Vion Food Group is considering pulling out of the organic chicken market following a review of its organic supply base.
Organic poultry accounts for about 1.5% of the total poultry market and market conditions were “very challenging” at present, said a spokesman for the company. “It’s not a foregone conclusion that we will come out of organic, but we are considering all options and have started talking to our suppliers,” he added.
Richard Griffiths, senior executive officer at the British Poultry Council, agreed trading conditions for organic poultry suppliers were tough at the moment. “Since the beginning of the economic downturn, organic poultry has seen a steady decline from its peak at over 4% in 2009, and it is still dropping,” he said. “While the ethical aspirations of consumers haven’t changed, there are more -affordable options in that marketplace, with free-range and higher welfare lines emerging as strong challengers to organic.”
The company is said to be investigating a number of options and plans to make a decision by the end of the year.
Vion Food Group