Organic farming set to fly in 2010-2011

Posted by Josette Dunn on 19th July 2010

With the new financial year upon us, business information research and analysis group IBISWorld has compiled its annual list of Australian industries set to fly and fall in the next 12 months. According to IBISWorld, organic farming will be the biggest winner in 2010-2011 as Australians consider the health benefits and environmental impacts of their food choices.Whereas most of the world’s developed nations remain bogged down by the fallout from the ongoing global financial crisis, Australia’s outlook for the new financial year is relatively positive says IBISWorld, with it forecasting Australia’s economic growth to reach 3.7% in 2010-2011.

Organic farmingRevenue growth: +15.1%; total revenue: $0.45 billion; employment growth: +2.0%

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IBISWorld forecasts that ever-increasing health concerns, greater awareness of environmental sustainability, higher disposable incomes and the availability of a wider range of organic produce will support phenomenal growth in Australia’s organic farming industry, which currently accounts for less than 1% of the total value of grains, meat, horticulture and dairy production in the country.

“Big business is jumping aboard the organic farming bandwagon,” said IBISWorld General Manager (Australia) Mr Robert Bryant. “For example, recently international heavyweights McDonald’s and Unilever made bold moves to become more environmentally friendly and ethically sound by sourcing coffee and tea respectively from plantations accredited by American environmental organisation Rainforest Alliance while Coles supermarkets have their own private-label organic brand.”