Melbourne, Australia (PRWEB) July 11, 2014
Farmers have benefited from direct consumer demand for fruits and vegetables and indirect demand, through processors, for organic grains for use in breads and cereals. To a lesser extent, concerns about the negative environmental effects of conventional farming have also driven the industry’s growth. Operators have been drawn towards the industry by the price premiums and higher profit margins that organic produce attracts. It takes three years for a potential entrant to become certified organic, meaning there is a substantial lag between planning to enter the industry and actually becoming a participant. Growth prospects for the industry remain strong. “Consumer demand for organic produce is anticipated to strengthen, on the back of rising health consciousness and growth in disposable incomes,” says Tonkin. Furthermore, strong overseas demand for organic beef is expected to bode well for organic crop farmers, through demand for organic feedstock produced from grains.
IBISWorld Industry Report Key Topics
Farmers in this industry grow organic crops such as fruits, vegetables, grains, fibres, nuts and oilseeds. Crops must be grown without manufactured fertilisers, pesticides, growth regulators or any other plant modifications.