Last updated 09:24, Saturday, 09 August 2008

TESCO has cut the price of organic produce as customer demand slows in response to the credit crunch.

The supermarket giant says it is now offering many lines at prices last seen almost a decade ago.

They have reduced the price of organic potatoes, asparagus, avocados and peppers to not much more than those of their standard equivalents.

A two pack of organic mixed peppers is £1.42 compared to the standard version at £1.36, two organic avocados cost £1.58 compared to the standard £1.44 and a 1.5kg packet of organic new potatoes is now selling for £1.24 compared to 75p for the standard version.

Tesco said the price fall was largely due to an increase in British produce. Last year most organic produce was imported from Europe and America after widespread flooding affected the local yield.

Demand for organic produce across all retailers has fallen by 8.1 per cent over the last three months, according to retail analysts TNS as people cut back on spending.