The chair of the UK’s largest organic association and founder of iconic global brand Green & Blacks organic chocolate has given Australian industry insight into how to keep chemical-free momentum climbing.
Craig Sams (UK Soil Association Chair and organic entrepreneur), shared his story with local industry at the organic expo in Sydney last weekend.
He highlighted differences in the evolution of organic farming, on the back of new research released by Biological Farmers of Australia.
Data from the Australian Organic Market Report 2008 (the first local organic data available since 2004) reveals farm-gate organic sales in Australia have grown by 80pc since 2004, with industry breaking through a $0.5B retail value mark for the first time.
In comparison, organic food and drink sales in the UK market edged towards £2 billion (approx $AUD 4.2 billion) in 2006.
But Mr. Sams said he is impressed by the “high level of sophistication among organic manufacturers and processors” he saw in Australia.
He said differences between the development of the UK and Australia’s younger organic market could end up appearing at a retail level.
“Growth in the UK was fundamentally assisted by an intensely competitive initial uptake of independent organic brands by major retailers” he says.
By comparison, increased organic demand in Australia - where organic retailers now stock in excess of 500 lines - has occurred with many expanding ‘house-brand’ or generic organic retail lines.
Dr Andrew Monk, Standards chair of BFA, says both models have their merits.
“The healthiest approach to growing the overall category of organic would be a mix of both the proven overseas model of private company brands combined with the desire of retailers to expand their own home-brand range offerings," he said.
“Home-brands have very evidently been part of raising demand for volume of organic - however building the resilience of the market inevitably will come from a diversity of marketing approaches.
"Only future retailer competition will prove which model will be most successful for retailers and broader industry suppliers alike”.
Mr Sams says in the UK, independent labels works for both parties because organic consumers are brand loyal and are likely to spend more in-store.
“Retailers found consumers who purchase organic were more likely to select more food of a higher quality whether it was organic or not,” he said.
He said organic consumers are loyal to brands that have a proven record for quality and integrity, such as Green & Blacks – responsible for the world’s first fair-trade organic product, Maya Gold chocolate.
“The element of trade exploitation that creeps into many products just doesn’t tend to happen with organic,” Mr Sams said.