An Australian ‘Organic Harvest Month’
Organic Markets & Marketing:- Making our own claims

Paper presented at
The Organic Challenge:- Unity in Diversity International Organic Conference
“The Organic Challenge - Unity through Diversity”
RIRDC & OFA Darling Harbour, Sydney, September 2001
http://www.theorganicsdirectory.com.au/newsletters_papers/news_Art_RIRDC.html

At present the principle challenge for the organic industry lies in how to market such a small, diverse industry spread over such a large country, whilst still maintaining the integrity of its product.

Firstly, we must consider the consumer, especially the power of the consumer! It is now common to hear even our politicians refer to the general public as “consumers” rather than to “constituents”.

Secondly, we should consider the power of the purse! Billions are being spent in advertising to attract dollars like mine. I am confident that I can talk with passion and authority about organic consumer isues as I have been one myself for 19 years. Consumers express their lives as lifestyles and spend according to their social, spiritual and emotional values. By way of example, US sociologist Paul Ray’s research identified the “Lifestyle of the Health & Sustainability” movement, or LOHAS, in which he found nearly 50 million US consumers or one in four Americans are “cultural creatives or educated consumers who make conscientious purchasing & investing decisions based on social cultural values”.

Whatever the percentage of LOHAS spenders in Australia, we are talking about a growing body of discerning label & portfolio reading consumers who are not driven by short term fads, fashions or impulse buying sprees. The Organic Industry needs to take this into account when promoting itself – today’s organic consumer is well educated, has a strong social and environmental conscience, and is committed to the health of themselves and their families for the long term.

Patrick Holden, of the UK Soil Association, identifies the growth in organics as being principally consumer driven. Recent research commissioned by this association supports the notion that the organic market consists a core of committed, long-term, loyal consumers. Some of the highlights of The Organic Food & Farming Report 2000 (Taylor /Nelson & Sofres) were discussed at the UK Soil Association Conference earlier this year;

“[Organic consumers consist of] a core group of loyal customers. 7% of organic buyers account for 57% of all purchases annually”. [This compares to 72 % of buyers who make a purchase between 1 & 6 times a year (the more conventional spending pattern) which accounts for only 14% of spending on organics.”

“The typical consumer pattern is that as more people purchase a product, the frequency of purchase declines and so does the amount spent per trip. The theory is that new buyers are “lighter” in their purchasing than those already buying products . The opposite seems to hold true with organic purchasing. Over the last two years organic foods have attracted more households who are buying more frequently and spending more each time they purchase. A virtuous circle has formed – more people buying more often.”

What does the organic consumer want?

Consumer demand has seen supermarkets and large manufacturers become increasingly interested (and active) in organics. One needs only look at the proliferation of businesses, brands and labels and promotions which through their adverts and promotions, present their products as at least one of the following: -

• good for the environment

• doesn't use artificial chemicals, pesticides and fertilisers
  good for you

• shows commitment to animal welfare

• value for money

• tastes great

• free from genetically modified ingredients

• supports farmers and farm workers

• looks after the soil, farms & countryside

• is accountable ie has a certification scheme

Many people educated in organics would question products promoted with these qualities unless they were officially ‘Certified Organic’.

Over promotion
So how do we, here in Australia, encourage consumers to try organic food, and then further, convert such consumers into long-term, committed organic consumers?

It is tempting to over promote. Although the Australian organics industry has a lot to learn from conventional marketing and has been criticised for not maximising the promotional opportunities, especially given that organic producers can lay claim to most, if not all of the virtues, 1-10, listed above.

However, the organic industry does not have the immediate or overnight ability to match any dramatic increases in consumer demand, which may follow heavy promotion. Delivering high quality organic food is not as easy as, say, ringing up ‘the factory’ in order to have 100,000 Cabbage Patch Dolls manufactured for Christmas. Because the primary relationship in farming is with Nature, there are no shortcuts or quick fixes in organic production and there should be no short-cuts or brazen over promotion of the organic industry.

Factors to consider when marketing Organics

Tell the Story
From my experience it is the story that sells. Consumers delight in knowing the story of the farm; the people, the system that produced it, the farming region. The success of Community Supported Agriculture, Direct Farm Sales and Growers & Regional Markets is, I suspect, due to this “relationship marketing” where one can not only smell & taste fresh products, but meet the grower or the baker or other processor. Contrast this with buying from the supermarket shelf!

We must brand an industry of our own stories and bring these stories to consumers directly through independent retailers. Through more creative packaging, promotional material, keeping our own labels and by not taking on generic store labels (a packaging methodology similarly discouraged by Patrick Holden of the UK Soil Association), we will protect and nurture the integrity of our organic products and our associated ‘stories’.

On a recently trip to the UK I noted the large mounted photos of smiling organic farmers and producers in the newly revamped ‘Fresh & Wild’ stores. (Note: good professional photos of the real people from the organic community, not an advertising company’s library shots. In the organic industry we do not need to pretend - in fact, our authenticity & our humanity is all important.)

The certified organic story
Organics is not just about “not spraying or using chemicals”, the urban consumer and retailer can easily forget it is about a whole system which essentially takes care of the soil. Words like “sustainable” are just buzz words until placed in context.

Marketing Myths
So, consumers are driving the demand for organic food, and ‘conventional’ marketing & sales theory/experience tells us that consumers demand cheap, perpetually available, perfect looking, never mouldy, convenient, healthy food products. The inference then is that the organic industry must comply with this theory in order to be labelled professional, marketable, or mature.

Perfect foods
There appears to be an obsession with the “Elle McPherson” or “supermodel” image for fruit and vegetables, in that there is some sort of perfect shape - you know, the perfectly shaped tomato that fits perfectly into the burger bun. Or the enormous strawberry that looks disproportionately blown-up on hormones and steroids. I am not advocating the sale of limp & tired veggies - rather, the awareness of varieties, differences in size, shapes and colours.

Fashion demands that the hamburger in New Delhi taste & look the same as the one sold in New York. I want my food to vary, to reflect the environment in which it is grown. I want to eat seasonal, local, tasty, fresh foods. The quality of food must surely reflect something of the environment in which it was grown.
I also am concerned that food could well become a victim of government over-regulation, of the standardisation of quality control systems and sweeping health safety restrictions and become sterile, bland, homogenised, in a word, all the ‘same’.

Cheap Food
How often do we hear the cry that organic food is too expensive & should be cheaper? Surely good food costs more to grow and more to produce. We must educate people about the organic growing process, rather than apologise for the premium price of organics.

Actually, I question the price we pay for conventional food - I believe it is too cheap. It breaks my heart to hear how much farmers are paid for their crop so that we can go to the supermarket to eat cheaply - never mind the cost to the environment. Draining all of the nutrients out of the soil to raise “productivity” because you have to be competitive to make a living to support your family is a sad practice. Fouling waterways with pesticide residues, killing wildlife and insects, depleting topsoils – this is all commonplace. What is the price are we really paying? More than the price of a movie ticket? What is more essential than good food, health, education and a roof over our head? Cheap foods? Surely the farmer, the environment and the consumer deserve better.

“To make organic & non-organic the same price, organic food would have to contain additives rather than real ingredients and to go through processes such as re-constitution to reduce the food values and cost of ingredients. People want to eat healthy food, not adulterated food. We need to nurture the principles and production of organic food rather than starve them out of business by imposing upon them unrealistic expectations on price.”

Lizzie Vann, Organix Brands (UK baby food manufacturer since 1992) Living Earth, Jan –Mar 2001

Functional Food or Wholesome Food
Why not have all your daily vitamin requirements in one breakfast cereal? Imagine, if you will, all your daily nutritional requirements in one product, created in some lab somewhere. Look around at the Functional Foods trend of using additives to increase the “health” value of a product.. Over ‘Medicalizing’ food can completely alter the holistic nature of food. Making exagerated health claims is known as “Death Marketing” because such intense marketing can produce extremely cynical consumers. Then there is the target marketing of the “health” value of foods for different parts of the body, or focusing on the specific physiological or nutritional requirements of particular parts of the body can similarly confuse consumers. The organic industry does not need to become to involved with this type of food marketing. While it is true that in many cultures food was traditionally used as medicine, there are other “wholesome” food markets we can partner with, for example, traditional foods, slow foods, wholefoods, gourmet foods, fresh foods, macrobiotics, regional foods.

Surely a bend of exciting, sensual flavours, and a variety of tastes, textures and colours derived from eating freshly picked fruit and vegetables, in season, grown in good, wholesome soil, is the cornerstone of a healthy diet.

Organic food is more nutritious
As far as I am concerned organic food is Best Practice Nutrition, regardless of whether there is “scientific” or “academic” proof which validates that it is healthier, more nutritious or not. The issue requires more complex analysis than statistical or scientific data alone can provide.

Practitioners from widely varying health disciplines advocate that eating organic food can make a real difference to health & wellbeing. The organic industry should work more closely with these members of the community – with ‘health experts’ from a wide variety of disciplines and backgrounds. As well as recommending foods to suit a client’s specific dietary needs, health practitioners can educate consumers with respect to the organic certification system and direct them toward organic food outlets.

Sir Albert Howard, from the UK, was one of the first agricultural biologists who spoke out expressly against the use of chemical fertilisers. He observed that in India, peasant farming populations who were still practising traditional agriculture, based on crop rotation without the use of artificial fertilisers, grew healthy disease and pest free crops & livestock. In turn he noticed that the humans who fed on those plants and animals appeared vital and healthy. Over a hundred years latter these observations still ring true - healthy soil is needed to grow healthy food which in turn supports a healthy body. (Some very interesting organic research is available at www.soilassoication.org.uk).

The GMO debate

I will not explore the very important GMO debate here, since other presenters at this conference will be discussing it more fully, but the organic industry has to highlight the issue because of the threat of GMO contamination. It is also interesting to note that there is evidence world wide that there are a number of consumers who intuitively reject GMO ingredients in their food. A growing number of consumers are taking the time to read food labels so GMO Free declarations on labels can be very effective.

Market Expectations

When the Sydney Convention & Exhibition Centre (SCEC) was booked for this conference it was stipulated that only organic food & beverages should be served. This became a major challenge for “The Organic Challenge” organising team. The SCEC had fears that organic catering would prove too difficult and too expensive. Indeed, the SCEC is an institution more used to dealing only with it’s preferred suppliers, who provide conventional foods at highly competitive prices. The organic industry generously sponsored much of the food but availability and quantities were still a concern for the SCEC.
This fear materialised when at the last minute conference registrations far exceeded expectations. The organic supplies were not coming from a single local warehouse. The salad mix came from Queensland, the cheese from Tasmania, yoghurt & unpasteurised butter from South Australia, Quark from New South Wales and the beef from Queensland. But, the food did arrive, much of it sponsored by the growers, producers and wholesalers who had gone to whatever lengths were necessary to get it to the conference on time. Some farmers brought the freshly picked salad mixes on the plane with them, extra wine and beverages were urgently trucked in and some of the cheeses even airfreighted.
Detlef Haupt, Executive Chef of the SCEC, pointed out that “getting product on time, not a week early and not a day late.” was a challenge. However, he was impressed by the variety, especially the dairy products and salad mix which he said were excellent and voiced his pleasure in dealing directly with the producers.
If the SCEC, which is one of the countries largest function institutions in Australia, can provide all organic food & beverages for an event, then any metropolitan restaurant or conference centre can.
Due to the patience of an executive chef and the spirit and willingness of the community of organic food producers, the hurdles of supplying a large venue were able to be overcome. We have an extraordinary organic community; the very characteristics that can be said to constrain our growth are also our greatest asset. Working with restaurants and chefs is important to raise the organic profile.
This event has clearly been a success story. The outcome has been excellent with the final proof is in the tasting - Good Organic Tucker.

The issue of “one logo”.

There is continual pressure from the supermarkets and from the larger manufacturers to institute the use of one, universally recognised organic logo. While the introduction of a single certification logo may make it easier for consumers to quickly identify certified organic products, the fact is that we do not have a single certifying body.

This is an industry made up of individuals who are highly independent and who are striving for high standards. It is important that we do not lose sight of this. I personally believe that some amount of chest-beating and competition within the industry can be productive, as long as it raises standards and the demand for excellence continues.

I am concerned that here in Australia there have been numerous attempts to provide alternative “sustainable, clean, green GMO free” quality marks and seals which conveniently water down organic standards in the name of simplification. One justification I’ve heard for the creation of these pseudo-environmental seals is that the Organic Industry is unable to promote itself due to in-fighting. I think this reasoning over-simplifies a complex issue; the organic industry does not neatly homogenise into a conventional marketing formula. This makes it difficult for one corporation to be all-powerful and have ownership of the emblem, seal or mark and therefore have ownership of its marketing dollars. Recently I heard of yet another marketing group promoting their foods as sustainable, stating that organic farming is not necessarily sustainable. I do not believe that they have a certification scheme that has evolved through trail & error and recognised globally, we do . The fact that many of these products can’t be exported as Organic does not stop these producers suggesting their natural, chemical free, sustainable, free range products are the same as organic, by association.
Sainbury’s, the UK supermarket chain, is famous for embracing Organic food and for expanding its range of organic food offerings. However, even they are not immune from criticism. Recently they were taken to task when the Advertising Standards Authority in the UK upheld a complaint about one of their advertisement campaigns: -
Imagine the visual of two apples sitting side by side - one with “pesticide“ underneath it and the other with a lady bug sitting on it with the words “countryside” underneath it. The accompanying copy read;
“Sainsburys making life taste better- All Sainsbury’s British fruit and vegetables are grown with a commitment to using more natural farming methods to control pests”

It was found that the advertisement could mislead the public by implying that the supermarket didn’t use pesticides on its British fruit. The more cynical have implied that Sainsburys was apparently using its organic image/reputation to give the impression that all of its fruit and vegetable offerings were organic I personally think it is well worth noting the difference in meaning between “Commitment” & “Certification” when it comes to marketing organics.

Domestic legislation

It is important that we consider consumer trust. At present we have protection for export but not for the domestic market. Products can be sold here as organic that are not recognised as organic elsewhere in the world. For example a product which might be rejected by the European Community (for not meeting EC organic standards) might still be sold here in Australia as organic.

The Australian Organic Industry is still small enough that we might spot obvious local frauds. Fortunately we do have world standards upheld by our certifiers, which are in turn audited by AQIS. We should focus on educating consumers about the importance of purchasing certified organic products. Furthermore we need to push for immediate legislation which would prevent the flagrant misuse of the term ‘organic’ on products which might be grown and processed using anything but certified organic standards.

Consumer education

As an industry we need to acknowledge the evidence that it is a small, highly educated band of consumers who are purchasing the bulk of the organic food in Australia. When I reflect back over the long period of my own commitment to organic, I recognise that I have become highly educated. I know where to buy, I know what to buy, I know what to ask, and I know what to expect. I know the difference between organic and certified organic, between free range and barn laid, between vine ripened and hydroponics. Information-hungry consumers need information about organic food production at their fingertips and it is the organic industry’s responsibility to provide this in a voluminous yet comprehensible format.

Working in collaboration is essential whilst recognising & respecting differences

There has been much discussion claiming that the individual constituents of the organic industry are unwilling to work together or to be identified as one industry, especially compared to other industries. Organic farmers have been ridiculed throughout the years, with some even taunted as Rainbow Warriors & hippies
This is an industry built by pioneers and individuals. Whereas agricultural education is often sponsored by Agri-business chemical companies, our farmers have had to be both enterprising and ingenious. The manufacturers & retailers have to deal with a number of constraints that do not apply to non-organic businesses - they too have incredibly high level of drive and motivation. It is an industry that covers the whole range of fibre & food and I think it a big ask to expect such a diverse group of people to agree to work together as one industry in harmony & collaboration at this early stage. We are talking about an industry full of vibrant personalities with differing motivations, opinions and passions. When you manage to get 450 members to an industry forum like we have here , the room really hops. We are privy to an incredible collection of people & discussion.

I publish the organic directory - a simple, annual free giveaway that opens up into a poster displaying a listing of organic businesses ( which is in its 5th year) . I don’t include any business logos or special fonts, I want the reader to see us a whole industry made up of many integrated parts, exporters, certified organic feed, transporters, storage, packaging, it might even include ethical investors that support biodynamic farms. We are an industry interwoven with and interdependent upon each other. The usual marketing formulas do not necessarily work, so we need to be flexible and creative.
Individuality is good, diversity is good, striving for excellence is good – all these factors produce competitive, strong-minded individuals. How do we sell our product and maintain our integrity? There is a lot said about how we need to brand ourselves but we are not a McDonalds: - a marketing company that just happens to sell hamburgers.

The Organic Industry is one of the most exciting global industries in the world. Appropriate communication, marketing and promotion are the driving force for an industry that still needs to strengthen a link between the Public and Producers. Through the art of selling the industry we will captivate the interest of the good farmers we need to convert to organics whilst we educate our customers to the beauty of our seasonally available, premium priced, tasty produce.

ORGANIC (HARVEST) MONTH 2002
The Organic Harvest Month is designed as a campaign to boost consumers’ awareness and understanding of issues concerning organics and sustainable living. The event will form an umbrella for a wide range of events and promotions across the country involving independent retailers, home delivery, restaurants, cafes, farmers, schools, wholesalers, processors and grass roots organic groups. The following is a proposed marketing outline designed specifically for the Organic Industry.
The " Organic Harvest "was originally conceived in USA by the OTA, then adapted for the UK by the Soil Association, both of these peak bodies have generously shared their knowledge and experiece to assist us. Because the Australian economy is relatively small compared to its huge land area, our marketing problems are unique, therefore I propose that we further modify the format of this organic promotion to meet these special needs in the following ways:

A solid, high profile launch will attract a good deal of media attention. Following the launch would be a calendar of in-shop promotions and month long price reductions, tastings, media events, talks, press conferences, local press coverage etc to ensure consumer interest and encourage trial.

A focal point would be the production and distribution of a promotional pack to independent wholefood, healthfood and organic retailers. This pack could contain posters, point-of-sale literature, stickers, shelf-talkers, samples, aprons, a guide to local press coverage, a proforma press release, and a guide to possible promotional activities.

The promotions will be funded through sponsorship from a range of companies and in particular wholesale outlets, which would assist in the distribution of the packs and promotional material. The monies generated offset some staffing and administrative costs and production expenses.

Public awareness to be stimulated through events; lectures, media publicity, product promotions, growers’ fairs, window & display competitions, farm tours, farm open days and product awards, point-of-sale materials, in-store promotions, tastings, events.

Holding promotions with health organisations, environmental groups, educational groups, schools, hotels and restaurants.

Generating publicity for events through networking, coordinated media releases, using celebrities and tying into other promotions.

Look for major sponsors from within the industry and investigate other sponsorship possibilities. Essentially this type of promotional week can include every one, no matter how small. They can contribute locally and rev up interest in their area.

Aims

• To encourage consumers to buy organic food, driving sales through the independent trade & creating a long-term commitment to certified organic produce

• To inform & educate, deepening the consumer awareness & understanding of the issues surrounding organic food & sustainable farming.

• To encourage conventional farmers to convert to organics

• To educate farmers and the general public of certified organics

• To help support farmers to develop markets for their produce

• To unite the industry

• To highlight the need for domestic legislation

• Positive spin-offs

• Develop common understanding of organics

• Support developing organic businesses

• Encourage farmer and public contact

Enable the industry to grow its domestic market
Rarely do we see a showcase of the whole range of organic products & services available before us so the Organic Harvest is an exciting opportunity to focus on all of these possibilities over the period of an entire month.
I have been promoting this concept since 1994 and slowly the idea has evolved and grown, for as with organic food, these things do not happen overnight. Farmers take time to convert. It takes time to educate consumers. Critical to the process are relationship marketing, close collaboration & communication. There will be a rich harvest of vitality, diversity, and prosperity when all the parts of our industry come together in an event such as this.

In conclusion, I propose that the Australian Organic Industry is now ready for an Organic Harvest Month - a national promotional programme that supports unity through diversity and promotes a whole industry rather than the individual products or brands within it.

© Copyright 2001, Catriona Macmillan

Catriona Macmillan
Director Heaven & Earth Systems P/L & Organic Tucker
For 19 years an Advocate of Organic & Wholesome Foods

Professional History

Publisher of the annual Organic Directory listing, now in its 5th year
Writer on organic marketing & consumer issues for the two major certifiers
Organiser of the annual Royal Easter Show Organic Products Exhibit
Chair of the Organic Federation Promotions Committee
Chair of RIRDC’s National Organic Conference Promotions & Sponsorship Committee
Conference Manager for “The Organic Challenge- Unity through Diversity"
Manager of the “Organic Federation of Australia Awards Night”
Manager of the first Macrobiotic and Wholefoods store in Sydney, over 19 years ago
Universal Organic Community Website www.universalorganics.com.au
Facilitator of Organic, Environmental, Ecological and Advocacy Events. Clients include: Olympic Coordination Authority, Organic Federation Australia, Eco-Farms, Earth Food Store, Macro Wholefoods, Rural Industries Research & Development Corporation, Wholesome Gourmet Cooking School.