Positive Mood in the Nordic Organic Scene

After five years of stagnation, Denmark’s organic industry is growing again. The statistics show that in 2005 the sales of organics in Denmark increased by 12 %. In Sweden, the government’s aim is to raise the level of organic produce in both public sector catering and in agriculture to 20 % by 2015.

Picture: Open House 2006 on Danish Organic Farms

“The mood in the industry has changed. There is now more focus on ecology than for years” reports Paul Holmbek with great pleasure. He is the Director of the Danish Industry Organisation Okologisk Landsforening. He believes the market could double by 2013.

On the other hand, in the case of the large retail chains that account for around 80 % of organic turnover, growth was moderate. Coop Denmark reports 6 % and the Dagrofa Concern, to which the chains Spar, Iso and Dreisler belong, registered 5 % growth last year. Out in front in the retail food trade was once again the Coop chain Irma, whose organic share of turnover rose from 11.5 % to 13.5 %. According to Katrine Milman, who is responsible for environmental issues at Coop, this year has begun well too, with 13% growth in organics in the first quarter of 2006. In the specialist trade, the organic chain Gaardbutikken A/S (picture) that is run by farmers, opened its fourth store in the middle of May. After Arhus, Holstebro and Viborg, it was now the turn of Kolding.

With the announcement of its intention to make the country independent of oil by 2020, the Swedish government has proved its courage in setting ambitious targets. At the end of March, it stated that the proportion of organic land is to rise from the present 7 % to as much as 20 % by 2015. For the most part, this could be achieved by financial support for certification, because, as Agriculture Minister Ann-Christin Nykvist has pointed out, only 35 % of all Swedish organic products are currently certificated as organic. Interest in certification among farmers has grown considerably, as shown by the agricultural barometer of the Farmers’ Association and the savings banks. Farmers producing beef, eggs and poultry are particularly interested.

Sweden will soon have a prominent organic farmer - just as in Great Britain. In an interview on the occasion of his 60th birthday, King Carl Gustav recounted how he wanted to fulfil the youthful dream of having a farm and researching animal husbandry along with the Agricultural University.

Similarly, the amount of organic produce in kitchens and canteens in the public sector is to rise to 20 % by 2015. At present, the proportion still varies greatly. Whereas in some areas 15-20 % of food in schools, old people’s homes, hospitals, etc., is already produced by organic farming, the average is a mere 2.5 %. Agriculture Minister Nykvist has also announced that Sweden will not support the planned amendment to the EU organic regulation in its current version.

The biggest Nordic dairy concern Arla has reported an increase of 5 % in the sale of organic milk. In the meantime, organic milk products account for 8 % of Aria’s turnover in the country as a whole, and for as much as 18 % of turnover in the region of the capital.

The alcohol monopolist Systembolaget almost trebled its sale of organic red wine in 2005. In the case of organic white wine, turnover rose by 20 %. The news service Ecoweb reports that, as a consequence, Systembolaget intends to introduce new products in order to raise the share of organic drinks from 0.5 % to 1 % of total turnover (approximately 4 billion euros).

Without increasing its range, the biggest retail chain ICA increased its sales of organics by 12 % to around 71 million euros. The most important meat producer, Swedish Meats, increased its sales of organic beef and pork by 10 % and 7 % respectively.
The sales of organic baby food rose by 40 %, and it is assumed they will continue to grow, since currently only 15 % of products are organic. 10 % more organic coffee was drunk in 2005.
The success of organic farmers’ markets in 14 towns has resulted in people in, for example, Göteborg and Växjö thinking about opening a store along the lines of Bondens Butik in Stockholm.

Strong demand from the USA for grain is creating a positive mood among Swedish exporters. People are watching the German organic market with great interest. According to Ecoweb, last year the bakery concern Fazer exported eight million packs of organic rye bread rolls, with a value of 4.3 million Euros, on behalf of Aldi and other German retailers, and has now received several enquiries from other chains. “But we are being forced to limit exports so that we can meet the demands of the Swedish market”, complains quality and environment manager Kerstin Andersson. In the case of the state export trade organisation Exportradet, an export office is already under consideration to provide improved support for the export activities of small and medium-sized organic producers.

In Norway, Coop’s organic sales grew by 30 %, and in the case of its competitor Norgesgruppen sales grew by as much as 40 %. Taken together, these two conventional retail chains sell around 80 % of all organic food in Norway. According to the organic organisation Oikos, demand for organic products has grown constantly, but the conversion of agriculture is not following at the same rate. This is why organic farmers are asking the State to provide more support during the conversion phase, if it wants to achieve the target it set last autumn of 15 % organic in production and consumption by 2015.

A.C.Nielson reports that in Finland the sales of organic vegetables have increased slightly after a few years of stagnation. The industry organisation Finfood Luomu regards this as a sign that the domestic market is recovering. According to a conference held recently in Helsinki on the study “Baltic Ecological Recycling, Agriculture and Society“, extending organic farming round the Baltic would be highly desirable: two thirds of the nitrogen and phosphorus that pollute the Baltic come from Finland, Sweden and Poland. Organic farming methods could halve nitrogen released into the environment and stop the release of phosphorus completely, according to Professor Artur Granstedt from the Swedish Agricultural University.