Economy Causing Troubles in UK Organic Market

" ORGANIC farmers are being squeezed by the UK economic downturn, which has led to lower demand and reduced prices from retailers, it was claimed yesterday.

The Scottish Organic Producers Association (SOPA), which represents the bulk of organic farmers in Scotland, warned that some of its members are finding it increasingly difficult to stay afloat.

As well as seeing a slackening of demand for meat and dairy products, organic farmers are struggling with soaring oil and grain prices, which have pushed up the cost of production even higher than for conventional farmers, it was claimed. The warning came after a report by market research company TNS published yesterday found that spending on organic food and drinks had dropped as shoppers sought to reduce their grocery bills.

After years of rapid market expansion, driven by a rise in ethical shopping and concerns over the food industry, spending on organic food and drinks fell from a record GBP100m per month earlier this year to GBP81m per month in the most recent four-week period recorded.

There were conflicting reports as to whether the credit crunch had affected consumer spending on organics north of the border, with suggestions that some supermarkets had even witnessed a rise in demands for certain products."

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