Organic certifier points to producers & consumers for growth

Organic certifier points to producers and consumers for double digit growth

The latest organic market report launched on Wednesday (6th March) at Parliament confirms double digit growth of organics in New Zealand over the past 3 years and comes as great news for organic certifier BioGro, its certified producers and consumers.

The organic sector has grown 25 per cent in the past three years - from $275 million in 2009 to $350 million in 2012. The export and domestic market for New Zealand organic products has grown on average 8 per cent a year at a time of global recession.

BioGro’s CEO Dr Michelle Glogau says the report, funded by the organic sector umbrella group Organics Aotearoa New Zealand (OANZ) is a really positive sign of the increased demand for organics amongst consumers. ‘It supports the trends we are seeing with dramatic growth in certified wine and extension into health & body care products’.

Dr Glogau explains that international research consistently shows that consumers are motivated to buy organics for a wide range of reasons: local/seasonal production, their health, animal welfare, the environment, GE free and social responsibility. ‘Our certification logo symbolises all of these things’.

Chair of OANZ, Brendan Hoare says that the market report confirms that ‘more producers are seeing the value of being certified organic which is in line with global trends. They know it’s what their customers want’.

BioGro certifies around 700 organic producers with over 1000 operations around New Zealand. Despite the current economic recession, the amount of land now certified as organic in NZ has increased to 106,753 hectares according to the report.

‘It is really valuable for the organic sector to have its success substantiated by independent research’ Mr Hoare adds.

One of BioGro’s biggest roles is to give organic producers access to international markets which are regulated i.e. organic producers must be independently certified before selling their products off-shore. Dr Glogau explains that the report helps organic producers identify potential market opportunities and highlights that certain export markets have grown for organic products, especially in Asia.

Researchers from the University of Otago and Agribusiness Group who researched and wrote the report for OANZ found that some organic sectors have grown significantly more than others.

• Organic wine has been the fastest growing production sector in the past three years. There are now over 100 organic vineyards, representing 7.6% of all vineyards in New Zealand.
• Organic dairy continues to grow rapidly - 33% since 2009.
• Organic beverage exports (wine, beer, fruit juices, soft drinks) are now worth $29 million – 70% more than they were worth three years ago.
• The organic domestic retail sector has also experienced strong growth, and is now worth between $126 and $133 million – a 27% increase on what it was worth in 2009.
• New markets for organics are growing – especially in Asia, with South Korea (11% of organic exports) overtaking Japan (9%) as the largest Asian market for NZ organics.

To read the full market report please visit www.oanz.org. For further information about BioGro please visit www.biogro.co.nz

ENDS

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