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ORGANIC FOOD IS TAKING OVER THE MARKET
One latest characteristics of the British market is undeniable: the evermore evident increase in the number of organic products. This represents a major problem from the vendorís point of view, since they will find it difficult to keep their sale figures at the normal rate. The conventional products make up the basics of food industry so this would mean that the most of its offer will become unwanted, leading to a serious financial problem.
As in every case in a consumerís society itís up to the suppliers to adapt to the demanding of the clients. This will lead to a change in policy and it will trigger the import of organic foodstuffs in order to present fresh merchandise to the costumers all the time. Only through offering the amount of this category of food may the providers hope to gain as much as they have so far. It is beyond doubt that we are witnessing a time of significant changes within the food market. It is expected for new standards to be introduced. This way the current requirements will become obsolete, and these present-day necessities are encountered in most products, which will be useless from now on.
Already the new tendencies have given birth to new hierarchies. Nowadays, the agency which is expected to have the greatest success is Netto, with a market share of 16.6 per cent. Even so the current demanding is higher, so it has set to collaborate with a Swedish producer to cover the buyerís needs. Claus Juel Jensen, the managing director of Netto said this supermarket chain agency will not decrease its production, but providing a variety of organic products is an upcoming challenge.
This new fever all around organic products, including products such as , it is not a result of the market game. The consumerís sudden taste for organic food has been awaken by some claims that this type of aliment is healthier and has a richer nutritional value. The first statement has not been agreed upon by all the researches. People have trusted these alleged discoveries and have emptied the nutritional food shelves rapidly. And as the consumers become addicted to something particular the market has to offer, the business runners in the food area must follow them.
The greatest problem now is the offer of organic meat. Thatís the one chapter where Netto fears it might not keep up with the task. Itís again not about the necessary quantity, itís the diversity they need to satisfy all tastes. The practices in the farming area, in Denmark for example take too long, in contrast with the dynamically evolving requests of the clients. A farmer must switch to the production of organic meat and then he has to wait for to years to get an organic producer licence. Still, the gains after this switch are higher, if not in the first year, than certainly in the second year of sellings.
In conclusion, itís not unprofitable for producers to engage on launching the new generation of products, the organic ones, itís just that the industry needs to adapt, for it has to undergo a massive change. A short term inspired measurement would be to increase the prices of the organic brand so the demand for these will undergo a temporary decline.
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