Organics to get cheaper, claims Soil Association

Many organic foods could soon be cheaper to produce, and therefore buy, than other alternatives as economic hardship bites, the Soil Association (SA) has claimed.

Rejecting claims that organic food would be priced out of a cash-strapped market, the organisation revealed a dossier of 20 products, including cheese, coffee and jam, that were cheaper than non-organic versions.

Comparable products were bought on the same days in July and August. However, the SA admitted prices would differ between supermarkets.

The SA also unveiled a report from farm business consultant Andersons, The impact of rising oil prices on organic and non-organic farm profitability. It showed if oil prices hit $200 per barrel, production costs would favour firms using combinable organic crops, such as wheat and barley, and many organic root crops. That would be because of the extra cost of mineral oil-based fertilisers for non-organic suppliers, while organic firms rely on nature to aid growth.

"This study suggests that as oil inevitably becomes scarcer and costs more, economic forces will increasingly favour organic farming," said SA policy director Peter Melchett.

The report coincided with data from Taylor Nelson Sofres (TNS) published by The Guardian showing falling organic food sales.

The SA said sales could be levelling off, but that TNS figures would not cover sales from sources such as farmers' markets.

Neil Burchell, md of Rachel's Organic, said branded organic sales were "holding up well". He said he would be "fascinated" to see Andersons' research, as many costs were higher for organic firms and yields were lower.

The SA's offensive came as it geared up for Organic Fortnight, which begins on September 6.