The report by the Department for Environment, Food and Rural Affairs (Defrag) also said the government is working to increase purchasing of organic foods for schools and hospitals.
"There is still much more that can and must be done to meet the demand of consumers for British-grown organic products," Organic Farming Minister Ben Bradshaw said at the launch of the report, entitled "Organic Action plan to develop organic food and farming in England-two years on". The report picks up on the work of plan launched in July 2002.
The Soil Association, the UK's leading campaigning and certification organisation for organic food and farming, welcomed the report, saying it underlined the growing popularity of organic foods.
"The action plan to develop organic food and farming in England highlights that the UK is one of only three countries in the world (with Germany and the United States) where sales of organic food exceed one billion pounds ($1.83 billion)," it said.
Since 2002, the proportion of UK organic food in shops has increased to 44 percent of total organic sales from 30 percent, the Defrag report said.
In January 2004, the UK organic area stood at 696,000 hectares, four percent of UK farmland, sharply up from 30,000 hectares in 1993, according to the report.