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Demand for Organic Food: Focus Group Discussions in Armidale, NSW

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  • Zepeda, Lydia
  • Chang, Hui-Shung (Christie)

Abstract

In Australia, the retail value of organic food production was estimated at A$250 million, with farm gate value at around A$90 million, and exports at around A$40 million. The current share of organic sales in total food sales in Australia is about 1 per cent. The growth rate in organic production was forecast to continue at 10-30% per annum. Despite the positive outlook, there are concerns about consumer confusion over product recognition, organic certification, and misleading advertising. To understand how demand for organic products is changing, it is important to investigate consumer attitudes and knowledge about these issues. The objective of this study is to identify issues that may hinder or promote demand. Given the qualitative nature of these issues we use a focus group study to probe consumers. The results suggest that consumers are in general concerned about the use of chemicals, the treatment of farm animals and the environment impact of food production. Organic food consumers are more knowledgeable about organic foods as well as being more tolerant of higher prices and inaccessibility. The results also suggest that increasing consumers' awareness of organic farming and certification as well as the availability of organic foods may be the most effective ways of moving organic foods into mainstream.

Suggested Citation

  • Zepeda, Lydia & Chang, Hui-Shung (Christie), 2004. "Demand for Organic Food: Focus Group Discussions in Armidale, NSW," Working Papers 12926, University of New England, School of Economics.
    • Handle: RePEc:ags:uneewp:12926
    DOI: 10.22004/ag.econ.12926
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    References listed on IDEAS

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    1. Oddveig Storstad & Hilde Bjørkhaug, 2003. "Foundations of production and consumption of organic food in Norway: Common attitudes among farmers and consumers?," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 20(2), pages 151-163, June.
    2. Gary D. Thompson & Julia Kidwell, 1998. "Explaining the Choice of Organic Produce: Cosmetic Defects, Prices, and Consumer Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 277-287.
    3. Dimitri, Carolyn & Greene, Catherine R., 2002. "Recent Growth Patterns In The U.S. Organic Foods Market," Agricultural Information Bulletins 33715, United States Department of Agriculture, Economic Research Service.
    4. Donaghy, Peter & Rolfe, John & Bennett, Jeffrey W., 2003. "Consumer demands for organic and genetically modified foods," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57862, Australian Agricultural and Resource Economics Society.
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    Cited by:

    1. Guanghua Han & Xujin Pu & Bo Fan, 2017. "Sustainable Governance of Organic Food Production When Market Forecast Is Imprecise," Sustainability, MDPI, vol. 9(6), pages 1-20, June.
    2. Chang, Hui-Shung (Christie) & Zepeda, Lydia & Griffith, Garry R., 2005. "The Australian Organic Food Products Market: Overview, Issues and Research Needs," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 13.

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