Organic Sugar: End-User Support and Grower Perception

Organic Sugar: End-User Support and Grower Perception

A report for the Rural Industries Research and Development Corporation by Janet Grice, Sandy Paton, Devon Blines

August 2005

RIRDC Publication No 05/117 RIRDC Project No UCQ-18A

? 2005 Rural Industries Research and Development Corporation. All rights reserved.

ISBN1 74151 180 1 ISSN 1440-6845

Organic Sugar: End-User Support and Grower Perception Publication No. 05/117 Project No. UCQ-18A

The information contained in this publication is intended for general use to assist public knowledge and discussion and to help improve the development of sustainable industries. The information should not be relied upon for the purpose of a particular matter. Specialist and/or appropriate legal advice should be obtained before any action or decision is taken on the basis of any material in this document. The Commonwealth of Australia, Rural Industries Research and Development Corporation, the authors or contributors do not assume liability of any kind whatsoever resulting from any person's use or reliance upon the content of this document.

This publication is copyright. However, RIRDC encourages wide dissemination of its research, providing the Corporation is clearly acknowledged. For any other enquiries concerning reproduction, contact the Publications Manager on phone 02 6272 3186.

Researcher Contact Details Janet Grice School Of Social Sciences The University of Queensland St. Lucia QLD 4072 Phone: Fax: Email: j.grice1@uq.edu.au

In submitting this report, the researcher has agreed to RIRDC publishing this material in its edited form.

RIRDC Contact Details Rural Industries Research and Development Corporation Level 1, AMA House 42 Macquarie Street BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604

Phone: Fax: Email: Website:

02 6272 4539 02 6272 5877 rirdc@.au

Published in August 2005 Printed on environmentally friendly paper by Canprint

ii

Foreword

This research was conducted as the result of a direct request from members of the Australian Organic Sugar Producers (previously known as the Central District Non-toxic Farmers' Group). Members of the group took an active part in the proposed research and all results will be communicated to them. Understanding of supply chain stakeholders' perceptions of end users will empower growers in future negotiations with supply chain institutions. Institutions within the supply chain will also obtain better knowledge of end-users' understanding of organic farming principles and of end-users' requirements.

At present demand for organic sugar exceeds supply and organic sugar commands a premium price up to 2.5 times its conventional counterpart. While this position is expected to continue for some years, it is necessary for the industry to have a good grasp of the needs of the end user ? both in terms of the general public and food processors ? to remain competitive. Growers are presently reliant on other stakeholders within the supply chain to provide information on the needs of end users. End users (particularly the general public) often have limited understanding and awareness of sugar as a crop and the farming principles that are used to produce it. The production and development of transparent methods of assessing the needs of consumers and reporting those needs to growers will benefit all stakeholders within the supply chain and encourage conversion and implementation of organic production.

This report examines previous research into the organic consumer profile and the needs and expectations of both processors and consumers, within Australia, in regard to organic sugar. It covers the results of numerous interviews, grower workshops and consumer focus groups. Based on this research a number of recommendations for both the organic market, in general, and the organic sugar market, in particular, are made.

This project was funded from RIRDC Core Funds which are provided by the Federal Government.

This report is an addition to RIRDC's diverse range of over 1500 research publications and forms part of our Organic Systems R&D program which aims to optimise the profitability of Australian organic production in both domestic and overseas markets and to promote the utilisation of organic farming systems as a means of enhancing the sustainability of Australian agricultural systems.

Most of our publications are available for viewing, downloading or purchasing online through our website:

downloads at .au/reports/Index.htm purchases at .au/eshop

Peter O'Brien Managing Director Rural Industries Research and Development Corporation

iii

Acknowledgments

The authors wish to acknowledge the support of the Institute for Sustainable Regional Development, Central Queensland University and the Centre for Social Science Research, Central Queensland University for providing monetary support for this research. The efforts of Mrs Karen Chapman in transcribing numerous tapes and providing administration assistance to the project are also gratefully acknowledged.

About the Authors

Dr Janet Grice is a postdoctoral research fellow with the School of Social Sciences, the University of Queensland where she is researching consumers' perceptions of the risks and benefits of genetically modified foods. She was Chief Investigator of the Central Highlands Organics Project. She is joint editor of Altered Genes Reconstructing Nature: The Debate. Sandy Paton is a Community Developer with the Institute for Sustainable Regional Development, Central Queensland University. She has had fifteen years experience working with natural resource management and agricultural industry groups in the Queensland Central Highlands. She was workshop facilitator on the Central Highlands Organics Project and presented at the 2002 Fenner Conference on the Environment, Canberra and the 2003 Women in Research Conference, Bundaberg on social aspects connected to organic production. Devon Blines was the president of the Australian Organic Sugar Producers (formally the Central District Non-Toxic Farmers). He was a practicing organic sugar grower and a student at the Central Queensland University.

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Contents

Foreword ............................................................................................................................................... iii Acknowledgments................................................................................................................................. iv

About the Authors .............................................................................................................................. iv Executive Summary ............................................................................................................................ vii Introduction ........................................................................................................................................... 1 Objectives ............................................................................................................................................... 3 Methodology .......................................................................................................................................... 4 Results .................................................................................................................................................... 7

The Literature Review......................................................................................................................... 7 The Data .............................................................................................................................................. 9

Growers ........................................................................................................................................... 9 Grower Leaders ............................................................................................................................. 11 Mill/Refinery Sector...................................................................................................................... 12 Processors...................................................................................................................................... 12 Consumers ..................................................................................................................................... 13 Discussion............................................................................................................................................. 17 Implications.......................................................................................................................................... 19 Implications.......................................................................................................................................... 19 Recommendations ............................................................................................................................... 20 References ............................................................................................................................................ 21

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