Farmers see fruit of Woolworths’ push into $2 billion organic sector

Aussies are buying close to $2 billion of organic produce every year. Woolworths wants to grab a bigger cut of the fast-growing market segment.

Nelson and Zoe Dichiera of the Borderland grape farm near Mildura.

WOOLWORTHS is moving to boost its supply of organic produce in a bid to grab a bigger share of a market segment throwing off close to $2 billion in annual sales.

Two Victorian fruit farmers, including the nation’s biggest grower of organic grapes, will expand their production after receiving interest-free loans from the supermarket giant.

The farms secured the funds under a $30 million organic growth fund set up by Woolworths to ensure the supermarket has a consistent supply of an in-demand food category.

The loans are administered by the nation’s biggest mutual bank Heritage Bank.

Woolworths produce head Paul Turner said demand for organic fruit and vegetables had grown by 20 per cent annually for the past five years.

“We’re seeing incredible growth in demand for organic fruit and vegetables and the trend is only set to continue in the years ahead,” Mr Turner told Business Daily.

“We’re delighted to be working with Australia’s best organic farmers to build the capacity that will allow us to meet the growing demand for organic produce into the future.”

The first two Victorian operations to receive funding are table grape operation Borderland, based near Mildura, and Manna Farms, based near Colignan in the state’s northwest.

Both are certified organic producers and the latter is one of the nation’s largest biodynamic producers, growing a variety of citrus fruits, almonds and avocados.

David and Rob Keens of Manna Farms, in Colignan in the state’s northwest.

Borderland is owned and operated by Nelson — a third generation grape grower — and Zoe Dichiera who launched an organic operation at the site in 2007.

“We were spraying for this and spraying of that and we just thought what are we doing?” Ms Dichiera said.

“To be able to have our children pick grapes off the vine and eat them without having to wash them, it was an obvious transition for us.”

Nelson and Zoe Dichiera of the Borderland grape farm near Mildura.

The couple will use the loan to plant a table grape variety which has not been grown organically in Australia before.

It will only be sold at Woolworths.

“The berry is juicier, it holds its freshness for longer, it’s hardier than other varieties and it extends our harvest time,” Ms Dichiera said.

The nation’s organic industry now throws off $2.6 billion in annual sales of which $1.9 billion is domestic, according to the latest report from industry body Australian Organic.

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Domestic retail sales have doubled over the past decade.

Both major supermarket chains are paying more attention to the segment with Coles rumoured to be considering making takeover offers for a number of organic food retailers including Harris Farm Markets in New South Wales.

Coles also launched a new “Wellness Road” range of health products, which includes a number of dry organic items such as rice noodles and Cacao powder, earlier this year.

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