Australia: Domestic market and export sector are growing

Being most innovative has already paid off for some Australian organic companies on the domestic and international market. Their creative approach to business puts them on the starting blocks for 2009. Z Mills’ opening introduced a new way of organic flour milling, and Australian Harvest’s grape marc produce achieved an award in Dublin. Export is growing and the domestic market has an increasing demand for dairy and meat products. (Picture: Biological Farmers of Australia)

The recent opening of Z Mills in South East Queensland was a huge step for organic flour milling. Protection from light, reducing the temperature to 4 degrees Celsius or lower and using nitrogen to exclude oxygen from the milling process means that the enzyme reactions that cause rancidity in flour are virtually eradicated. In addition, according to CEO Thomas Cunliffe (picture), the process retains the grain roughage and essential oils, minerals and fibre, so that the nutrient value of the flour is maintained. The mill can be used for hard grains such as brown rice and hemp and trials are planned for milling China - tiny seeds of an ancient South American plant that is rich in anti-oxidants. Even the mill is a local product: a Queensland design in which the grain effectively mills itself through a contained, high-speed impact process that uses no water and 30 % less energy than conventional mills.

Australian Harvest’s grape marc produce has made its mark at a major food expo in Dublin. The Bio-Grape range of organic grape- and wine-based pastes, designed to be served with cheeses, took out the Best Overseas Product 2008 award in a competition in which the calibre of entries surpassed the judges’ expectations. The pastes of Australian Harvest are made with an extract from the richly-pigmented marc of red wine grapes, incorporate exotic fruit and chilli additions, and contain over 600 anti-oxidants. The victory in Dublin was followed by a warm reception at the Wine Show in London, a promising foothold on a significant market. 
 
Australia’s largest sandalwood oil processing company Mt. Romance Australia supplies premium oil to the world's leading perfume houses. And even with a global focus, they keep a careful eye on their backyard. Sandalwood is native to the area and was one of the first exports from Western Australian back in the 1840’s. Andrew Brown, Research Development and Regulatory Manager, emphasises that sandalwood trees (picture: Sandal wood tree, Mt. Romance Australia) are harvested under strict controls to ensure the sustainable harvest of a valuable export commodity.
 
“Over a stretch of 1 million hectares from Wiluna in the north to Kalgoorlie in the south, whatever gets taken out in harvest gets replaced, and trees cannot be harvested until they reach a certain size.", he explains. "The entire harvesting process is managed and strictly regulated by the Forest Products Commission and the Western Australian Department of Environment and Conservation. Mt. Romance's environmental activities are also monitored because of its certified organic processor status. The plants are kept chemical free, and there is nothing added to the essential oil itself. Separately to the oil, powder from the left over spent wood chips is produced, and the left over is sold as incense in South East Asia. All waste is utilised for producing further items with a market value.” The company sells approximately 10% of their product in Australia, and exports the majority of product for use in luxury perfume markets in Europe, South East Asia, the US, and the Middle East. Mr Brown says the eco-footprint of Australian sandalwood product is light and the company also takes care to consider its impact on the surrounding community. “Our customers work with us to assist indigenous Australian communities, and support any sandalwood business endeavours they run from their native title land. They often provide tenders to be contract harvesters,” Mr. Brown explains.
 

But not only has the organic sector been successfully exporting products. Certain items are also increasingly being bought on the domestic market. According to BFA Standards Committee Chairman Dr. Andrew Monk, market data shows continuing opportunities for the organic industry in the dairy and meat sectors. Consumers are clearly committed to their purchases and do not regard organic dairy products as a "dispensable luxury”. Last year’s research showed organic farm gate sales rose by more than 80 % in the last four years. It is considered to be imperative, however, that new entrants know exactly which part of the niche they will fill and look for market gaps. IBISWorld market researchers predict Australians will turn towards organic and biodynamic products with renewed energy in the years ahead, with organic items strong in anticipated shopping baskets by 2013. (Picture: BFA)

Organic yoghurt has been highlighted as a hot opportunity, with organic dairy overall tipped to be a popular purchase. Speciality and organic cheeses will also move up the future favourites list. Robert Watson from Mungalli Creek biodynamic dairy in Millaa Millaa (Queensland) says demand for organic/ biodynamic dairy on the basis of quality and taste is growing strong. “People are learning to pay more for a higher quality product for a number of reasons – not only because it’s organic, but because it’s local, it’s healthy, it tastes great and it’s environmentally focused.”
 

Organic red meat is also primed to tempt taste buds. Organic meat producers are expected to further invest in their marketing to distinguish products from conventional competition by meat quality and characteristics. “We’re embracing technology to assist in the delivery of high quality, certified lamb to the consumer,” says Justin McClure, large organic meat producer near Tilpa (NSW). “The Rangelands lends itself to organic production. Low stocking densities are working in tandem with our management to deliver a quality organic product.”

Organic and free range eggs are expected to expand their private label share – possibly reducing the price of non-caged eggs through increased competition. Organic poultry is also more likely to be spotted in stores, as consumers look for leaner, healthier products. “People are becoming more willing to pay a premium for a higher quality organic bird, most often on the basis of health considerations,” says Clive Wylie, organic poultry producer from Inglewood Farm (Queensland). “Organic birds are well exercised and fed nutritionally, and that leads to leaner, more flavoursome chicken products.” (Picture: Inglewood Farm's Organic grains and crops)
 

Chocolate sales will reportedly only increase where the treats are organic, dark, premium, or fair trade. Scott Fry, Managing Director of premium organic chocolate brand Loving Earth (picture) says demand for their product in Australia and New Zealand is skyrocketing. “We are doing very well with chocolate that is health orientated and minimally processed. We source our raw ingredients from indigenous co-operatives in developing countries that are members of the fair trade federation – a factor that is important to our customers.” Scott Fry’s Loving Earth was the first – and is still one of only two - raw chocolate producers in Australia. Loving Earth filled a niche market for those who like their chocolate strong and unadorned, and for consumers who need to avoid dairy foods and to limit their sugar intake. Low GI agave syrup is used as a sweetener, and the chocolate is rich in magnesium and antioxidants. Mr Fry says raw chocolate also has more potent mood elevators than conventionally produced chocolate. The company's main product range and focus is premium chocolate, however they also package and distribute various functional foods and superfoods. 
 

There has never been a better time for Australia’s green products according to Austrade’s Chief Economist, Tim Harcourt. “The demand for clean and green worldwide currently is just the tip of the ice-berg. “Australian products have done themselves a favour, now enjoying a clean and green reputation in particular in Asia, Northern Europe and the United States that can built on. Australian environmentally friendly companies interested in Asia have proved themselves innovators at the forefront of minimising their carbon footprint, and using that as a marketing point of difference to a highly environmentally conscious customer”. (Picture: Brisbane)

Credits picture Z Mills: Queensland Country Life