Organic food sales on the rise

by admin on September 6, 2010

The organic food industry is going from strength to strength with the recent growth pushing the annual sales to almost $1 Billion a year in Australia, as a new report show more Australians are preferring the chemical free lifestyle.

The traditional supermarkets such as Coles, Woolworths and IGA have accounted for more market share, selling 60% of Australia’s organic food, according to a report commissioned by the Biological Farmers of Australia.

This trend is defying the global recession as the the sales of organic wine, beer, cosmetics, and feed stocks grew.   The big growth in sales of 61% was distributed over only a small 4% increase in the number of producers.

As expected the biggest barrier to further grow was the price premium of the organic products.  Although with the strong growth it should help economies of scale help reduce the price in the longer term.

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