Industry Fails to Explain Organics to Public

By Sixsmith, Rachel

The fresh produce industry is failing to help consumers make an informed choice between organic and non-organic produce. It is also failing to invest in the market opportunities that exist in both the organic and nonorganic markets because of its lack of understanding of what consumers want.

These were the findings of a sixmonth study on organic fruit and vegetables, published this week by the dunnhumby Academy of Consumer Research at Kent Business School, Canterbury.

Sales of organic fruit grew by 18 per cent during the 52 weeks ending 22 January 2008 – compared with a modest two per cent for conventional fruit. Over the same period, organic vegetable sales grew 11 per cent, compared with seven per cent for conventionals.

The survey examined the shopping habits of some 450 people of varying ages and socio-economic groups – and interviewed 189 people from the fresh produce industry – to find out why people do or do not buy organic produce.

It also examined how in tune growers and packers are with what is happening “where it matters most” – at the point of purchase in the supermarket.

Professor Andrew Fearne, who revealed the results of the survey at last week’s Re:fresh conference in London, said consumers are confused about the benefits of, and differences between, organic and non-organic produce – including the products’ health, taste, and shelf-life benefits and their environmental impact.

He said: “What emerged from the focus groups, quite clearly, is the extent to which consumers remain confused. There is little leadership in taking the message about organics forward, providing clarity in order that more consumers can make informed decisions, rather than taking blind decisions out of a sense of guilt or duty.”

He added: “We have to have more evidence-based arguments we don’t have enough of it in the fresh produce industry.”

He said that the greater clarity that is given to the “segmentation, targeting and positioning” of organic produce in supermarkets is hampered by the lack of consistent, objective (scientific) evidence of the benefits, which leaves “the majority of consumers at best confused and at worst sceptical “.

Those who buy organic produce do so because they believe it is “better, safer and fresher” – but they have little understanding as to why. But Fearne said that, despite this confusion, consumer demand for organics remains buoyant.

However, the report concluded that the majority of growers are reluctant to invest in organics because of the extra costs and risks associated with it.

“Consumer demand and growth expectations remain buoyant, yet there remains a lack of confidence upstream to invest in conversion when the likelihood is that the current price premium will be eroded.”

Fearne added that, unless the produce industry addresses consumers’ wants and needs, growers of both conventional and organic produce run the risk of being dominated by how supermarkets choose to market their produce.

He said: “The produce industry’s failure to invest in understanding what [consumers] want, what they do and why, will inevitably result in their destiny lying in the hands of others or contractural relationships that have little to do with exceeding consumer expectations, increasing penetration, purchase frequency and repeat purchase rates among those under-performing segments.”

Fresh produce: consumers do not understand differences between organic and non-organic foods

Copyright Haymarket Business Publications Ltd. May 15, 2008

(c) 2008 Horticulture Week. Provided by ProQuest Information and Learning. All rights Reserved.