The organic sector went through an eventful year in 2023. Sales were only moderate, while costs actually rose. According to various voices from the sector, there should be more focus on awareness on the consumer side. In the meantime, people are warning that growth should not be too fast, because that will be at the expense of the revenue model for farmers.
"A turbulent year, with good things and really less good things." This is how Michaël Wilde, director of chain organization Bionext, started his speech at the opening of the Biobeurs in Den Bosch last week. "It was a tough year with high and increased costs, while sales were not going so well. Fortunately, sales are now looking a lot better and things are moving in the right direction," was his conclusion last year.
Organic market does not push but pull
Last week the latest acreage figures for organic agriculture were announced. This amounted to 80.900 hectares. That is an increase of 8,7% compared to 2022 according to Statistics Netherlands. 4,5% of the total area is now organic. According to Minister Piet Adema of LNV, who opened the Biobeurs together with Wilde, these are good figures, but the growth of organic agriculture is too slow, referring to the target of a 15% organic share in agriculture in 2023. "If you look carefully looks at what is needed per year to achieve this, then much more needs to be done to realize this ambition."
According to Adema, more emphasis should be placed on the price development of organic products and more awareness should be created among consumers about organic products. In any case, demand must increase. This pulls the market instead of pushing it. "Supermarkets must also play a greater role in this, by properly stocking the shelves with organic products. If this market attracts, the revenue model will also improve for farmers," says Adema.
Balance
Expanding the organic supply also means that demand must increase on the consumer side. And that is precisely where the problem seems to lie, because demand remains limited to a certain extent. Roy Meijer, chairman of the National Agricultural Youth Contact (NAJK), outlines this problem. "What we saw was that the LNV thought too easily about the growth of organic. They thought if as many people as possible become organic, then we will make progress. Without thinking about the market and the right supply and demand balance." Meijer is concerned about this, that politicians are trying too hard with the policy and there is no market for it, which actually undermines the revenue model. "We must keep a close eye on what an organic farmer has to earn to make a living, that this remains possible and that no overproduction arises due to the growth of organic." Meijer thus indicates a balanced growth in the supply of organic products and demand in the market.
Figures from research by GfK, presented during the Biobeurs, show that sales of organic products are increasing somewhat. For example, the turnover of organic products increased by 42% in two years compared to 2021. The turnover is not a result of inflation, as the organic range increased by an average of 9,5% due to inflation. Products from the fresh range in particular are being purchased more often. According to Bionext, this increase in turnover is explained by the choice of supermarkets to offer organic products more and more prominently. The total organic turnover share is 3,8%.
GM-free sector
According to Wilde, good figures have been presented, but there are also threats surrounding the organic sector, such as developments in genetic engineering. "Can our sector remain GM-free? We are concerned about that. We are also pleased that the government is more committed to organic, but on the other hand, we also experience a lot of inconvenience from new legislation and regulations, including lease and manure policy". However, Wilde states that there are also many positives, including additional subsidies to develop the organic market. "A major consumer campaign is coming to promote organic. Financial resources are also available for this. The provinces are also making progress in getting started with organic and supermarkets are making good progress in sales to organic." The collapse of the agricultural agreement was not only negative. According to him, the organic sector has made its mark as a future-proof sector.
Minister Adema also called on the sector to make a good, positive contribution to the new agricultural agreement. "And not from the idea that we are only 4,5% of the total, but with the solutions that you have to offer for Dutch agriculture when it comes to producing healthy food and what you need for that. I am really not saying that every farmer must become organic, but organic agriculture is one of the important pillars for sustainable and future-proof agriculture. Investments must continue in this."