The study was primarily a desk study, but was also able to draw on findings from another in-market analysis that was in progress. The related analysis included field research in key markets in Asia, Europe and the United States of America (US). The resulting report concludes that for nearly all organic products, in virtually all the developed economies, demand outstrips supply.

Also, the market potential for Australian organic products are likely to be greater in markets where:

• Australia is a globally competitive producer of the standard product category
• Australia has a greater reputation regarding capability and integrity in the supply chain
• Australia has seasonal products in a unique window of opportunity
• Australia has unique or differentiated products
• Australia has geographic proximity to the market (particularly in the case of perishable products.

Demand for organic foods is being driven by:

• growing consumer concern about chemicals in food and the environment
• health consciousness
• specific dietary and allergy conditions
• the perception of organic tasting better
• the desire to get ‘back to basics’.

In terms of identifying market prospects, the report concludes that the key driving factors of demand are:- population; consumer affluence and sophistication; degree of environmental and health consciousness; the safety and integrity of local food supply; and the availability of a local organic industry supply chain.

The key constraints to the growth of the Australian organic export industry are:- lack of consistent product supply and year-round availability; the price premium, poor eye appeal and shelf presence; inconsistency of product quality; short shelf life; distance to market; and lack of consumer confidence in the authenticity of labels.

Demand for organics is more likely to be stronger for products within the following parameters:

• those which have heavy use of chemicals in their conventional production systems
• products eaten with a minimum of preparation
• products which have a distinct taste profile and are eaten for enjoyment
• products for infants and growing children
• products eaten primarily for their nutritional attributes.

The report concludes that the higher prospect markets for Australian organic exports are Japan,
Continental Europe, the United Kingdom (UK), the US and Southeast Asia. In the longer term, China, Taiwan and South Korea will also emerge as growth markets.

In terms of product categories, the best prospects for Australia are likely to be in beef and lamb, cereal based products, processed foods, juices, beverages, wine, jam, honey and condiments.

Prospects for perishable products, such as fruit, vegetables and dairy products, are judged to be confined to closer markets, such as Southeast Asia.

The new knowledge generated from this study will be critical to anyone contemplating the export
potential of Australian organic agriculture.

s Site map Contact us Feedback Links Disclaimer Privacy Statement