Growers should have realistic expectations on prices

Current organic wheat trading prices are good value and growers should not assume price hikes seen over the last 12 month will happen again.

In addition, if organic food is to remain competitively priced in the supermarkets, then growers’ expectations regarding crop prices should remain realistic.

That is according to Nigel Gossett of Suffolk-based grain traders Norton Organic, who gave an overview of the organic market at the event.

“One year ago we were bidding £180 to £190 per tonne for new crop and now it’s £240-£250, but I don’t think growers should be bargaining on another price hike,” he said. “It’s more likely to settle around £250/tonne.”

Mr Gossett said it was key organic products remained competitively priced in supermarkets during what were difficult times for the consumer.

Recession hit

Although the organic retail sector had been hit hard by the recession, there was room for optimism in the organic market.

“Sales in 2010 have fallen to £1.73 billion from a £2.1bn high in 2008 but we have to remember, prior to 2008, we had seen a 25 per cent year-on-year rise in sales for the previous decade.

Because the organic sector has a relatively low proportion of crop production in the east of the country, many crops have escaped the worst of the drought this season, but cereal yields will still have been hit.

“The highest concentration of producers is in the South, South West and North West, but it was dry in some of those areas too. We believe that organic wheat yields will be about five per cent down on the five year average, but barley, much of which is spring sown, could be 10-15 per cent down.”

Organic crops had not appeared to have been as susceptible to drought stress as conventional crops this season, said Mr Gossett.

Have your say

Please do not complete the following form field for security reasons.

Name

E-mail

Comment