Australian organic food in demand
Worldwide demand for organic food is booming and Australian producers can snare a bigger slice of the market, a government report says.The Rural Industries Research and Development Corporation (RIRDC) has delivered a broad study of the organics industry, finding demand for the products is outstripping supply around the globe.
"Organics is one of the fastest growing sectors in the food industry overall, experiencing double digit growth in most developed markets, compared with one to two per cent growth rate for conventional food products," the report said. "There is a large amount of latent unsatisfied demand for organic foods."
Most big supermarkets in developed countries stock at least a small range of organic products, including leafy vegetables, dairy and some processed food. But in the most developed nations like the United States, Japan and in Europe, organics has become a mainstream category of food, showing strong demand-driven expansion.
While demand began with fruit and vegetables, it has expanded into meat, dairy products, wine, cereals and processed fruits, and the emergence of boutique supermarkets has broadened the range of products even further. Japan is Australia's biggest market, taking just over one third of our organic exports including meat, cereals, beverages and spices.
The second biggest market is continental Europe, collecting 26 per cent of exports, followed by Britain at 17 per cent. The report identifies some significant export expansion opportunities for Australia, especially in cereals. "The cereal category is one where demand is reported to consistently outstrip supply in key markets such as Europe and Japan," the RIRDC said.
"Australia's competitiveness in cereals and pulses will allow it to be competitive in baked products, noodles and pasta." The absence of foot and mouth and mad cow diseases also provided opportunities for expanding Australia's organic meat exports. RIRDC highlighted organic wine as showing strong export growth potential, after the success of conventional wine exports to the UK, US and Europe.
"As per capita consumption of wine in these countries increases and people become more sophisticated, there will be a growing demand for organic wines," the report said. Organic farming in Australia has grown strongly in recent years, with the country containing the largest amount of certified organic land in the world - an estimated 10 million hectares. "This research is yet another demonstration that organic industries are not a passing fad," parliamentary agriculture secretary Sussan Ley said.
Date: Thursday 6th July 2006
Source: Fresh Plaza
Link: http://www.freshplaza.com/2006/06jul/2_au_organicdemand.htm
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