AUSTRALIA'S organic industry is set for an income boost of up to $100 million a year after the signing of a world-first trade access agreement with China.
Under the deal - signed in Adelaide on Monday - between the National Association for Sustainable Agriculture, Australia and Chinese organic certification body Beijing WuYue HuaXia Management and Technique Centre, known as CHC, Australian inspectors will be able to assess local organic operators for export to China. The deal offers significant cost and time benefits to local producers.
NASAA general manager Ben Copeman said the agreement was one of the biggest initiatives launched in the Australian organics industry.
"NASAA and CHC's agreement on organic market access into the highly lucrative Chinese market is the first of its kind in the world," Mr Copeman said.
"Outside of China, NASAA's certification arm NASAA Certified Organic is the only organisation authorised to undertake inspections to facilitate certification to the Chinese organic regulation.
"It will save Australian operators thousands of dollars and months of paperwork in exporting their organic products to China. NASAA - trained and CHC - approved inspectors in Australia will audit certified operators, write the various reports, and our China-based partners assess and approve the application.
"We estimate the time to become certified will be reduced from four to five months to 30 to 40 days, and I estimate the cost savings will be at least 50 per cent, but for some operators it might be as high as 75pc."
NASAA chairman Jan Denham said organic farming was the fastest-growing sector in Australian agriculture.
"The Australian organic market experienced 15pc growth between 2008 and 2010, and now has a value in excess of $1.27 billion," she said.
Mr Copeman said the agreement could add between $60m and $100m a year to the value of the sector, with various industries to benefit.
"There is no specific organic product that's going to benefit more than any other," he said. "I see the organic beef industry as being major recipients, as well as organic wine, dairy and processed food products like baby food.
CHC chairman Zhao Chen said Australian products would prove popular with Chinese consumers.
"Chinese people are demanding more and more food, especially organic food," he said. "It is a big market opportunity for all Australian operators because China has 1.3 billion people. "
* Full report in Stock Journal, March 20, 2014 issue.
Jacinta Rose
Stock Journal's online editor.
Stock Journal's online editor.
