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Superquinn has moved a step further in an effort to overcome problems due to sporadic supplies of local organic produce and variable quality. It has established a farm in north Co Dublin dedicated to organic production in an effort to ensure a steady supply of fresh organic fruit and vegetables.

Apart from price, organic producers realise they have a fight on their hands to educate the public on the difference with their foods.

“It is true to say that as far as consumers are concerned — apart from the dedicated organic buyers — the general public is not really aware of the differences between organic and conventional food,” the department said.

“The price differential is certainly a factor as well but that is partly (because) people do not appreciate that there are practical economic reasons organic producers have to charge more to break even.”

Quality and availability are issues the industry must tackle, said Gillard. “Just because it’s organic doesn’t mean a product will sell — it has to be good as well,” he said. “If a producer wants to be taken seriously, he has to be consistent.”

Aside from the supply-side problems associated with an inability to ensure consistent production, on the promotion front there is a lack of agreement on creating a recognisable brand.

There are three certification bodies with their own proprietary symbols and this is an obstacle to making organic foods a single, identifiable brand under a single logo.

The Organic Development Committee (ODC), a government-sponsored body established in 2000, considered the creation of a single logo along the lines of an ISO quality stamp, to define organic produce. A survey showed that 85% of consumers did not recognise any of the main organic symbols that certify the product has been produced using organic practices, but despite this, the ODC had put it “on hold”.

“A good deal of work went into researching the concept, but different stakeholders had differing ideas about what the label should signify,” the department said. “It seems wisest not to go ahead with an Irish national label at this stage.”

When it comes to breaking into food exports, small is far from beautiful. Small, niche producers do not have the wherewithal to develop the industry — government commitment will be needed to exploit the exponential growth prospects of organic foods.

YOGHURT MAKER FOUND THE O–WORD SPELT THE SECRET OF SUCCESS

A DECADE ago, a vulnerable yoghurt manufacturer was looking for an edge. Glenisk, an offshoot of Tullamore Dairies, had been trading since 1987 but was struggling against better-resourced multinationals.

“We took a conscious decision to go down the organic route in the mid-1990s because, as a small, family-owned company, we felt we had taken a cottage industry and squeezed it as much as we could,” said Vincent Cleary, the joint managing director. “Organics gave us credibility and we are now experiencing sustainable sales growth of 30% a year.”

Glenisk, which has 30 direct employees in Offaly and sources its milk from as far afield as Kerry, will probably never enjoy more than a niche presence in the dairy market, but Cleary is happy with progress. This has included efforts to diversify out of yoghurt and into products such as goats’ milk, which “accounts for 20% of our business, even though we discovered it by accident”, he said.

When it comes to marketing strategies, Cleary said Glenisk’s best calling card is the “O-word”.

“We’re doing quite well against the big boys considering we have a zero marketing budget,” Cleary said. “The fact that we are paying 50% more than other conventional producers to brand ourselves as organic is a marketing cost in its own right. If you look at our labelling, the word ‘organic’ is bigger than even Glenisk itself.”

Despite the phenomenal growth in yoghurt drinks, Cleary believes the company could not compete with the likes of Danone and Nestle by entering this segment of the €204m all-Ireland yoghurt market.

“When (Danone’s) Actimel came out, it seemed to be struggling — but then a blanket marketing campaign turned that around. It is impossible to compete against that level of spending power,” he said.