?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.title=Market+Review+of+the+Welsh+Organic+Horticulture+Sector%2C+2007&rft.creator=Hitchings%2C+Roger&rft.subject=+Markets+and+trade&rft.subject=+Vegetables&rft.subject=Fruit+and+berries&rft.description=The+supply+situation+for+Welsh+organic+horticultural+products%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.+Looking+further+back+there+was+a+time+when+horticultural+production+represented+a+considerable+proportion+of+Welsh+organic+output+and+played+a+significant+role+in+the+development+of+the+organic+market+as+a+whole.%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+thousand+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.+There+is+however+little+evidence+that+this+is+mirrored+in+the+horticulture+sector+-if+anything+there+has+been+a+reduction+in+the+horticultural+production+area.+The+latest+Defra+statistics+show+that+there+has+been+a+decline+in+organically+managed+horticultural+land+in+Wales+from+722+hectares+in+2003+to+649+hectares+in+2005.%0D%0AActual+output+of+Welsh+fruit+and+vegetables+is+more+difficult+to+quantify+reflecting+a+continuing+need+for+improved+statistical+data+to+support+market+development+and+the+delivery+of+public+policy.+Better+data+is+available+for+the+UK+as+a+whole+but+a+significant+effort+will+be+needed+to+dis-aggregate+the+output+data+for+Wales.+The+UK+data+show+the+overall+organic+market+increasing+to+%C3%82%C2%A31.6bn+in+2005+and+the+organic+vegetable+market+increasing+at+a+faster+rate+despite+falling+back+in+absolute+terms.+UK+organic+horticultural+land+is+increasing+but+not+at+the+same+rate+as+the+market.+It+is+predicted+that+UK+self+sufficiency+(which+has+increased+to+62%25+over+the+last+four+to+five+years+will+fall+away+as+imports+increase+to+fill+the+widening+gap+between+UK+production+and+UK+consumption.%0D%0AOrganic+farm+gate+prices+for+fruit+and+vegetables+have+been+under+continuing+downward+pressure+over+the+last+five+years+and+this+fact+has+been+cited+as+one+of+the+contributory+facts+behind+the+relative+lack+of+horticultural+land+coming+into+conversion.+These+pressures+do+not+necessarily+bear+directly+on+the+localised+marketing+that+is+common+among+Welsh+organic+producers+but+supermarket+prices+do+provide%0D%0Asomething+of+a+benchmark+for+such+operations.+There+is+evidence+of+significant+price+increases+in+the+conventional+sector+following+last+summer%C3%A2%C2%80%C2%99s+heat+wave+but+it+remains+to+be+seen+if+these+are+reflected+in+the+organic+sector.%0D%0AThe+original+market+intelligence+report+published+in+2004+provided+a+useful+starting+point+for+this+review.+The+majority+of+producers+who+has+seen+it+found+it+useful+but+they+were+a+relatively+small+number+of+those+that+were+asked.+A+number+of+extremely+useful+and+pertinent+recommendations+were+made+and+these+will+be+reviewed+in+the+conclusions+to+this+report+i.e.+to+what+extent+were+they+taken+up%3F%0D%0AA+grower+survey+was+undertaken+using+a+detailed+telephone+questionnaire+and+a+56%25+response+achieved+from+a+list+of+110+producers.+Highlights+included+the+fact+that+the+62+respondents+represented+some+83+hectares+of+horticultural+output%2C+a+figure+that+is+at+odds+with+the+Defra+statistics+even+when+allowances+are+made+for+non-respondents.+75%25+of+respondents+were+marketing+locally+in+one+form+or+another+while+labour+issues+were+seen+as+the+most+common+restraint.+Growers+felt+that+the+market+was+expanding+and+many+were+confident+abut+the+future+though+a+significant+number+had+given+up+or+were+giving+up+for+reasons+of+age%2C+health%2C+etc.+In+terms+of+market+information+there+was+a+strong+response+for+price+information+and+also+market+trends.%0D%0AThis+was+followed+by+a+trade+survey+that+included+box+schemes%2C+small+retail+outlets+and+wholesalers.+All+those+questioned+were+unanimous+that+demand+for+organic+produce+in+general+and+Welsh+organic+produce+in+particular+is+running+at+unprecedented+levels.+Traders+are+finding+it+extremely+difficult+to+source+the+produce+they+need+from+Wales+and+are+therefore+importing+it+from+countries+such+as+France+and+Holland.+A+significant+proportion+(up+to+60%25)+of+this+produce+could+be+grown+in+Wales.+Difficulties+cited+included+lack+of+support+payments%2C+low+profitability%2C+certification+fees%2C+a+reluctance+on+the+part+of+growers+to+expand%2C+and+the+increasing+age+of+the+present+grower+base.%0D%0AIt+is+possible+to+use+these+responses+and+set+them+alongside+the+wider+data+to+generate+a+market+assessment+for+organic+fruit+and+vegetables+in+Wales.+Using+the+assumptions+of+the+earlier+market+intelligence+report+we+can+arrive+at+an+estimate+of+the+potential+market+for+organic+fruit+and+vegetables+in+Wales+of+%C3%82%C2%A332.3m+across+all+outlets.+Organic+Monitor+reports+a+sharp+increase+in+demand+for+fruit+and+vegetables+in+2006.+Set+against+this+is+the+progressive+reduction+in+both+real+and+relative+terms+of+the+Welsh+production+base+for+organic+horticultural+produce.+It+is+difficult+to+produce+an+estimate+but+it+is+unlikely+to+exceed+the+estimate+in+the+earlier+report+of+%C3%82%C2%A31.3m.+What+is+clear+is+that+the+gap+between+production+and+demand+is+widening+at+a+rapid+rate.+It+is+possible+to+generate+profits+through+the+growing+of+organic+horticultural+crops+but+a+rigorous+financial+analysis+is+essential+before+embarking+on+such+a+course.%0D%0ASWOT+analyses+from+earlier+reports+are+discussed+and+placed+in+the+present+day+context.+Familiar+issues+of+unsuitable+infrastructure%2C+topography%2C+isolation%2C+lack+of+cooperation%2C+availability+of+labour+and+poor+returns+feature+both+then+and+now.+There+are+a+number+of+opportunities+arising+from+the+developing%2C+public+procurement+and+consumer+support+for+Welsh+produce.+The+major+issue+is+however+the+threat+to+the+existing+grower+base+and+an+inability+to+address+the+many+opportunities+because+of+a+lack+of+new+entrants.%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+do+not+always+reflect+the+costs+of+production%2C+access+to+markets+and+a+distinct+lack+of+support+for+the+sector.%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+consideration+should+be+given+to+the+development+of+an+organic+price+exchange+service+possibly+in+conjunction+with+other+agencies+and+organisations%0D%0A%C3%A2%C2%80%C2%A2+continued+efforts+to+support+producer+groups+in+developing+markets+for+organic+fruit+and+vegetables+and+in+seeking+to+achieve+realistic+prices%3B%0D%0A%C3%A2%C2%80%C2%A2+wider+publicity+of+the+potential+demand+and+market+opportunities+for+organic+horticultural+produce+through+a+series+of+events%2C+articles+and+other+media+coverage%3B%0D%0A%C3%A2%C2%80%C2%A2+the+re-vamping+of+and+wider+publicity+for+the+present+Organic+Market+Wales+as+a+contribution+to+the+wider+publicity+effort%3B%0D%0A%C3%A2%C2%80%C2%A2+enhanced+payments+through+the+OFS%3B%0D%0A%C3%A2%C2%80%C2%A2+a+distinct+arm+of+the+Farming+Connect+service+that+addresses+the+needs+of+horticultural+producers%3B%0D%0A%C3%A2%C2%80%C2%A2+more+linked+planning+of+events+with+other+development+centres%2C+companies%2C+organisations%2C+etc.%0D%0A%C3%A2%C2%80%C2%A2+an+increasing+focus+on+education+in+order+to+signpost+opportunities+for+young+people%3B%0D%0A%C3%A2%C2%80%C2%A2+a+linking+mechanism+for+putting+new+entrants+to+the+sector+in+touch+with+land+owners+interested+in+renting+land%2C+share-farming+and+share-cropping%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+a+key+area+for+development+is+the+encouragement+of+protected+cropping+systems+along+with+a+sympathetic+approach+from+planning+authorities%0D%0A%C3%A2%C2%80%C2%A2+a+clear+identification+of+suitable+areas+for+both+conventional+and+organic+horticultural+production+along+with+guidance+on+how+to+deal+with+the+particular+soil+types+and+prevailing+climate%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+horticultural+and+organic+sectors%3B%0D%0A%C3%A2%C2%80%C2%A2+joint+working+arrangements+with+Organic+Centre+Wales%2C+Horticulture+Network+Wales%2C+Centre+for+Alternative+Land+Use%2C+Welsh+College+of+Horticulture%2C+machinery+rings+and+others+%C3%A2%C2%80%C2%93+this+could+lead+to+a+virtual+centre+where+growers+could+access%3A%0D%0Ao+market+intelligence+information%0D%0Ao+land+availability%0D%0Ao+machinery+and+machinery+ring+contacts%0D%0Ao+information+on+labour+and+available+skills%0D%0Ao+technical+information+and+advice%0D%0A%C3%A2%C2%80%C2%A2+better+linkage+with+the+dairy%2C+arable+and+red+meat+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%2F11071%2F1%2Fhort_market_review_2007_report_final.pdf&rft.identifier=Hitchings%2C+Roger+(2007)+Market+Review+of+the+Welsh+Organic+Horticulture+Sector%2C+2007.&rft.relation=http%3A%2F%2Forgprints.org%2F11071%2F