The tide is turning for some in terms of financial worries, with the start of a recovery in premium organic red meat and dairy sectors now being seen.
According to research agency Two Ears One Mouth, 71% of consumers are currently concerned about the cost of living (COL) crisis – a figure which is down 15 percentage points against this time last year (August 2023).
Figures from AHDB show there was a positive shift of nearly 4% volumes for organic cow’s milk in retail for a short 12-week period ending 18 May 2024. Since then, demand has increased further with a 5% rise recorded in the 12 weeks up to July 13, while non-organic milk has declined, indicating that the organic recovery is continuing.
Organic milk sales are however still a small proportion of overall category volumes (3%) and, longer term, the picture is still down year-on-year.
Other areas of organic dairy which are showing signs of recovery are yogurts and butters, spreads and margarine (BSM). The yoghurt category has the highest proportion of organic product sales at 8% in volume terms, falling to 1% or less for BSM, cheese and cream. Positively for the category, yogurt has gone back into volume growth of 2.0% in the last 12 weeks, without seeing retail prices drop like the non-organic yogurt category.
The tide also seems to have turned for organic BSM, being in double-digit growth in the last 12 weeks. This will have been helped by price reductions of 11.5%, narrowing the price differential to non-organic and enticing consumers to trade up.
Sales of organic cheese remain stable in terms of volumes year-on-year, rising 2.9% in the 12 weeks to July 13, against a 4.6% rise for non-organic.
Organic cream is however struggling, seeing volumes down -7.0% in the last 12 weeks.
According to a report from AHDB, such figures are good news for organic farmers after a few turbulent years. The insights show that narrowing the price differential of some meat and dairy cuts and products compared with non-organic, such as beef roasting and BSM, encourages some consumers to take the leap to the more premium product – a strategy that can help the category in the short term.
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