Organic Market Report 2008: Australian

Chapter 1
Introduction
W
ith growing global interest issues, while promoting vigorous, open
from consumers, farmers, commerce throughout the supply chain
entrepreneurs and policy for food, fibre, and related agricultural
makers across the world, the organic produce. This report will assist policy
movement has over the last decade makers in understanding the opportunity
become an organic industry. From its inherent in an effective integration of
beginnings as a farmer-led grass-roots organic systems thinking and practice
movement, organic agriculture in into Australia’s future agricultural and
Australia has been focused on producing environmental landscape.
high quality product with minimal This report is presented as another step
impact on the environment. This in the continuing task of defining the
movement has tapped into a growing size and extent of the organic industry
consumer interest in purchasing in Australia. Previous work by Hudson
premium products with attributes that (1996), MAQIR (1999), Halpin (2004) and
might include health, food safety, the Wynen (2006) have provided baseline
environment and animal welfare. organic industry data over several years,
As interest in organic production and in addition to the regular, if partial, data
marketing has grown, so too has the need collection carried out by Australian
to describe and understand the industry. Quarantine and Inspection Service (AQIS).
Potential farmers want to know what The survey data presented here is not
commodities are in demand and in what intended to be a precise description of
volumes. Business people and investors the current level of organic production, as
are interested in understanding the this is not possible given the limitations
organic supply chain, from input suppliers of data availability and quality within the
to processors and manufacturers. industry. For example, the extrapolated
Retailers, including the supermarket data presented in this report are estimates
chains that retail the vast majority of and are not intended to be exact figures.
food and fibre products in Australia, are Nevertheless by comparing the new data
attempting to match evident consumer with previous information, particularly
demand with a sustained growth in Halpin (2004) and the AQIS data, it is
supply and availability of product. possible to draw a reliable and informative
Current industry members and other picture of the organic industry in Australia,
farmers considering making the switch its trends and nature. The data, if anything,
to organic production and marketing has erred on the side of caution with
will benefit from the specific sector conservative estimates of sectors, and
information contained in this report as continues to improve the methodology
“While producers still
a facilitative aid in identifying potential applied in making such estimates.
constitute the bulk areas of growth and opportunity, as well For the purpose of this report the
as areas of challenge and oversupply, in term “organic” is used to indicate farms
of certified operators,
the broader Australian organic sector. at all stages of conversion, from pre-
other sectors, especially Other stakeholders with a growing certification, through in-conversion status,
interest in information about the organic to full certified organic status, as relates
processors and
industry are government agencies and to internationally recognised production
manufacturers, policy makers. These people are faced and marketing requirements for farming
with managing sometimes conflicting and value adding. The terms “certified
are increasingly
policies related to food quality, security organic” and “organically certified”
entering the industry.” and diversity, and addressing ongoing are reserved for enterprises in the
environmental and other land-use latter category.
20 Australian Organic Market Report 2008

Overview of Australian organic farmers and farmland Chapter 2
Number of certified organic operations

I
n 2007, the total number of Table 1. Changes in the number of certified organic clients reported
organically certified operators (AQIS 2008).
was reported to be 2,750, based Total certified Change from Annual increase (%)
on AQIS (2008) data from the seven operators previous year
AQIS accredited organic certification 2002 2,140
agencies active in Australia and BFA 2003 2,345 + 205 + 10
figures for their Organic Growers of
2004 2,436 + 91 +4
Australia (OGA) certified clients (BFA,
2008 and OGA database). The number 2005 2,540 + 104 +4
of certitied clients registered by the 2006 2,567 + 27 +1
certifiers with AQIS has been increasing 2007 2,750 + 183 +7
over the past five years at a net rate of
about 110 clients per year, an average
of 5.2% annually. 3000
The annual percentage increase in
organic operators has varied each year, 2500
possibly in response to the drought.
Certified clients
While producers still constitute 2000

the bulk of certified operators, other
sectors, especially processors and 1500 Total
manufacturers, are increasingly Producer
entering the industry, indicating a 1000
Manufacturer/Processor
Wholesaler
strengthening and diversification of the Other
organic supply chain (Figure 1). 500
The State of New South Wales (NSW)
continues to dominate by number of 0
certified clients, with this likely to be 2002 2003 2004 2005 2006 2007
a reflection of population rather than Figure 1. Number of certified organic clients categorised by supply
a greater relative strength in organic chain sector (AQIS 2008).
Australian Organic Market Report 2008 21

Chapter 2 Overview of Australian organic farmers and farmland
“There remain currently 1000 NSW QLD

VIC SA
7 AQIS accredited WA TAS
NT ACT
(for export) organic 800
certification agencies,
Certified clients
along with the non- 600
AQIS accredited small

grower scheme 400
of OGA.”
200
0
2002 2003 2004 2005 2006 2007
Figure 2. Number of certified organic clients categorised by State
(AQIS 2008).
15,000 TOTAL AREA

ORGANIC AREA
12,000
(hectares)
9,000
6,000
2002 2003 2004 2005 2006 2007
Figure 3. Area of certified organic land (AQIS 2008).
production and marketing (Figure 2). farming operations that remain at

Queensland (QLD), however, has this point non-certified. In the main
maintained relatively high numbers these are small operations and do not
of certified operators, given its smaller impact on the direct formal markets
population compared with Victoria (VIC). of the organic industry. Nonetheless
Australia has a number of accredited such groups play an important role
organic certification agencies, including in the broader nature of the organic
some that have been operating for industry and movement. In general, the
decades and others that have been area farmed by certified operators has
established more recently. There remain remained fairly consistent over the past
currently 7 AQIS accredited (for export) few years, not withstanding the 1990’s
organic certification agencies, along and early 2000’s which saw significant
with the non-AQIS accredited small increase in the area of certified organic
grower scheme of OGA. In addition land correlating with the rise of
to this, and not accounted for in this rangeland accreditation for organic
report, is a range of other industry beef production.
associations or groups that harbour

Organic success profile
Organic woman’s natural success

Lisa Mahon, Victorian winner of RIRDC’s Rural Woman of the Year award
L
isa Mahon is a small organic
herb grower with a big passion
for farming that has seen her
recognised nationally as the state
award winner of RIRDC’s Rural Woman
of the Year for Victoria.
Founder of Bromley Organics, Lisa
grows a range of herbs for both
medicinal and culinary purposes with
her partner Ken on a 32 acre property in
Dunolly, near Bendigo, Victoria.
Her focus is on achieving the best
quality product she can – something
she says can be difficult for smaller
growers given most available
information and equipment focuses
on large scale operators. She wants
to develop an efficient equivalent for
small producers.
“I love what I do and I want to be
able to keep doing it as I get older.
That means I’m going to need relevant
technologies to make farming
processes easier – organic operations
are currently very labour intensive with mingling with inspirational Australian Lisa Mahon RIRDC Rural
few small scale alternatives in terms of women from industries as diverse as Woman of the Year
farm equipment” she says. avocados, mangoes, olives and cattle. Victorian state winner on
“We currently harvest with a scythe “There’s no stigma with being an her organic herb property
and hand tools”. organic grower” says Lisa who worked in Dunolly.
With a $10,000 bursary on its way, she as a researcher for chemical companies
can now take the matter into her own before making the switch to farming.
hands and identify exactly where, and “I think conventional farmers are
how, farm harvesting efficiencies can be more accepting of organics nowadays.
improved for small operations. It’s fantastic that organic is being
She is set to travel within Australia recognised at this level and there’s no
and to New Zealand to observe reason it shouldn’t be”.
promising equipment (small harvesters) She says the experience has made
in action and to speak to farmers with her realise that the broad issues for
similar issues on the ground. Australian farm communities are the
“I’m currently part of a local growers’ same, regardless of size and type of
group and feel I’ve gone ahead in producers.
leaps and bounds since joining. Talking, “We’re all battling with things
information sharing and visiting each like climate, closing schools, lack of
other’s properties leads to better farm infrastructure and dwindling country
practices”, she says. towns” she says.
Since winning the award she’s had “But I’m committed to organic –
plenty of opportunity to do that, I think it’s the way things should go”.

Comparison of survey
and AQIS data
A
total of 636 useable completed is presented here. Figure 4 indicates
surveys were returned, providing the proportion of survey respondents
a diverse picture of organic in each sector of the supply chain
production and sales across all States and for the survey data (n = 636) and
for numerous commodities. AQIS (2008) proportion of certified organic clients
reports that there were 2,581 certified reported in the AQIS data (n = 2,589).
clients associated with the certifiers The similarity between the distribution
that participated in the current survey. of the survey and AQIS data suggests
This gave a return rate of 25.4%, almost that the respondents sampled in the
equivalent to the 26.3% reported by survey are largely representative of the
Halpin (2004) in 2003. AQIS figures for the wider organic industry. In the survey,
four certifiers used in the Halpin (2004) almost three-quarters of respondents
survey (i.e. ACO, NASAA, OGA and TOP) were involved with organic primary
indicate that there were 2,138 certified production, about 20% were organic
operators associated with those agencies. processors, manufacturers and
This would give an actual return rate importers, another 10% were involved
for the previous report of 18.6%, in with retail and wholesale trading and
comparison to the current report’s real 1% were input suppliers, providing
return rate of 25.4%. inputs such as stock feed and compost.
As with all prior surveys, and this one, The proportion of organic clients
extrapolation of the data received to certified by the various certifying
determine exact national production bodies that responded to the survey
levels is limited by lack of certainty followed a similar pattern to the
about the representativeness of the proportions in the AQIS numbers. In
responses. A comparison of the current general, NASAA and TOP clients were
survey responses and the benchmark slightly over-represented, while ACO,
figures provided by certifiers to AQIS OGA and BDRI clients were under-
80
SURVEY RESPONDENTS
% of organic supply chain
70 AQIS DATA
60
50
40
30
20
10
0
Producer Manufacturer, Wholesale, Input supplier/
Processor Retail/Wholesaler Other
Figure 4. Percentage of survey respondents and AQIS-registered organic
clients categorised by supply chain sector (AQIS 2008, BFA 2008).
See back of report for further details and methodology.

represented. Because of the sensitivity farms only, further adding to the under-
of data, and based upon undertakings estimates likely in the final data. Such
of confidentiality with specific certifiers, considerations are noted in the range
detailed breakdown data is not of estimates of value for industry
shown here. sectors below.
While the above comparison of the Without clearer sector-level data, it
survey and AQIS data for supply chain was not possible to develop a precise
segmentation and certifier membership method for extrapolating the survey
showed that the survey sample was results to the total population. The
similar to that of the AQIS sample, the general similarity of the surveyed sample
figures on organic area show some and the AQIS figures suggested that the
marked differences between the responses are largely representative of
two data sets. The proportion (%) of the total population, with the caveat that
certified land area for ACO and NASAA smaller operations were more likely to
is 5% and 95% respectively from the be represented than larger operators.
survey responses, but 34% and 66% in Therefore, in order to calculate national
the AQIS data, indicating some under- production figures from the current
sampling of ACO clients (or over- dataset, a common multiplier of 3.93,
sampling of NASAA clients) in terms of based on the return rate of 25.4%, has
area farmed. Given that a small number been applied to the farm gate sales
of operators with very large properties figures for most commodity sectors.
can skew the data, and that actual Industry information provided outside
production, in terms of volume/unit the process of the survey suggests, that in
area, from the larger properties is not particular for horticulture, this multiplier
likely to be high, for example compared is lower than that which should provide
with smaller intensive operators (e.g. a true representative value of the market
intensive horticulture), differences in sector. This is in large measure because of
area farmed was not considered to be a under-reporting by some of the country’s
reliable indicator for extrapolation. larger farmers in that sector.
The average area of certified organic In the interests of transparency, all data
land per survey respondent was less are reported based on the responses
than the average area per operator in received rather than extrapolated
AQIS figures. It is likely that this is due to figures for the whole population.
more of the smaller farms responding However, estimates for farm-gate sales
to the survey and also due to non- (page 32) and retail sales (page 67)
reporting of land area by respondents. are presented using extrapolated data
This would account for the possible based on the multiplier. The extrapolated
under estimate of final total values of data and other key findings were
industry. Specific clients of SFQ and shown to key industry players with
Aus-Qual clients are not accounted expertise in the various commodity
for in this report and only a very small sectors and subjected to evaluation for
number of respondents registered accuracy. In some cases the final result
with BDRI participated in the survey was adjusted based on these industry
via direct communication with the recommendations and input from
researchers. The latter group comprises the commercial sector of marketing
in the main of larger or commercial size and retail.

Number of organic enterprises
I
n 1995, 75% of organic growers for all commodities, although there
were involved with horticulture, was a slight decrease in livestock and
12% with broad-acre and 10% in broad-acre numbers in 2007 (Table
livestock industries (Hudson 1996). This 2), probably due to the impact of the
breakdown has changed in the past drought and associated increases in
decade, with horticulture becoming less feed costs.
predominant and animal production The majority of respondents were
and broad-acre cropping more popular located in NSW, VIC or QLD (Table 3).
as organic enterprises. The data for 2003 These findings are also consistent with
and 2007 show a consistent ranking the early survey of Halpin (2004).
Table 2. Number of organic producers responding to the survey categorised

by commodity. Responses in 2003 included for comparison (Halpin 2004)
Category Respondents in 2007 (as a % Respondents in 2003 (as a %

of total responses, n = 636) of total responses, n = 397)
Fruit 206 (32%) 156 (39%)
Vegetables 147 (23%) 128 (32%)
Beef 102 (16%) 87 (22%)
Grains 57 (9%) 57 (14%)
Lamb 44 (7%) 31 (8%)
Nuts 27 (4%) included with Fruit
Wool 24 (4%) 19 (5%)
Eggs 22 (3%) 18 (5%)
Milk 15 (2%) 15 (4%)
Honey 13 (2%)
Essential oils 9 (1.4%)
Poultry 6 (1%) 7 (2%)
Goats 4 (0.6%) included with Lamb
Pigs 4 (0.6%) 5 (1%)
Alpacas 3 (0.5%)
Aquaculture 2 (0.3%)
Table 3. Number of organic enterprises responding to the survey

categorised by State.
State Number of responses
NSW 196
VIC 138
QLD 100
WA 59
SA 49
TAS 40
NT 3
Not reported 65

Certified organic land area
7
,489,578 million hectares were 11,988,044 hectares, giving Australia the
reported as the total farm area, largest area of certified organic land in the
of which the vast majority was world. Wynen (2008), estimated that 97%
certified organic. Approximately 3% was of Australia’s certified organic land area is
in-conversion and 3% pre-certification, used for extensive grazing, implying that
and the remainder non-organic (Table 4). about 360,000 hectares are used for other
This represents 62.5% of the organic area organic production in Australia. Details
reported to AQIS. The total overall organic about the land area in different states are
land area shown through AQIS figures is given in Table 5.
Table 4. Land area reported in the survey, categorised by organic status

Organic status area (hectares) % of survey total
Organic 7,489,578 93
In-conversion 227,119 3
Pre-certification 269,120 3
Non-organic 26,944 0.3
Total 8,012,761
Table 5. Certified organic, in-conversion and pre-certification land area reported

in the survey, categorised by State.
Area (hectares)
State Organic In-conversion Pre-certification
QLD 7,103,189 170,903 7
NSW 364,503 53,767 8,308
VIC 7,311 646 11,315
SA 4,131 220 225
WA 2,925 1,405 834
NT 2,128 180 148
TAS 1,202 0 0
Not reported 4,189 0 0
25
20
Per cent of returns
15
10
0
5
10
20
50
00
00
0
10
50
00
00
00
,0
,0
1,
5,
0,
10
50
10
Total farm area (hectares)

Figure 5. Percentage of survey respondents categorised by total farm area.

The proportion of organic such as prime lambs and wool, and a

operators within farm size categories tiny proportion reported for grains,
(Figure 6): Half of the respondents dairy, horticulture and specialised
reported 20 hectares or less organic sectors such as essential oils and
land and three-quarters had up to 100 aquaculture. The estimate by Wynen
hectares. Few farms (4%) were larger (2008) that 97% of total certified land is
than 5,000 hectares. under extensive grazing management
The majority of organic land was used coincides with our estimate of 99% for
for beef production, with much smaller the main grazing sectors in Australian
areas used for other grazing industries organic production.
30
25
Per cent of returns
20
15
10
0
5
10
20
50
00
00
0
10
50
00
00
00
,0
,0
1,
5,
0,
10
50
10
Organic farm area (hectares)
Figure 6. Percentage of survey respondents categorised
by organic farm area.
Table 6. Land area reported in the survey, categorised by commodity produced.

Crop Area (hectare) Area (%)
Beef 7,580,977 92
Lamb 349,760 4
Wool 286,446 3
Grains 12,180 0.150
Fruit 6,140 0.074
Eggs 5,595 0.068
Milk 3,899 0.047
Essential oils 1,044 0.013
Alpaca 690 0.008
Meat poultry 529 0.006
Pigs 375 0.005
Vegetables 353 0.004
Goat 351 0.004
Nuts 204 0.002
Honey 201 0.002
Aquaculture 189 0.002

Years spent farming organically

versus general farming
50 FARMING GENERALLY
ORGANIC FARMING
40
Proportion (%)
30
20
10
0
0-5 6-10 11-15 16-20 21+
Experience (years)
Figure 7. Percentage of survey respondents categorised by years of expe-
rience with farming generally and organic farming.
T
he number of years experience proportionally less numerous than is
between general and certified actually the case.
organic farming differ Experience with trading, processing
significantly. Many organic farmers have or manufacturing certified organic
no more than five years experience produce tends to be low, with more
with organic farming systems, whereas than half of the respondents having 5
the general farming experience for years or less experience, although there
respondents was more likely to be at is a solid group of more experienced
least 20 years (Figure 7). While it may be operators with 20% having at least 15
thought that a large number of newer years (Figure 8).
organic farmers augers well for the
future of organic production in terms
of industry growth, it should be noted
60
that Halpin also reported 20-30% of
respondents were in-conversion or had 50
pre-certification status and expected
Per cent of returns
such figures to flow through to more 40

growers contributing to certified
production. However, AQIS figures 30
show that the growth of certified
20
operators is much more conservative.
Possible explanations for the lack of 10
flow-on include (a) attrition, where a
sizable proportion of new-comers do 0
5 10 15 20 25
not persist with their certified organic
Organic trading experience (years)
enterprise, and (b) over representation
Figure 8. Percentage of survey respondents categorised by years of
by small growers, causing the longer-
experience with organic trading.
term organic operators to appear

Organic farm employment

and education
2000
Number of employees 1500
1000
500
0
15-19 20-25 26-35 36-55 56+
Age (years)
Figure 9. Age of employees (including owner-operators) working in
organic enterprises reported in the survey.
T
he Organic Works report by the UK shows that the majority of employees
Soil Association (Soil Association and farmers fall within the 36 – 55yr
2006) found that organic farms age group category, suggesting that,
in the UK provided 32% more jobs as in the UK, the average age of an
than their equivalent non-organic organic farmer is lower than a non-
counterparts and that organic farming organic farmer. The total number of
is attracting more young people than employees reported in the survey was
non-organic farming. On average 5,605 suggesting on the extrapolated
organic farmers in the UK are seven estimate that some 22,000 Australians
years younger than the average non- are employed on organic farms
organic farmer, who is typically 56. nationally. Given the under-reporting
In Australia the average age of a non- on larger horticulture operations in the
organic farmer is 58, however Figure 9 survey, this figure may well be higher.
Table 7. Number of employees (including owner-operators) working in organic

enterprises reported in this survey.
Total Average Median Range
Full time 3,243 9 2 0.75 – 700
Casual 1,216 4 2 0.1 – 100
Seasonal 1,146 7 4 0.25 – 58
Table 8. Education levels of employees (including owner-operators) in organic

enterprises reported in this survey.
Qualification Number of employees % of total
Grade 10 1085 32
Grade 12 919 27
TAFE 392 11
Tertiary 590 17
Other 455 13

Organic production figures Chapter 3
Total farm-gate sales

T
he current estimate of farm-gate sought from key stakeholders in the
sales of certified organic produce relevant sector to provide a separate
in Australia is $231,569,977 estimation of farm-gate sales and the
(Table 9), while it being noted below multiplier was based on that estimate.
that this figure could well be higher The reported data is presented here as
than estimated by this survey. the most reliable conservative estimate
Vegetables, fruits, beef and grains have of farm-gate sales, given the current
the highest sales followed by poultry available data, including sources such as
meat, honey and dairy products. AQIS, the Australian Bureau of Statistics
The farm-gate sales estimates were (ABS) and the certifiers.
calculated by extrapolating the Previous industry estimates have put
financial returns reported for each organic farm income at $89 million
commodity sector, reported in the in 2001, including organic goods sold
following sections in Chapter 3. A on the conventional market (Wynen
multiplier of 3.93, based on the return 2003). In 2003, Halpin (2004) estimated
rate 25.4% was applied similarly across $128 million for certified organic
all commodities on the assumption sales and an additional $13 million for
that the respondents were generally certified organic produce sold on the
representative of the wider organic conventional market in 2003.
farming population. However, where The commodity rankings are the same
the estimate was considered inaccurate for this survey and for Halpin (2004),
by industry experts, further data was and the estimates are quite consistent

Chapter 3 Organic production figures
for the major sectors. The national sales

estimate for organic beef ($31.6 million)
was lower than the $60 million estimate
for 2005 provided by Wynen (2006),
but similar to Wynen’s $32.6 million
re-estimation of data collected by
Halpin (2004).
The following sections report on the
survey results for the key commodity
sectors identified in the ANZSIC
classifications {Trewin, 2006 #6523}.
These sections note the number of
respondents, the certified organic
land area used for that commodity, the
volume of production, average prices
received and related financial returns.
Rather than extrapolated values for
the total organic industry, which
are presented in Table 9, the figures
reported in the following sections are
summaries of the actual data received
from the survey.
Table 9. Volume of certified organic goods produced, financial returns and estimate of national farm-gate
sales. A multiplier of 3.93 was used to calculate national sales from reported sales, except where specified.
The 2003 estimate is from Halpin (2004).
Commodity Reported volume Median price ($) Reported return ($) National estimate ($) 2003 estimate ($)
Vegetables 1 9,601 tonne 3.74 6,427,793 77,133,516 24,384,964
Fruit 2
5,976 tonne 3.76 5,676,583 34,059,498 21,373,875
Beef 8,775 tonne 4.9 8,051,029 31,640,544 52,349,101
Grains 3 4,017 tonne 530 1,815,259 21,783,108 17,565,525
Poultry meat 555,000 birds 8.37 4,645,350 18,256,226 353,337
Honey 1,058 tonne 6 4,230,028 16,624,010 N/A
Milk & dairy 5.6 ML 0.49 3,356,313 13,190,310 7,410,000
Lamb 24,174 head 5.3 2,324,253 9,134,314 2,915,387
Wool 205,442 kg 6.15 1,326,124 5,211,667 N/A
Nuts 109 tonne 8.4 481,352 1,891,713 with fruit
Eggs 89,666 dozen 5.31 466,263 1,832,414 795,755
Essential oils 8.9 tonne 40 123,839 486,687 N/A
Pigs 413 head 9 82,600 324,618 745,750
Goat 8 head 43 344 1,352 with lamb
Alpaca No data No data No data N/A N/A
Aquaculture No data No data No data N/A N/A
231,569,977 127,893,695
1
multiplier = 12, 2 multiplier = 6, 3 multiplier = 12 based on supporting industry information.

Beef
A
bout three-quarters of the 101 Table 10. Number of organic beef
organic beef cattle producers producers (n = 101) categorised
who responded are located in the by State.
eastern mainland States, with NSW being Total %
the most common (Table 10). Of the NSW 12 44
20 producers with the largest organic VIC 6 22
beef cattle numbers, i.e. from 250 to WA 3 11
about 13,000 head, nine enterprises QLD 2 7
were located in QLD, five in NSW, two in SA 2 7
VIC, one each are based in the Northern TAS 2 7
Territory (NT), South Australia (SA) and
Western Australia (WA), and one did not The herd size trends were mirrored
report their location. in the variation in farm sizes reported
The total number of organic beef by organic beef producers. The total
cattle owned by respondents was just area reported by beef cattle producers
below 37,000 head including breeding or groups was 7,581,000 hectares,
stock, stores cattle and finished cattle. with an average of 75,059 hectares
Herd sizes ranged from zero (e.g. and a median of 260 hectares. A large
farmers de-stocking due to drought) majority of producers were located in
up to slightly over 13,000 head on QLD and NSW. Again, the very large
rangeland property in the north. The difference between the mean and
average herd size was 393, however median indicates that most organic
the median was 43 head, indicating producers run relatively small farms. Of
that most organic beef producers have the 52 respondents who mentioned
relatively small herds. The larger herd their feeding practices, nearly 90% used
sizes may be disproportionately under- pasture alone, while 10% used pasture
represented due to the lack of reporting and supplementary grain. Table 11. Number
by a number of large organic beef and status of organic
producers and may have implications Breeding stock beef cattle breeding
for extrapolating total organic beef As table 11 shows, almost one third of stock production and
cattle numbers and therefore the total certified organic breeding stock were sales reported by
farm-gate value of this sector. sold into the conventional market due respondents.
Breeding stock Total Average Median Range

Certified cattle at start of year 19,150 270 42 2 – 4949
Calves born 9,394 171 34 2 – 2200
Bought 1,364 65 25 1 – 346
Losses (e.g. death) 379 9 3 1 – 60
Consumed on-farm 41 3 2 1 – 20
Sold as certified organic 249 28 10 5 – 120
Sold as in-conversion 507 72 13 1 – 300
Sold as conventional due to finishing specifications 609 68 10 1 – 290
Sold as conventional due to lack of market 5,451 303 58 1 – 1950
Sold as conventional due to other reason (e.g. pre-cert) 346 49 38 3 – 195
Certified cattle at end of year 18,995 297 48 2 – 5058

to a lack of demand from the organic and 7% through home killing or

market. The most likely reason to speciality outlets in the south-eastern
explain why such a high number went states.
into the conventional market is due to
the drought and consequent reduction Finished cattle
of herd sizes. There was a reported 5,837 certified
organic finished cattle sold across
Stores cattle all marketing categories in FY06-07.
Almost 90% of organic stores cattle Although production varied from a few
were sold direct to producers in all cattle though to several thousand head
states, 4% were sold in the livestock each year, most farmers sold fairly small
market in the eastern mainland states numbers of stock (median = 28). This is
Table 12. Number and status of organic beef stores cattle production and sales reported by respondents.
Stores cattle Total Average Median Range

Calves born 7,583 345 35 1 – 3346
Bought 1,633 148 46 2 – 470
Losses (e.g. death) 116 8 3 1 – 48
Consumed on-farm 7 1 1 1–2
Sold as certified organic 2,413 172 91 5 – 660
Sold as in-conversion 0
Sold as conventional due to finishing specifications 1,106 156 55 2 – 555
Sold as conventional due to lack of market 230 38 25 4 – 110
Table 13. Number and status of organic finished beef cattle production and sales reported by respondents.
Finished cattle Total Average Median Range

Calves born 346 38 30 1 – 113
Bought 4 4 4 4–4
Losses (e.g. death) 4 1 1 1–2
Consumed on-farm 27 2 1 1–4
Sold as certified organic 4,419 164 29 4 – 2629
Sold as in-conversion 3 3 3 3 – 3
Sold as conventional due to finishing specifications 640 107 49 2 – 318
Sold as conventional due to lack of market 280 47 15 5 – 200

again likely to be a conservatively received for finished cattle varied

low estimate given one abattoir between $3.50 – $14.80/kg (average
currently processes some 200 head = $6.16/kg), and the reported returns
of cattle per week and an estimated were $6,028,384. Total returns reported
10,000 per annum. for organic cattle were $8,051,029, with
Table 14 below shows the majority an average of $107,929/farm (median =
of cattle were sold direct to an abattoir $8,913/farm).
(59%), with a very low proportion
(1.3%) sold through direct marketing to Attitudes
the consumer. The most dominant theme in the open
comment section was the drought. The
Sales figures effect of the drought on issues such
Prices received for organic stores cattle as input costs, stocking rates and cash
averaged $688/head from producers, flow were noted by almost half of the
$388/head from the livestock market 69 people commenting. Other common
and $1,041 from other outlets, ranging concerns were the lack of financial
from $200 to $1,760/head overall. reward in the market, the lack of outlets
Reported returns for certified organic for organic goods, lack of trading stock,
stores cattle based on 2,970 head sold and poor proximity and access to
were $2,020,741. The average price processing facilities such as abattoirs.
Table 14. Proportion of certified organic beef cattle sold to different market outlets.
Proportion of organic cattle sold (%)
Sold direct to an abattoir 59
Sold to a wholesaler 13
Sold to a processor 12
Sold to an organic retailer 7
Sold to a supermarket 6
Sold to producer group or co-operative 1
Sold through own home-delivery scheme 0.6
Sold at a Farmers’ Market 0.4
Sold in farm shop/gate/retail outlet 0.3
Table 15. Expected change in certified organic beef cattle production in the
following year.
Expected change in production Stores cattle (%) Finished cattle (%)
Significant increase 18 16
Marginal increase 7 9
Remain similar 16 20
Marginal decrease 5 2
Significant decrease 11 14
Not reported 44 40

Organic profile
CLEAVERS The Organic

Meat Company
Processing benefits for a domestic meat market
C
leavers The Organic Meat Cleavers The Organic Meat Company is
Company is Australia’s largest Australia’s largest dedicated certified
dedicated certified organic organic meat processor.
meat processor. The company plays an
integral part in facilitating the organic combating one of the key challenges for
meat supply chain by processing, the certified organic meat industry in the
portioning and preparing ready- future – “the possible commoditisation
packaged meat products for delivery to of organically certified meat”.
major and independent retailers. Aiming to expand to the point of
“Many retailers do not have the international competitiveness, Cleavers
facilities and are not willing to take on is investigating export opportunities in
the expense of processing organic meat a number of markets including Asia and
separately. Cleavers ensures organic meat the US.
producers can access retail markets, and However Ken says their first priority is
have a vested interest in supporting the to ensure a grower base in Australia is
development of a strong base of organic sufficiently equipped to meet growing
meat growers for consistent, quality meat local demand.
supply to the Australian market”, says Toby “The organic meat industry is reaching
Scales, senior buyer for the company. a new phase of improved meat supply
Key category lines are beef and and consistency, and the process of
lamb and the company also processes certification becomes smoother with
chicken, pork and turkey, with organic industry experience”, says Ken. He says
goat a possibility for the future. organic meat will compete in a long-
The company has grown substantially term domestic market against non-
at a rate of 20% per annum since organic alternatives.
opening certified organic operations in “For example, organic lamb currently
1991, with major intermittent growth constitutes three per cent of lamb sales
leaps of 50% roughly every four years. in the white collar demographic and
Owner Ken Taylor attributes much growing at three times the rate of non-
of Cleavers’ success to the efforts organic lamb” he says.
of a strong staff base dedicated to

Lamb
Production figures $1,425,833. Total organic prime lambs
Although not clear from the data sold was reported at 24,174 for a total
collected through the survey it is return of $2,324,253.
usually typical for the lamb market to Organic lamb producers largely fed
have a greater seasonal variance in the their animals with pasture (61%) and a
price paid than for other meat sectors. small proportion used a combination
This is a factor that could have a huge of pasture and supplementary grain
bearing on the economic viability of feeding (9%). The remainder (30%) did
an organic lamb producer who may be not report their feeding method.
trying to sell lamb at a time when the
market is not in short supply and could Attitudes
be one explanation as to why organic As with the other meat sectors, organic
lambs (Table 16) were sold into the lamb producers have a few hurdles
conventional market. in the supply chain to overcome in
order to make their industry more
Sales figures sustainable. One such way producers
A reported 10,659 organic store lambs intend to overcome some of the supply
were sold at an average price of $84.00/ chain issues is to market directly to the
head (Table 17), providing returns consumer. Direct marketing methods
of $898,420. About 13,500 organic are becoming increasingly popular in
finished lambs were reported sold the more developed overseas markets
(average price = $6.00/kg, median = such as Europe and the US and offer an
$5.30/kg) (Table 18), giving returns of alternative solution to some producers,
Table 16. Number and status of lambs produced on organic farms reported by
respondents.
Status Lambs
Certified at start of year 28,650
Born 41,952
Losses (e.g. death) 2,084
Consumed 361
Sold as certified organic 15,204
Sold as in-conversion 3,368
Sold as conventional due to finishing specifications 791
Sold as conventional due to lack of market 7,036
Sold as conventional due other reasons (e.g. pre-certification) 10,333
Certified at end of year 26,035
Unaccounted 5,390
Table 17. Number and value of respondents’ certified organic lamb production
for the stores market, with market location indicated.
Target market Store lambs sold Value [range] ($/head)
Direct to producer 8,858 97.38 [50 – 190]
Sold through other markets 1,801 71.20 [44 – 100]

especially those who are within price premium for organic wool”
“All wool producers used reasonable proximity of a • “market now flooded with organic
large population. lamb, so prices decreasing”
Merino, with several • “a few wholesalers/abattoirs have a
respondents specifying Difficulty reported in monopoly on the market”
marketing of product
particular crosses such • “abattoirs are too far away” (3) Difficulty reported
as Merino-Dorper, • “lack of certified processors” in production
• “Butchers don’t want merino”,“change • “drought” (10)
Merino-Dorset and breed to a more desirable prime lamb” • “cannot buy organic feed”
Merino-Suffolk.” • “certified organic system needs • “lack of certified worm control. Lack
developing for export markets” of grain and protein meals to aid
• “lack of markets” finishing in adverse seasons”
• “intend to supply through own direct • “difficult to finish lambs”
marketing & on-farm shop” • “property too small”
• “very limited markets for organic, no
Table 18. Number and value of respondents’ certified organic lamb production
for the finished market, with market location indicated.
Target market Finished lambs sold Value [range] (cents/kg)
Producers and producer groups 2,301 4.86 [3.30 – 7.13]
Abattoirs 2,390 6.65 [4.5 – 7.75]
Wholesalers 8,201 5.02 [4.30 – 5.40]
Processors 480 5.25 [5.00 – 5.50]
Organic retailers 80 8.96 [7.54 – 10.38]
Own retail outlet1 63 5.30
1
One response only
Significant
Expected level of change
increase
Marginal
increase
Remain
similar
Marginal STORE LAMBS
decrease FINISHED LAMBS
Significant
decrease
0 1 2 3 4 5 6 7 8
Number of respondents
Figure 10. Expected change in organic stores and finished lambs
production levels in the following year.

Wool
Production figures
Of the 24 respondents reporting on
organic wool production, slightly more
Photo supplied by Organics for Rural Australia - ORA

than half (14) were based in NSW, 5
in VIC, 3 in SA and 2 in WA. Mob sizes
varied considerably in line with the
variation in farm sizes, with a few very
small enterprises producing wool
and a greater number of large or very
large properties (Table 19). All wool
producers used Merino, with several
respondents specifying particular
crosses such as Merino-Dorper, Merino-
Dorset and Merino-Suffolk. Wool fibre
diameter ranged between 15.5 and 34
microns, with an average diameter of ranged from $5.44/kg in the domestic
21 microns. organic market to $10.00/kg for organic
The volume of wool produced on exports (Table 21).
organic farms and the prices received
for that wool are presented in Table 20 Attitudes
and Table 21. Wool growers were divided in
their expectations for production
Sales figures in the following year. Half of the
Returns for organic wool were reported respondents anticipated a significant
to be $1,326,124 and wool prices or marginal increase (5, 2) or similar
Table 19. Size of sheep mobs managed on farms of respondents.

Mob size Ewes Lambs
Total 99,350 68,541
Average 6,623 6,231
Median 2,287 1,400
Minimum 8 163
Maximum 53,500 53,300
Table 20. Volume (kg) and status of wool produced reported by respondents.
Total (kg) Average (kg) Median (kg) Range (kg)

Total produced 195,189 13,013 4,000 400 - 68,400
Sold in Australia as certified organic 108,315 15,474 5,140 2,230 - 56,160
Exported as certified organic 77,627 25,876 19,500 1,967 - 56,160
Sold as in-conversion 19,500 1
Sold as conventional due to lack of market 20,162 3,360 3,496 120 - 8,500
Sold as conventional due to other reasons 94,586 15,764 11,320 146 - 54,000
1
one response received for this category

wool production levels (2), while the just be beginning to show signs
other half expected a marginal or of following this trend. A growing
significant decrease (1, 8). There were number of large businesses such as the
several important constraints limiting Benetton Group are getting involved
the development of the organic wool in the organic textiles market, while
sector including production issues domestically, larger retailers such as
such as worm, lice and fly control Target are moving into a range of
and a lack of affordable feed inputs organic textiles, complementing the
due to the drought. Off-farm issues independent and direct marketing of
affecting organic wool producers were dedicated organic businesses supplying
largely related to the limited market niche markets such as the baby clothes/
for certified wool and poor financial young mothers sector. Further moves
returns due to the lack of premiums. into the market from players such
The overseas organic textiles market as these could lead to an increase in
is growing rapidly as consumers are demand for good quality organic wool
becoming more aware of ‘Green and other textiles such as cotton for
Fashion’. The Australian market may both the domestic and export markets.
Table 21. Prices received ($/kg) and status of wool produced reported by respondents.
Average ($/kg) Range ($/kg) Return ($)
Total produced 6.15 3.00 - 9.12
Sold in Australia as certified organic 5.89 5.44 - 6.57 637,975
Exported as certified organic 7.86 5.44 - 10.00 610,148
Sold as in-conversion 4.00 3.00 – 5.00 78,000
Sold as conventional due to lack of market 3.00 3.00 - 3.00 60,486
Sold as conventional due to other reasons 3.88 3.16 - 4.60 367,309
OBE Beef – success in Australian

organic beef and meat supply
OBE Beef is a major supplier, co-ordinator and exporter of Australian certified organic meat. Ten
years old, the company has helped stabilise a consistent supply of certified organic high-quality
beef in Australia, facilitating both local growers and meat processors to meet overseas orders.
OBE sources include committed organic producers primarily from the highly productive Channel
Country in South West Queensland where the co-operative runs cattle on 7 million hectares of
certified land.
Simone Tully, General Manger, says the company has focused on and achieved consistent
consolidated growth under a long-term expansion strategy, with OBE producers more protected
from the effects of drought by the natural production system of the Channel Country region.
“We’ve had two or three really good seasons in times where production in Australia generally has
been difficult. Up to 17% of all of Australia’s fresh water flows through the Channel Country flood
plains and a flood in January means stock can have good feed until July the following year” she says.
“Our core business focus is on achieving balance between producer, retail and wholesale relations
- our success comes from building relationships based on integrity”.

Organic profile
Organic Profile: Inglewood Farms

Organic poultry producers at large
R
unning a vertically integrated, to do this to meet both
large scale poultry production international regulations
and processing business in and the Australian reality
Inglewood, Qld, presented plenty of of lower availability of
hurdles when company founders and locally produced protein
directors Clive and John Wylie first sources for animals that
began over five years ago. naturally need more
Now, they say their biggest challenge protein in their diets
for the future is sourcing a consistent than herbivores.
supply of affordable feed supplies, in Clive says Inglewood
particular proteins. was developed on
The business mills its own grains to the back of growing
feed birds processed in an on-farm consumer demand for
abattoir, and takes a ‘closed loop’ organic food which he
production cycle approach. Waste from says has remained stable in its growth, Clive Wylie at Inglewood
the chicken sheds and the abattoir are and contributed to substantial annual Farms, where a ‘closed loop’
recycled into compost and re-applied expansion of the business. production cycle approach
to their cropping soils. He says the opportunity for export allows the business to be
“We’re fully self-sufficient in terms of Australian organic poultry is strong as close to self-sufficient as
of grain but we have to buy in protein, - “Our business structure absolutely possible.
primarily certified organic soy bean. accommodates for exports in the
Currently we’re competing against future” – provided resources can be
the human consumption market sourced to feed the potential extra
and high commodity prices – which demand.
equates to a higher input cost and Premiums on the final sale of organic
supply constraints in the context of the poultry meat are strong. Around 80%
business” says Clive. of Inglewood’s products are sold to
He says the issue will be faced by major retailers, with the remaining 20%
all monogastric producers in the distributed to independent food service
future but to a large extent the future and retail butcher shop outlets.
success of this sector is dependant “People are willing to pay more for a
on the development of appropriate high quality organic bird, most often
organic standards that maintain on the basis of health considerations,
organic integrity, while also ensuring but animal welfare is of paramount
animal welfare, balanced nutrition importance to our ideology” says Clive.
and sustainable farming systems in He says Inglewood is enthusiastic
appropriate balance. about the future of organic poultry
“We need to allow considered and has no intention of trying to
scientific debate and a recognition of replicate the high volume daily output
farming and livestock sector realities of intensive conventional chicken
into the ‘standards debate’ that can production. Indeed to this end they are
investigate alternative sources of working towards changing the very
protein for achieving genuinely genetics that the industry is based
sustainable solutions”. The Americans upon – getting back to a “naturally
and Europeans have balanced this issue more balanced bird” that will “live and
in their own ways and appropriate to therefore taste far better than its non-
their own regions, while Australia is yet organic cousins”.

Poultry (meat)
Production figures return for about 555,000 organic meat
Organic poultry meat production was birds was $4,645,350.
reported by six respondents, three
from NSW and one each from QLD, Attitudes
WA and VIC. In regards to the types of Two respondents expected a significant
birds grown for meat, all respondents increase (at least 10%) in poultry meat
produced chickens and one grower also production in the following year, one
raised geese while another expected a marginal decrease (at
raised turkeys. least 10%) and another anticipated
production to remain similar. The major
Sales figures constraint reported by producers was
Organically produced poultry meat the cost and accessibility to organic
birds are largely sold through retail grain, usually attributed to the impact
outlets (71%) in the ACT, NSW, QLD and of the drought. Problems accessing
VIC or wholesalers (28%) in NSW, QLD, organic processors and cold-chain
SA, VIC, with less than 1% being sold logistics issues have hampered
at farmers’ markets in NSW. The total enterprise growth for some producers.
Table 22. Number of poultry meat birds managed on organic farms reported
by respondents.
Stores Finished
Certified at start of year 41,000 5,045
Bought 206,000 4,560
Losses (e.g. death) 6,000 410
Consumed 10,000 50
Sold as certified organic 243,980
Sold as in-conversion 680
Sold as conventional (pre-certification) 120
Certified at end of year 21,000 1,040

Eggs
Production figures supermarkets, farmers’ markets and
Twenty-one responses were received community supported agriculture (CSA)
from organic egg producers. Half of the schemes for prices ranging from $3.00/
respondents were from NSW, a quarter dozen for farm-gate sales to $7.50/
from QLD, three from VIC, two from WA dozen at farmers’ markets (Table 25).
and one unknown. Where pullets were Almost 90,000 dozen organic eggs were
not bred on-farm, they were commonly sold for an overall return of $466,263.
sourced from producers in NSW, QLD
and VIC. Details about flock sizes and egg Attitudes
production levels are given in Table 23. Most organic egg producers were
Productivity of the organic egg producers optimistic, with most expecting a
ranged between 1 and 43 dozen eggs per significant increase (3), marginal increase
hen, with an average of 14 dozen eggs (2) and similar production levels (9) in
per hen, equivalent to about 1 egg/hen the following year. However, two growers
every second day. The large difference expected a significant decrease in
between the average and the median production due to the cost of grain and
indicates that the range of farm sizes is a perceived decrease in market size.
broad and that there are a small number
of very big enterprises that predominate. Table 24. Status of eggs sold from organic farms.
Most eggs produced on organic farms are Percentage
sold as certified organic (Table 24). Sold in Australia as certified organic 66.81
Exported as certified organic 0.02
Sales figures Sold as conventional due to lack of market 1.00
Certified eggs were marketed through Sold as conventional due to pre-certification status 0.02
a wide range of outlets including Sold as conventional due to other reason 0.22
Unreported 31.94
Table 23. Number of laying hens, eggs produced and pullets bought-in on
organic farms as reported by respondents.
Flock size (hens) Eggs produced (dozen) Certified organic eggs sold (dozen) Pullets bought
Total 93,409 3,125,232 2,091,353 71,670
Average 5,495 208,349 209,135 6,515
Median 200 600 738 300
Range 14 - 70,000 30 – 3,000,000 220 - 2,000,000 20 - 50,000
Table 25. Target markets for certified organic eggs reported by respondents.
Eggs sold (dozen) Value ($/dozen) [range Market location
Farmers’ markets 26,064 6.17 [5.00 - 7.50] NSW, QLD, VIC
Wholesale 16,395 4.00 NSW, QLD, VIC, WA
Retail 16,387 5.32 [4.50 - 6.50] NSW, WA
Home delivery 13,095 5.40 [4.80 - 6.00] NSW, QLD
Supermarket 12,000 4.80 QLD
Farm-gate 101 5.3 [3.00 - 6.00] NSW, VIC
Café/ restaurant 5,000 6.00 QLD
CSA 1 624 4.50 NSW
1
Community supported agriculture

Milk and dairy products

Production figures to be worth $468,000. Concentrated
Organic dairy production was reported milk for ice cream was also mentioned
by sixteen respondents; ten in VIC, four though no volumes or prices were
in NSW and two in SA. Two VIC growers reported.
produced milk from goats, while the Assuming the respondents are
others grazed dairy cows. representative of total organic dairy
Total reported cow’s milk production production, it is estimated that the
from organic farms was 5,557,346 litres. total farm-gate sales of organic milk
About 98% was sold as organically products is $11,351,069.
certified, with only 80,000 litres from Producers of goat milk expected
one farm being sold as conventional a significant increase in production
due to market access problems. This in the following year. However,
volume was produced from a total they commented that the cost and
reported 1,438 dairy cows. Assuming a availability of certified feed was a major
multiplier of 3.9, this figure compares constraint on production, particularly
favourably with industry estimates of in light of the drought. Small farm
a national organic dairy herd size of sizes, a lack of skilled staff and seasonal
around 6,000. Herd sizes range from variations of supply (e.g. decline in
18 to 450 head, with an average of winter) were also of concern.
198 cows.
Goat milk production totalled 59,000 Attitudes
litres, all sold as certified organic with Although several dairy cattle graziers
71% sold to milk processors and the expected a significant/marginal
remainder processed on-farm for increase in production in the short-
achieving higher returns. Dairy goat- term, a significant decrease was
herd sizes averaged about 40 head. expected by two farmers, both who
“Farm-gate prices
were very concerned about the on-
received for milk ranged Sales figures going impact of the drought: “Drought
Farm-gate prices received for milk has cost the business half its production
from 42 – 56¢/litre for
ranged from 42 – 56¢/litre for raw milk, including a halving in stock numbers
raw milk, up to $5.00/ up to $5.00/litre for milk processed on- in a market growing at 60% a year
farm. The overall volume of organic in 04/05 and 05/06”. Other issues
litre for milk processed
milk reported was 5.6 ML, giving a of concern to cow’s milk producers
on-farm.” return of $2,888,313. included small farm sizes limiting
Cheese production was reported expansion and excessive regulation.

Pigs
Production figures Very few sales were through wholesale
Organic pig production was reported outlets, with the focus instead on more
by four respondents, two from VIC and direct marketing avenues such as
one each from NSW and WA (Table 26). retailers, direct to the consumer and
One respondent expected a significant farmers’ markets.
increase (at least 10%) in weaner pig
production in the following year, while Attitudes
another expected a significant decrease Two respondents expected a significant
(at least 10%). increase (at least 10%) in finished pig
production in the following year, one
Sales figures expected production to remain similar
The average price for pig meat was and one expected a significant decrease
$5/kg, with production reported at (at least 10%). Open comments from
413 head. The total reported financial organic pig producers highlighted the
returns were $82,600, assuming 40kg/ problems of feed costs and availability
head. The target markets reported (2 respondents), the impact of the on-
for organically produced weaner and going drought (1) and that certified
finished pigs are shown in Table 27. abattoirs are too far away (2).
Table 26. Number of pigs managed on organic farms reported by respondents.
Breeding stock Weaners Finished
Certified at start of the year 136 39 180
Born 40 44 30
Bought 4 0 60
Losses (e.g. death) 6 9 0
Consumed 3 0 2
Sold as certified organic 153 41 102
Sold as in-conversion 0 0 0
Sold as conventional due to finishing specifications 0 0 0
Sold as conventional due to lack of market 0 0 0
Sold as conventional due to other reason 0 0 0
Certified at end of the year 108 48 36
Table 27. Number and value indicated by respondents of certified weaners and
finished pigs sold to various outlets, with market location indicated.
Sold (head) Value ($/kg) Location of market
Weaners
Direct to producer 75 6 VIC, WA
Direct to consumer 75 14 WA
Finished pigs
Wholesale 15 4.2 NSW
Organic retailer 168 5 - 30 NSW, VIC, WA
Home delivery 65 WA
Farmers’ market 10 WA
Own retail 5 12 NSW

Other livestock products

Goats each in NSW, QLD and VIC. All alpaca
Organic goat production was reported producers used pasture for the primary
by four respondents, two from NSW feed source. Production was expected
and one each from QLD and TAS. The to remain similar in the following year
responses for market outlets for goats according to one respondent.
were incomplete, with only one grower
reporting about 40% of sales direct Aquaculture
to butchers and 60% processed on- Two survey respondents reported some
farm. The value was $40.00 and $46.50 form of organic aquaculture production,
respectively. All goat producers used both located in WA. One of the WA
pasture for the primary feed source. respondents was producing about 10
One respondent expected a significant kg of marron, a large freshwater crayfish
increase (at least 10%) in goat found in the south-west corner of
production in the following year, while Australia, all of which was consumed
another expected production levels to on-farm in 2006-2007. They expected a
remain similar due to the “slow uptake significant increase in production in the
of global certified organic goat meat”. following year. The other was producing
about 1000 kg of rainbow trout, all of
Alpacas which was sold conventionallly due to
Three enterprises reported organic a lack of organic market outlets. They
alpaca production (Table 29), one expected production levels to remain
Table 28. Number of goats managed on organic farms as reported

by respondents.
Breeding stock Finished
The estimate of national Certified at start of year 47 + 3,500 pre-certified 31
farm-gate sales of honey Born 1,274
is $16,624,010. This is the Bought 7

Losses (e.g. death) 4 1
sixth highest commodity
Sold as certified organic 8
value reported, following Sold as conventional due to lack of market 1021
closely after poultry meat. Sold as conventional (cast for age) 15
Certified at end of year 40+2,850 pre-certified 15

similar in the following year. significant increases and marginal or

NSW harbours one, albeit not large significant decreases. The reasons for
sized, fish operation for silver perch. the expected changes were not clear,
although open comments from organic
Honey honey producers indicated a number of
Thirteen enterprises reported organic constraints including:
honey production (Table 30), five • the impact of the drought on hive
in NSW, three in VIC, two in TAS and productivity and the availability of
one each in QLD, SA and WA. Total suitable flora,
production was 1,058 tonnes with a • pest and disease problems including
return of $4,230,028 for the year. wax moths and beetles,
Several producers (5) expected • lack of facilities (equipment, labour)
production levels to remain similar in and time for expansion, and
the following year, while others were • a downward pressure on prices along
divided equally between marginal or the supply chain.
Table 29. Number of alpacas managed on organic farms as reported

by respondents.
Breeding stock Stores
Certified at start of year 4 0
Born 6 0
Bought 0 2
Losses (e.g. death) 0 0
Consumed 0 0
Sold as certified organic 0 0
Sold as in-conversion 0 0
Sold as conventional due to finishing specifications 0 0
Sold as conventional due to lack of market 0 0
Sold as conventional due to other reason 0 0
Certified at end of year 6 4
Table 30. Quantity and value of organic honey produced, with market location as indicated
by respondents.
Quantity (kg) Value ($/kg) Location of market
Total produced 1,563,785 3.30 - 16.00 (average = 6.2)
Sold in Australia as certified organic 363,485 3.40 - 16.00(average = 7.6) All mainland States,
mostly NSW
Exported as certified organic 544,022 10.00 Japan, Singapore, USA
Sold as in-conversion 150,000 TAS
Sold as conventional due to lack of market 400,500 8.00
Sold as conventional (pre-certification) 80,000 3.80
Sold as conventional (non-compliant packaging) 32 12.00
Unsold or unaccounted for 25,746

Vegetable, herb
and nursery production
Total production was 355 hectares based on a total
The fruit and vegetable sector has available farm area of 2,940 hectares
long been the mainstay of attention amongst the 147 respondents. The total
for organic growers and consumers volume of organic vegetables and related
(Halpin 2004). The smaller scale and products was 9,601 tonnes, of which
more intensive nature of horticulture, 86% was sold as certified organic on the
compared with rangeland grazing and domestic market, about 5% was re-used
broad-acre cropping, may be more on-farm (e.g. processing), 1% kept for
attractive in terms of lower start-up costs, seed, 0.2% was sold as in-conversion and
smaller holdings required and closer 5% sold to conventional markets.
proximity to urban and regional centres. The respondent population was
The total area reported for organic highly skewed in terms of farm size and
vegetable, herb and nursery production volume of production. There were a
Table 31. Number of organic vegetable producers responding to the survey, area under organic vegetable
production and volume of organic vegetables reported, categorised by crop.
Crop Growers Total production area (hectares) Total production volume (tonnes)
Cucurbits 1
55 66 5,503
Carrot 13 32 1,546
Potato 29 24 431
Brassica 35 71 376
Leafy greens 30 16 369
Other root crop 2 28 7 358
Lettuce 27 20 207
Other vegetables 3
19 9 206
Onion 19 4 144
Tomato 38 8 100
Nursery plants 5 2 69
Capsicum 24 7 58
Herbs, culinary 33 9 58
Garlic 56 13 54
Sweet corn 17 6 40
Other alliums 4
18 7 30
Legumes 5
10 12 25
Asian greens 19 5 8
Other solanums 6
4 7 7
Herbs, medicinal 17 8 6
Cut flowers 4 3 4
Seed production 14 9 1
Crops mentioned in the survey included: 1 pumpkin, zucchini, cucumber; 2 beetroot, Jerusalem artichokes, parsnip, sweet potato, turnip, taro;
3
asparagus, fennel, rhubarb, mushroom; 4 leek, spring onion, shallots; 5 beans, peas, snow peas; 6 eggplant, chilli.

Table 32. Number of organic vegetable Table 33. Area (hectares) of organic
producer respondents (n = 147) vegetable production by respondents
categorised by State. categorised by State.
State Total % State Area (hectares)

NSW 53 36 NSW 983
VIC 30 20 VIC 675
QLD 26 18 QLD 651
WA 15 10 WA 132
SA 14 10 SA 88
TAS 9 6 TAS 410
Table 34. Summary of production volume, average price received and financial return for organic vegetable,
herb and nursery products reported by respondents.
Count Total Average Median Range
Volume (tonne) 235 4,608 20 1 0.001 – 1,409
Price ($/tonne) 233 9 4 0.7 – 500
Return ($/year) 233 6,427,793 27,587 4,350 16 – 800,000
Table 35. Annual production volume, average price received and returns for organic vegetable, herb and
nursery products, categorised by crop as reported by respondents.
Crop Total volume (tonne) Average price ($/kg) Return ($)
Root crops 2,998 3.00 333,387
Cucurbits 529 2.64 893,628
Greens 485 3.48 1,335,391
Alliums 179 2.69 387,244
Solanums 126 4.64
Herb 82 25.99 598,991
Legume 34 11.20 75,786
Mixed vegetables 30 5.19 116,099
Other 137 11.46 1,839,592
Flowers 4 Not reported
Nursery plants Not reported Not reported 847,671
very large number of smaller operators $6.4 million reported in the survey (or
and a small number of larger farms, an estimated $25.3 million nationally
yielding an average farm size of 14 by this survey’s standard multiplier) is
hectares and production volume of 35 a significant under-estimation of the
tonnes, compared with medians of 3 farm-gate value of organic vegetable
hectares and 1 tonne. production. Consultation with industry
confirmed that the estimate is unlikely
Sales figures to include a number of larger operations,
The financial data are based on 235 and expected wholesale and retail
indications of production volume sales are greater than the estimate.
and price from 86 respondents, 58% Therefore a larger multiplier was used
of the organic vegetable, herb and for vegetable production. It should be
nursery growers from the survey. noted that this larger multiplier remains
Given the small number of large considerably conservative according to
operators replying to the survey in some key industry sources (wholesalers
this important sector, it is assumed the and retailers).
Some growers used more than one
Table 36. Annual volume (tonne) and financial return ($) of market outlet, hence the higher n value
organic vegetable, herb and nursery production by State reported in Table 37.
by respondents.
State Annual volume (tonne) Annual return ($)
Attitudes
The expectations of organic vegetable,
NSW 343 1,085,414
herb and nursery producers were
QLD 483 1,475,397
generally very positive, with about
SA 65 259,154
40% expecting production to increase
TAS 2,076 1,253,760
and another quarter expecting it to
VIC 1,593 2,195,650
remain similar in the following year.
WA 48 158,414
Only 10% anticipated a decrease in
Table 37. Marketing outlets in organic vegetable, production, usually due to drought,
herb and nursery products. marketing limitations (e.g.“price is too
Market outlet Percentage of growers (n = 299) low”,“change in market requirements”),
Wholesale 50% staff constraints (“labour intensive”,
Farmers’ market 18% “staff away”) and crop protection issues
Retail 14% (“wildlife destroying crops”). On the
Retail, local 7% issue of drought, 37% of people making
Processor 7% comments about their enterprise
Supermarket 3% mentioned the impact of the drought,
Direct to public 1 2% compared with 50% for organic grain
1
Home delivery, mail order, roadside sale, orivate sale, box scheme growers. This difference is largely due to
the scale and location of the different
Table 38. Expected change in certified organic vegetable, herb and farming systems. The smaller scale
nursery production in the following year. horticultural properties have much
Change Total responses Percent of responses smaller areas to irrigate (though water
Significant increase 39 27 inputs per hectare are likely to be higher
Marginal increase 20 14 for a vegetable than a cereal crop) and
Remain similar 32 22 they are more likely to be located along
Marginal decrease 3 2 the eastern sea-board where rainfall has
Significant decrease 12 8 been more reliable than in many inland
Not reported 41 28 grain growing regions.

Organic profile
Nature’s Haven,
Don and Elaine Murray
Growing with industry
D
on and Elaine Murray run
Nature’s Haven, a larger organic
operation in the Coleambally
irrigation region of NSW. Through a
strong focus on the production of
vegetables naturally suited to local
climatic conditions, they’ve shaped
robust supply network relations by
ensuring a consistent supply of high
quality organic produce for large
volume orders. Initially focused on
zucchinis, the Murrays have diversified
to a fresh produce range that covers
snow, sugar-snap and shelling peas as
well as potatoes, leeks and pumpkins.
Supplying between 400 and 600
tonnes of produce each year the
Murrays are one of a growing number
of organic producers demonstrating Management) where natural predator Don and Elaine Murray are
the capacity of organic systems to cater insects are encouraged and protected among a growing number
to large-scale orders. They attribute for long-term insect control. The dry of organic producers
part of their success to their marketing climate results in low disease pressure demonstrating the capacity
approach. Sales and distribution are and the Murrays have noted a growth in of organic systems to cater
primarily co-ordinated through one the number and variety of all wildlife on to large-scale orders.
wholesaler in each Eastern State who the property.
on-sells product. To sustain profitable and viable
The Murrays began the certification operations organically in the future
process in 2002, and believe that soil they say strong overall industry growth
health is critical to productivity, quality will need to continue with full supply
and yield. “The property is comprised chain support.
of very sandy soils and was originally “At the moment our biggest problem
a potato farm with organic matter in the organic vegetable sector is
down to 0.05 per cent after 40 years of reliable markets. We could quite easily
intensive conventional management. over-supply the Australian market for
We’ve built that back up to about 2% a particular line of vegetables because
organic matter under our management the market is still developing and
and have noticed a significant decrease even with rapid growth represents
in ‘bald spots’ (areas where nothing only a small part of the vegetable
grows) and have increased water market overall. We limit our supply to
efficiency by 30%” says Don. “Most committed and predicted orders and
people now think the soil is a loam until so will rely on continuous development
they handle it and see how sandy it is”. of multiple product lines to remain
Pests are a minimal issue and are viable. It’s essential for growth that
controlled by maintaining a healthy supermarkets, retailers and wholesalers
eco-system using IPM (Integrated Pest are strategically co-ordinated”, says Don.

Fruit
(including coffee, olives, wine)
Total production encourage new or non-organic

Organic fruit growing was reported by farmers to convert some of their fruit
205 respondents and encompasses a production to organic. From the data
wide range of different fruits. For the shown in Table 41 however, it would
purpose of this report, wine grapes, appear that the organic domestic
olives and coffee were included in this market is also strong for many lines,
section. Due to the sheer geographical such as apples and citrus, which should
land mass of Australia and the different add further encouragement to existing
climates that go with it a huge array of and potential organic growers.
fruits can be grown all around Australia
and many lines grown all year round. Sales figures
This gives Australia a competitive The figures used here are derived from
advantage over other countries for a smaller set of responses than for
export sales and as the global organic the total production figures reported
market continues to grow this may in Table 39 (n = 174 rather than 206).
Table 39. Number of organic fruit producers responding to the survey, area under organic fruit production
and volume of organic fruit reported, categorised by crop.
Crop Grower Total production area (hectares) Total production volume (tonnes)
Apple 27 366 1,527
Grape, wine 29 4452 974
Tropical fruit 1
17 73 918
Orange 20 44 849
Olive 35 309 660
Strawberry 11 25 319
Grape, table 12 54 208
Other citrus 2
25 29 131
Other fruit 3 14 12 90
Banana 13 27 82
Mango 9 34 73
Apricot 11 5 36
Other stone fruit 4 18 42 32
Lemon 20 324 18
Blueberry 12 8 17
Other berry fruit 5
10 209 10
Peach 8 6 9
Kiwifruit 2 2 8
Pear 9 106 7
Plum 7 3 7
Coffee 3 1.1 0.5
Crops mentioned in the survey included: avocado, custard apple, durian, pawpaw, pineapple, rambutan; ; grapefruit, Kaffir lime, lime, mandarin;
1 2
3
melons, passionfruit, pepino; 4 cherry, nectarine; 5 blackberry, raspberry.

Table 40. Market outlets for organic fruit production.

Outlet % of total production (n = 206)
Domestic organic 59
Export organic 7
In-conversion 12
Conventional 19
On-farm use 2
Table 41. Number of organic fruit Table 42. Area (hectares) of organic
producer respondents (n = 206) fruit production reported by
categorised by State. respondents, categorised by State.
NSW 57 28 WA 1,950
VIC 50 24 QLD 1,311
WA 36 17 NSW 1,065
SA 23 11 VIC 992
QLD 22 11 SA 184
TAS 15 7 TAS 178
NT 2 1 NT 48
Not reported 1 0.5
Table 43. Summary of total production volume, average price received and financial return
for organic fruit products.
Volume (tonne) 2,339 13 1.5 0.09 – 370
Price ($/kg) 7.91 3.76 0.30 – 65.00
Return ($/year) 5,676,583 32,624 6,000 54 – 630,000

Table 44. Annual production volume, average price received and returns for organic fruit products,
categorised by crop, reported by respondents.
Crop Total volume (tonne) Average price ($/unit) Return ($)
Wine 46 27.41 1,101,181
Orange 618 2.43 764,206
Apple 825 1.91 714,836
Banana 118 4.33 494,750
Other berries 20 23.4 401,600
Blueberry 17 20.8 367,411
Citrus 109 2.85 338,041
Olive oil 23 18.83 218,917
Grapes, wine 181 11.07 135,164
Strawberry 16 9.88 128,842
Melons 67 1.73 105,634
Olive 81 1.3 105,300
Lemon 28 2.97 99,027
Avocado 23 4.73 88,964
Cherry 6 16.33 70,000
Mandarin 21 3.3 69,300
Mango 19 3.49 53,500
Berries 2 24.25 52,800
Apricot 12 5.43 47,485
Peach 6 5.47 38,891
Rockmelon 19 1.97 36,859
Grapes, dried 7 10.68 32,800
Tropical fruit 6 4.67 28,000
Grapes 20 2.88 27,782
Other citrus 23 2.08 27,730
Lime 7 3.3 22,620
Blackberry 1.2 16.67 20,000
Coffee 0.5 36 18,000
Table grapes 4 3 13,020
Pear 3 4.27 12,404
Plum 3 3.22 12,347
Raspberry 2 4.7 11,000
Other fruit 1 10 10,000
Nectarine 2 2.3 3,500
Currants 0.1 11.5 1,600
Kiwifruit 0.2 6 900
Passionfruit 0.6 1.82 863
Fruits 0.2 3.5 700
Custard apples 0.1 2.94 350
Pineapple 0.1 2 260

The reported return for organic fruit Table 45. Annual volume (tonne) and financial return ($) of organic
production was $5.7 million. However, fruit production of respondents by State.
based on industry estimates of State Annual volume (tonne) Financial return ($)
horticultural production, it is apparent
NSW 892,884 1,146,712
that the results are skewed towards
smaller producers, leading to an under- WA 635,720 1,246,158
estimation of the farm-gate value of VIC 448,353 847,853
organic production. Therefore a larger QLD 97,951 519,312
multiplier was used for fruit production TAS 78,149 320,906
and based on separate information
SA 41,798 155,418
from within industry.
As Table 44 shows, of all the products NT 7,500 40,000
made from fruit, wine has the highest
gross return based on survey responses. Table 46. Marketing outlets for certified organic fruit products.
The organic wine market is one to
watch over the next few years and sales Market outlet Percentage of growers (n = 174)
are likely to increase significantly as Wholesale 44%
organic wine becomes more popular Retail 27%
not only domestically but also overseas Direct to public 1
10%
in areas such as Europe.
Processor 10%
Organic fruit production is
predominantly located in NSW, WA and Farmers’ market 9%
VIC (Table 45) while the highest level of Export 1%
financial returns show a similar pattern. 1
Home delivery, roadside sale, private sale, box scheme, mail order
Almost half of all certified organic
fruit is sold through the wholesale
markets, with just over one quarter
About 20% expected a marginal or
going directly into retail outlets and
significant decrease in production level
about 10% each sold through direct over the next year. However, most fruit
sales, sales to processing companies growers were optimistic, with about
and sales at farmers’ markets (Table 46). one third expecting their farms to
maintain a similar level of production
Attitudes into next year, and about half of all
Organic fruit producers were affected fruit growers expecting production to
by drought, with some growers increase, with one third expecting a
reporting the need to remove trees. significant increase.
Table 47. Expected change in certified organic fruit production in the following
year (n = 55).
Change Total responses Percent of responses

Organic small growers’ profile
Hugh Charlesworth, WA
Small growers primarily produce organic fruit, vegetables
and herbs for sale to local markets or on recreational and
hobby farms.
He sells a small amount of dried herbs

(thyme, peppermint, mint and oregano)
through the WA Herb Growers Network.
He grows fresh produce for personal
pleasure and self-sufficiency - providing
excess to neighbours and community
groups - and experiments on a small
scale with developing best practise
organic system techniques.
“I’ve been farming all my life and I’ve
become somewhat obsessive about soil
fertility and how important it is to what
you grow. Soil micro-nutrients are the
key to good health” he says.
Methods trialled include companion
planting – “growing flowering garlic
between cabbage rows for example”.
He is also investigating the use of
natural bacteria and herbal sprays for
insect control, creates his own compost
formulations, and focuses on cultivation
methods for deep fertile soil.
Machinery use is kept to a minimum
to decrease the level of soil surface
disturbance, and mulch use is limited to
keep bugs and beetles at bay.
Hugh says he gained organic
certification to ensure discipline within
his operation for meeting benchmark
H
Hugh Charlesworth, ugh Charlesworth is a certified industry standards.
Narrogin, WA, grows fresh small producer, and has grown His efforts have paid off under formal
produce for personal a diverse range of organic soil testing results. “I’ve had a number of
pleasure and self- crops on half an acre in WA in Narrogin different companies and departments
sufficiency, experimenting (200km south east of Perth) for the past test the soil here and they say it is at
on a small scale with ten years. one of the highest standards they’ve
developing best practise In an area characterised by poor soil seen” says Hugh, who believes many of
organic system techniques. health, Hugh yields everything from his methods can be applied to larger
nuts, herbs, lettuce, avocadoes and operations.
vegetables, and manages thirty fruit He says farm succession is a critical issue
trees including stone fruit, citrus, apples for the organic industry in the future.
and pears. “There needs to be enough interest
At age seventy-five he works full- and knowledge amongst a new
time on the farm. His primary source generation of farmers to realise the full
of income comes from other avenues. potential of biological farming”.

Nuts
Total production
27 organic nut growers responded to
the survey with macadamia being the
most commonly grown nut followed by
walnut. According to the survey and as
shown in Table 52, macadamia, walnut
and pistachio are produced and more
sold into the export market compared
with the other types of nuts listed, of
which a higher percentage are sold into
the domestic market.
Sales figures
Only 8 of the 27 organic nut growers
reported their productivity and
financial returns, with some providing
such data for more than one nut crop
(Table 52). A total of 68 tonnes of
nuts were reported sold for a return
of $481,352, averaging about $11/kg.
Most nut growers reported selling their
Table 48. Summary of the area and volume of organic nut production reported.
Total area (hectares) 204 10 1 0 – 80
Total volume (kg) 131,340 9,167 1,100 20 – 45,000
Sold as domestic organic (kg) 76,208 8,206 900 0 – 35,000
Sold as export organic (kg) 33,000 10,750 10,750 0 – 22,000
Sold as in-conversion (kg) 10,378 1,782 1,875 0 – 6,000
Sold as conventional (kg) 10,520 3,507 500 0 – 10,000
On-farm use (kg) 800 90 50 0 – 500
Table 49. Number of organic nut producers responding to the survey, area under organic nut production and
volume of organic nuts reported, categorised by crop.
Crop Growers Total production Total production Domestic organic volume
area (hectares) volume (tonnes) (% of total)
Macadamia 10 43 60,210 40
Almond 2 80 45,000 78
Pecan 5 36 12,930 97
Walnut 6 40 7,210 9
Chestnut 5 3.65 4,300 72
Pistachio 2 1.53 1,540 49
Hazelnut 2 Not reported 150 100

produce through retail outlets, with in production rather than a decrease

about half supplying wholesalers, and a (Table 53). Comments were received
minority selling to processors or directly from 17 of the 27 nut growers. The key
to the public. constraint to production was drought,
although low prices and difficulty in
Attitudes finding market outlets for organic nuts
The outlook amongst organic nut were also cited by a number of growers.
growers was mixed, with slightly more City markets were reported to provide
respondents expecting an increase better returns.
Table 50. Number of organic nut Table 51. Area (hectares) of certified
producer respondents (n = 29) organic nut production reported
categorised by State. categorised by State.

NSW 12 44 NSW 303
VIC 6 22 VIC 226
WA 3 11 WA 197
QLD 2 7 QLD 34
SA 2 7 TAS 24
TAS 2 7 SA 23
Table 52. Annual production volume, average price received and returns reported for organic nut products,
categorised by crop.
Crop Growers Total volume (kg) Average price ($/unit) Return ($)
Macadamia 4 15,100 19.25 273,700
Almond 1 45,000 2.20 99,000
Pecan 1 6,000 16.00 96,000
Pistachio 1 750 12.00 9,000
Walnut 3 790 4.80 3,352
Chestnut 1 100 3.00 300
Table 53. Expected change in certified organic nut production in the following
year (n = 27).
Expected change Total responses Percent of responses
Remain similar 3 11
Not reported 9 33

Essential oils
Production and sales very little production using European
A total of nine respondents reported species reported. There was generally
producing organic essential oils across an inverse relationship between volume
an area of just over 1,000 hectares. and price (Table 55).
More than half was exported as
certified organic, about one third Attitudes
sold domestically as organic and only Essential oil producers were positive or
2.4% sold into conventional markets neutral about the short-term outlook
(Table 54). The estimate of farm-gate for their enterprise. Five out of nine
value of essential oils within Australia expected an increase in production,
in this report is under-representative three expected conditions to remain
of the retail market value considering similar, while no respondents expected
the significant volume of imported a decrease and one did not comment.
essential oils into Australia. Drought was only an issue for the one
The total volume of organic essential grower producing oil in western NSW, all
oil produced was 8,917 kg, with an the other producers were located on the
average price of $437 (median price higher rainfall parts of coastal northern
= $40/kg). The total financial return NSW and southern QLD. Otherwise,
reported was $123,839. Eucalyptus oils issues limiting production and sales
were the most commonly produced in this sector were a lack of resources
essential oil by a significant margin. It and money, damage to crops from feral
is noteworthy that the bulk of organic animals and the need to develop the
essential oils were produced from supply chain including value-adding and
native Australian plant species, with distribution by the producer.
Table 54. Summary of organic essential oil producers responding to the survey, area under organic
production and volume of organic essential oil reported.
Total (n = 9) Average Median Range
Production area (hectares) 1043.5 116 7 2 – 988
Volume produced (kg) 814.4 116 35 1.4 – 500
Volume sold as organic (kg) 272 68 35 2 – 200
Volume exported as organic (kg) 541 180 35 6 – 500
Volume sold as conventional (kg) 19.4 9.7 9.7 1.4 – 18
Table 55. Volume and financial return of organic essential oil production reported by species of plant
extracted. Some respondents sold more than one species of essential oil.
Count Volume (kg) Volume (%) Return ($/year) Return (%) Price ($/kg)
Eucalyptus oil 1 8,000 90 75,800 61 10
Tea tree oil 6 661 7 26,724 22 48
Rosalina oil 1 120 1 10,800 9 90
Lemon myrtle oil 2 70 1 965 1 13
Lemon-scented tea tree oil 1 50 1 6,000 5 120
Rosemary oil 1 15 0.2 2,250 2 150
Melissa oil 1 0.3 0.003 1,300 1 5,000

Organic profile
Sydney Essential Oil Co. (SEOC)

New energy in organic cosmetics
S
ydney Essential Oil Co. (SEOC) Business Development Manager, says
operates within a niche category continued formulation discovery is
in both the organic and beauty critical to sector growth.
sectors. Primarily business-to-business “Most commonly, manufacturers
wholesalers of certified ingredients want to know if they can source organic
allowed for use in organic cosmetics, alternative ingredients with a particular
spa and skin-care products, they have function (e.g. a natural substitute
worked hard to stake a competitive for emulsification and preservative
position in the natural health and processes) and a lot of the time the
beauty category. This is in the face of answer will be no. We’re working
challenges meeting new and stricter towards changing that through our
standards for raising the bar on the own R&D and adding to our raw
integrity of products. materials list to create ingredients that
“In the marketing driven, mass market, fully comply with the current organic
luxury cosmetic sectors, there are few standards”, says David.
authentic and certified green, natural The business has grown its organic
or organic products, and unfortunately line from 8% of key product groups
many unregulated label claims. Our in 2003, to 28% in 2006, with a target
success is driven by our transparency – increase to reach of 40% in 2008.
if we say an ingredient is organic, it is”, Sales are currently focused on
says SEOC Marketing Manager, essential and carrier oils, as well as
Eliza McGivern. cosmetic bases, extracts and hydrosols.
SEOC have taken a leading role in Primary customers are sourced from
developing the certified cosmetic the aromatherapy, massage and spa
industry, previously constrained by a sectors, therapists and natural clinics,
limited supply of compliant ingredients. independent boutique outlets, and
The company holds stock in commercial cosmetic manufacturers.
their Sydney ware-house to ensure The company also plays an active role
customers rapid delivery of all products, in educating consumers on the benefits
They are persisting working of organic. “Plant based ingredients
on the creation of organic and oils grown without the support
formulations for cosmetic of artificial inputs that are naturally
bases for manufacturers. robust, display a noticeable difference
David Johnson, aromatically, and are more vibrant
Operations and and energetically stronger products”,
says Eliza.
Obstacles to SEOC’s growth include
unregulated use of the word “organic”
under current cosmetic labelling
requirements; competition from un-
certified products; and fluctuating
availability of organic raw ingredients.
“If the certified organic labelling
requirements were integrated into
cosmetic guidelines it would be ideal”,
says Eliza.

Grains, pulses,
fibres and
oil crops
Total production
The area reported for grain production
was 12,180 hectares. This represents 30%
of the land owned by the 55 farmers
growing grain and related products
such as hay, legumes (pulses), oilseed
crops and fibre crops (Table 56). The
average reported area used for grain
production was about 1,140 hectares,
with a median of 604 hectares. The total
volume of grains produced was 3,620
tonnes. Wheat is the most common
cereal grain, accounting for half of the
grains produced and soybean the most
commonly grown legume. Almost 500
tonnes of grains (including hay) were
produced for stock feed.
Two producers reported growing
sugar cane, whilst there were no
Table 56. Number of organic grain producers responding to the survey, area under organic grain production
and volume of organic grain reported, categorised by crop type.
Production area (hectares) Volume produced (kg)
Crop Growers Total Average Total Average Sold as organic
Wheat 21 6,520 310 2,593 137 84%
Oats, feed 13 1,393 107 181 26 98%
Other feed 2
9 900 100 163 23 100%
Barley, feed 8 806 101 133 22 2%
Oats 8 441 55 201 40 100%
Soybean 9 427 47 342 43 32%
Barley 5 397 79 None reported
Other grains 1 8 287 36 5 1.3 100%
Other legumes 3 6 232 39 160 32 41%
Lupins 3 221 74 18 9 100%
Rye 2 207 104 31 16 100%
Sunflower, safflower 4 153 38 20 7 100%
Field peas 4 127 32 0.4 0.2 100%
Other oilseeds 4
4 59 15 10 5 100%
Sugar cane 2 10 5 160 160 80%
1
linseed, millet, spelt; 2 hay, millet, sorghum, triticale, 3 chickpea, lentil, lucerne, peanut, 4 linseed

respondents who reported growing Table 57. Number of organic grain

organic cotton, hemp or other crop for producers respondents (n = 57)
fibre production. categorised by States.
Most of the organic grain growers State Total %
were located in the eastern mainland
NSW 22 39
states, especially NSW (Table 57) largely
reflecting the usual location for grain QLD 12 21
producers in Australia. VIC 12 21
Organic grain production was found SA 4 7
to be mainly located in NSW and QLD TAS 3 5
(Table 58).
WA 3 5
Value of organic Unknown 1 2
grain production
About $1.8 million worth of organic
grains were reported to have been sold Table 58. Area (hectares) of organic
during FY06-07 (n = 30) with the bulk of grain production reported categorised
that income being earned from wheat by State.
(about half ) and soybean growers State Area (hectares)
(about one third) (Table 59). The lower NSW 20,228
response rate required additional
QLD 9,589
cross checking with industry sources
in relation to making final estimates VIC 4,116
for this sector, which otherwise is SA 3,869
considerably under-reported and WA 1,628
therefore under-estimated. TAS 144
Prices received for certified organic
Unknown 809
grains varied considerably depending
Table 59. Value of financial returns reported by organic grain, legume and oilseed
crop producers ($ in previous financial year).
Crop Return ($) Proportion of all returns from grains (%)
Wheat 887,438 49
Soybean 587,495 32
Millet 151,600 8
Sorghum 47,486 3
Chickpea 34,178 2
Barley 33,768 2
Linseed 28,350 2
Rye 14,300 0.8
Sunflower 11,194 0.6
Hay 8,900 0.5
Silage 6,400 0.4
Spelt 1,750 0.1
Oats 1,750 0.1
Triticale 650 0.04

on the crop. Grains for stock feed or impact of the drought in the section on
other lower value uses were usually constraints to developing their organic
under $400/tonne, common cereals for grains enterprise (78% of comments
human consumption slightly higher involved drought) as well as in the
and grain legumes higher still. The high general comments section.
price reported for oats is based on one Despite the difficulties caused by
response from Tasmania where the the dry conditions, more organic grain
produce was sold directly to growers were expecting an increase on
the consumer. production in the following year (25%)
than those expecting a decrease (16%),
Attitudes with about one third of respondents
The impact of the drought leading expecting the situation to remain
up to and including the 2007 winter similar. The increasing world prices
season was a significant factor affecting received for staple commodities such as
the planting and yields of broad-acre wheat and grain legumes is presumably
crops in many regions. Numerous lifting grower expectations.
survey respondents mentioned the
Table 60. Average prices reported by organic grain, legume and oilseed crop
producers ($/tonne).
Crop Average price ($/tonne)
Linseed 2,940
Oats 1,750
Spelt 1,750
Silage 1,280
Soybean 947
Millet 600
Rye 530
Wheat 453
Triticale 360
Sorghum 350
Lucerne 320
Hay 250
Barley 245
Table 61. Expected change in certified organic grain production in the

following year.
Expected change in production Total %
Not reported 16 28

Organic profile
Country Heritage Feeds

Nurturing the growing organic livestock industry sector
C
ountry Heritage Feeds (CHF) adequate raw material supplies”,
supply high quality animal feeds, says Katrina.
supplements and stockfeed Even though the family-owned farms
concentrates produced at their use stockfeed produced from their feed
certified stockfeed mill 10 minutes mill, CHF’s primary aim is to provide
north of Toowoomba. an essential supply of high quality
Beginning as one branch of a diverse animal nutrition to the wider organic
conventional and organic family-owned livestock sector.
agri-business, CHF was established by Organic stockfeed operations have
CEO Katrina Hobbs in 1998 to create expanded significantly since CHF began
efficiencies and an integrated approach in 1998 and now 95% of all production
to organic livestock production. is certified organic. When the business
The family agri-business currently first started, organic manufacture of
manages 16,500 acres of certified stock feeds only amounted to 5% of
organic cropping and livestock all production.
production. An additional 9,000 acres Katrina said that she was attracted
of premium grazing and cropping to the organic industry because it
land has recently been purchased, and represented a niche market opportunity;
plans are under way to gain organic ideal for a family-owned business, and
certification for this property as well. the organic industry’s ideals were greatly
The family business also pioneered, needed in a mature market.
and continues to maintain a strong “Going organic was a strategic
presence in other horticultural industry decision to get behind a developing
(fruit and vegetable) ventures on industry sector and over time we have
several other Queensland properties. seen enough market demand to be
While the overall family business economically viable,” she said.
is somewhat vertically integrated, “The industry also has sustainable
the majority of grain and other ideals that mirror the direction we as a
Adrian & Katrina Hobbs raw materials used by CHF are still family agri-business want to move in. The
with children: Emily purchased from other certified organic family business incorporates elements of
(5 years) Brenton (3 years) farms throughout eastern Australia. organic management systems across its
and Corinne (10 months) “Drought has been a major obstacle entire business structure.“
in organic wheat crop, to our planned growth. One of the Katrina sees the development of
Moolan Downs farm. biggest hurdles is being able to source consistent, industry driven standards as
essential to a sound organic sector into
the future. “Certification standards need
to be realistic and pragmatic without
detracting from organic integrity
and aims. There’s a strong regulatory
environment out there demanding
various product assurances, and the
organic industry is no different from
any other food sector in terms of its
need for accreditation.” She said that
in return, organic operators will benefit
from increasing consumer demand for
naturally produced products.

Organic Market Report 2008: Australian

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Chapter 1

20 Australian Organic Market Report 2008

Number of certified organic operations

While producers still constitute 2000

Australian Organic Market Report 2008 21

“There remain currently 1000 NSW QLD

AQIS accredited small

15,000 TOTAL AREA

production and marketing (Figure 2). farming operations that remain at

22 Australian Organic Market Report 2008

Organic woman’s natural success

Australian Organic Market Report 2008 23

24 Australian Organic Market Report 2008

Australian Organic Market Report 2008 25

Number of organic enterprises

Table 2. Number of organic producers responding to the survey categorised

Category Respondents in 2007 (as a % Respondents in 2003 (as a %

Table 3. Number of organic enterprises responding to the survey

26 Australian Organic Market Report 2008

Certified organic land area

Table 4. Land area reported in the survey, categorised by organic status

Table 5. Certified organic, in-conversion and pre-certification land area reported

Total farm area (hectares)

Australian Organic Market Report 2008 27

The proportion of organic such as prime lambs and wool, and a

Table 6. Land area reported in the survey, categorised by commodity produced.

28 Australian Organic Market Report 2008

Years spent farming organically

such figures to flow through to more 40

Australian Organic Market Report 2008 29

Organic farm employment

Number of employees 1500

Table 7. Number of employees (including owner-operators) working in organic

Table 8. Education levels of employees (including owner-operators) in organic

30 Australian Organic Market Report 2008

Total farm-gate sales

Australian Organic Market Report 2008 31

for the major sectors. The national sales

32 Australian Organic Market Report 2008

Breeding stock Total Average Median Range

Australian Organic Market Report 2008 33

to a lack of demand from the organic and 7% through home killing or

Stores cattle Total Average Median Range

Finished cattle Total Average Median Range

34 Australian Organic Market Report 2008

again likely to be a conservatively received for finished cattle varied

Australian Organic Market Report 2008 35

CLEAVERS The Organic

36 Australian Organic Market Report 2008

Australian Organic Market Report 2008 37

38 Australian Organic Market Report 2008

Photo supplied by Organics for Rural Australia - ORA

Table 19. Size of sheep mobs managed on farms of respondents.

Total (kg) Average (kg) Median (kg) Range (kg)

Australian Organic Market Report 2008 39

OBE Beef – success in Australian

40 Australian Organic Market Report 2008

Organic Profile: Inglewood Farms

Australian Organic Market Report 2008 41

42 Australian Organic Market Report 2008

Australian Organic Market Report 2008 43

Milk and dairy products

“There remain currently 1000 NSW QLD