Friday, March 29, 2024

Organic story needs more tale

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Despite the organic sector’s rapid growth kiwifruit growers might need to do even more to maintain the advantages they have in the marketplace, food marketing expert Professor David Hughes warns.
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Hughes, from Imperial College, London, gave growers his take on developments in the booming organic sector that is now topping US$80 billion a year in global sales.

He spoke at Zespri’s inaugural organic dinner, hosted by the marketer to showcase organic produce and give the industry’s small pool of 80 organic growers insight to global developments.

Supply for almost all organic produce around the world was not meeting demand, he said.

It was also a sector now under greater scrutiny and investment by big food companies that had recognised the growth opportunities.

“Big food is being seen as bad food so they are racing to buy up smaller brands that are often organic.

“The result is you have seen a company like Whole Foods in the United States drop its share value as ‘wholeness has gone mass’.

“Even Walmart has an organic range of food.”

The entry of big European supermarket chains like Aldi into the organic space had also put greater pressure on margins and made the need for extra narrative to support the organic proposition even more important to maintain that margin.

But taste differences were arguably indiscernible between conventional and organic produce so the challenge was on producers to develop extra selling features in organic fruit.

He pointed to companies marketing vegetables cut to be vege pasta shapes, 5-plus a day punnets of ready portioned veges and even “frushi” over traditional sushi.

The shift in how people consumed their fruit and veges was also presenting challenging and exciting options for the produce sector.

“The emergence of home-made smoothies is a brilliant one for kiwifruit and has driven sales in both fresh and frozen markets, particularly to female consumers keen to get their 5-plus a day.

“While it is very difficult to take a negative view when supply is struggling to keep up with demand, the clear green water between organics and conventional is narrowing.”

Stricter pesticide and fertiliser use on conventional crops, including Zespri’s own GAP programme would make it harder for consumers to continue justifying paying the organic premium.

“The margin is in the adjectives you use, not in the noun.”

Professor David Hughes

Imperial College

“You need even more effort to deliver the organic experience and not just the organic version of the conventional fruit.”

One of the biggest advantages for Zespri organic growers, other than the brand’s reputation for quality, was that there were only 80 organic orchardists to work with to develop extra aspects to the fruit’s appeal.

He repeated the common refrain of “telling a story” of the organic fruit.

“The margin is in the adjectives you use, not in the noun.”

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