Hechos probados y Análisis de la prueba actuada:

7.4.2

7.4.2

7.4.2

OrOrOrOrganic suppliers to the marganic suppliers to the marganic suppliers to the marketganic suppliers to the marketketket

A number of specialised organic companies (wholesalers and

manufacturers) in all sectors are committed to the growth of organic farming. Several of them have experienced substantial growth in the past few years, partly as a result of supplying the multiples. Up until now, however, few mainstream processing or wholesaling companies have been involved with organic produce. In the late 1990s co-operation between the specialised organic suppliers and the supermarkets developed, particularly in the dairy sector and in the fresh produce sector, indicated by a longer- term commitment from the multiples to particular prices and volumes of produce. One agreement is between Sainsburys and the organic dairy co- operative, OMSCo , but Sainsburys is also trying to co-ordinate

production with its suppliers in the horticulture sector and aims to develop a continuity of supply. Sainsburys has established direct contact with the sector through its source group, which represents primary points of supply for a range of products. The main aims are to steer production in a strategic way, to develop a work programme (as with other agriculture produce), to identify future needs, and to support the integrity of

production standards. Similarly, the SA has established a multiple retailers’ working group that aims to

“maintain the integrity of organic standards, support UK producers entering the markets, raise consumer awareness of the wider benefits of organic food and farming and raise the Government’s awareness of consumer demand” (SA 1999). Currently, the most significant producer co-op is in the dairy sector (Organic Milk Suppliers Co-op – OMSCo). Prior to its existence, the Milk Marketing Board – needing to represent all its members’ (both organic and non-organic milk suppliers) interests – was very slow to develop any organic processing capacity. In 1994, the regulations on the Milk Marketing Board were lifted and it allowed OMSCo to take the role as market leader. It appeared possible to separate or decouple the organic milk price from the general milk price by long-term delivery and price contracts. The decoupling of prices has contributed to changing non- organic farmers’ perception of the market for organic products and has given dairy farmers confidence in conversion. The other significant organic co-operative, the Organic Livestock Marketing Co-operative (OLMC), is trying to establish a similar concept for the livestock markets, but, according to a co-operative representative, this is hampered by fragmen- tation of the market and unfamiliarity in the sector of co-operative marketing. Other organic farmers’ co-operatives include small co-ops in

the fresh produce sector and a large national co-operative for organic producers in Scotland. Particularly in the fresh produce sector, but also in the meat sector, there have in the past been several examples of organic farmers’ co-operatives trading with multiples that went bankrupt and left their members with substantial financial losses. This has contributed to a general disillusionment on the part of farmers regarding trade with multiples.

7.5

7.5

7.5

7.5

Changes Changes Changes Changes within the institutional settingwithin the institutional settingwithin the institutional settingwithin the institutional setting

In the UK there is no organisation aiming at connecting activities across the three domains of the farming community, agriculture policy or the food market.

The only public organisation active in the field, UKROFS, includes representatives of all domains. It is aiming to set production standards for organically produced foods and has become the UK’s certifying authority. UKROFS is governed by a board composed of members with a wide range of interests in organically produced foods including producers, processors, distributors, consumers and enforcement authorities aiming that no one interest predominates (Preamble of UKROFS). The composition of the board establishes a potential for fulfilling functions of coordinating action across domains. However, coordination within organic farming is not one of UKROFS official objectives and the members do not attach the

UKROFS with an active role in the development of organic farming (s: organic farmers’ organisation representatives and agriculture

administrators).

All organic farming organisations have occasional links with other organic or general farming bodies (including the NFU) within the farming

community as well as in the other domains. However, these contacts have not developed into permanent bodies or organisations aiming at securing communication or coordination between the farming community, policy and market regarding organic farming.

Since 1998, some contacts between organisations of different domains have been established which aim at solving distinct problems and increase the backup for organic farming. One such body is the UK Multiple Retailers Organic Working Group, which originates in a joint initiative from the SA and multiple retailers Similarly, during 1999 several attempts were made to set up working groups to co-ordinate the response of the organic sector bodies to policy consultation. Examples are a joint group set up to discuss the implementation of the EU livestock regulation into UK organic standards and a policy group that submitted a co-ordinated response from the organic sector to the review of the organic aid scheme. However, it is too early to judge whether these initiatives will lead to any formal establishment of institutions across the various domains.

7.6

7.6

7.6

7.6

Summary and tentative concSummary and tentative concSummary and tentative concSummary and tentative conclusionslusionslusionslusions

Organic farming has a long history in the United Kingdom and developed among researchers within a framework of charities since the 1940s. This basis formed the background for the formation of new organic farming organisations during the 1970s and 1980s. However, in terms of the number of organic farms and their total area, the long tradition for British organic farming is not reflected in a large and prosperous organic sector. This is so despite some clearly positive attention towards the organic farming system from single powerful actors in both the policy (MAFF) and the market (Safeway and other supermarket chains) domains during the 1980s. This seems related to the fact that up until the end of the 1990s, organic farming remained isolated from general agriculture institutions. The separation of organic and general agricultural institutions is evident within the farming community from the traditionally hostile attitude of the general farmers’ organisations and the almost total separation in the provision of advice. It is equally evident within the agriculture policy domain, as organic farming is not treated as an integral part neither of general agriculture measures nor in the agri-environmental measures covered by the same EU regulation as the support of organic farming. The separation is also clear regarding the lack of an overall institutional setting to establish interrelationships across the three domains. Finally, regarding the market domain, organic farming products are mainly sold through the general food market channels, but here the separation is reflected in two facts. First, the main supplies are imported, and second, domestic suppliers of organic food to the multiples are (mainly minor) companies specialising in organic produce. Hence, it is clear that there are no direct links between organic and general farming institutions and that the interrelationship in the UK therefore appears a clear example of pure competition as defined in section 1.1.3.

The long-term, clear and well-defined identity of British organic farming has, on the one hand, contributed to the establishment of many

organisations and measures in support of organic farming relatively early on within a European context. On the other hand, these same features also seem to contribute to explaining the failure of attracting ordinary farmers and to establish a direct link to general agriculture policy that included – what seems a central measure to farmers – substantial direct financial support during the conversion period and beyond.

However, by the end of the 1990s the British organic sector began to gain a foothold within general agriculture institutions. Since then, farmers have begun to convert in larger numbers and market interest is growing rapidly. Several reasons for the dramatic change were suggested – some focusing on consumer demand others on farmers’ propensities to convert – i.e. the supply side. Consumers and market actors have shown an increasing interest in obtaining a “green profile” and have found organic food a means suitable to obtain it. This coincided with a change of government that paved the way for a more positive attitude towards organic farming,

leading to an increase in conversion payments. It further coincided with a growing interest among UK farmers for more profitable ways of farming. Here organic farming appeared a plausible option because organic farmers were able to obtain relatively stable and high prices in contrast to the major price decreases in the general food market.