o r g a n ic a g r i c u lt u r e in th e m a r k e t p la c e lo n g b e f o r e t h e a d v e n t o f g o v e r n m e n t r e g u la t io n .2 26 T h e r e is n o c o m p e llin g e v id e n c e t o s u g g e s t t h a t a g o v e r n m e n t r e g u la t e d d o m e s tic s ta n d a r d is n e c e s s a r y t o e s t a b lis h th e c r e d ib ility o r le g it im a c y o f th e A u s t r a lia n o r g a n ic in d u s tr y in th e e y e s o f A u s t r a lia n c o n s u m e r s o r t o p r o m o t e in d u s t r y g r o w th . O n th e c o n t r a r y , t h e e v id e n c e s u g g e s t s t h a t p r iv a t e o r g a n ic o r g a n is a t io n s a r e a lr e a d y p e r fo r m in g th is r o le e ff e c tiv e ly . R e s e a r c h r e c e n tly c o n d u c t e d b y P a u ll f o u n d th a t A u s t r a lia n c o n s u m e r s c o u ld c le a r ly d is t in g u is h b e tw e e n fo o d p r o d u c t s t h a t w e r e m e r e ly s e lf- p r o c la im e d o r g a n ic fr o m p r o d u c ts la b e lle d a s b e in g ‘c e r t if ie d o r g a n ic ’ i.e . in d e p e n d e n tly a u d it e d a n d c e r tif ie d b y a t h ir d - p a r t y o r g a n is a tio n . H e fo u n d t h a t , o n a v e r a g e , s e lf- p r o c la im e d o r g a n ic f o o d p r o d u c ts a t tr a c te d a p r ic e p r e m iu m o f 8 .1 2 % o v e r th e ir n o n - o r g a n ic e q u iv a le n t , w h e r e a s c e r t ifie d o r g a n ic p r o d u c t s ( d is p la y in g a n in d e p e n d e n t o r g a n ic c e r t ific a t io n o r g a n is a t io n ’s lo g o ) a tt r a c t e d a n a v e r a g e p r ic e p r e m iu m o f 1 5 .6 3 % . 227 O n e o f A u s t r a lia ’s la r g e s t a n d m o s t in f lu e n t ia l in d e p e n d e n t c o n s u m e r o r g a n is a t io n s C h o ic e n a m e d A u s t r a lia n C e r t ifie d O r g a n ic ( A C O ) a s t h e w in n e r o f its in a u g u r a l a w a r d f o r ‘b e s t f o o d e n d o r s e m e n t p r o g r a m ’. N A S A A , th e s e c o n d la r g e s t o r g a n ic A u s t r a lia n o r g a n ic s c h e m e b e h in d A C O , w a s th e r u n n e r u p . T h e a w a r d w a s ju d g e d b y a n e x p e r t p a n e l o n c r it e r ia o f t r a n s p a r e n c y ; c o n s u m e r f r ie n d lin e s s ; n o c o n flic t o f in t e r e s t; s t a k e h o ld e r e n g a g e m e n t; a c c e s s ib ilit y t o b u s in e s s e s o f a ll s iz e s ; a n d
226
P. Kristianson and M. Merfield (2006) op cit
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in d e p e n d e n t v e r if ic a tio n . O t h e r c o n t e n d e r s s h o r t lis t e d f o r th e a w a r d in c lu d e d : D o lp h in S a f e , F a ir T r a d e ; H e a r t F o u n d a t io n T ic k ; R S P C A A p p r o v e d F a r m in g S c h e m e ; a n d F r e e R a n g e E g g a n d P o u lt r y A u s t r a lia L t d . T h e a w a r d ju d g in g p a n e l fo u n d th a t, o u t o f a ll th e s h o r t lis te d c o n te n d e r s , A C O a n d N A S A A w e r e t h e o n ly tw o fo o d e n d o r s e m e n t p r o g r a m s w h ic h m e t a ll th e a w a r d c r ite r ia .228 In flu e n t ia l b u s in e s s fo r e c a s t e r IB I S W o r ld A u s t r a lia p r e d i c t e d t h a t in 2 0 1 1 o r g a n ic f a r m in g w o u ld b e t h e fa s t e s t g r o w in g in d u s tr y in th e A u s t r a lia n e c o n o m y ( i.e . a s m e a s u r e d a g a in s t a ll in d u s tr y s e c to r s – n o t j u s t a g r ic u ltu r e ).229 A s e p a r a te m a r k e t r e p o r t p u b lis h e d b y B io lo g ic a l F a r m e r s A u s t r a lia (B F A ) f o u n d t h a t in t h e p e r io d b e t w e e n 2 0 0 8 a n d 2 0 1 0 th e p e r c e n t a g e o f A u s tr a lia n h o u s e h o ld s p u r c h a s in g o r g a n ic f o o d s o n o c c a s io n in c r e a s e d f r o m 4 0 % t o 6 0 % . T h e B F A r e p o r t a ls o fo u n d th a t in th e s a m e p e r io d r e t a il s a le s o f o r g a n ic fo o d h a d in c r e a s e d b y m o r e th a n 5 0 % , fr o m $ 6 2 3 m illio n in 2 0 0 8 t o $ 9 4 7 m illio n in 2 0 1 0 . A c c o r d in g t o th e a u th o r s , T h e o r g a n ic in d u s t r y in A u s tr a lia is a p a r a g o n o f in d u s tr y s e lf r e g u la tio n , r e m a in in g in d e p e n d e n t o f g o v e r n m e n t in te r v e n tio n , w ith o w n e r sh ip in in d u s tr y m e m b e r h a n d s . T h e a c tiv e p r e s e n c e o f n o t-f o r -p r o fit in d u s tr y o w n e d g r o u p s s u c h a s th e B F A d e liv e r s p r o te c t io n o f o r g a n ic in te g r it y fo r c o n s u m e r s , b o th v ia s ta n d a r d s s e ttin g , a s w e ll a s v ia in d e p e n d e n t , n o n - p r o fit d r iv e n a u d itin g a n d c e r tific a tio n p r o g r a m s .230