Extract from Organic Advantage Ed. 118 (BFA e-newsletter) March 2009

Demand for organic foods continues to grow despite the world economic crisis according to the United Nations Trade and Development Agency (UNCTAD).

They say global sales from certified organic products are expected to reach $67 billion in 2012, up from $46 billion in 2007 and about $23 billion in 2002.

For consumers down-under the current economic downturn has meant thinking carefully about how each food dollar is spent.

Whilst some specialist organic retailers are experiencing consumer resistance to paying more for organics, it appears that many consumers have weighed the cost of organic food against its benefits - better taste, no synthetic additives or GMOs, better outcomes for the environment, and up to 25 percent more nutrients in fresh produce - and have decided on the side of organic.

Australian organic producers are recording strong sales in many markets, especially meat and dairy produce.

Australian Certified Organic meat processor Cleavers The Organic Meat Company recorded its highest ever sales season for organic lamb late last year, reporting a sales jump of 20 percent in January for the two preceding Christmas months.

Similarly, Alister Ferguson, National Sales Manager for the Organic Meat Company says that Australian consumers are staying loyal to organic beef.

The company reported steady growth in orders at the end of last year with the domestic retail market up by about 40 percent in the last four months of 2008.

Meat processors say one explanation for increased beef sales could be a consumer trend away from eating out at high-end restaurants, and toward home-cooked meals, while still seeking gourmet food options more interesting than the standard 'meat and three vegetables'.

They say organic is also attracting a much wider demographic than previously, putting more pressure on meat producers to supply high quality goods consistently. Because organic certification takes three years there is a very present need for new farm recruits to organic.

Organic dairy producers in North Qld have also sold record levels of organic dairy products in past months. They put the result down in part to increased product distribution and availability at a retail level; and increasing public awareness of organic dairy quality and taste.

The jury is still out on organic fruit and vegetables.

This is one area of the marketplace where there is still shopper resistance to organic produce if there is a perceived excessive price difference between organic and conventional products.

Bigger producers report that stock is still moving well, but to compete successfully in a tightening market, they say produce must be high quality.