Economic concerns are causing Americans to take a harder look at grocery purchases. “Across the board, Americans are spending less and ‘organic versus traditional’ is a decision many people are thinking about carefully,” says Marcia Mogelonsky, Mintel’s senior analyst points out.

The research firm cites two major cost-related challenges for organic food producers: rising food prices and private-label brands. Prices for food consumed in the home increased 7 percent this past year, according to Mintel’s report. “To cope with higher prices many shoppers are simply opting not to buy pricey organic or premium brands,” says Mogelonsky.

However, there are more private-label organics brands to choose from than ever before. Mintel tracked more than 540 private-label organic food introductions in 2007, that compares to 2003 when 35 new organic products hit the market.

“We don’t expect people to completely stop buying organics,” says Mogelonsky. “We anticipate more subtle changes, such as the formerly all-organic shopper who returns to traditional cookie brands while sticking with organic produce. These small changes will slow market growth.”

One example worth noting is that Whole Foods has watched fourth-quarter profits drop, dropping to $1.5 million in the quarter ended Sept. 28, compared to $33.9 million for the same time in 2007.

John Mackey, Whole Foods’ chief executive officer told market analysts, “The unrelenting negative economic news appears to be shifting buying behavior to making fewer trips and to making more value conscious decisions.”

Source: Mintel, Meatingplace, Porkmag

The city also found unsafe levels of melamine in China-made fish feed that were used at a local farm, after a similar scare over eggs.

All this has proven to be a boom for sales of organic food. Despite tightening budgets, when it comes to high-end grocery shopping, people in Hong Kong are still willing to dish out the extra cash.

One said: “I’m always willing to pay a little more for organic food because I think it’s better for the earth, not just for people.”

“I don’t want to take any chances,” another added.

Organic products are much pricier than regular produce because no artificial additives and less chemicals are used in their processing.

Hong Kong’s largest organic food store, Three Sixty, has seen a jump in sales.

Doreen Hong, Consumer Communications Manager, Three Sixty, said: “People are focusing more on the basic needs. How do they purchase for their family? What should they do?

“And instead of spending lots of money dining out extravagantly, they may be focused on buying good quality, wholesome, nutritious and delicious food.”

The store also saw a surge in demand for organic milk and eggs after the industrial chemical melamine was found in those products from the mainland.

For those worried about food contaminated by chemicals, it seems organic is the way to go. But the problem is, there is currently no across-the-board certification law in Hong Kong.

Organic labelling is done on a voluntary basis and stores rely on food certification from the country of origin for imported goods.

The Hong Kong Organic Resource Centre said having so many different labels is confusing for consumers and a lot of them need more assurances on the safety of organic products.

Jonathan Wong, director, Hong Kong Organic Resource Centre, said: “If they bought the tomato from Malaysia and say that this is organic, and imported to Hong Kong without any labelling besides saying that it is organic, there’s no way you can prove it unless you go back to their farm or go back to their production line.”

The centre is calling on the government to establish a certification law as soon as possible.

___________
Source: CNA/so

The fast-growing organic and natural food market is the highlight of the Middle East Natural & Organic Products Expo (MENOPE 2008), to be held from November 16 to 18 at the Dubai International Convention and Exhibition Centre. Organised by Dubai-based Global Links, the event is supported by the UAE Ministry of Health and Ministry of Environment & Water.

The organic food market is growing at an estimated 20 to 25% annually. More than 175 companies from over 35 countries will showcase an array of natural foods at the expo, expected to be attended by lifestyle specialists, nutritionists, retailers and healthcare professionals.

Addressing a press conference, Eng. Nadim Al Fuqaha, Managing Director, Global Links, said: ‘Organic and natural food products are not a fad anymore; they are a lifestyle choice that is of considerable relevance in nutrition management. This is particularly relevant for the Middle East region given the high rates of lifestyle diseases such as obesity, stress, cardiac disorders and cancer, which contribute to soaring healthcare bills. The high levels of antioxidants in natural food products enable them to mitigate lifestyle disease risks.’

He added: ‘The growing interest for natural and organic food products is reflected in the response to MENOPE. There is strong participation from the UAE at the expo reiterating the locally-driven initiatives in promoting natural foods. Government authorities in the region are increasingly focusing on sustainable development initiatives in which organic farming can play a key role.’

Today, Saudi Arabia, the UAE and Oman have more than 3,000 outlets for natural and organic products. Several farms in the region are setting aside resources for organic farming. Simultaneously alternative therapies like Ayurveda and herbal treatments are gaining ground, further linking lifestyles to organic foods.

With the merger of Arab Naturals Expo & Conferences, MENOPE offers a larger regional platform for the organic industry. Internationally, the exhibition is supported by the International Federation of Organic and Agricultural Movements (IFOAM) and Korea Health Supplement Association (KHSA).

The expo will showcase a variety of products including Herbs and Spices, Foods & Beverages, Cereal Products, Supplements, Health Care products, Natural Living, Natural Cosmetics, Healing Products, Natural remedies, Traditional Medicines, Spas, Relaxation facilities, Pet products and fabrics.

____________
Source: AME Info

Sorry this post deleted because of technical errors