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Death of organic?


Ben Watts, October 7th, 2009

As the organic industry fights a tough economic climate, Ben Watts talks to the experts about what has happened to the demand for organic produce: can the market recover, or has the rot set in?

According to the USA’s Organic Consumer Association, organic food currently accounts for less than 2% of global food sales. In the Middle East, an area unsuited to the climatic requirements for mass organic production, the situation is even worse.

All is not well in the organic sector, according to one of the region’s only exclusive organic retailers.

Organic Foods and Café chief executive officer Nils El Accad remarks: “There is no market in the Middle East; we are the only really organic retailer and the market is still in its infancy.

“Conventional supermarkets stock a bit, but it’s gone backwards rather than forwards because of the recession,” he asserts.

In the food service market, the situation has deteriorated completely, claims El Accad.

“We have a food service company and, for fine dining, it has gone all the way down; the hotels are all buying cheaper products and they’re definitely not looking to organic.

“They were not really interested in organics before and now they’re not interested in organics at all.”

Despite El Accad’s reservations, there are chefs in the region who continue to source organic produce.

Gabriele Kurz, chef de cuisine at the Madinat Jumeirah Al Qasr Hotel’s vegetarian Magnolia Restaurant, says: “I am buying more and more organic products.



“You can get quite a big range of everything, but not all the time; it’s not yet consistent, but that will come.”

While Kurz is an advocate of organic ingredients, she admits that it’s difficult to buy 100% organic all the time in the region, due to the climate and the often limited range available from the few suppliers importing such goods into the region.

“There are good suppliers,” she explains. “But they are still limited; the thing is, the production of organic ingredients does not satisfy the demand.

“Whatever we can get from this region we will take, but this is a process that we need to give time to.”

An important point raised by Kurz is that the market remains in it infancy and will take time to grow; after all, organic food only accounts for a small percentage of food sales worldwide. And in more established organic markets such as in Germany, the UK and the United States, the demand for organics has remained relatively strong.

Organic Foods and Café’s El Accad notes that demand varies from country to country. “In some countries it’s not been hit hard at all — more people may be unemployed or perhaps have less business, but they’re still there,” he notes.

“In other countries it’s growing, because people now have more time to focus on healthy eating. Before, everyone was in a rush and did not have time. In Germany for instance, it’s growing, but it’s an unusual market compared to somewhere like the US, where the market has dropped sharply.”

Chris Smith, account manager at UK-based Rachel’s Organic, believes the organic industry’s small market share is not necessarily a negative.



He notes: “This share of the total food market is realistic as, at present, many parts of the world do not have access to organic products for logistical and commercial reasons.

“Organic shoppers can be viewed as ‘visionary’, because they are able to see the benefits to themselves and others that organic products bring. Organic shopping may have slowed in the short term, but looking beyond the current economic situation the future remains positive.”

Magnolia’s Kurz agrees: “If you look at the environment there is an obvious advantage to buying organic products, but you have to invest in it. Of course, it’s a little bit more expensive and more difficult to grow, but we have a responsibility to the environment we live in.

“The main thing is to promote awareness about exactly what we are buying and what we are eating.”



Why use organic?

Smith from Rachel’s Organic claims customers are more likely to pay a premium for organic products, because they understand the quality of what is on offer.

“The product gives the added quality they are looking for and allows them to feel they are doing their bit for the environment, which organic farming can offer to a community as a whole,” he says.

Edgar Razon, executive chef at Coral Beach Resort, Sharjah, notes that difference in taste gives organic items greater appeal than conventional products, even if they are less aesthetically pleasing.

“Organic ingredients are recognisably better than conventionally-produced ingredients and I feel that makes the difference in the dishes that they’re used in,” says Razon.

“We try and use organic as much as we can in all our outlets, as we think it benefits the guest: they are getting a better quality product with more taste.

“When you get the raw ingredients in, it doesn’t always look perfect, but this is natural — things aren’t always the perfect shape, but the actual ingredient tastes great.”

Magnolia’s Kurz adds: “There are products where you can really taste the difference to conventionally-grown product, such as potatoes, root vegetables and the cabbage family.”

Kurz also points towards the environmental and health benefits of choosing organic.

“You cannot say that every organic product tastes better than conventional products, but it is not only about the taste,” she says.

Despite the arguments advocating the use of organic over more conventional products, research undertaken by the London School of Hygiene and Tropical Medicine’s Nutrition and Public Health Intervention Research Unit, commissioned by the UK’s Food Standards Agency (FSA) in July this year, suggests the health benefits of organic fruit and vegetables are no greater than those of conventionally-grown products.

The research claims that both varieties share the same vitamin and mineral contents.

Smith from Rachel’s Organic refutes the research, asserting: “The profile of this FSA report has certainly caused questions to be asked in the media about the health benefits of organic produce.

“However, this is an individual report based on limited research; it flies in the face of numerous reports over an extended period that clearly demonstrate the benefits of organic over conventional.”

Coral’s Razon and Magnolia’s Kurz both maintain that their kitchens will continue to use organic where it can, regardless of the research.

“It hasn’t affected Coral’s use of organic food,” states Razon. “The taste benefits are still a major consideration for us, as is our commitment to striving for green practices, so the benefits there mean we will continue to use these products despite the research on the nutritional values.”



Time and patience

As with any developing market, it seems the key to allowing the organic market to grow is to have patience and to continue trying.

Despite his views of the Middle East market’s current state, Organic Foods and Café’s El Accad has a passion for what he sells and pointds out that chefs often advocate naturally-grown produce.

El Accad, like many other organic traders, might be finding it difficult in the current climate, but he believes that it’s a question of time when it comes to organic products and ingredients.

“The Middle East is not separate to the rest of the world, so if organic can take off in other markets it can take off here,” he says.

“As the UAE and the area reorganises itself, new customers will come — and my job will be to make sure these new customers are made aware.”

Magnolia’s Kurz, who witnessed the growth of a fully functioning organic market in her native Germany over a period of years, notes that “the beginning is always difficult” and requires effort.

“But here we have a difficult environment,” she adds. “Local suppliers are limited because of the climate and we simply have to face that.”



Organic study

A report published by the London School of Hygiene and Tropical Medicine in July concluded that organic food offered no additional nutritional value than conventional products.

The report focused on studies published over the last 50 years. It was commissioned by the UK’s Food Safety Agency and partly published in the American Journal of Clinical Nutrition.

One of the report’s authors Alan Dangour said: “Our review indicates that there is currently no evidence to support the selection of organically- over conventionally-produced foods on the basis of nutritional superiority.”