Organi cs _in the

Recession:

Bailing or Booming?

Organic food sales have suffered as

consumers tighten their belts in the

recession, but committed consumers

are staying loyal and a local organic

movement is emerging.

WIth SaleS oF orGanIc ProdUctS at supermarkets being hit hard by the recession, statisticians and the media are concluding that while buying organic is a nice idea, it is not sustainable during tough economic times. However, certain consumers with a desire to buy local are proving otherwise. The organic movement has moved from aboveground, organic supermarkets to the underground, creating organic communities where people are supporting each other locally.

After 10 years of dramatic growth, sales of organic products in supermarkets have experienced a slowdown. The Nielsen Company reports the volume of organic products sold in America rose just 4% in 2008 compared with 20% in 2007. In the UK, a report by the Soil Association, which accredits eight out of 10 organic products in the UK, released figures showing organic sales grew by only 1.7% in 2008, compared with 26% growth every year since 1993.

Although outstanding growth in any sector of the economy eventually slows and then plateaus, there is no denying the recession and the consequent rise in the cost of organic products is making it more difficult for consumers to choose organic over conventional when the price difference at the supermarket is so significant. For example, Whole Foods Market, the largest retailer of organic products, with stores in the U.S., UK and Canada has been hit hard by the recession, reporting significant losses in sales and a 20% downturn in its stock for 2008.