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Australian Organic Agriculture Market to Become Export-Oriented

The RNCOS report says that the rapid increase in overseas demand, mandatory certification and labeling requirements will drive the growth of the Australian organic industry in future.

Delhi, India, November 28, 2007 --( RNCOS has recently released its market research report “Australian Organic Agriculture - Industry Analysis” to throw light on the Australian organic agriculture market. As per the report, the Australian organic food industry is anticipated to move ahead at a CAGR of about 25% during the period 2007-2011.

Owing to the labeling requirements and obligatory certification, Australia has got the international recognition as the dealer of authentic organic products, transforming its primary markets for the export of Australian organic products over years. During the early 2000, Europe accounted for 70% of the exports of Australian organic foods while countries like Singapore, Hong Kong, USA and Japan were emerging as its prospective markets. The BSA updated that by 2010, Australia would have 5% share of the worldwide organic exports making it an AUD 1.2 Billion industry.

The report updates that the growth of Australian agriculture in future is also likely to be driven by the export markets rather than the relatively undersized domestic market. It further says that rapid increase in overseas demand has boosted the growth of the Australian organic industry.

The RNCOS study says that the thrust in the recognition of organic food in Australia is also led by the renewed interest demonstrated by key supermarket chains. However, health food shops and specialty stores continue to be the primary market outlets for the organic foods. Services like home delivery are also experiencing increased popularity in many capital cities.

But the report also counts some challenges for the Australian organic agriculture market, including tariffs and import quota barriers, negative impact of vital trade-related factors over the food and agricultural sector, global market environment, technical and quarantine necessities like preservation of market image and global competitiveness, and decisions related to biosecurity in Australia and other places influencing the exports and imports.

However, the research identifies inconsistent supply as one of the major deterring factor to the growth of Australian organic industry. But at the same time, cooperation among farmers could assist to exploit the market prospects, boost sales volume and improve the marketing and distribution competency.

“Australian Organic Agriculture - Industry Analysis” provides an in-depth analysis of the Australian organic industry covering various parameters of the market like past performance and future outlook while discussing the key opportunities and challenges for the market.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.

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Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92

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