French organic food sector seen riding out crisis

PARIS, Feb 5 (Reuters) - Most French shoppers do not plan to stop buying organic food in the coming months despite fears about purchasing power in the economic downturn, France's organic association said on Thursday.

In a consumer survey conducted by "Agence Bio" at the end of October, 74 percent of shoppers who already bought organic food said they would maintain or increase their purchases in the following six months.

"Organic products are showing themselves to be resistant to the crisis," Elizabeth Mercier, head of the association, told a a news conference.

However, price has grown in importance for organic shoppers, with 57 percent of those surveyed saying they compare organic and non-organic prices, up from 47 percent in a 2006 survey.

"Among the brakes on growth, price is top of the list," Mercier said.

Growth rates in all major organic food markets, such as the United States and Germany, have slowed in recent months as countries have been hit by the economic downturn.

Mercier told Reuters last month French organic sales should continue to grow this year, although at a slower rate as in other countries.

In 2008, French organic food sales should exceed 2 billion euros, versus 1.9 billion a year earlier, Mercier said after Thursday's news conference.

Official figures on 2008 sales in France are due later in the first half, she added.

To support the development of the organic sector in France, Agence Bio will be looking in particular to attract more grain farmers, Mercier said.

"A big challenge will be to achieve a major breakthrough in the grain sector."

At the end of 2008, the number of organic producers in France was up 10 percent year-on-year, led by conversions in the fruit and vegetable, wine and livestock sectors, Mercier noted. (Reporting by Gus Trompiz; editing by Sue Thomas)