The European organic food market continues to grow. According to FiBL, the Organic Agriculture Research Institute, sales reached 45 billion euros in 2019 with a growth rate of 8% in the region. In the decade 2010-2019, the value of the European market has more than doubled, the organization noted.
The increase in agricultural land devoted to organic production also follows this upward trajectory. Between 2010 and 2017, organic farmland increased by 70%, as shown by Eurostat data.
According to the European statistics agency, a “driving force” for this growth has been the “relatively high price premium that organic products can get.”
Eurostat reports that organic products can be up to 150% more expensive than comparable conventionally produced products. This reflects a variety of factors, including higher production costs and lower yields. Eurostat noted that the yield on organic farms, which varies significantly from one crop to another, can be 40% to 85% lower than that of non-organic farms.
But these statistics could be misleading, suggested Alara Wholefoods founder Alex Smith. “The way I see it, the organic has a problem with perception rather than reality. Many organic products are already very affordable if you make a direct comparison … I am sure it is possible to eat well organically for £ 2.50 a day per person, although I appreciate that this is quite a lot for some families. “
This direct comparison also does not take into account the “true cost” associated with conventional production. Smith believes that we must look beyond the price tag to accurately compare the price of organic and non-organic food.
“A key reason why organic foods seem to cost more is that in the case of non-organic foods, a lot of costs are outsourced. Therefore, the contribution of artificial fertilizers to global warming (10% of the total) is not included. The loss of biodiversity is not included, pesticides that kill the human microbiome are not included ”.he told FoodNavigator.
“In the UK, the main driver of government policy is making food cheaper. If real costs were included, non-organic food would be much more expensive. “
Organic food that doesn’t cost the earth
Alara is launching a new range of affordable organic mueslis to challenge the idea that organic food is expensive food. Affordability and accessibility were key goals during the development of the robust new four-product range.
“Affordability is rarely part of the organic conversation. That’s partly because the organic sector is involved in a major debate to highlight the environmental and public health costs of cheap food. But at Alara we want to show that organic is good value for money and, in many cases, it is really affordable. I think we have a responsibility as a movement to make organic accessible to as many people as possible. “
With a retail price of £ 2.70 to £ 3.29 for a 650g pack, a 70g serving costs around 30 cents. “We believe it is a very affordable price for a nutritious breakfast made with high-quality, organic ingredients and responsibly sourced.”Smith said.
How has the company been able to achieve this?
The decision to offer affordable organic products has an impact on margins, but Alara has been able to swallow it, Smith revealed. “At Alara we are a well established company and we can operate with lower margins. We also have very good and long-standing supply partners, so we can pass these benefits on to customers at affordable prices. “
Indeed, the organic pioneer continued, close collaboration throughout the supply chain has been crucial. “A vital foundation on which we can offer affordable organic food, [is our] supplier partners. We pay before shipment or immediately after receiving the merchandise, so we have no creditors. Since the starkest reality in business is cash flow, we believe we are helping build a sustainable supply chain. Economic sustainability is one of the four pillars of Alara’s sustainability ”.
Smith insisted that this model means that the delivery of cheaper organic food does not detract from production standards or livelihoods in the supply chain. Alaea’s Affordable range is based on the principles and priorities that the company has developed during its 45 years of work in the production of organic and sustainable food.
“The Affordable Organic range brings together all the values that underpin Alara’s entrepreneurial spirit, which we have been developing for more than four decades. That includes our initial commitment to organic, a business ethic based on sustainability and fairness, being a zero-waste, carbon-neutral manufacturer, and never compromising on quality and great taste. These are also the first Alara products to carry a Scope 3 carbon statement on the package, and information on how we have offset carbon embedded in the products through our five-year partnership with Rainforest Saver. “Smith elaborated.
.