The fund was established by the company in partnership with Australia’s customer-owned Heritage Bank.
Woolworths Supermarkets managing director Claire Peters said: “There’s no doubt more Australian customers are choosing to buy organic and are seeking fruit and vegetables that are the product of the best of what Australia’s natural farming resources have to offer.
“In the last five years, demand has been growing at a rate of 20% year-on-year in the organic produce category.
“Working with Heritage Bank, the Woolworths Organic Growth Fund represents our long-term commitment to satisfying this growing consumer demand, allowing us to continue our partnership with local farmers to make sure we’re ready for the future demand.”
The company noted that funding will be used to help farmers adopt new approaches to expand the range of organic fruit and vegetables on the market.
Australian growers who are looking to expand their operations will receive grants and interest-free loans over a five year period.
Farmers will have contracted purchase volumes and will be able to supply organic fruit and vegetables to Woolworths on a long-term basis.
Romanian-based Orchard R&R Smith will be the first to benefit from the fund.
R&R Smith owner and manager Andrew Smith said: “We continue to see ongoing demand for our organic apples. The support from the Woolworths Organic Growth fund will be instrumental in helping us develop a new organic apple variety and bring it to market, an Australian first.”
