Understanding those other operators matters when assessing the industry’s size, developing policy or identifying where support is needed.
A national study conducted by KG2 for the Australian Government examined 358 organic operators, including certified and uncertified businesses. It explored their production practices, commercial circumstances and expectations for growth.
One finding stood out: 45% of uncertified operators believed compulsory certification would be useful. Yet uncertified producers also identified cost, limited commercial benefits and administrative requirements as barriers to becoming certified.
The findings reveal how support for stronger organic assurance can coexist with practical concerns about participating in certification.
Research note: This article revisits research conducted in December 2021 and published in February 2022. Findings reflect respondents’ circumstances and attitudes at that time.
The Department of Agriculture, Water and the Environment commissioned the research to better understand organic operators, including smaller and uncertified businesses.
Among the 358 operators surveyed, 62% were certified organic and 38% were uncertified. These percentages describe the survey sample, rather than the national distribution of organic businesses.
The report also examined the potential size of the uncertified sector. Its analysis compared 4,178 certified operations reported in the Australian Organic Market Report 2021 with approximately 6,300 organic records held in KG2’s database at the time.
From this comparison, the report estimated 2,122 uncertified operators. This was an indicative estimate based on the two sources, rather than a verified national population count.
Small businesses were prominent among respondents: 68% described their operation as small, using their own definition of size, while just 8% described it as large.
The research highlighted why certification counts alone provide an incomplete picture of organic activity in Australia.
Certification needed a clearer commercial return
For uncertified producers, the most frequently reported reason for remaining uncertified was cost, mentioned by 30%. Other reasons included:
The administrative commitment was also evident among certified producers. Preparing for audits was a main business cost for 47%, followed by certification fees for 40%.
These findings suggest that participation involves a business calculation as well as a willingness to meet standards. Operators need to weigh the expense and work involved against the value certification could bring to their operation.
Only 13% of uncertified producers had previously been certified. Most were therefore describing barriers to entering certification, rather than reasons for leaving it.
Uncertified did not necessarily mean opposed
Overall, 60% of respondents believed a compulsory certification scheme would be useful. Agreement reached 69% among certified operators and 45% among uncertified operators.
Respondents identified reducing false organic claims and requiring businesses making organic claims to be certified as reasons for seeing value in a compulsory scheme.
However, uncertified operators also expressed concerns about individual choice and higher fees.
This distinction matters when interpreting attitudes towards certification. An operator could recognise benefits for the industry while remaining concerned about the consequences for their own business.
The findings point to a need to consider confidence in organic claims alongside the affordability and practical demands of certification.
Uncertified operators were more likely to sell directly to consumers: 71% did so, compared with 50% of certified operators.
Certified businesses were more likely to supply retailers, at 63% compared with 55% of uncertified operators. More than half of certified operators (57%) also supplied organic processors.
These differences provide context for how operators might assess certification’s commercial value. A business selling directly to customers may face different expectations from one supplying retailers or processors. The survey does not establish that certification caused these differences in sales channels.
Operational practices also varied. Among respondents running parallel organic and conventional production, 93% of certified operators reported separating the two, compared with 50% of uncertified operators.
Self-assessed knowledge followed a similar pattern. Some 74% of certified operators rated their knowledge of certification requirements at eight out of ten or higher, compared with 30% of uncertified operators.
For certification bodies, this suggests practical guidance should account for differences in operators’ knowledge, production arrangements and customer relationships.
Growth expectations came with production constraints
At the time of the survey, 60% of operators expected their organic production to increase over the following five years. This measured their expectations in December 2021, rather than growth subsequently achieved.
Weed control and the lack of herbicide options were the most frequently reported production problem, mentioned by 21%. Labour and access to organic raw materials or certified inputs followed, each at 14%.
Meanwhile, 65% of respondents believed organic farming was more expensive.
The combination of optimism and operational pressure identifies useful areas for further investigation. Tracking production intentions alongside weed management, labour requirements and input availability would help explain what enables expansion and what holds it back.
What the findings mean for government and industry
The study offers several practical considerations for organisations working with the Australian organic industry.
For government agencies, research and consultation need to include businesses outside certification records. Their experiences can help inform a fuller assessment of industry needs and potential policy impacts.
For certification bodies, the findings suggest value in addressing administrative demands and explaining the commercial relevance of certification to different business types.
For industry organisations, support may need to reflect differences in scale, production systems and sales channels. Small operators selling directly to consumers may have different priorities from businesses supplying processors or retailers.
Future research could revisit these groups to establish how their circumstances have changed and whether earlier growth expectations were realised.
Understanding the industry through its operators
KG2’s research showed that certification status alone could not explain the decisions organic businesses were making.
Costs, customer relationships, production practices and confidence in organic claims all formed part of the picture. Including certified and uncertified operators made those differences visible.
That remains a useful principle for industry research: understanding a sector requires hearing from businesses across its different operating models, including those less visible in established reporting systems.
KG2 conducted computer-assisted telephone interviews with 358 organic operators across every state and the Northern Territory in December 2021, drawing the sample from its agriculture database.
Respondents included 325 producers and 127 operators in processing or other non-farming activities. Categories overlapped because some businesses undertook both. The report’s broader processing category included retailing, wholesaling, exporting, storage and transport.
KG2 completed the data collection, analysis and reporting. The department published the final report in February 2022.