Bellamy's upcoming IPO is exciting news for many reasons. Organic food is big business and Bellamy is just one success story. As Bellamy is seeking to increase its supply base in Australia, the focus turns on the incentives and protection farmers have to commit to organic farming methods and ensure supply.
The disappointing result of Steve Marsh's test case is quite relevant. Though not in dairy, Steve Marsh is an organic farmer from WA whose land was contaminated as a result of GM farming methods used by his neighbour. Unfortunately for Steve and the organics industry in Australia, the WA Supreme Court (see here) rejected Steve's claim for compensation. While compensation was important, ultimately Steve wanted to ensure his organic land and the commitment he had made to these practices were protected. Sadly it seems that the law does not afford such protection at the moment. Time for a change?
Bellamy’s Organic chief executive Laura McBain says the company’s revenue is set to hit $50 million this financial year after the third-consecutive year of 80 per cent growth. The target forecast for 2014-2015 is $83 million. The product range is all organic and includes infant and toddler formula, baby foods such as rice cereal and snacks such as dried fruit. The brand has good distribution through Woolworths, Coles, Chemist Warehouse and Costco and also sells direct through its own website.