The 2016 Australian Organic Annual Report highlights the challenges faced by organic growers and producers, including consumer expectations.

The report said more than two out three Australian households bought at least one organic product in the past year.

Consumers surveyed cited some of the perceived benefits of organic food as being free from chemicals, additives, genetically-modified foods and hormones and antibiotics.

Tasmanian organic fertiliser company Seasol has been in the organic industry since the 1970s, with chief operating officer Graham Smith pointing to consumers’ increased awareness as part of the reason for the industry’s steady growth.

However, he said the word ‘organic’ can be over-used to become ‘greenwashed’ – spun into a meaningless marketing term promising environmental values or incorrect claims of health benefits.

Mr Smith said Seasol carefully polices their own language about organic claims when developing and marketing their products in the agriculture industry.

“We as a company, when we look at some of the stuff we write, we actually go, ‘Hang on, is that a bit of [greenwashing]?” he said.

“We’ve got to be pretty careful.”

The report noted Millennials are “more discerning about food choices, origins, and production systems than other demographic profiles” and will readily use their phones to research when out food shopping.

Mr Smith agreed, saying younger generations were leading the charge in organic farming, investing heavily in developing the integrity of their land.

“When you look at so many of the really good quality [high value agriculture farmers] now, they’re … doing enormous amount of work with their soils,” he said.

“I think that’s a great trend.”