CONSUMER demand for organic produce has defied a recent downturn in retail trading, with more than six out of 10 households choosing organics over ‘mainstream’, according to the latest Australian Organic Market Report.
Not-for-profit group Biological Farmers of Australia commissioned the independent report to identify the fast-growing sector’s future growth trends as well as provide reference for government policy setters.
The report found that domestic retail sales grew from $623 million to $947 million, a 50 per cent increase since the previous report in 2008.
BFA said in the report that it expects this figure to pass the $1 billion mark by the end of the year.
The 2010 report highlighted a trend towards independent retailers as well as product lines within the major supermarkets, with Coles, Woolworths, IGA and east coast chain Aldi contributing to 60 per cent of all organic sales.
Retailer support was found to be the single largest driver of the sector’s growth, with the majors carrying more than 500 different organic products. Fruit and vegetables were found to be the most common entry point for consumers.
Manna Wholefoods owner Myra Thomas said the long-established Fremantle shop – which sells mostly organic fresh produce and groceries – had increased its turnover as organics and wholefoods became more mainstream.
“People are more conscious about chemical-free food and cleaning products, and are worried about toxins being absorbed into their body,” she said.
Ms Thomas said the general public was now more educated about organics and there were more people “getting back to basics”.
BFA general manager Holly Vyner told WA Business News the main reason consumers chose organics was health, followed by environmental benefits.
Despite Australia having the largest amount of organic farming land in the word, drought and post-GFC concerns have lead to an undersupply of grain and livestock products.
Ms Vyner said the undersupply, coupled with a 20 per cent increase in consumer demand, had resulted in “a bit of a race to fill the space on retail shelves with organics” and that some of these products have been imported from overseas to meet the demand.
“So there are definitely opportunities there to grow the economy of scale and there are some great growers in WA,” she said.
