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| Overview of Organic Farming in TasmaniaWhat is Organic Farming?
What is Certified Organic Produce?
Growth in Demand for Organic Food
Organic Farming in Tasmania
Opportunities, Issues and Constraints
Further Information
Organic farming is farming without the use of synthetic chemicals, artificial fertilisers, pesticides, irradication or genetically modified organisms. Soil health is critical in producing wholesome organic produce. Only free-range animals are allowed in organic farming systems and the use of cages is not permitted. Holistic farm management techniques are integral to organic farming.
Certified organic produce is produce that has been organically grown, harvested, prepared and transported in systems that guarantee the produce is not contaminated by synthetic chemicals, genetically engineered material, been fumigated or irradiated. Produce must be labelled as "certified organic" with a registration number and a certifying body's name displayed prominently on it.
Certifying Bodies have been established in Australia and overseas to reassure wholesalers, exporters, retailers, and consumers that produce is organic. The Australian Quarantine and Inspection Service (AQIS) audits organic industry organisations, of which there are seven, against the requirements of the National Standard for Organic and Biodynamic Produce to ensure that the integrity of the organic product is maintained.
Demand for organic food has increased dramatically over the past few years. Australia's organic industry is currently valued at over $250 million and is growing at approximately 25% per year with around 40% of production destined for the export market.
As at October 2005 there were 110 certified organic producers in Tasmania with another 60 in various stages of conversion, producing an estimated $9 million worth of product on 5,500 hectares of land. Organic farms can be found Statewide and are involved in varying enterprises from wine to sheep's cheese. There are approximately a dozen large enterprises but the majority of the organic farms are small-scale operations where lifestyle and philosophy play a big part in the reason for being involved.
Most enterprises tend to deal locally. Some enterprises serving in niche markets have to accommodate the cost of crossing Bass Strait. The new twin ferries have made a nightly service possible for Melbourne markets to receive fresh produce. A number of producers are also taking advantage of this service to connect with onward flights to overseas destinations where local plane capacity has been reduced.
 The industry is expanding but needs more large-scale operators. The big incentive is the premium available for organic product. The disincentive is the perception amongst the conventional farming community that it is difficult to convert to organic farming combined with the belief that their yields might go down. Many farmers may feel that they cannot afford to risk the potential loss of income. Whilst it is true that yields in the early stages of conversion might go down, it is also true that the costs involved in production will also decline.
Demand is growing for organic products and returns are often higher which may offset possible lower yields. Many farmers value-add their produce and a new level of activity may be expected as larger organisations respond to demand from consumers.
The product produced during the first year or "pre-certification" phase has to be sold on the conventional market so the potential loss of yield is critical as no premiums are available. Once the property achieves "in conversion" status after one year, produce can be sold as "in conversion" at a small premium. This phase lasts two years. It takes a minimum of three years to fully convert to organic farming.
After several years of producing organically, yields can rise to pre-conversion levels as management improves under the new regime. With the premiums available for organic product, financial returns are comparable or exceed conventional farming.
A recent report (February 2005) into the Tasmanian Organic Industry has highlighted a number of industry related issues, with the major concerns surrounding the labelling of organic products and inconsistent supply.
The report, entitled Opportunities, Issues and Constraints – The Tasmanian Organic Industry, provides information concerning the general state of the industry, the major barriers to growth and potential for industry development. It has been presented to the Ministerial Organics Advisory Group (MOAG) which reports to the Minister for Primary Industries and Water, Minister Steven Kons. It was initiated by MOAG and undertaken in conjunction with the Department of Economic Development and the Department of Primary Industries and Water.
The report details the views of 33 industry respondents and is intended to provide the foundation for further action and investigation. Interviewees were classified as retailers, growers/producers, wholesalers/distributors and processors. A representative sample from across the industry and state ranging in size and sector were chosen for the project. The questions examined both the supply and output side and also a general industry section allowing respondents to raise any other relevant issues.
This is a Portable Document Format (PDF) file and requires the use of Adobe Acrobat Reader. The Reader is easy to download and is free of charge.
Contact: Organics Industry Development OfficerAlexandra Mitchell
Organic Industry Development Officer
13 St Johns Avenue NEW TOWN TAS 7008
Phone: 03 6233 2404
Fax: 03 6228 5123
Email: Alexandra.Mitchell@dpipwe.tas.gov.au
Useful Links - Organics
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