From a turnaround in agrarian policy to a turnaround in consumption patterns? A study along the food supply chain from stable to table

The fundamental shift in agrarian policy ("Agrarwende") which was proclaimed by the former red-green government has led to a social upgrading of organic food. This opens up many chances for organic farmers but also means new challenges in many respects. Although the expansion of organic farming, in terms of quantity, and of sales of organic products remained much behind the target envisaged, a new dynamic push has been given to organic food markets, especially by the introduction of a new eco-label by the government in 2002. The new label has considerably accelerated the expansion of the markets for organic food on the European level. Bio-Supermarkets and conventional food retailers including discounters now are the most important distributors of organic food. Increasing differentiation both among farmers and retailers (providing organic food) is responsible for the fact that the ideologically integrated networks of the small, organic food sector are no longer strictly separated from the conventional food sector. In addition, the rapid expansion of supply and trade of organic food on a European scale increases the competitive pressure on organic farmers and small retailers, urging them towards a more pragmatic market-orientation. Adaptation to conventional structures and a stronger economic orientation endanger the trustworthiness and the special quality profile of organic products, however. In the eyes of many consumers the promise of "additional benefits" of organic farming in terms of environmental protection, adequate lifestock management, preservation of countryside, and promotion of regional economies is jeopardized. Thus a new management of ethical values among organic food-retailers and an intensive public debate on a new line of approach to sustainable agriculture and nutrition are required to ensure sustainable growth of organic farming in Germany.