Organic Market Overview Andre Leu – Chairman Tim Marshall – Deputy Chairman Organic Federation of Australia, Chairman Andre Leu – Chairman Tim Marshall – Deputy Chairman Organic Federation of Australia, Chairman Organic Federation of Australia Organic Federation of Australia

World Overview 2 World Overview of Organic Markets Organic product sales continue to increase despite the global slowdown trade Market information from most countries showing a consistent trend of a dynamic and growing industry Asia is the fastest growing region in the world China and India are fuelling Asia’s growth Organic product sales continue to increase despite the global slowdown trade Market information from most countries showing a consistent trend of a dynamic and growing industry Asia is the fastest growing region in the world China and India are fuelling Asia’s growth

World Overview 3 World Overview of Organic Markets Worldwide organic market sales was 54.9 billion US dollars in 2009 Europe $26 billion USA $26.3 billion Asia $1 billion Australia $800 million Global organic sales were $15.2 billion in 1999 $33.2 billion in Source: Organic Monitor Worldwide organic market sales was 54.9 billion US dollars in 2009 Europe $26 billion USA $26.3 billion Asia $1 billion Australia $800 million Global organic sales were $15.2 billion in 1999 $33.2 billion in Source: Organic Monitor

World Overview 4 World Overview of Organic Markets million organic producers 37.2 million hectares of certified organic agricultural land 11 million hectares in 1999 The true figure would be more than double this as the majority of farmers using organic methods are not certified million organic producers 37.2 million hectares of certified organic agricultural land 11 million hectares in 1999 The true figure would be more than double this as the majority of farmers using organic methods are not certified.

World Overview 5 World Overview of Organic Markets million organic producers 35 million hectares of certified organic agricultural land in million organic producers 35 million hectares of certified organic agricultural land in 2008.

World Overview 6 World Overview of Organic Markets Certified organic wild collection – over 41 million hectares in – 31 million hectares Emerging as a major part of organic production and organic land use - certified for these activities The majority of these areas are in developing countries Finland, Brazil, Cameroon and India have the largest certified areas of wild collection Certified organic wild collection – over 41 million hectares in – 31 million hectares Emerging as a major part of organic production and organic land use - certified for these activities The majority of these areas are in developing countries Finland, Brazil, Cameroon and India have the largest certified areas of wild collection

World Overview 7 World Overview of Organic Markets The regions with the largest areas of organically managed agricultural land - Oceania (12.2 million hectares) Europe (9.3 million hectares) Latin America (8.6 million hectares) Asia (3.6 million hectares) North America (2.7 million hectares) Africa (1.0 million hectares) The regions with the largest areas of organically managed agricultural land - Oceania (12.2 million hectares) Europe (9.3 million hectares) Latin America (8.6 million hectares) Asia (3.6 million hectares) North America (2.7 million hectares) Africa (1.0 million hectares)

World Overview 8 World Overview of Organic Markets The countries with the most organic agricultural land Australia (12 million hectares) Argentina (4.4 million hectares) USA (1.9 million hectares) China (1.9 million hectares) India (1.2 million hectares) The countries with the most organic agricultural land Australia (12 million hectares) Argentina (4.4 million hectares) USA (1.9 million hectares) China (1.9 million hectares) India (1.2 million hectares)

World Overview 9 World Overview of Organic Markets The regions with the largest areas of organically managed agricultural land - Oceania (12.1 million hectares) Europe (8.2 million hectares) Latin America (8.1 million hectares). The countries with the most organic agricultural land Australia Argentina China The regions with the largest areas of organically managed agricultural land - Oceania (12.1 million hectares) Europe (8.2 million hectares) Latin America (8.1 million hectares). The countries with the most organic agricultural land Australia Argentina China.

World Overview 10 World Overview of Organic Markets The countries with certified organic sectors 160 countries collected certified organic data 86 countries collected certified organic data in The countries with certified organic sectors 160 countries collected certified organic data 86 countries collected certified organic data in 2000

World Overview 11 World Overview of Organic Markets Italy 2009 survey The average growth in organic foods has been at 7.5% per year since % increase in the sales of fresh fruit and vegetables 24.7% for eggs 7.5% bread 4.5% increase in beverage sales Italians bought 6.6% more organic packaged foods in 2009 an increase on 5.2% in Italy 2009 survey The average growth in organic foods has been at 7.5% per year since % increase in the sales of fresh fruit and vegetables 24.7% for eggs 7.5% bread 4.5% increase in beverage sales Italians bought 6.6% more organic packaged foods in 2009 an increase on 5.2% in 2008.

World Overview 12 World Overview of Organic Markets Italy The 2008 survey 20% increase in sales of fresh and processed fruit and vegetables baby food rose by 16% bread, pasta, rice and eggs by 14 % packaged organic products rose by 5.4 % in value. Sales of coffee, tea, biscuits and sweet snacks, however, dropped by 14%. Italy The 2008 survey 20% increase in sales of fresh and processed fruit and vegetables baby food rose by 16% bread, pasta, rice and eggs by 14 % packaged organic products rose by 5.4 % in value. Sales of coffee, tea, biscuits and sweet snacks, however, dropped by 14%.

World Overview 13 World Overview of Organic Markets Germany The first three quarters of 2009 Wholesale organic food trade 6 % growth to 628 million EUR The fresh segment grew by 6.2 % (395 million EUR) Groceries 5.6 % (233 million EUR), The first three quarters of 2008, 7.7 %.growth Source: Switzerland The Swiss organic market grew 7 % to billion Swiss francs in Germany The first three quarters of 2009 Wholesale organic food trade 6 % growth to 628 million EUR The fresh segment grew by 6.2 % (395 million EUR) Groceries 5.6 % (233 million EUR), The first three quarters of 2008, 7.7 %.growth Source: Switzerland The Swiss organic market grew 7 % to billion Swiss francs in 2009.

World Overview 14 World Overview of Organic Markets USA 2009 OTA survey Grew by 5.3% to reach $26.6 billion. Total U.S. conventional food sales grew by only 1.6% Organic food sales grew by 5.1% USA 2009 OTA survey Grew by 5.3% to reach $26.6 billion. Total U.S. conventional food sales grew by only 1.6% Organic food sales grew by 5.1%

World Overview 15 World Overview of Organic Markets USA Non-food organic sales (cosmetics, body care, fibre, clothes etc) grew by 9.1% Conventional non-food sales which had a 1% decline. Organic fruits and vegetables were 38 % of total organic food sales and were valued at $9.5 billion in 2009, up 11.4% from 2008 sales. USA Non-food organic sales (cosmetics, body care, fibre, clothes etc) grew by 9.1% Conventional non-food sales which had a 1% decline. Organic fruits and vegetables were 38 % of total organic food sales and were valued at $9.5 billion in 2009, up 11.4% from 2008 sales.

World Overview 16 World Overview of Organic Markets USA The 2008 OTA survey of U.S. sales of organic products reached $24.6 billion by the end of 2008 growing an impressive 17.1% over 2007 sales despite tough economic times. USA The 2008 OTA survey of U.S. sales of organic products reached $24.6 billion by the end of 2008 growing an impressive 17.1% over 2007 sales despite tough economic times.

World Overview 17 World Overview of Organic Markets China Organic Food Development Center (OFDC) estimates domestic sales of organic products at around $US 500 million. Organic certification organizations estimate that production will increase by 30 to 50 % in the coming years The exports of organic products could rise to 5 % of total food exports by Source: Organic monitor China Organic Food Development Center (OFDC) estimates domestic sales of organic products at around $US 500 million. Organic certification organizations estimate that production will increase by 30 to 50 % in the coming years The exports of organic products could rise to 5 % of total food exports by Source: Organic monitor

World Overview 18 World Overview of Organic Markets Peru Peru's exports of organic food rose by 13% in 2009 to US$225 milliom Organic coffee is the major revenue earner. Peru is the world's leading exporter of certified organic coffee beans. It also exports organic cocoa and bananas among other products. Source: Teatro Naturale Peru Peru's exports of organic food rose by 13% in 2009 to US$225 milliom Organic coffee is the major revenue earner. Peru is the world's leading exporter of certified organic coffee beans. It also exports organic cocoa and bananas among other products. Source: Teatro Naturale

World Overview 19 World Overview of Organic Markets Future Trends The rest of the world, particularly the Asia Pacific Region will grow rapidly as organic markets Future Trends The rest of the world, particularly the Asia Pacific Region will grow rapidly as organic markets

The Australian Organic Industry An Expanding Industry Worth approx $1 Billion at retail Compost Industry $400 Million Worth $ Billions to the Aus economy Key wholesalers and retailers state growing rapidly The number of organic farms increasing despite losing 20,000 non organic farms in the last decade Expanding opportunities for participants along the whole supply chain An Expanding Industry Worth approx $1 Billion at retail Compost Industry $400 Million Worth $ Billions to the Aus economy Key wholesalers and retailers state growing rapidly The number of organic farms increasing despite losing 20,000 non organic farms in the last decade Expanding opportunities for participants along the whole supply chain

The Australian Organic Industry Consumer research shows 61% of Australian main grocery buyers bought some organic products (Newspoll 2008) The main purchasers are the women with children- however all demographics purchased some Buy due of health, pesticide and environmental concerns Major impediment to increased purchases was lack of consistent supply Consumer research shows 61% of Australian main grocery buyers bought some organic products (Newspoll 2008) The main purchasers are the women with children- however all demographics purchased some Buy due of health, pesticide and environmental concerns Major impediment to increased purchases was lack of consistent supply

Survey of Australian Organic Market 2008 Download from organic eprints Main findings The organic vegetable and herb market was $77,133,516 The organic fruit & wine market was $34,059,498 The organic beef market was $31,640,544 The organic grains, pulses, fibres & oil crops market was $21,783,108 Download from organic eprints Main findings The organic vegetable and herb market was $77,133,516 The organic fruit & wine market was $34,059,498 The organic beef market was $31,640,544 The organic grains, pulses, fibres & oil crops market was $21,783,108

2008 Australian Survey Continued The organic poultry (meat) market was $18,256,226 The organic honey market was $16,624,010 The organic milk & dairy product market was $13,190,310 The organic lamb market was $9,134,314 The organic wool market was $5,211,667 The organic pork market was valued at $324,618 The organic poultry (meat) market was $18,256,226 The organic honey market was $16,624,010 The organic milk & dairy product market was $13,190,310 The organic lamb market was $9,134,314 The organic wool market was $5,211,667 The organic pork market was valued at $324,618

2008 Australian Survey Continued The organic nut market was $1,891,713 The organic poultry (eggs) market was $1,832,414 The organic essential oils production was $486,687 The organic nut market was $1,891,713 The organic poultry (eggs) market was $1,832,414 The organic essential oils production was $486,687

N Z Organic Report 2010 The total value of New Zealand’s domestic market for organic products has increased to 315 million NZ$, (175 million euros) with an additional 170 million NZ $ (94 million euros) of organic exports. New Zealand now has 1,145 certified organic farmers, producing on more than 124,000 hectares of land. The total value of New Zealand’s domestic market for organic products has increased to 315 million NZ$, (175 million euros) with an additional 170 million NZ $ (94 million euros) of organic exports. New Zealand now has 1,145 certified organic farmers, producing on more than 124,000 hectares of land.

Main Growth Areas (Australia) Meat and meat products Alcoholic beverages (wine, beer) Whole meals (ready to eat takeaway and restaurants) Kids food, especially prepared children's snacks Fibre products Cosmetics and body care products Meat and meat products Alcoholic beverages (wine, beer) Whole meals (ready to eat takeaway and restaurants) Kids food, especially prepared children's snacks Fibre products Cosmetics and body care products

Potential for Thailand Export to Australia Rice Seafood Vegetables in season (onion, Asian greens) Fibre products (cotton, alternative fibres) Coconut oil and essential oils Herbs and Spices Whole prepared meals Incoming ecotourism opportunity (Australian visitors to Thailand food producing areas) Main limiting factor: Quarantine restrictions Rice Seafood Vegetables in season (onion, Asian greens) Fibre products (cotton, alternative fibres) Coconut oil and essential oils Herbs and Spices Whole prepared meals Incoming ecotourism opportunity (Australian visitors to Thailand food producing areas) Main limiting factor: Quarantine restrictions

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