Putting a Squeeze on pricing raises fears for organics integrity Last year saw a major battle over organic prices in the supermarkets which were criticised for damaging the organics industry and potentially putting growers off converting to organics. Iceland was the first to make a move, when it announced that all its frozen own-label fruit and vegetables would convert to organic by the autumn, and would be sold at the same price as conventionally grown produce. The move, a great piece of PR for Iceland, was greeted with concern largely because 80% of the frozen veg would be sourced abroad ­ the company had to secure over 40% of the world's organic green vegetable production. Observers warned of the dangers of a price war on organic food, whereby the loser would be the producer which could make organic farming as uneconomic as conventional farming. Criticism spiralled when Asda announced it was slashing the price of its organic meat by an average of 8% and pledged its commitment to making organic products affordable to ordinary people and "offering the best value organics range in the market". Sainsbury's Robert Duxbury says one of his biggest concerns about the future for organic foods is the downward spiralling of pricing structures. "If our competition continue to pressurise the organic food supply chain on price and represent organic food to customers as being no more expensive than conventional, what effect does that have on farmers? Does that bring about a pressure that makes him take short-cuts that could jeopardise the integrity of the product?" he asks. The Soil Association also insists that organic food should be sold at its true cost. The real cost of conventional agriculture, such as cleaning up the mess created by pesticides, contamination in water and dealing with scares like BSE, are not accounted for when you look at the cost of food, says spokesman Mike Collins. Research has shown that while some shoppers say it's the price that puts them off buying organic, those who do understand why there is a price differential and are prepared to pay it. "The organic industry is succeeding in communicating to consumers that they may, in effect, pay an even higher price for cheap food in terms of health and the environment," says a recent Mintel report. There is still a woeful shortage of organically farmed land in the UK ­ currently about 1.7 % of agricultural land is organically farmed. Around 70% of organic food is imported and as demand grows, this percentage looks set to rise. Major retailers are working hard at encouraging growers to make the switch by creating trading partnerships, supporting them through the conversion period and buying on a local level in some cases. This year the government has pledged the organic movement an additional £13m to help growers who want to change from conventional systems to organic. The money, available from April 1, is available through the Organic Farming Scheme for the five years during and after the conversion. But will the money go far enough? No, says the Soil Association. "We've been working with government and have a good dialogue with them, but £270m is the sort of figure we want," says a spokeswoman. {{COVER FEATURE }}