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 Organic food is the fastest-growing food category in the world and global demand for Australian organic products is expanding rapidly as consumers become ever more health conscious.
In 2005, the International Federation of Organic Agricultural Movements estimated the value of the world organic market at $US30 billion, with predictions that it would be worth some $US100 billion within the next 10 years.
In Australia, the organic food industry is currently worth around $200–$250 million per year domestically and a further $50–$80 million per year in exports.
There are around 2,300 certified organic producers in Australia representing all levels of the supply chain. All organic producers have to comply with strict the national standards developed by the Australian Quarantine and Inspection Service (AQIS).
Australia has the biggest certified organic land mass in the world, with at least 10 million hectares.
Given the extensive amount of certified grazing area, it’s not surprising that organic beef is by far the most valuable organic category. Following beef, vegetables, fruit and nuts and cereals are Australia’s next most valuable categories.
Australian organic infant food, wine and skincare products are also gaining in popularity in overseas markets.
Diverse range of organic products
Organic food production in Australia covers a diverse range of industries, including grains and pulses, wine, horticulture, viticulture, beef, pork, poultry, dairy, honey, edible oils and an increasing range of processed food and consumer products.
Non-food organic products include a variety of cosmetics, hygiene products, timber, paper and plant products.
Accreditation and certification
Australia has strict national standards, in line with international standards, developed by industry and the Australian Quarantine and Inspection Service (AQIS).
There are six AQIS-accredited certification bodies that cover a range of product categories including horticultural products, grains, wine, herbs, meats and processed products.
Export markets
Organic exports are estimated to be worth around $50-$80 million annually with approximately 30 per cent of organic products produced currently exported (Source: DAFF 2004).
The biggest export market for Australian organic products is Japan, which accounts for 33 per cent of organic products. Following Japan is the UK with 17 per cent, France (10.5 per cent), New Zealand (10.2 per cent) and the US (6.1 per cent).
Continental Europe, the US, South East Asia are also significant markets. In the longer term, China, Taiwan and South Korea will also emerge as major export markets.
Product categories with the most significant growth for overseas markets include beef, lamb, cereal-based products, juices, beverages, wine, jam, honey, condiments and processed foods such as pasta.
Perishable products such as fruit, vegetables and dairy products are likely to be confined to closer markets such as South East Asia.
Organic production capabilities
Organic meat
Australia’s FMD and BSE free status make it an attractive producer of meat products to many countries.
While predominantly focused on beef and lamb, other organic meats produced in Australia are gaining in popularity. Those meats include veal, goat, duck, pork and chicken.
Organic meat makes up around 44 per cent of Australia’s total farm gate value.
Organic fruit, vegetables, nuts and honey
The organic fruit, vegetable and nut categories represent at least 35 per cent of the total farm gate value of Australia’s food and beverage production.
Organic fruits include apples, avocadoes, bananas, grapefruit, lemons, watermelon, olives and oranges. Organic vegetables include carrots, garlic, ginger, lettuce, onions, potatoes and pumpkin. Organic nut production is predominantly concentrated on the high-value macadamia, but organic almonds are also grown.
Australian honey is particularly popular in Europe and the UK, thanks to unique varieties such as organic yellow box, rainforest and gum tree.
Organic dairy products
Organic milk accounts for around 6 per cent of Australia’s organic production and is primarily sourced from Victoria, South Australia and New South Wales. Organic dairy products such as dried milk and yoghurt from Australia are highly sought after in South East Asian markets.
Well-known Australian organic brands include Timboon biodynamic cheese, Jalna biodynamic yoghurt and FarmHouse biodynamic ice cream.
Organic cereals
Australia is a globally competitive producer of cereals and has an excellent reputation for quality and affordability.
A network of organic grain farmers is working with Australian grain processors to meet the growing demand for Australian cereal products overseas.
Well-known grain processing companies include Kialla Pure Foods, Whole Grain Milling Company and Casalare. The companies produce a range of organic cereal products, including rye, wholemeal, millet, barley, buckwheat, maize and soya flour, sunflower oil, rolled oats and wheat bran.
Major export markets for Australian organic grains and cereal products include Switzerland, the UK, Germany, New Zealand, Taiwan, Hong Kong, Japan, Malaysia and Indonesia.
Wine
There are excellent prospects for an increase in organic wine exports thanks to the great success of Australia’s wine industry overseas. The UK is already importing significant volumes of Australian organic and biodynamic wine, which is regarded as affordable and easy-to-drink.
(Sources: Rural Industries Research and Development Corporation (RIRDC), DAFF, OFA, BFA, AQIS)
For more information please visit:
www.daff.gov.au – Department of Agriculture, Fisheries and Forestry
www.aqis.gov.au – Australian Quarantine Inspection Service (AQIS)
www.bfa.com.au – Biological Farmers of Australia
www.nasA.com.au – National Association of Sustainable Agriculture
www.ofa.org.au – The Organic Federation of Australia (OFA)
www.organicherbs.org – Organic Herb Growers of Australia Inc.
www.rirdc.gov.au – Rural Industries Research and Development Corporation (RIRDC)
International sites include:
www.ifoam.org – International Federation of Organic Agricultural Movements (IFOAM)
www.organicmonitor.com – Organics Monitor
www.soilassociation.org – The Soil Association
(Last updated: 19 Aug 2007) |