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Home »  Archive - Agriculture Today  »  April 2009

Cocooning and booming

From the April 2009 edition of Agriculture Today.

Karen O’Malley and Scott Seaman
Karen O’Malley and Scott Seaman at NSW DPI’s organic vineyard at Bathurst. Karen can download information to the wireless device she’s holding from buried sensors.

Some Australian Organic Market Report Key Findings

  • Retail value estimated for the first time above $0.5b. Retail value reached $578,000,000 with reports of between 10 and more than 30 per cent annual growth for some sectors since the last Federal Department of Agriculture, Fisheries and Forestry report in 2004
  • The 2007 farm gate values estimated to be in excess of $231,000,000 - an 80pc increase on 2004 findings
  • Farm gate sales have risen despite widespread drought, across all sectors since last reported. Grains and broadacre livestock were most impacted by drought, effectively decreasing the reported average for industry overall
  • Major retailers now carry in excess of 500 different organic lines in fresh and grocery categories
  • Australia accounts for the largest amount of certified organic farmland in the world - 11,988,044 hectares, the majority of which is used for extensive grazing
  • Number of certified organic operators increased by an annual 5.2pc average over the last five years; the total number of certified organic operators was 2750 - made up of farmers, processors and marketers
  • The average age of an organic producer in Australia is lower than a non-organic producer
  • The industry is consolidating; average size of organic farms has increased, highlighting a trend towards larger scale professional farming and farm area expansion by operators experiencing long term success, using organic systems.
  • Horticulture remains a major part of the industry: two thirds of organic farmers make up this sector, which represents almost half the total organic farm gate value in Australia. Fresh produce remains the primary point of entry for new organic consumers

For NSW

  • NSW has the largest proportion of certified farms - 31pc of the national figure
  • In some categories, NSW is the market leader - with 44pc of organic beef farms, 40pc of vegetable farms and 39pc of grain farms.
  • Of almost 12 million hectares of certified farmland across Australia, NSW has the second largest tract and the largest share of the national organic retail and wholesale sector, with 26pc.
  • 27pc of national organic processing and manufacturing sectors are located in NSW.
  • The Australian Organic Market Report is available at www.bfa.com.au

Twelve dollar beef burgers, demand generally mushrooming, consumers forsaking TVs and cars for holistic comfort food, all Australian governments talking up organics - business is booming.

Farmers’ interest in marketing opportunities tied to the boom in organic farmgate sales has also driven the need for access to education and information, so NSW DPI is encouraging them to tap into the skills of extension officers around the State.

The biggest risk is lack of knowledge about what to do, says NSW Department of Primary Industries(DPI) organics industry development officer at Bathurst, Karen O’Malley (pictured).

"Many farmers are interested in converting to organic production, but are not sure how to make the transition," Ms O’Malley said.

"They have a wide range of questions about what organic farming would mean for them in terms of soil and pest management, marketing and certification."

So last month DPI conducted training workshops for Departmental livestock officers, to help them identify ways to improve animal care on organic farms.

Ms O’Malley said the workshop gave livestock officers the knowledge to help landholders understand, identify and manage the risks of transition to an organic system.

The workshops focused on the impact of farm level practices on animal health, and on quality aspects of organic livestock production.

Ms O’Malley encouraged organic producers to now use the wealth of experience and knowledge of DPI livestock officers.

"Much of their day to day work is about helping farmers reduce unnecessary chemical inputs, farming sustainably and producing the best quality product possible," she said.

While most farm assurance schemes, including organic farming certification, are primarily concerned with regulating the production system, animal health and welfare are particularly important in organic livestock production.

"Organic certifying bodies across the country and the Australian National Standard all require strict adherence to humane handling of livestock, high quality feeding and health care, and provision of housing and social conditions that maximise the expression of natural behaviours," Ms O’Malley said.

"Making the change to certified organic farming isn’t easy, but very possible."

Organic farmers are also encouraged to go to the many conventional field days such as Prograze, Paddock Plants, weed control, animal health risk management, and farm planning, to gain valuable information directly applicable to organic systems.

"Agronomic challenges include finding a way to control weeds without herbicides and to control internal parasites in livestock without relying on dewormers," Ms O’Malley said.

"Marketing challenges include finding an organic market and processors for a small amount of product."

Diverse knowledge and experience is required for a successful organic transition.

In many ways organic production, requires a vastly different set of assumptions, tools and techniques.

Ms O’Malley says a lack of knowledge or experience in applying inputs, timing harvest, dealing with disease or identifying markets can result in increased risk and lower rates of return.

The approach to organic production requires more multi-year thinking - looking forward to build soil fertility and backward to understand root causes of pest problems.

The switch to organic production may also be occurring alongside other changes in a business, such as increasing direct marketing.

Contact Karen O’Malley, Bathurst, (02) 6330 1212, karen.omalley@dpi.nsw.gov.au

Cocooning boosts industry in global downturn

The global economic downturn has not so far retarded the expansion of organic industries - worldwide.

The financial crisis is actually contributing to a change in buying habits in favour of organic products, the chair of the Organic Federation Australia told Agriculture Today.

Andre Leu says organic sales continue to increase because consumers are buying more organic products for home consumption, rather than spending on more expensive items such as cars and TVs.

NSW DPI’s organic industry development officer, Karen O’Malley, agrees.

"People’s tendency to cocoon into a stay at home lifestyle in a financial crisis reflects the organic ethic of producing and shopping locally," she said.

Mr Leu says market information from Australia, the US and Europe is showing a considerable increase in the sales of the types of organic products used to prepare meals, such as fruits, vegetables, dairy products, grains, bread and meat.

"The global recession had no impact on the world’s largest organic trade show, Biofach in Germany," he said.

"This year was the twentieth anniversary of Biofach.

"Over 46,000 trade visitors from 130 countries and 2717 exhibitors spread over 12 halls participated in the largest global organic event.

"Several countries gave presentations on their organic sectors with the consistent message that sales continue to expand."

"Our members are telling us that sales have increased significantly," said OFA director and convenor of the Organic Traders’ and Consumers’ Network, Catriona Macmillan.

"While there is some evidence of a slowing in sales of some of the more expensive packaged organic products, this is more than compensated by the increase in all the other lines," she said.

Mr Leu said a recent report showed the industry was worth over $600 million.

"When we add flow-on industries such as the compost industry... worth over $400 million, it is easy to see that the [total] is worth over a billion dollars to the Australian economy," he said.

Mr Leu said industry peak organisations were greatly encouraged by a recent statement of support for organics from the Federal Government and all Australian State Governments, made through the Primary Industries Ministerial Council (story below).

Contact Andre Leu, 0428 459 870, or visit www.ofa.org.au

From niche to a significant player

There are more individual organic operators in NSW than any other Australian State, and around the country producers’ average ages are lower than the non-organic.

As overseas, the Australian industry continues to rapidly expand, promoting market opportunities for producers.

The Department’s organics and food industry development manager, Scott Seaman, says a benchmark research document, the first official data on organics in Australia since 2004, will greatly assist the industry’s future monitoring and planning, and increase producers’ access to helpful information.

The Australian Organic Market Report, published late last year by Biological Farmers of Australia and supported by NSW DPI, shows from its early beginnings in a niche market, organics is now a significant player in the primary industries sector.

"The report will help potential and existing organic producers and marketers make decisions, and offer reference points for government, media and other interested parties," Mr Seaman said.

NSW DPI now hosts an organic vineyard site at its Bathurst agricultural research and advisory station for research and demonstration of production practices, and has a team of staff employed in organic industry development.

The Department is also involved in a number of other projects located at various research facilities investigating organic production systems, and identifying a range of conventional practices which could be tailored to an organic system.

Contact Scott Seaman, Bathurst, (02) 6330 1200, scott.seaman@dpi.nsw.gov.au

Governments all on side

A recent Primary Industries Ministerial Council (PIMC) statement of support for organic farming in Australia is a significant development, aimed to strengthen the future of the industry.

"Support at a federal level now acknowledges the position held by NSW, where we are committed to the development of the organic farming sector," Primary Industries Minister, Ian Macdonald, said.

"The NSW Government has a significant history of supporting the industry and acknowledges that organic products are important to addressing key aspects of future food security for the State."

Organic products are important to the majority of Australian consumers.

A survey conducted by Newspoll says 61 per cent of Australian grocery shoppers buy organic products.

The PIMC announcement recognised the rise in consumer support for organic products and the heightened interest in organic agricultural production, following new figures showing 10 to 30pc yearly growth for some retail sectors and an 80pc increase in organic farm gate values, since previous 2004 benchmarks.

It also recognised the potential benefits of organic agricultural practices to natural resource management and the financial benefit that organics contribute to the economy.

The statement encouraged the Organic Federation of Australia (OFA) and other industry bodies to work closely together to co-ordinate industry development.

Biological Farmers of Australia recently estimated a $600 million contribution to the national economy by organic industries and OFA says flow-on industries push the total value above $1 billion dollars.

Mr Macdonald says the industry is worth over $200 million to NSW and is continuing to grow.

"An Organic Ministerial Advisory Council has also been established, its priority issue being to develop a standard that meets the requirements of both the domestic and export markets, so producers and consumers can be in a position of informed choice," he said.

"In October 2006 a range of new initiatives were announced, including additional staff and resources to be added to the existing Centre for Organic Farming at Bathurst."

Federal support signifies an important policy shift which may provide some opportunity for better national co-ordination of industry development and acknowledges that governments have a role in mitigating barriers and maximising opportunities for growth.

Also in this edition

Twelve buck burgers - who says recession?

Three new spelt genotypes but a health claims caution

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This article appears in the April 2009 edition of Agriculture Today.

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