Market Opportunities for the Welsh Organic Horticulture Sector

1

• Market Opportunities for the Welsh Organic
  Horticulture Sector

2
Outline

• Latest UK market figures
• OCW horticulture market report
• Opportunities in Wales
• Other developments
• Localfoodshop

3
SA Market Report 2007

• Overall sales pushing 2 billion
• Market increase 22 2005 to 2006
• Box scheme/mail order sales up 53
• Non producer schemes higher share
• Mintel research more than half of those surveyed
  had bought organic fruit and vegetables in last
  12 months

4
SA Market Report 2007

• UK organic sales to reach 3bn by 2012
• Rate of growth could dip because of shortages in
  UK organic supply
• In Wales total organic land increased by 10 in
  2006
• Organically managed horticultural land increased
  by 48 (based on Defra stats)

5
OCW Organic Horticulture Market Review

• Carried out in Spring 2007
• Funded through Agri-Food Development Fund
• Collaboration between ORC, HDRA ADAS
• Defra statistics reviewed
• Grower telephone survey carried out
• Traders and wholesalers interviewed

6
Land area Market

• In reality land devoted to organic horticulture
  in Wales is decreasing
• There is a significant discrepancy between Defra
  figures and the reality on the ground so to speak
• Many fodder crops included in horticulture
• Best current estimate is in the order of 300ha
  max.
• Market for organic fruit and vegetables is
  buoyant

7
Grower responses

• 55 response using OCW data (time frame too short
  to get CB data)
• Horticultural land area 82.7 hectares
• Mainly local outlets, box schemes w/sale
• Labour finance main constraints
• A proportion were confident about the future and
  several were intending to expand
• Proportion had stopped growing age, size, labour

8
Trader responses

• Not many significant traders but they are doing
  very well
• Huge increase in demand up by 50 in last 4
  months
• Lack of production/supply cited as main
  constraint
• A number of priorities for the future cited

9
Key Conclusions

• SWOT analysis showed some problem identified in
  1998 still not addressed
• Some strengths have been lost
• Major imbalance in Wales and is widening
• Wales is now net importer where it used to be a
  net exporter
• Public procurement initiatives struggling with
  lack of supply

10
Specific opportunities 1

• Organics to Go demand is outstripping supply
  and new growers are urgently needed
• Other traders in similar position importing
  produce from Holland that could be grown in Wales
• Fenmarc producing conventional vegetables in
  Wales for Asda will be looking for organic
  produce

11
Specific opportunities 2

• Really Welsh have been selling organic shitake
  mushrooms for 9 months
• Now working with Patrick Holden to pack and
  distribute organic carrots in Wales
• Public procurement RAFAEL and FACE always on
  the lookout for producers to get involved with a
  range of initiatives

12
Other developments

• Organic Growers Alliance for organic growers
  across the UK oga_at_gwnhome.demon.co.uk (general)
  ogamembership_at_gwnhome.demon.co.uk
• Apprenticeship scheme SA/OGA/OAS
• OCW events subject to Farming Connect funding
  these will continue with Horticultural
  Opportunities in near future

13
Other developments

• Horticultural Network Wales training modules will
  be available online and will include organic
  principles, rotations crop planning, weed/pest/
  disease control, etc.
• Triodos sponsored organic horticulture guide
• Organic Farming Scheme significant payment for
  first hectare and higher rates of maintenance for
  horticultural production

14
Conclusions

• Market conditions are extremely good and are
  likely to stay that way for the foreseeable
  future
• Wales has great potential for horticultural
  production although there will always be
  infrastructure issues
• This potential is not being realised
• The support for the sector is as good as it has
  ever been
• The traders are ready and waiting
• OCIS continues to be available to prospective
  organic growers

15
(No Transcript)
16
Localfoodshop e-commerce for local food
producers
led by f3 - a not for profit CIC

• Localfoodshop
• a low cost e-commerce facility for producers
  and food hubs
• many producers on one site
• customer searches by postcode, to identify
  their nearest sellers
• customer makes one transaction
• traffic drives through multiple partner sites
• market exposure to hundreds of thousands of
  likely customers

Developed in association with Bigbarn
Funded by Welsh Assembly Government
f3 making local and sustainable food happen
17
Localfoodshop e-commerce for local food
producers
multiple customer entry points
orders from multiple producers consolidated
through use of single national carrier, ie one
delivery to customer
Localfood shop database and trading platform
orders made
one transaction
partner paid
orders sent to producers
producer or hub delivers
producer paid
f3 making local and sustainable food happen
18
design concept customers homepage
partner branding
customer postcode required
the list of nearest producers can be refined by
product type, organic etc
search results show list of nearest producers or
hubs, then click to the producers page (see next
slide)
19
design concept producers page
profile and link to more information and images
products listed, with price easily updated by
the producer
selected items go to basket
20
Localfoodshop e-commerce for local food
producers

• What can you do?

• Organisations
• become a site partner
• introduce producers
• help with marketing to local consumers

• Producers
• become a seller on the site
• make use of unparalleled market exposure
• get a profit share
• great courier deal

More information from f3 on 0845 458 0060 or
Bigbarn on 01234 871005
f3 making local and sustainable food happen