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New Zealand: Organic sector growing strongly

The New Zealand organic sector has grown by more than 11% per annum since 2012, according to the 2016 New Zealand Organic Market Report.

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Cover Organic Market Report

(11/04/2016) 

The growth is being driven by consumer demand both domestically and overseas and follows a  worldwide trend that is showing no signs of slowing, says Brendan Hoare, Chief Executive of Organics  Aotearoa New Zealand (OANZ), the peak sector body that commissioned the report.

“Certified organic is a sustained global shift in consumer behaviour and New Zealand stands to benefit immensely from increased engagement,” he says.

“Organic fresh fruit, wine, dairy, processing and domestic retail sectors are thriving in this country and  each is backed by a solid export sector that is diversifying into new markets, particularly Asia,” says Hoare.

The news is not all good, however, with organic fresh vegetable and red meat production languishing.  “These issues are being addressed by OANZ, either through working groups or open dialogue with other  peak bodies, including Horticulture New Zealand and Beef + Lamb New Zealand,” says Hoare.

The report was prepared by researchers from The AgriBusiness Group and Colmar Brunton NZ.

Key findings include:

  • The domestic market for certified organic products is estimated at $217 million. Organic grocery sales through supermarkets have increased by 127% since 2012.
  • Organic product exports have increased by over 11% since 2012. Fresh fruit and vegetables account for  more than 45% of total exports. The value of organic pastoral exports has grown 45% since 2009.
  • Organic wine exports continue to grow rapidly.
  • Land area under organic horticulture has grown 128% since 2012, from 11.188 hectares to 25,476 hectares. Key horticultural crops are grapes, apples and kiwifruit.
  • Domestic organic milk sales are increasing rapidly. The first six months of 2015 saw organic milk having  a reported 5.8% of the total white milk category, with nearly all the growth in the milk market coming from organic milk sales.
  • The average size of organic pastoral farms has decreased from 346 hectares in 2012 to 192 hectares in 2015.

Source: OANZ press release New Zealand Organic Sector Growing Strongly - Latest Research

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