Archived press release

Inquiry demanded into organic prices

21 June 2000

Friends of the Earth (FOE) today publishes a major survey of prices for organic food across Britain,which reveals wildly varying prices and evidence of possible over-charging. FOE has written to the Competition Commission urging them to investigate supermarket pricing of organic foods as part of their Inquiry into the behaviour of the retail giants. The news follows the announcement last week from supermarket chain Iceland that it would be selling an expanded range of organic food at no extra cost. The Co-op and Asda have also promised to offer lower priced organic food [1].

But FOE's survey of over 90 supermarkets shows that a big shift will be needed from the major supermarkets if they are to follow Iceland's lead. The price of a pint of organic milk, for example, can cost up to 18 pence more than a non-organic pint, depending on where you shop. The usual price of a non-organic pint of milk is 26p. Organic milk in Iceland costs 35p, but in Tesco and Sainsbury's it is 41p and in Marks & Spencer it is 45p. Prices vary between different branches of the same supermarket: FOE found organic milk in Safeway for 39p and 44p in different locations. .

Organic food does cost more to produce and organic farmers should get a fair price. Food produced with chemical pesticides comes with hidden costs - for example consumers pay through their water bills for the cost of cleaning up the chemicals used by intensive farmers[2]. But FOE found that in some cases supermarkets are charging the consumer double or even triple the price that the producer gets at the farm gate for organic produce. For example,milk producers get about 16p a pint for their organic milk compared to the average supermarket price of 41p.

Consumers increasingly want to buy food they can trust and this is reflected in the demand for organic food which is growing at 40% a year. Friends of the Earth believes everyone should have access to organic food.

The commitment made by Iceland last week shows that retailers could choose to cut the price of organic foods. But the Government should be taking action too. Friends of the Earth,along with over 50 other organisations, including supermarkets, is supporting the Organic

Food and Farming Targets Bill. The Bill, which is due for its second reading in July, will require action to ensure that organic food is accessible to all sectors of society and better Government support for organic production to expand in the UK [3].

Sandra Bell, Food Campaigner at Friends of the Earth said “Iceland has shown it is possible to sell Real Food at an affordable price. Our survey shows that other supermarkets have got a long way to go to follow their lead. Of course organic farmers must be paid a fair price for producing Real Food. But, frankly,our results suggest that many consumers are being ripped off by the supermarket giants”

Action is also needed from the Government. More support to expand organic farming in the UK is urgently needed to help our farmers benefit from the organic boom - and to bring prices down for the consumer.”

NOTES

[1] The Co-op said that it will soon launch organic alternatives across a wide range of product sectors, including staples such as bread and fresh vegetables, at the same price as standard superstore lines. Asda, said they pledged their own label range of organic products to be 5% to 10% better value than the lowest priced competitor. (PA, June 14th).

[2] Each year it costs water companies over £100m to clean up pesticides from our water - this cost is passed on in water bills.

[3] The Organic Food and Farming Targets Bill, which is sponsored by Paul Tyler MP would set a target for 30%of land in England and Wales to be in organic production by 2010. It contains clauses which - if it becames law -would require Government action to ensure that organic food is more affordable.

Examples from FOE's Organic Pricing Survey:

Pint of Milk - usual price May 2000

1kg Carrots - usual price May 2000

Half a dozen medium sized eggs - usual price May 2000

Loaf of bread (400g) - usual price May 2000

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust