WEBINAR

The organic market in Australia: Gaps &

Opportunities

15 June 2021
 THIS WORKSHOP PROVIDES:

• An understanding of the opportunities for

Vietnamese organic products in Australia
• An appreciation of the problems for food
importers posed by the strict Biosecurity
requirements imposed by the Australian
Government
• An appreciation of where to go for additional
information
PRESENTER - TIM MARSHALL
A leader in the organic agriculture industry for 40 years
Currently Chair of the organic certification body,
NASAA, consultant, trainer, author and PhD student
Experience includes:
• Co-founder of NASAA, first Chairperson
• Highly experienced organic farm/processing
inspector
• Standards and Certification Manager for IFOAM, and
• IFOAM, NASAA, BFA and National Standards
Committee member
• Understanding of organic production methods and
problems in S.E. Asia including Vietnam
Tim at work
Tim in Vietnam
The Organic Market in
Australia
ORGANIC MARKET
• Largest area of certified land in the world, but
mainly low production pastoral (animal) industries
• Continues to grow at about 13% p.a. (ibisworld)
• More producers, greater range of product, more
processed product, beauty products, textiles
• More organic products in supermarkets
• More organic produce in restaurants and cafes
• Local organic retailers survive (against the trend),
including farmers markets, box delivery schemes
and subscription farms
• No single operator has greater than 5% share
AUSTRALIAN ORGANIC MARKET

• More than 6 out of every 10 Australians

households now buy organic on occasion.
• Organic domestic retail sales have grown to
over 2.5 billion dollars (AUD)
• Supply is a major limitation on continuing
growth of organic (not demand)
• Organic versions of almost every product are
available
AUSTRALIAN ORGANIC MARKET
• 91% of Australians say "chemical-free" is important
to them
• Organic farming one of top 3 growth industries
• Under supply in some sectors through some periods
of the year, suggesting opportunities for supply
• On the whole organic producers and value adders
are planning for and expecting growth
• Operator growth numbers continues to rise, in a
sustainable manner (4-5% PA), delivering higher
farm gate values (as the market expands)

Source : IBIS World and Australian Organic Market

Report
 AUSTRALIAN ORGANIC MARKET
• Ongoing challenges in production and supply
chains
• Over 1,000 organic lines in major supermarkets
• Still only represents little more than 1% of the
food sector in Australia, compared with 3% – 4%
in some overseas markets (5%+ in some
Northern European markets)
• Room for further good growth domestically
– Greater volume
– New products
• Major impediment to increased purchases is lack
of consistent supply, rather than higher price
MAJOR IMPORTED PRODUCTS IN THE
AUSTRALIAN ORGANIC MARKET
• Top imported products are:
– Coffee and tea (very little Australian domestic production)
– Coconut (no Australian domestic production)
– Spices (pepper, vanilla, nutmeg etc., no domestic
production)
– Chocolate (almost no local production)
– Cereal products: against the trend, Australia is a major
producer and exporter of non-organic grain but does not
produce enough organic
– A wide variety of processed product
– Fruit and vegetables (mainly from New Zealand)
Major source countries

• Coffee: PNG, Africa, South and Central America

• Tea: India, Sri Lanka
• Spices: India, Sri Lanka, Indonesia
• Chocolate: Africa, South America
• Processed product: USA, Italy
• Grain products: USA, Canada, Ukraine
• Soy, and small seeds: China, Korea, South America
• Rice: USA, Pakistan
• Sugar: South America
• Fish: Thailand, Sweden
 CERTIFICATION REQUIREMENTS
• The National Standard for Organic and Bio-
Dynamic Produce is used for export
• The AS6000 has some application in the domestic
market but does not mandate certification
• Generally organic wholesalers and supermarkets
are reluctant to handle uncertified organic produce
• There is a push for domestic regulation
• In current circumstances (no domestic regulation)
we believe some imported product is fumigated
and still makes its way into organic produce, but
domestic legislation will put an end to this practice
BIOSECURITY REQUIEMENTS AND
LIMITATIONS
BIOSECURITY
Importation of fresh produce into Australia is strictly
controlled to protect Australian producers against
pests and diseases
Some organically acceptable pest and disease control
methods may be available. Examples include:
• Temperature control including heat (hot air or
vapour), cold or freezing
• CO2, and
• Ozone

You can search product restrictions at

https://www.agriculture.gov.au/import/online-
services/bicon
 BIOSECURITY
Organically acceptable pest and disease control
methods may be available. Examples include:
• Temperature control including hot air or vapour, or
cold storage may be acceptable for some fruit
• CO2 is commonly used for seed and grain
• Ozone is still in early development and is most
often used for packaged goods (but cheap and
effective)

• For more information on temperature treatments see

Imported goods - Biosecurity risk treatment guide
(agriculture.gov.au)
 BIOSECURITY
The Biosecurity Act 2015 requires that all imports of food
comply with the certain conditions. Restrictions apply to most
raw foods and some processed food. The following are
restricted and strictly policed:
• eggs and egg products​
• dairy products
• uncanned meat
• seeds and nuts
• fresh fruit and vegetables
Commercial importers of food such as fresh fruit and
vegetables need to obtain an import permit prior to sending
produce
BIOSECURITY

• You can do initial checks for biosecurity requirements by

searching the Biosecurity Import Conditions system
(BICON)

• For more information contact Imports: Phone: 1800 900

090 (+61 3 8318 6700 from outside Australia)
 BIOSECURITY: Example of mangoes
• At least five Australian states produce mangoes, therefore
mango imports will generally only be profitable for
counter-seasonal producers
• Mangoes are imported from Pakistan, Philippines and
Indonesia
• Most mango imports into Australia will be processed,
such as juice, purees and canned products that may be
imported into Australia with minimal restrictions
• Importation restriction can be difficult, will vary from
season to season and depending upon the source so it is
difficult to provide reliable advice on importing mangoes
to Australia. For more information
see: https://www.agriculture.gov.au/import/goods/food
BIOSECURITY: Example of rice
• Australia produces some rice when water is available, with a
few organic producers
• Organic rice is imported from Pakistan and USA
• Although Australia does not use tariffs as a trade barrier,
quarantine inspection costs may add to the cost of importation
• Rice is an opportunity, but it needs careful consideration
• For more information
see: https://www.agriculture.gov.au/import/goods/food
• Also https://www.australiavietnam.org/post/vietnam-rice-
imports-a-last-resort-or-unexpected-opportunity
 BIOSECURITY

• Heat Treatment: see

https://www.agriculture.gov.au/sites/default/files/sitecoll
ectiondocuments/biosecurity/import/general-
info/qtfp/heat-treatment-methodology.pdf
• Although Australia does not use tariffs as a trade barrier,
quarantine inspection costs may add to the cost of
importation
BIOSECURITY

Biosecurity legislation in Australia websites

• https://www.legislation.gov.au/Details/C2016
C01051
• https://www.legislation.gov.au/Series/F1996B
01315
• https://www.legislation.gov.au/Series/F2001B
00340
LABELLING and CONSUMER INFO
• At least 95% organic ingredients: Can make a
front label claim and use a certification mark
• At least 70% organic ingredients: refer to organic
ingredients on front label (eg contains organic
sugar)
• Less than 70% organic ingredients: refer to
organic ingredients in ingredients list only
• Generally need to retain product samples in
Australia in case of problems
PACKAGING FOR RETAIL

• Natural materials are preferred e.g. paper, cork,

cellophane, wood
• Glass and canning are permitted
• High quality food grade plastics are permitted
• Once securely packaged, produce can be
distributed by uncertified agents and carriers
Bottling soy sauce in Australia
OPPORTUNITIES
Approach import and wholesale/distribution
businesses to ascertain up to date
information on the particular crops
Because of the biosecurity problems, it is best
to work with an import agent
To understand market opportunities and
problems, such as seasonal supply, it is
recommended to work with an Australian
distributor
The Vietnamese Business Council can help to
develop suitable contacts in Australia
MAIN OPPORTUNITIES
• Processed products generally including
sauces, jams, canned fruit, frozen and dried
vegetables
• Cashews (controlled atmosphere storage)
• Rice and rice products such as noodles
• Seafood (fish and prawns)
• Coconut milk
• Palm sugar
• Coffee
• Herbs (dried e.g. basil, medicinal herbs)
• Spices (pepper, cinnamon, nutmeg, vanilla)
Thank you!

More information
• Australian Government Websites
• Australia Vietnam Business Council
https://avbc.org.au
• Certification bodies
• Other certified operators