Greener pastures: Strong revenue growth has attracted new players to the industry

The Organic Farming industry produces a variety of products including beef, fruit, vegetables and poultry. These products are free from artificial chemicals, pesticides and fertilisers, or genetically modified organisms. Global demand for organic produce is rising due to increasing health concerns about food. Industry revenue is expected to grow at an annualised 7.4% over the five years through 2017-18, to $741.8 million. However, industry revenue is anticipated to decline by 3.5% in 2017-18. The level of annual rainfall is projected to fall significantly in 2017-18, which is expected to reduce industry production.Australia has the largest area of organic farmland in the world, covering more than 22.0 million more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Retailers and restaurants are selling an increasing number of organic products
  • Consumers that purchase their groceries online for home delivery are a significant market
  • Domestic demand for organic food and produce is projected to continue growing strongly
  • Industry Report - Industry Investment Chapter

    The industry’s wage costs indicate a highly capital-intensive industry, with $0.59 of capital investment required for each dollar spent on labour. However, owner-operators carry out a significant portion of labour tasks required by the industry. These farmers often rely on drawings from profit for income and do not pay themselves a traditional wage. Consequently, the industry’s wage expenses under-represent the actual cost of labour. Despite this, even when the cost of imputed wages is accounted for, it is clear the industry’s capital requirements are high. Thus, the industry is expected to be highly capital-intensive...purchase to read more.

    Additional Insights for the Organic Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Organic Farming Industry are

  • Access to high quality inputs
  • Prompt delivery to market
  • Appropriate physical growing conditions
  • IBISWorld analysts also discuss how external factors such as Level of annual rainfall and Health consciousness in the Organic Farming industry impact industry performance..

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    What's in this report

    What is the Organic Farming Industry?

    Industry farms primarily produce organic fruits, vegetables, grains, other crops or livestock. Organic farming is free of synthetic chemicals, pesticides, fertilisers, or genetically modified organisms. This report focuses on producers that are certified organic by any of the organic certification organisations.

    Industry Products
  • Vegetables and herbs
  • Fruit
  • Beef cattle
  • Milk
  • Other livestock
  • Grains
  • Other products
  • Industry Activities
  • Fruit and vegetable growing
  • Livestock farming
  • Grain and oilseed production
  • Honey production
  • Nut production
  • Other crop production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Level of annual rainfall
  • Health consciousness
  • Public concerns over environmental issues
  • Real household disposable income
  • Demand from food product manufacturing

  • Current Performance
  • Organic goes mainstream
  • Price of produce
  • Farm trends
  • Alliances and integration
  • Chart: Revenue Growth

  • Industry Outlook
  • Supply boost
  • Downstream markets
  • Prices and structure
  • Table: Organic Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Organic Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Meat Processing
  • Poultry Processing
  • Milk and Cream Processing
  • Fruit and Vegetable Processing
  • Cereal Grain Wholesaling
  • Fruit and Vegetable Wholesaling
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Agricultural Machinery Manufacturing
  • Livestock and Other Agricultural Supplies Wholesaling
  • Organic Farming

  • Products & Services
  • Beef cattle
  • Grains
  • Milk
  • Other products
  • Vegetables and herbs
  • Fruit
  • Other livestock
  • Chart: Organic Farming Industry Products and Services Segmentation

  • Demand Determinants
  • Price
  • Consumers

  • Major Markets
  • Processors
  • Wholesalers
  • Retailers
  • Farmers' markets
  • Export markets
  • Other producers and cooperatives
  • Consumers
  • Chart: Major Market Segmentation for the Organic Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Organic Farming

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Organic Farming Industry

  • Industry Globalization
    OBE Beef Pty Ltd,
  • Table: OBE Beef Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Organic Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Organic Farming Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Refers to the price the farmer receives for their produce. This represents farm revenue.
  • Genetically Modified
  • Plants and animals that have had their genome modified through genetic engineering techniques.
  • Imputed Wages
  • The estimated labour input of the farm owner, their partner and/or family members, based on hours worked and wages outlined in the Federal Pastoral Industry Award.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Organic Farming market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
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    This report on Organic Farming:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Organic Farming market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Organic Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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