Note: Don't miss out on the essential read at the end of this newsletter to complete your organic advantage!
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Lack of comprehensive statistics and data for the Australian organic sector has been a serious obstacle to organic stakeholders, organic business expansion, and the industry's sustainable and integrated growth.

It's one reason why BFA is thrilled to announce the Australian Organic Market Report 2008 - one of few research documents which will specifically address the deficiency of data in Australia - is on its way.

The last major report was in 2004 (published by the Department of Agriculture, Fisheries and Forestry). The coming 2008 document builds on the strengths of previous reports, while expanding the scope and detail to enable industry to benchmark its growth. An all-essential guide for anyone involved with organics, the report will give organic business people, be they farmers, processors or marketers, the tools to plan for growth into the future.

The market report will provide an overview of organic production, processing and marketing values by sector and state, give statistics on specific aspects of organic commodity production (eg. number of organic operators, length of operation, operation costs and constraints) as well as retail value estimates, trends in retail spending, case studies of leading examples of operators and more.

While being supported via the communication and client networks of seven of the industry’s eight certification agencies, along with BFA’s own industry networks, the report has the benefit of backing from Victorian, Tasmanian and Queensland Governments, together with private sector support from Westpac banking corporation.

To receive your copy keep watch for updates in the next edition of The Organic Advantage and on the BFA website www.bfa.com.au, or become a BFA member to automatically receive this, and other trade and industry publications.

Be a part of the Australian organic industry’s most definitive research to date.
Industry sponsorships are now formally open for a strictly three week period on a “first come, first served” basis, with sponsorships having an exclusive nature and offering value-added opportunities for promotion.

For information click here or contact the BFA office on 07 3350 5716 marketing@bfa.com.au for further information.

Global Organic Growth – an update by Dr Ajay Shah

Demand for organic foods continues to grow, reflecting accelerating rates of new product activity.  Organic remains the fastest growing sector of the food industry.  There were over 2,900 global organic food and drink launches recorded in the Innova Database (www.innovadatabase.com) in the first ten months of 2007, up from just over 2,600 in the January to October 2006 period. This was up in turn was up from 1,919 in the first 10 months of 2005.

“The global market for organic foods is valued at about US$40bn a year, more than double the 2000 total.”

The market is currently still highly geographically concentrated, however, with North America and Western Europe accounting for over 90% of global market value.

The UK has one of the largest markets in Europe, thanks to a series of nightmarish food scares, although estimates of its size vary from just over GB £1bn to nearly £2bn, depending on the definition and extent of coverage of alternative retail channels. 

Fresh produce traditionally dominated the market, but has now been overtaken by dairy products, where sales of organic lines now stand at about £300m a year. 

Sales in organic food in the UK increased by over 30% in 2005 to almost £1.6bn, an average weekly gain of £7m according to the UK Soil Association (British Certifying Body).  For comparison, the current annual growth of all UK food and drink sales is around 3%. The UK may have one of the largest markets in Europe, but it trails well behind the US in terms of sheer size.

 “US sales of organic foods are expected to reach US$20bn in 2007, equivalent to over 3% of total retail food sales.”  

Fresh produce accounts for a leading share of the market, with about one quarter of the total value, but processed foods are demonstrating a better growth rate, reflecting the rising demand for convenience organic alternatives to standard lines.  Organic dairy lines are less significant in terms of their market share than in Europe, with about 10% of the market.

In both countries, the market is being extended via the addition of organic products to standard brand lines of food and through the launch of specialist organic brands both by mainstream and specialist food companies. This has been critical to the overall expansion of organics.

The largest increases in organic food production have been in Asia, Africa and Latin America.  All three regions have reported triple digit growth figures in organic farmland since 2000.  Japan and Singapore are emerging markets projected to show rapid growth rates.

The Australian organic food industry has experienced strong growth as the number of certified organic operators increased 200% between the period 2000 to 2003 from 850 to 2,500. 

Produce is not all sold on the Australian market, but approximately 40% is destined for export.  Demand for organic food has grown over the past 5 years but is unable to mirror the growth of the UK, where food safety incidents have driven the desire for more naturally produced products.  Australia’s clean and green image will stymie the growth of the organic sector at home.

The prospects for organic food and drink are looking very bright globally and are expected to increase in retail sales value by 50% over the next 5 years.  The key factors that need to be considered are the ethical or health impulses of consumers that drive this growth, which will determine the feasibility of the market’s long term future.

References:

1. Innova Database
2. Hilliam, M (2007)
Organic Growth Continues,
The World of Food Ingredients, December, pp11-12

Dr Ajay Shah is the Director of AAS Food Technology Pty Ltd.
Email: ajay@aasfood.com
Web: www.aasfood.com

AGRIBUSINESS:  Sustainable soil popularity soars with fertiliser price rises

The rising cost of farming is one reason behind increased participation in soil health workshops. Farmers seek ways to cull outside input costs - by up to 50% say soil consultants - while maintaining or improving yields. 

This month, growers in the Brisbane, Sunshine Coast and Hinterland areas in Queensland are invited to attend a farm field-day and soil showcasing presented by South-East Queensland catchments' authorities.

Farms in the Beerwah and Tamborine regions will host a day’s worth of soil investigation providing a “demonstration of the changes in soil which can occur using organic soil health strategies” says organiser Greg Paynter, Biological Farmers of Australia (BFA).

Mr. Paynter, in conjunction with BFA and Soil Systems Australia, is responsible for a number of soil workshops and field days which have been conducted in regional areas around Australia over the past 12 months.
 
He says the aim of the projects was to increase wider community engagement of modern ecological farming techniques and to facilitate farmers' knowledge of practical farm techniques which “produce healthy soil outcomes whilst maintaining or improving productive capacity”.

He says interest in utilising eco-systems in land management has gained traction for two major reasons –  decreased land efficiencies which have occurred during recent climate extremes, namely droughts and floods. Secondly, the rising cost of production due to rapidly escalating costs of inputs in the agricultural environment.

“Many producers are experiencing the problem of yields which have dropped or plateaued compounded by an increase in variable costs.”

Mr Paynter says all the evidence from the workshops has suggested that farmers are awakening to the fact that farming is concerned with soil and not just what grows above it.

“There is a massive thirst for information currently, not yet adequately addressed, regarding soil health and low input farming systems”.

Meanwhile, it is predicted that input prices will continue to climb. Recent reports warn that urea prices are set to soar following a Chinese export tax on all fertilisers at 135%. Reduction in world supply has already seen the international urea price rise more than $100/t to the current price of around $620/t in Australia with experts saying Australian prices have not yet spiked. DAP and MAP fertiliser prices have quadrupled in price over the past 18 months with DAP prices reaching $US1195/t at the end of March, up from $US433/t in October last year. According to United States Department of Agriculture average fertiliser prices in January 2008 were 141 percent higher than the 1990-92 level.

“When combined with changing and prolonged climate conditions, decreasing soil carbon levels worldwide and increased costs of production, current farming is becoming more difficult. Producers want all-encompassing practical farm or paddock solutions”.

He says that interest in low-input farming systems and biological soil methods have increased because these processes lead to building farm assets, improved soil health, improved catchments' health and more sustainable rural businesses.

“Soil health practices can be adopted into all farming and land based operations”.

The next Qld workshops (SEQ catchments project) are as follows:
* Sunday 25th May 2008, 11am till 2pm – Vegetable farm -  Sandy Creek Organic Farm, 2471 Old Gympie Road, Beerwah

* Friday 30th May 2008, 9:30am till 12:30pm – Dairy Farm -  Tamborine Pastoral Company, 2158 Beenleigh Road, Tamborine

For more information and bookings contact Greg Paynter, Biological Farmers of Australia, Ph (07) 3350 5716 Email: greg.paynter@bfa.com.au

ENVIRONMENT:  Future farming - emissions, inputs and everything in-between

Research not its own reward: policy support required 

In 2007, Mark McHenry received the Land & Water Australia’s “science and innovation award for young people in agriculture, fisheries and forestry” to investigate what has since become one of agriculture's most anticipated and contested issues – how to get farmers involved in new energy and carbon markets.

“The problem for farmers is the difficulty of getting hold of quality information about energy or carbon markets available to their business” said Mr McHenry when he received the award last year.

After a year of collating environmental data from the South West of WA, he remains positive about the future opportunity for renewable energy and carbon sequestration in agriculture, but says the issues must be taken seriously by supportive government policy.

“Governments have a responsibility to each Australian to maintain our public goods (clean air, healthy environment, clean water etc.), and set the rules of engagement for businesses in a competitive market”.

“However, with many governments pulling in different directions in terms of climate change and renewable energy development strategies, there is growing uncertainty for businesses with some groups trying to get the rules of the new game written to give them an advantage”.

He says the Government’s decision to have the farming sector one of those few industries formally excluded from the parameters of the first round of a carbon trading scheme means that both farmers and the community are missing out in the short term.

“As farmers manage vast areas of Australia’s land and water resources, it makes sense for them to provide ecological services and climate change mitigation benefits. Formally excluding the agricultural industries research and technology capabilities from new carbon market opportunities will simply make the job of reducing Australia’s greenhouse gas emissions that much harder. Farmers have a unique understanding of their area and the community deserves to have all cards on the table when dealing with such an important issue as climate change”.  

He says farming communities are well placed to provide electricity from either solar, wind or tree biomass generation projects and sequester carbon on their farms however need encouragement.

“By more efficiently utilising fertilisers and revegetating less productive parts of the farm, farmers can increase productivity, capture carbon, provide resources that can generate energy, and maintain public goods such as clean water and air. Many farmers are already investing in effective conservation to increase both the conventional output of their farms and their environmental stewardship. I see no reason to exclude these activities from carbon markets and, as innovative and resourceful people, farmers should receive more acknowledgement and support in climate change policymaking.” 

Compost takes centre-stage in the future of farm inputs
The crucial role of compost in the future of agricultural inputs and waste and landfill management was recognised by governments and growers alike at the Compost Industry Leadership Awards in Sydney during last month's International Composting Awareness Week.

Composting – a major nutrient management technique in organic farming – is becoming more recognised for its ability to improve soil health and yield in conventional systems according to manufacturers. 

“Fourth generation farmers who are seeing soils become harder and tighter are realising they need more than a band-aid solution”, says Rhonda Daly, Managing Director, YLAD living soils, compost manufacturers from Young, NSW.

“They are recognising that they have mined soils for many years and global warming, rising fuel prices and chemical fertilisers are significantly impacting the way they view their future”.

She and husband Bill began supplying biological fertiliser amendments through YLAD in 2002 and moved the company into composting in 2006. They were this year’s recipient of the Most Progressive Recycling in Agriculture 2007 – 2008 award.

Rhonda says she attributes the success of the business to the production of a high quality humified compost product which was developed with a focus on regenerating the chemical nutrient and microbiological aspects of depleted soils.

She was also recognised at the event by the Department of Environment and Climate Change for her pivotal role in natural inputs education and “empowering farmers to shift to a system more in tune with nature”.

Ms Daly says she believes the key to efficient nutrient management in the future will be in the production of a natural fertiliser, on-farm.

“We run educational seminars on the production of humified compost – people need to be taught how to effectively use equipment like compost turners to make high quality inputs” she says.

“It’s the way of the future as farm input prices rise. Farmers cannot afford to be transporting fertilisers around the world”.

YLAD's next workshop will be held in October 2008. For more details contact YLAD Living Soils on ph 02 6382 2165 or e-mail ylad@dragnet.com.au.

HEALTH:  Confirmed again: organic food is more nutritious

Newly compiled evidence supports the claim of nutritional superiority of plant-based organic foods.

Collated into one dense document on the evidence of the benefits of organic, the US Organic Centre’s State of Science Review: Nutritional Superiority of Organic Food, published March 2008, summarises 97 studies, including 40 new studies, from the past six years - all proof that organic foods have a higher comparative nutritional value to conventional.

The team heading up the review used cross-study comparison to evaluate and link differences in the nutrient content of organic and non-organic food over time. 

They reported organically grown plant-based foods deliver more essential nutrients per calories consumed.

Organic plant-based foods were 25% more nutrient-dense than conventional alternatives in 75% of matched pair comparisons between organic and non-organic items.

“Organic foods within matched pairs were nutritionally superior (in the majority of cases). Organic plant-based foods are, on average, more nutritious” stated the reports key findings.

Nutrient density measures covered antioxidant capacity, total polyphenols and two key flavonoids - quercetin and kaempferol.

Polyphenols – a type of antioxidant - have been linked in recent research to the prevention of cardiovascular diseases, cancers, and osteoporosis with a suggested role in the prevention of neurodegenerative diseases and diabetes mellitus.

Quercetin, found most commonly as a compound in the red and orange pigments in vegetables and fruits (for example in the skin of red apples or in red onions), is a highly active flavonoid which has been connected with significant anti-inflammatory activity through the manufacture and release of histamines. Its intake may be recommended as a means to counter-balance allergic and asthmatic symptoms.

Kaempferol is a natural flavonoid isolated from tea, broccoli, witch-hazel, grapefruit and other plant sources associated with reduced risk of heart disease. 

In 2006 a US study linked kaempferol and quercetin from strawberries with the potential to combat cancer cells, specifically leukaemia (Zunino, 2006).

Report co-author and Organic Centre's chief scientist Dr. Benbrook says the typical American diet delivers barely half the recommended levels of these health-promoting nutrients, a figure likely to be similarly represented in other western orientated diets such as Australia. 

The Australian Government's 2003 adult dietary recommendations recognise the possible conferred benefits of substances found in plant materials – including polyphenols and flavonoids – and recommends eating a wide variety of foods “particularly plant foods”  in part because of this.

The guide stated that generally the diets of older Australians are more varied than younger groups, with males living alone eating significantly fewer food groups per day. 

Organic Centre board member, Andrew Weil says the research summary provides a welcome answer to the question “Are organic foods more nutritious?”, replacing previous ambivalent and vague responses from nutritionists and agricultural scientists.

“There is now overwhelming new evidence that organic fruits and vegetables deliver more nutrients per average serving” he said.

According to the report the number of relevant organic food nutrient measurement studies has doubled since 2000, with improved sensitivity in research analysis.

“Most studies in the 1980s focused simply on mineral and vitamin levels, while almost all studies published since 2000 include measures of minerals, vitamins, and health-promoting polyphenols and total antioxidant capacity”.

“Organic samples contained higher concentrations of the very important polyphenols and antioxidants. Increasing intakes of these nutrients is a vital goal to improving public health since daily intakes are currently less than one half of recommended levels,” stated the report.

It also found that the major factors impacting nutrient density in terms of production are plant genetics, the method of timing and harvest (especially ripeness), climate, and after harvest handling.

“How a harvested crop is handled after it leaves the field has an enormous impact on the degree to which the nutrients in the crop at harvest remain in the food when it is eaten”.

To view the original report go to http://gillesarbour.wordpress.com/2008/04/15/

For Joshua Symons, fair-trade and marketing officer from Coffex, one stamp of ethical integrity was not enough. The company responsible for the Global Café Direct coffee brand holds their products to some of the most ethically accountable standards in the world – their labels carry the certifying mark of both Fair-trade and ACO organic with pride.

“We didn’t want to go in half heartedly and have people turn around and say ‘well, ok you’re doing this, but what about this?”, says Mr. Symons.

“We wanted to create products that were as ethical, healthy and sustainable as they could be”.

Mingling more than one benefit is becoming an important point of advantage for many organic brands.

Products are more frequently being labelled with terms like ‘organic and gluten free’, ‘organic and allergy free’, ‘organic and fair-trade approved’. For Coffex the ‘organic and fair-trade’ approach is starting to reap rewards – ones that Joshua says are being distributed to all the right people. 

“So many of us don’t know what goes on in terms of how coffee arrives into our cups”, he says.

“The reality is there are farmers in Africa, Timor, Mexico and Latin America sitting in rooms opposite representatives from major corporations, becoming hedged into deals that will see them receive around half a cent to 3 cents for every cup of coffee that sells for over $3 on the developed café scene”.

He says that being audited for both organic and fair-trade compliance ensures consumers' ethical concerns are satisfied, while also keeping Coffex’s operating systems and quality procedures at the highest-standard.

“The two certification branches actually support each other. Undergoing a stringent audit for either fair-trade or organic can lead to ideas for procedures that benefit the whole business and keeps things smooth and accountable”.

He says he’s optimistic about the future of organic and fair-trade coffee but that more consumers needed to actively learn what it was all about.

“There’s a very good reason for the premium on our products. A lot of people believe money gets sent back to farmers after they buy it which is actually not the case – we purchase the green beans at a fair price with an additional premium which goes towards projects such as building schools, health systems and proper infrastructure. When a consumer purchases our coffee they are paying for livelihood dollars already in the hands of farmers”.

He says Global Café Direct is purchased for a fair price and offered to consumers on the supermarket shelf for a fair price. This price is in most cases is better than other brands - who demand premiums for non fair-trade products.

“It’s all about education, and we are actively trying to get the message out there… but these things take time”.

FAIR-TRADE goes fashionably central

Mr Symons was also the driving force behind last month’s Fair-trade Latte Art Challenge in Melbourne Central, attracting some of the most iconic names in coffee to compete in Victoria’s capital.

“I had help attracting the right people through Justin Metcalf (World Barista Championship Judge) probably one of the biggest names in coffee in Australia” he says.

“Justin knows most of the top competing barista’s and is a Fair-trade coffee advocate”.

Competitors included David Makin, current National Barista Champion, Toshi Ishiwata “one of Tokyo’s best, who moved to Melbourne to further his coffee career” and Con Haralambopoulos (runner-up Australian Champion for latte art), who took Gold.

“It was a world first event with baristas using only fair-trade coffee and fair-trade syrups. Each competitor had ten minutes to create two lattes, two macchiatos, two cappuccinos and one designer drink of their choice. One of each drink went to the judges and the others were distributed amongst the crowd for people to try Fair-trade. We want to reach as many people as we can”, he says.

Coffex have recently had three products approved for distribution through Coles, adding further lines based on region of origin (e.g Africa, Latin America or Timor).

“Our de-caffeinated coffee is actually a super-star seller” says Mr Symons.

“It’s processed using a Swiss water technique using no chemicals and the taste is very clean and fresh. If it’s not in-store people ring to ask why!”

Coffee – what you never knew about your cup

How many coffees are consumed a day? “Around 90 billion” says Mr Symons.
Where does it come from? “Brazil leads the way by a long margin with important producers also in Columbia, Peru, India, Ethiopia, Vietnam, Indonesia and Kenya.
Who drinks the most? “Apparently it’s Scandinavia where the average consumption is ten cups per day! Japan is next and then you start moving into some of the Western countries – USA and Australia.”

If you’re keen to find out more about what goes into your brew Mr Symons recommends the documentary ‘Black Gold’.

“It will completely change the way you think about coffee”. 

To complete your organic advantage!

A Queensland farmer got in his Truck and drove to a neighbouring farm and knocked at the farmhouse door. A young boy, about nine, opened the door.
'Is your Dad home'? the farmer asked.
'Sorry mate, he isn't' the boy replied. 'He went into town.'
'Well,' said the farmer, 'Is your Mum here'?
'No, mate, she's not here either. She went into town with Dad.'
'How about your brother, Greg? Is he here'?
'He went with Mum and Dad.'
The farmer stood there for a few minutes, shifting from one foot to the other and mumbling to himself.
'Is there anything I can do for ya'? the boy asked politely. 'I know where all the tools are if you want to borrow any, or maybe, I could take a message for Dad.'
'Well,' said the farmer uncomfortably, 'I really wanted to talk to your Dad. It's about your brother Greg getting my daughter pregnant.'
The boy considered for a moment.
'You'd have to talk to Dad about that,' he finally conceded. 'If it helps you any, I know that Dad charges $200 for the bull and $150 for the pig, but I really don't know how much he would be asking for Greg.'

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