Organic meat demand outweighs supply
Demand for organic meat products is far outweighing supply, and the
trend is likely to continue, according to Organic
In North America, supply has been unable to meet demand
since the USDA implemented the National Organic Program (NOP) in 2002. Organic
meat products have been imported into the US from Latin America, Australasia and
Canada since then.
Western Europe is also experiencing acute supply
shortages. Organic meat supply has not kept pace with demand with a number of
countries reporting undersupply this year. Danish Crown, the largest producer of
organic pork, has reported a 36% price rise compared to last
Facing high demand, British retailers have started offering
fixed contracts to organic meat producers to secure supply. Sainsbury's and
Tesco are giving meat producers contracts that guarantee fixed prices over 5
years. Although the initiatives are gaining acceptance by organic farmers,
imports will continue to play an important role because of low domestic
production levels. Like the US, organic meats are imported from a number of
countries into the UK.
Organic meat supply is also tightening in
regions like Latin America and Oceania. Countries like Brazil and Australia have
export-geared meat industries with organic meats playing an increasingly
important role. High global demand is leading new organic meat producers to
spring up in countries like Chile and Nicaragua.
With demand for
organic foods continuing to strengthen across the globe, organic meat supply
shortages are expected to continue in the foreseeable future. Production will
continue to lag demand in most countries because of the conversion period for
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