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 Organic farm gate sales grow by 80pc since 2004 

Organic farm gate sales grow by 80pc since 2004

22/07/2008 11:58:00 AM
The first official Australian organic data in four years has revealed that the organic industry is potentially as resilient to drought as its products claim to be healthy for consumers.

The figures, launched today by Biological Farmers of Australia, show there has been an 80pc growth in the value of farm gate sales of organic agricultural produce since 2004.

And its farmers are younger and the size of organic farms is becoming larger.

The statistics were independently gathered by the University of New England's Organic Research Group, which was commissioned by the BFA, have been published in the Australian Organic Market Report (AOMR).

The findings are based on industry-wide survey data and builds upon research published by the Federal Department of Agriculture in 2004.

BFA director and standards chair, Dr Andrew Monk, says the AOMR is a "benchmark research document" which will assist in industry monitoring and planning.

"The AOMR will serve as a key tool for decision making for potential and existing organic producers and marketers, while offering reference points for government, media and interested parties, allowing for a better understanding overall of the nature, size and structure of the organic industry in Australia," Dr Monk said.

Among the key findings of the research are:

• retail value (incorporating imports and adjusting for exports) was estimated to be $578 million, with reports of between 10pc and 30pc growth per annum for some sectors since the last report in 2004;

• 2007 farm gate values were estimated to be in excess of $231m, an 80pc increase on the 2004 DAFF research findings;

• with 11,988,044 hectares, Australia accounts for the largest amount of certified organic farmland in the world, the majority of which is used for extensive grazing;

• major retailers now carry in excess of 500 different organic lines in fresh and grocery categories; and

• the number of certified organic operators has increased by an annual 5.2pc average net over the last five years, during a time of ongoing decrease in overall farmer numbers in Australia. In 2007 the total number of certified organic operators was 2750 – made up of farmers, processors and marketers. Almost three quarters of all operators are producers, representing 1.5-1.8pc of all growers in Australia.

The AOMR also found that the average age of an organic producer in Australia is lower than a non-organic producer.

The organic industry is also consolidating and the average size of organic farms has increased, thanks to a trend towards professional farming at a larger scale, and farm area expansion by operators experiencing long-term success in utilising organic systems.

But horticulture remains the mainstay of the organics sector, with two thirds of its farmers growing fresh produce which accounts for almost 50pc of the total organic farmgate value.

"While most agriculture has suffered in recent years from drought and floods, many sectors of the organic industry have recovered to be able to consolidate and expand," Dr Monk said.

"Such rapid growth is likely to be attributed to a combination of consumer driven interest in purchasing organic products in line with overseas trends, as well as possibly the naturally more resilient nature of organically well-managed soils, enabling faster recovery following extreme dry or wet weather periods alike."

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Comments


Date: Newest first | Oldest first
Its easy to grow at 80% when your coming from a low base. Do it 5 years running then you might impress.
Posted by THE FARMER on 22/07/2008 10:27:51 AM
12,000,000 hectares seems quite a reasonable "base".
Posted by The Real Farmer on 22/07/2008 4:30:43 PM
the farmer - you are right - it is off a low base but it is clearly the way of the future. don't disregard it - get involved and secure a future for your business that doesn't rely on government handouts.
Posted by mr Green on 22/07/2008 7:23:16 PM
To the best of my knowledge the organic market has grown by more than 10% annually for the last 20 years or more. Are you impressed now? This is one of the many reasons why GM should not be allowed to contaminate organic and conventional crops.
Posted by ggwagga on 23/07/2008 7:43:47 AM
Almost all the pastoral land north of geraldton to halls creek would qualify organic. It's full of goats, camels, dingos, donkeys all run naturally. It's not the organic nirvana 30 mins outside a c.b.d .
Posted by THE FARMER on 23/07/2008 2:15:33 PM
You're right, 80% does appear as easy off a low base. Care to share how great your sector's growth has been over the last four years? I'm unaware of any sector in the agriculture industry that is continually unable to supply the demand for its products, and has a group of similar figures to those listed in the story above.
Posted by Organic Maven on 23/07/2008 2:25:44 PM

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Growth in the organic beef industry was a key finding of the survey.
Growth in the organic beef industry was a key finding of the survey.

Q: Will the abolition of AWB's dual share system result in growers' interests being put second to those of the shareholders?

Yes
(70.4%)

No
(25.1%)

Undecided
(4.6%)

Total Votes: 351
Poll Date: 20/07/2008

11/12/2008 | Farm lobby groups will decide next week whether the future of farm representation will stay as it is or be broadened to bring in the big end of town.
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