Organic farm gate values were estimated at $231 million in 2007, while retail value reached $578million.

The University of New England's Australian Organic Market Report, commissioned by Biological Farmers Australia, also revealed that even as farmers battled the drought, organic farming continued to grow.

Biological Farmers Australia director Andrew Monk said the boom in organic farming had been driven by consumer demand.

The study revealed a reduction in grain and broadacre livestock farming, brought on by the drought, but sales of fruit and vegetables soared.

Dr Monk suggested that organic farming techniques made soil more resilient to drought and flood.

''More organic matter in the soil means a more resilient soil structure. If you get a deluge you don't lose the topsoil and secondly you have water retention capacity during dry periods.

''There is a focus on the biology of the soil, [whereas] non-organic agriculture focuses on the chemistry of the soil. People are realising more and more that you can't ignore biology.''

He said the University of New England study was a ''benchmark document'' that would help the industry plan for the future.

Standards Australia has issued a new draft Australian Standard for Organic and Biodynamic Products to bring different industry standards into line.

Smaller organic farmers such as Joyce Wilkie, from the Allsun Farm in Gundaroo, said organic certification was an expensive process with which her farm no longer bothered, although she said the standards were good.

''Loss of certification didn't affect our sales one bit. However, if you are going to do it on a larger scale from supermarkets you have to be certified,'' she said.

''For a long time organics was considered a health issue, [but] finally consumers are also seeing it as a green issue.''

She said ''bigger operators'' were entering the market as they saw the value of organic produce.

The report also found Australia accounted for the largest amount of certified organic farm land in the world, at nearly 12 million hectares, although much of the land was not intensively farmed, as it was in European countries.