Organic is trendy, but more and more organic farmers are dropping out. The reasons are price increases and the fact that the authorities are setting a bad example.
Walking through Nuremberg, you might think that all is rosy in the world of organic food. Thousands of farmers, representatives of processing companies and various companies from all over the world crowd the stands at Biofach – the leading trade fair for organic food and production.
Customers are willing to dig deeper into their wallets
There are also 90 exhibitors from Austria – from teas and herbs from Sonnentor to chocolates and creams from Styx to protein powders from Schalkmühle, the range is diverse. Organic is trendy. And despite crises, customers are willing to dig deeper into their wallets.
Graphic: This is how organic Austria eats
Current figures from the AMA show that, despite optimism, there is a noticeable dent in the ideal biological world (see graph on the right). More and more farmers are turning away from organic production. The number of companies throughout Austria fell from 25,081 (2022) to 24,148 last year. Chairman of Bio-Austria Barbara Riegler knows why 933 farms want to do without the quality mark. The price increase is noticeable on farms in the form of higher costs.
This means that farmers are not paid enough to generate sufficient income. Although this also means a huge reduction of more than 10,000 hectares of organic agricultural land in 2023, this is hardly a concern, at least for those present in Nuremberg.
Organic thinking has become widespread
Because exactly 30 years after the AMA organic quality mark saw the light of day, organic has long been in the collective shopping cart. Austria ranks second globally with an organic share of 11.5 percent of the total market – beaten only by the Danes (12 percent). Per capita, Austrians spend 287 euros per year on organic food. In total, 2.8 percent less organic food was purchased than in 2022, but turnover increased by 5.3 percent (more than 50 percent since 2019).
“Authorities require you to look with a magnifying glass for organic products”
According to Riegler, the political signal to give biological impetus is lacking. Under the administration’s plan, 25% of all food in federal facilities would have to be organic by January 2023. The down-to-earth outcome of an inquiry: at Defense the share is 1.5 percent. “The authorities must look for organic food with a magnifying glass,” Riegler criticizes and, like the stand and customers at the fair, demands more. In terms of sales, most people noticed an increased demand for organic in 2023. Vegan is also still trendy.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
