Strong Growth in the Czech Republic Expected
by Redaktion (comments: 0)
In 2005, Czechs spent more than 12 Million Euro on organic products altogether. Within the next five years, a major increase is expected on the Czech organic market reaching 46 Million Euro in 2011. Therefore, producers will have to face new challenges.
A recent survey of the Agricultural Ministry showed that a mere three percent of Czech consumers buy products with a bio label. Nearly 50 percent of Czechs are not familiar with them. Most of the questioned people stated that they are staying away from organic products, since traditional brands are very popular and prices are very high. Statistics show that organic products only account for less than one percent of the total food consumption.
According to the Green Marketing agency, the Czech market could still experience a yearly growth of up to 40 percent over the next five years. Producers and marketing agencies see their task in convincing Czechs that paying more for organic products is worth the price. Green Marketing intends to promote organics in their campaign – they will concentrate on young women and women with children, showing them the benefits for their health, the health of their children and for the environment. Media, television, newspapers and magazines are used to bring their message across.
Currently, the prices for organic food are 40 to 350 percent higher than those for conventional products. But there are still a few successful companies dealing in organic products in the country, e.g. several organic cheese and milk processors and producers and companies producing organic vegetables and fruits.
Compared with other central European states, the organic market in the Czech Republic is far developed. On the retail level, Tom Vaclavic of Green Marketing sees it even as the most developed. Poland has a larger market, but almost four times as many citizens. The Hungarian market is smaller, but has a much more developed organic processing industry because of an earlier start. Hungary is marketing well abroad - organic producers are exporting at least 95 % of their products to Western Europe. In the Czech Republic, however, most of the local production is sold domestically.