Biological Farmers of Australia (BFA) says the acquisition of the independent organic retail outlet Macro Wholefoods by major supermarket chain Woolworths is a sign the organic industry is gathering momentum.
Woolworths announced the purchase this week of the eight-store Macro chain.
It will now be rebranded as Thomas Dux Grocer, an incorporated into the fresh grocer/deli launched by Woolworths last year, which currently operates two stores in Sydney's Lane Cove and Paddington.
“Increasing interest in organic foods from major and mainstream retailers confirms recognition that this industry holds a promising future,” says Dr Andrew Monk, BFA director and Standards Committee convenor.
“This recent sale clearly shows leading retailers are acknowledging the benefits in integrating organic into their broader market offering.”
He says organic is becoming harder for major operators to ignore, with the retail value of the organic market reported at approximately $600 million last year.
“Organic is growing on both fronts. Small operators remain an integral part of the industry, as consumers seek to re-connect with food at farmers and local markets in economically tighter times.
“In addition, organic is now also proving it has the capacity to embrace the mainstream food market.
“Major brands are now offering certified organic lines and major retailers are looking for organic products to place on shelf.”
Dr Monk says resources and skills of professional retailers in the organic market will be valuable and should “allow medium and larger sized organic producers more volume and certainty in demand".
He says an increasing uptake of certified organic by retailers is also allowing more consumers to access organic items than ever before.
“It is all about expanding the range and availability of organic products for consumers.
"Certified organic is proving it is here for the long term.”
Macro Wholefoods was originally founded by “Billboard King” Pierce Cody.