The Australian organic industry has undergone recent and rapid expansion in response to growing consumer concern over food safety issues. The industry is growing at 20- 30% per annum and has an annual gross value of $200 million. The Australian organic industry is vehemently opposed to the genetic engineering of foods and has requested that the Australian Government impose a five-year freeze on the import, sale and production of genetically engineered foods. In contrast, the Queensland Government is seeking to accelerate and nurture competitive bioindustries through the provision of its $270 million Bioindustries Strategy. This paper will examine the recent growth of the Australian organic industry, the potential conflicts between biotechnology and organic industry development and conflicting government policies guiding the expansion of the organic and biotechnology industries.