Organic market set for 'major expansion'

The organic market is poised for major expansion and has advantages over conventionally produced food in the area of carbon footprint…

The organic market is poised for major expansion and has advantages over conventionally produced food in the area of carbon footprint, nutrition and animal welfare, the first cross-Border National Organic Food conference heard yesterday.

Lorcan Bourke, a business analyst with Bord Bia, told the 250 delegates in Carrick-on-Shannon that research had shown very positive attitudes towards organic production under the headings he mentioned.

Mr Bourke, who is the chairman of the Organic Market Development Group, said there were difficulties to overcome, such as the premium consumers were prepared to pay, continuity of supplies and climatic conditions which meant some foods could not be grown here. He estimated that there had been a 15 per cent increase in the land area under organic production last year and his best estimate was that the Irish organic retail market was currently worth €66 million, compared to €38 million in 2003.

However, he said, 85 per cent of branded organic food was sold in Ireland through multiple retail outlets and this was likely to be the route most producers would take in the future.

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Opening the event at the Landmark Hotel, the Minister of State at the Department of Agriculture, Brendan Smith, said that while organic production currently took up less than 1 per cent of our agricultural land, there were encouraging signs of growth.

The organic bodies were reporting growing interest among farmers looking for new enterprises.

The Minister said the Rural Environment Protection Scheme (Reps) had been a major vehicle in helping farmers convert to the organic system and, since 1994, it had delivered some €37 million to the sector.

Under Reps 3, it was possible for an organic farmer to qualify for an annual payment of €18,500 a year during the conversion period and €13,500 a year once he or she had full organic status.

Mr Smith said that in the new Rural Development Programme, which will run from 2007 to 2013, there would be a major change in the way organic farmers are supported. From next year, organic farmers need not be in the Reps scheme to qualify for payments.

"This is designed to encourage small-scale horticultural producers to convert to organic production and conventional tillage producers to convert part or even all of their holdings," he said.