Semix Pluso, a Czech company renowned for its eco-friendly and healthy food products, is encountering difficulties in selling its organic offerings within the Czech Republic. Despite its success as the largest Czech processor of poppy seeds and its production of bakery mixes, whole grain cereals, and vegan products, Semix Pluso is facing a lack of demand for its organic line in its domestic market.

Michal Čižmár, co-owner of Semix Pluso, attributes the limited support for organic products in the Czech Republic as the main hurdle. The country currently lags behind other nations in terms of promoting and embracing organic food, with organic products accounting for only around 1.7% of total food consumption. In comparison, Germany boasts a 5% share, while Scandinavia reaches up to 10%. This indicates that the Czech Republic has significant ground to cover.

One of the primary reasons for the lack of demand for organic products is the cost. Organic food tends to be more expensive than conventional alternatives, making it less appealing to price-sensitive Czech customers. However, Semix Pluso primarily targets international customers who reside in countries where organic food is more popular, accepted, and has a larger market.

Čižmár highlights that countries like Germany have approximately 80 million potential customers, with a higher purchasing power. In contrast, the Czech Republic has a smaller market, resulting in lower demand for organic food. Nevertheless, Semix Pluso remains a pioneer within the Czech Republic’s organic food industry.

The current economic climate has further compounded the challenges, as Czech consumers have become more conscious of their spending habits. In an effort to save money, many opt for conventionally produced alternatives, which are generally less expensive than organic options. As a result, the average annual expenditure per person on organic food in the Czech Republic is significantly lower than the European Union average.

Semix Pluso’s struggle to sell organic products is not an isolated issue. Numerous local organic food producers are also facing similar difficulties in the Czech Republic. Consequently, Semix Pluso has shifted its focus towards exporting its products and expanding its global presence, as there is a more substantial market for organic goods internationally.

Article by Prague Forum