The Benefits of Organic Certification

BY BERNADETTE FAVIS

With increasing competition, retailers and brands are continuously improving their consumer offerings. At the same time, consumers are more educated and informed on where and what to spend their dollars on due to the ease of access to information and changing consumer values.

Organics is becoming one of the fastest growing segments domestically and internationally. Global organic sales surpassed the US$100 billion mark in 2018 according to Ecovia Intelligence. The global organic foods and beverage market is expected to reach US$399.4bn by 20271. The United States is the largest market with an estimated US$47.3 billion in 2020 with China forecast to reach a projected market size of US$6.9 billion by year 2027 with CAGR (Compounding Annual Growth Rate) of 13.5%2. Domestically, organic farming in Australia is valued at $1.8bn, with a CAGR of 15.1% over 5 years.3

Australia has the largest area of organic farmland in the world covering more than 35 million hectares4. Most of this land is large rangelands for organic cattle farming. The industry continues to grow as consumer demands and consumption grow. Retailers and brands value the importance of organics stimulated by consumer choice that organic products are better for the environment and their wellbeing.

Organics therefore is becoming mainstream notwithstanding that the price for organic products generally commands a premium compared to conventional products. This is due to the value placed on the term organic - that it is free from synthetic chemical residues or preservatives, antibiotics and is sustainably grown.

It is therefore important to protect the term organic and ensure its authenticity remains a credible representation to consumers. Certification provides such credibility. It provides re-assurance to the retailer and the consumer that the product has undergone rigorous independent verification of compliance with a consistent framework. It ensures the industry remains accountable to its end users.

Organic certification delivers the integrity of the claim for organics. By having an organic certification on a product, such as the Bud logo, consumers can be assured that the product is produced according to stringent requirements, and is therefore; sustainable and regenerative; harmful synthetic chemical free; free range and not tested on animals; and all GMOs are prohibited.

Domestically, supermarket chains are anticipated to increase their ranging of organic products over the coming years.5 With the increase in consumer demand in Australia and internationally, it is even more important to continue to ensure that organic certification remains a focus for retailers and brands. Education and awareness are key and these are some of the strategic objectives of Australian Organic as the peak body in Australia.

From paddock to plate, an organic certification logo such as the Australian Organic Bud Logo protects consumers and those working behind the scenes in the organic industry, ensuring products have been produced with the health and welfare of farmers and workers, consumers, and the environment in mind.

References: 1Global Organic Foods & Beverages Industry, Report Linker, 24 August 2020 2Global Organic Foods & Beverages Industry, Report Linker, 24 August 2020 3Organic Farming in Australia Industry Report, Ibisworld, December 2019 4Organic Farming in Australia Industry Report, Ibisworld, December 2019 5Organic Farming in Australia Industry Report, Ibisworld, December 2019