Senator Brown asked the Minister representing the Minister for Agriculture, Fisheries and Forestry, upon notice, on 27 August 2002:

Given that the United Kingdom Government has moved to provide 5 million pounds for research into organic farming and is setting up a committee to advise ministers on the implementation of proposals to support organic farming: What has the Australian Government done to support organic farming in terms of: (a) specific financing; (b) research; (c) consumer promotion; (d) recognition and assessment of this industry sector; and (e) export promotion and assistance.

Senator Ian Macdonald (Minister for Forestry and Conservation) —The Minister for Agriculture, Fisheries and Forestry has provided the following answer to the honourable senator's question:

Under Australia's federal system of government, responsibilities for the organic industry are distributed between the Commonwealth government and the state and territory governments. Generally speaking, the Commonwealth has responsibility for the over-arching business environment and international trade while the state and territory governments have more of a “hands on” role in the industry's development, delivered through their various extension services.

(a) Specific financing

In March 2000 the Commonwealth granted the Organic Federation of Australia $158,900 to assist with the design and implementation of an industry strategic plan.

Since 2000, AFFA has provided grants totalling $1,110,040 to the organics industry to assist with 12 projects under the Farm Innovation Program and New Industries Development Programs.

The Department of Transport and Regional Services provided a grant of $550,000 to assist with an organic processing plant. It has also provided assistance for approximately 44 organic projects via the Regional Assistance Programs.

(b) Research

The Commonwealth government funds investment in organic research and development through the Rural Industries Research and Development Corporation's (RIRDC's) Organic Produce Sub-program, which grew out of the Resilient Agricultural Systems Sub-program created in 1996. Initially, $250,000 was allocated to organic R&D each year. Currently, the R&D allocation is $275,000 each year. These funds are Commonwealth funds rather than the production levies which go to the mainstream industry corporations.

The Organic Produce Sub-program has a five year plan developed in partnership with the industry. This plan superseded an earlier one which commenced in 1998.

Since 2000, Horticulture Australia Limited (HAL) has funded 10 organic farming research projects amounting to $211,000. HAL also funds projects in the related areas of environmental management systems, water and soil management and integrated pest and disease management. The budget for these was over $5,000,000 for 2001-02. The Commonwealth's contribution to HAL funded projects is 50% on average.

(c) Consumer promotion

Consumer promotion, apart from assistance in export markets, is a role more appropriate for the organic industry.

(d) Recognition and assessment of this industry sector

The Department of Agriculture, Fisheries and Forestry (AFFA) has been involved with the organic industry since the early nineties. Largely through the Australian Quarantine and Inspection Service (AQIS) it has invested significant resources in the development and maintenance of the National Standard for Organic and Biodynamic Produce.

The National Standard was originally introduced in February 1992 and is used as the standard for the export of products derived from agriculture labelled as organic. It lays down the minimum principles that must be complied with before agricultural products and foods can be placed on the market with labelling which states or implies they have been produced by organic farming systems. The National Standard forms the basis for the Export Control (Organic Certification) Orders 1997, administered by AQIS.

AQIS consults with the Australian organic industry via the Organic Produce Export Committee (OPEC). OPEC, which AQIS provides secretariat services to, provides a forum whereby operational policy, administrative and market access issues are discussed.

A Standards sub-committee (appointed by OPEC) maintains the National Standard. The third version of the Standard is currently being finalised and is expected to be implemented before the end of October 2002.

RIRDC has undertaken two studies, in 1990 and 1996, to assess the value and potential of the organic industry. RIRDC also initiated discussions with an interim national organic industry committee regarding market emergence and potential R&D support for industry.

(e) Export promotion and assistance

Austrade has been encouraging and supporting the efforts of the Australian organic food industry for a number of years. The main target market has been Japan which is the largest market in Asia for organic food.

In 1997 Austrade conducted a large seminar in Tokyo to launch Australian organic food into the market. Since then organic food exporters have been assisted in Japan with introductions to buyers, qualified opportunities and participation in food exhibitions such as the annual Foodex promotion. Austrade has also assisted the organic industry with in-market support at the large German organic food exhibition, Biofach.

Organic producers also benefit from the other Austrade assistance available to all Australian exporters, such as market research services, new exporter advice and the Export Market Development Grants Scheme.

Austrade also assists by introducing overseas buyers involved in incoming missions to organic food suppliers.

AQIS assists with the export of Australian organic produce by working towards increased recognition of Australia's system of organic certification by other countries and gaining access for the organic industry to offshore markets.

The Export Control (Organic Certification) Orders 1997 make it illegal to export organic produce without a government-to-government certificate that verifies the nature and trade description of the product. They also allow for the seven AQIS Approved Certifying Organisations to issue Organic Produce Certificates that accompany the produce to its overseas destination.

AQIS audits the Approved Certifying Organisations to ensure they comply with the requirements of the Standard, the Export Control (Organic Produce Certification) Orders 1997 as well as importing country requirements.

State governments provide export promotion and assistance as well, through trade promotion offices and locally based agricultural extension officers.