Improving market intelligence for organic horticulture in Wales

Summary in the original language of the document

The organic market in the UK reached a value of £1.015 billion during the 2002/2003 financial year. The market for organic food and drink in Wales and the surrounding counties is estimated to account for 6.3 per cent of this, a total of £64 million. Assuming the proportion of sales of organic fruit and vegetables in Wales is the same as the UK as a whole then the market for organic fruit and vegetables in Wales can be valued at £20.5 million for the financial year 2002/03.
The area of fully organic horticultural land in Wales in April 2003 was 513 hectares with 102 producers involved in organic fruit and vegetable production. Of these producers, over 60 per cent were mixed farms encompassing livestock and/or cereals alongside horticulture. The estimated farm-gate value of Welsh produced organic fruit and vegetables was £1.8 million, approaching 5 per cent of the total UK farm-gate value of £43.96 million. Organic horticultural production accounts for a significant proportion - 10 per cent - of the total horticultural land in Wales. In comparison, organic horticulture in the UK as a whole accounts for just 4 per cent of the total horticultural land.
Interviews with Welsh growers identified a number of key challenges facing them including market access, lack of producer co-operation, increased competition (particularly from within the UK) and availability of labour.
At the beginning of 2003, 103 licensed organic processing operations were operating in Wales with approximately one-third handling fruit and vegetables. The main constraints to increasing the utilisation of domestic produce were identified as continuity, quality, accessibility and reliability of supply.
Key recommendations to help overcome many of the challenges identified are included in Chapter 6 - Conclusions and Recommendations.
Fruit and vegetables are a key entry point for consumers beginning to buy organic food. Welsh consumers are less ‘put-off’ by the price of organic food than consumers across the UK as a whole. Supporting the local farmers is particularly important to the Welsh consumer, with 35 per cent of the Welsh organic buying public stating that it was important to support local farmers, compared to 16 per cent in the UK overall.