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| For a couple of years now shoppers have been | | | | consumers suffering under the credit crunch were |
| faced with an uncomfortable choice between | | | | also eating 20% more canned food and drink than |
| healthy, natural foods and their cost while various | | | | in 2007. Figures from Mintel highlighted a sales rise, |
| global forces have buffeted food prices. | | | | with canned food worth £718m in the UK, with |
| So how have food shopping habits changed over | | | | a predicted rise to £792m by 2012. |
| this period? What has been the impact on the | | | | Shoppers in the US and UK were also buying |
| growing trend for natural, healthier foods and can | | | | cheaper custs of meat with 40% of them saying |
| anything be done to make food prices less | | | | they had changed the way they bought meat and |
| volatile? | | | | poultry compared with before the recession. |
| Oil price rises in early 2008 had a major impact on | | | | So where are we now? |
| food prices - both because of the increased costs | | | | Although the recession is said to be officially over |
| to farmers of producing them, plus increased | | | | in most places people who have lost their jobs or |
| costs of packaging materials and of transporting | | | | gone onto part time working are still feeling the |
| to the shops. | | | | after-effects. |
| Alarm signals began to sound about food security | | | | In the year to March 2010, UK food prices rose |
| and food scarcity in some parts of the world with | | | | 1.2 per cent year-on-year, according to the British |
| large populations already living in extreme poverty | | | | Retail Consortium's price index. |
| and less able to absorb rising costs. | | | | One factor that put upward pressure on prices |
| It was noticed in the more prosperous parts of | | | | was the return of VAT to 17.5 per cent on 1 |
| the world, like the USA, that shoppers were | | | | January 2010. But also commodity price changes |
| becoming more aggressive in buying products on | | | | put upward pressure on food retail prices as fuel |
| special offer. | | | | prices and packaging material costs increased. |
| Particularly in staple commodities like milk, bread, | | | | In December 2009 The Food Channel predicted |
| meats, coffee and cheese where there is less of | | | | that a top food trend for 2010 would be for |
| a perceived difference between branded and | | | | consumers to focus on buying pure, simple, clean |
| private label quality they were also beginning to | | | | and sustainable basic ingredients and shift from |
| trade down to private label and value brand. | | | | convenience foods to scratch cooking |
| Then, in the autumn of 2008 came the credit | | | | Despite the rise in food prices there are signs that |
| crunch and by June 2009 the BBC was reporting | | | | people are buying organic again. This year organic |
| that in the UK "one of the first things we've tried | | | | sales are expected to creep back up by 2-5%, |
| to cut back on is our spending on food". | | | | according to the Soil Association's Organic Market |
| Over the previous year food prices had risen by | | | | Report 2010. |
| 8% and people had cut back on eating out in | | | | The squeeze on farmers to produce more at |
| favour of staying in and cooking from scratch. | | | | lower costs continues, meanwhile, and the EU has |
| Reportedly local independent shops were receiving | | | | approved a £20million farming crisis fund to |
| £50million less in sales and organic food | | | | give limited amounts of aid of up to 15,000 |
| sales were down 11% year on year. | | | | (£13,214) to UK farmers affected by the |
| While it was clear that organic and locally-produced | | | | economic crisis until 31 December 2010. |
| foods - perceived traditionally to be more | | | | So the pressure is still on to find more sustainable |
| expensive - might be a loser the picture has | | | | ways of farming to satisfy both consumer |
| turned out to be mixed. | | | | demand for healthy, natural, chemical - free food |
| For the year 2009 consultancy and research firm | | | | and the farmers' need to increase production in a |
| Organic Monitor estimated overall growth on | | | | sustainable way that preserves the quality of their |
| organics in Europe was between 2 and 6 per | | | | land allows them to earn a reasonable living. |
| cent, a drop from the double-digit growth rates of | | | | The CEO of the main US-based company |
| previous years but still unusually strong for a | | | | researching and developing low-chem agricultural |
| premium priced category. | | | | products has agreed on record that organic is |
| Within Europe there were significant differences | | | | currently a "middle class" option and he believes |
| between countries. According to the recession's | | | | natural, healthy foods should be available |
| severity growth rates varied with organic sales | | | | affordably to everyone. |
| worst hit in the UK and Spain - countries which | | | | One way to achieve all this may lie in the new |
| were both badly affected by the recession, so | | | | generations of biopesticides, biofungicides and yield |
| consumers traded down to ordinary products and | | | | enhancers that companies like his are increasingly |
| switched to cheaper retailers where organics have | | | | developing to replace the older and more |
| a weaker presence. | | | | damaging chemical agricultural products being |
| In Nov 2009, according to data compiled by the | | | | taken off the market. |