The annual Soil Associations “Organic Food & Farming Report 2001 ” has become one of the most important reports detailing the current market trends in the international organic industry. How does it effect Australia as a country and what worldwide trends can we observe in the organic food movement?
The report is bursting at the seams with information, which tells us much about the growth and trends within the industry.

“The global market for organic foods was estimated to be worth about $45 billion in 2000, (with the USA, Japan and EU dominating), derived from nearly 16 million hectares of organically managed land, (with Europe having the largest ratio of organic to non-organic farmlands).

The USA boasts the largest market for organic foods world wide, (over $15 billion in 2000, and reports a growth rate of over 20% a year) and accounts for almost one third of global sales.

The picture in Europe according to the report is that “ Consumer demand for organic food continues to flourish in Europe, with many countries reporting growth in excess of 15 % “

“The amount of organic farmland in Europe has risen to 3.6 million hectares and now accounts for nearly 3% of total agricultural land.”

“The UK market is the most important of all the markets in Europe, it grew 33 % during 2000- 2001, with sales of up to 802 million pounds, and remains the fastest growing organic market in Europe, reflecting continued consumer demand for environmentally sound agriculture and high quality food.”
Even though UK agriculture was devastated by the outbreak of foot & mouth disease , nevertheless, organically managed farmland in the UK increased by 33 per cent over the year, whilst land that has completed conversion to become fully organic increased by 133per cent to 240,000 hectares.”

The organic milk produced in UK increased form 32.5 million litres to 17 million litres, an increase of 115%…. Numerous dairy farmers began conversion in early 1999.

Germany is becoming the leading agricultural reformer and also has the largest retail market in Europe. It is aiming for 20% of its agricultural production to be organic by 2011, and has introduced a national Logo ( To unify the proliferation of certification groups). The development of organic food has also been bolstered by the appointment of Renate Kunast, a green MP, as Agricultural Minister.


Italy has not only more organically managed land than any other country in Europe but it also has one of the largest retail markets.

In the Netherlands although retial sales are growing, the amount of organically managed land has increased only slightly.

Austria, in 1998, had the highest percentage of organic farmers in the EU; this has now dropped, however, retail sales are increasing.

In Demark, organic milk accounts for 30% of all milk sales.

In Spain, organically managed land represents 10% of the EU total. It is an export oriented industry. The Domestic market is still constrained by weak distribution infrastructure and marketing.

The Canadian Government is developing a national organic standard and is increasing its funding for research & training, with 188,000ha now committed to organic farmland.

In the Asia Pacific region the second largest market for organic foods is in Japan (around $7.5 billion), where the government has also introduced national guidelines for organic standards (more in BFA journal #). Apparently the Chinese government is encouraging organic farming, and the Indian government is also planning to nationalize organic standards. (According to Reuters, the Indian moratorium on GMO cotton has been lifted). Thailand has declared that it will not hold biotechnological trails and that GMO’s have to be indicated on the labels. They are also introducing organic standards and a national organic logo.

Australia with 7.6 million hectare, accounts for almost half the world’s organic farmland.

Argentina, with 3 million hectares of organically managed farmland is second in size only to Australia.


Consumer profiles
I think it is useful for us here in Australia to look at the UK consumer profile. The report shows that regular organic shoppers spend twice as much money on each shopping trip as those who buy no organic products at all.

“During 2000-2001 three quarters of UK households made at least one organic household purchase, but 7% of consumers accounted for 61 per cent of the money spent.
Continuing a trend recorded in the previous year, more consumers purchased organic food in 2000-2001, buying more regularly and spending more each trip”.

“7% of committed organic buyers spend twice as much on their groceries (organic & non organic) as non-organic buyers, making them an attractive group for all retail chains.
Non – organic buyers lifestyle statements reflect a habit driven and price conscious group that is not concerned with healthy food.”

“With 75 % of households now making at least one organic purchase, future growth depends on those households increasing their purchases”.

“Organic food shoppers make 30% more shopping trips than the consumers who do not buy any organic foods (on average, 161 shopping trips a year). In fact the more committed consumers are to organics , the more frequently they go shopping”.

Supply Chain

The wholesale value of organic production within the UK fruit & vegetables continue to dominate, accounting for 29% of the total value.

The number of businesses licensed to process organic food rose to 1,675, an increase of 52%.

Supermarkets continue to procure fruit and vegetables predominately from overseas, an approach which is detrimental to long term sustainability of the local organic market share.

As economics scale dominates, the danger is that the centralised approach to food distribution will increasingly be extended to the organic sector.

The increase in some areas of UK organic market has a special resonance with Australia notably that farmers markets have proved to be an unprecedented success in the retailing of local food. The 345 farmers markets now in operation represent an increase of 115% in a year”. “They offer consumers direct contact with the producer, giving buyers a greater sense of trust and integrity in the product purchased “.

© Copyright 2001, Catriona Macmillan

Catriona Macmillan
Director Heaven & Earth Systems P/L & Organic Tucker
For 19 years an Advocate of Organic & Wholesome Foods

Professional History

• Publisher of the annual Organic Directory listing, now in its 5th year
• Writer on organic marketing & consumer issues for the two major certifiers
• Organiser of the annual Royal Easter Show Organic Products Exhibit
• Chair of the Organic Federation Promotions Committee
• Chair of RIRDC’s National Organic Conference Promotions & Sponsorship Committee
• Conference Manager for “The Organic Challenge- Unity through Diversity"
• Manager of the “Organic Federation of Australia Awards Night”
• Manager of the first Macrobiotic and Wholefoods store in Sydney, over 19 years ago
• Universal Organic Community Website www.universalorganics.com.au
• Facilitator of Organic, Environmental, Ecological and Advocacy Events. Clients include: Olympic Coordination Authority, Organic Federation Australia, Eco-Farms, Earth Food Store, Macro Wholefoods, Rural Industries Research & Development Corporation, Wholesome Gourmet Cooking School.