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The organic industry in Australia: Current and future trends

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Abstract

Accurate information is critical for investment, policy alignment and to support agricultural development. In Australia information relating to the size, growth, current and future value of the organic sector has been incoherent and, in some cases, contradictory. This study seeks to address this gap by synthesising industry and government data with the results of an online quantitative survey as well as a series of in-depth interviews to capture the value added component of the organic industry in Australia. By sub-dividing the total organic industry into thirteen categories which makes for meaningful analysis and interpretation, we aimed to estimate the compound average growth rate, the current value added and future trends in the Australian organic industry. This has resulted in some interesting findings, hence the methodology could potentially serve as a benchmark for the reporting of organic food growth globally. The findings also have important implications for various stakeholders including, growers of organic products, investors, land use policy makers and industry operators.

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The aim of the overall project is to understand in depth the behavioural process of parents with respect to organic food. Its main objectives are to identify: beliefs, with respect to organic food, of parents who buy and do not buy organic food; the positive as well as negative attitudes towards organic food of those who buy and do not buy organic food; the impact of those attitudes on food choice for parents who buy and do not buy organic food; and to model the food choice behaviour of parents with respect to organic food. Employs both qualitative and quantitative methods. Reports the results of the second qualitative phase of the project which involved 40 laddering interviews, which were conducted in Reading, UK. The means-end chain approach was used. The key idea is that product attributes are a means for consumers to obtain desired ends. Participants were parents with children aged 4-12 years old, who were responsible for food purchases in their families and belonged to ABC1 class. The life values which were revealed mainly fall into three main broad categories. Consumers’ human, animal and environment centred values form the key motivating factors for organic food purchase. Both laddering and focus group interviews have generated certain hypotheses that are tested through the quantitative phase of the project, which uses a sample survey.
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Chronic Non-Communicable Diseases (NCDs) are the cause of 86% of all deaths in the EU and 65% of deaths worldwide. A third of these deaths occur before the age of sixty years. The NCDs affect 40% of the adult population of the EU and two thirds of the population reaching retirement age suffers from two or more NCDs. The NCDs are a global epidemic challenging economic growth in most countries. According to the WHO, NCDs are one of the major threats to worldwide social and economic development in the 21st century. The problem is of great concern to the international community and was discussed at a High level meeting at the UN General Assembly in September 2011. In this paper we review the epidemic of NCDs both from a national and international perspective. We discuss the causes and consequences. In a second review paper we reflect on the political health policy issues raised by the international community in order to respond to the problem. These issues will become a major challenge for social and economic development in most countries of the world in the coming decades. Key words: NCDs, Chronic Non-Communicable Diseases, Population based prevention, public health Correspondence: Karl Andersen, andersen@landspitali.is.
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The aim of the present study is to examine consumer factors that affect the demand of organic olive oil (socioeconomic characteristics as well as attitudes towards organic products, food safety and the environment). Heckman approach for single equation procedure was applied in order to (1) identify the profile of regular buyers of organic olive oil based on the aforementioned factors and (2) to estimate income elasticity for the same product. Results indicate that the demand for or ganic olive oil is strongly affected by socioeconomic characteristics such as income size and occupation status, and to a lesser extent by attitudes towards organic products, food safety and the environment.
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The main purpose of this work consists of displaying the different attitudes of men and women towards organic food, and their willingness to pay for it, in three different consumer intensities: usual, occasional and potential consumers. Several surveys have been carried out to obtain a representative sample of regular food purchasers living in Castilla-La Mancha (Spain). Statistic analysis previously detecting significant differences with regard to gender and type of consumer has been conducted by univariate analysis to describe attitudes, and multivariate analysis, through ‘logit’ models, to calculate maximum willingness to pay. Results show that women have a more favourable attitude (directly related to their lifestyle) to the purchase and consumption of organic food than men, whereas men are inclined to pay a higher price for organic food than women. In general, men are disposed to pay a higher increase in price than women.
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This study investigates the impact of economic and marketing variables (quality, price, and distribution), emotions (fear, empathy, and guilt), social norms, and environment-related variables (environmental concern, green behaviour, and perceived consumer effectiveness) on Dutch consumers' preference for, and purchase frequency of, organic meat. The results show that consumers' purchase of organic meat is based on both 'rational' economic motives and emotional motives. © Oxford University Press and Foundation for the European Review of Agricultural Economics 2005; all rights reserved.
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Purpose – The purpose of this article is to study whether preference for a product increased, or decreased, as a consequence of information that the product was either eco‐ or fair trade labelled. An additional purpose was to investigate associations between importance attached to values and preference for eco‐ and fair‐trade labelled food products. Design/methodology/approach – Effects of information that orange juice was either eco‐ or fair trade labelled were studied in an experimental setting, with a sample of Swedish students. Importance attached to values was measured with the list of values (LOV) scale. Taste preference was the evaluated aspect. Findings – No significant effects of the experimental manipulation were observed. Attaching greater importance to the value “warm relationships with others” was associated with a more favourable rating of the taste of both eco‐ and fair‐trade labelled juices. The value “security” was positively associated with an increased taste preference for the group exposed to the fair trade, but not the eco, label. Originality/value – This paper provides knowledge about the characteristics of environmentally and ethically concerned consumers.
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Producers are interested in developing labelling schemes that go ‘beyond organic’ to address ethical criteria not included the US Department of Agriculture organic standards. However, consumer interests in labels that are not as widely available as organic in the market are poorly understood. This study reports results of focus-group research and a survey of 1000 households in the Central Coast region of California to determine which standards consumers are most interested in supporting through their purchases. The results indicate that standards for the humane treatment of animals have the highest level of support, followed by a standard for local origin, and for a living wage for workers involved in producing food. Logistic regression analysis suggests that humane is more likely to be chosen by women, European-Americans, younger people and frequent organic purchasers. Locally grown was preferred by older people and households with children. A living wage for workers involved in food production was selected more often by Latinos. Although a characterization of trends is not possible due to a cross-sectional design, the results suggest some potential directions for producers in this region who are willing to supply unmet consumer demands for ethical criteria. There are three basic directions that new and emerging labels may take with respect to US national organic standards: (1) separate from organic; (2) institutionally separate, but tightly integrated with organic; and (3) intended to supplant organic. The success of each of these strategies will depend on how much trust consumers continue to place in government oversight of organic food. The study results also suggest that the movement for a more sustainable food system would benefit from devoting more attention to issues of animal rights and social justice.
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The role of ethical motives in consumers' choice of organic food was investigated. A self-administered questionnaire was conducted on a representative sample of 1283 Norwegian adults. The relations between ethical food choice motives, attitudes and intention to consume organic food was studied by estimating a structural equation model. Environmental and animal rights issues had a strong influence on attitudes towards organic food, suggesting that the more people are concerned about these issues, the more positive attitude they have towards organic food, and the more likely it is that they will consume organic food. Also, political motives had some positive influence on attitudes, while religion was not important as a food choice criterion. Implications of our findings for marketers are discussed. Copyright
Article
Abstract In Spain, consumption of organic products has not kept pace with production. Up till now, foreign markets have been a natural destination for excess supply. However, world trade liberalization might cause important commercial problems to Spanish producers that could be partially solved by enlarging the domestic market. The goal of this paper is to assess the opportunity for such enlargement focusing on two main aspects: consumers’ and retailers’ attitudes and willingness to pay for organic products. Concerns about health, natural diets or environmental issues could stimulate consumption, while retailing dynamism and competition to gain new market segments might favour distribution. Both aspects are investigated through two surveys addressed to consumers and retailers in two Spanish towns. The results confirm that only a small proportion of consumers and distributors show attitudes that might favour demand expansion. The most sensitized segments are willing to pay more for organic products, but this premium is still very far from the prevailing gap between conventional and organic food products.
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Health-related determinants of organic food consumption in a sample of customers of health and natural food stores were compared to those in a nationwide representative household sample. Organic food buyers considered themselves more responsible for their own health and were more likely to undertake preventive health action than the general population. Wholesomeness, absence of chemicals, environment friendliness, and a better taste were the primary reasons to buy organic foods. The customers of health and natural food stores found appearance, ease of preparation, and fitness for slimming less important than the nationwide sample. Stepwise discriminant analyses showed that buyer groups were distinguished best on the basis of education, body mass index, scores on the Health Locus of Control scales, or interest in vegetarianism and naturopathy. The differences between buyers and non-buyers on a multitude of measures suggest that organic food consumption is part of a way of life. It results from an ideology, connected to a particular value system, that affects personality measures, attitudes, and consumption behavior.
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Examines the potential of organic foods in European markets, focusing on consumer demand for organic foods and the possibilities for market expansion.. Aims to assess potential sales, to identify the factors determining buying propensity, and to identify the main market barriers. Identifies the types of consumers who purchase organic foods, classifying them according to socio-economic and demographic characteristics. Elucidates the motives for purchasing and the willingness to pay. Identifies the main market barriers and bottlenecks, and examins the potential for future expansion.
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Interviews examining the food choice process were conducted with 29 adults, primarily individuals making grocery store food choice decisions, who were sampled for their diversity. These people were asked about how they chose foods when shopping and in other settings, and what influenced their choices. Verbatim transcripts of the interviews were analysed using qualitative methods that included constant comparison, concept mapping, and case summaries, and a conceptual food choice process model was developed. Data from the interviews are presented to illustrate the structure of this conceptual model. People's life course experiences affected major influences on food choice that included ideals, personal factors, resources, social contexts and the food context. These influences informed the development of personal systems for making food choices that incorporated value negotiations and behavioral strategies. Value negotiations weighed sensory perceptions, monetary considerations, health and nutrition beliefs and concerns, convenience, social relationships and quality of food choice decisions. Strategies employed to simplify the food choice process developed over time. The conceptual food choice process model represents the rich and complex bases of food practices, and provides a theoretical framework for research and practice in nutrition.
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We designed a questionnaire concerned with attitudes and behaviour towards organic foods, environmentally friendly behaviour (EFB), and perceived consequences of organic food choice in terms of human health, the environment and animal welfare. It was mailed in 1998 to a random nation-wide sample of 2000 Swedish citizens, ages 18-65 years, and 1154 (58%) responded. Self-reported purchase of organic foods was most strongly related to perceived benefit for human health. Performance of EFBs such as refraining from car driving was also a good predictor of purchase frequency. The results indicate that egoistic motives are better predictors of the purchase of organic foods than are altruistic motives.
Article
There have been many studies of what influences consumers in their decisions to purchase or consume organic foods, mainly concerned with fresh organic foods. These show a discrepancy between attitudes and behavior with people being positive about organic foods but often not purchasing them. This discrepancy seems to be explained by the fact that consumers do not consider "organically produced" to be an important purchase criterion, that organic foods are not perceived to surpass conventional foods regarding taste and shelf life (two qualities rated to be of great importance), and because of the perceived premium prices of organic foods. In two Swedish studies, health benefits were demonstrated to be more strongly related to attitudes and behavior toward organic foods than were perceived environmental benefits. A new European Union (EU) project will investigate the influences on both fresh and processed organic foods and investigate the role of moral, ethical, and affective influences on choice across eight EU countries.