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August 2016

AUSTRALIAN ORGANIC MID-YEAR REPORT

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"TO ALL MEMBERS AND CLIENTS FOR YOUR CONTINUED SUPPORT."The Australian Organic Board, CEO and Staff

COMING SOON!

THANK YOU

CONTENTS

03 INTRODUCTION

04 CERTIFICATION & COMPLIANCE

06 IMPORTANT CERTIFICATION NEWS

07 EXPORTS

09 MARKET GROWTH & DEVELOPMENT

10 FINANCE

11 MEMBERS

12 AGM & AUSTRALIAN ORGANIC ANNUAL AWARDS FOR

EXCELLENCE

15 AUSTRALIAN ORGANIC SCHOOLS

16 EVENT HIGHLIGHTS

18 OTHER EVENT HIGHLIGHTS

19 PUBLICITY, SOCIAL MEDIA AND COMMUNICATIONS

20 AUSTRALIAN ORGANIC AWARENESS MONTH 2015

21 AUSTRALIAN ORGANIC AWARENESS MONTH 2016

AUSTRALIAN ORGANIC MARKET REPORT 2016

CONSUMER EDITION

australian organic market report 2016

“We want people to understand that if you want to buy organic, then you need to look for a certified organic logo like our ACO Bud logo. This is your 100 percent guarantee that you are buying real, honest organic products.”

Paul Stadhams, CEO, Australian Organic Ltd.

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OUR GROUP IS HOST TO OVER 2,000 CERTIFIED ORGANIC BUSINESSES, WITH SOME 80% OF END LABEL USERS AFFIXING THE MUCH COVETED BUD LOGO ON THEIR CERTIFIED PRODUCTS IN AUSTRALIA; A GREAT AUSTRALIAN ACHIEVEMENT TO BE PROUD OF!

While committing our resources to ACO to deliver world leading certification services, ensuring what is claimed organic under your logo IS organic, we have been working hard to educate the public about the certified organic message and what your organic certification logo means.

We will continue to provide superior quality certification and membership services that:

CLIENTS recommend, CONSUMERS demand, MEMBERS want to support and EMPLOYEES are proud of.

INTRODUCTION

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CERTIFICATION & COMPLIANCE

ACO TESTING IN THE SPOTLIGHT

ACO conducts sampling of both soil and certified products during onsite inspections and from the marketplace. This testing looks at organochlorides, organophosphates, triazines, synthetic herbicides & fungicides and heavy metals such as arsenic, lead, chromium and mercury. The aims of these tests are to ensure

that the organic certification principles are being adhered to and add another layer of third party verification for the consumer that the products they are purchasing are indeed certified organic.

ACO will also be focusing product testing on imported products and packaging contamination to ensure products coming from overseas are meeting Australian Certified Organic requirements.

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COMPLIANCE CHECKS

THESE COMPLIANCE CHECKS INCLUDE:

• Audits; • CRC reviews; • Residue testing;• OPCs and Transaction

Certificates;• Label and Product

approvals;• Propagative material

assessments;• Raw material assessments

and inputs.

• 3 day new auditor training course held in February 2016.

• In June 2016, ACO held an information exchange at Head Office in Brisbane to discuss labelling of organic cosmetics. A follow up questionnaire was forwarded in August to all organic cosmetic clients.

• ACO newsletter has been introduced. Emailed quarterly, copies will also be available via the website.

• New ACO Certified Organic logo introduced for products not 100% Australian origin, in line with new Australian labelling laws.

• Renewal auditor training took place in Brisbane from 26th-27th July 2016. 25 auditors and 11 staff attended.

• Additional auditors have been contracted.

“THERE IS A SIGNIFICANT AND UNDENIABLE GROWTH IN THE POPULARITY OF ORGANIC PRODUCTS, AND NOW, MORE THAN EVER, AS THE LEADING BODY IN THE INDUSTRY, WE ARE MAKING IT A PRIORITY THAT ALL AUSTRALIANS UNDERSTAND WHAT MAKES AN ORGANIC PRODUCT JUST THAT – ORGANIC.”

Paul Stadhams, CEO, Australian Organic Ltd

OVER19900COMPLIANCE CHECKS THIS FINANCIAL YEAR

AVERAGINGOVER

1600COMPLIANCE CHECKS PER MONTH!

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IMPORTANT CERTIFICATIONNEWS

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EXPORTS

ORGANICPRODUCECERTIFICATES/TrANSACTION CERTIFICATES APPROVED IN LAST FINANCIAL YEAR!

OVER 4300 INCREASE

IN EXPORT APPROVALS

33%2015/16 FINANCIAL YEAR EXPORT STATS:

TOP 5 EXPORT COUNTRIES/REGIONS:1. North America

2. Singapore

3. Europe

4. Hong Kong

5. Japan

TOP 5 EXPORTED PRODUCTS:1. Meat

2. Processed foods

3. Fruit & Vegetables

4. Wine and beverages

5. Dairy

5000

4500

4000

3500

3000

2500

2000

1500

1000

500

0

2014/15 2015/16

OPCS/TRANSACTION CERTIFICATES ISSUED

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• USDA NOP program ]17%• Chinese Certification program ]50%.• Investment in product testing ]5%.• Discounts given to clients on audit

invoices $100,000+ ]8.3%• Postage and stationery – combined

saving of $8,000 achieved using sustainable practices.

• Switched to 100% offset Green electricity.

• Introduced CRI Certification, implementing sustainable practices into everyday operations.

MARKET GROWTH & DEVELOPMENT

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ACO provides market access around the world including:

BFAREGISTEREDPRODUCT

APPROVED PRODUCT 3052AP

FINANCE

$100K+OFFSET GREEN ELECTRICITY

100% DiSCOUNTS ON

AUDiT iNVOiCES

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INTRODUCTION OF MEMBER REWARDS PACKAGE

The Australian Organic Member Rewards Package has been released offering over 110,000 discounts Australia and New Zealand wide. Savings can be made at both Qantas and Virgin Departure Lounges, car hire and accommodation, as well as being the only rewards program in Australia to offer exclusive savings on your favourite ACO products! Visit the Members Tab of the austorganic.com website for further information. Please make sure you register to start enjoying your rewards today!

NEW DIGITAL MEMBERSHIP CARD

After registering for the Australian Organic Member Rewards, members can download the special members’ app, via iPhone or Android, which encompasses your new electronic membership card. As well as always having easy access to your membership number, the card will also provide mobile access to the discounts.

The Awards were hosted by 2015 Australian Organic Awareness Month ambassador Zoe Naylor. Zoe was the face of Australian Organic's 2015 consumer service announcement. It was great to see such a large number of members and clients attend. Please visit the Australian Organic website to view a gallery of the pictures from the night.

MEMBERS

ONLINE MEMBERSHIP RENEWAL/APPLICATION VIA AUSTRALIAN ORGANIC WEBSITE

Australian Organic introduced a new payment option for applying and renewing memberships online. Members opting to use this service can update their contact details simultaneously.

ANNUAL AWARDS FOR EXCELLENCE

AGM AND AUSTRALIAN ORGANIC

THE 2015 ANNUAL GENERAL MEETING AND ANNUAL AWARDS FOR EXCELLENCE TOOK PLACE AT THE LOCKYER VALLEY CULTURAL CENTRE, GATTON, QUEENSLAND ON NOVEMBER 27TH.

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THE EVENING RECOGNISED THE ACHIEVEMENTS OF OUR GROWING INDUSTRY AND SHOWCASED THOSE WHO HAVE HELPED ITS CONTINUED GROWTH, INCLUDING INDIVIDUALS, BUSINESSES AND STANDOUT CERTIFIED ORGANIC PRODUCTS.Dr Andrew Monk Chair, Australian Organic

It was exciting to see so many of the ACO Group clients entering the awards last year. The judges were overwhelmed with the quality and quantity of nominations. The 2015 winners were...

YOUNG ORGANIC LEADER

GOLD Brynley King – Nature Pacific Pty Ltd – QLD/FIJI

SILVER Brooke Howell – The Yalumba Wine Company – SA

BRONZE Will Magin – Bill’s Certified Organic Health Bakery – NSW

EXPORT MARKET LEADER

GOLD Arcadian Organic and Natural Meat Company – QLD

SILVER Kialla Pure Foods Pty Ltd – QLD

BRONZE Murray River Organics Pty Ltd – VIC

INDEPENDENT RETAILER OF THE YEAR

GOLD Bhumi Organic Cotton – VIC (ON-LINE STORE)

GOLD Wray Organic – QLD (RETAIL STORE)

SILVER Nebo Organics – QLD

BRONZE Sherwood Road Organics Pty Ltd – QLD

MANUFACTURER OF THE YEAR

GOLD Loving Earth Pty Ltd – VIC

SILVER Barambah Organics – QLD

BRONZE Yangarra Estate Vineyard – SA

WHOLESALER/TRADER OF THE YEAR

GOLD Eco-Farms Pty Ltd – NSW, VIC, QLD

SILVER United Organics – QLD

BRONZE Kialla Pure Foods Pty Ltd – QLD

ORGANIC INDUSTRY LEADERSHIP

GOLD Therese Kerr – The Divine Company – NSW

SILVER Gary Leeson – Organic Crop Protectants – NSW

BRONZE Nicole and Harvey Giblett – Newton Orchards – WA

FARMER/S OF THE YEAR

GOLD Donald Murray – Nature’s Haven – QLD/NSW

SILVER Joan and David Cook – Dandaragan Organic Beef – WA

BRONZE Natasha and Wayne Shields – Peninsula Fresh Organics – VIC

BEST CERTIFIED ORGANIC PRODUCT – NON FOOD

GOLD Vanessa Megan – NSW Nature’s Elixir Face Oil (N.E.O)

SILVER Mount Horrocks Wines – SA Mount Horrocks Watervale Riesling

BRONZE Kalleske Wines Pty Ltd – SA Kalleske Johann Georg Shiraz

BEST CERTIFIED ORGANIC PRODUCT – FOOD

GOLD Cleaver’s Organic – NSW Paleo Beef Sausage

SILVER five:am – VIC New Yoghurts & Cereals Range

BRONZE Murray River Organics Pty Ltd – VIC Gobble range

CHAIRMAN’S AWARD 2015

Richard McDougall, Whetstone Organics – QLD

HALL OF FAME 2015

Geoff Steinicke

David Williams

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ORGANIC FOR BODY, BRAIN AND BOUNCE:

A unit of work (including background information, lesson plans, activity sheets and extra resources) aimed at educating students about good nutrition and the benefits of consuming Australian certified organic produce and products.

FROM THE FARM TO ME:

Two units of work:1. 'Organic farming’ that

introduces the process of becoming an Australian Certified Organic producer and explains organic farming.

2. 'Where does my food come from?’explores the origins of food (from the farm to the consumer).

SCHOOLS

CURRENTLY, CLASSROOM TEACHERS OF ALMOST 200,000 STUDENTS THROUGHOUT AUSTRALIA ARE REGISTERED FOR THE AUSTRALIAN ORGANIC SCHOOLS PROGRAM.

New curriculum based units of work are now live on the website. These topics include:

EVENT HIGHLIGHTS

AUSTRADE WORKSHOP AND NETWORKING EVENT, SHANGHAI

The Austrade Workshop and Networking Event were held exclusively for Australian SIAL China 2016 exhibitors. The event was attended by Australian SIAL exhibitors, members of the China Australia Food Importer’s Network (CAFIN) and an Austrade curated network of more than 50 professional importers and distributors of Australian food and beverage.

WHAT A SUCCESS!This year’s Asian Tour, held in May, was an overwhelming success!

AUSTRALIAN ORGANIC

Close to

200,000STUDENTS

PARTICIPATING

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MARCH – US TOUR

The US Tour commenced with two days at one of the largest trade shows of its type, Expo West in Anaheim, continuing to various large scale organic operations near LA and San Francisco, including various retail outlets (Wholefoods, etc). The tour also provided a unique opportunity to view the world’s largest organic market.

MARCH - Natural and Organic Super Show (Consumer), Melbourne.

MAY - Naturally Good (Trade), Sydney.

JUNE – Co-Host, 2016 National Horticulture Convention, Gold Coast.

2015/16 FINANCIAL YEAR- Client and member visits by Staff and Board took place in QLD, NSW, SA, TAS, VIC and WA.

EVENT HIGHLIGHTS

OTHER

SIAL CHINA

The 2016 exhibition for SIAL China was attended by over 66,000 visitors and over 2,000 exhibitors from around the world. Australian Organic’s stand was shared with 9 ACO certified organic businesses and was visited by several high-profile government officials throughout the event, representing both Australia and China.

HONG KONG RETAIL TOUR

The tour consisted of 22 ACO clients touring Hong Kong by bus, visiting some of the city's largest retailers. The Retail Tour was a great experience for all clients involved as an exclusive platform to meet and greet popular retail stores and chains in Hong Kong.

EXPRESSION OF INTEREST – 2017 TOUR

Whilst the events for 2017 are still under development, we wish to invite you to express your interest to join us on a Tour in 2017. If you would like to put your name on the list early, please email contact@austorganic.com or (07) 3350 5716.

EVENT HIGHLIGHTS

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PUBLICITY, SOCIAL MEDIA AND COMMUNICATIONS

AWARENESS MONTH 2015

AUSTRALIAN ORGANIC

THROUGH SECURING ADDITIONAL HIGH PROFILE AMBASSADORS, CREATING A CONSUMER AWARENESS TV COMMERCIAL, AND IMPLEMENTING A CONSUMER TARGETED SOCIAL MEDIA CAMPAIGN, THE RESULTS MORE THAN DOUBLED FROM THE PREVIOUS YEAR.

The 2015 AOAM campaign achieved a saved media value of $1.48 million (increase of around $615,000), a media impression of 46 million (increase of almost 20million) and increased the social followers by 22,000.

THIS SEPTEMBER

OVER THE LAST FINANCIAL YEAR, AUSTRALIAN ORGANIC HAS SEEN AN INCREASE ACROSS THE BOARD IN RELATION TO THE COMMUNICATIONS INTERNALLY AND EXTERNALLY.

EOFY MEDIA STATS

• Australian Organic social media followers ]50%

• Average Facebook views ]70%

• The media value in the last 12 months increased by more than double, reaching $1.5m in saved media.

• 96 million media impressions achieved in 15/16 EOFY.

Results based off EOFY dates: 14/15 – 1st July 2014 to 30th June 2015 and 15/16 – 1st July 2015 to 30th June 2016

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AWARENESS MONTH 2016

AUSTRALIAN ORGANIC

Our Ambassadors and Supporters for this year’s campaign are Australian Organic Goodwill Ambassadors: Pete Evans, Therese Kerr, Carla Oates, Teresa Cutter and Costa Georgiadis; with the addition of many new Supporters including: McLeod’s Daughters’ actress Zoe Naylor, Hi 5’s Dayen

Zheng, Adele McConnell (the voice of Vegiehead), founder and editor of Natural Beauty Expert Belinda Hughes, founder of My Balance & Wellness Sarah Hawthorne, entrepreneur and founder of Amazonia Dwayne Martens, and Chef to the Stars Kate McAloon.

OURVALUES

SERVICE

INTEGRITY

ACCOUNTABILITY

COLLABORATION

GROWTH

To use our unique gifts, skills and abilities to delight our clients

To adhere uncompromisingly to moral and ethical principles; soundness of moral character; honesty.

To maintain a reciprocal balance of tasks and assignments with others so that everyone is held accountable for the outcomes of the group.

To work cooperatively with a common purpose, sharing responsibility and accountability.

To creatively enable Australian Organic to change and grow sustainably.

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18 Eton St (PO Box 810), Nundah QLD 4012P (07) 3350 5716

austorganic.com