Prism Webcast News

NZ organic sector growing faster than expected

Monday, July 27, 2009
Posted in Organics | Tagged Organics

This weekend the OANZ team is in Melbourne, attending Oceania’s largest organic expo. It’s an opportunity to catch up on developments in the organic sector across the Tasman, and to meet with our counterparts from around the world.

Travelling makes it very apparent that the world looks to New Zealand as a leader in global agriculture, and that our farmers are seen as being at the forefront of world food and fibre production.

With policy responses to climate change under discussion in both countries, it is also a reminder how critical it is that New Zealand gets its primary sector policies right. Australia’s position shows the vulnerability of developed countries to shifting climatic patterns, with organics becoming recognised as an opportunity to maintain farm productivity in the face of disease, drought or floods.

Our national responses to environmental issues, as well as the challenges of food security, need to be based on organic principles, particularly the importance of seeing things in a systemic way. It is especially critical that New Zealand thinks and acts in this manner because the impacts of our actions are not just felt in our own economy or society. Our leadership position means that the repercussions of developments in New Zealand are truly global.

One of the important messages being reinforced here in Melbourne is that OANZ’s member organisations are at the forefront of an international movement towards ethical, resilient, residue-free farming. New Zealand’s position as a global leader in food production means that the eyes of the world are on us.

But real leadership requires more than maintaining a status quo. New Zealand’s organic sector needs continuing investments in research and development, to ensure that innovative new ideas keep us at the forefront. We also need more much more effort in the dissemination of ‘best practice’ methods that ensure organic farmers can keep moving forward.

Cognisant of our leadership role, I am convinced that OANZ needs to re-double its efforts to make sure that primary sector policies specifically support organic advancement.

NZ organic sector growing faster than expected

Growth in New Zealand organics puts the country well on track to achieve the Organic Sector Strategy’s target of $1 billion in sales by 2013.

OANZ Chairman Derek Broadmore says the latest market research report on the organic sector, due to be released in November, is expected to show New Zealand’s domestic and export markets for organic products valued at $500 million - well ahead of the Organic Sector Strategy’s projections.

When it was released four years ago, the Strategy’s $1 billion target was seen as ambitious, given that the organic sector was then worth around $140 million. But in just four years, the sector has more than trebled.

Mr Broadmore notes that growth has coincided with the first three years of OANZ and the Organic Advisory Programme.

He stresses the international market for organic food and beverages (and increasingly textiles) is potentially huge. As a trader in primary produce, the opportunities for New Zealand are enormous.

Mr Broadmore says that during the last three years, OANZ has been successful in getting organics onto the policy agenda in New Zealand. He notes that OANZ is now the “first point of call” for conventional sector groups such as Horticulture NZ, Meat and Wool NZ, Zespri and Pipfruit NZ, as well as the public sector and politicians, when issues arise around market access, technical requirements or policy matters relating to organics.

Mr Broadmore adds, “We now have a place at the Minister of Agriculture’s Primary Industries Forum with the major primary sector organisations, where we are able to make the case for organics.”

He says the major issue now facing OANZ is ongoing funding. Although OANZ received new funding through the Ministry of Economic Development last year, the contract states that OANZ must be self funding by the end of the contract period in June 2012.

Mr Broadmore says that with a relatively small number of organic producers, most of whom already pay levies to a sector body, the possibility of funding OANZ entirely from within the sector is not realistic.

He hopes the Government will agree to allow part of the existing commodity levies to be redirected to OANZ, but says that will require legislative change which would be likely to raise strenuous opposition from the existing levy bodies.

Mr Broadmore says he hopes the rapid growth of the organic sector, and the advantages it brings to New Zealand in terms of environmental benefits and trade opportunities, will ultimately ensure that funding is found.

Speaking to a seminar of wine growers in Marlborough last weekend, Mr Broadmore noted that eight of the 10 of the top pinot noir wines in the world are now organic or biodynamic. He predicts certified organic wine from New Zealand “will be up there with the best” at the top end of world markets.

The Marlborough seminar was attended by more than 200 growers, with more than 50 attending an organic certification workshop the next day - another indication that the organic sector is likely to continue growing towards its billion-dollar target.

Organic sector maintains opposition to mandatory folic acid

The Government’s announcement that it would not require the mandatory fortification of bread with folic acid has met with approval from Organics Aotearoa New Zealand - despite organic bread having already secured an exemption from the original fortification requirement.

OANZ re-released a submission it made to the Government in 2006, outlining its opposition to folic acid being mandatory in bread.

OANZ chairman Derek Broadmore says education about food and nutrition would be a better option than mandatory fortification for reducing the harm of folic acid deficiency.

“Consumers want fewer additives in their food and more information about how it is made, not mass medication with potentially harmful substances, ” Mr Broadmore says.

“Mandatory fortification also sends the wrong message, suggesting that supplements can overcome the need to eat nutritious, wholesome meals.”

He adds, while OANZ is pleased consumers can avoid mandatory fortification by purchasing organic bread, there are better ways of reducing the risks of folate deficiency.

Mr Broadmore says in the long term, education - not mandatory Government powers - would be the best way to influence people to change their diets.

OANZ also opposed the mandatory fortification of bread with iodine - where organic bread is again exempted from rules due to come into effect by the end of September.

Organic attitudes to GE under microscope by Massey student

A Massey University masters student is seeking feedback from certified organic farmers and orchardists on their opinions about genetic engineering and organic agriculture.

Electra Kalaugher has launched an online survey as part of her research project, which aims to examine whether there have been changes in the perception of genetic engineering in the organic sector, compared with a similar study carried out 10 years ago.

More information about the study, and a link to the online survey form, can be found at http://www.oanz.org.nz/node/111

Student seeks organic farmers to help with research

An Auckland post-graduate student is seeking organic farmers in the Auckland region to help with a research project.

Mark Davidson, who is completing a Diploma in Business and Administration, majoring finance and farm management, is doing a project that requires him to study a farm with multiple product lines. He would like to study an organic farm, to add an extra dimension to the project. Mr Davidson can be contacted at markdavidson@xtra.co.nz.

New carbon offset system targets organics

An environmental company is targeting organic farmers, asking them to purchase “Biocapcity Bonds” to help offset carbon footprints. Reciprocate Biocapacity Ltd, established in May 2008, is involved in projects that focus on planting trees, with soil carbon increases also taken into account.

Spokesman Helle Janssen believes organic farmers, because of their philosophy of being “ecosystem guardians”, could have a key role in the scheme.

Each Biocapacity Bond costs $200, which establishes 20 trees to sequester 10 tonnes of CO2 equivalents in both soil and plants. This is enough to offset carbon emissions associated with the lifestyle of an average New Zealand consumer for six months, or a long haul economy class flight to Europe.

More information about Biocapacity Bonds can be found at www.lifecapacity.org. 

Diary these dates

July 26, 2009. Canterbury Organics and CCOG mid-winter event. Biological Husbandry Unit, Lincoln. Topics: Preservation & restoration of Waiwera (Lake Forsyth) - Robin Wybrow. Organic farming in Ireland - Charles Merfield. Contact Gilda at Canterbury Organic corganic@organics.org.nz, phone 3251344, or Mary Ralston mary.ralston@xtra.co.nz,
phone 03 302 9202.

August 6-9, 2009. Terraquaculture Training. Four day Short Course - Introducing Asia-Pacific Terraquaculture, with Prof Haikai Tane and Brendan Hoare. At Aio Wira Centre, Waitakere City.

Cost: Early bird $1450 till 19 June. Full fee $1550 from 20 June. More information: Sheryl Lam,
sherylam@kinect.co.nz or phone 03 435 0366.

October 20-22, 2009. Orchard & Arable Sustainable Nutrient Management Course. Massey University. More information: Lance Currie, L.D.Currie@massey.ac.nz

November 13-15, 2009. Second National Organic Conference (organised by OANZ). University of Waikato. Theme: “Innovate: Go Organic!” The conference will focus on innovative ways to produce, market, and use organic products.
Registration and more information: www.goorganic.org.nz.
Organics News Roundup

Premium consumers still drawn to natural, organic foods
FoodNavigator-USA.com  15/07/2009

Wealthy consumers who have taken a hit in the recession are more likely to buy natural, organic and ethical foods than those who have been unaffected, claims a new report on psychographic responses to financial setback.

Changing financial circumstances tend to cause consumers to reassess their spending, and those whose budgets have shrunk are often perceived to trade down to cheaper or better value food products. But according to the latest report from Packaged Facts, this does not hold true for upscale-to-affluent consumers earning more than $75000 a year as individuals ($100,000 households). When struck by financial mishap these people are more likely to buy foods that cost a premium - such as natural and organic - and be sensitised to ethical issues, according to the market researcher.

Such a conclusion is significant because it indicates that the natural, organic and ethical trends may withstand the recession despite costing consumers more. This means that product development need not be all about value and low cost; premium eating has become not only a matter of habit, but also a die-hard principle for many. More … http://www.foodnavigator-usa.com/Financial-Industry/Premium-consumers-still-drawn-to-natural-organic-foods

UK bank slices rates for organic cereal conversion
Farmers Weekly (UK) 09/07/2009

A new bank lending initiative has been launched to help farmers overcome the costs associated with converting to organic cereal production.

Triodos bank, which specialises in “ethical lending”, has set aside £5m, which it will lend at 1% over the Bank of England base rate (currently 0.5%) to conventional cereal farmers converting to organic production. Each farmer can borrow up to £500,000 at the preferential rate, but may be able to borrow more at normal market rates.

If successful, Triodos said the initiative would support an extra 10,000 acres of new organic cereal production, equivalent to 10% of the UK’s total. It also estimated farmers would save £160,000 over three years, compared with normal market rates. More …http://www.fwi.co.uk/Articles/2009/07/09/116550/bank-slices-rates-for-organic-cereal-conversion.html

Organic dairy farmers rally in protest
Hobbyfarms.com 17/07/2009
 
A glut of organic milk, fueled by giant factory farms, threatens to wash family farmers off their land. Farmers and their advocates participated in an emergency rally July 16 in an effort to demonstrate their plight to USDA Secretary Tom Vilsack.

Under the Bush administration, the USDA was accused of “looking the other way” as large corporate agribusinesses invested in organics while allegedly violating federal standards.

In the dairy sector, there are now estimated to be 20 large industrial dairies, each milking thousands of cows, producing as much as 40 percent of the nation’s organic milk supply.

“With the slowdown in the economy, the market is no longer able to absorb the growing supply of organic milk,” stated Mark Kastel, senior farm policy analyst with The Cornucopia Institute. “Processors have now cut the price of milk for farmers, and imposed production caps. Many family farmers are now in danger of losing their farms.” More … http://www.hobbyfarms.com/farm-industry-news/2009/07/16/organic-dairy-farmers.aspx

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