Our thanks to the BFA, Australia’s largest organic industry representative group, for an early edition of their report for 2003, of which excerpts are shown below.

Dr Andrew Monk, CEO of the Biological Farmers of Australia

The BFA this year publicized research suggesting the farm gate value of organic was less than had been guesstimated from past years. Farm gate is estimated to be some A$90M in 2002, exports (possibly down due to drought) at some A$40 M and domestic market value at retail level A$250M. The main point for the industry is that growth continued at between 10 - 30% PA depending on the sector. Beef, milk and horticulture were of particular note for growth, whilst some sectors (eg sugar) saw behind the scenes capacity building which will stand that sector well in terms of supply for the coming years.

There remain significant challenges nonetheless for some sectors in terms of consistent supply and quality to the customer specification. Until this gap is closed, some sectors will continue to be challenged and be limited in longer term growth capacity. The BFA will be playing an ongoing active role in assisting industry in this regard, in terms of better information systems, workshops focusing on trade issues, promotion of organic products and media which expands the audience for organics.

The more serious entry of both large supermarket chains, combined with the growth in local and independent markets, suggests a strong year ahead for growth for organics, and a greater exposure of organics to a widening audience.

"Demand is forecast to grow by 20% to 25% a year, while supply growth is forecast at little more than 10% to 15% a year"

The BFA has seen clear examples of this in a variety of areas. Take for example, the growth in organic beef exports.

"Exports have risen - with beef being an industry leader whilst horticulture leads the domestic market growth. Exports relative to our close trading partner New Zealand are still low, but with beef and grain leading out of the drought, exports are likely to catch up and take over NZ in the coming three years."

Suzi Moore, Public Relations Officer for the Biological Farmers of Australia.

WHERE THE GROWTH IS

Australian Certified Organic (ACO), which now certifies over half of all organic operations in Australia, absorbed two thirds of the net growth in primary producers in Australia converting into organic production for 2002, for the second year in a row. Some 300 farmers entered the organic industry in 2002, with 250 of these progressing certification with ACO. This suggests growth of 15% of farmer numbers for the organic industry each year for the past two years. This is whilst the growth in the market has been estimated at between 15-30 % - suggesting farmers are producing and selling more organic produce, despite the drought. The drought nonetheless has impacted upon the grains sector and will continue to do so throughout 2003.

There are estimated to be 2,100 organic farming operations within Australia, coming under the regulatory inspection system of one of the seven accredited certifiers currently operating in the country. Whilst organic farmers only represent some 1-1.5 % of existing primary producers in Australia today, all indications point to this figure undergoing a rapid phase of growth in coming years. According to research conducted by Government funded body, the Rural Industries Research and Development Corporation (RIRDC) going on current trends the industry is estimated to have 2500 farmers by 2005.

Overall, production and ultimate consumption of organic products is estimated at some 0.2 % of the current Australian domestic market for food products.

THE BIOLOGICAL FARMERS OF AUSTRALIA, IN REPRESENTING THE ORGANIC INDUSTRY, HAS ESTABLISHED A VISION FOR THE AUSTRALIAN ORGANIC INDUSTRY TO 2020.

BY 2020 BFA & THE ORGANIC INDUSTRY WILL HAVE:

10% of primary producer numbers certified organic in Australia. 10% of the gross value of food and fibre production in Australia. 10% of the retail food market within Australia. Played a leading role in seeing a 50 % reduction in 2001 levels of synthetic agrichemical use per tonne of product produced by conventional agriculture VISION FOR CERTIFIED NUMBERS IN INDUSTRY (% OF TOTAL PRIMARY PRODUCER NUMBERS)

2003 1.3% 2005 1.8% 2010 4% 2015 7% 2020 10%

GROSS VALUE CERTIFIED ORGANIC PRODUCTS (% OF AUSTRALIAN RETAIL DOLLAR)

2003 < 0.2% 2005 1% 2010 3% 2015 7% 2020 10%

HOW THIS VISION WILL BE ACHIEVED:

Extensive education and training of producers, processors and marketers in organic and biological and organic production systems. Extensive consumer education and promotion of naturally produced certified organic products. Building capacity for technical expertise within industry to regulate, develop and promote the industry, its practices and products. Extensive networking with and involvement of government, agribusiness and farming sectors which stand to gain from these trends and processes of change. Have your say regarding this vision for 2020. Either go to our website http://www.bfa.com.au or Mail to: PO Box 3404 Toowoomba, Queensland 4350 Fax to: Email: media Please mark attention: Organic Industry Vision 2020 Attention CEO of BFA.