Australia farms the largest area of certified organic land on earth but organic and bio-dynamic production represents a tiny percentage of the country's total agricultural production.

Described by market analysts as 'the most dynamic and rapidly growing sector of the global food industry', the worldwide growth rate of the organic sector is estimated to grow between 10 and 30 per cent annually.

Organics is moving from being a 'niche' industry into mainstream markets, with corporations such as Parmalat, McDonalds, Nestle, Heinz, Unilever, and Coles and Woolworths supermarkets taking an increasing interest in such production.

In 2005, the International Federation of Organic Agricultural Movements put the value of the world organic market at $US30 billion, with predictions that within the next ten years organic markets would be valued at $US100 billion.

A major share of this growth is expected to take place in the US, Europe and Japan.

Worldwide, the total certified organic area is 31 million hectares. Australia leads with around eight million hectares (DAFF, 2004), followed by China (3.5 million hectares) and Argentina (2.8 million hectares).

Most of the world’s organic land is in Australia/Oceania (39pc), followed by Europe (21pc), Latin America (20pc), Asia (13pc), North America (4pc) and Africa (3pc).

The main organically produced product groups traded internationally are fresh fruit and vegetables, dried fruits and nuts, processed fruit and vegetables, coffee, tea and cocoa, spices and herbs, oil crops and derived products, sweeteners, grains, dried leguminous vegetables, meat, dairy products, eggs, alcoholic beverages, processed food and food preparations.

In Australia, organic and biodynamic production represents less than three per cent of agricultural production.

While not experiencing the same rapid growth as in the US and Europe, the Australian organic sector is still growing at around 10 to 20pc a year.

In 2004 there were approximately 1800 certified organic farms under organic management.

This figure excludes in-conversion, pre-certified and deferred farm enterprises, and certified processors.

A further 20 to 30pc increase is expected within one to three years as in-conversion producers come on stream.

Most of the eight million hectares currently under organic management in Australia is pastoral land for low intensity grazing.

Approximately 310 certified organic farms are located in NSW, coveringan area of around 324 560 ha or 4.1pc of the total Australian organic area.

The national value of farm receipts from the sale of organic produce was estimated to be $A140.7 million in 2003, with NSW accounting for $A28.84 million of farm-gate receipts.

The national value at the retail level was estimated at $A300 million in 2004.

Key products include fruit and vegetables, dairy products (a rapidly growing sector), rice, wool, wheat, herbs, wine, beef and sheep meat.

Australian exports of organic products were estimated to be $A50 million in 2001 with approximately 30pc of organic products now being exported.

In 2001 more than 37 000 tonnes and 322 000 litres of organic products were exported to more than 20 countries.

In 2003 about 70pc of export volume went to Japan, the United Kingdom, France and New Zealand.

Of the tonnage exported, organic grains accounted for 66pc, processed products made up 11.8pc, seeds accounted for 10.3pc and horticultural products provided the 9.4pc balance.

The main export opportunities for Australian organic products in Japan include soybeans and soy-based products, corn, corn-based products, grains and flours, dairy (eg, icecream), edible oils, meat and fresh produce. Opportunities for Australian exports to the US include orange juice, beef, and lamb.

A large number of organic products are imported into Australia, providing opportunities for import replacement. The estimated value of these imports in 2003 was $A13 million.

Imports are primarily from the United Kingdom and the US and are mostly processed grocery lines, such as coffee, pasta sauces, olive oil, soydrink, and preserves.

Other organic imports include herbs, spices, grains, pulses, nuts, dried fruits, rice, honey, and sunflower oil. Organic fruit and vegetables are mainly imported from New Zealand to meet short falls in domestic supply.

Contact: Robyn Neeson, Yanco, 02 6951 2735 or robyn.neeson@dpi.nsw.gov.au