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3.4. Organic table birds

During 2003/04, the UK production of organic table birds expanded faster than the organic red meat sector as a whole ¹. In the nine months since April 2004, organic table bird production increased by 36% to an estimated 5.7 million birds. In addition, the British Retail Consortium estimates that the multiple retailers are buying 100% of their organic poultry from the UK.

3.4.1. Survey results - volumes and market outlets

There is no historical data on the size of the Scottish organic poultry sector so it is not possible to evaluate sector growth. The survey elicited five responses from producers who were engaged in rearing organic table birds but one of these refused to divulge production figures to the research team.

For the year July 2004 to June 2005, the four remaining producers accounted for a total of 127,811 organic table birds, approximately 51% of the sectors total production of 250,000 found to be slaughtered in Scotland through the processor survey. The survey results can therefore be assumed to be representative of the entire population.

Production is constant with little variation month on month (figure 3.5). However, there was a near doubling of production during May and June of 2005. This is due to one producer substantially increasing production to meet the demands of a multiple retailer.

An estimated 99.5 % were sold through multiple retailers with the remainder being sold through independent retailers and direct sales outlets (see table 3.3). The multiple retailer's clearly dominate the Scottish organic table bird supply network. One multiple sources 100% of its poultry in Scotland and labels it as such.

Table 3.3. Market outlets for Scottish organic table birds

Direct sales outlets have experienced a rapid increase in demand for organic poultry, including ducks, geese and turkeys. However, this significant potential market has yet to be fully realised. There are a number of factors preventing this from happening including; limited technical skills, a lack of licensed processing facilities for small numbers of birds and the multiple retailers dominance of the market which through high demand is essentially preventing the sector from developing.

The multiple retailers are able to offer producers a high volume, consistent and definite outlet for their produce, whereas direct sales through for example, farmers markets can be sporadic. Subsequently when faced with the choice, producers have chosen the multiples which has had the effect of significantly reducing the number of Scottish organic table birds available for direct sales. Correspondingly, independent retailers are also not able to source enough to meet customer demand. Retailers in Edinburgh have been forced to source organic table birds from Berkshire, England (Sheepdrove Organic Farm), as this is their only means of securing a reliable supply.

3.4.2. Value at farm gate

It is difficult to calculate a farm gate value for organic table birds because farmers raising table birds under contractual agreement receive an average £1.25 per bird whereas the estimated retail value is approximately £9 per bird (or £4.50/kg). However, producers who grow birds under contract do not have to pay for some overheads such as feed or veterinary treatments, as the contractor supplies these services to the producer. Consequently, the contract price for organic table birds does not reflect the true value of these birds to the producer.

Therefore, for the purposes of this report the farm gate value of organic table birds has been calculated using the assumption that the average farm gate price is £4.50/kg for an average 2kg-table bird. It is estimated that the farm gate value of Scottish organic table birds is £2.3 million, approximately 4.5 % of the UK's organic poultry industry.

3.4.3. Penetration

With the exception of Christmas turkeys and geese, table birds are not subject to seasonal fluctuations in supply and demand. The majority of chickens are reared under contract to supply the multiple retailers and one multiple retailer brands the birds as 'Scottish'. However, some of the multiple retailers are sourcing additional organic table birds from Northern Ireland and due to a lack of supply, independent retailers source approximately 90% of their table birds from England. Without the presence of organic processing plants that are prepared to handle birds to be returned to the producer or sold to independent retailers, there will continue to be a shortfall in supply.

It is estimated that currently, market penetration levels for organic table birds are 80%. However, demand for organic poultry has increased dramatically ¹ and if production and processing capacity is not increased there will continue to be a shortfall in the supply of organic table birds in Scotland, with a subsequent decrease in overall market penetration as products from outwith Scotland are imported.

3.4.4. Summary

• During 2004, approximately 250,700 organic table birds were produced in Scotland;
• Multiple retailers have a 99.5% share of the Scottish market;
• Lack of processing facilities is hindering the development of the sector;
• Demand for poultry, through the multiple retailers, direct sales and independent retailers, is not being met by Scottish suppliers;
• Current penetration levels are approximately 80%;
• As with pork, more certified abattoirs that are accessible to producers are needed to process organic table birds for the direct sales/independent market.

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