Soaring Demand for Organic Food Overwhelms Stores
November 7, 2004
By Henriëtte Geldenhuys
SUPERMARKET chains are scrambling to source enough organic (chemical-free) products to supply consumer demand for healthy food.
Woolworths is hovering at R1-million a week in sales of organic products, compared with three years ago when it sold only R50000 worth.
Checkers says sales of organic products have doubled in the past year, while Pick 'n Pay reports "steady growth" in the market.
Woolworths launched its first organic products in 1999, followed by Pick 'n Pay in 2000 and Checkers and Spar in 2002.
Pick 'n Pay is expanding its range and has instructed suppliers to "process more mainstream organic lines, including bananas, tomatoes and lettuce," says the general manager of Pick 'n Pay's produce division, Peter Arnold.
Demand far outstrips supply, says Organics SA head Leonard Mead, adding that there is a "huge" shortage of organic milk and chickens. "There have been a lot of advances in free- range and organic eggs, but there are no organic chickens," he says.
The head of marketing at Checkers, Brian Weyers, says the chain store has listed 94 organic products, but they are not always available "because the supply is not keeping up with the demand and the expectations of consumers".
Arnold says organic products represent 5% of Pick 'n Pay's total food turnover, but predicts it will reach 10% to 15% in five years' time. "This is an international trend. It's not a gimmick," he says.
Mead says organics are still a small part of the food industry, but "it's not seen as a fad anymore. It's not going to take over the food industry, but it will play a major role".
He says there has been "dramatic growth" in the market in the past eight months. "Up to December last year, it was a bit sluggish. Yes, there was interest here and there, but literally in the last eight months, there's been a huge change."
Woolworths started small, with 10 lines, but now has over 150 lines, says its product director Richard Butt. About 60% of Woolworths stores stock organic products, he says.
"Customers prefer the taste benefit. They also like the reassurance that the food has been produced without chemicals," said Butt.
Weyers agrees, saying "consumers believe it's healthier and tastier. From our point of view, organic products have a longer shelf life".
Source:http://allafrica.com
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