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Get your free copyThe study, carried out by Defra, found that the landmass used for organic farming fell to 605,329 hectares last year, a fifth less than when buying organic was at its most popular in 2008.
The decrease is thought to be down to the recession, and cash-strapped consumers unwilling to spend more on organic produce.
However, figures released a month ago by Kantar Worldpanel revealed there had been an increase in organic sales since the start of the horsemeat scandal by 1.6%, the first time the market had seen growth since 2009.
Jim Twine, business development director for the Soil Association, said, “The Soil Association’s 2013 Organic Market report predicted a positive future for the UK organic market and these figures confirm things are improving. Whenever consumer confidence is knocked – as it has been through the horsemeat scandal – people look for food that has a positive story to tell and is fully traceable. Recent moves from supermarkets, with the exception of Waitrose, to allow GM animal feed into the supply chain are also likely to impact on sales because the only way to avoid eating chicken or eggs from animals on a GM diet is to buy organic.
“Turnover declarations from Soil Association licensees showed a 1.6% increase to the end of March. Whilst these figures represent more positive news for the market there is an increasing danger of supply chain shortages of key organic products. To prevent a shortfall, the Soil Association is urging all retailers to work more closely than ever with their organic suppliers to ensure higher farm gate prices, better planning and decent forward contracts. This in turn will help to restore producer confidence and safeguard future supply.”