F2000.%0D%0ABetween+the+end+of+2002+and+end+of+2005%2C+the+number+of+holdings+increased+by+12%25+to+688%2C+and+the+certified+land+area+increased+by+29%25+to+71%2C000+hectares%2C+of+which+more+than+90%25+is+grassland.+Growth+in+Wales+has+exceeded+other+parts+of+the+UK%2C+reaching+5%25+of+agricultural+land+by+end+2005.+More+rapid+growth+is+projected+for+2006+and+possibly+2007.%0D%0AOrganic+cattle+and+sheep+numbers+have+also+increased+steadily+between+2003+and+2005%2C+with+total+cattle+numbers+increasing+by+114%25+to+37%2C000%2C+and+total+sheep+numbers+increasing+105%25+to+248%2C000%2C+representing+17+and+36%25+of+the+end+2005+UK+organic+population+respectively+(compared+with+16%25+of+UK+holdings+and+12%25+of+UK+land+area).%0D%0AActual+output+of+Welsh+organic+lamb+and+beef+is+more+difficult+to+quantifying+reflecting+a+continuing+need+for+improved+statistical+data+to+support+market+development+and+the+delivery+of+public+policy.+Best+estimates+are+4000-5000+cattle+slaughtered+as+organic%2C+but+potentially+available+production+(some+in+conversion+and%2For+marketed+as+conventional)+may+be+as+high+as+8000+head.+For+lambs%2C+possible+estimates+based+on+availables+source+range+from+25%2C000+to+57%2C000%2C+but+potentially+available+production+may+be+as+high+as+100%2C000.+Better+data+is+available+within+the+industry%2C+but+is+regarded+as+highly+commercially+sensitive+and+was+not+made+available+to+the+review+team.%0D%0AOrganic+farm+gate+prices+for+lamb+and+beef+have+remained+relatively+steady+over+the+period%2C+although+the+gap+with+conventional+prices+has+closed+as+the+conventional+sector+has+recovered.+Recent+increases+in+demand+for+organic+meat%2C+and+the+temporary+suspension+of+beef+imports+from+Argentina+(now+restarted)+have+resulted+in+some+strengthening+of+organic+prices+in+2006.%0D%0AOrganic+premium+prices+do+not%2C+however%2C+fully+compensate+for+the+increased+costs+of+production+per+kg+of+meat%2C+so+that+organic+producers%2C+like+their+conventional+counterparts%2C+are+being+paid+less+than+the+real+costs+of+production%2C+and+are+relying+on+Tir+Mynydd%2C+agri-environmental+and+Single+Farm+Payments+to+subsidise+continued+production.+This+leaves+the+industry+vulnerable+to+any+decline+in+market+conditions+and+will+mean+continuing+pressure+on+smaller+producers+to+leave+the+sector.%0D%0AThe+Welsh+organic+red+meat+sector+currently+relies+on+two+main+marketing+approaches.+The+majority+of+lamb+and+beef+(%3E+80%25)+is+marketed+through+multiple+retailers%2C+supplied+by+two+producer+groups.+The+need+for+producer+collaboration+to+ensure+a+strong+price+negotiating+position+with+the+multiple+retailers+is+recognised+and+has+been+yielding+benefits.+The+remainder+of+Welsh+production+is+marketed+on+a+smaller+scale+through+specialist+and+local+retailers+and+directly+to+consumers%2C+through+farmers+markets%2C+farm+shops+and+via+internet+sales.+There+is+currently+virtually+no+exploitation+of+the+potential+export+market+(outside+the+UK)+and+still+some+difficulties+with+marketing+light+and+store+lambs+as+well+as+dairy+bred+calves+and+cull+cattle%2C+although+various+initiatives+are+in+progress+to+address+this.%0D%0A%0D%0AThe+demand+situation+for+Welsh+organic+meat%0D%0AFrom+a+consumer+demand+perspective%2C+the+overall+organic+food+market+is+in+a+healthy+state%3A+according+to+TNS+data%2C+it+has+just+passed+the+%C3%82%C2%A31+billion+mark+and+has+put+on+an+extra+%C3%82%C2%A3200+million+in+the+last+two+years.+Growth+in+the+latest+year+was+10%25+and+17%25+in+the+previous+year.+There+is+still+huge+opportunity+for+growth+by+continuing+to+convert+non-users+and+simply+getting+existing+users+to+purchase+more+often.%0D%0AHousehold+penetration+of+any+organic+product+is+very+high+at+84%25.+However%2C+many+organic+products+are+purchased+by+default%2C+and+are+not+planned%2C+as+consumers+were+either+satisfying+other+needs+or+simply+because+they+liked+the+product.+The+positive+aspect+is+that+organic+is+a+benefit+to+products+that+fall+in+this+category+and+gives+something+extra.%0D%0ACurrent+organic+users+are+also+interested+in+most+of+the+ethical+issues+affecting+society+today.+They+regard+themselves+as+connoisseurs+of+food+and+wine+and+as+such+purchase+quality+and+premium+food.+As+the+main+contributor+to+the+sales+within+each+of+these+sectors%2C+this+may+dilute+the+expenditure+they+could+make+on+organic+food+specifically.+Heavy+users+in+total+organic+represent+20%25+of+buyers+and+they+are+responsible+for+80%25+of+organic+expenditure.+You+would+expect+these+heavy+users+to+be+committed+organic+purchasers+but+they+only+spend+5%25+of+their+grocery+shopping+spend+on+organic+products.+None+of+them+are+exclusive+organic+users+and+they+cross-shop+across+the+retail+quality+tiers+(Organic%2FPremium%2FHealthy%2FStandard+and+Value)+extensively.+In+organic+meat+the+situation+is+the+same.+There+are+0.3%25+of+meat+shoppers+who+buy+only+organic+and+a+further+0.1%25+who+buy+only+organic+and+premium.+The+rest+shop+across+all+the+tiers.%0D%0AThis+does+however+identify+some+of+the+scope+for+expansion+and+these+heavy+users+must+be+prime+targets+for+increased+organic+usage.%0D%0AThe+red+meat+heavy+organic+shopper+will+buy+over+six+times+a+year+but+medium+users+just+under+twice+and+light+users+just+over+once.+This+level+of+frequency+is+low+and+would+suggest+little+commitment+from+the+light+and+medium+buyers+and+a+very+mixed+cross-tier+purchasing+strategy+for+the+heavy+organic+buyer.%0D%0AThere+are+3.2+million+households+in+GB+who+buy+organic+meat+but+there+are+only+68%2C000+who+only+buy+organic+meat.+This+figure+is+lower+than+that+for+any+of+the+individual+species%2C+indicating+that+someone+who+is+a+loyal+organic+user+of+one+species+is+not+loyal+to+organic%2C+when+purchasing+the+other+species.+(Households+who+only+purchase+organic%3A+Beef+108%2C000%2C+Lamb+269%2C000%2C+Pork+112%2C000%2C+Red+meat+68%2C000).%0D%0AHeavy+organic+meat+buyers+will+have+one+or+two+children+and+be+in+social+class+ABC1%3B+they+may+be+younger+and+older+family+groups.+They+are+over+represented+in+London%2C+South%2C+Scotland%2C+East+England+and+the+South+West.%0D%0AWhilst+beef+is+the+biggest+organic+red+meat+sector%2C+it+is+only+1.5%25+of+total+beef+sales%3B+Lamb+is+the+strongest+at+2.2%25+of+sales.+Pork+is+a+clear+third+with+organic+being+1%25+of+sales.%0D%0AOrganic+meat+in+Wales+is+currently+worth+%C3%82%C2%A32.4+million+and+is+growing+at+3%25+a+year.+This+growth+is+coming+from+new+entrants+into+the+market.+Total+GB+is+growing+10%25+ahead+of+Wales+but+the+household+penetration+in+Wales+is+higher+at+13.1%25+compared+to+12.9%25+for+GB.+Growth+in+Wales+is+coming+from+all+age+groups+and+social+classes%2C+with+the+under+28%C3%A2%C2%80%C2%99s+and+the+C2+groups+being+particularly+strong.%0D%0AThis+report+also+looks+at+the+retail+market+in+Great+Britain+for+organic+produce%3B+there+are+additional+opportunities+within+the+foodservice+sector+where+a+number+of+specialist+organic+restaurants+are+appearing+and+interest+shown+by+some+of+the+large+operators+in+including+an+organic+alternative+on+their+menus.%0D%0AThere+are+also+opportunities+for+export+of+organic+Welsh+lamb%3B+currently+some+exports+to+Italy+are+carried+out+and+there+is+further+potential+to+exploit+and+develop+this+market.+The+potential+for+export+of+light+organic+lamb+is+restricted+to+southern+European+markets+due+to+the+small+size+and+high+seasonality+of+the+product.+Hybu+Cig+Cymru+is+have+ongoing+discussions+with+potential+buyers+in+countries+such+as+Portugal%2C+Spain+and+Greece%3B+however+to+date%2C+the+small+volumes+required+have+precluded+meaningful+developments+due+to+logistical+difficulties.%0D%0ARecommendations%0D%0ADespite+the+generally+positive+outlook+from+a+demand+perspective%2C+there+is+a+need+to+address+some+of+the+factors+that+might+discourage+producers+from+converting%2C+including+disruption+to+the+Organic+Farming+Scheme%2C+price+levels+that+are+below+costs+of+production%2C+and+lack+of+markets+for+some+livestock+categories%2C+in+particular+light+lamb.%0D%0ATo+address+this%2C+there+is+a+need+for%3A%0D%0A%C3%A2%C2%80%C2%A2+better+statistical+data+on+current+and+future+production+levels+and+market+shares%3B%0D%0A%C3%A2%C2%80%C2%A2+continued+efforts+to+support+producer+groups+in+developing+markets+for+organic+meat+and+in+seeking+to+achieve+realistic+prices%3B%0D%0A%C3%A2%C2%80%C2%A2+continued+development+of+alternative+marketing+channels%2C+building+on+Welsh+PGI+and+organic+status%2C+including+local+multiple+and+smaller+retailers%2C+public+procurement%2C+distribution+hubs+and+exports%3B%0D%0A%C3%A2%C2%80%C2%A2+consumer+promotion+initiatives+and+increased+Welsh+organic+meat+presence+at+trade+fairs%3B%0D%0A%C3%A2%C2%80%C2%A2+improved+production+systems%2C+supported+by+effective+research+and+development+and+knowledge+transfer%3B%0D%0A%C3%A2%C2%80%C2%A2+improved+integration+of+effort+between+organic+sector+businesses+and+the+agencies+that+support+the+development+of+the+Welsh+meat+and+organic+sectors%3B%0D%0A%C3%A2%C2%80%C2%A2+better+linkage+with+the+dairy%2C+arable+and+horticulture+sectors+to+benefit+from+complementarity+relationships+between+the+sectors+at+production%2C+market+development+and+promotional+levels.&rft.date=2007-06&rft.type=Report&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.identifier=http%3A%2F%2Forgprints.org%2F11070%2F1%2Fwelsh_organic_meat_market_review_final.pdf&rft.identifier=Cullen%2C+Richard%3B+Lampkin%2C+Nic+and+Moakes%2C+Simon+(2007)+Review+of+the+market+for+Welsh+organic+meat%2C+2007.&rft.relation=http%3A%2F%2Forgprints.org%2F11070%2F