Australia Organic Market Analysis

Australian Organic Food Industry

Analysis of the Australian organic food market indicates a need for greater quality in supply chains and retail establishments to enable widespread access to the country’s growing organic farming community. This would be a strong market to enter, although more educative marketing may be needed, it could still provide great profits in the long run.

Australia in General

The demographics of Australia are very similar to the United States with large percentage of population that is well-educated with middle-level income or more (2011 Census QuickStats: Australia).

Size of population: 2011 census - 21,507,717

GDP growth: 2.0% (2011 est.)

GDP per capita: $69,007

Consumer price index: September 2012 - 182.9 (Australia Consumer Price Index)

Foreign Direct Investments

Foreign direct investments (FDI) have increased by an average of 5.8 per cent per annum. The ratio of FDI to GDP is almost 36 per cent which is well above the average for comparable developed economies. The top four source countries were the United States, the United Kingdom, Japan and the Netherlands (Trade and Investment). Australia was ranked as the sixth most attractive destination in the world for FDI based on investors' confidence about future prospects for the Australian economy and business environment. Australia ranked second in the world for resilience of the economy to global economic cycles (Australian Trade Commission).

Organic Industry Background

The Australian Quarantine and Inspection Service is responsible for the organic inspection and certification system in collaboration with seven approved certifying organizations to ensure that buyers can be confident that certified produce was grown according to organic principles. In 2003 there were over 2340 certified organic operators in Australia including farmers, processors, exporters and retailers (Australia Dept. of Agriculture). In 2003, there were an estimated 1511 certified organic farms...