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An Overview of the Organic Food Products Market in Australia

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  • Chang, Hui-Shung (Christie)
  • Griffith, Garry R.
  • Zepeda, Lydia
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    Abstract

    Worldwide, the demand for organic food products appears to have expanded quickly in recent years, stimulated by consumer perceptions that organic products are safe, clean and ethical. The growth rate was estimated to be around 10-20 per cent per annum in the next few years, with sales reaching $US 29-31 billion in 2005. The biggest growth in consumption has occurred in developed countries, such as the United States, Western Europe, and Japan that are also major importers of organic foods. It is clear that Australia, traditionally a major exporter of agricultural products, stands to benefit from the expansion in demand for organic products. The objective of this paper is to provide an overview of the Australian organic food products industry, including production, marketing and certification of organic foods, with the aim of assessing whether the opportunity presented in the world market will be able to be taken. Major issues facing the Australian organic industry are discussed and areas for future research are identified. Production issues include the small production base and conversion to organic farming, while marketing issues focus on prices and product integrity. When applicable, market situations for organics in Europe and the United States are also reviewed to serve as a reference point for comparison.

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    Bibliographic Info

    Paper provided by University of New England, School of Economics in its series Working Papers with number 12928.

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    Date of creation: 2003
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    Handle: RePEc:ags:uneewp:12928

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    Web page: http://www.une.edu.au/economics/
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    Keywords: Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Marketing;

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    1. Gary D. Thompson, 1998. "Consumer Demand for Organic Foods: What We Know and What We Need to Know," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1113-1118.
    2. Marshall, Graham R., 1993. "Organic farming in Australia: An economist's perspective," Conference Papers 9676, University of New England, Institute for Rural Futures.
    3. Greene, Catherine R. & Kremen, Amy, 2003. "U.S. Organic Farming In 2000-2001: Adoption Of Certified Systems," Agricultural Information Bulletins 33769, United States Department of Agriculture, Economic Research Service.
    4. Karen Klonsky & Laura Tourte, 1998. "Organic Agricultural Production in the United States: Debates and Directions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1119-1124.
    5. Klonsky, Karen & Tourte, Laura & Thompson, Gary D. & Lohr, Luanne & Krissoff, Barry, 1998. "Emergence Of U.S. Organic Agriculture: Can We Compete?," Faculty Series 16704, University of Georgia, Department of Agricultural and Applied Economics.
    6. Marshall, Graham R., 1991. "Organic Farming: Should Government Give it More Technical Support?," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 59(03), December.
    7. Luanne Lohr, 1998. "Implications of Organic Certification for Market Structure and Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1125-1129.
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