INDUSTRY NEWS
The steady rise of the organic market Thought leadership from Gaz Ingram, Head of Future Land and Food
consumers surveyed reported buying organic products at least fortnightly.
Since 2008, the New Zealand Organic Sector Market Report has been commissioned by Organic Aotearoa New Zealand (OANZ), an organisation that aims to make the world more sustainable through organics. The 2020/21 market report was released in late April and shows that the growth in the sector is strong, indicative of exciting change in the primary industry.
The top three reasons for these purchases are:
The report is informed by a bi-yearly gathering of organic sales information as well as New Zealand production data. It is considered to be the best source of accurate data relating to the national organic sector as organic consumers, producers, retailers, exporters and certifiers come together to share their data. This year the report was launched in an online format and addressed all aspects of the organic market, including production statistics, exports and imports, consumer data, land use and sector components. The report highlighted huge areas for potential growth within the sector but was fundamentally positive about the direction the organic market is going in. The sector was worth around $723 million in 2020, up from $600 million in 2017, with an increase of $123 million or 20 percent – an average growth rate of 6.4 percent a year. However, it is the people power that has really impressed over the last few years. As consumers become far more savvy with what they are putting into their bodies, traceability and awareness around the sector is improving. The report has found that 81 percent of
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1. Organics are more natural (74 percent), 2. Seen to be free of residues and sprays (70 percent), 3. To protect and promote family health (68 percent). Farmers and growers that are seen to be going one step further within their operations are also ensuring that they are producing quality, safe products to match consumer demand. While total land area under organic certification has dropped by 3.41 percent (3,029ha) compared to 2017, there are now 198 more certified organic operations than there were in 2017 – up 12 percent. There has been a significant 54 percent increase in operations converting to organic in 2020/21 compared to 2017. Consequently, softer (but effective) chemistry is also improving to match consumer demand. A significant shift seems to be occurring within agrichemical and fertiliser companies as they become aware of the consumer interest, creating investment into the research and development of gentler, organic-certified products that also support maximum production. Farmlands has recognised this shift and is continually seeking to build, not only its current range of input products but importantly its knowledge base and involvement in the New Zealand organic industry. When comparing this year’s report to the 2017 version, the Organic Sector Market Report gives an extremely
Farmlands Co-operative Society Limited | © June 2021. All rights reserved.
| Gaz Ingram, Head of Future Land and Food.
positive indication of where the market is heading. Looking back at where we have come from, both within Farmlands and the wider industry, I am proud of our team and our shareholders. There are a lot of clever people in this industry and through their commitment and engagement with organics, we are seeing strong growth in the industry. Download the full report at www.oanz.org.
Key points of interest from the Organic Sector Market Report: • 58 percent of sector output (worth $420.4 million) is exported and 42 percent (worth $302.5 million) is consumed domestically. • Organic dairy products are now the largest part of the sector with exports worth $153.8 million, up 55 percent on 2017. In 2020 organic dairy farmers received a payout of $10.19 per kilogram of milk solids (vs $7.19 for non-organic) – a market record for New Zealand. • Fruit and vegetables (worth $143 million – up 6 percent from 2017) and organic wine (worth $65 million – up 40 percent from 2017) are the second and third largest sector components respectively.
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