With the growth in global demand for Certified Organic beef products far outstripping supply capacity, industry funds are being directed into a program designed to assist livestock producers to convert to Organic status.

A new project launched this month will enable conventional beef producers to convert to Organic status by providing assistance through the certification process and training in organic livestock and land management.

The project is being funded jointly by Meat & Livestock Australia via the MLA Donor Company (MDC) and meat supply chain manager and exporter, Australian Organic Meats.

The project also aims to establish benchmarks for the financial benefits of organic production, and to help fill the present Organic beef supply gap.

“Our customers are estimating that they will need more organic beef than we can currently supply,” said AOM Group director Simone Tully.

Ms Tully said domestic and export consumer demand for Certified Organic beef and products in general is growing and placing pressure on current supply.

 “Our international customers are really pushing us to get more producers on board in order to meet the demand for clean, Australian Organic beef,” she said.

“We have one large US food service customer alone who estimates that by 2016, they will need the equivalent of 15 containers per month of certified Organic beef trimmings, to keep up with growth in demand.”

Industry estimates suggest there are currently around 300,000 cattle in Australia managed under Certified Organic principles by only 196 certified producers, producing about 50,000 certified slaughter cattle each year.

By comparison, Uruguay currently runs about 500,000 head of Certified Organic cattle, and plans to increase its yearly kill by 30-40pc by 2015.

“We’re fielding inquiries from some potentially very large international customers, but currently we just don’t have the supply-side capability,” Ms Tully said.

MLA’s manager for on-farm production Dr Wayne Hall said the MLA Donor Company was partnering in the project in order to get firm data on the cost-benefits of Organic beef production.

“The premiums for organic beef are large, but there is limited data on the costs of conversion. This project will enable producers to access the necessary information to make sound business decisions and to assess the risks involved in conversion to Organic status,” Dr Hall said.

“It will also generate industry extension materials which will be valuable for the entire beef industry.”

Certified Organic beef supply chains last week were offering 430c/kg dressed weight for eligible steers, against a conventional cattle market set by Southeast Queensland processors last week at 308-315c/kg for four-tooth grassfed steer. That’s at least a 36 percent price premium.

According to project manager, Marg Will from Organic Systems & Solutions, the decision and process to convert to Organic production could be confusing for some producers

“This project will not only make the process simpler, but provide extension materials for future use,” she said.

The two-year project has set a target of enlisting another 100 commercial cattle producers across Queensland, NSW, Victoria and later, WA, with an aim to producing an additional 30,000 certified carcases each year.

 “Beef producers as a whole will gain information that will assist their businesses to make any changes as a result of consumer-driven demand for Organics in the coming years,” Ms Will said.

Organic Systems and Solutions operates across South-east Asia and sees increasing demand for organic products at the retail and food service coalface. “Our retail clients in Asia want more Organic products from Australia in order to meet their consumers’ preferences, and our manufacturing clients in Asia want to process more food products carrying an Organic label.

“It’s that simple, and the Australian Beef Industry is well-placed to meet that growth.”

• More information on the project can be found here 
• View Beef Central’s earlier article on Australian Organic Meats export work here, and a case study on a US food service customer here.