Organic meat constitutes only a small part of the entire meat industry globally; however, its increasing demand has attracted the attention of all. The demand for organic meat increased by 51% in 2005 in North America.
The ever increasing demand of organic meat is a proof of increasing consumer preference for the product. Consumers normally pay a high premium for natural meat and organic meat. This premium is about 30% for natural meat and anything between 15% to 200% for organic meat.
Let us have a look at the organic beef industry. Organic beef accounts for only 1% of the total retail beef volume and 2% of the total retail sales in the US. However, ever since reports of US and Canadian livestock being affected by BSE in 2003 were revealed, the sales of organic beef have increased dramatically and doubled each year.
To combat the increasing demand of organic meat, US organic meat processors are importing organic meat from other regions such as Australia, Canada and Latin America. According to Organic Monitor, such high is the demand that imports of organic pork doubled in the year 2005 in the US.
Numerous companies are venturing into organic meat sector to tap this opportunity. The conventional meat producers are either buying the already existing smaller organic meat players or starting their own organic meat divisions. Though the European organic market is dominated by only 15 players, small organic meat farms also have created their niche.
From where do people buy organic meat? Supermarkets are the most common sales channel and accounts for over half of the organic meat sales in the many countries. Special organic meat retailers have also made their presence. In contrast, consumers in Germany and Italy prefer to buy organic meat from organic food shops and butchers.
