Australia: Organic farming to soar in 2013

Summary

An analysis by IBIS World predicts that organic farming is one of the top five Australian “industries to fly” in 2013. The value of revenue from organic farming is predicted to grow by 12.5%, and to rise from AU$549 million in 2012, to AU$617 million in 2013 (€434 m to €488 m). Of the five proposed high fliers, organic farming is forecast to grow slower than oil and gas production (15.9%), but faster than the other three high fliers: online education (10.5% growth), online shopping (9.1%) and apartment and townhouse construction (9.0%). Karen Dobie, General Manager of IBISWorld (Australia), said that “Consumers are becoming increasingly eco and health conscious. This means they are more willing to pay a premium price to prevent environmental degradation caused by conventional farming methods and to ensure the products they consume are free from added chemicals and hormones”. Food retailing is dominated in Australia by two supermarket chains which are both actively increasing their organic offering. Dobie stated that “Major retailers, such as Coles and Woolworths, continue to respond to this trend, increasing the convenience in which these foods are purchased”.
Australian incomes are predicted to rise by 3.4% in 2013, and Dobie sees this as an important factor driving up demand for organic products: “As Australian incomes rise, we are seeing consumers move away from conventionally farmed produce towards natural, chemical-free and hormone-free counterparts.” The IBISWorld 2012 report on Organic Farming in Australia had already identified organic agriculture as “a blossoming industry” and proposed that "the industry will continue to grow strongly over the next five years” and predicting revenues to rise 10.3% per annum over that period.