Woolies invests in organics

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

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

The farms, both Victorian, secured the funds under a $30 million organic growth fund set up by Woolworths to ensure it has consistent supply.

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

The first two operations to receive funding are table grape operation Borderland, based near Mildura, and Manna Farms, based near Colignan.

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.

Zoe Dichiera launched an organic operation at the site of Borderland in 2007.

“We were spraying for this and spraying for 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.”