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.
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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