Prism Webcast News

OANZ Organic News

Friday, February 6, 2009
Posted in Organics | Tagged Organics

News that the New Zealand wine industry expects to reach a billion dollars in sales this year has reignited interest in how the organic sector will survive in difficult economic times.

In this issue of OANZ News we note a report which predicts that, while the international economic downturn is affecting the rate of growth in organics, a significant decline from the current value of organic sales is unlikely.

For companies looking to add value to their products, farmers seeking to reduce input costs and consumers wanting to encourage environmentally responsible practices, this means certified organics remains a valuable and viable option.

There is still strong consumer interest in supporting ethically responsible and ecologically healthy production - a potential market which will encourage more people into high-value, certified organics. However one of the factors slowing the adoption of organics is a shortage of people with the necessary skills and knowledge. This shortage is likely to be exacerbated with changes at Auckland’s Unitec causing two of New Zealand’s leading organic educators - Brendan Hoare and Richard Main - to move on from their positions at the end of last month.

To ensure that remaining sources of information in the organic sector continue to be accessible and are well coordinated, our Organic Advisory Programme and the OANZ Education, Extension and Research Task Team are today submitting three applications to the latest round of MAF’s Sustainable Farming Fund. MAF’s funding process is independent, but as the representative body for the organic sector, I’m hopeful that these applications will be looked upon favourably.

The challenge for the organic sector is to make sure that consumers understand the wider effects their food choices have on themselves, their communities and the planet, and that producers are able to get the information they need to grow. These are both areas where OANZ will remain active, and which we believe are essential for the organic sector to meet its own billion-dollar value target.

Biodynamics - committed to building long-term soil fertility

There’s increasing interest among both commercial growers and home gardeners in biodynamic methods of growing, which has seen a steady rise in membership of the Biodynamic Farming and Gardening Association in New Zealand.

The Association has a long history, going back to 1945 when it was established to promote biodynamic methods, based on the principles of Rudolf Steiner.

Many conventional growers have tended to decry biodynamics as “hocus pocus” but in recent years it has gained much wider acceptance, particularly in the wine industry. And there’s no doubt about it - claiming eight out of the world’s top ten pinot noirs, biodynamic methods can produce some great wines with unique flavours.

The Biodynamic Association

The Biodynamic Association in New Zealand now has about 800 members who include farmers, processors, orchardists, commercial and home gardeners.

The Association’s Chairman, Erin Simpson, is an apple grower in Hawke’s Bay who has been following biodynamic principles on his orchard for several years, with excellent results.

Erin uses a preparation known as ‘501′ to help strengthen his trees. He says, “Our sugar levels at harvest and the firmness and keeping qualities of our fruit are all different from conventional growers.”

Erin adds his Demeter-certified apples are highly sought after overseas for their excellent keeping quality.

The Biodynamic Association’s Demeter certification system is recognised in more than 50 countries to verify that food or products have been produced by biodynamic methods.

Gisborne grape grower James Milton is the best known proponent of biodynamics in the New Zealand wine industry, but several other wineries are also working towards Demeter certification.

The majority of members of the Biodynamic Association are home gardeners and lifestyle block owners who want to follow biodynamic principles to fit in their wider philosophy of life. The number of Demeter-certified properties throughout New Zealand is about 35 and these are growers who are serious about marketing their produce as biodynamically grown.

The conversion process to gain Demeter certification takes about three years - a similar time-frame to other organic certifications, although the Demeter requirements differ in some areas.

Training in biodynamic farming and growing is available from Taruna College in Hawke’s Bay, which is run by a private organisation associated with the Biodynamic Association. Taruna College offers a popular certificate course in applied organics and biodynamics, with Erin saying the Taruna course has played a big part in raising the awareness of biodynamics in New Zealand.

The Association also runs the Biodynamic Consultancy Society, which has advisers available for farm visits, covering most fields of agriculture and horticulture and most of New Zealand.

The Biodynamic Association produces ‘Harvest’ magazine four times a year, which is packed with information and tips on biodynamic growing.

The Association also produces a calendar, providing information on moon and planet cycles and explanations on how to use the information to enable farming and gardening activities to be carried out at optimal times.

For more information about biodynamics, visit www.biodynamic.org.nz
Biodynamics - a whole new dimension to growing grapes

Turanga Creek Vineyard in Whitford is embracing both organic and biodynamic principles in the hope of producing even better wines.

The vineyard’s owners, Wayne and Mandy Allen, have spent the last five years developing the 24ha property, which was previously a run-down horse stud. They are growing pinot gris, viognier and syrah vines.

Vineyard manager Margaret Boswell joined the couple in the middle of last year and is enjoying the challenge of converting the property to BioGro and Demeter certification.

The BioGro certification process has been underway for about two years, so there is a further year to go. The winery produced its first commercial vintage last year.

Mr Allen says their main goal is to make better wine, and they believe organics will help to achieve this.

The long-term plan is to open a restaurant at Turanga Creek, using organically-grown vegetables which will also be produced on the property.

UK will continue to allow air-freighted produce to be labelled organic

New Zealand organic exporters are pleased that the UK Soil Association this week backed down on plans to withhold certification for air-freighted organic produce.

The Soil Association has been threatening the possibility of a full or partial ban on air-freighted produce since late 2007, arguing air-freighting produce generates 177 times more greenhouse gas than sending the same produce by sea. But it says it now recognises air freight provides economic benefits for organic producers in developing nations, as they are able to sell the produce at a premium in the UK market.

The Soil Association says it has decided instead to monitor the amount of air-freighted organic goods coming into Britain.

OANZ made submissions to the Soil Association on behalf of New Zealand exporters, urging it to take into account more than just the distance to market when providing certification.

Research shows, for example, that New Zealand grass-fed lamb has a lower carbon footprint than grain-fed animals raised in barns in Europe.

If certification had been withheld it would have been difficult for New Zealand organic products to have been sold in the UK, and may have encouraged other European countries to restrict imports.

The Soil Association has been under heavy pressure from British supermarkets to continue allowing air-freighted produce to display the organic label. Sainsbury’s, Tesco, Waitrose and Asda have all been pushing hard to continue selling air-freighted organic food.

But the Soil Association’s decision has drawn some criticism from within the organic sector in the UK, where many supporters of the organic lifestyle believe it should stand for local consumption, not just organic production.

Risk to Biological Husbandry Unit’s organic status?

The operators of Lincoln University’s Biological Husbandry unit are worried it might lose its organic certification after a genetically-modified field trial in Canterbury breached its operating conditions by allowing a brassica plant to flower.

The discovery was made at a site in Lincoln used by Crop and Food Research Institute, now part of Plant and Food Research.

There is concern that pollen from the flowering plant could have spread to the nearby Biological Husbandry Unit, which is also growing brassicas, and possibly also to Heinz-Watties’ Kowhai farm, which also has organic status.

Jon Manhire, who chairs the trust that leases the Biological Husbandry Unit, says if this has occurred, there is a risk the site could lose the organic status it has had since the 1970s.

Plant and Food Research believes the breach is unlikely to lead to cross pollination with other crops, but OANZ Chief Executive Jon Tanner would like to see GE field trials stopped, before the new planting which was due to begin at the end of last month brings new potential for environmental and economic damage.

Organic apples set to pass 1m cases in 2009

NZ’s production of organic apples is set to pass the one million case production level this season, for the first time in the sector’s history.

This is one of the highlights in Pipfruit New Zealand’s apple and pear export crop estimate for the 2009 season. Another key feature of the 2009 crop is the increased commitment of NZ apple and pear growers to meet market demand for safe and sustainably-grown fruit through organics and other programmes like Apple Futures.

Pipfruit NZ CEO Peter Beaven says, “I am confident that the success of [Apple Futures] will maintain New Zealand producers’ place at the head of low input - high quality technology. This programme confirms the New Zealand apple and pear industry’s commitment to develop safe and sustainable growing practices.”

Organic food growth slows as recession bites

The economic downturn is slowing the rate of growth in organics - but so far, sales are not falling.

The global market for organic food and beverages has more than doubled in five years, according to market research firm Euromonitor International, with the United States accounting for about 45% of the total value of organic trade.

But with economies in crisis, the trend is slowing in the United States, Britain, France and Europe’s most important market for organic food, Germany.

Typical growth rates of 20-30% for organic food sales annually in the United States eased in the second half of 2008 as families felt the strain of layoffs and declining investment portfolios.

Market research firm The Nielsen Co. notes that although growth is slowing, most people who purchase organic foods are very committed. This suggests a big decline in organics is unlikely.

Germany’s organic food sales grew by 10% in 2008, down on the 14% growth recorded in 2007. Germany’s leading supermarket chains are increasingly introducing organic food, which is underpinning the market.

In Britain, growth in sales of organic products has slowed dramatically, to an annual rate of about 2% in 2008 compared with 16% the previous year.

Britain’s leading organic certification body the Soil Association, says it is getting mixed reports, with some consumers switching from organic to cheaper free-range products.

Germany: Spate of new organic supermarkets continues

A total of 71 new organic supermarkets and stores were opened in Germany last year, including 11 new organic stores with 200m² to 400m² of sales space and 60 organic supermarkets of over 400m².

This means there are more than 500 organic stores and supermarkets in Germany with a sales space of more than 200m² at the beginning of 2009. Between 25 and 83 new organic supermarkets have been opened each year since 2000. The number of organic chains, which operate almost half of all stores, rose to 18.

Organic Monitor gives 2009 predictions

With the slowdown in the global economy, there is some uncertainty about the year ahead for ethical and sustainable industries. At the end of January, Organic Monitor made the following predictions for the year ahead.

1. Organic Foods
Global sales of organic food and drink have been increasing by over US$5 billion a year, reaching US$46 billion in 2007. Positive growth is expected to continue in 2009, however slower growth rates are envisaged in countries affected by the financial crisis.

The UK market has been the most adversely affected because of the harsh economic climate reducing consumer expenditure. Other countries have been less affected with double-digit growth still continuing in northern European countries. Although consumer demand for organic foods remains high, increased price sensitivity is leading consumers to ‘trade downwards’. Thus, organic food sales from discounters and other low-cost retailers are increasing at the expense of other retailers. Retailer private labels are also gaining popularity over manufacturer brands.

2. Natural Cosmetics
Global sales of natural and organic cosmetics are increasing by over US$1 billion a year. As with organic foods, most demand is concentrated in Europe and North America. Preliminary research shows that European sales exceeded US$2 billion for the first time in 2008.

Healthy market growth rates are continuing in 2009, with most growth observed in mainstream retailers like supermarkets and pharmacies. Retailer private labels are a major driver of market growth; a growing number of retailers are launching natural and certified organic cosmetics under their private labels, offering consumers low-price quality products. However, some rationalisation is expected in 2009 due to a large number of brands competing with private labels for retail shelf-space.

3. Fairtrade Products
Consumer demand for fairtrade products continues to strengthen in spite of the economic slowdown. Preliminary research indicates that global fairtrade product sales exceeded US$3.5 billion in 2008.

Growing consumer interest in social and trade issues involving developing countries is driving market growth. Retailer investment is stimulating production of fairtrade products; a number of European supermarkets have converted their entire supply chains of certain products to fairtrade. The fresh produce category is tipped to show the highest growth in 2009.

4. Natural & Organic Ingredients
Slowing demand from food processors, beverage companies and other end-users is bringing supply in balance with demand. After experiencing several years of undersupply, ingredient prices are expected to decline in 2009. Increased globalisation of supply chains is predicted to continue as large ingredient companies spread their production bases.

5. Soya & Functional Foods
The success of soya milk is leading to high investment in related products, marketed as dairy alternatives and / or functional products. Oat-based dairy alternatives are expected to continue to gain ground in 2009. A major advantage soya and oat-based products have is that they can be marketed on health claims.

Many new functional foods are expected to be launched in 2009, however few are likely to have a long-term presence because of the high rate of product failures in this market.

6. Ethical Textiles
Rising ethical consumerism is fuelling demand for organic and fairtrade textiles. New product launches are expected to continue in 2009 as investment comes in from new producers and retailers.

Organic Monitor also expects sustainability to become increasingly prominent in 2009. Natural and organic product companies are at the forefront of adopting sustainable and ethical business practices. This development is leading to some convergence between product sectors. Indeed, many new organic product launches contain fairtrade ingredients. The number of carbon neutral companies is also expected to increase in 2009.

National Soil Workshop Tour 2009

With Dr Tim Jenkins (former lecturer at Lincoln University).

Whangarei:  Monday, 16th February
Hamilton: Tuesday, 17th February
Palmerston North: Wednesday, 18th February
Blenheim: Thursday, 19th February
Gore: Tuesday, 24th February

Content:

• What is soil (Brief overview)
• Objectives of good organic soil management and how one can assess this
• Soil Assessment and Interpretation (Case studies)
• Ways of achieving key objectives (From the assessment above establish the actions required)
• Production systems and their soil management (Participants establish what’s important for their particular production area
• Certification Standards and soil management (what to do and what not to do)

  Bring soil and herbage test results from your own property if possible.

  Cost: $30. Free for ODPG, OVMF and Wairarapa Organics members

For Whangarei, Hamilton and Palmerston North events, please register will Jill Greathead at jill@wairarapaorganics.org.nz  or 06 379 6717 stating which location you wish to attend.

For Blenheim and Gore events, please register with Rebecca Reider at organicrebecca@xtra.co.nz  or 03 525 611 stating which location you wish to attend.

Diary these dates

February 26, 2009. Workshop:  ‘Soil, Water & Carbon for Every Farm - Building Soils, Harvesting Rainwater, Storing Carbon’. Mangarara Station, Elsthorpe, Central Hawke’s Bay (farm of Greg & Rachel Hart www.thefamilyfarm.net.nz).

With Darren J. Doherty of Bendigo, Australia, an International Farm Planner, Developer & Educator, who will pull together a range of practical, cost-effective & no-nonsense key insights from his work across the globe to help local producers address some of the challenges facing them: such as: Lower Rainfall, Reduced Production, Higher Production Costs & Declining Terms of Trade.

More information: Marion Thomson, 06 870 4942 or marion@shbt.org.nz

March 4, 2009. Bay Of Plenty Young Fruitgrower of the Year Competition. Baypark Speedway, Mount Maunganui. Application forms from Jim Smith jim.smith@satara.co.nz  or phone 027 242 7436.

Applicants must be 30 years of age or under on 31 December 2009; be working full time in the fruit sector in the Bay of Plenty and show evidence of completing 3 years practical work experience in the fruit sector. Entries close at 4pm on Friday 20 February.

March 19, 2009. Organic Expo 2009, Matamata. The 2009 Organic Expo will be held on an organic farm at Matamata (exact location to be confirmed). Exhibitors will be from the full cross section of input supply and service/process industries that provide the tools of biological/ organic agriculture. Sites $250. More information: Bill Quinn, Organic Promotions, info@organicag.co.nz. 
Organics News Roundup

A selection of recent stories on organics from news media in New Zealand and around the world.

Organic farmers not willing to forgo health
Stock & Land (Australia) 30/01/2009

Interviews conducted by Biological Farmers of Australia (BFA) to help discover why producers ‘go organic’ reveal a high number of farmers make the change for their health and that of their families.
Rob Bauer (Bauers Organic Farm, Qld), one of Australia’s largest organic horticultural growers, says he turned to organic farming 27 ago after farmers in his area became ill with cancer.

He says he wanted to decrease health risks associated with synthetic farm chemicals.

“I started thinking about farming differently after growing up in the Lockyer Valley (Qld) where friends and family passed away in their fifties after years of intensive agrichemical production,” he says.

He says neurological problems, tumours, and cancer were among the chronic diseases he watched take their toll on his local farming community.

“I wasn’t comfortable with producing food using harsh farm chemicals for consumers,” he says.

Steve Skopilianos, commercial lettuce producer from Ladybird Organics in Keilor (Vic) looked into organics when he started a family.

“We had been applying pesticide blends with no understanding of their effect on people and employees,” he says.

“There were times prior to organic conversion where I would not take my own produce home for my family to eat.” More… http://sl.farmonline.com.au/news/nationalrural/niche/general/organic-farmers-not-willing-to-forgo-health/1419353.aspx

The individual comments and views in this newsletter do not necessarily represent the view of OANZ.