September 7, 2007

High grain prices affect British organic food

Prices of organic food in the United Kingdom are set to increase due to record high cereal prices.

According to the UK Soil Association, the main organic certification farming body, organic pig and poultry farmers are also struggling to feed their livestock due to high grain prices. Farmers are also fearful that supermarkets will be reluctant to pass on the increase to consumers.

Organic sales saw a 22 percent increase last year but organic producers say it is doubtful that the figures will be surpassed or even sustained.

Helen Browning, the Association's director of food and farming admits that organic food prices are going to increase, particularly on pork and poultry sectors as these are dependent on cereal-based feeds. She added the rise in grain prices was due to low harvests in most regions, bad weather in Europe and growing demand from East Asia.

The price of organic oats reached up to GBP268 (397 euros/US$541) per tonne last week and feed wheat GBP240 (356 euros/US$485), compared with GBBP215 (319 euros/US$434) earlier this summer. Conventional wheat has gone up even more, from GBP90 (13 euros/US$181) to GBP145 (215 euros/US$292).