SA Call for Organic Price Premium in Supermarkets

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Wednesday, 12 November 2003

Supermarkets are damaging the organic sector with their "pile 'em high and sell 'em cheap" approach according to director of the Soil Association, Patrick Holden. Holden called for multiples to maintain a price premium on organic food to cover the cost of production, saying that supermarket suppliers were suffering because of downward pressure on prices and heavy promotional activity. He said: "All the suppliers tell me they have higher sales during the promotion, but no long-term net gain." Many farmers and growers are selling below cost to supermarkets, he said. Meanwhile, consumers committed to organic produce were increasingly favouring alternative channels as they were suspicious of the supermarkets' pricing policies, said Holden.

Source: www.soilassociation.org